Developnment 23209 P U T T I N G K N O W L E, G E 0 < K F O R I D E V E L O P M E N T The Aftermath of the WTO PUTTING FOR' T H E WV O R L D B A N K I N S T I T UI T E * V O L U M E T W 0'N U Al B E R O N E * W IN T E R 2 0 0 0 Mihe W6 - P_atti _ Cosrllir_ g~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I I6* 1 JooaeI- 6 166-* Ktcafu Kaikr . *A * ;;~~~~~~~~~~~~~~~~A *00 6.X j *- I . 1~~~ Special Trial Subscription to Development Outreach for readers living in developed countries: Get Two Issues Free in 2000. Readers living in developing countries will continue to receivd the magazine free of charge. - Deceloapment Volume Two, Number One Winter 2000 What Our Readers Think Peace and Development - One Struggle. 2 Two Fronts KofB Annan Development News 3 DEVELOPMENT REPORT: What Lies Ahead in the New Millennium? Globalization: The Choices Before Us 5 FEATURES John Ralston Saul The Two Battles of Seattle 28 GLoba,lization/l i,t 1dO / /I,,[ a /-f Inal't, /01,1 a t/kr'b7t th-t Ca/tlake Dorsati Aladani, WXill Martin, and John Page ~~)/~ I/lafl i~~~~foune. 1J~~H-rethe lb a' ' c p9co/,e qngrateat A F R I C A What's Wrong with Technical Assistance: The African Century? 8 The Case of Ukraine 32 IDapo Olorunyomi Can rlie n jeii,gincitolil /birak I&t -ey/c' ot/f;lile')ogoi'rimcr,i? Vira Nani\ska - Commentary by IThabo MNIbeki hiic'tcoilt oe.' nol take ii aclltatcount pac-lSoe/ln- hill'0217171,7111f) el ,s11ewMllt, 1Yealih,-,'.. E A S T E R N E U RO P E A N D IE tJ R A S I A Radical Reformers lead the Way 13 DEPARTMENTS Andlers Aslund i- ) - haie of/raniiiticin. Calendar of Events 35 - Commentary by, Vaclav Ila\ el Voices from the Field 36 L A T I N A M E R I C A "iluYt-ha,icat th i/tId I/nc' i'e 't>iclopaicnt an,)an for Achieving Soicial and Political Consensus 18 gloIb UI - itcrai-1t0 Danny Leipziger Tbe chal2lenge jo, tto rechiceeecomointc e rlnea hilit v that nio,atl y af/(lectithe picrl Knowledge Resources 38 Commentary by Enrique V. Iglesias A et 1t0c'0/il' taitto fac-i litate then'haring c}f kncic)/r on in> ill ion am) coon7unication tc7hnolocty S O U T H A N D E A S T A S I A Labor, Governance and the Information Age 23 Bookshelf 39 Svwaminathan S. Aivar Il hy I' Ecit A.'ici Leaii'i),i South Aaila bbiehi)? - Commentary Lbv Vinod Thomas What can we do about this? Those who read our special report on the "New Wars, " in the First of all, if "horizontal" Fall 99 issue, may be interested in the following abridged version inequality is indeed a major of a speech given by United Nations Secretary-General Kofi Annan cause of conflict, then obviously at the World Bank on October 19, 1999. . . our policies must seek to reduce it. Yet until very recently, devel- Peace and Development - vices. Most difficult but most important of opment policy tended to ignore this problem. One Struggle. Two Fronts all, we are trying to rebuild relationships - As a result, some policies which were meant According to one estimate, five and a half that precious capital of trust within and to enhance growth have had the unintended million people have died in war during the between communities which is the first consequence of increasing the risk of insta- 1 990s, and many times that number have casualty of every war, and the hardest thing bility and violence. Therefore, we must pay had their lives ruined. The vast majority of to restore. active attention to conflict prevention as we these conflicts occur in the developing world. But how much better it would be if we implement development policies. Clearly, war is not the only cause of could prevent these conflicts from arising in Secondly, if conflict is often caused by poverty, and neither poverty nor inequality by the first place. It is clear that to succeed in different groups having unequal access to themselves cause war. But one thing is indis- preventing wars we need to understand the political power, then it follows that a good putable: development has no worse enemy forces that create them. First no single fac- way to avoid conflict is to encourage democ- than war. Prolonged armed conflicts don't tor can explain all conflicts, nor can any racy. But, while the end result is highly desir- only kill people: they destroy a country's simple nostrum prevent them all. Individual able, the process of democratization can be physical infrastructure, divert scarce circumstances must be addressed, and long highly destabilizing -especially when resources and disrupt economic life. Almost term structural factors must be distin- states introduce "winner-take-all" electoral all today's conf icts are civil wars, in which guished from short term triggering factors. systems without adequate provision for civilian populations are not incidental casual- A recent study has shown that one highly human rights. Therefore, we must encourage ties but direct targets. These wars com- explosive structural factor is "horizontal" "inclusive" democracy, in combination with pletely destroy trust between communities, inequality. Horizontal inequality raises when improved public services, especially security breaking down normal social relations and power and resources are unequally distrib- services. undermining the legitimacy of government. uted between groups that are also differen- Human security, good governance, equi- Much of our work at the United Nations tiated in other ways -for instance by race, table development and respect for human is devoted to coping with the immense suf- religion, or language. Even in the presence rights are interdependent and mutually rein- fering caused by these conflicts, and the of such long-term factors, conflicts need a forcing. If war is the worst enemy of devel- search for ways to settle them peacefully. "trigger." Grievances by groups with uneven opment, healthy and balanced development Success, however, brings with it new tasks access to power can provide a trigger, as is the best form of conflict prevention. and problems related to "post-conflict can greed po'sed to take advantage of the Each country, each province, even each peace-building." From Namibia and El Sal- chaos of war. The fact that political violence village has ts own particular problems, but vador to Kosovo and East Timor, the World occurs more frequently in poor countries, also its own insights and inspiration. I Bank and the United Nations are working has more to do with failures of governance, believe the single most valuable quality, for side by side, along with local government and particularly with failure to redress "hori- diplomats and development economists officials, NGOs and citizens' groups, to help zontal" inequalities, than with poverty as alike, is the ability to listen. provide emergency relief, demobilize com- such. A well-governed poor country can batants, clear mines, organize elections, avoid conflict. However, economic stagna- KofiAnnan encourage reconciliation, build impartial tion or decline do make conflict more likely. Secretary- General, The 7Jnited Nativn,i police forces, and re-establish basic ser- 2 W O R L L) B A N K I N S T I TLjT7 1. Development News News highlights on development issues from around the world. UN and World Bank Join Gates World Bank Website Pulls in to Announce Vaccine Initiative. Kids Through 'EDU-TAINMENT' A group of business leaders, including Ask any development education specialist the y Microsoft chairman Bill Gates, has joined best way to get sustainable development on forces with the UN and the World Bank to people's agendas and they'll say by making it launch a campaign aimed at providing lifesav- personal and relevant. That's one lesson the ing vacc nes to children in underdeveloped World Bank Institute already seemed to krow nations. The central pillar of the vaccine initia- when it created the "Millennium Challenge" in tive, announced in Davos on the closing day of October 1999, a fun, interactive development the Word Economic Forum annual meeting, is a website aimed at raising awareness of chil- $750 million donation from the Bill and dren-and their parents-thrDughout the Melinda Gates Foundation. "The effort is to get world. The site is currently part of the Bank's drug companies and governments involved in sustainable development and poverty reduc- saving three million ives a year,' Gates is tion display at EPCOT Center in Orlando, Z', quoted as saying. "These are vaccines taken Florida. It was created specifically for the for granted in developed countries, for diseases exhibit, where people are expected to spend World Bank Warns Americas like measles, and just by getting these vaccines only two to four minutes on site. Poverty Could Threaten distributed, we can save three million children Growth a year. Businesses, governments, and philan- Asia Firms are Indebted to James Wolfensohn, president of the World thropists should work together to provide the New Financing Bank, has painted a grim picture of poverty in life-saving vaccines that we take for granted For an idea of how some Asian companies are Latin America, saying the region was no better around the world." The joint approach by the changing their banking ways, consider Siam off than it was more than two decades ago public and private sectors is called the Global City Cement PCL. Asia's financial crisis left this despite far-reaching economic reforms. He Alliance for Vaccines and Immunization (GAVI). Thai cement manufacturer struggling to dig urged Latin Americans to address the issue by itself out from under an avalanche of debt, enlisting the support of the Catholic Church, WTO Should Work with IMF, owed to dozens of banks. These days, however, non-governmental organizations and trade World Bank Siam City Cement is contemplating a future unions, warning that social instability could kill Fresh from the rarefied air of the World Eco- free of bank loans. The company has seen a long-term growth. nomic Forum in Davos, Switzerland, Canadian dramatic overhau in its ownership, its business Meanwhile, finance ministers from across Minister for International Trade Pierre S. Petti- oporations and its finances. Instead of borrow- the Americas recently discussed financial grew called on the WTO to embrace more ing heavily from banks, it has used more bonds crises, debt, and integration at a daylong meet- closely international organizations focused on and shares in its refinancing. In the process, ing in Cancun marked by warnings that poverty developing economies in an effort to prevent Siam City Cement has scaled back the number and corruption threatened economic growth. the sort of differences which doomed the of banks it uses, simplifying its finances It's a Battling poverty "is a daunting challenge, launch of a fresh round of trade negotiations in concrete sign of how Asian companies slowly because at the base of economic growth and at Seattle. but surely are changing, diversifying their the base of our development must be social Pettigrew made it clear that he thought the sources of financing. Besides giving a jump- peace, social Justice," said World Bank Presi- trade round had been compromised not by the start to the region's long-languishing bond mar- dent James Wolfensohn, adding that "social unusual collection of demonstrators who kets, this trend promises to make companies instability will kill growth." descended upon Seattle, but by fundamental less vulnerable to banking and currency shocks differences between the major negotiators at such as those that hit the region two years ago. the meeting. He said to prevent those same dif- ferences from intensifying, the WTO should work with organizations like the International Visit Us on the W eb. Monetary Fund and the World Bank to "harMD- Development OUTREACH is now available online at nize' policies. www.worldbank.org/devoutreach 1) k \ E L O ' Al 1 N T O U T R E A C H e S 1' R I N (G 2 ) 3 Repo~rt: -01~ ~ ~ ~ ~~~~6 At the dawn of the new millennium, 4.8 billion people lived in the developing world. Of these, 1.2 billion lived below the poverty line, existing on $1 a day. Yet celebrations of the mille- nium focused largely on the progress made by Western nations over the past 1,000 years. Looking to the benefits of the information age, the developed world is basking in the glow of economic health and the bene- fits of what seems to be an unstoppable globalization process. Is the optimism of the West shared by the develop- ing world? The answer is a guarded yes. Yet many of the world's leaders are acknowledging the need for new social structures to balance out the growing divide between the world's rising elite and the majority of have nots-those disconnected, lacking education, and living under corrupt governments. In the following articles, experts and leaders from across the globe give us their opinions on the road that lies ahead. 4 W O R L, I) H A N K I N S T I T U T E THE CHOICES BEFORE US Perhaps it has always been the case, but there seems BY JOHN RALSTON SAUL to be an inherent tendency in contemporary social and economic theory to mistake fashion for truth and trends for inevitabilities. Ipoint this out as a possible kev to the curious form Wkhat I am talking about is one of the most important taken by1 the glohali'zation revolution of the last quarter contemporary philosophical problemrs, in particular f'or century. M'l v own guess - and w,hat more couldI anyv societies -which claim to be democracies. Trhe bases of sesble peron call a view into the future - is that CUr- dlemocracy, could be summarized in this wax': the exis rent trends are not sustainable. In fact, the more the acai- tenice of real choices; a belief that the foundiation of soci- d emic, administrative and corporate leaders treat these etv's intelligence lies in the body of the citizenrv, not in trends as inevitable, the more likelv they, are to provoke its elite, in other w,ords tha-t the legitimacy of the societ~y one of those reversals in dilrection of which all human his- lies in the citizenrv; and a beliel' that through debate tory, is so full. Ifv we Find w,alls going back up betw~een these citizens wxill make choices among the many com- peoples and the current technological tools of' globaliza- plexities of realityv. tion turning themselves impetuously, into the tools of' par- tition - after all, machinery has the truth you give it - Is the future inevitable? th'is will be entirel'y the responsibility of those wNho have And vet the last quarter centuryN and the next have most ref'used a sensible debate over the direction our societies often been presented by our public and private sector are to take. leadership as a long continuum of inevitabilities. Technol- The question of debate is absolutely central to what ogy is presented as a revolution wvhich shapes society.