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Date: 2019-09-16 Page is: DBtxt001.php bk010190000

Burgess Manuscripts
New Wave for Development
Some Critical Reforms to Catalyze Socio-Economic Progress

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Why would anyone want to write a book about development? There are already a lot of books about development. Do we need another one? Is this book any different? Does it add anything new?

Why on earth this book?

From emergency to development Analysis of the development process suggests there must be a very strong commitment to ending emergency interventions and putting the available resources to work in a development mode to build economic growth. In an emergency intervention, the assumption is that the beneficiaries have no economic security, and must rely totally on the provision of emergency goods and services. Sustainable economic growth will not result in an end to the “need” for emergency assistance as long as there is the possibility of emergency assistance. Income generation and employment The foundation for economic security is a solid base of income generating activities and employment. Almost all the initiatives proposed for the sustainable development of the area and the reintegration of refugees, returnees and displaced persons are based on the concept that the economic base must be strengthened. To this end, the various proposals for upgrading of physical infrastructure are seen not only as long term investments for the improvement of the economy, but also as critical short term stimulus to employment in the economy. Vulnerable groups Vulnerable groups make up a special case. Many people in this group have lost the community links that would have helped them in more ordinary times. This is a problem that must be solved in a manner that is compatible with the social structure and community structure. Money and assistance may continue to be given to this group during a transition period, but must be taken over by a community based initiative within a limited time frame. Funding for the community initiative should be systematically transferred from official international aid to becoming a local responsibility together with other forms of aid and charity. Enabling Environment Iraq has potential to be a good business environment The private sector needs to be the driving force behind success of the Iraq economy and peace. This is probably a widely held belief in the business community in Iraq. Though the oil industry is big in Iraq, and generates huge fund flows for the country and the government, the climate for business investment is not good because of the government's instability and widespread insecurity. The legal structure and the rules and regulations could be improved, and the rule of law is subject to a constitution that is a long way from being finalized. Foreign business people want clear and favorable rules and regulations, and want to be sure about the way they are enforced. And even though the law, policies, rules and regulations may be written to encourage trade and investment, it is also important that the operating systems and processes at the bureaucratic level also function to encourage trade and investment. Trade and investment promotion for the area should be initiated in neighboring countries as well as in other key centers around the world. Improve infrastructure and services Sustained expansion of trade and investment requires that telephone, fax and Internet communications are improved. They need to be efficient and available at internationally acceptable prices. In addition the transport services need to be efficient both in terms of frequency, reliability and cost. Logistics today has become one of the most important components of competitive advantage.

The Centrality of Infrastructure

Enormous catch up is needed to get infrastructure in the “south” up to an acceptable basic level of performance. There needs to be investment not only to build new needed infrastructure, but also to catch up on maintenance. There are many facets to infrastructure including (1) Roads; (2) Railroads; (3) Seaports; (4) Airports; (5) Housing; (6) Water; (6) Sewage and sanitation; (8) Hotels and restaurants; (9) Tourism destinations; (10) Public buildings; (11) Schools; (12) Health facilities; (13) Telephone and Internet; and, (14) Electricity. The investment needed to upgrade infrastructure to “north” standards is not sustainable in the “south”. There needs to be incremental upgrading so that constraints caused by infrastructure are reduced. As economic performance improves, more upgrading becomes possible. Construction Strategy Most of the construction associated with infrastructure ought to be done by local construction enterprises ... and the planning of infrastructure initiatives should be based on the idea of creating the most value adding in the community as the infrastructure is built, and as much longer term benefit for the community when it is in use. The aim should also be to build infrastructure using the minimum of external resources, and the maximum of the resources that are available in the community. Building infrastructure in the “south” should not be a totally uncontrolled profit bonanza for multinational construction corporations, with additional debt the only certainty from the projects. Large scale modern infrastructure is expensive, and it is only in rich countries that the economy can justify making these very expensive investments. High cost infrastructure in a low productivity economy is a formula for financial crisis. Infrastructure investment to upgrade needs to be done in an incremental fashion. This can be done working from the community level. When infrastructure is looked at from a community perspective, what is the most important to the community can easily be identified, and there can be an investment focus on what gets the best results for the community. This has the potential to increase the socio-economic return from infrastructure investment from something that will not justify investment to something that is gives an attractive socioeconomic investment yield. Housing Urban housing Much of the housing stock in Baghdad and some other urban areas of Iraq has been badly damaged in the past few years. There has been damage and complete destruction in some cases and there has been damage caused by looters. Many houses have been rebuilt using private financial resources and funding from the US programs, but a lot still remains to be done. Capacity to build houses There is a good construction capacity in Iraq which can grow to build more houses. It is constrained by the economic conditions, the lack of security and the state of the housing sector overall. House construction is employment House construction is employment as well as being a valuable addition to the community. New housing and upgrade building can be used to contribute to total employment and to the reintegration of returnees into the economy. Strengthening the capacity to build houses Workmen to build houses to an improved standard need training in either a formal setting and while on the job working in a training capacity. Housing sector The housing sector has not kept pace with the growth in population, and the quality of shelter for many in the poor “south” is less than satisfactory. Urban slums are common, and rural shelter is poor reflecting the poor state of the local economy. The solution to housing should be one that involves both the private sector, government and the financial sector. With thoughtful planning, the housing sector can be a valuable component of economic activity and serve to upgrade the housing sector and the employment sector at the same time. Seaports and Airports Seaports There has been a productivity revolution in modern ports, with almost total containerization and using powerful materials handling equipment. Modern cargo vessels are highly automated requiring small crews, and their cost is remarkably low, but they can only use ports with modern equipment. There is no reason why Iraq ports should not be to a very high international standard. Iraq also must have terminals to handle its oil exports. These need to be world class, and there is no reason why they should not be. Airports Iraq needs to have a world class international airport, and there is no reason at all what it should not have one. The country also needs to have a network of local airports to facilitate local air service development. Though air transport is expensive relative to land, there are times when speed is a priority, and there should be the infrastructure to handle this. Roads Main roads … arterial roads The main roads are a major factor in national productivity. The road network is very important for trade. The roads should not constrain trade, but serve to help it. Roads are important for all sorts of product shipment including livestock shipments Community roads Every community I have visited has always made reference to the need for easier transport in the rainy season. All weather roads are valuable, but they need not be to European or US standards. They just need to be usable when it is raining, instead of totally stalling traffic. Construction and maintenance There are some major contractors with the capacity for major construction and major maintenance of roads. There needs to be a strategy to upgrade and maintain the whole system and not just a privileged little bit of the system. It would be best to make many small interventions rather than a few large interventions. The country needs to have balanced development all over the country, not just in a single area or corridor. The country needs employment opportunity everywhere, not only on a single axis of the country. Furthermore, the country’s internal capacity is better suited to doing small works successfully than single large projects. Employment The road sector has the potential to be a major employment