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
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
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.
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
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.
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
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
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.
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.
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
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
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.
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
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
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.
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
In general terms, the telecommunications infrastructure in the global “south” is
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
An Internet infrastructure can be built in coordination with the telecom ... the
underlying Internet backbone uses much that in common.
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.
SECTORS: AGRICULTURE, FISHERIES AND FOOD
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.
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 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 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
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
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.
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 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.
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
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 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.
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 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
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
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.
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
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
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.
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.
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.
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
Energy: Non-Petroleum Fuels
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.
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
Solar technology has reached the stage where it is a viable option for driving
remote electrical equipment.
Minerals and Mining
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
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
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
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
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
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
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
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
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.
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.
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
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.
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
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 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
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 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
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
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
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
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
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
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
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
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
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 ...
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
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.
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
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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
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
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
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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.
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.
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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
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 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.
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Chapter 24 - Afterword
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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.
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Chapter 24 - Afterword
Chapter 18 Tr-Ac-Net's Community Analytics (CA)
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.
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.
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.
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?
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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
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
Measure: Measure what was used and what was done and what was
accomplished. Measure so that excellence can be seen and used to attract
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.
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
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Chapter 24 - Afterword
successful comprehensive success. The chapter shows how external resources
should be used to complement local available resources to achieve maximum
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
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
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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.
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.
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
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in priority setting and decision making and making accountability a factor in
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
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
Health and human services
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?
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
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New Wave for Development
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
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.
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Chapter 24 - Afterword
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
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