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Commenting on a regular press release he received from the Asian Development Bank, dated 15 November, and titled ‘Fragile, Conflict-affected situations need a new development approach,’ Chartered Accountant Ranel Wijesinha, himself an independent consultant to the ADB, said he thought that the release had referred to a long outstanding realisation when it said: “Development partners need to improve their approach to promote sustainable development in countries that have fragile and conflict-affected situations (FCAS), through critical analysis of economic, structural, social, political, and institutional issues in each country and by customising interventions, based on the local context.”
The release had triggered the following thoughts, which Ranel Wijesinha, shared with us. These observations, are very timely and appropriate in the context of Budget 2017, presented by the Finance Minister on 10 November and currently being debated in Parliament.
Multilateral and bilateral development partners and the political economy
A new approach to FCAS countries, the study suggests, should focus on better knowledge and understanding of the political economy context of each sector when designing development programs and projects. Wijesinha remarked that he will “certainly be pleased if the IMF, the UN, the World Bank, the EU and the USA and indeed the international community, were all to achieve this level of realisation. Sri Lanka may not be categorised as a “Fragile” state, but yet we must not forget that the situation can get fragile, if the representatives from multilateral or bilateral organisations visiting Sri Lanka, do not orient or re-orient themselves, to learn and unlearn and re-learn, perform deep diagnoses rather than perform rapid assessments followed by recommendations of quick fixes.”
A higher level of seriousness, thoroughness and timeliness, is desirable
Commenting further, Wijesinha, who has been Team Leader of Governance, Institutional and Corruption Risk Assessments (which include assessments of Public Financial Management, Public Procurement, etc.) and Institutional Development and Capacity Building assignments for the ADB in post-soviet nations such as Armenia and Azerbaijan, as well as in Infrastructure Financing Assessments in conflict affected countries such as Afghanistan, and the seven North Eastern States of India, (the site of many terrorist movements and considered the most challenging region India to govern), said that he believes that “in certain instances, the ongoing needs assessments conducted by Development Partners and the quality and creativity of consultants deployed to design programmes, can well be improved. In essence a higher level of seriousness, thoroughness and timeliness is desirable, in designing interventions.”
A new dawn requires a new realisation
“Every fragile situation calls for a unique response” the release had stated. “It was in 2009, just after the war that I wrote, “A new dawn is upon us and hence a new realisation must awaken us.” Here, what I meant by “us” included political leaders, policy planners, development partners, whether bilateral or multilateral, whether the World Bank, the ADB, or USAID, as well as representatives of the professional, business and civil society. Via radio interviews and print media, in 2009, seven years ago, I said: “What we have earned recently is not a victory at a long and arduous battle, alone. That would be the case if we view what happened in a static sense. Viewed in a responsible, dynamic and futuristic sense, more importantly, we have earned an unprecedented opportunity to rebuild our nation – a nation, which has endured considerable damage, great pains and constraints for three decades and more. A significant part of the damage has been inflicted upon us by a force whose ability to destabilise us is now substantially contained. A good part of the damage is also, self-inflicted by successive regimes. All this has robbed the next generation – a generation whose potential contribution has yet been unrealised-of abundant opportunity.”
EU, GSP plus and US – Flashback to 2010
“As for trading blocs, I recall my comments, when writing in my column, The Thought Leadership Forum, in the opinion page of the Daily FT on 19 July 2010, under the caption ‘Engaging the international Community with Dignity’. I said: ‘We in Sri Lanka were in a rut for 30 years. We got out of that rut with difficulty, despite many who said we couldn’t, many including myself who thought it difficult and time-consuming and that a continuation of the war was robbing a nation of opportunity. There were many in the international community, who would have liked us to remain in that rut and perhaps wish that we got back into that rut again.’”
