Development Policy and Management WEEK FIVE PIA 2501 Development Policy and Management WEEK FIVE

Deadlock? Discussion

Themes for the Week The Deadlock in Development Management The Failure to Create a Private Sector The Failure of Planning Structural Adjustment Problems with Structural Adjustment Back to Basic Needs The Foreign Aid Conundrum

Theme 1. The Deadlock in Development and Internal Capacity Issues (Bryant & White)- The Sixty Four Dollar Questions? See Bernard Schaffer, The Administrative Factor; Papers in Organization, Politics and Development (London: Cass, 1973). How much development will occur without political institutions and political will? Bureaucratic elites are part of a process of political control and mediation and development policy may have a major political mediation (control) role. What are the limitations of a state planning approach to development? Is Social Engineering Ethical?

Social Mobilization Training Social Engineering VIDEO

Internal Capacity Issues (Bryant & White) Basic Needs Assumptions: Problem Need for increased capacity of public, parastatal and private sectors State should remain central to development planning and management Need for administrative reform to develop more creative development structures

The Future of Development Management?

Internal Capacity Issues (Bryant & White) Debates: the “Attitudes Problem” How to get people to think developmentally? Changes in programmatic values have an impact on LDC elites Is working for the State different than working in the non-profit or private sector?

Internal Capacity Issues (Bryant & White) Debates: the “Attitudes Problem” Problem of the Organizational Bourgeoisie: Bureaucratic values unchanged from colonial period as domestic elites manipulate public policy (Picard) Myth of civil service neutrality: Bureaucratic elites have interests At best what results is benign neglect, at worst resource extraction

Theme Two: The Failure of Private Sector Development Problem: failure to develop an indigenous capitalism Limited to European settlers Debate about Pariah groups—Jews and Roma in Eastern Europe, Chinese in much of Asia, Lebanese and East Indians in parts of Africa and Latin America (See V.S. Naipaul) Conflict and Marginalized People

Book 1: White Mischief September 29 James Fox: British Journalist, Sunday Times (London) Description: Amorality of Colonial Kenya Issue: What does the book tell us about Colonialism

Internal Capacity Issues (Bryant & White) Debates: the “Attitudes Problem” Settlers Sometimes referred to as “Comprador” classes or “dependent elites,” since they have been co-opted and are linked to Northern Tier states Expatriate Attitudes? Pariah Elites- Are they real?

James Fox, White Mischief: The Murder of Lord Erroll, New York: Vintage Books, 1998. 1987 Film. The Story of Happy Valley, Kenya. Good Picture of Colonial Africa James Fox

White Mischief in the 21st Century? AN OUT TAKE

Pariah Groups: Gypsies (Roma) in Europe

Lebanese Fleeing Violence in Sierra Leone, 1997

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

Idi Amin Expels Uganda Asians

Internal Capacity Issues Debates: the “Attitudes Problem” Indigenous Elites have been co-opted and are linked to Northern Tier states- Cronyism and Markets

Theme Three :The Failure of Planning

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

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

AMTRAK- Public or Private?

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

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

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

Counter-Neo-Orthodoxy Argument Bureaucracies are socio-economic actors Good example: Land reform and bureaucracies A study of 25 major land reforms--in 15 cases the bureaucracy was major beneficiary in the process 30

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

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

Theme Four: Structural Adjustment 1983-2013 Special Focus Structural Adjustment with or without a “Human Face” VIDEO Protests: Do they make sense?

Neo-Orthodoxy Development management- development programs are “bad” Can’t make planning better Neo-Orthodoxy and privatization Market Currencies, Free Trade and Small Government

Structural Adjustment Policies 1985-2001 plus…. The Structural Adjustment Argument- Need to stabilize currency and markets (getting the prices right) Promote Free Trade Need to refocus role of state from development to law and order and deregulation Address the problem of Debt and Structural Adjustment reforms (IMF and World Bank)

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

University of Chicago School

Currency Exchange

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

Structural Adjustment Policies 1985-2001- Failure of the Developmental State: Goran Hyden Linked to “pre-scientific modes of production of peasants”—Economy of Affection Failure of State and “Exit Option” (See work of Albert O. Hirschman) and Barter Problem of Endemic Patronage and Corruption

Economy of Affection- Barter

Structural Adjustment Policies 1985-2012 The Argument for “NGOism” Left wing Privatization (Private Voluntary Organizations, Cooperatives, Community Based Organizations, Non-Profits) Energy of NGOs Structural Adjustment Public Sector Reform—Reduce size and restructure state Populist

Theme Five: Problems with Structural Adjustment Too much Rambo? (Reagan Administration Symbol)

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

A Critical View….