source for the next several years. This can be done not only by using “labor intensive work methods” but merely by doing the work using local capacity to the maximum extent possible. Employment is needed not only at the laborer level but also among trained engineers and local contractors, some of whom have had important international experience. Telecom and Internet Telecom In general terms, the telecommunications infrastructure in the global “south” is poor. Iraq should embrace the idea of very low cost communications as a way to encourage development, but Iraq has not yet embraced the telecom sector in this way. Internet An Internet infrastructure can be built in coordination with the telecom ... the underlying Internet backbone uses much that in common. Water Importance of water Water is more important than anything else. When water is abundant, this is not obvious. But in places where there is very little rainfall, the importance of water becomes very evident. Without water, everything ends. With water, a lot is possible. Water is essential to human life, and is essential also to animal life and growing food crops. Water is also important since it is also a contributing cause of violence, injury and death. There is a lot at stake in the water sector. Knowledge about water Knowledge about water is spread about a lot of organizations and should be systematically consolidated into a complete database that can be accessed easily by people with a legitimate interest. The database should be operated by a national institution, private or public. The data should be available easily from a number of access points. The data should be accessible for technical planning, and is also a part of the knowledge needed to have informed community dialog about what priorities are needed. Competing demands for water Where there is limited water in the area, and several competing uses, there is the potential for conflict. People need water for drinking and personal hygiene. Animals need water for drinking. The rangeland fodder and agricultural crops need water to grow. The interrelationships among water, range, animals and humans, both nomadic groups and settled groups, rural and urban, etc. are complicated and not well understood. Sources of water Iraq does not have a lot of rainfall, but it is blessed with two major rivers that have been a source of water for thousands of years. The average rainfall numbers are not a good indication of the way the rainfall is experienced. Often when there is rain, it is torrential, and a lot of rain falls in a very short time. Nearby, there may be no rain at all. Quality of water The availability of water is the first issue, but after that there is an issue of quality. Much of the available water has high salinity. In many rural areas the water quality is low and often has high bacteria content, and by most standards is unfit for human or animal consumption. Water quality is one of the most important issue in the health condition of both humans and animals in Iraq. Community water sources and water storage Remote communities have several different ways of obtaining water: ● From the rivers, with water treated at water treatment facilities. ● Boreholes, which often must be very deep and still then with low production. They are expensive and steel linings do not last long in the corrosive conditions of the area, ● Shallow wells, which serve both people and animals in many communities, ● Birkas, a swimming pool like structure, usually about 3 m deep, 3 m wide and 20m long lined with concrete that is used to catch and store water, often owned by an entrepreneur who sells the water, ● Hafir Dams, a dug out area with earth dam structure on the downhill side used to catch runoff during the rains, and mainly used to water animals Urban water systems Urban water systems are essential for the health of any urban community. Not all of the main towns in Iraq have enough water available. The systems are not sufficient to satisfy the present need, and certainly do will not satisfy the demand of longer run economic growth. Urban water systems need to be upgraded in various urban centers in the area. There are shortages of water in some urban areas, and sanitation is not sufficient. There needs to be both study and expansion of the urban water capacity. Plans for water supply improvement Plans for water supply improvement need to be prepared based on what is best for the local community, and what uses the least of money and other resources. There are many contractors capable of doing work in the water sector. These contractors need to have the opportunity to gain more experience and improve their skills. Professional water engineers need to be encouraged to take a leadership role in the planning and management of water resources in the area. CHAPTER 15 SECTORS: AGRICULTURE, FISHERIES AND FOOD Crop Agriculture Important sector Crop agriculture is part of the productive sector, and of huge importance in the global scheme of things. Without food, there is no life. The revolution in agricultural productivity set the stage for the “north” to become wealthy a long time ago, and it is often overlooked that “north” agriculture remains amazingly productive. Under 5% of the “north” population is engaged in agriculture and there are embarrassingly large surpluses. In contrast poor “south” countries might well have 80% of the population engaged in rural agriculture and associated support activities, and the country is hungry because there is not enough food. This is all about productivity, and a terrible failure of the relief and development community. Irrigation Iraq does not have much rainfall, and irrigated agriculture is one way to improve agricultural productivity. There are many lessons to be learned from history. The human and social dimension have to be taken into consideration as well as technical considerations like managing salinity. Israel has demonstrated that irrigation can be used successfully to change the productivity of arid land. So also has South Africa and Namibia in Africa and California in the United States. Rainfed agriculture Rainfed agriculture is limited because of the very low and erratic precipitation in the area. Some drought tolerant crops are possible in some areas. The way in which the low and erratic precipitation problem has been solved in traditional agriculture has been in a very practical way. Periodic torrential rainfall in the watersheds of the various river systems produces flash floods that inundate large areas of very dry land. The water and nutrients associated with these flash floods create opportunities for crop agriculture, and very large areas can be seeded very quickly when these situations occur. If the crops mature, there can be large surpluses that then add to family and community level food security. A variety of crops Various fruits and vegetables can be grown in the area very successfully, but they do need an adequate supply of water. Very small plots have produced substantial amounts of tomatoes, onions, garlic, etc. but these plots compete for water with human and animal needs. There are many tree crops that could be successful in the Iraq conditions. These include various citrus fruits as well as date palms. Small farmers usually have some cattle that are the basis for dairy products, primarily milk. The exploitation of the market for milk has been growing and dairy is now an important part of the agro-pastoral revenue. When there is serious drought the settled agro-pastoral community is more at risk than the pure pastoralist who has the opportunity to move to a better location. There is an existing bee-keeping industry that provides the community with honey that is used in a lot of traditional area food. Water Water is the foundation of everything. The success of settled agriculture in the area depends more than anything else on water. There are many ways in which water can be provided to achieve success in the development of settled agriculture, but anything that is done must be acceptable to the community and be done on a way that serves the best interests of the community as the community sees it. Furthermore the development of water for one community group must not have a damaging impact on the way of life and economy of another group. Tractors Community groups can also make productive use of tractors. Some groups have found used tractors to buy at reasonable prices and have done so. Good used tractors would be a suitable subject for loan financing under the project development fund. Training and extension Training and extension is needed to add to the knowledge of the community about agricultural and development possibilities. Livestock and Range Management Important part of agriculture Livestock is an important part of agriculture in some parts of the country. Livestock are the source of revenue for the nomadic pastoral community and also represent family wealth, food security and economic security. The lifestyle of the nomadic pastoralist is very different from that in urban and even settled rural communities. Water is the most important factor in the success or failure of the pastoral livestock economy. The role of water in the economy is complex, and it is not just a simple matter of more water is better. The economy is quite productive in the sense that a very small amount of water generates a significant amount of economic value added, but it is a fragile economy and a very high risk economy. Animal health is very important to the pastoral community. Rangeland management There has been little impact on rangeland through management initiatives, though rangeland management could increase the productivity of the range and its carrying capacity. Livestock markets Livestock markets at the producer level are not as fair as they should be, with middlemen traders taking advantage of the producer to the maximum extent possible. This is an age old problem, and not easily solved by direct