Development Targets - Building a country requires more than compound-bound diplomats and NGOs
http://www.arabiansupplychain.com/article-8842-flaws-imperfections-in-nation-building-success-formula/#.UnH7qhC3Xvh
On a recent visit to Baghdad and Basra, I had plenty of time to contemplate the oft-discussed question
http://www.arabiansupplychain.com/article-8842-flaws-imperfections-in-nation-building-success-formula/#.UnH7qhC3Xvh
On a recent visit to Baghdad and Basra, I had plenty of time to contemplate the oft-discussed question
of
‘why nations fail or succeed’. Recent years have seen many good books and TED
talks by authors
such
as Niall Fergusson, Jared Diamond and Ian Morris, who make claims of having
identified the success factors in this regard.
The
proposed formulae tend to be variations of a ‘framework’ whereby institutions
shape social environment through
education,
free enterprise and incentive, which allows for success to naturally follow
suit.
I
can’t help but feel that an underlying motivation with these books is to try
and circumvent any suggestion that there are
inherent
qualities of cultures that influence how well they are able to collaborate in
larger contexts. Whether this politically correct
assumption
is correct or not is difficult to give a definitive answer to. But in trying to
avoid unpleasant realities of human
nature
such as these, I think it gets forgotten how difficult it really is to organise
at all any population beyond a certain
size.
Wholesale chaos and violent infighting are the norm rather than the exception.
Europe is not exempt. Recent history includes
wide-scale
terrorism in Northern Ireland and genocide in the Balkans. Instead of asking
why nations fail, isn’t it more
relevant
to ask: “Why don’t all nations actively fail?”
There
are many factors that can explain what underlies a country’s economic success.
Innovation explains prosperity for
many
nations, yet is an insignificant factor for a majority of countries. Singapore
is often used as a prime example of creating
prosperity.
Their main accomplishment has little to do with innovation and everything to do
with creating social stability,
despite
their extreme ethnic and religious diversity. This ability is the most
significant and universal factor predicting a
nation’s
development.
It
is like a teacher first getting the class to sit down, be quiet and pay
attention. There is no one correct way to do this. But
if
a teacher lacks this skill, investing in more textbooks and computers in the
classroom will not compensate for it. When
post-war
nations rebuild, among the first outsiders to arrive, and the last to ever
leave, are the armies of government-funded
advisors
armed with PowerPoint presentations to hold endless workshops on effective
governance and sustainable growth.
These
cushy jobs, complete with compound lifestyles with minimal interaction with the
local population, continue for as
long
as there is no discernible improvement in the countries they are there to help!
In fact, the more dangerous the country
is
perceived to be, the better the perks and hardship grants.
Those
responsible for developing the country appear rewarded better for failure than
for success. These misaligned
interests
also apply to many of the businesses active in, for instance, Iraq. Almost
everything there gets imported, and numerous
layers
of merchants take their cut along the way.
The
business of providing security, from personnel transports to safeguarding
supply chains, often costs more than
the
actual product sold in the first place. And with the difficulties involved for
outsiders to enter the market, this means
decreased
competition and increased margins.
It
is obviously not a case of an active conspiracy to uphold the status quo of
perpetual insecurity in dangerous markets such
as
Iraq, Angola and Nigeria. But where would you ever expect to find any
organisation or employee able, and much less willing,
to
eliminate their jobs and benefits by making themselves obsolete?
Yet
this is exactly what is expected from these bureaucrats who stand in the way of
economic development, which market
forces
would otherwise ensure takes place naturally. An example of this is Rwanda, an
impoverished African nation
that
has rebounded surprisingly fast, and which is among the most stable African
nations, with the strongest growth on
the
continent. In fact, its president has recently spoken out against international
aid funds, and it is now receiving none.
It
is possible that this is, in fact, the best and most effective formula of all
for long-term prosperity.
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