The Role of Government in Economic Development

1. The Role of Government in Economic Development Yerevan, Armenia November 2007 Dr. Michael J. Baranick baranickm@ndu.edu

2. Agenda The Four Sector Model Key Thematic Issues What is Governance The Role of Government Building the Plan Conclusion

3. Workshop Goal Bridging the Development Gap: Sustainable Growth in Information and Communication Technologies and Hi-tech through Education

4. Factors for Success Human capital Ability to resist catering to vested interests Political consensus and social cohesion

5. What Hinders Development Poor Governance Land Lock Nothing to Export Poor Infrastructure Regional Conflicts

6. The Four Sector Model

7. What is Governance? The World Bank defines governance as “the exercise of authority through formal and informal traditions and institutions for the common good”. UNDP defines governance as“the exercise of political, economic and administrative authority to manage a nation’s affairs”.

8. Elements of Good Governance Accountability Participation Predictability Transparency Openness

9. Role(s) of government Capacity Building Awareness Raising Regulatory Align Development objectives Needs Assessments Coordination Sectoral Policies Partnerships Infrastructures Mobilize CSO

10. Infrastructures Partnerships Align Development objectives Coordination Needs Assessments Capacity Building Regulatory instruments Mobilize CSO Sectoral Policies Awareness Raising Role(s) of government - considerations Is it feasible for Government to interfere in all areas at the same time? How should Governments prioritize itself? What are the basis for prioritization of ICT interventions? What are the unpredictable factors? Who should be the key players in its actions? What role do IO and RO have in the process?

11. Governments Role Funds research and development Builds technology capacity Facilitates the creation of partnerships Assists industry, academia & local governments

12. Barriers and Risks • Barriers • Institutional weaknesses or voids • Frozen mindsets • Inadequate Human Capital • Discouraging public awareness • Lack of contents/information • Daunting financial sectors • Absence of ‘Champion’ Risks Wrong institutional intervention Overloaded information Lacking strategy Resource constraint Wrong or outdated content & info. Could be horribly sluggish Wrong ‘champion’ Government needs to address them all

13. Framework Regulations & Policies Content & Applications competitive National Capacity Information Infrastructure Business & Markets monopolistic

14. Basic framework – interrelationship

15. Simple Model

16. Guiding Principles Clearinghouse for programs Recognize the diversity Be flexible Balance programs across a range of needs Involve NGOs in policy making Set high standards and impose accountability Require matching resources

17. The Plan Must Address Where are we now? Where do we want to be? How will we get there? Who must do what? How are we doing?

18. Building a Strategic “Road Map” Where do you want to go? Establish strategic destination (vision) Aspirations for your country and region? External opportunities and threats? How are you positioned Rigorous self-assessment: Strengths? Weaknesses? Inhibiting factors? What will it take to get there?

19. Planning Concepts ConceptAddresses Vision…………leaders’ concept of success Mission………………………5 Ws Goals and Objectives……….expected results Strategy…………………how we get there Assessment…………...planning agenda

20. Economic Development Goods & Services Governance Security Rule of Law What Currently Exist

21. Economic Development Goods & Services Governance Security Rule of Law The Future

22. Key Thematic Issues Laws, Regulations, and Policies Capital Resources and partners Institutions Security