government or development intervention. Livestock health and veterinary medicine Livestock health is an important factor. Health services are needed, but they should be created subject to the discipline of market economics and expansion of the service capability funded by the beneficiaries. Veterinary medicine has not been delivered effectively to the pastoral livestock community, though technically it has a lot to offer. To the extent that there has been veterinary extension and availability of veterinary drugs, there has been an improvement in animal health, but the use of the capabilities of modern veterinary science has been very small to date. Animal quality improvement There are many ways in which animal quality can be improved, but the time frame is not fast. Culling poor animals from the herd is a starting point, and doing selective breeding starts the process of improved animal quality. The process of implementing and animal quality improvement strategy can go as fast as the community wants it to, but the results are not immediate. Eventually, it is to be expected that some communities will reach the stage where their animals are bred using artificial insemination (AI), and as this stage is reached it can be expected that other aspects of rangeland management, animal health and livestock marketing will all have progresses as well. Fodder and feedlots Food security for animals is a serious development issue that can be addressed through commercial fodder production and storage. The loss of value as animals go to market can also be addressed through commercial feedlot operation. Marketing centers Livestock marketing centers should be encouraged. These centers should be of value to the livestock owner wanting to sell and to the commercial community as a whole. These centers need to be able to handle not only the water needs of the animals, but also the fodder requirement. They should have access to market information to assist in the operation of a fair and efficient market. They will naturally evolve into more comprehensive commercial centers with hotels, restaurants, shops and a full range of commercial services. To the extent that they are created at existing commercial centers, there will be substantial economic growth. Fisheries Fisheries not particularly important The fisheries sector has not been important in Iraq. There are some fishing operations in the Gulf, and there is some river fishery activity. Compared to the major fund flows from oil this is inconsequential, but in terms of communities that live in the riverine areas it is important. Fish resources Fish resources are becoming more and more problematic. There is overfishing almost everywhere and Iraq is likely to be in the same situation. Fish resources probably already constrain the fishery. Resource management Data concerning the fishing resources of the country should be collected and analyzed so that a sustainable management regime for the resources can be established. Almost every country in the world with fishing resources has exploited the resources beyond their sustainable yield and has experienced a decline in the value of the fishery product. Fish marketing and cold storage Fish needs to be fresh, or processed so as to be in a form acceptable to the market. A primary requirement is a lot of ice, and cold storage capacity. For a high volume fishery it may be desirable to have fish processing capability including filleting, etc. It should be noted that fish is one of the few products where the value is highest with the least amount of processing, with additional handling and processing reducing rather than adding value. Fish transport needs to be fast and efficient. Fish is high value, but also loses its value rapidly if there are any delays. The roads along the coast are totally insufficient for a successful fishing industry, and most refrigerated trucks are not going to last long traveling over the rough roads that are the norm in the area at the present time. Food Food Food is an essential, and should be easily available for everyone. The food sector is driven by markets ... with more or less intervention from government to encourage a sustainable supply of food. This translates into government subsidies and various incentives to produce more or produce less, and modalities that put food into the market at prices that are below cost. One of the purest examples of market is to be found in remote rural areas where food is exchanged in the market and reflects supply and demand in its most basic form. Food in Iraq Food production in Iraq should be highly productive ... there are the conditions for food production. Food supply should also be more than adequate because there is the financial capacity to import any food that is required. Food security is an important, and there should be no difficulty with this on a national level. An area focus for food security Some areas of Iraq may have local food shortages, and the local markets may be be sufficient to handle shortages that last for a long time. On balance, Iraq should be a food surplus producing area and can be an exporter of food. In spite of this, from time to time there are local food shortages. The area needs to have adequate capacity for food storage at the area and the community level. An area focus for livestock security Some areas of the country may need a mechanism to provide price stabilization for livestock. The normal cycle for livestock in the agro-pastoral context is for herds to increase in size when times are good, and then decline in difficult times. Good times produce over-grazing and accelerate the arrival and seriousness of bad times. At the same time, livestock prices follow a pattern that weakens the economy, just when it will do the most damage. A livestock price stabilization mechanism would make an immense difference to the economic performance of the sector, for the benefit of all. The price stabilization mechanism requires not only the funds to make purchasing interventions in the market, but a way for the product to be processed in a way that allows for the food value to be conserved for future use. Infrastructure Food security is enhanced if it is possible to move food stocks easily and at relatively low cost. Food security is also enhanced if it is possible to store food stocks with minimal loss in places where food stocks are needed, or likely to be needed. As part of the overall area proposals there will be significant improvement in the storage infrastructure. Food security is improved when there is an efficient transport system. Chapter 21 - Sectors: Industrial Production CHAPTER 16 - Sectors: Industrial Sector There is lots of it, but it is not much use. Much of the information that Energy: Oil and Gas Great possibilities ... huge challenges The energy sector has a capacity to be very profitable but the way the sector has been managed has given rise to something referred to as the “Energy Curse”. The way in which this energy wealth is managed will determine the future of Iraq more than anything else. Whether Iraq will be able to do this depends a lot on the manner in which both the economic sectors and the governance sectors evolve. It must be expected that everything to do with the oil and gas sector is going to be “hard ball” and that negotiators are going to have to work very hard to ensure that community interests are respected. Within different communities are going to have an interest not only in the outcome of international agreements regarding oil and gas, but also what sort of arrangements are made internally so that oil and gas benefits are fairly allocated to different groups. From an international perspective, the energy arena is not getting easier, but a lot more difficult. The oil and gas industry is not just big “western” companies, but also companies from Russia and China. In addition, companies from other countries like Venezuela, Mexico and India are going to change the energy sector landscape even more. Whether this will make the sector more beneficial to people at the “bottom of the pyramid” is not at all clear ... but there are interesting possibilities. There is an opportunity for wealthy oil and gas enterprises to embrace the moral high ground and start doing a lot more for communities in places where they operate. Though politics is often controlled by the gun, people power can have an enormous impact. Guns did not get the British out of India, but people power with Mohatma Ghandi in the vanguard. Martin Luther King did not catalyze progress in racial relation with the gun, but by mobilizing people peacefully. Energy: Electricity Electricity generation The electricity generating infrastructure is inadequate. Major upgrading is needed and there has been some work done on it since the end of the Saddam Hussein regime, but it is not at all clear how much work has been done and at what cost. This is essential management information that should be easily accessible to the public. A major program to create adequate electric generating capacity should be a priority and done efficiently to the highest of standards. Electric grid The expansion of a nationwide electric grid is clearly desirable. This requires substantial capital funds, but the advantages are huge and long term. The lack of electricity in poor places is a chronic problem. The technology exists to have adequate electricity supplies, and to distribute electricity to where it is needed. It takes investment, and it takes a reasonable approach to profit expectations. The key requirement is that electricity investment and electricity management and operations are done efficiently, ethically and without being dominated by greed and corruption from any quarter. Rural distribution The cost of rural distribution is high, but the value is substantial. Iraq should make an investment in rural distribution so that its remote communities have a chance to move forward without being constrained unduly by the