Theme Six: Back To Basic Needs: Return to Basic Needs NGOs, Governance And Civil Society Millennium Development Goals

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

Internal Capacity Issues: The Counter-Factual Basic Needs Assumptions: Problem Need for increased capacity of public, parastatal and private sectors State should remain central to development planning and management Need for administrative reform to develop more creative development structures Millennium Development Goals

Summary: Development Management in 2013? Concern about incapacity: Questions raised about efficacy of state approach Critics spoke of negative state Government had become a negative Debates focused on privatization, public sector reform and NGOism Need to address issues of external vs. internal solutions to development problems (domestic capacity vs. international redistribution)

Summary: Development Management in 2013? Focus should be on issues of sustainability and institutional development- not projects Need to search for a creative, flexible, and innovative management system Difficult to separate development from politics Implementation had become the neglected component of development policy (Pressman and Wildavsky) Question: The appropriateness of the U.S. case study as lessons for development action?

Choices: Contracting Out and Privatization NGOism and Grants Capacity Building (HRD) A Mixed Scanning Approach Democracy?

TEN MINUTE BREAK

PICARD “Unpaid Editorial”

Theme Seven: Foreign Aid Debates

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

The Foreign Aid Meeting

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

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

Autonomous Work Packaging Model

Planning Became Project Planning “End of Editorial”

What is the Answer?

How Important is Foreign Aid?

The Problems of Foreign Aid and Development Management Quote of the Week: The Quiet American- An Alternative to expatriate involvement? Non-Involvement? "The Human Condition being what it was, let them fight, let them love, let them murder, I would not be involved.“ Graham Greene

Late Colonial Philippines

William J. Lederer and Eugene L. Burdick- The Origin (March 31, 1912 to December 05, 2009) (December 12, 1918–July 26, 1965)

“ “The Book of the Week Club” William Lederer and Eugene Burdick, The Ugly American What message do these give us about foreigners in Asia and Africa What message do the books give us about “development” or the lack of it. What criticism would you make of the books?

Discussion: Stanley Karnow: “In Our Image?” In Our Image (France, U.S., Portugal) Is assimilation the answer? In the Philippines, South East Asia, Middle East /Africa? Latin America: Just Spain? Died January 27, 2013 (87Years old ) 73

Who is the Ugly American? Background: Origins of U.S. Foreign Aid Policy Marshall Plan and Point Four Program Agricultural College Bias Ugly American and the Peace Corps (and the other “peace corps”) Technical Assistance in Vietnam Models of Malaya and Kenya “Hearts and Minds” (French term, taken to Viet Nam, later used in South Africa, Iraq)

Vietnam

Authors of the Week U.S. Administrators and the “official U.S.” Need to outwit the communists; find the “decent Asian” American compound mentality: the “overseas American” sees unusual and unorthodox as “threatening” Basic ideology of the 1950s—Image of Russian officials: cultural and linguistic sensitivity U.S. Press—seldom writes about foreign policy and when they do, focus is on those who are “threatening” U.S. interests Religion: able to penetrate LDCs, and recruit indigenous allies

William Lederer and Eugene Burdick, The Ugly American Major Themes Various meanings of the term, “ugly american” Types of Americans overseas The U.S. Foreign Service in 1958 Midwestern Salt of the Earth “Hearts and Minds”

From the Authors William Lederer and Eugene Burdick- Journalists- Say Non-Fiction Characters—their significance Development Officials Communist “followers” Dairy Specialists and “Engineers” Priests Secretaries as Lacking in Sensitivity

Millennium Development Goals: Eight Goals for 2015

Social Mobilization Training Still Around

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

The Twenty-First Century Model Redux

Denis A. Goulet, 75, died December 26, 2006: Appropriate Theory and Practice