Word of the Day: Donorbabble

Donorbabble (n.) - Language used by organisations working for or with the donor industry to make their work look clever. A typical example of donorbabble would be: “We will organise a multi-sectoral working group to plan the development of a sector-wide capacity building master plan.” In standard English this roughly means that a big group of people will talk about planning a plan to train people in everything. Donorbabble is used by the donor industry itself, by development consultants and also by poor country governments who "speak the language of the donors".

Sustainable Development for dummies (Part 3 – The way forward)

This is the third of 3 blog posts in which I try to explain very briefly my view of what “Sustainable Development” is, based on my experiences in Rwanda.

In my last post, I concluded:

Development Aid is sustainable when it leaves behind an independent and exponentially growing sector, that continues to grow and respond to future environmental, social and economic challenges.

So how do we create such independent exponential growth? Experience in creating sectors in Europe and Africa have shown that to “jump-start” a sector from the outside, you need to work through 3 development stages:


To illustrate this development, you could look at the development of the German solar energy market from the 1990s up until now. This market started with a small demonstration programme called “100 roofs”, then it the government introduced an even larger “1000 roofs” programme and finally the government introduced a law guaranteeing a fixed price for solar electricity to private and public operators. The solar electricity market took off and is now one of the largest solar energy markets in the world.

This model shows a logical progression, in which each stage prepares for the next one: Pilot projects in phase 1 test technologies and methods that could be used in a larger national programme in phase 2; Larger national programmes in phase 2 sensitise the population and create independent organisations, institutions and companies for phase 3. Finally, the independent sector development on a national level in phase 3 can create the exponential growth required for sustainable development.

A poorly designed development aid project would be one that counter-acts this development. For example, if a country has a growing private textiles industry (phase 3) and a donor brings in free clothes to distribute to the poor (phase 1), then this will damage or even destroy the local clothes and textiles businesses.

Sustainable development is hard to achieve. It is unclear whether such a complicated issue is within the abilities of a large, bureaucratic, inflexible and uncoordinated donor industry. Time will tell: If in the next 50 years we achieve as little development in Africa as we have in the last 50, we will once again have failed.

Sustainable Development for dummies (Part 2 – Market Cycles)

This is the second of 3 blog posts in which I try to explain very briefly my view of what “Sustainable Development” is, based on my experiences in Rwanda.

Whether it is the government, aid agencies or NGOs attempting to develop a country, the final aim is the same: to give an impulse to the development of independent sectors. Energy specialists try to create entire energy sectors, health specialists attempt to create a national health sector, economic development specialists try to create a whole range of vital economic sectors. The development of a new sector generally follows the following 4-stage profile (adapted from a product life cycle):

I. Sector introduction stage

• demand has to be created
• cost high
• volume low
• no/little competition

II. Growth stage

• economies of scale
• volume increases significantly
• public awareness
• competition begins to increase

III. Mature stage

• market is better established
• volume peaks
• increase in competitive offerings
• prices tend to drop
• differentiation, diversification of product or service.

IV. Decline, Stability or new growth stage

• volume stabilises leading to a focus on efficiency rather than growth
• volume declines e.g. if a replacement product/service is introduced
• new growth stage can be triggered if changes in the market or the product create new demand

Development aid simply doesn’t have the resources or the mandate to guide the entire product cycle. For example, how can development aid hope to supply electricity to hundreds of millions of people in Africa?

The aim of development aid is to guide a sector through stage I so that the market and the government can take over an exponentially growing sector.

This is a key point in understanding the role of development aid. Understanding this principle, also allows us to better assess the sustainability of a development aid intervention. If indeed we are successfully guiding a sector through stage I of its development, we would expect to see:

• Exponential growth
• The creation of new independent market actors and institutions

Our new definition of sustainable development aid would then be:

Development Aid is sustainable when it leaves behind an independent and exponentially growing sector that is able to respond to future environmental, social and economic challenges.

This is an ambitious aim. And I would guess that less then 10% of development aid projects succeed in fulfilling this aim. Leaving behind a sector independent enough to continue the work after the end of your project is not easy.