% 'vil happen next. One of the cu-riosities of the globaliza- The idea that societv might have a sav in th-at shape i tion rev'olution has been an accompanying inability, to generally1 presentedl as ludditismn, \Vh-at's mnore, the sw,eep engage in constructive debate w,ithout obliging the par- into globalization is presented as a v'ictorY f'or internation- ticipants to chose sides, Hav-ing to choose sides as a pre- alism ovler narrow01 nationalism (as represented bY the liminarv to dealing with comTplex questions is a sign that nation-state) and a parallel victory tlor the free market, debate is being shut do-wn, The simplistic scenarios of The problem with this -,hole approach is that it has lit- 'for and against' lead to the fantasies of a black and w,hite tIe internal consistenc~y. And the specific events of' the world, real wvorld tend to contradict tl'e general theorv. This is not choice, It is ielg.The implication that TIxv,o small examples of' the technological leadership someone possesses clear truth is that the others are wal- theorv' spring to mind. We were assured bv the dominant low,ing in falsehood or self'-delusion, Voices wi,,thin our society some fWftccn years ago that new I'l\ EIF I L 1 ,I l N ' (I L I - %CI1[ \I JF~ I: 5 technology would lead to a service economy. Instead, the away from competition to monopoly and provokes fear- precise opposite occurred. The last fifteen years have seen filled reactions from the citizenry. The essential question I an important shrinkage in real services to the citizenry. would ask today is: why wouldn't the same happen this By real services I mean those which individuals want time? Are there not already signs that this is happening? and/or need. Schooling and health care would be two pri- Which leads me to the essential contradiction in cur- mary examples. And throughout the private sector, the rent models. The glory of Western democracies is indeed simple ability to speak to actual humans in order to their democracy, however flawed it may be. Democracy is receive real advice has slipped away. None of this has not the product of the market place. Rather, democracy been the inevitable result either of technological break- creates the conditions which render possible long-term throughs or of market place demands. Rather, it has been market place prosperity. This can be seen throughout the the outcome of a particuilar administrative approach history of the West. towards the use of technology. But democracy is a concrete phenomenon. It is tied Equally, new means of communication such as the not to great abstract, romantic theories, but to the partici- Internet were pr-esenited as tools of open communicationi pation of citizens withina their societies. If you think of it around the world. Instead we are now approximately 30 that way, then the idea that globalization is a victory for percent of the way down a road which is reducing these internationalism over nationalism, as represented by the tools of communication to the parameters of commercial nation-state, suddenly presents a fundamental problem. activity on the one hand and Those nation-states are the concrete legally regulated activity on the V ERY LITTLE HAS structures which contain democracy. other. The real concept of citizen-based BEEN DONE TO BALANCE legitimacyv was developed and is Truth vs. trend N E W EGO NO M I based within those states. What's I point out these two examples more, the ugliest aspects of nine- only as a teaser to the essential ST RU CT U RE S W IT H N E W teenth century nationalism have contradiction in our current SOC I AL STRUCTU RES. finally been more or less evacuated truths and trends. from those states. First there is the question of So the false debate which sur- the market place. The der-egulation and globalization wlhiclh roun-ds us today is: are you lor globalization or against? But were supposed to lead to a return to more active capitalism the core of the real question is: are you for citizen based and competition are leading instead to an increasing number legitimacy and real choice? Of national and international monopolies and oligopolies. Interestingly enough, this is precisely what happened in the Citizens wvill choose late nineteenth and early twentieth century when what If the current model of globalization denies the central could be called the second industrial revolution swept onto importance of that legitimacy and favors instead great the international stage. The result was, on the negative side, romantic abstractions about inevitable trends, well then, a rise of frightened nationalism and, on the positive side, the the probability is that citizens will increasingly look for rise of democratic-based regulations. The fear which that ways to alter the trend. If those in positions of authority uncontrolled wave incited was one of the central causes of do not focus on this reality, the citizens will gradually slip the twentieth century's astonishing levels of violence. As for into a more outright opposition. And political movements the regulations, they led to a solidification of healthy market will adjust to that opposition or be replaced. That is what place competition and thus to wealth in the 'Western democ- history tells us. racies. The resulting middle class prosperity has become the The key to this rather delicate situation is that for half most obvious sign of success for the Western mode]. a century, we have worked hard at globa]izing economic What I am saying is that we already know what hap- regulations. And much of this has been positive. But we pens when we leave the market to regulate itself. It slips have done almost nothing to globalize social and political 6 WORLI) RANK INII L) O V E R V I E W regulations through enforceable treaties negotiated by the three are classic characteristics of management theory; representatives of citizens organized at the nation state that is, of bureaucratic theory. They have nothing to do level. In other words, very little has been done to balance with the needs of the market place. new economic structures with new social structures. My final guess is that the inappropriateness of these There are those who worry that such a balance would spreading monopolies is already provoking a slow political merely be a Western maneuver to remove a competitive reaction. Discussions around such tables as the G8 and advantage from developing economies. If you see these the OECD are already focussing on the problems this situations in absolutes and inevitabilities that might well trend is creating for democracies, for governments in gen- be the case. But in a real world there are many eral and, very specifically, for tax policy. After all, the approaches which could take into account the needs of all social, cultural and political services which citizens have types of economies. After all, on a slightly different plane, given themselves over the last hundred years must be that is how the European Economic Community was able financed and our slippage into a world of monopolies and first to include Spain and Portugal and now is reaching oligopolies is threatening that ability. out to even more fragile societies. WXhat's more, market place economics has always been In any case, not to balance social agreements with eco- about fashion. These fashions usually last ten to fifteen nomic agreements is to sap the power of citizens by remov- years. The obvious disadvantages of a market place domi- ing their power of choice. And it is to encourage a nated by gigantic icebergs floating aimnlessly about, crash- dangerous imbalance within our societies between self-inter- ing into this and that, leaving damaged infrastructures est and the public good. Let me repeat. We are in a situa- behind as they float on, are becoming more obvious every tion not so very different from that of 1900. As then, now day. That means economic fashions will begin to change we are faced by the resulting dangers and opportunities. within a few years. Let me come back to two essential points. There is A final contradiction nothing wrong with globalization. However, in the real There is a final internal contradiction in current fashions world, it is not an absolute truth. It is a theory which can which will illustrate our situation. NWe are constantly told take on many forms. The best way to provoke a reversal that since the world is big and globalization is about the ending in ugly nationalism and negative protectionism is to world, therefore it is normal, even natural, that corporations pretend that internationalism can only exist in a predeter- v.ill have to grow through constant mergers and acquisitions. mined and inevitable form. On the other hand, the best But the exact opposite makes far more sense. Small way to navigate the complicated period ahead is to come markets have difficulty supporting multifaceted competi- back to the core force of democracy: a system in which tion. They often require one or two large dominant play- legitilnacy lies with the citizenry; in whichi thlere is a con- ers. Large markets on the other hand free the stant belief in the possibility of real choices; in which those corporations from the heavy, costly infrastructure of choices are dealt with through real debate and a real belief unnecessary size. Indeed, if there is any lesson inherent in in the intelligence of the citizenry. From that basis it is new technology, it is that the need for the large heavy possible to make sensible use of an ongoing technological international infrastructure is gone. A lighter, more flexi- revolution. And it is possible to give the market place the ble international approach is not only possible, it is proba- long-term stability and competition it needs to serve itself bly more competitive. and the societies out of which it grows. U What then drives the trend towards ever larger corpo- rations and ever weaker competition? One of the central .JIIlh Ral'ttol, NSaIl &. the anlhn'r 0'e1er/' h17k. IIi. gram/n factors is that the core of the larger transnationals is not inr7117aet an po//liL a) cenad th,711a7njht in nln71ly .71enre i.'1 capitalist. They are essentially bureaucratic or techno- been ei,/aNirh7ed thnl,niqi the hi/n.'phk! lrilotvY. ,i,are cratic structures run by administrators who have no real Bat,.a1r-iw: Tbe lh9t,t'r.' hip if Rtea.p z',,iln Ibe 1IL'zIi (/9'), The7 commitment to, or love for what could be called capitalism )lerl Ls ;npompuluin7: A 1)iet,1,11a 't0'A;77r.c.i'V Llmninn .Sen,ie or risk or competition. Size, dominlationi, conitrol - all (1991), an) TbK ljt- ' 'n' ' l'u (199i). D) E \E 1. 0 P MN E N T ILTR E A C' \I W I N I F R 2 n CQ Cl 7 A~ S THE AF RICAN |s1 CENTURY? AFRICA ENTERED THE NEW MILLENNIUM AS AN UJN DERDOEIG: ,\\ IC ii,Io[A--01' I HE I \\-0 WOk()IS I' C R\l S AGAINST MANIKINI) IN\1X11) N A ro ()lR,I) I IS I T RY 'II S LAVE T'T RADE ANDL) COLONIALISM. AS TI I II" I IOUSANI-Y.IAR The wxriter and Nobel prize winner- Wole Sovinka seemedl to be responding to this tired chcaptcr ol exetuses when, STl'RI'Tcl' I CAME, 'T'O AN `I1NI) LAST YEA\ R, TH-I" bemoaning the Atrican condition at his 50th birth(lay PRIMORD)IAL. HOME OF MAN STILL L-AY IN anniversary in 1984, he wrote off his generation of Af'rican elite. Sovinka, in wlhat would become a tainous RUINS. 11 JULSTIFICATION IOR AFRICA'S catch phrase, said "mine has been a wasted generation" an(I callecd for a rebellion oftVounger, idealistic, and vision- :N [)1 DE1LO\'I- XENC) I'A11. LI ES IN E1'I'ERNAI. arv men and women of the continent to break what he characterized as a repetitive cycle of hopelessness and REFl1E REINCES, TILE CI IAI.I.INGE,I FOR THF despair. )Debates on and proposals about how the continelit can remake its history to the advantage of a better fLuture are l.N(G 'I'liiS \I.L. CONlINUE TO IMIR \DI[)l not new, yet there has seldorn been a shortage of theories about the way forward. For a continent so endowe(d in S uFFICIE NI RATIONAI.I '\TIO N FIZ ORT IlI nattural and human resources but curiouslv unable to c-e- ate the synergy needed to reverse the misfortunes of' his- CONTI N ENT'S PROSTR\ATFf STATLE. 8 ' ' ] I \ III I lt ........... ~~~~~~~~~~A F R I C A ~... .... .... ... Yet the important chballenzge /efore Afrifca / '* Q - ] | to)ay its url gelzt olne: how7', patz raphrs iq the lzte economn idt Aifancur 0/szon, to locate the iliilsony pro qrestJ of the continent in tlhe con- text (i a fa7ilure 'in the of govf'ernan tce. tory, the dlebates about the iuture often range from the when wve review, the balance sheet it is clear that the rejec- absurd to the theatrical. tion of democracv and the wkanton abuse ot'human rights Thus the politician Sam !\lbakwNe, tears in his eyes, have been the most grievous strategic errors that have openly called for the return of' the colonial administration brought us to our current situation. The Indian economist to manage the aftairs of the continent. Far afield in Amartva Sen argues wvith great distinction that developing Europe, the celebrated and famed Liberian athlete and andI strengthening democrac,y are probably the most hero, George WN'eah, sought a newv mandate that will essential components of' the developmental process. Howv empower the IJnited Nations to take over the manage- is this so'? By enriching individual lives throuigh the ment and administration of' the continent. Yet the impor- expansion of political and civic freedom; by providing tant challenge before Africa today is an urgent one: how, incentives to leaders to be accountable to popular needs; paraphrasing the late econiomiiist, MNlancur- Olson, tc) locate anid by helpinig for-mii xalues anid priorities thr-ouglh open the illusorv progress of' the continent in the context of a dialogue and debates. failure in the management of' governance. Postcolonial Africa has wvitnessed distressing statistics Failed leadership on dictatorship and authoritarian regimes. For a short Decades of postcolonial dictatorship in Nigeria, Sudan, wvhile this wave wvas justified as a means of' corralling Congo [former Zaire], Cameroon, Chad, and Equatorial forces for development. Yet todlay, four decades removed, Guinea, to mention only a f'ew instances, offer the most II ~kI ~. ~ II -\ 'C I ~N II )LF R I~'A~ II I %Nr INr] 1ii]~ , ( " 9 Building the New African Intelligentsia by Thabo Mbeki It is of enormous importance that we do not fail to provide ar education appropriate to the long-term needs of our continent and to equip us fully to meet the many challenges of the twenty-first century. If the next century is going to be characterized as a truly African century, the century of durable peace and sustained development in Africa, then the success of this project is dependent on the success of our education systems. For nowhere in the world has sustained development been attained without a wel - functioning system of education, without universal and sound primary education, without an effective higher education and research sector, without equality of educational opportunity. The enormity of the task at hand is magnified when we cons der the legacy of colonial education, the ong-term effects of the domination of the African peop es both through brute force and thought control, through divorc ng the African child from his or her own experiences and environment, through systematic processes of alienation and also assimilation, in this way bringing about what Ngugi aptly described as "the domination of the mental universe of the colonized." It is in this historicai context that intra-African educational institutions and agencies, find themselves today and in which they must collectively effect change. In this way, through the strengthening of relations between different countries in the area of education, we are cementing African unity and becoming actively engaged as educators in a continental offensive for African social, economic and cultural development. Our present phase of development requires the growth and consolidation of a class of intel ectuals whose fundamental task must be in the economic and social areas. For, if we are to build entrepreneurs in Africa, then at the same time we must also build the inelligentsia. An integrated approach to development tells us that those who have technica skills and expertise must be complemented with those who are experts in economics, in arts and culture, in the sciences, and those who are directly involved in economic production. Beyond this, there must be an understanding of the need to expand our economies through entrepreneurship, through creating conbitions favorab e for job creation. Thus, the co-operation of the nation states and of government education departments are also required, for the overal basis on which we must move forward together as governments, as entrepreneurs, as academics, must be through partnerships based on our shared vision and goals for a better life for all and not as competitors for wealth, monopoly or power. Thabo Mbeki is president of South Africa Excerpted from an address to the Biennial Meeting of the Association for the Development of Education in Africa f12,/6/99). 1 0 W ) R 1. 