lack of electricity. Energy: Non-Petroleum Fuels Overview Iraq is in a good position. It has abundant fossil fuel resources, especially oil and gas, and also coal. But, on the other end of the scale, there is a dramatic shortage of fuelwood and charcoal for household cooking in remote rural areas. These energy sources are contributing to an environmental crisis caused by the loss of trees and the production of carbon dioxide. Fuelwood is in very short supply and increased production of wood for household use should be a priority. Trees need to be planted and existing trees cut in a way that does not destroy their capacity to grow again. The manufacturing of charcoal should be considered to be an anti-social act. Coal ... natural gas The possibility of using the coal deposits as an alternative to wood and charcoal should be explored. This may not be a viable option if the coal is not suitable for use in the household environment. Bottled natural gas would probably be a better intermediate step forward. Windmills The use of windmills to drive pumps and produce limited amounts of electricity may be an option. Windmills have been an important source of energy in the past and modern windmills are well suited to use in pumping water in remote areas. Solar Solar technology has reached the stage where it is a viable option for driving remote electrical equipment. Minerals and Mining Summary overview Mining and the exploitation of minerals in the “south” ought to be generating a lot of wealth for the “south”. It will do so when the agreements are fully understood by all parties, especially the signers for the “south” and there is a solid framework for value analysis. It is not clear what role bribery and corruption plays in the sector, but it is probably significant. It is likely that substantial fund flows do not benefit the country but only benefit individuals. This is difficult to address, because the amounts involved are huge. Without addressing this, however, the wealth creation that is possible will never materialize. The international mining companies are at an interesting stage, and they are likely to have some advantage when they are seen to be of benefit to the local communities where they operate. This is not an easy balance to achieve, because large scale mining causes a lot of change ... but it is possible, and could result in mining being pulled to communities rather than having to be pushed into the communities by the mining companies and a small elite. There is every reason to expect that Iraq has mineral deposits that could be exploited on a more commercial basis. The knowledge about the mineral deposits in Iraq is not well substantiated. Much of the information is old and not supported by verifiable geological reports. There has been little exploitation of the mineral resources in Iraq. Iraq has little capacity to do the work needed to provide a basis for a rational exploitation of the mineral wealth of the country. The administration in Iraq should be supported so that better knowledge about the mineral resources in the area can be obtained. The knowledge gap should be closed as soon as possible with thorough geological analysis of the main mineral deposits. Policy about mineral resource exploitation The administration should be supported in work to establish a policy framework so that the exploitation of mineral resources is fair to all concerned and contributes to peace, security and economic development rather than having a destabilizing influence. Training in mining skills In order for the minerals and mining sector to succeed there needs to be basic skills training on a substantial scale. If there are exploitable minerals then there should be skills training to complement the other resources needs for successful industry development. Manufacturing The state of manufacturing Iraq is not known for its modern manufacturing, with the exception of its production and export of crude oil. There are parts of Iraq that have a history of handcraft ... but this is small scale and artisanal, of historic value but not of great economic value as a driver of modern Iraq. Jobs ... employment The manufacturing sector is usually an important area for job creation ... but in Iraq more of the jobs are in the services sector. Many things need to be brought together in order for manufacturing to be successful: (1) availability of materials; (2) availability of productive low cost labor; (3) a reasonable enabling environment ... that is laws, regulations, culture, etc.; (4) working infrastructure including transport and energy; and, (5) markets and profit potential. Of these it is the markets and profit potential that are missing. Most of the market needs can be satisfied by products from other places at lower cost and more profit than from local manufacturing in Iraq. My Experience in Madagascar For some years I was a consultant to a manufacturing group in Madagascar. I have described this group as one of the best managed companies that I had ever seen, in large part because of their commitment to training their staff. Even though Madagascar had tremendous socio-economic problems, and was faced with terrible foreign exchange shortages, this company still put its staff training as a top priority. As a result, the company was able to produce world standard quality and was able to participate in the global market on an equal basis with other world class producers. The company invested in good production equipment, and the staff were able to use this equipment to make the very best quality product at very competitive costs. But all of this took time. What might be possible? It is not easy to identify manufacturing that would be profitable in Iraq ... a lot depends on the willingness of an entrepreneur to take on a challenge and go into business in competition with the world. There might be possibilities in the agro-production area using processing animal products ... processed meats and skins. There might be possibilities in the petro-chemical area using the feedstocks that are available from the oil and gas sector. This could be very big business and profitable if done in cooperation with organizations that have access or control international markets. Construction Overview Almost all the construction work in Iraq should be undertaken by local organizations and using local professionals. Performance may be enhanced in some cases with external technical input, but it should be limited and relevant to the issues at hand. Almost all of the infrastructure building that is needed can be done by local organizations with rather modest amounts of external technical assistance. The goal should be to construct infrastructure of an adequate quality at the lowest possible cost so that the economy can be more productive. Rebuilding ... housing The local construction industry should be funded to do the essential rebuilding needed as a result of war damage. All the essential utility services should be brought up to a level of service that should be normal in a country of Iraq's wealth. Road construction Road construction should be advanced where it is needed. Efforts should be made to ensure that the road network not only serves the main urban areas but also reaches remote communities. Not all the roads need to be built to international standards, but should be all weather roads. Employment The construction sector should be an important source of jobs in Iraq. Rebuilding should help increase paid employment in the economy of the area. The economy will be strengthened in lots and lots of little construction projects can be undertaken. Well planned development will not only provide jobs for laborers but to all levels of supervision, management and administration. Training In some areas training may be needed. Training should be available to the construction industry through a range of modalities. There should be skills training available through vocational training centers and “on the job” provided by cooperating contractors. CHAPTER 17 SECTORS: TRADE AND LOGISTICS Logistical Services Transport The transport systems in Europe, in North America, in Japan are incredibly efficient. Transport is a very innovative sector in terms of the adoption of technology. This needs to be applied to the “south” where transport infrastructure, roads, rail, ports, have not been developed to the optimum. There is the need for a huge investment by both the public and private sector. Some valuable progress can be made by doing as much work as possible on a small scale in and around communities. Truck fleets The truck fleets in Iraq have expanded based on the profits of the private operators. The financing associated with the truck fleets is likely a huge cash cow for those that are engaged in the financing. Truck maintenance is handled by a large a competent workshop sub-sector. Parts are not a problem as long as funds are available. The fuel situation that is often a problem is not a problem in Iraq where refined products are widely available. Air transport Air transport service operators can be in the private sector. There can be financial support from the government to facilitate the funding. Airport fuel and service Baghdad airport is international standard and all fuels and services from an international airport are available. Port operations Port operations are going to be a major issue in the future success of Iraq, and especially the oil and gas sector. A modern port capacity is going to be vital in the handling of energy products exporting product using the largest of the modern supertankers. Pipelines Pipelines are the main means of transporting petroleum products. They are an easy target for bombers and have not been adequately protected so are not all presently in service. Warehouses Warehouses are now a critical part of logistics operations. They serve much more than merely to keep stock in a safe place out of the weather. They are now fully equipped so that information