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PIA 2501

PIA 2501. Development Policy and Management WEEK FIVE. Discussion. 1983-2012 Special Focus. Structural Adjustment with or without a “Human Face” VIDEO Protests: Do they make sense?. Structural Adjustment Policies 1985-2001. The Structural Adjustment Argument- Need to

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PIA 2501

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  1. PIA 2501 Development Policy and Management WEEK FIVE

  2. Discussion

  3. 1983-2012 Special Focus • Structural Adjustment with or without a “Human Face” • VIDEO • Protests: Do they make sense?

  4. Structural Adjustment Policies1985-2001 The Structural Adjustment Argument- Need to stabilize currency and markets (getting the prices right) Promote Free Trade Need to refocus role of state from development to law and order and deregulation Address the problem of Debt and Structural Adjustment reforms (IMF and World Bank)

  5. Currency Exchange

  6. Structural Adjustment, Cont. • Reduce the size of the public sector (infamous 19% cut) • Promote Privatization or “NGOism”—Negative on the State • Privatization (Rambo vs. Effete) • Faith in Capitalist Entrepreneurialism • Neo-Orthodoxy had a purist element: “Rambo Privatization”

  7. Structural Adjustment Policies1985-2001- Redeux Failure of the Developmental State: Goran Hyden Linked to “pre-scientific modes of production of peasants”—Economy of Affection Failure of State and “Exit Option” (See work of Albert O. Hirschman) and Barter Problem of Endemic Patronage and Corruption

  8. Economy of Affection- Barter

  9. Structural Adjustment Policies1985-2012 The Argument for “NGOism” Left wing Privatization (Private Voluntary Organizations, Cooperatives, Community Based Organizations, Non-Profits) Energy of NGOs Structural Adjustment Public Sector Reform—Reduce size and restructure state Populist

  10. End of development model assumption • Orthodoxy: Overseas capital investment • Accepts Foreign or "Pariah" group ownership and control of trade and commerce • A New Reality: Local soft political institutions, weak private sectors

  11. Lebanese Fleeing Violence in Sierra Leone, 1997

  12. Private Sector Weakness • Reminder: The Problem with Pariah Groups • Limited to settler, pariah groups—Jews and Roma in Eastern Europe, Chinese in much of Asia, Lebanese and East Indians in parts of Africa and Latin America (See Books of V.S. Naipaul)

  13. Idi Amin Expels Uganda Asians

  14. A Critical View….

  15. Change: the Neo-Orthodoxy • The Realities: To End of 1980s- Focus on anti-Marxist, growth regimes • Korea, Taiwan, Brazil, Chile, South Africa (newly emerging States) • Politics not important

  16. Neo-Orthodoxy • No development management- development programs are “bad” • Can’t make planning better • Neo-Orthodoxy and privatization

  17. University of Chicago School

  18. To what extent is the state planning approach possible? • Bureaucratic, administrative and political constraints constitute a major limitation • Development strategies often parallel but ignore political realities • “Looking for a Rule to Follow”

  19. Neo-Orthodoxy View of Development Management • Five year plans of over 1500 pages for a country of less than a million people • Part of unfulfilled rhetoric of development • National Planning to be replaced by local and regional planning (and Projects

  20. The Failure of Planning

  21. Failures of Development Planning • A Problem: The limits on political compromise and local level autonomy • Failure of Development and the limits of the econometric model • Failure of planning blamed on weak planning and administrative capacity • Planning was a “shopping list”

  22. Counter-Neo-Orthodoxy Argument Bureaucracies are socio-economic actors Good example: Land reform and bureaucracies A study of 25 major land reforms--in 15 cases the bureaucracy was major beneficiary in the process

  23. Internal Capacity IssuesReminder Debates: the “Attitudes Problem” and the Public Sector • Myth of civil service neutrality: Bureaucratic elites have interests “Statism” • At best what results is benign neglect, at worst resource extraction • Problem: failure to develop and indigenous capitalism

  24. Problem: The Expanding Burden of the Civil Service- A Reminder • Civil Servant Component of the total Current Budget • 10 to 15% in MDCs • 30 to 60% in LDCs • South Africa in 2001, 46% • Benin in the 1980s, 64% • Central African Republic in the 1960s, 81%

  25. Summary: Development Management in 2000 Concern about incapacity: Questions raised about efficacy of state approach Critics spoke of negative state Government had become a negative Debates focused on privatization, public sector reform and NGOism Need to address issues of external vs. internal solutions to development problems (domestic capacity vs. international redistribution)

  26. Summary: Development Management in 2000 Focus should be on issues of sustainability and institutional development- not projects Need to search for a creative, flexible, and innovative management system Difficult to separate development from politics Implementation had become the neglected component of development policy (Pressman and Wildavsky) Question: The appropriateness of the U.S. case study as lessons for development action?

  27. Choices: • Contracting Out and Privatization • NGOism and Grants • Capacity Building (HRD) • A Mixed Scanning Approach • IMPLEMENTATION VIDEO

  28. TEN MINUTE BREAK

  29. PICARD “Unpaid Editorial”

  30. The Problem (1): Bad Planning and Foreign Aid 1. Bureaucrats/practitioners ignored development theories & ideas 2. LDC Development Institutes were largely irrelevant as training centers--donors used overseas training 3. International Organizations (UNDP, IMF and World Bank) promoted Programs that were unworkable.

  31. The Foreign Aid Meeting

  32. The Problem (2) • Development administration did little to deal with issues of population control, food production and rural development • Foreign aid was seen as little more than a front for foreign policy • Issues of Health and Education

  33. Anti-Planning: Neo-Orthodoxy: The Problem (3) • Planning illustrates problem of soft-state and inability of state to impose its will on society- • Planning Part of the Problem • But the Problems are real

  34. Land Reform and Women’s Rights Real Issues that Need Addressing

  35. Internal Capacity Issues Debates: the “Attitudes Problem” • Indigenous Elites- Sometimes referred to as “Comprador” classes or “dependent elites,” since they have been co-opted and are linked to Northern Tier states- Cronyism

  36. But…. • Donors Need Planning Skills (Still) • “National Program Support Office, Afghanistan” (October, 2005) • Project Management Unit (PMU)

  37. Autonomous Work Packaging Model

  38. Planning Became Project Planning “End of Editorial”

  39. The Middle View • The Moderate Interpretation of Development Administration Failures • Goal: Realistic Decision-Making based on sufficient knowledge (strategic planning) “Mixed Scanning” • Balance Public-Private Partnerships

  40. Internal Capacity Issues(Bryant & White) • Debates: the Bureaucratic “Attitudes Problem” continued • How developmental are bureaucrats? • Can the state be used for SOCIAL ENGINEERING? • Is the private or non-profit sector better at development?

  41. Social Mobilization Training

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