1) I1 A N K I N S I I' L ' 1. A F RI CA dramatic and shameful cases of how authoritarian struc- Chiluba, the host country leader. 'Yet In Zambia AIDS is tures can ruin otherw,ise prosperous societies, ravaging the future in many more ways. B3y year end, Recent Nigerian and Congolese [Zaire] history offers about 2,000 teachers wildie of the disease, up from 640 splendid illustrations of the pastime of acquiring the state in 1996. In Kenya at least 30 teachers die of the disease through a ferocious struggle to establish predatory ruile. monthly, whkile in Namibia an estimated 6,500O teachers Thus as Nlobutu in Zaire vacuumed his country's wealth, willI die annually by 2010. so did his Nigerian double, Sani Abacha, who, according There are other problems. At the dlawn of a new mil- to the country's media, stole some $4.5 billion before he lennium Africa has been the theater of some of the x,vorld 's died. The list I's endless of men w,,ho left their countries in worst ethno-national and religious conflicts. Is develop- desperate economic and social conditions. As Ainariya iinent possible in ani atmiospherie 0f peace anid security? Sen remarked, the connection betxveen political and civil Even as the train of democracy moves from Bamako to rights on the one hand and economic security, on the other the Cape, the flaxved principle that coercive force is the hand provided under democracy would have made such only legitimate means of acquiring and maintaining power situations impossible. It would also have made other situa- is badly in need of a new formulation. tions like the recent famine in Sudan and Ethiopia From Congo through Burundi, to Sierra Leone, Sudan unlikely because citizens of the respective countries, and the Horn of Africa, the fiaht to establish ethnic ciii- through the exercise of their rights, would have zenship on the continent is at its worst. Txvn hundired demanded appropriate public actions. thousand were killed last year alone in a decade that saw Following decades of authoritarian rule and corrup- 2 million people perish and 6 million disabled by civil wvan tion, many African leaders have led their countries into a debilitating debt trap Ugandan AIDS Which today stands at about $360 billion, orphans writs a and which is undoubtedly, a huge obstacle thank you note to to gender and soci'al j'ustice on the conti- donors providing nent. Yet two critical problems pose a support to their much more severe threat to the future of - orphanage. the continent-AIDS and the brain drain. AIDS and the brain drain, Twentytwo mllion Afri'cans are alreadv infected bv the HIV virus; 5.6 millio of A these last year alone when about 2 million died of AIDS. By the end of this ylear AIDS wvill orph-an 10 million kids under the age of 15. This is a tragedy, the dimension of xvhich ought to fire the imagination of the African political elite to more dramatic action plans than we are currently witnessinig. Iloxvcver, in Sep- tember last year at the International AIDS conference in Lusaka, Zambia,& there xvas no single African head of state in attendance -not even President-- 1)IPV I L IPi\F N I 0 L IkE\ AC H I N TT 2 11 In just one year, 1996, 8 million Africans wvere in flight for revolution in agriculture are central to maintaining the dear life. modest 5 percent growth most of Africa enjoys today, and Should an age of globalization, and digital civilization to reverse the current degradation of' 72 percent of crop- with all its benefits of expanding sensibilities not redefine land and 31 percent of pasture that is today responsible for such basic experiences like citizenship? The extreme the 35 percent of African citizens suffering from malnour- metaphors of Rwvanda and Liberia suggest that until we ishment. Related to this will he the need for responsible underscore this concept with the reality of equality and population control and environmentally friendly policies. democracy this expectation will remain a mirage. Thc fact that there are more phone lines in the borough "Democracy's guiding principle is that of citizenship" the of Manhattan than in all of Sub-Saharan Africa under- scholars Guillermo O'D)onnell and Phillipe Schmitter scores the urgency of developing crucial technologies that explain in their remarkable study of the transition from support social transformation, knowledge creation and authoritarian rule. tlevelopment. A practical program to reverse Africa's recent losses as a result of brain drain will have to be Africa's millennium laced with a policy of wider intellectual freedom and an Will this then be Africa's millennium? Bleak as the out- appreciable but realistic investment in education, telecom- look has been, the last few decades have witnessed some munication, biotechnology and nanotechnology-the encouraging indices that offer hope for a possible renais- triple technologies of growth, progress and development sance. The ultimate triumph of democracy in South Africa in the new millennium. (1994), Nigeria (1999) and a dozen other countries sug- In the past, Africa's misfortune has been entwinedc with gests that the sun is terminally setting for authoritarian military dictatorships. Without a program that will fully rule, bumps on the road like the coup in Ivory Coast and professionalize the military, build a credible criminal jus- Comoro not withstanding. To be complete, however, an tice system, and resurrect civil society, the old hiccups expansion in political freedom must be complemented will continue to bother the continent and divert its course. with a vigorous sense of gender justice. Above all, the newv slogans and drive towards poverty Certainly, too, the ratification of the African Conven- alleviation now making the rounds on the continent will tion on Human and Peoples Right in 1992 deserves be a failed starter. Still, the greatest challenge yet will be acknowledgment as perhaps the most important develop- how to guarantee press freedlom as an integral program of tnent in the continent after the independence wave of the transparency, accourntabilbty and platform for generating sixties. Under the spirit of that convention, the former debates and dialogue to build consensus and coalition. Chadian president, Hissen Habre, was indicted in early For all these to be realistic goals, however, the moral February of last year for human rights abuses and torture, for Africa's development cannot escape a full assimilation committed while he was in government more than a of Mancur Olson's dictum: seeking the language and the decade ago. If this act in itself is a red flag to leaders who logic to manage governance. U maintain their hold on power through torture of their citi- zens, it is a rare moment of political victory for the Dupe OIaehmVynni edited The ik ma/zm Ia Loupe, NAyena, process of liberalization on the continent. intitl 1996. The l`'orld Pree,, Re(i',ei' natned hi71n nlnter/na/inna71l7 Progress in the political and human rights sector, Ad/t'to uof the Year i1n 1995, antid i/n 1996 be uia.i recixp'ent n/lhe important as it is, must come in association with other PEA7 ('enter [/T7e.tJ Pre.n Ereln at as'ard. le i;d cur-entldy a developments for Africa to be a key player in the new mil- .uefzin'r /lnlo' at The PaInt'l'tit in 1J4teh'iqtnuD C'. lennium. Policies that support economic prosperity and Visit: www.worldbank-org/afr 12 \\ 0 , , 1) FI A N K I N ' I I I I I 1 EA STE RN E UR O PE & E U RAS IA RADICAL REFORN4ERS L E AD T HE WAY BY ANDERS ASLUND ^,, W..01101w WV AGREAT TRANSFORMATION OF THE FORMER SOVIET BLOC HAS OCCURRED IN THE LAST DECADE. IN A FEW REGARDS, THE TPANSFORMATION HAS BROUGHT ABOUT SIMILAR RESULTS. THE NOTORIOUS SHORT.AGES HAVE BY AND LARGE DISAPPEARED. THE HIGHi INFLATION OF THE EARL-Y TRANSITION HAS ABATED. THE PRODUCTION OF UNSALABLE GOODS HAS STOPPED. AND THE PREVIOUS OVER-INDUSTRIALIZATION HAS GIVEN WAY TO A LARGE SERVICE SECTOR. FOREIGN TRADE HAS BEEN RE-DIRECTED FROM THE COMMUNIST WORLD TOWARD THE WEST. 11j k Ex 11( F - hNI1 I1 , lIIlGIl).1 More strliking, however, is how great the differences have wvas part of Poland until 1939, and it never belonged to become among the post-communist states. In terms of the Russian Empire. Their industrial structures are also economic system and growth, they can be roughly divided quite similar. The difference is that Poland pursued radi- into three groups. About half of' the countries seem to cal economic reform from the outset, while Ukraine opted have become reasonable market economies and they have for slow reform. Today, we see the difference. accomplished groxvth of at least 4 to 5 percent in some Many such comparisons can be made. Today, successes recent years. I'hese winners are Central Europe, the and failures are often taken for granted, but neither was Baltics, Slovenia, Croatia and Albania, but also Armenia, inevitable. All countries that opted for radical reform have Georgia and Kyrgyzstan. accomplished something, while those that did not have The second group consists of countries that have largely failed. The initial reform strategy has been of fun- undertaken substantial market economic reforms but have damental and lasting importance. Countries have ended failed to achieve significant growth up either in a virtuous circle or in or have faced serious growth rever- a vicious circle. sals because of financial crises. They are Bulgaria, Romania, Democracy is the key factor Macedonia, Russia, Ukraine, All countries that opted An important observation is that Molclova and Kazakhstan. democracy and market reform Arguably, these are the most inter- for radical reform have have gone hand in hand. All the esting countries today, because successful countries are reason- their fate does not seem determined accomplished something, ably democratic, the intermediary as yet, and they are important group is partially free by the Free- countries. while those that did not dom House standard, while all the Finally, a third group of coun- countries that have not really tries has opted out of market eco- have largely failed. reformed are outright dictator- nomic reform. The xvorst examples ships. Dictatorship means no mar- are Yugoslavia, Belarus, Turlk- ket reform, and poor democracy menistan and Uzbekistan, but so means poor reform. far Azerbaijan and Tajikistan also The virtuous circle means that pertain to this group. At least in the first four, transition is democracy has wvon. A market economy caters best to the over in the sense that it is not going further. Nor is it interest of all, generating economic growth that is more or likely to do so until their current rulers have been ousted. less equally distributed. The successful reformers have At first sight, the geographical pattern seems strong, much more equal income distribution than the partial but Central Asia and the former Yugoslavia are spread reformers. over the three groups. Countries with good preconditions Political stability and peace have been no benefit. The perform better, but they do so to a large extent because of most unstable governments have been in Poland, the three better policies. Baltic states-all successful reformers-and in the less The most illustrative contrast is perhaps between the successful Bulgaria. Nor has social peace been an advan- two neighbors Poland and Ukraine. In terms of growth, tage. Apart from the Russian reformers, no reformer faced their differences are enormous. Poland has grown eco- such public acrimony as Leszek Balcerowicz did in nomicallv by 30 percent since 1989, while Ukraine has not Poland. Arguably, twvo successful reform countries, recorded one single year of growth and its GDP is offi- Poland and Hungary have the best and most contentious cially down by 60 percent. Culturally, they are close and media, together wvith Russia. their languages are confusingly similar. Western Ukraine 14 \W ( R 1< I. 1) NA N IK I N S I I I I I 1 EAST ER N E UR O PE & E UR AS IA Successful reform is no cakewalk. It is not based on a social consensus among the elites but on democracy. The maln enemies of successful market economic reform have naturally been those wvho had the most to lose from a tree Looking back after almost ten years and market. Contrary to what socialists want to think, the inquiring whether our early expectations enemies were not the ordinarv people, but the privileged have been fulfilled, we must admit they have. economic elite -state enterprise managers and various officials. They have persistently warned that the workers Naturally they have not been fulfilled to such an may rise against radical market reforms, but the w,vorkers extent and as quickly as perhaps many a naive and have staved quiet. enthusiastic soul would have imagined at first, but The real struggle of the transition has been between basically they have been fulfilled. The last important evi- reformers and this rent-seeking elite. Where ordinary dence of the factthatthe Westtakes ourfreedom seriously and people have understood this and been free, reform has really does not respect anymore the old and artificial division of won. Where dictatorship has prevailed, the rent-seeking the spheres of influence is undoubtedly the recent enlargement elite has been victorious. The main threat to the transition of the North-Atlantic Alliance by the three new states, former wvas that the state would be usurped by a corrupt rent- seeking elite, as happened most conspicuously in members of the Warsaw Pact. Yugoslavia* Belarus, Turkmenistan and Uzbekistan. The question I have been concerned with is whether we have Today, many blame privatization for the failures of also given to the West what we could and in fact should have transition, but it has not been the decisive factor. The suc- given in return for the assistance we have received. I confess I cessful reformers have largely privatized more than the am not sure. unsuccessful, and there privatization has definitely con- What could and should we have given to the rich and devel- tributed to growth. Since the beneficiaries of little reform oped democracies? were already in positions of' economic power, they did not As I was always deeply convinced, it should have been expla- need privatization. The public propertv was in effect nation as well as practical application of the unrepeatable experi- theirs. Any privatization to anvbodv else has diluted their ence we have gained living in the totalitarian society and also the ownership. Their big money, was madle on government subsidies, subsidized credits and privileged access to arb' resistance to it. Experience which could be useful for all if it were trage betveen state-controlled prices and free prices, well processed and explained. Experience that should be consid- wNhich they extracted through management theft. ered seriously, not only or mainly in order to prevent the return of totalitarian system, but for reasons that are much deeper, for rea- The grip of the "oligarchs" must end sons more general from civilization's point of view. In the coming decade, the successful reformers are likely This experience taught us that society must always pay or at to forge ahead, particularly the candidate members to the least be ready to pay for freedom, sovereignty, human rights and European Union, though a couple of xveak states might Eaceosetbacks. Among theughar anti-rleofo dicktatorship, prosperity. That nothing comes free of charge and good things face setbacks. Among the hard anti-reform dictatorships, w~ve may forget about market reform until these dictators require sometimes great sacrifices. And that the ultimate value of are ousted. The big question is what will happen to the such sacrifices rests in them and not in how certainly and quickly partial-reformed countries, notably Russia and Ukraine. they pay off. Contrarv to the dominant current XVestern mood, there is hope. After all, both countries are democracies, though VaclavHavel President of the Czech Republic not very liberal ones, and democracy is the key to a solu- tion. Moreover, Communist parties have failed to win This is an excerpt from a speech delivered on the occasion of the 10th anniversary of Gazeta Wyborcza and the award of the "First Decade Prize' (5/15/1999). 