Date: 2024-05-19 Page is: DBtxt003.php bkTVM009020800
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Burgess Manuscripts
TrueValueMetrics ACTION INFORMATION FOR ALL OF SOCIETY Metrics about the State, Progress and Performance of Society, the Environment and Economy Metrics about Impact on People, Place, Planet and Profit |
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Chapter 2
SYSTEMIC DYSFUNCTION 2-8 MISAPPROPRIATION OF MONEY There is a dangerous disconnect between the growth of knowledge, the growth of the economy and the results being achieved. Far too many people do not see progress in their own lives and the degradation of the environment is unsustainable. |
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Plenty of Data
While some fund flows are managed excellently many others are not. There are problems with fund flow accountability at every stage of the process and some of the fund flows are severely compromised. Because of weak performance metrics it is not easy to know which ones are excellent and which are not. Weak financial control has been endemic and as a result all sorts of resources have gone missing ... stolen money ... stolen inventory ... over invoicing ... under delivering. Embezzlement of all sorts ... petty corruption and grand corruption. Part of the problem is that all of the participants have a very narrow interpretation of their responsibilities for transparency and accountability ... essentially every organization thinking of itself in a bilateral relationship with the donor or source of funding ... and the public having no stake in anything. In this arrangement it is relatively easy for a bilateral relationship to provide fertile ground for weak performance and worse. Little has been done over very many years to end this comfortable arrangement, and all the incentives in place encourage its continuation. The amount of money being raised for international relief and development assistance is huge. Fund raising in the aftermath of natural disaster is especially impressive, and shows how supportive many people are of development initiatives. But sadly the relief and development industry is less than candid about how the resources are used and what is being accomplished. In 2003 a well know NGO based in the UK called this Phantom Aid. Others before had called the phenomenon “Black Hole Development” implying that no matter how much fund flow there was, the results would still be the inconsequential.  Better Model This is a better model for development with the money getting used on the ground for real work that can deliver meaningful results.  No System ... Wrong Focus There is no system for doing development accounting and producing development performance reports. Instead of having a management information system that gives the performance information that is needed, the ORDA world does exercises that suggest that they are being responsible, but in fact does nothing to help them have control. No use of value analysis methodologies Value analysis methods have been used as long as I have known anything about accounting (more than 40 years). They became fashionable in the corporate financial analysis world in the mid-1990s with the promotion of the EVA methodology by Bear Sterns (to check this). But value analysis is missing from the ORDA world completely. No management information And nobody in the ODA world uses management information. The ODA process precludes management in the form that produces efficiency as it does in the corporate world. |
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