At the Global Infrastructure Facility (GIF) Advisory Council Meeting in March, we talked about construction risk and the way it shapes the delivery environment early in a project’s investment life. As a practicing engineer accustomed to attacking construction risk at the granular level, I enjoyed the broader discussion, particularly from the banking and credit perspective (meeting outcomes).
Unfortunately, construction risk realization will continue to be the norm. Perhaps we need to consider taking the longer view to reach potential investors by aligning the risk environment with risk tolerance.
Here are three ways to do this:
From my seat as an Education economist at the World Bank, I go through a number of strategies from countries and sectors in Africa outlining how best to achieve economic growth and development. I am repeatedly struck by a key question: Who will do it? Who will add value to African exports? Who will build? Who will invent? Who will cure? The answer is, of course, that graduates from African universities and training institutions should do it. But the problem is one of numbers and quality—there are simply not enough graduates in science, technology, engineering and math (STEM), and programs are of uneven quality.
The SMS message was “Drainage is not being done properly in the village Achajur. Please fix.” While it was disturbing to hear that there were problems in one of the projects I was responsible for, at the same time I was very encouraged since this proved the value of an SMS-based system we developed to facilitate local residents advising on social, environmental or engineering issues on our project.
With its massive talent-base, a unique ability to attract its best and brightest students to the engineering discipline, and the presence of some of the world’s leading companies, India has an enormous potential to modernize its economy through engineering education and technology.
However, I think the potential is not fully exploited. The majority of new engineers in India are superb at rote memorization useful to pass paper exams. Many students, however, are less skilled at solving real-life problems with creativity. Also they lack communication and team skills in order to succeed in a demanding international setting.