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2022 Cambridge Essex v7 1 March.pptx
- 1. Time to stop aid to developing countries? Richard Gleed & Dr Andrea Winkelmann-Gleed 1st March 2022
- 2. Introductions • Gonville & Caius 1972-75, studying Economics • Economic Adviser, H M Treasury, 1980-85 • Management Consulting – Strategy & Change – 1985 onwards • Not (just) for Profit – 2012 to date 2 Saling 2012 Ltd.
- 3. Introductions • Various teaching & research roles • UNIVERSITY OF EAST ANGLIA PhD – 2005 ‘Internationally Qualified Migrant Nurses in British Health Care Employment: their motivation, integration and contribution to capacity.’ • LONDON SCHOOL OF ECONOMICS – 2000: MSc: Industrial Relations and Personnel Management & MCIPD • QUEEN MARGARET UNIVERSITY – 1996 MSc: International Health 3 Saling 2012 Ltd.
- 4. A number of commentators, from both ends of the political spectrum, have suggested that development aid can do more harm than good. We aim to unpack some of the complexities and explore if a more business-orientated approach is an alternative. 4 Saling 2012 Ltd.
- 5. Agenda Saling 2012 Ltd. 5 The debate on aid The role of business in economic development Highlights from our experience Issues going forward
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- 12. What does the Daily Mail think? Saling 2012 Ltd. 12
- 13. But it’s not only the Daily Mail Saling 2012 Ltd. 13
- 14. Worth hearing their views Saling 2012 Ltd. 14
- 15. Prof Ravi Kanbur on the ‘global poor’ • ‘The transformation of previously Low Income Countries (LICs) to Middle Income Countries (MICs) has accelerated in the last 20 years. China graduated in the late 1990s. Indonesia, India, Vietnam, and Ghana are the latest countries to cross this threshold’ • ‘…consider the following stunning stylized fact. Using standard official definitions, twenty years ago 90% of the world’s poor lived in LICs. Today, three quarters of the world’s poor live in MICs (Sumner, 2010).’ • From one perspective, a poor country has claim on global resources, and a country that is not poor does not… • From the other perspective, it is a poor person who exercises claim on global resources, irrespective of the nation in which he or she lives. Saling 2012 Ltd. 15
- 16. Role of business in economic development Saling 2012 Ltd. 16
- 17. Growing populations and incomes – the story Saling 2012 Ltd. 17
- 18. The key ingredients of success • Stable, increasingly urban, societies • Independent judges • Representative institutions • Financial resources, “safe” financial institutions • Companies– creditor protection, bankruptcy laws • Economic freedoms – to earn own income, to trade, to own property • Legal systems to enforce contracts • Strong education system Saling 2012 Ltd. 18
- 19. World Bank – Doing Business Saling 2012 Ltd. 19
- 20. Countries institutional frameworks differ Saling 2012 Ltd. 20 Source: World Bank - http://www.doingbusiness.org South Korea Kenya
- 21. Impact of climate change and move to net zero Saling 2012 Ltd. 21 Source: McKinsey - The net-zero transition: What it would cost, what it could bring
- 22. Highlights from our experience Saling 2012 Ltd. 22
- 23. PAMOJA – more than a Training Centre 23 Saling 2012 Ltd.
- 25. “Ushindi enables women of Zanzibar to overcome their challenging circumstances by sewing quality handmade products made from beautiful “kitenge” fabrics.” This is a social enterprise, making a profit and lifting women out of poverty. 25 Saling 2012 Ltd.