Sustainable Development for dummies (Part 1 – Dynamic societies)

,This is the first of 3 blog posts in which I will try to explain very briefly my view of what “Sustainable Development” is, based on my experiences in Rwanda.

The buzzword of the decade is “Sustainable Development”: development that is environmentally socially and economically sustainable. The days of environmental exploitation, rollercoaster-capitalism and social exclusion need to end if we are to survive. We need to protect the environment, manage our economies better and help the poor.

What does sustainability mean for development aid projects? The answer of many of my colleagues in development would be something like this:

Development Aid is sustainable when the results achieved remain indefinitely, without destroying the environment, becoming unprofitable or causing social problems.

Sounds reasonable. If for example, we train 10 fishermen to fish better, those 10 fishermen continue to fish better after the training project has ended. Ideally, the fishermen pass on the better fishing methods to their children. And also, to ensure that their lake is not over-fished, they create a cooperative to manage fishing rights.

Unfortunately, things are not that simple in reality. The sustainability of the project will be threatened by three types of challenges:

• Maintenance: people will need to be retrained, cooperatives need to be revitalised and new fishing equipment needs to be maintained. An intelligently planned project can generally reduce this problem.
• Changes in the market: If the regional fish price collapses, if fishes migrate or people start eating less fish, the fishermen will have to respond to the changed situation. For many, this will mean finding a new occupation. Whilst the project might teach people to fish better, it doesn’t necessarily teach people how to look for vocational training by themselves.
• Population and demand growth: As the population and the economy grows, so will the needs of the people. People will need to further improve the efficiency of their fishing methods. But people will also need to find other occupations and create new industries. Basically, we don’t need to train fishermen, but micro-businessmen who will fish whilst it is profitable, and who will constantly look for new and better opportunities.
  

Basically, the problem is one of a constantly changing, dynamic and independent society. People will only succeed if they don’t need help from the outside to respond to such developments. There needs to be constant innovation, improvements, entrepreneurship and development for any improvement to be sustainable.

Our re-definition of sustainability could look something like this:

Development aid is sustainable when it leaves behind an independently functioning society and economy is able to develop and respond to future environmental, social and economic challenges.

Pouring concrete

A visit to one of our micro-hydro plant building sites. On days like this I love my job. These are project profit-driven private sector companies with restricted support from us. They are employing dozens of locals, developing spin-off businesses, will provide cheap electricity and are already looking for the next possible power plants. This is sustainable development. No community-owned plant with financial management issues, buraucracy and misguided ideas about the public good.

Financial mess real reason Umuseso had to close down

On the 23, October, 2007, Rwanda Independent Media Group (Rimeg) suspended its publications indefinitely.

The evil Rimeg published the only government-critical newspapers in Rwanda : Umuseso and Newsline. Such anti-government trash papers only reinforce my unliberal views that many of you know me for, and lead me to consider even harsher controls on the press. For example, I fully support a recent government request to all government officials to cease placing advertising in the Umuseso. This is a great way to punish those evil journalists, because government advertising makes up a huge part of newspaper revenues in Rwanda.

The patriotic Focus newspaper today said:

"...Rimeg ceased publishing their newspapers because they felt intimidated by the government... . There are those who were taken in by the claims ... such as some gullible members of the public who only ever read the generally spurious content of Umuseso or Newsline .... And of course there are those who are always ready to believe the Umuseso gentlemen because that is what they prefer to do - an example being international media rights organisations such as Reporters Without Borders.
...
I asked myself, does the [Rimeg reporter's] highly inflated sense of self-importance - no doubt grown from all those years of adulation from international media and human rights groups, diplomats in Kigali and some local readers of his publications - now make him imagine the Head of State is desperate to silence him ... ?" (Quoted from the front page article of today's Focus newspaper.)

Today I add to my personal "Axis of Evil" the following: Reporters Without Borders, international media, human rights groups and Kigali diplomats.

