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Public Sector and Governance

Re-thinking Macroeconomic Theory and Policy

Raj Nallari's picture

If you think the US financial system is broken, then you don’t know how much more broken the macroeconomic theory is. The traditional Keynesian model of ‘depression economics’ where increasing government spending could stimulate the economy was misused by governments, particularly in developing countries, for decades during the 1950s to the 1980s.

Involving Afghans for Success

Nancy Dupree's picture

Current rehabilitation and development rhetoric calls for listening to the Afghans and giving them the lead. Sadly, actions too often defy these wise words. The challenge is to make way for genuine in depth Afghan involvement at a time when the problems inherent in a lackluster government beset with corruption are so complex, and, particularly, when the aid-dispensing agencies so often disregard coordination and cooperation.

Politics within the prevailing environment of conflict imposes a sense of great urgency, no doubt, but many basic development principles are being set aside when they are most needed. Plans that rest on massive projects designed by outsiders lavishing too much money and demanding instant implementation are bound to be ineffective. Quick fixes never have worked. Throwing around money indiscriminately just compounds problems and raises new dilemmas. Sustained development, as has been established for decades, requires patient on the ground interactions over time.

Water and Poor People: No More Charity

Tom Grubisich's picture

When Ned Breslin, CEO for the international social company Water for People, talks, the effect can be like a splash of cold water on your face.  Development-speak is not his style.

Take this snippet from his new "Rethinking Hydro-Philanthropy" essay:

 

 

"Success will require less single-minded focus on the absolute number of people without access to water and sanitation facilities and more focus on the serious questions around long-term impact and sustainability. So that years after the cameras have left, the donor reports have been filed, and the press release circulated, the community is not forgotten."

"Sweat equity" from needy communities is not enough, Breslin argues.  "Up-front community contributions," he says, are essential to making new water -- and sanitation -- facilities sustainable.

Water for People won a US$200,000 Development Markektplace 2007 award for water facilities in Malawi, which Breslin, in this radio interview, says "has some of the worst water and sanitation problems in Africa."

Breslin's credo -- that water and sanitation in poor countries should not be viewed as a charity mission -- is being validated elsewhere.

Connecting Sri Lankans to Prosperity

Eliana Cardoso's picture

The presidential election in Sri Lanka this January resulted in an easy win for the incumbent Mahinda Rajapakse. The end of the long lasting civil conflict with Tamil separatists, strong remittances and an IMF agreement boosted investors’ confidence. Foreign exchange reserves recovered from about one month of imports in the first half of 2009 to six months of imports by January 2010.

Now that the war is over and the global economy recovering, the government needs to grasp the opportunity to do the right things and avoid hurting confidence in the country’s stability, which is key to the rise in foreign investment and tourism.

The bad news is that the withdrawal of GSP Plus by the European Union countries can hurt industrial exports. The EU decision is worrisome. Thanks to the increase in manufacture exports from 6 percent of total exports in 1975 to 60 percent in 2005, firms began to lead Sri Lanka‘s connectivity with the rest of the world.

'Hot Spots,' 'Bright Spots,' and Hidden Strengths in Capacity

Tom Grubisich's picture

There is a laser-like focus on the capacity of developing countries to respond effectively to the steep challenges of their Millennium Development Goals and

Ethiopian farmer, with his children, shows newly irrigated crop to extension agent.

destructive climate change.  Capacity gaps are relentlessly pinpointed.  Sometimes national governments themselves provide the toughest evaluations, like this one from Bangladesh's Ministry of Environment and Forest on the country's climate adaptation action program:

"...institutional capacity including human resource quality [is] weak and poor and needs substantial improvement if the challenges of climate change are to be faced squarely....A lack of awareness, both of the potential gravity and the extent of the problem as well as possible actions that could be taken, is the foremost [barrier]. This lack of awareness exists at all levels from national level policy makers to sectoral and local level officials as well as amongst civil society and the most vulnerable communities themselves...."

There are, to be sure, capacity gaps in Bangladesh and other developing countries, and identifying what and where they are is the first step in closing them.  But there are also "bright spots" and, perhaps more important, underlying strengths, especially at the local level across all developing countries that can be masked by the emphasis on gaps.

Lebanon: Open for Business

James Bond's picture

Lebanon is a country of expatriates.  Nine million of its 11 million inhabitants live abroad, in places as diverse as Terra del Fuego, Côte d’Ivoire, and Columbus, Ohio. The Lebanese Diaspora remains profoundly committed to its mother country, remitting money to family back home, investing, and visiting as tourists. 