1< 1 , 1: (1 1P . N I 1 ' 1I I 1. .\ C 11 XX I N I I It ' 0 II I -~ S _~~~~~~ I | X ~~~~PHILIPS electionis in either- countryN, andI their tide has evidently Striking, however, is how passed. Basic m-arket economies are In place. The key problem is how to defeat or dliscipline the dominant "oli great the differences have garchs," who have enriched themnselves through extraordmi narV rent seeking. become among the This situation is reminiscent of the end off'eudalismn or mercanti post-communist states... rents down through incr-easedi com-petition and under-mine the political powver ofthte aristocrats bv mobilizing the ris-Th intareomsaeg _ i q s 1 |~~~~~~~~~~Th intal reor statg in mddle class and civil society. A difference is that the current threat comes from the state, which was much has been of fundamental smaller at the end of Feudalism. These reflections inricate what the outside world should encouirage in the former and lasting inportance. Soviet Union. 16 \ er ) I ; r\ > iIrL rl EASTERN E URO0PE & E URAS IA The end of feudal'ism was brought about by free foreign ural habitat of oligarchs. Where they have been sorted trade. Similarly, the openness to foreign trade has been one out, the transition battle has been won. of the best indicators of successful structural reform. Democracy is not only a public good or an ideal, but an Unfortunately, none of the big for- effective lever for the success of mer Soviet states is a member of market economic reform. Similarly, the WT7O, nor likely to Join before free and pluralist media are esn 2004. Because of thec passivity of tPat for the success to reform. If the WTO, the World Bank needs The real struggle of everything fails, the last way out is to play a more active role in trade terasio hsbenexternal default. The outside world liberalization,.h rniinhsbe should not balk at applying it. It between reformers has wvorked wonders in Poland and The reorganization of the adtern-ekgele. Bulgaria, and it may already have state ~ ~ ~ ~ ~ n hern-seig lt, done so in Russia. As the state is part of the problem Where ordinary people As there is no fruitful alternat'ive it must be reformed. One part of to market reform, I would expect the solution should be to reduce haeudrto hsone country after the other to state revenues in states such as and been free, ascend to the right track, but it can Russia, Ukraine and -Moldova, rf mha wo.take a long time as evidenced by which still collect one third of persistently poor economic policies GDP. The IMF should fight not in many African countries and the for higher taxes and revenues but slow deregulation in India and for the balancing of the budget at Pakistan,- Post-communist transi- a lower level, which Ukraine's tion has entered known ground - new Prime Mlinister Viktor Yushchenko has suddenly the battle against monopoly rents. U accomplished. A pr-oblem that unfortunately inust be solved with Anhg ,/n)/'.tI/' h.,t~/,Ll7(1tc t/h?'no,uz' /7>t'fi In/11- administrative means is the re-organization of the state. na/bunt,7 Peace. HI, nuhl ia'n Iwa/co 1tnt/n c IL"s' MI'l,'az ANlost post-Soviet states have hybrid constitutions, com- Becalne'a JUar/-c/ I't2,'nuy (1995) an (Atl'l'I//u It l)1"aq: bining a presidential system with a parliaetaysytm, Rfh'd~lna/ Coopcraa/'n an t) 1'c Cun,ns'11,'a1V111 f//ht'Indp'dn which messes up their governments. They should choose, s/i/c', (1999). and as the prime 'Issue is to get sound checks and bal- Visit: wvw.worldbank.org/eca ances, a parliamentary system seems preferable. Old Soviet bodies, such as branch ministries, must at long last be abolished. In part'icular at local levels, officials stIl interfere in enterprise management as in the old Soviet days, although enterprises may be formally private. Inspections have become a post-Soviet scourge. The slo- gan must be: Get the state and its servants out of enter- prises. Small enterprises can and should especially be favored through small lump sum taxes without book keep- ing and simplified registration. ThIe decisive strujggle xvill be the regulation of the monopolies and energy companies -'il, natural gas, coal and pipelines, which are the nat- 1)IK\V'EIOI PM E.N T 0 1 T RE AC i - ~ WIN TER  0 0 17 Achieving A Political § Consensus <<- T be reasons for Latin Amnericaj unzeven record may lie i'n its political and institutional weaknesjes l that ha ve made poverty T he Latin American region enters the new millennium reduction and broa dly with uncertain prospects. It is a region that has in the last decade fully embraced market economics and openness, only to find that with this course comes greater shared growth difficult to economic vulnerabilitv. Thus, the poor, who xwere ravaged by inflation in earlier decades, now find themselves at the mercy of unpredictable financial markets and their conse- achte've. quences. Growth in the region in the 1990s was less than two percent per person in real terms, and when combined 18 \ORII) BXNFK INSTIWR A K T K LAT I N AM ER ICA with uneven distributions of income in most countries, this "tequila effect" in other countries, notably Argentina led to a higher number of poor in 1998 tan a decade earlier. which had adopted a currency board system and could One may question the policy prescriptions, the so- easily not adjust to capital shocks. Chile, which had called Washington consensus or one can blame the inter- ignored international pressures to lift its disincentive national architecture, but at its root the reasons for Latin regime towards short-term flows, saw its policies vali- America's uneven record mav lie in its political and insti- dated; however, the region began its inescapable battle tutional weaknesses that have made poverty reduction with volatility. and broadly shared growth difficult to achieve. This then Volatility is greater when economies are open, as Latin is the challenge for the new millennium, namely, to America increasingly is, but there are no viable alterna- achieve a social and political consensus on viable growth tives in today's world. Highly competitive trade and strategies and to bring these policies to fruition. increasing competition, accelerated by faster information In striving to reduce the number of people that are cur- flows, make for more rapidly adjusting markets. Markets rently below the poverty line, estimated to be 35 percent for trade in products and services are irreversibly open of the region's population in 1998, governments will need and getting larger with the advent of regional trading to devise comprehensive solutions that lead to a perma- arrangements, including NAFTA and MERCOSUR. Cap- nently higher growth path. Policies that could assist this ital markets are incendiary in their speed, and some com- effort are described below under the rubric of new policy mentators rightly point to the asymmetry between the reforms or second-generation market-enhancing policies. speed of markets and their regulation. For Latin Amnerican Secondly, since we know that every shock that lowers countries with little fiscal space, soft safety nets, one-sixth growth by one percentage point also increases by two per- of the population below the absolute poverty line in 1997, centage points the number of poor, countries in the region and few sources of counter-cyclical finance, the costs of will need to introduce coping strategies to deal with the capital flow stoppages can be staggering. The transfer of increased variance in capital flows and hence growth. external volatility on to domestic growth and unemploy- These actions are described in the section on reducing ment as well as to lower asset values on stock exchanges, vulnerability. And finally, even if the region is successful real property and balance sheets of banks has weakened in raising its growth path closer to its potential, changes in the region's economic well-being and led to questions on the political economy will be necessary to share those the costs and benefits of the flows themselves. benefits more widely in a fiscally sustainable and socially Choices for the coming decade do not as a practical beneficial fashion. matter include policy reversals, but they do include a renewed emphasis on overdue structural reforms leading Lessons of the past to higher savings rates and higher productivity, measures Before examining these three areas of action for the new' to handle better the inevitable volatility in international millennium, it may be worthwhile to review some of the markets, and political decisions to govern more equitably lessons of the past. In particular, as some argue, why is and share both the gains and burdens of internationaliza- Latin America underachieving compared to its potential? tion more evenly. The aim should be to achieve at least 4 Observers can point to the 1980s as a lost decade due to percent real growth over the next decade, to reduce the the slow adjustment to global shocks and the ensuing level of poverty to no more than 20 percent, and the num- overhang of debt and fiscal lethargy. But the early 1990s ber of absolute poor to no more than 10 percent of the saw a turnaround in policy perceptions, more fiscal disci- population. How can the region achieve this triad of goals? pline in many countries, greater willingness to privatize public assets, and a strong receptivit,y to capital flows. A new round of reforms Indeed the ease of capital flows provided the seeds of the With most of the debates ended about the need for pru- financial crisis in Mlexico in 1994 that reverberated as the dent fiscal policy and lower rates of inflation, the policy L, E I [p I O I A1 E T N T o u T R E A C 11 . NE I N T E R _ 0 0 0 1 9 agenda shifts to fiscal equity issues -xvho pays taxes and create moral hazard for the financial sector. While some who doesn't pay and who benefits from social expendi- pension reforms have taken place, when these obligations tures and who should. The area of tax incidence is a and debt service obligations are combined, fiscal space is perennial one in which countries not only will want to limited. Political pressures from lower levels of govern- seek a larger tax effort but also more fairness. As studies ment also add to the consolidated fiscal burden-as seen in the U.S. by Joe Pechman used to show, it is possible to in federal countries like Brazil, the lack of fiscal discipline look at vho pays and who benefits from public policies by at the state level reverberates on the nation. income decile. Areas requiring attention include tax eva- Finally, the issue of job creation is a fundamental one sion, government bailouts of bankrupt social protection for Latin America. MIuch of the region is caught between systems, and poorly targeted public expenditures. Why the market-driven forces of trade and finance and the the emphasis on tax revenue and expenditure control? legacy of labor markets exhibiting considerable inflexibil- Because one of the ways to handle increased vulnerability ity. Whereas the U.S. model focuses on job creation and is to lower borrowving requirements in times of crisis and ease of labor exit, the European models of greater wage create the fiscal space to act counter-cyclically. inflexibility lead to higher unemployment. For most Latin Another area of concern is contingent liabilities of the American countries, evidence points to very weak pro- government, both federal and local, accompanying pen- gressive taxes and an inability to finance safety nets for sion programs and deposit insurance coverage. The for- the poor. Thus the employed benefit at the expense of the mer is a legacy of past policies that are now coming home unemployed, or in the case of the poor, the informally to roost as a result of demographic transitions, while the employed. Cases like Argentina show that when unem- latter is a consequence of recently instituted schemes that ployment rises, wages do not adjust sufficiently; the result are under-funded or implicit government guarantees that is a rise in the numbers of poor. The challenge is to find a * S3l 6"l * -I* I|| E . '6 , 86 5 6' I 6S 8' '8 ' ! *. S! S '' . .6 .6'6, .6E5 '6. 66' 8 a '6 ' , S I 'i '6 6 1S ''6 .6 16 '6 66E m .. 6. 6'886 ..' . 6 ' '6 .66 6 6 6 'l88 .5_ 6' ' ' ' _ . _ 65 6 6 .. 8 6 '6 '' 6 ' . 6 , . . ;6 . ' . S . 6 ' 8' 9 ' .' . ' 8 8 S 6 8'~E .' 6. 66 '8 '' .. '' 6. ' 6'6 6 '6'. .6 666 8' ' 8 . ' 6 6 6 9 5 '6 . '' S . 'S 6 6 6 6 . 6 S . 6 66 ' .5 6 . 6 6 6. .5 6 ' 6' I8 66_ .6lJ7lsl^lthsMllistn>} 6s 6 6 6 ' 5 S ' ' ' ' . 8 6 . .6 6 6 6' 84 6' ..6 '6:= . ' ''=_ SS '888 ' 6. 66 66S '56: = .6 - .6 5 ' S S ' ' ' ' 6' 5 . . . . ' 5 . I' *E3 . . '6 6'6 5 '6 6 6 6 ' 6 ' . '6 ' 6 'S 6 ' '6 ' 6 56 '6. 6 ' ' . ' 6 . S S 6 6'== 66 6 S' ' s' ' * . A . Strategic Issues for Basic problems Some solutions the Region WATER ENERGY REFORM Capitalize on the region's strategic position. 150 million people do not have Privatization offers the potential to increase Enlarged trading blocs, increased dollarization, more widely access tD safe water in the access cut losses lower prices and reach dispersed foreign investment in infrastructure ($100 billion destined to Argentina, Brazil and Mexico in 1996-1998), and region. the poor, 70 million of whom are unserved. freer flows of technology and innovation hold great promise for the region. URBAN SANITATION AGUAS ARGENTINA CONCESSION Urbanization as a trend is inevitable; the region 55% of waste water generated increased water connections to 1 5 million is already 74% urbanized, but quality of life doesn't necessar- by municipalities is untreated people and wastewater treatment to 1.0 mul- ily improve in cities -it requires planning- to avoid even higher numbers of urban poor, already numbering 150 million in LAC. lion persons people. URBAN SECTOR PERU RURAL ROADS The key issue for the poor is income gener- ation, employment that is more stable; acquiring the educa- Slum populations include: Road Project cuts Acomayo-Cuzco transit tion and skills, being healthy enough to work, having access 44% of Caracas, time by two hours each way, allowing to the job site, and a safe community within which to live. 35% of Guatemala city access to markets health services, The "voices of the poor" were clear that they wanted educa- tior for their children, and jobs and physical assets (shelter, 38% of Lima, and and jobs water, sanitation) for themselves. 