Where has the money gone?
p. 53 · Read in the full issue
THE donor dollar is diminishing. It is a global problem in the midst of mounting competing demands a problem that perhaps, many would have liked to ignore.
But no. It is a problem here to stay.
The inherent nature of the cash economy which boils down to inter-dependence makes it impossible to avoid being part of the problem and perhaps finding a solution.
Competing demands such as humani tarian needs confronting countries in the African continent, the break-up of the former Soviet Union, rising unemploy ment in industrialized countries and a host of other considerations have brought home the stark reality that the donor dollar is being stretched to the limit. And as time goes on, the donor dollar is going to be stretched even thinner.
All these made it very difficult for tax-payers in donor countries to keep injecting millions after millions of dollars year after year without some form of accountability. Indeed, gone were the days when donor governments required minimal accountability for every dollar they gave away in foreign aid.
Donors are beginning to think twice about where their money should go, resulting in cutbacks, perhaps for good reasons, in foreign aid by some governments. Recent studies have suggested that although donors have poured literally hundreds of millions of dollars into the South Pacific in the past decade, there has been very little visible economic growth. Where has the money gone?
Just how much was injected into the region, no one really knows. Equally, no one knows what sectors received the bulk in funding and by whom.
But all that is about to change.
In line with a decision by the Forum, the Forum Secretariat’s Economic Development Division is working on a regional strategy aimed at strengthening the capacity of the regional countries identify their priorities, and allowing them to choose how best these priorities might be met.
Such a guideline not only allows for a clearer classification of national and regional programs, thereby reducing duplication by donors, but also ensures only those activities best pursued through regional programs are undertaken.
Discussions at the recent Pacific Island Countries/ Development Partners’ Meeting in Suva earlier this year revolved around the need for a regional stategy.
Subsequent meetings of the Committee on Regional Economic, Issues and Trade (CREIT) and the South Pacific Organisations Co-ordinating Committee (SPOCC) agreed to a broad outline of the major steps involved in developing such a strategy.
Such a strategy will establish how, when and by whom proposals for activities should be developed and implemen ted. This will also provide donors with a basis for supporting regional activities based on the region’s own areas of
emphasis.
The final stamp of approval was given by the 23rd Forum in Honiara this year, reiterating “that regional development was best addressed through the application of a regional strategy for the Forum island countries”.
According to the Honiara Forum, such a strategy would
encourage the optimal use of re sources directed to the areas most in need, but at the same time noted the importance of dialogue and consul tation in the development of the strategy.
Since the Forum last July, work has continued in developing strategy and it is expected to be ready by the end of next year.
Developing this strategy is being done in three parts, beginning with a statement of strategy , developing of a supporting regional database and the establishment of an on-going process for monitoring regional pri orities and determining how they can be best met.
Among other things, the state ment would identify key objectives, programs and activities that can be most effectively delivered through
regional channels. While detailed work has not yet begun, it will involve close consultations with Forum island countries who will enunciate their priorities and classify activities best pursued through regional progress.
All seven regional organisations will also be involved in the process, particularly in defining the activities to be pursued at the regional level.
The database, being developed, will provide a significant input for the proposed regional strategy.
This comprehensive database will allow access to all relevant regional project data to which funds have been formally committed in the seven years to 1991.
This is expected to encourage accountability and develop ment co-ordination, and minimise duplication of effort.
For the first time, it will list, year by year, how much money had come into the region, the sector that has benefitted, the donor(s), the regional organisation which implemented the program and the number(s) of Pacific island countries that benefitted.
This database to be held at the Forum Secretariat will be updated regularly to ensure it is current, inclusive and accurate.
It is envisaged that an initial draft of the regional strategy will be put to the Pacific Island Countries/Development Partners’ Meeting in March next year.
This will form the basis for a working document for the meeting at which the proposed strategy is expected to take centre stage.
At this meeting, emphasis is expected to be placed on obtaining the agreement of Forum island countries on proposed guidelines for identifying sectoral strategies and programs and activities to be implemented at the regional level.
Agreement will also be sought on priorities as well as on
identifying appropriate modalities for implementation in
cluding the role of regional organisations. These will form the framework for the regional strategy.
Having established this, the development partners will then be invited to consult with the region on their regional strategies and proposed programs and activities.
New and traditional donors will also be asked for their commitment to work within the approved regional strategy.
The proposed regional strategy is part of the Forum Secretariat mandate to complement the services provided by national governments of the Forum. □