The war we are losing

I live an amazing life. I wake up every morning with the feeling that it actually matters whether I go into work or not. I work with people from very different backgrounds. And I work on the front of an economy and country going through radical changes. Sure, there are days when I would rather stay in bed, but there is a clear underlying feeling that I am not just a small cog in the machinery. And I love living in Africa. Every day I take a few seconds to stand on my terrace and look at the rolling hills of Kigali city. Every driving through the lush green countryside overgrown with banana trees and overrun with children makes me feel like I am in the middle of life. The extreme poverty and shocking equality are always present, but they are also a part of what makes this world more real than the comparatively wealthy comfort of Europe. It is living at the front of the last great battle against poverty, corruption, lies, self-serving arrogance and overpaid consultants. It is also a battle that we are losing because of our inadequacy and our arrogance: Africa is not emerging from poverty. The current style of development assistance destroys local markets and encourages Africans to become more and more dependant on foreign aid handouts.

But this can’t last. The naive hope of the Live8 generation that “more aid is all we need” will slowly fade. The failures of the aid industry are becoming more obvious and more difficult to hide. And it is unfortunate, because aid is not bad per se. For me, there are still brilliant people and great organisations doing amazing work in Africa. The methods of the aid industry simply need to change, and people back in “the developed world” need to begin to understand the change that is needed, in order to start lobbying for it. For example:

• Don’t give anything for free. Used clothes from Germany destroy the local textiles market, free American vegetable oil competes with local farmers, free solar power modules put local traders out of business and free money goes to the corrupt and lazy. When you give things for free, you destroy local businesses and livelihoods.
• Use the private sector, even if it means that projects are more difficult. Use local construction companies, hire local companies to implement projects, create joint ventures and public-private partnership, encourage an entrepreneurial mentality. Find ways to deal with the cheats, con-artists and dubious businessmen that leach off donors.
• Stop using cash flow as a way of measuring aid agencies’ performance. Almost all aid agencies have “spending targets” as a way of measuring their “success” in their country programmes. In the aid industry, if you’re not spending, you’re not working. This encourages reckless spending and bizarre behaviour. At the end of the fiscal year for example, many donors will start spending huge amounts of money on products and consultants with little overall strategy.

So the question is, is it worth continuing with the development aid industry?

Yes. If simply because it is better to try and fail than to give up and leave Africa in poverty indefinitely.

But not at any cost. Africa doesn't need more money. And Africa doesn't need more development initiatives from the developed world. We need to be more intelligent about the way in which we do aid. And maybe the best way to do that, is to take a step back and start again with smaller, but carefully monitored projects.

I realise of course that this might mean that less money reaches Africa. But since at the moment, much of the money poured into Africa has a negative effect on the economy, this may just be a good thing.

Our extended office

This photo was taken at lake Muhazi a couple of months ago. It's about 1 hour's drive from Kigali. If you have to work on a Saturday, do it in style.

Development beyond criticism

A UNDP report says: "... Rwanda has achieved remarkable results in areas such the access to education, gender equality and democratic governance. ...
...the Millennium Development Goals (MDGs) can still be achieved in Rwanda, even within reasonable assumptions about economic growth and development aid. However, achieving this will require us to break with the “business as usual” approach to development assistance, and create a mutually accountable partnership for human development. ...
...The report reveals that soaring inequality is threatening poverty reduction and economic growth. ..."

The Rwandan government's response to this constructive criticism is in a local newspaper article entitled, "Now Finance ministry probes staff over UNDP devt report ‘mistakes’." In which, "Days after he launched the 107-page report dubbed ‘‘Turning Vision 2020 into Reality: From Recovery to Sustainable Human Development’, the Cabinet asked [Minister of Finance and Economic Planning] Musoni to refute it."

In response, UNDP published a 5-page addendum. This addendum apologises for the tone of various sections of the report and the way the figures were represented.

But consider the resident UNDP representative's comment in an earlier press release: "The report constitutes a rigorous and objective piece of research, which takes a hard look at the facts, as they are, without trying to embellish them or tweak them to suite one or the other interest. This independence is key to the credibility of the analytical findings and the value of the report for strategic planning purposes".

I guess UNDP needs to sacrifice a little integrity to be able to continue to operate in a country like Rwanda.

The stone crusher with the pink hat

Rwandan fashion is a fusion of European clothes donations and an African love of bright colours.

These guys are crushing stones that they sell as construction material to one of our on-going micro-hydro projects here.