Heads and hearts in the right place
“Quoting from my writings of 19 July 2010, I said that: ‘Nations world over and their leaders who have their heads and hearts in the right place must lend a helping hand to Sri Lanka to get up and begin to walk again. Their response then, must be to find a way to seek convergence on a way forward rather than to impose an inventory of conditions with unrealistic deadlines. If the world got together to pull Afghanistan out of a rut, a rut it yet has to get out of, the same magnanimity, creativity, passion and patience, collective thinking and incremental assistance must drive that response. The world has an ethical and moral responsibility to do so.’”
Joseph Stiglitz, and a Marshal Plan for the Middle East
“On our part our private sector must be a voice for all,” said Wijesinha recalling that, “When the leaders of the Sri Lankan Apparel Industry themselves, were somewhat luke warm about having the restoration of GSP plus discussed and debated publicly with me as a Moderator, in the year 2010, in fora that I was prepared to organise and host, and were also reluctant to lobby the Government to ‘Engage the International Community with Dignity’ I wrote a sequel, in my column in the FT. I titled it ‘USA, Iraq, Afghanistan and Us’ and used that as a basis to urge the then Government to in turn urge the EU, to look at GSP again. I referred to Joseph Stiglitz, the former Chief Economist of the World Bank who in his book the 3 Trillion-Dollar War said and I quote, ‘We could have had a Marshall Plan for the Middle East or the developing countries, that might actually have succeeded in winning the hearts and minds of the people there. Even more modest ambitions could have been achieved for a fraction of the costs spent on Iraq.’ This Stiglitz said in 2008.”
“Yes, conflict-affected situations, require customised approaches,” concluded Wijesinha, in anticipation of greater flexibility and dignity, in negotiations that Sri Lanka can engage in, with the international community.
Following is the full text of the ADB Press Release
Manila, Philippines (15 November 2016): Development partners need to improve their approach to promote sustainable development in countries that have fragile and conflict-affected situations (FCAS) through critical analysis of economic, structural, social, political, and institutional issues in each country and by customising interventions based on the local context, says a new Asian Development Bank (ADB) report published today.
“Every fragile situation calls for a unique response. If the right policies—customised to the local context—are not in place and core institutions are not strong enough to absorb the resources provided by development partners, the vicious cycle of fragility, conflict, and poverty will continue,” said Stephen Groff, ADB Vice President for East Asia, Southeast Asia and the Pacific.
“Sound structural policies can lead to more effective and efficient governance, while social inclusion and equity are the foundation for political stability and socio-economic growth.”
FCAS countries are generally characterised by political instability, weak governance and institutional capacity, economic and social insecurity, and greater vulnerability to the effects of climate change. They confront complex and multi-faceted issues, and prioritising development interventions is often challenging.
The study, Mapping Fragile and Conflict-Affected Situations in Asia and the Pacific – The ADB Experience, reviews the country performance assessments of ADB’s 12 developing member countries affected by fragility and conflict: Afghanistan, Kiribati, Marshall Islands, Federated States of Micronesia, Myanmar, Nauru, Nepal, Papua New Guinea, Solomon Islands, Timor-Leste, Tuvalu, and Vanuatu.
According to the report, all of these countries have achieved few gains on economic management, structural policies, social inclusion/equity, and public sector management between 2006 and 2015. The report also includes the Philippines, which is not considered a fragile country, but is affected by a subnational conflict situation in Mindanao.
The report notes that while in some FCAS countries, investments by governments and development partners in transportation, energy, education, health, private sector development, and other areas may have reaped some benefits, much more must be done to ensure sustainability.
A new approach to FCAS countries, the study suggests, should focus on better knowledge and understanding of the political economy context of each sector when designing development programs and projects, including a careful analysis of governance, institutional, political, and social issues. The study recommends that development partners and governments should include some key areas in their priority list for assistance.
They involve mainstreaming gender equality at the local level, strengthening accountability mechanisms for public resource use, increasing investment on health and education, capacity building for environmental institutions, developing an innovative policy framework on land use, and improving regulatory frameworks for trade, finance, and business.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members – 48 from the region. In 2015, ADB assistance totalled $27.2 billion, including cofinancing of $10.7 billion.