60% of Mexico City. balance between market flexibility to generate new jobs devastating shock in terms of reserve losses and ultimately along with redistributive policies that are affordable and abandoning the real peg, was saved from catastrophe by well-targeted. the strength of the banking system. Countries that ignore Latin America will need to take better advantage of its the Mweaknesses in the financial regulation arena will ulti- proximity to the United States, a market that has shown mately pay a huge price, as was seen in East Asia and in remarkable growth in recent vears. To be competitive, Mexico. Fortunately, considerable progress has been many local governments in the region have invested in made as the region marches into the third millennium in infrastructure, tried to lower logistics costs and penetrate upgrading bank supervision, although political support export markets with success. The future is with newer for independent regulators still requires re-enforcement. industries, requiring venture capital from the private sec- Less progress has been made in the size and manage- tor and infrastructure supported by the public sector. ment of public debt. This exposes countries to major risks by taking away a natural shock absorber when external Reducing vulnerability shocks come. First, downturns cannot be easily reversed The next millennium follows upon many years of height- as counter-cyclical policies become unaffordable. And ened risk for countries in the region. The lesson of the late even countries with generally strong fiscal situations can 1990s has been to reduce financial sector vulnerability by be undermined by irresponsible states or provinces. Ulti- improving bank supervision and the process of bank fail- mately this becomes a national concern. ure resolution. The quality of bank supervision has A final risk element is an over-reliance on short-term proven to be the major indicator of financial sector borrowing. As could be seen in East Asia, easy access to resilience. Argentina in 1995 almost fell off its currency external markets for short-term capital, usually re-lent or board system due to weaknesses in its banks, but handled invested at longer maturities and in local currencies, leads well the 1998 crises. Peru in 1999 instituted banking sec- to a major financial vulnerability. Countries in the region tor reforms that enabled it to intervene successfully with- need to find ways of lowering that risk, either with disin- out creating a systemic crisis. Brazil in 1998, despite a centives to short-term borrowing, including heightened DEFVKI L)PMENT OUTREtACHI WiNTER .R000 21 supervision of borrowers, or with contracts that maximize works, nor the financing are adequate to solve them with- rollover power of the borrowers. Those countries follow- out a strong government role. ing prudent borrowing strategies have been better able to Policy makers are increasingly awvare that development withstand the shocks that have closed borrowers out of progress requires a multi-faceted approach. Bolivia and markets for many months at a time. While it is normally the Dominican Republic are formalizing this in the context lenders that are asked to undertake due diligence, it would of the Comprehensive Development Framework. The behoove the responsible authorities in the borrowing coun- reforms of the 1980s were necessary; the openness of the tries to provide disincentives to irresponsible borrowing in l990s was inevitable, but the institutions that were incipi- light of the moral hazard problem that often captures gov- ent need rapid development. For the next decade, more ernments when a crisis hits. These kinds of natural shock will be needed on all fronts in order to generate higher absorbers may prove helpful in the coming decade wfhile we growth and deal with its variability. Substantially higher await improvements in the financial investment levels are needed to push architecture. growth up towards the 4 percent THl E NOTION 1I1 IATF TI I ESE mark for the region, and given the Political economy and the poor I'RO ( E 1L F LEM S W\'I EL L; C LS E L V EE ) existing external debt burden of most Relatively few countries in the bY THtE 'RIVATE SECTo R countries, foreign flows are not the region have taken the task of poverty A\L-NE IS MVISGUIDEED AS answer. Higher taxes on the top 15 alleviation sufficiently to heart to ETIERTHE RGULATORY percent of the distribution that gar- make great progress. Encouraging ners half of regional national income steps were taken in Chile, Costa Rica ERA NA E WORKS, NO R T H E is clearly warranted. Better targeting and a few others, but as a region the F INANC ING IS A\DFL)OJATE of social expenditures is needed. And top two deciles outearn the bottom TO SOL\VE TI I FM WITHOUT perhaps most importantly, a national 20 percent by a factor of twelve. A ST RONG consensus or social compact needs to Although there was some progress in CJ)VF R.N NM I NT TOLE. emerge in each country to carry the the early 1990s, looking back at the anti-poverty battle forward. end of the millennium compared to Such a consensus requires smooth 1986, the levels of poverty and absolute poverty (destitu- democratic transitions, as we see now in the Southern tion) are higher. It will take not only stronger growth over Cone, and an awareness of what government's role should the next decade but also a social and political commitment be in the next millennium. Government can be seen as a to redistribution to reduce significantly the numbers of regulator of markets, as an income redistributor, as a poor and thereby also alter the balance between the haves guarantor of civil liberties, and as an integrator of labor and the have-nots. and business interests. The lessons of the past and pre- To deal witli rural poverty, evidence points to the need scriptionis for the future are quite clear. The issue now is to provide the poor with assets-land titles, education, which countries will step forward and implement based on and infrastructure. But the major newv dilemma for the a political and social consensus on what needs to be region is the growth of urban poor, now numbering some accomplished. Those that do will he able to move towards 150 million and rising. Latin America is 75 percent urban- the high growth, lower poverty goal, while those that are ized, including some mega-cities but many more sec- not able to find that political accommodation will find ondary cities, and the problems of urban slums can be themselves no better off than before. G seen throughout the region. Lack of access to clean water and sanitation is shockingly high for a region with higher l)(U,loly l,iqci' d,-t'recl' i' 1//7' Lu/in ini,criw a) talrl/mma,,111 per capita incomes than many parts of the world. The Rcqi'ju 1amr ltii,malie lic /7/' I/lgl i ,ztl) //dc Pr i'tale cc/am Ia& notion that these problems will be solved by the private Il/ B anq) a /(r1'17 az'1' a/tA' tb( Tink in/i/n/c. sector alone is misguided as neither the regulatory frame- Visit: www.worldbank.org/lac 22 W o R 1.E) 1 A N K I N S T I T U T E' SO UT H AS IA & EAST AS IA Labor. &overnance, and the Injormnan Age BY SWAMINATHAN S. AIVAR EAST ASIA HAS PRODUCED MIRACLE ECONOMIES GALORE IN THE TWENTIETH CENTURY. SOUTH ASIA, ALAS, HAS BEEN THE UNDER-ACHIEVER OF THE CENTURY. _ __'IN THE NINETEENTH CENTURY AND FIRST HALF OF THE TWENTIETH, LEADING ECO- NOMIC POWERS LIKE BRITAIN AND THE USA AVERAGED LESS THAN 3 PERCENT ANNUAL GDP GROWTH. BUT IN RECENT DECADES, SEV- ERAL COUNTRIES IN EAST ASIA HAVE AVER- / :AGED GDP GROWTH RATES OF 8 TO 10 PERCENT, THE FASTEST IN HISTORY. THEY HAVE RIGHTLY BEEN CALLED MIRACLE ECONOMNIES. PER CAPITA INCOMES IN SINGAPORE AND HONG KONG NOW EXCEED THAT OF THEIR FORMNER COLONIAL VMASTER BRITAIN. D)E VE LOPMNIE NT7 OUT RE ACH I WN T ER I jQQ 23 South Asian countries have chugged along at barely half Yet three major differences stand out between the two the speed of East Asia, and remained poor. India's per regions. First, India (and most of' South Asia) was capita income is just S370. Many other developing coun- inward-looking while East Asia xvas outxvard-looking. tries have fared far worse. But India used to be an eco- Second, India wanted the state to dominate production nomic superpower before the industrial revolution, with a and take over private sector industries, while East Asia large mercantile and financial class. Under British rule it used the state to facilitate private sector development. was the most advanced of all colonies, boasting the Third, East Asia paid far more attention to primary edu- biggest railway and canal networks. So it seemed destined cation: adult literacy is 98 percent in Korea, 94 percent in to be at the vanguard of developing countries. That Thailand and 84 percent in Indonesia against just 52 per- potential has never been translated into reality. cent in India and 38 percent in Pakistan (see box). One reason is India's colonial legacy. Before the British India's first Prime Minister, Jaxvaharlal Nehru, fol- came, India was one of the richest countries in the world. lowed socialist policies which generated GDP growth When the British left in 1947, India was poor and indus- averaging 3.5 percent peryear. This was thrice as fast trially backward. Indian politicians blamed this on colo- growvth as it was in the first half of the century under nial exploitation. They claimed Britain had extracted large British rule, and convinced most South Asians that this surpluses from India, and forced it into a free-trade pat- was the right path. But soon East Asia demonstrated that, tern which obliged India to export commodities and in the nexv global conditions after World War 11, 3.5 per- become a dumping ground for British manufactures. His- cent growth was not rapid but slow. Indians were reluc- torians estimate that the net transfer of capital from India tant to acknowledge this. At first they predicted that to Britain averaged 1.5 percent of GNP in the late nine- outward-orientation wvould soon convert the East Asians teenth century. The xvealth transfer wvas financed by a into neo-colonial puppets. When the supposed puppets persistent trade surplus. India's export-imiipor-t ratio xvas became mii-acle economies, Indianis claimed such strate- 172.5 percent in 1840-69, 148 percent in 1870-1912, and gies could work only in small countries, not a big one like 133.4 percent in 1913-38. Indian politicians interpreted India. Only bankruptcy finally forced India to reform in this to mean that export orientation xvas a tool of colonial 1991, as it had earlier forced the rest of South Asia. This exploitation, and free trade a British ploy to force its man- has led to some improvement, but no South Asian country ufactures on India and crush domestic industry. is on its way to becoming a tiger economy. On achieving independence, Indian leaders aimed for socialism and self-sufficiency, reducing the role of foreign New challenges trade and investment. They forgot that pre-colonial India So much for the past. What challenges do the tvo regions had prospered greatly as a trading power, and that export- face at the start of the new millennium? At least three orientation could be a boon if profits were ploughed back stand out. into the local economy instead of being sent to a colonial First, low wages will cease to be a significant source of master. Autarkic policies reduced India's share of world comparative advantage, and countries will have to focus exports from 2.2 percent in 1950 to 0.4 per cent by the on improving labor productivity. Second, good gover- mid-1980s, amidst cheers from misguided politicians. nance and strong institutions will become vital. Outward- looking economic policies alone will not suffice. Third, The East Asia-South Asia gap the world economy is shifting from manufacturing to ser- The space vacated by India was filled quickly by East vices. Countries must seize the new opportunities while Asian countries. They did not have identical policies. Hong minimizing the costs of the shift. In recent decades, glob- Kong ran an alnmost laissez-faire economy, xvhile Korea had alization has induced the relocation of factories fromii high- extensive controls which kept out foreign investment and wage to low-wage countries, especially for labor-intensive channeled massive sums to a handful of conglomerates. manufactures. However, technological change is reducing 24 0RL1) BANK INS1T I' SO UT H ASIA & EAST AS IA Education is Key to Development: Evidence from Korea and India by Vinod Thomas A t the turn of the 20th century, important, but mainly financed by pri- On many dimensions of social "heavy industries first" may vate spending. Furthermore, public development, Kerala ranks high, its have seemed the best way for- spending per primary school-age stu- performance comparable to much ward. In contrast, the devel- dent in Korea rose more than fivefold richer countries: in education and opment of information and knowledge between 1970 and 1992 as population health, the pace of poverty reduction technology is widely regarded as the growth rates slowed and the economy and having low inequality, the nar- key to success at the turn of this one. expanded. Rapid economic growth rowing of the gender gap, achieving A critical step in pursuing and succeed- together with a stabilizing and even the demographic transition, and hav- ing in this direction is the quality and declining student base meant that far ing a high degree of civil and political distribution of education in a country. more resources were being devoted to liberties coupled with a free press. Aiyer's article outlines obstacles to fewer children, allowing dramatic The policy prioritization witnessed in growth in South Asia, in contrast to improvements in the quality of pri- Kerala is unusual: unlike many devel- the tremendous economic success of mary education. oping countries, the qualitative East Asian countries. The fact that In India rapid population growth and aspects of development have been East Asia has traditionally paid more constraints on public funding have well attended to, while the first-gen- attention to primary education than presented a potential quantity-quality eration, growth-oriented policies South Asia is cited as a key differ- tradeoff. In 1995, India spent less were neglected. Accordingly, the ence in determining their develop- than $50 per pupil in primary schools growth outcomes have not been ment trajectories. Obtaining high Isome 11 percent of GDP per capita). favorable in Kerala. The lack of quality and widely distributed educa- In several states, the enrollment in pri- progress on having an open and tion is a multifaceted endeavor. Key mary and middle schools grew sub- competitive environment for eco- elements include: the allocation and stantially, and the pupil-teacher ratio nomic activities have hindered eco- efficiency of public expenditure for rose significantly. The opposite trend nomic growth. It would appear that, education, the participation of the is evidenced in Kerala where low birth once these first-generation policy private sector and the communities rate has been coupled with high liter- reform agenda is implemented, the in education and the demographic acy rate, especially among girls. high level of social development in and economic environment of a Despite India's relatively low (52 per- Kerala will, as in the case of China in country. Greater education coupled cent) adult literacy, the rate in Kerala is the 1980s, provide a sound basis for with an open and competitive climate close to 100 percent. The distribution sustained high-quality growth. for enterprises will help improve pro- of education has strong implications For growth to have an impact on ductivity, growth and welfare. for the poverty reducing impact of poverty reduction, the assets of the Korea is a case in point. Rapid growth. Ravallion and Datt (1999) poor need to be augmented. To be expansion of basic education and found that the poverty reducing more productive, the poor must be decline of education inequality was a impact of growth in the non-farm able to combine their human capital contributing factor in its ability to economy varied according to initial with other productive assets such as achieve sustained and broad-based conditions: growth contributed less to land, equity capital, and job opportu- growth with income distribution main- poverty reduction in states with ini- nities in open and competitive mar- tained at an acceptable level. Korea tially lower literacy rates, farm produc- kets. When school quality is low and had one of the fastest expansions of tivity, and rural standards of living school inequality is high, the poor education coverage of any country and relative to urban areas. In Kerala, are hurt most, since human capital is one of the fastest declines in the edu- where basic education is well distrib- often their only asset. Inadequate cation Gini - from 0.50 in 1970 to 0.15 uted and literacy rates are high, every investment in human capital perpetu- in 1995. Korea has been investing sig- percentage point increase in the ates poverty and income inequality. nificant amounts of resources in edu- growth rates had a stronger impact