Public sector reform—changing behavior with cars and computers?

Anand Rajaram's picture

During a discussion on public service management reform (PSM) in Zambia, a senior official with strong experience in this field, explained: “in order to implement PSM, I had been asked to provide cars to reforms teams, we did it; then, we were asked to provide computers, we did that too; then, we were asked to provide them formal training overseas, we did that as well; they came back and what happened?... Nothing! There was no greater capacity to reform despite these investments. Why is it so? Because reforming public sector requires a change in behavior and mindsets of people; cars, computers and formal training do not help in most cases”.  

Powering up Africa

Rebecca Post's picture

Breaking news! The OrPower4 Project has been awarded:
African Renewables Deal of the Year 2009 from Project Finance Magazine.

After a long journey to Nairobi, in the midst of a much-needed shower, the room went black. Fortunately the lights came on a few seconds later. My good fortune was only due to the fact that the hotel’s generator kicked in – with its attendant high cost and environmental and safety hazards. 

I’m no stranger to the power outages that present themselves nearly every evening in this part of the world, but it’s one thing to experience a minor inconvenience, quite another for the business that is losing money due to power outages, the student who is losing out on opportunities because she can’t study at night, or the doctor trying to treat a victim of a late-night road accident. And these are the lucky ones. Only 15 percent of all Kenyans have any access to electricity.

A Global Capacity Map -- What If?

Tom Grubisich's picture

Countries are rated how effective they are in human development, governance, and doing business.  What if they were rated by their capacity to achieve success in all key areas of their national mission?

Ratings would measure progress in such mission "how-to's" as knowledge sharing, stakeholder participation (especially at the local level), and program results vs. objectives.

The U.N. Development Programme has singled out what it calls major successes in capacity development in 19 nations that included the Least Developed Countries of Laos, Rwanda, Solomon Islands, Timor-Leste, Sierra Leone, Bhutan, Nepal, Mozambique, and Afghanistan.  But there's no comprehensive capacity rating of all 49 LDCs, much less all 145 countries classified as developing.  Even the UNDP ratings of 19 countries are based only on selected initiatives in those countries.

Mapping capacity -- horizontally across countries all the way from the national to local levels -- would, no question, be a major undertaking.  But if public, private, and nonprofit development actors collaborated, especially by mobilizing advances in networking technology, the job would not seem to be insurmountable.  Perhaps it could begin with the LDCs and go forward from there.

Multi-layered, continually updated capacity maps could be an important new tool especially for the poorest countries and their development donors in closing stubborn gaps toward achievement of 2015 Millennium Development Goals.  The maps could also be a big help to all developing countries and donors in responding to locally diverse impacts of climate change.  And that's just for starters.

Social Entrepreneur -- With an Emphasis on 'Entrepreneur'

Tom Grubisich's picture

We're hearing more and more about the "social entrepreneur" as the development community looks for new ways to achieve better results, especially with many developing countries struggling to meet their 2015 Millennium Development Goals and at the same time cope with destructive climate change.

Ashoka, itself a pioneer in social entrepreneurship, has a pretty good definition:

"Social entrepreneurs are individuals with innovative solutions to society’s most pressing social problems. They are ambitious and persistent, tackling major social issues and offering new ideas for wide-scale change."

But maybe the definition should also emphasize a special breed of social entrepreneurs -- those who tackle major social issues by launching projects that seek to be profitable.

When Fast Company magazine in 2008 honored 45 nonprofit social entrepreneurs "who are changing the world," it also tipped its hat to 10 for-profit companies with social missions.

Trying to change the world with a project funded by development donors can be maddeningly frustrating.  Even with a successful pilot, a nonprofit company is likely to encounter repeated funding snags and gaps in its quest for sustainability and replication.

Joel Selanikio was a Marketplace 2003 winner with the innovative idea to collect health-care data with hand-held computers.   DataDyne, the company that pediatrician Selanikio and his partner, technologist Rose Donna, co-founded, is a not-for-profit limited liability corporation (LLC).  Its personal digital assistant -- EpiSurveyor -- was an immediate success in health care in Sub-Saharan Africa and other developing countries.  But Selanikio had to keep making the rounds of donors for each step of his growth.  He was the model of the "ambitious and persistent" social entrepreneur -- but: "I got tired wearing out the knees of my trousers" making successive proposals to development donors, he said in an interview.


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