about stock movements in facilitated in real time. The old era warehouse is still needed at the community level ... while the 21st century warehouse and integrated logistics system starts to operate in the country. Maintenance Repair shops, welding and machine shops There is an ongoing need to strengthen the national capacity to maintain equipment and do welding and machining. Much equipment, especially in small enterprises, is old, and needs ongoing maintenance. There are a lot of small facilities that do work at a basic level, but few that have the capability to pdo the higher end work. Access to training Training will help improve the sector, and help increase jobs and employment while also providing value for the community. It should be possible and easy for people to upgrade their skills. All maintenance and machine shops of good standing should be encouraged to train people to a higher level of skill. Chapter 22 - Sectors: Trade and Logistics Trade International trade International trade has been a key driver in making some countries prosperous. It was the driving force behind a lot of wealth creation during the mercantile and colonial era, and it remains important today. The success of Japan, and then South Korea and now China and others are based on international trade. India's success has been more trade in services than in manufactured goods, but it is still very much international trade. In the case of Iraq, crude oil is very much a component of Iraq's international trade. Wholesale trade There are parts of the economy where the wholesale functions are still provided by independent organizations. For example, spare parts for automobile maintenance are carried in inventory by wholesalers who provide rapid delivery to auto repair shops in their service area. It is a very efficient sharing of roles. In Iraq and many countries in the global “south” wholesale is often linked to import / export. Wholesale is also associated with traders and middlemen. Wholesale and distribution in the “south” is often high margin, but it is also often high cost and profits are not as large as they might superficially appear. The wholesale trade, and import/export are less important in the modern global economy because of a growing tendency of global companies to handle all the logistics from original manufacture on one country to retail marketing in another. The wholesale trade may not have the same structure that it has had in the past, but the functions of transport, distribution, warehousing, break-bulk, etc. still have to be done. Though a larger part of the modern retail trade goes direct from the manufacturer to the retailer, all the intermediate distribution and wholesale functions are still done, but done in-house. Wall*Mart is a very good example of a modern corporate organization that has brought all the functions from manufacturing through final sale to the customer under its control. While many operational activities are subcontracted, the overall operation is controlled by the Wall*Mart logistics system. WalMart What is WalMart? Is it a retailer, a wholesaler or a distribution company? Perhaps the best answer is that WalMart is a success. It is also perhaps the best example ever of an organization that has used management information to optimize what it is doing to supply its customers with what they want. It has been one of the world's leading users of management information for a very long time. It deployed mainframe computers for data analysis long before it was fashionable. They have been ahead of the curve in understanding customer behavior in their stores for years, as well as understanding the detail operations of their organization. They know their business and they know the data associated with their business. As they grew it was not analytical genius that made them decide to integrate their supply chain backwards to the manufacturers of their products. But they were among the early adopters of integration of operational data near real time into every aspect of the supply chain so that inventory availability to customers at the stores went up and inventory investment as a whole went down. I thought it was interesting on the second day after the 9/11 disaster to learn in the media that WalMart knew its customer buying activity hour by hour at all its thousands of locations and knew precisely what was being bought by a population in panic. Milk and bread, then guns and ammunition as the hours progressed. And WalMart was able to divert hundreds of truckloads of supplies to hurricane affected areas in the aftermath of Katrina days more quickly than government organizations like FEMA. There is a lot to learn from WalMart. Excellence in the use of management information has been one of its key strengths. Retail sector When I was growing up in the UK, the country was referred to as a nation of shopkeepers ... a remark originating, I believe with Napoleon. At the time the UK was still very much a manufacturing country, but the quality of life was increasingly associated with consumption. The UK was probably behind the USA in embracing consumerism, but it was emerging. Today the retail trade ... shopping ... is a huge industry catering to the market in every way imaginable. In the USA, big box retailing epitomized by Wal*Mart is now the largest employer in the country. But the multi-store malls, department stores and urban shopping centers also are a huge part of the modern US economy. Arguably shopping is the top entertainment in the rich societies of the world. And in the “south” shopping is rather more of a challenge. There are much higher distribution costs because of poor transport infrastructure, there are few economies of scale, there are constraining import export and customs procedures and duties and the market demand is limited by peoples' buying power. It is nevertheless a very important part of the economy, and one that can play a great role in establishing sustainable socio-economic progress. Informal trade The informal trade in all sorts of merchandise all over the world is remarkable. The prices reflect the costs of getting product from the exporting area to the local market, and the prices sometimes reflect the non-payment of onerous customs and other duties and taxes. The scale of the informal trade around the world is difficult to assess, but it is huge. Markets ... where trade takes place ... help to keep everyone fed, and everyone clothed. They do better when the community is prospering than when it is not. An important sector for income generation The services, retail and petty trade sector is one of the largest sources of income for the poor and for women. For many, it is also the starting point for more substantial business enterprise. Regulations ... some are needed, most are not. There are few formal regulations that apply to this sector. The sector thrives with a minimum of regulation. In circumstances where the trade is made illegal, as it was in the former communist regimes, the informal trade disappears, and with it a very large part of the foundation of the economy. Though the sector is untidy, it is where most larger businesses start. Chapter 23 - Sectors: Service Sectors CHAPTER 18 - SECTORS: SERVICE SECTORS Banking and Financial Services An important sector for success A broad range of banking and financial services help socio-economic development progress. While these services are readily available to the rich and in wealthy communities, they are not universally accessible, and the poor at the bottom of the socio-economic pyramid are not well served at all. In fact, the mainstream banking and financial service companies have either retreated from service to the poorer segments or society, or have increased the pricing of services that are used by poorer people. To add insult to injury interest rates are high and fees are also high making the total cost of service more like loan sharking than mainstream banking. Community needs In the last four decades rural banking has stagnated and in many places has disappeared. Perhaps for the last 25 years there has been some growth in microfinance, but this is a very limited subset of banking and arguable not an important subset. The growth of micro finance is progress, but it is not the single silver bullet that is going to solve all the socio-economic development problems of the south. In any community, there is a need for at least three main financing components: (1) micro finance that serves the individual and micro-business; (2) mini finance to satisfy the needs of the small and medium sized businesses; and, (3) muni finance that provides financing for economically desirable community projects. Commercial banking for enterprise The Commercial Bank sector in Iraq either through national banks or in association international banks has the ability to provide a full range of financial services to major business enterprises. The challenge is to expand the service to included smaller businesses and those that have the potential to grow, but not the financial strength to grow. Informal systems for financial services Where the formal commercial banking and financial services sector is weak, a range of informal systems for financial services are available. These systems are very important to the local economy, especially the informal sector and the small business. Some of the informal systems, however, while providing a needed service, also exploit the poor in a very aggressive manner. Public finance The mainstream banking sector should be in a position to assist with the financing of the public sector and be available to make funds more easily available in areas distant from Baghdad. Communications Telephone The telephone service in Iraq has become much more wireless in the past few years. The technology is insufficient and service leaves much to be desired. Urban areas are being targeted, but remote areas are not being served. Getting a good telecom infrastructure