on But investing in education alone cation with clear priorities on primary poverty reduction. In Assam and will not guarantee poverty reduction. and secondary education. Korea's Bihar, which had similar growth rates Equal access to basic, well-distrib- average of 3.4 percent of GNP spend- to Kerala's but low literacy rates and uted education, fuller use of the ing on public education in the 1980s higher inequality in basic education, human capital and empowering the was in line with the regional average, growth contributed little to poverty poor with land, equity capital, train- but what made the difference was its reduction. Other states, such as Maha- ing, and job opportunities made pos- efficiency and the concentration on rashtra and Madhya Pradesh, had sible by opening to international basic education. In the 1960s and higher growth rates but lower poverty trade, investment, and ideas are also early 1970s, two-thirds of its education reduction rates than that of Kerala, needed. Korea's experience and spending went to compulsory basic implying a low impact of growth on progress in Kerala illustrate the blend education. Public spending on higher poverty. More than just the pace of of actions in education and openness education rarely exceeded 10 percent growth, pro-poor growth is needed for that can help countries to participate of total education spending in the past poverty reduction. If all of India's successfully in the information and 30 years. In the 1990s, public subsi- states had Kerala's elasticity of poverty knowledge revolution. dies to primary students were two or reduction, poverty would have fallen three times of those to tertiary stu- at a trend rate of 3.5 percent a year Vinod Thomas, Vice President, dents. Tertiary education was very since 1960, instead of 1.3 percent. World Bank Institute 11DEVN' E LOC) PM11 E N T O L- 'rrRI.: C, " W I N T E R 2 0 D) 0 25 the labor content of manufacturing: in most industries it is handle a container as Singapore's. Labor markets are now below 10 percent. Steel and automobiles were once often rigid because of obsolete labor laws and trade union big job-creators. But steel f'rom India's newest plants in traditions. Major changes in laws and attitudes are the private sector has a labor content of just 1.3 percent. required to produce a flexible, adaptable workforce. Cars from Maruti Udvog, India's biggest automobile com- pany, have a labor content of 2.5 percent. A few indus- Good governance tries, like garments, remain highly labor-intensive since Good policies and rules are necessary but not enough: machines cannot vet handle soft F'abric efficiently, but that they must also be enforced efficiently and honestly. Cor- wxill surely happen one day. ruption, legal slackness and civil strife can cripple devel- The challenge of the new millennium will be for coun- opment. The World Development Report 1997 showed tries to switch from low wages that countries with strong to rising labor productivity as a institutional capability and low source ofcornpaiative advaii- policy dlistolrtiolls grow much tage. This means developing faster than those with weak an edlucated and flexible work- c_ capabilities and high distor- force; high-quality technical W * 0 - tions. Transparency Interna- and managerial skills; and low- tional reckons that South cost, efficient infrastructure to Asian countries are generally lower transactions costs. more corrupt than East Asian East Asia is already on this ones (Indonesia is the notable track. Literacy is high every- exception). 'T'his is at least part where. Korea's research and of 'the reason for the dif'ference dlevelopment is now a source of' in their perf'ormanice. Two comparative advantage. Over years ago, a member of India's halfthe exports of the Philip- Election Commission esti- pines, the slowest-growing mated that 40 members ot' Par- ASEAN nation, are now classi- liament and 700 members of fied as high-tech. Technical state legislative assemblies had skills still need upgrading in criminal records. Singapore Indonesia. But the whole and flong Kong are far more region has moved up the manu- rule-based. ftcturing ladder from low-tech Four major factors associ- to high-tech items. ated with corruption are pol- South Asia will find the icy distortions, the ratio of transition much more difficult. civil service wages to manufac- Literacy is unsatistactory in all countries of the region turing wages, the extent of merit-based recruitment, and except Sri Lanka. Bangladesh and Nepal remain highly the predictability of judicial decisions. East and South dependent on low-wage exports. India has developed Asia need to tackle these four f'actors to succeed in the some impressive high-tech industries and institutes of' new millennium. technology, but not nearly enough for a country of its Good governance implies an attitude of mind no less size. than a set of rules or strong institutions. A society which Infrastructure is generally expensive and inefficient in respects rules and norms will enjoy governance even South Asia. Bombay's port takes eight times as long to where there is no written constitution (as in the UK). 26 w% , I . , I' A N K I N I I I I 1. SO UTH AS IA & EAST ASI A The creation of strong, independent institutions can pro- done in other countries while Americans sleep, raising vide checks and balances that prevent a few powerful peo- U.S. productivity. pie from ignoring rules. Competition in the economic GE Capital initially shifted 700 service johs to India, marketplace induces better corporate governance. Coin- and is noxv expanding the number to 5,000. Bechtel petition in the political marketplace, through democracy, employs almost a thousand Indians to provide profes- improves the accountability of rulers to voters. Good sional support to its global operations. Medlical and legal governance also has a technocratic dimension. A rule- transcription service companies are coming up in India: based societyv needs skilled, xvell-remunierated institutions. thev conver-t tape-r-ecorded rinterx'iex,vs fromi the Unitedl The East Asian crisis of 1997-99 showed that even miracle States into written scripts. economies can suffer eco- The labor content of manufacturi'ng may have dropped nmccalamnitY if they lack below,N 10 percent, but the labor content of services can South Asian well-supervised financial sys - approach 100 percent, so the shift of services can generate countries have tems, transparent and reliable more economic miracles than the shift of factories. Coin- atccounting systems, and good puiter soiftware can employ only a limited nuimber of chugged along ~corporate governance, highly" skilled people, but telex,vorking can provide jobs to millions of middle-skilled people. Only big multinationals at barely half Shift to services can invest the large sums needed to shift manufacturing Hong Kong and Singapore Jobs to developing countries. But individual doctors, the speed of ~became richer than European lawyvers and small U.S. businessmen can shift clerical jobs nations only when they to India without investing a penny. East Asia,and sxvitched from manufacturing Developing countries must rapidlyv create world-class to services. The share of ser- communications and spread the Internet culture. They remained poor. vices in GDP in Hong Kong is must become proficient in English. the leading global Ian- remained poor. 83 percent, the highest in the guage of the Internet. India today has perhaps 150 million world. The share in thle English speakers: in another 50 years its entire population United States is 71 percent, andi h-as made the country an of 1,500 million should aim to speak English. China and economic powerhouse in the 1990s. Mlanufacturing wix,ll Korea will find the language barrier harder to overcome. still matter in the future, but services wvill matter more. Having been a British colonY could, ironically, become a The communications revolution has made possible a source of comparative advantage for India. This could big shift of services from rich to poor countries. The best- help the underachievers of the twentieth century to catch known example is India's computer software exports, up wvith the miracle economies. xvhich have groxvn at a compound rate of 40-50 percent The potenti'al shift of service jobs is so large that it anniually. Theyl ar-e estiiiia[ed at ar-ound $4 billion in 1999- will probably generate a protectionist backlash in rich 2000, and a Mckinsey study predicts they will touch $50 countries. That challenge must be met early, if possible billion by 2008 (against current merchandise exports of in the next WTO roundl. TPhe silver lining is that rich only around $38 billion). countries wvill find it diff'icult to impose import dutics on Even greater potenti'al lies in teleworking. Cheap com- electronic data sent over the air-waves. For teleworking, munications enable many clerical and professional jobs, technology itself may be the biggest protection against from payroll and bill processing to inventorv management protectionism. U and answering consumer complaints, to shift from rich to poor countries. Indeed, by taking advantage of different St ,, I'/zI, inu/I/'Ia S. Aiia I' vI; ' ,o'17,I//i I?/g d IY; I be99, 1 n//W O LcItnn' time-zones, U.S. companies can get their clerical Jobsin',lhz Visit: vwww.worldbank.org/eap or wwwvvotldbank.org/sar [) Er1\'ECJ pMIN1 0U' L[RKf-\%C I[ \I N1T'ER ) 127 ~~~~~~~~~~~~~~~~~~~~~~~~ L _ J.Z i||& &^^L i^~zSG I~ a W~~~~~~~~~~~~~~~~~~~~~~~~N * >#r 28~~~~~~~~~~~~~~~~~~, Al A R L A NKI NSTITU A SURROUNDED BY THE LARGEST STREET DEMONSTRATIONS IN THE UNITED STATES SINCE THE VIETNAM ERA, THE WTO MINISTERIAL IN SEATTLE FAILED TO LAUNCH A NEW ROUND OF TRADE NEGOTIATIONS IN DECEMBER 1999. OPPONENTS OF THE WTO AND GLOBALIZATION MORE GENERALLY DECLARED VICTORY IN THE 'BATTLE OF SEATTLE." here were in fact two battles in Seattle. One U Review of subsidies, taking into account both their k attle xvas in the streets, conducted bv demon- potential role in economic development and the impli- straors epreentig wde ranging and some- catons of fishing subsidies time coflitin inerets xho andd tgeter Review of TRIPS (Trade Related Intellectual Prop- in a coalition against globalization. Some voiced support erty Rights), including possible inclusion of protection for labor standards, environmental protection (turtles for traditional knowledge, and possible exclusion of and dolphins) and indigenous rights; others xvere simplv some plants and animals. there to promote protectionism. While demonstrators dis- U Review of the agreement on trade-related rupted the meetings to some degree - costing negotia- investment measures. tors valuable time - they were not the true reason for U Strengthening the WTO's technical cooperation the breakdown in the talks. This brings us to the second activities. battle of Seattle. The second battle of Seattle took place inside the con- Several issues were specifically addressed to the needs of vention center and xwas over the substance of what was to the Least Developed Countries (the 48 poorest countries he put on the negotiating table. The delegates arrived in in the global economy): Seattle already pessilmistic about the chances of the meet- U Duty-free access for least-developed countri'es in ing's success. In the months prior to the meeting, dele- OECD countries. gates in Geneva had not been able to agree on a draft U Possible extension of transition periods for the imple- ministerial declaration outlining the areas of negotiation mentation of the Uruguay Round agreements. for the launch of a new round. The WTO General Coon- U Accelerated procedures for WTO accession. cil finally sent to Seattle a 32-page document that xvas i't- U Creation of a WTO Committee on the least tIe more than a compendium of competing and frequently developed countries. contradictory proposals. While the European Union. Japan and many develop- A xvide range of issues wvas suggested byv negotiating ing countries supported a comprehensive round, the parties as possil tpcfothnerud.United States supported a more focused and topic-spe- * Negotiations on agriculture, industrial products and cific approach. The Uruguay Round Agreement speci- services, fled a built-in agenda of negotiations in agriculture and U Negotiations on transparency, in government services, and on rules to be identified. While therewa procurement. no discord on the services negotiations, agriculture UNegotiations on trade facilitation, turned out to be a major contributor to the meeting's col- lapse. Before the meeting, the Cairns Group of agricul- I'J\JLOFM LNl 'IO1 IR1['F{CF H \\I N' Lk1 1 29 tural exporters had pressed for approach requiring developing agreement that the goals of the countries to adopt developed negotiations should include elimi- s country institutions in areas such nation of all export subsidies, as 'Fkeas customs valuation. well as major cuts in market The lack of transparency and access restrictions and domestic - the representativeness of the support, and that agriculture negotiations were also criticized should be treated as an area of by some developing countries in trade like any other. The United - : Seattle. Many smaller developing States gave broad support to this countries were especially approach. European countries, unhappy with the use of small Japan and Korea countered by negotiating groups, termed "green insisting that the "multifunction- rooms." A number of develop- ality of agriculture (its role in _ ing countries threatenied to walk food security, protection of the out of the negotiations because of environment, the viabiltyt of these concerns. rural areas, etc.) must be takncen Pos-atle: implcatiary into account. The European Ps-etl:ipiain Unieon also rejected the goal of Developing countries, and espe- eliminating export subsldies, and - cially the least dseveloped canm insisted that other forms of export tries, nere probably important assistance be subject to reduction. losers from the Seattle failure. While agriculture was the Trade plays an integral role ine from least developed countries; * lDe'clarationpcont.ie Wharen immediate cause of the Seatt nomi l failure, other controversies had accompanied by complementary arisen duaring the pre-negot itons institutional, human capital and procldes ine Gsenev ant-duemained i ; Lnfrastructure investments, the proinest in Senevattne trey maiglobal trading system can make a prominenthing Sattle.emrentvn -ngtainso giutr,ids included: implementation of the major contribution to growth and Uruguay Round agreements; pro- poverty reduction. posals for free access for all goods The Seattle draft Ministerial from least developed countries; Declaration contained a large investment and competition poli- ~~~~number of provisions that xvould cies: and controversies over labor hv epdipoedvlpn and environmental standards. countries' access to markets and to Implementation concerns providbetralndrusfo included the use of anti-dumping the global economy. Th-e provi- against developing country sions of particular relevance to exports; problems With thie textile developing countries includled and clothing agreement; and negotiations on agriculture, indus- problems in implementing trial products, and services; a Urug0 ay Round agreements review of the implementation of that used a one-size-fits all antidupn;eoIations on 30 \\,JL A\\} 1[\Ž, I I I I> transparency in government procurement; revising critical to ensuring the viexvs and interests of developing TRIPS, including protection for traditional knowledge; countries are represented and protected in the organiza- trade-related investment measures; duty-free access for tion. It also provides a chance to revie\v the needs of least-developed countries; and extensions of the imple- least-developed countries wvith regard to capacity build- mentation deadline for the Customs Valuation Agree- ing in negotiations and implementation. ment. It is not clear that there wvere any real winners of' the The Uruguay Round-mandated negotiations on ser- twvo battles of Seattle. The issues voiced in the streets vices and agriculture, which wvil1 start this year offer a remain unresolved, as do the issues voiced in the hall. much narrowver negotiating agenda than the framewvork Developing countries wvill continue to face significant discussed in Seattle. While there seems to be broad challenges both in building the institutions, infrastructure agreement that further liberalization of manufactures and human capital and in securing the improved market trade is desirable, this is not included in the current access and more balanced rules needed to let them agenda. Progress is likely to be slowv in the aftermath of become full members of the global economy. Progress on Seattle, probably delaying the start of significant negotia- both fronts is a vital interest of all members of the global tion into 2001. On the other hand, discussions on the economy. U controversial labor standards and environment issues are not likely to take place xvithin the framexvork of issues of Iu17d,',z/i. II.uhzni A lL tI 2U/J /tc11 tI/N l/ ll/ lAi/lk. the WTO for a while either. 