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To: Lazarus_Long who wrote (14039)	6/3/2002 9:16:17 PM
From: Dayuhan	Respond to of 21057

Services such as ....? The consultants that develop the project plans and the contractors that actually do the work. It's important to distinguish between relief aid and development aid. Relief aid is what gets sent to refugees from wars, famines, and other assorted natural and man-made disasters. Duration is generally fairly short, and transfer of goods is frequently involved. Development aid is quite different, and attracts a larger share of the aid pie. Objectives are often a lot fuzzier, which makes it easier to play games with the money. This often involves construction of infrastructure, "institutional strengthening" (in which hugely expensive consultants are sent to help develop plans that the host government has no intention of implementing) and similar projects. These more typically involve services. I once reviewed a massive set of documents prepared by consultants for a particularly absurd project aimed at developing a "growth corridor" in the Ilocos region. Tens of millions were involved. The output was a series of volumes in which highly dubious data and conclusions were presented with great magnificence. I recall debating one particular item - the rather crucial issue of dealing with what was perceived as inefficient financial management by "Local Government Units" - with a consultant. The consultant felt that this could be dealt with by training local managers. My position was that the financial management of these units was not inefficient at all, in fact it was exceedingly efficient, and that training would change nothing. He of course disagreed, pointing out that administration was feudal and delivery of services practically nonexistent. My point was that the efficiency of any system is simply the degree to which it accomplishes its objectives. The mistake the consultants made was in assuming that the objective of the local officials was the same as that of the consultants. Nothing could be further from the truth. The objective of the local officials was simply to remain in power. The average Ilocos mayor at that time had served over 17 years; over half were preceded by relatives. A very efficient system. Needless to say, my views were not incorporated in the final document. Also needless to say, the project never went anywhere. The consultants collected their checks, though....