is a good basis for other progress. Internet In Iraq the Internet is available through a variety of services, none are cheap. The Internet ought to be working on top of a good local infrastructure and be accessible easily and at low cost. Private sector The most effective strategy is going to be to make sure that the development of communications is handled by the private sector, with the public sector authorities having a regulatory role that ensures a quality service and pricing and service agreements that are reasonable. Media Radio and Television Radio and television have been under government control in Iraq. However private channels can be picked up from satellites and from broadcasts originating from other countries. These are powerful ways of spreading news, entertaining people, spreading propaganda and influencing people. While the English language is used to some extent, the primary language in the country is Arabic. While programs in English reach the international community in Iraq, it is the Arabic programming that reaches the population at large. Print media There are a variety of newspapers in Iraq. A lot of material printed in the media has originated from some official source. Newspapers are an important communications medium and should be used not only for entertainment but also for serious news and analysis. New media ... Internet The Internet must be thought of as a major component of the media sector. The Internet has a combination of characteristics that have never been seen before ... it can be extremely fast ... combine digital video, audio, text and interaction in a bewildering range of combinations. It can be private or it can be very public, depending on how the user chooses to interact with the Internet and the Internet community. Professional Sector Professional sector situation The professional sector includes professions like accountancy, law, medicine, teaching, engineering, architecture, accountancy, the religious, etc. These professional people have standards for their work that enable society to rely on what they do. They serve to improve productivity in enterprise and in society and in so doing create tangible value in society. As long as there is instability and a lot of violence professionals are going to move themselves and their families to safe places. The professional is a great value to the society and to the economy, and emigration constrains success. The private professional sector is very important for sustained development. The government is able to set a legal and policy framework for civil society and development, but there also needs to be the private professional community that can provide a technical input so that the laws, regulations and policy are compatible with global professional principles. Professional employment is not a large number, but is an area where higher incomes may be earned. National professionals should be recruited to do professional work that is required to strengthen the national frameworks for development. The state of knowledge about development, about the law, about the society, etc. all need to be improved, and this can and should be done by funding work to be done by national professionals. There should be active cooperation between local professional societies and equivalent professional societies in other countries. Many professional societies have active international programs and are looking to expand their global connections. These links should be actively encouraged, in particular as a way to facilitate world class training for the leading members of the professional community. Tourism High economic value Tourism is a sector with huge potential economic value. But tourism, like everything else, requires planning and investment to be successful. Some places have developed tourism very effectively and have made it an important part of their economic success, but in many places the opportunities of tourism are totally ignored. In Iraq, there were few visitors during the Saddam Hussein era. Visitors since the 2003 Iraq war started have been mainly soldiers intent on making peace and some international contractors engaged in making money. There have also been lawmakers and journalists who have able to see Iraq from the Green Zone and a few other “safe” places in the country. Destinations ... What To Do? I have traveled a lot almost always on work assignments ... and I am amazed at how many places have wonderful destination activities that nobody knows about. Iraq has an interesting and very long history ... places in Iraq were determinants of history in Biblical times. The rivers in Iraq are part of Biblical history. The archeology of Iraq is fascinating. Iraq ought to be one of the must see tourist destinations ... one day ... maybe. But building back a tourism industry is important. Tourism is successful when safety is sure, there are good places to see, good transport, good hotels, good food and good entertainment. Hotels, restaurants and entertainment Hotels, restaurants and entertainment that serves local business does not attract the international tourist community. For upscale international tourists there needs to be a higher class of hotel and restaurant. International tourists look for air-conditioning, spotless bathroom facilities and their own style of food. For this they are willing to pay. There also needs to be entertainment value as, for example, in various forms of destination that show of local history, culture and sights. Education Education sector Education is, more than anything else, the investment that will facilitate a successful future. Education is a prerequisite for jobs and opportunities and to be able to have valuable lives. The value of education is not a “certificate” but the training of body and mind so that a person can do valuable things. Education needs to move from basic to higher levels where a person is not only challenged academically, but also is prepared for a productive life. Accordingly there needs to be not only primary, secondary and tertiary education, but also vocational and professional eduction. Education does not need to be done in traditional or old-fashioned ways, but in any way that works and is cost effective, including using electronic resources of various sorts. In the future, the education sector is likely to include activities related to the use of Internet resources. Educational policy Some appropriate goals of an education policy in Iraq might be the following. No specific goals have been included here. Thus: ● Expand primary education ● Address priority needs in secondary, technical and vocational education ● Improve quality and equitable distribution ● Extend new curriculum to all levels, ● Increase the number of certified primary teachers ● Lower textbook ratio ● Achieve more efficient use of teachers, ● Raise female participation ● Increase the proportion of female teachers ● Rehabilitate all schools damaged by wartime activities PB-New-Wave-for-Development-110102b.odt Page 391 Printed on Nov 29, 2015at 10:56 PM New Wave for Development Under-served areas Iraq has some areas that are under-served regions. The literacy rate in Iraq is very variable depending on the place. In the main urban centers literacy is around 80%, while in remote rural areas it is more likely to be 20%. Literacy among women is 50% of the literacy rate for men. Curriculum and text books Iraq has a well developed curriculum of education. A laudable effort has been made to revise the curriculum and prepare textbooks and teaching materials. A lot remains to be done to improve the curriculum and the teaching materials. Textbooks are also needed for the schools and training centers. The program will support the preparation and the purchase of textbooks for schools and training centers. Teachers The number of teachers in secondary schools in particular is less than optimum. The proportion of female teachers in primary school is low and there are almost no female teachers in secondary schools. New teachers need to be found, and most important, new teachers need to be trained. Iraq needs capacity to teach teachers. The teaching of teachers is needed for primary grades and secondary grades, but also for skills training and the non-formal basic education initiative. Planning and management Planning and management capacity at every level is very weak. The decentralization process implies that a lot more is expected from regional and local government. There are a lot of vacant posts in the regional education bureau and almost all the zonal offices are a one man offices. Most people in responsible position at all levels lack the required qualification and experience. Women and girls The situation of women and girls in education in the area should be addressed by the program in a practical way. There are ways in which women can expand on skills they already have to become of very much more value to themselves and to the community. Health skills training, for example, already known at an artisanal level can be upgraded so that health skills can be used for the benefit of the community at large. Informal, but nevertheless real, knowledge can be mobilized so that it forms the basis for teaching in the non-formal educational environment. Skills training Skills training for mature adults is critical for the growth of the economy and to enable unskilled mature adults to participate in the opportunities of wage Page 392 PB-New-Wave-for-Development-110102b.odt Printed on Nov 29, 2015at 10:56 PM Chapter 23 - Sectors: Service Sectors employment. The skills training that is needed ranges from the very basic to quite advanced, from how to be a laborer to doing repair work on computers. People need to have an opportunity to learn skills so that they can make the best of their capabilities. Skills training is needed for all, young and old, male and female. There is, however, and important need to address the skills training of young adults, many of