11i'll .11arini It'u {(l i/i. lI'r/dJ C,lBank. In the meantime, the lull in negotiations is not xvholly I,1 11n I" d:'C ncc/,)i1; 4C. i,C/10IC p /U' 1/ h"//C 7,ln'Cii aditab K.. bad newvs for developing countries. It provides a good .h .c/lapncn/n //iCII, l/) Bfinnk. opportunity to clarify issues related to transparency, gov- ernance and a methodology for inclusion of developing Visit the following site on trade: www.worldbank.org/trade countries in the WTO. The success of this process is a . [) E I E () I .\ N l (I L \ ] \C I lI -I. Z 1, ( ( 31 ical Assistance: kraine t the beginning of the twentieth century, Arnold Toyvnbee formulated his thesis that the S development of civilization reflects societal responses to history's challenges. Indeed, the wvorld cor-* munity nowx seems to be facing this kind of challenge. The question is whether it is still possible to artificially achieve (accelerate) societal transformation, or is it better to rely on natural evolution and historical momentum. Policymakers today-especially in developed coun- tries-hardly acknowvledge that the world is facina a big challenge. Mlost current explanatory models therefore blame internal defects in particular countries for their fail- ure to reform. The conclusion is that democratization is not possible in these countries, and that no technical assis- tance of any kind is likely to help bring about positive results. Such models are based on ethnocentric beliefs that misinterpret or generalize inter-cultural inconsistencies. Recent events at the Seattle WTO meeting prove that In these discussions, Kipling's famous metaphor about the we are already living in a global economy, not one that is incompatibilities between East and West has been ele- fragmented into those who dictate and those who pas- vated to the status of scientific truth and political dogma. sively comply with "proper modlels." In the case of the On the other hand, the many knoxvn success stories WTO, the old method collided with new organisational about restructuring huge companies, Japanese modern- philosophy; while in the computer world, inescapable co- ization, and the South Korean transformation processes operation has brought serendipitous solutions. permit us to make an opposite proposition -that the suc- Even the name of NATO's program--"Partnership for cess or failure of transformation and the possibility of Peace" -and the idea of "partnership" introduced in integration are determined not by a country's cultural recent \Vorld Bank documents are examples ol' the new peculiarities or its people's mentality, but by effective rhetoric for relationships. So f'ar, they are more declara- change management. tive than practical, with the rules of the "colonial" expan- sion still dominating. The problem is not necessarily with How is this achieved? hypocrisy, but that it is always easier to work using old The challenge of reforms has to do with how the transfer methods. of economic, social, and cultural experience is achieved. One historical method was the colonial one, through 'What went wrong in Ukraine? which local structures wvere not supposed to be trans- In Ukraine, technical assistance is vital to the reform formed, but fully substituted. Yet, given today's globaliza- process. Unfortunately, it is often provided in ways that tion processes, structure reforms cannot be imposed using (lo not take into account post-Soviet institutional, eco- old colonialist methods; and if partnership conditions nomic, and political realities. Certain expectations by aren't provided, then reform objectives of establishing donors about Ukraine's response to proposed reforms open societies can hardly expect to be met. have actually hindered the process. 32 I) 'ANIK IN[IIUiI Until very recendy, rnost donors sav their role as process of developing laws, rules, and habits for a compet- advising the government on reforms and financially sup- itive environment is largely taken for granted by Amern- porting transition processes. While prox iding technical cans, who accept their environment as the only one assistance to the Ukrainian government, donors believed genuinely possible for today's society. Ml oreover, by now that they would take the lead in transforming economic they distinguish only the manifest forms of such an exis- and social institutions. They expected that the Ukrainian tenice (e.g., lawvs, theories, institutions) -essentially the government, upon receiving recommendations and finan- end results of the process. cial aid, wVould use its authority an(d capacity to carry onlt Thus donor organizations have tried to simply facilitate these recommendations and implement relorms; they also the installation of'these features of a competitive environ- expected nevlv established businesses to wvork wvith for- ment (like private ownership), assuming that the rest will elgn investors according to generally accepted rules of the follow naturally. The mistake could have been avoided game, and a civil societv to spontaneously activate itself with the establishment of more open communication and work independentiv as soon as state controls were between clonors and recipients. removed. Unfortunately. the recommendations did not take into No strategic plan account the Soviet legacy-the consequences ol'the From the point of view of Ukrainians, donor efforts are Ukrainian government functioning for decades as a com- not obviously connected to anl overall strategy; rather, mand-administrative body that regulated they appear to consist of stabs at individ- the economy as a single unified factory, ual changes. This leads to either preser- permeatedl by shadow connections. vation of the status quo, exacerbating Furthermore, (luring Soviet times conm- Societies can chaos, or totally uneixpected negative munity ties throughout all levels of soci- results. Relying on a technical approach ety wvere destroyed, and all political le 1 n nunahIn as opposed to a natur-al one means that, mechanisms of self-regulation wvere onlily Ub cUoUa lb along vith this strategy, mechanisms replaced bY a powerful administrative must be set tIp in order for the interests, apparatus that could control the society Dlf managing capacities, and( resources of various Litterly at its whim. [)onors, largely ignor- forces wvishing to participate in social ing the fundamental underpinnings oftthis change if all change to be able to interact. reality, could hardly make an accurate It is incorrect to imagine that external analytical assessment of'its long-lasting h " actors can provide a clear Understanding negative consequences. and wvhat it xvould the cells ol'existing realities, or that their advice take to overcome them. Among other w ill be usable to those charged wvith things, thev did not develop the actual that neec to making changes. Societies can only be mechanisms needed to transier Western capable of' managing change if' all the knowledge, and they could not compre- change have "cells" that need to change have a strate- hend why Ukrainians did not absorb this Y gic orientation. Otherwise, the "small knowvledge even after the pressure of' the projects" tactic can degenerate into fire totalitarian regime was lifted. U strategic fighting and nothiing more. The example of privatization and a 4 deregulation in Ukraine highlights some orientation. What to do? of the fundamental flawvs in the approach. The president. the prime minister, and People tend to forget the long an(d ardu- the Ukrainian people have made their ous battle needed to establish new wvays choice tow'ard European integration, of regulating public life. Even in the United States, the econominc reforms, and building an open society. Ukraine's 1) 1, \ F [(I O I. Ni 1,, I I,I L Ii K El II I ~N , I I 2K~ I 33 new challenge is to take real steps, from words and ideas to serious work that will bring concrete results. We all To reach a unique international understand that politics alone will not suffice, and that the audience of business leaders, scope of the transformations envisioned for Ukraine will policy makers, government officials, academics, economic journalists, require an intellectual revolution in all spheres of society. research institutions, and civic Along with learning about public participation in gover- organizations nance, we must also learn how to manage these changes advertise in on the tly. E'verything that could have been done in terms of polit- ical will has already been done-including making policy Oe/2.o wit decisions that open the door to wide-scale reforms. Gov- 0 lIT RE EAC H ernment capacity is now critical for Ukraine's future. Ukraine must swiftly lay the foundation for the func- tioning of a democratic government, and burv totalitar- Development Outreach is a flagship magazine ian institutions once and for all. This will be practically in the field of global knowledge for develop- impossible to do without intensively adopting and apply- ment which reflects a range of viewpoints by ing Western management experience, which has had the renowned authors and specialists worldwide. It is published quarterly, and distributed to 26,000 opportunity to evolve institutional capacities in tandem readers in more than 130 countries. An online with societal trends and demands. Ukrainian resources version is available at: need to be focused on developing a viable government, www.worldbank.org/devoutreach. as well as creating mechanisms to manage change and For advertising rates, deadlines, and general growing a wholly new bureaucratic system from the information contact Mary McNeil, Editor, at ground up. * (202) 473-3861, or send an email to:devoutreach @worldbank.org Virea Xani'V,,ka 1% dt'rec)tr o,f the Internatj,7nal Center for Policy Stu3 ed 4Rt',, Kw _I_._I_)_13_A_N_h_I_N_S1'ITL:'II'' 34 VI I R I, ) 13 A N K I N S T I T U Ir A p r i 1 2 0 0 0 17 Development Committee June 2000 Meeting, World Bank to host 1-3 Eastern Europe and Central Washington, D.C. 5/31 -AfDB Annual Meetings, Addis Asia-NGO Assembly, Vilnius, 1 Ababa, Ethiopia Lithuania 26-28 Education for All Conference (OXFAM), Dakar, Senegal 1 - EXPO 2000 2-3 Financial Stability Forum, Maris O'Rourke, Tel: (202) 473-7096 10/31 Hanover Singapore Morourke@worldbank.org The Discovery of a New World (with Final reports of the working groups many global activities leading up to on Capital Flows, Highly Leveraged 26-28 Eurasia Economic Summit, the main series of events over the Institutions and Offshore Financial Almaty, Kazakhstan core period) Centers www. expo2000.de 27-28 Conference on Crime and Vio- 3-4 African-European Summit, lence: Causes and Politics of 5-9 Beijing +5 (UN Special Cairo, Egypt Prevention Universidad de los Session on Gender Equality, 65 heads of state or govemment Andes. Sponsored by World Development and Peace, expected to discuss debt, develop- Bank Bogota, Colombia New York ment and terrorism. Elena Serrano Jeannie Yamine, Eserrano@worldbank.org Jyamine@worldbank.org 6-10 "Ten Years of a Free Press in Clare Fleming, Africa," Abidjan, C6te d'lvoire. M a y 2 0 0 0 Cfleming@worldbank.org A regional conference organized by the Union Nationale des Journal- World Health Assembly, Geneva 15-18 Biennial Meeting of the istes de Cote dIvoire. World Bank Helen Saxenian Inter-American Dialogue, sponsorship Hsaxenian@Mworldbank.org Washington, D.C. 10-20 Eleventh Meeting of the 10 IDA 13 Meeting, Lisbon, 21-23 ABCDE Conference-Gover- Conference of the Parties, Portugal nance, Equity, and Global Gigiri, Kenya Markets, Paris, France Convention on Trade in Endangered 11 -12 OECD/DAC High Level Species (CITES) Meeting, Paris 26 Second Annual Bank on Development Economics in 11-17 Netherlands Anti Corruption 14-17 "Africa and the Middle East: Europe Paris, France Conference Maastricht, Challenges and Perspectives Netherlands for a New Century," Montreal, 26-27 OECD Council meeting at Canada Ministerial Level Singapore 13-17 World Bank/IMF Spring Meetings, Washington, D.C. 15-26 Convention On Biological 26-30 World Summit for Social Bank press room opens Tuesday, Diversity Nairobi, Africa Development, or 'Copenhagen April 11. +5'- UN Special Session on 20-25 European Bank for Recon- the implementation of the out- 14 G7 Deputies Meeting, G24 struction and Development come of the World Summit for Deputies Meeting, Washing- Annual Meetings, Riga, Latvia Social Development (Copen- ton, D.C. hagen 1995) Geneva 22 CGIAR Mid-Term Meeting, socialsummit@worldbank.org 15 G7 Finance Ministers and Dresden, Germany Central Bank Governors, G24 Shirley Geer 1-202-473-8930 27-28 ABCD LAC Conference 2000, Ministerial Meeting, Washing- Sgeer@worldbank.org Washington, D.C. ton, D.C. AmarBhattacharya 22-25 Asia Development Forum 2, AbhattacharyaMworldbank.org Singapore 29-31 Second Annual Global Forum on Reinventing Government, Brasilia, Brazil 1) F\'V E L OFP\M h N T C L I k FL N C H \XM I N 'I EIR 2 0 OU1) 35 Innovators from around the Globe * *Compete for Seed Money to Fight Poverty * txby Angela Gentile-Blackwell and Cynthia Casas The Woorld B3ank cdoesn't have T a monopoly on development solutions, and who better to come up with ways to cornmbat poverty than those at the receiving end - developing countries. That's what th-e organiizers of the L)evelopment MNlarketplace thouight when they opened up to partners, NGOs, businesses, and clients their competition for a total ol $5 millioni in start-up fun(s for the ost . Finalists represented 62 coun- empower and educate the care- tuns lo the moot uioative ideas*to fight povrt....The tries, with the mnajoritV coming giver, that is f'amnilv members who i(eas to fight povertv. 