- 26. Welcome to Lokichoggio! Saling 2012 Ltd. 26
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- 33. ‘Stuck in the middle’ Saling 2012 Ltd. 33
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- 35. Issues for ‘business fights poverty’ Saling 2012 Ltd. 35 Scale Sharing of benefits within societies Fair trade policies/local content laws Balanced growth
- 36. Saling 2012 Ltd. 36 Dennis Robertson remark Everyone agreed that some aid is needed Growing consensus that business has a role to play No 'magic bullet' solutions Challenges – and opportunities! - remain
- 38. Worth hearing their views Saling 2012 Ltd. 38
- 39. Joe Stiglitz at the World Bank (1998) – Assessing Aid - What Works, What Doesn't, and Why • ‘money has a large impact-but only in low-income countries with sound management. Before countries reform, finance has little impact.’ • Contrast Botswana and the Republic of Korea in the 1960s, Indonesia in the 1970s, Bolivia and Ghana in the late 1980s, and Uganda and Vietnam in the 1990s … • ….with Zaire and Tanzania Saling 2012 Ltd. 39
- 40. What about technical assistance? • (From 1993): ‘After 30 years or more of technical assistance in Africa, indigenous institutions and capacity remains weak, and expatriate assistance remains entrenched.’ • So is technical assistance a ‘systematic destructive force’? • ‘All of these contributions [OECD, World Bank etc) are still in the conventional frame that technical assistance can be helpful - if only it is done right. They do not contemplate the truly radical option - that only a systematic and forced withdrawal of technical assistance will provide the incentives and the room for local capacity to develop.’ Saling 2012 Ltd. 40
- 41. A case study of Ghana Saling 2012 Ltd. 41
- 42. A case study of Ghana – February 2020 • ‘a stable, peaceful and vibrant democracy where elections are vigorously contested’ • Good growth record since early 1990s with prudent economic management • Halved poverty rate from 1991 to 2012 – mainly due to increased agricultural production and human capital development (viz education) • Challenges: ineffective aid programmes, increasing income inequality – especially spatial, youth unemployment, lack of high quality jobs • Ghana identified by DFiD as country where aid policy needs to transition Saling 2012 Ltd. 42
- 43. A case study of Ghana – February 2020 ‘On assuming office in January 2017, President Nana Akufo-Addo announced his vision for a ‘beyond aid’ agenda that would reduce the country’s reliance on official development assistance (ODA) in favour of domestic resource mobilisation and alternative sources of development finance (including private sector investment).’ Saling 2012 Ltd. 43
Editor's Notes
- Raab: ‘We will focus on core HMG priorities for poverty reduction, including getting more girls into school, providing urgent humanitarian support to those who need it most, and tackling global threats like climate change, COVID recovery and other international health priorities. Based on OECD data for 2020, the UK will be the third largest donor within the G7 as a percentage of GNI. Integrated Review: Global Britain in a Competitive Age, the Integrated Review of Security, Defence, Development and Foreign Policy, describes the government’s vision for the UK’s role in the world over the next decade and the action we will take to 2025. But the seven areas only account for £3bn of spend (allowing for £251 for Science & Technology instead of £38m)
- Dambisa Moyo
- “We are an NGO that is dedicated to the service and empowerment of Zanzibari people. Our goal is to improve lives by providing various educational opportunities regardless of age, race, religion, or economic status. We offer training courses in: English Language; Computers and Keyboarding (Typing); Computer Applications & Internet; VETA Level 2 Auto Mechanics. We pursue a holistic educational approach to enhance skills, but also focusing on faith, character and empowerment.”
- Play from 2:10 to about 5:20
- Botswana and the Republic of Korea in the 1960s, Indonesia in the 1970s, Bolivia and Ghana in the late 1980s, and Uganda and Vietnam in the 1990s are all exam- ples of countries that have gone from crisis to rapid devel- opment. On the flip side, foreign aid has also been, at times, an unmitigated failure. While the former Zaire's Mobuto Sese Seko was reportedly amass- ing one of the world's largest personal fortunes (invested, naturally, out- side his own country), decades of large-scale foreign assistance left not a trace of progress. Zaire (now the Democratic Republic of Congo) is just one of several examples where a steady flow of aid ignored, if not encour- aged, incompetence, corruption, and misguided polices. Consider Tanzania, where donors poured a colossal $2 billion into building roads over 20 years. Did the road network improve? No. For lack of mainte- nance, roads often deteriorated faster than they could be built.
- structural improvements, particularly in infrastructure and financial development, stabilising inflation policies, the real exchange rate and financial stability Oil has come later - from 2007 on; impact on GDP from 2011 onwards
- structural improvements, particularly in infrastructure and financial development, stabilising inflation policies, the real exchange rate and financial stability Oil has come later - from 2007 on; impact on GDP from 2011 onwards