whom have lost many years of education and are now uneducated, unskilled, unemployed and potentially a source of future difficulties. Employment or jobs Jobs is not really a sector or sub-sector ... but employment and jobs are very important. The effort to creating self-employment opportunities that require a lot of labor for very little return needs to be supplemented by much more effort to make it possible for small employers to become bigger employers, and for employees to selfimprove so that they can do bigger and better paying work. The jobs that are created need to be profitable, that is value adding, in order to be sustainable. Where the value is social, as in health and education, there also needs to be jobs in productive sectors that generate the cash flows to pay all the wages. Health Health situation The health status of Iraq has deteriorated relatively in the past years. Health and health related services are limited because of shortages arising during the economic sanctions and the war conditions. Coverage is low with the distribution biased towards the urban population. Most health facilities in Iraq are understaffed and the quality of training of some of the current health workers is poor. Moral is low because of the state of chaos. Management capacity at all levels is very limited and whatever management information system existed previously has almost ceased to function. Rehabilitation of health sector The rehabilitation of health sector is a priority. Funding is needed for the necessary construction work that needs to be done to rebuild and expand the infrastructure. There is also a need to rehabilitate equipment and funding is needed for this. The infrastructure includes both urban hospitals and health clinics in smaller communities. PB-New-Wave-for-Development-110102b.odt Page 393 Printed on Nov 29, 2015at 10:56 PM New Wave for Development Many of the projects are an integral part of the Health Ministry's program and are designed to facilitate their integration into the mainstream of the health development of the region. Education and training Training nurse is a very high priority. There are not enough nurses. The need for nurses is very high. Furthermore, nursing is a training and employment opportunity for women. Training of nurses should be encouraged through all means. Training doctors and medical professionals is a long (and expensive process). However, the long terms success of the area economy depends on having trained professionals from the area in the area. Funding long term professional training should be a part of the ongoing development strategy for the area. Mother and child health programs Mother and child programs should remain a priority in the health sector, with continuing efforts to reach the mothers and children of pastoral families. Immunization programs for children should remain a priority in the health sector, with continuing efforts to reach the children of pastoral families. Mental health Mental health is a problem that is not enough of a priority. Mental health practices are ones that became unacceptable in industrialized societies several decades ago. The traumatic experience of the area in the last twenty years (or more) has created a serious mental health problem. Page 394 PB-New-Wave-for-Development-110102b.odt Printed on Nov 29, 2015at 10:56 PM Chapter 23 - Sectors: Service Sectors Chapter 24 - Afterword PB-New-Wave-for-Development-110102b.odt Page 395 Printed on Nov 29, 2015at 10:56 PM New Wave for Development CHAPTER 19 AFTERWORD A book is never finished ... but at some point it goes off to the printers, and the writing process stops for a while. But this is not the end ... the ideas are new and they need refinement ... this comes from feedback and attempts to use the ideas in a diverse set of situations. There is lot to learn ... and especially from failure. Page 396 PB-New-Wave-for-Development-110102b.odt Printed on Nov 29, 2015at 10:56 PM Chapter 24 - Afterword Chapter 18 Tr-Ac-Net's Community Analytics (CA) Chapter 2 Most of what the media and global leadership wThe first challenge is to get the reader to understand the scale of the failure of development. First, absolutely in terms of the total population that are affected by development failure. Second, relatively in terms of how some have progressed and other have not. Discussion of some of the big facts that have to be faced: famine and hunger, war and refugees, poverty and concentration of wealth. Chapter 3 An overview of the problems that are causing development failure. Too many people. Not enough development resources. A dysfunctional development process and institutional framework. No information for the management of relief and development resources. This chapter moves beyond the symptoms to the underlying problems and gets at the root causes that are the underlying reasons for development failure. This chapter identifies systemic factors. This chapter goes beyond the conventional wisdom and the NORTH's simple perception of development as commonly portrayed in the media to a view that more completely reflects a SOUTH view. Chapter 4 The proposition is that there is a new way to think of development and make it practical and win win. There are resources for success, but they need to be organized in a value adding manner, and for this there needs to be adequate management information. The mindset of money constraint is changed to one where all resources are used to maximize potential. It is a technical analysis, rather than an economic analysis, and the information is management information rather than aggregate economic data. The focus is on people and community, and getting rid of organizational and process constraints. There is also a focus on excellence in transparency and accountability so that resources are best used for good progress. Chapter 5 Community Centric Sustainable Development (CCSD) ... Is community a good way for relief and development to be organized? Is community the best entity to think about development and progress. Would community centric development be a better way of managing development resources than donor centric development. What does the community have that makes it the ideal entity for planning for development progress? PB-New-Wave-for-Development-110102b.odt Page 397 Printed on Nov 29, 2015at 10:56 PM New Wave for Development Resources that are available can be used in the best possible way. How can resources be used for best results? What incremental resources are needed and where are they going to come from. How to ensure that the community gets to use resources for its priority works. How are community resources going to be used to achieve maximum economic value adding and progress towards the goal of success in development. Is community the key to success? Local people often know what they need, but don't have all the resources to do what needs to be done. Systems approach The chapter describes the essentials of the process ... a systems approach:  Plan: Use available information and knowledge to determine priority needs and figure out the best way to satisfy these needs based on available people and resources.  Organize: Get the resources lined up to do the work. Organize is not just in terms of human resources, but in terms of all resources including the mobilization of financial and other material resources.  Implement: Do the work. Generate the benefits. Pay the bills. Do the accounting.  Measure: Measure what was used and what was done and what was accomplished. Measure so that excellence can be seen and used to attract more resources.  Feedback: Use the measurements. Figure out how to do better. What went wrong? What went right? Get the information to decision makers that can change performance. A systems approach built on top of a community centric mindset can deliver a dynamic process with multiple parallel tracks all progressing to success in the best possible way. It is not one single dumbing down of a process to one average for the whole world that makes no practical sense for anyone. It is process built on engineering and accounting rather than policy and economics. It is a process that respects individuals and family and community, and tries to make community better, one community at a time, but bringing to bear everything that might be helpful. Chapter 6 They get depleted without adequate thought to the future. The solution is to use natural resources to help improve the neighborhood economically and sustainably What can agriculture do? Two key resources This chapter highlights the two key resources, the human resources and the natural resources. Both abundant, but rarely used effectively for success in development. The chapter describes all the other resources that go into a Page 398 PB-New-Wave-for-Development-110102b.odt Printed on Nov 29, 2015at 10:56 PM Chapter 24 - Afterword successful comprehensive success. The chapter shows how external resources should be used to complement local available resources to achieve maximum value adding. Solutions – making the best use of resources Why does the prevailing process waste resources? What results can be achieved when available resources are best used? Resources are not just money and financial resources. They also include human and natural resources which are often abundant and valuable when used well:  People. What is the human potential? What is needed so that people can do the maximum that they are capable of?  Organization. What are the capabilities of existing organizations? What is needed so that they can do the maximum that they can do? What professional organizations are there and what can they do?  Infrastructure. What is there? What is the best way to improve the infrastructure so that it can support the highest level of activity? What is the status of the roads, the communications, the clinics and hospitals, the transport systems, etc, etc?  Natural resources. What natural resources are there? How can local resources be used as an economic driver for the area? What is the natural economic potential of the area? What can agriculture do? Are their other local resources that have economic potential?  Machinery and equipment. What production capacity is there? Does business have what is needed?  Working capital. Does business have access to the working capital and liquidity it needs. What needs to be done to satisfy working capital needs?  Money. What money and financial services are available? How can salaries and suppliers be paid? What is the business model to generate positive cash flow? What are revenues? Is it market driven? Is it government budget? Is it grant based? Is it fee based? Is it mixed?  Knowledge. What knowledge is there? Is everything known that needs to be known. How to stay up to date. How to train new people. How to update knowledge and be in the global knowledge community. Problems with the process How the process for development over the past forty years has ended up as development failure. How is it that economic value destruction has become the prevailing development process. How is it that development interventions and PB-New-Wave-for-Development-110102b.odt Page 399 Printed on Nov 29, 2015at 10:56 PM New Wave for Development investment have removed wealth from developing countries rather than creating wealth in these countries. Why did the “project” form of organization come to dominate ORDA interventions. What is wrong with the conventional ways for implementing relief and development. Why is it that there has been more economic value destruction than value adding? Why is so much of the poor world in catastrophic shortage in a world that has potential for surplus in almost everything? Relief and development has been anti-developmental. How can the process process be made to work for people and be done by people and deliver on sustainable development and improved quality of life. How can process must make best use of available resources. How can economic value adding help create development success out of everything that is done. Institutional constraints Often good people are beaten by bad systems and bad processes and ineffective organizations. Institutional constraints are normal, but can be resolved with new organizations and competitive pressure. Large scale World Bank, UN and donor initiatives need to be scaled down and replaced with a new organizational structures. Instead of approaching development by reaching down from Washington of London or Paris, start by working up from the community wherever it is. Instead of putting more and more resources at the disposal of governments, put more in the hands of people, and families and communities. Chapter 7 An increase in population should be a positive for development success rather than being a negative that reduces wealth. Recent development thinking has people as liabilities and users of scarce resources rather than being human assets that help produce and create wealth. The chapter challenges some of the issues about people that are used to explain development failure but which are more about the way organizations and societies fail people. It raises the question about people's wasted potential, lack of opportunity and disorganized organizations. It takes up the issue of how organizations with ineffective systems and processes destroy the potential of good people to do great work. Make the very best use of people How can people be put at the at the center of development. How to get people to be more important than institutions. How to get people in every corner of the development process? When people have opportunity they can make better use their abilities for good benefit. But people have more power as a team so that leads to the question of how teams should be established and how people can organize to get things done. What are the incentives that motivate people? What way to organize for success at every level, while keeping the priorities of people, and the enthusiasm of people so often lost in the humdrum of a typical large organization. How to keep people informed so that they are able to participate Page 400 PB-New-Wave-for-Development-110102b.odt Printed on Nov 29, 2015at 10:56 PM Chapter 24 - Afterword in priority setting and decision making and making accountability a factor in development performance. Chapter 8 Financial services What money and financial services are available? How can salaries and suppliers be paid? What is the business model to generate positive cash flow? What are revenues? Is it market driven? Is it government budget? Is it grant based? Is it fee based? Is it mixed? Many of the problems of development are blamed on lack of money and financial resources. What ways can money and liquidity be created to support development progress. How can money get where it is needed in the best possible way. What about transparency and accountability? Production infrastructure Machinery and equipment. What production capacity is there? Does business have what is needed? Do the people have access to machinery so that big jobs can be done by small people. Poor countries have little production capacity. What is the best way to get more horsepower into the hands of people. Does business have access to the working capital and liquidity it needs. What needs to be done to satisfy working capital needs? Business can only function if there is inventory and enough financing for the business to operate. These component of progress are sadly missing for poor businesses serving poor people and communities Health and human services Chapter 9 Is it a facilitating environment or a constraint on success? What would help the community to progress? What are the ways forward so that peace and prosperity wins over war and mayhem? Governance Infrastructure What is there? What is the best way to improve the infrastructure so that it can support the highest level of activity? What is the status of the roads, the communications, the clinics and hospitals, the transport systems, etc, etc? What is the best way to improve the infrastructure so that the society and the economy is the most productive. Social sector: health Social sector: education Economic sector: banking and insurance PB-New-Wave-for-Development-110102b.odt Page 401 Printed on Nov 29, 2015at 10:56 PM New Wave for Development Chapter 10 Information – lots of it, but not much use Much of the information that is available about development has an enormously high cost, but dramatically smaller value. Value destruction at its best. Why is this information not help much in making good decisions about development. Why is so much data good for economic analysis and good material for journalists, but little use in the effective management of development resources. Where is the information to drive transparency and accountability? Information – useful, independent, reliable, universal How data can be converted into information, knowledge and wisdom? What constitutes good “management information”. How valuably is it? How does important data disappear from public view, and how can this be fixed? What are the needs, resources, uses and results from good public data? How can information be made useful, independent, reliable and universal. How can data be used for achieving development excellence and economic value adding? How much value does this have? How should data be organized, what is the metadata and the best information architecture now that amazing modern technology can be used. How does data get used for management of development resources and how does information get distributed? How can information be kept independent and be reliability. How can the problems of errors, insecurity, hackers, fraud and incompetence be managed? How can information be best used to make good plans, to get well organized, to get funding, to implement well and provide excellence in transparency and accountability? The information dimension Modern information and communications technology (ICT) can get information instantly anywhere in the world where there is Internet infrastructure. How can Internet infrastructure become universally accessible. What is slowing down deployment of modern ICT? Who cares enough to ensure that information access becomes available for everyone? What are the possible solutions that can be implemented? Is community centric communication a way to start? How can this become a part of the universal global Internet infrastructure? The ORDA community is responsible for around $50 billion of fund flow for relief and development. How can these resources which are used inefficiently be displaced by private fund flows that are used efficiently? Fund raising outside the ORDA framework needs to be established, and the right sort of information made available so that it can be scaled up from millions to billions. This is entirely possible with the effective use of information. Page 402 PB-New-Wave-for-Development-110102b.odt Printed on Nov 29, 2015at 10:56 PM Chapter 24 - Afterword Knowledge Knowledge. What knowledge is there? Is everything known that needs to be known. How to stay up to date. How to train new people. How to update knowledge and be in the global knowledge community. How to get knowledge so that is used in the most valuable way? Science and technology Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 A lot of what is described in the book is actually being done by the Transparency and Accountability Network. This section describes the progress being made and the problems being confronted. A lot of initiatives have been started and need scaling up. A lot of information is available, but it is not yet efficiently managed. Funding is weak, but improving. Everything that Tr-AcNet needs to do has already being done successfully, but not on a big enough scale. Relatively little help in the right places is already making an enormous difference. Chapter 19

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