'I he response was massi, ifrom Africa, Latin America and often take in the orphaned chil- response wvas imassive, with nearilv 1,200 proposals pouring inthe Caribbean, Eastern Europe, ciren hut who lack child-rearing a200propnd sthesglobe.Agroup of 2- and the United States. Those who skills. "When the famidv institu- arouind the alobe. A g1roup of 25 . .I made the cut put their ideas on tlion Is battered, we'll never be display at the marketplace, which able to reduce poverty," said was held on February 8 and 9 at Chigtbiu, who attended the event World Bank headquarters in with her daughter Crystal. "Social Washington, wvhere a Jurly repre- networks have dxw indledl We senting all patrts of the dev elop- _ment community, including the private sector, awvarded 44 prizes _ to the best idleas at the end of' the second day. Among the winners w'as Mercy World Bank assessors narrowed Chigubu, a doctoral student at on proposasthat promoted good won $1 00,000 in start-up funds goveninprop osalsdcorLp for her project, "Orphans and tion tiveloed egalandjudiial Kinship Care-givers,' which will tion,~~ deeoe lea and l'uclcoalde funds to feed and educate __ svstems, strengthened financial provi and reguIlatorV systems, and an- AI[)S orphans in Zimbabwe. The an( retiltor Syterls, nclInS~ pojet dI also work to _-tt0 lated the poor from crises. project i 36 , e Field - see this project xvork in a big way to up unfunded proposals with potential K help the 3,500 wvomen in our net- donors through NetAid, the recently . xv 7,' ~ork " launched wvebsite that acts as a clear- i Jessica Lewis and team also took inghousc for donors and organiza- home a prize, $129,500, for their pro- tions. )ect, "IT: Employ~,ment for People w ith Disabilities," h_____ Lewivs's group, wi th the I hJ* wvant wvomen to become involved. \Ve OAS Trust of the Amern- LTHE wvant everv child to be educated, not cas, proposes to send vol- 1 () _ to be a social isolate." unteers to Central America U ? The project "E-commerce Bridge: to provide training in tcch- UN From Bosnia to the NVorld" won a nology for people with dis- .' -- $45,000 awvard. Headed by James abilities. The idea is to Chuck with Knitting Together closely target needs-f lor Nations, a Sarajevo-based initiative, example, those needingi the project xvill use e-commerce to help improving a graphic promote contract manufacturing of' design business wvould skills already possessed by many of' receive training in that Bosnia's displaced wxomen: knitting area-and then have those and crocheting. "This w,vould be the who receive training first e-commerce business in the become trainers. "The pro- Balkans," said Chuck. "Because no ject is innovative, sustain- one's going there, we're bringing the able, and combats business to the WVest through the poverty, said Lexvis "Five w eb. The 'World Bank's dream is oi'a years down the line, we'll 'world free of poverty. INly dream is to see a cadre of high-tech volunteers wvho are L~emplovable. It has the Ut'! t-ability to radicallv change pepl's lives." For those wvho xweren't - idI selected f'or axards there's still a chance for funding. "\\e're keeping all proposals on the web and A,niel Ge,ziA'-BIaeL'i' ll iv)it,,r J encouraging donors, foundations, and dbayal a the If'url/ Ban/,k. (Cylluhia7 (j'a,7zs multilaterals to have a look at them is /1'unj,W c, ',7n1u1ieaA1 , ,ll ','I,a'i/L' 5'iih -fl and see if' they can lund them," said te I'>r') I3a/7o( (B'ak Group., E.vernal n III JI lMlari Kuraishi, one of the event's key Oi//cc. organizers. In fact, World Bank Pres- ident James Wnolfensohn announced To find out more about the Devel- at the award ceremony that he wvas opment Marketplace, visit wvorking with the United Nations www.developmentmarketplace.ora Development Program to try to link I V I,' I N I ') I I 'tI 1 1 INIEI D II (I 37 -~~~~~~~~~~~~ The seb.,ietei included here represent,same wider geostrategic and economic The Economic Research Forum a/f the partner st'1mithdio atz the Global environment. The aim of the insti- for the Arab Countries, Iran and D)eeelapnent N7ets'a,'lk (GDNJf>7V). The net - tute is to nurture a community of Turkey (ERF) provides an institu- ffwork dimu to) enhance the qudality tnd scholars interested in the region and tional mechanism to initiate and ai'bilahdity of polity-orieinted reaearch to engage in research on the multi- fund policy-relevant research, to and stren.qthen the insititulton.t sh'ich faceted dimensions and issues of sta- disseminate the results of research underlake this cork. The GDANo/ifers bility and security, economic activity to scholars, policymakers, toot, ,'e,'irce, and netlfrk7-iq opportuni- development, and political, social and the business community, and to tie.s to help the.,e inz,ti,titos iand their and cultural change. The intention function as a resource base for 1nc1nher,'0i1z to ete h to)tiqhtpo(eerty. is also to enhance public awareness researchers through its databank Visit the GDN.site at: wiw.gdnet.org of the region and facilitate the and documentation library. search for viable solutions to the www.erf.org.eq varied problems confronting the _-~ .. . . ..... , ,region. www.iseas.edu.sg - If_ _7- ~ tftftff_l z BL The Center for Economic . l _ ~ 'in' _ - __Research and Graduate Educa- tion-Economic Institute Founda- tion (CERGE-EI) aims to create *LAcEA the future economic leadership of . . * _ The African Economic Research Central and Eastern Europe by I Consortium (AERC), established applying the highest international in 1988, is a public not-for-profit standards of economic education, The Latin American and organization devoted to advanced scientific inquiry, and policy analy- Caribbean Economic Association policy research and training. The sis. (LACEA) is an international associ- principal objective is to strengthen www.cerge.cuni.cz/cerge- ation of economists with common local capacity for conducting inde- ei/default.htm research interests in Latin America. pendent, rigorous inquiry into prob- It was formed to facilitate the lems pertinent to the management of exchange of ideas among economists economies in sub-Saharan Africa. The Economics Education and and policy-makers. www.kenyaweb.com/aerc Research Consortium (EERC) is a www.lacea.org partnership of distinguished donor institutions supporting democratic reforms and market transformation i POCCnUCKAs 3KOHOMt*ECK tLKOJA x77',~ - w trpr:erxtott in the Commonwealth of Indepen- T r NEW ECONOMIC SCHOOL XN Q:W=L v_w_~ ,dent States. The objective of the EERC Russian Research Program The New Economic School (NES) is to foster high-quality economic is the first non-state graduate school research, while promoting capacity in modern economics in Russia. The building and professional develop- purpose of the school is to provide a ment. The program is designed to standard graduate economics cur- create a research culture, encourage riculum to students from Russia and sa m _ Russian scholars to work at the other parts of the former Soviet frontiers of the discipline, and sub- Union. The school's goal is to train ject their research to international world-class, professional economists The Institute of Southeast Asian standards of excellence. to serve the growing needs of the Studies (ISEAS) is a regional www.eerc.ru academic, public and private sectors research center for scholars and in the region. other specialists concerned with www.nes.cemi.rssi.ru modern Southeast Asia and its 38 W G (R 1, ,) 11 A N K I N S I' I I' L' rIl I (tipita/Aclni [Ra/cia Sty/c' by Thane [citde an:I/cc cates a global network of small-scale Gustafson. Cambridge University )'n'/c, t marker economies that empower citi- Press, 1999 (lo/ai/ Lip//la/W zesadebaecomntoaus by John Gray. A ~ zn n mrc omnt aus For a decade Russia has been disman- New Press, 1999 u' tIliog communism and building capital- - ' hllt i ' atAnPa/icy: TI 'e ism. Describing a dleepl~y flawed market The book argues 'ca[ac F'pbyKrnEi- economy, the book provides an that, far from beth Smith, St Mlartins Press, 1999 engrossing account of one of the cor- bringing about rent world's great dramas. "Based on economic par- Political scienti'st Karen Smith exam- academic research and firsthand expe- adise, global capitalism "could wellinsteErpaUioplcyowd rience, Thane Gusrafson has wrvi-tten an destroy ,liberal civi,lization." Grayvis sxcotis0 atr uoeBl insightful, careful to distinguish "global capitalism" garia, Czech Republic, Hungary, TAIi CiLS si:, informative, fromn "globalization," -which he 'Identifies Poland, Romania, and Slovakia-with CAPITALISiM and highly as a broader tendency encompassing the objective of supporti'ng and ensur- RUSSIAN-STYLE readable "the increasine interconnection of eco- inseoiyadtblt. analysis of the nomic and cultural life in distant parts tgscrvaidtblty evolution of of the wyorld." the Russian economv in Jpnfto a cI cc''i'/I c.'et the 1990s." TA, 1R1'ccc t/c)[ct h b ayon uth I/'t' R'/a,'nings and iMichael lKaser. St Miartins F_-11by 0~W N'. Fku aa). TH ~ /'''I .) Press, 1999 uuya nREuTUHN OF /dW by _ _________ DEPRIESSION Paul R. Krug- Japanese investment, aid, trade, ECONOMVI1CS mnXX'. advice, collaborative action, contacts l1/cc/icyon the ziltuc: 7/e cc' olau/la'O in a Norton and Co., and other types of economic involve- 11Ia/c'c "'/ccfztcFi/ l'Ui,cit S/citce 19S) by 199ment, also reciprocal actions by those Robert Solomon. Princeton Univer-S _______ countries, are related in substantial sity Press, 1999 ~ ~ ~ ~ M a th arugmangl0k detail, The economic narrative is diver- at th alaming sifid bythe inclusion of cultural and The international monetary system has string of finan- historical comparisons betwveen Japan changed radically in the last twenty cial crises that plagued various and individual countries. years. Capital, informati'on, goods, and economies around the globe in the srices move around thIlb 1vt 99Os, especiall~y the Asian contagion unprecedented ease. Countries from and sees an "eerie resemblance to the the former communist bloc have j'oined Great Depression." Instead of the "nexv, Eciit'icp/t.c I)cn,c'iBialkc, In~ Lttilct ('Aici the system. Europe is on the verge of world order" promised by the triumph of' Edard c Hc'.Icaf/c Puci/ sheicbyAri, Agh9 monetary union, Financial crises in capitalism over socialism, "the world ExadIIa ulse,19 East Asia and MNexico have rocked the econom-y has turned out to be a much Thsboofesacmrenien- world economy. In this book, Robert more dangerous place than we imag- thisbokc ofesl comp reso o hensivecraana- Solomon presents the first comprehen- mned." ltclcmaio ftedmcaia sive history of these and other aspects tion process in twelve countries. It 0f this revolution in international ~~~~characterizes the types of democratiza- Cinance. [a2c Iir',/ tion which have occurred in the region Pa./-Lartwt/cllc'/1:Lti Ifcrti;t- from 1989 until the end of 1997 and La/bin11 by Davild C. Korten, Berrett- sets these recent changes within the Koehler Puiblishers, 1999 framework of the political history' of the countr'ies, Korten, a noted social critic, offers a practical, human-centered alternative to global capitalism run amok and advo- IcO\'E LORML EN T 0 LFRLEA C H ' WINIER 2041~0 39 3rd Iternat oa nal Workshop on Strategic Management and Marlketing of Training (SMMT-3): Ensuring Susta nability & Financ a Health of Learning Institutions Manila, the Philippines: April 3-14, 2000 The World C l | t B23 Bank Aim *VrFi B.s A NKN UI B I1TfLW F BANK N lA'51 FR11 V F ` : , A LA IN S:fII C. MA-11u C IN I AM N)I[fA C( IN (ID[ iV rIl WM I N I IAr INF PS lfN N _l-*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~FI I l> _ 'N5tl I I _l~~~~~~~~~~~~~~~~~~~~~~~~~A * ANJ I HF FA II FI C I (1AN E FPVE AIPJ L ,AN 7 FS iA SM MT~WJII I FAIIS A C; [Ir ASI^ INS AUI ~~~~~~~~~~~~~~~~~~~~~~~~~~~~T LL AR N NG OP I JN TY F C t HA N IN t PACFC AC AI IV I "S/M ANACt GI]H DJMl FISSAN fI) If E | E ! ! ! ~~~~~~~~~~~~~~~~~~~~~WIL RN MA AGMN PR iNU I'L h AN 1 W S. C VA I VI d l!ARr, K NC M [IHO ( A I H n' 5n I i: A 1iA I ,^.:A I 0II Rl NiS It TLrONrssi >lrJ+Irr>1V , li[ ,' MCT -ts ~~~~~~~~~~~~~~~~~~~~~This Workshop is an in tiat ye supported by the Wor d Bank Institute (WVB )'s B ~~~~~~~~~~~~~~~~~ ~~~~~Kno-ledge Utilization tnrough Learn;ng Technologies (KULT) Program Au e Asors, Public and Private Sector Professionais, NOs and Academics. For further information orn this Workshop and/or to obtain the QnalifitbXBackground in economics, English proficiency, and computer literacy. Applcation Form, please contact RegisitienD f US$1,850 for each participant from World Bank borrowing countries RoniB Adh tar/a, Derica Tdai rig Off & KAL P-q3ram Manarr (except for those being sponsored by international organizations), and US$3.600 WDrld Bank nlrtitrtir (Wh F, Tate WVrld Bark 1818 H Street, N WV Waash ngtri, DC 20433, USA for all other participants, including those sponsored by international organiza- TCI ''-202) 473 3305 Fax (11-202, F,2-492, Eara raftikaryaAv/a abaul nra tions. Fee includes tuition, lodging, health insurance, training materials and use of computers. Travel and subsistence are additional. Dr ardo Feaia secretary Gerieral A P P L I C AT I 0 N D E A D L I N E : Mi A Y 1 , 2 0 0 0 AraCIatisrcati OD aeve pent F raucAng' Irst r tari at Asia ari tat PFaific PADFAP APPLICATION DEADLINE: MAY 1, 2000 ~~~~~~~~~~Sky arind Piara Sen. Si PKiatr Art Matati C ty, t20B. Mauii a, PHILIPP KES, To f63-2 816- 1672 or 844-2424, Fax '63- 281t -498, Frra:l: inru re(madfian.org For more information, please contact Ms. Maria Teresa Cruz F-Maili:mcruz4QwOrldbank.org; FAX: 1-202-576-0977/8 Or visit the Workshop Website at: Brochure and app ication forms can be down oaded from: wvvw.worldbank.org/vvbi/smmt-3 www.worIdbank .org/wbi/eedp Special Trial Subscription to Development Outreach for readers living in developed countries: Get Two Issues Free in 2000. Dear Development Outreach Reader: Good News! You have been selected to receive the first two issues of Develop- ment Outreach in 2000 absolutely FREE as part of a trial subscription offer. We would like to invite you to subscribe for the rest of 2000 for just $12. We also invite you to take this opportunity and continue your subscription in 2001, for just $24. Either way, the two FREE issues of Development Outreach are yours to keep at no obligation. Readers living in developing countries will continue to receive the magazine free of charge Just fill out and return the subscription card included in this issue \Awith payment to: Development Outreach, The World Bank, PO. Box 7247-7956, Philadelphia, PA 19170-7956, USA. 40 A ,r, 11r [. \ N1Xr i S I I I II 1: WBI News Volume 2 E Number 1 * Winter 2000 WB IVP swt - Inod Thomas, who has successfully been at the helm of the World Bank Institute for the , V past five years, has been promoted to Vice President. "Experience demonstrates the critical importance of knowledge and capacity building to the success - of a country's development process. Over the last .' few years the World Bank Institute (WBI) has become the Bank Group's prime vehicle in the dramatic expansion of our client and staff training ; efforts. From his current position as the Director, , WBI, Vinod has played the key architectural and leadership role in this process. In recognition of Shengman Zhang, World Bank Managing Dlrector and Corporate the importance of the Bank's knowledge and Secretary, congratulates Vinod Thomas upon his promotion. learning agenda, WBI's essential role in the contin- ued success of the Bank's overall mission, as well "The promotion of Vinod Thomas to Vice Presi- as Vinod's personal contribution in this regard, he dent of the World Bank recognizes the leadership is promoted to Vice President, WBI." role he has played In the scaling up of knowledge (Kiosk announcement) and capacity building. This is a well deserved recognition by our President not only of Vinod Thomas but of all of WBI for the remarkable job the Institute s staff did in this regard. " WBI News had a short interview with Vinod. Q. As Vice President of the World Bank, which do you think are the most pressing challenges WBI is facing? A. Today WBI faces a crucial responsibility and an unprec- edented opportunity. Working integrally with other World Bank Group units, the Institute's task is to scale up the learning impact by a multiple, to reach vastly larger and wider audiences, to help country institutions build their capacity and to help integrate learning into all of the Bank's assistance. Q. What are the principles guiding WBI's expanded mission? A. The expansion must be driven by needs, demand, country ownership and a continuing attention to quality, partnerships and cost efficiency. The way to achieving this goal is to place capacity building integrally within the Comprehensive Develop- WORLD ~~~~~~~ment Framework process. BANK INSTITUTE n.roducction to Program Evaluation _i4iiill _ ; i Task Manager Bill Eckert in the DL classroom a 3 rZncŽ U.Leming Cour-3 pmber14,16, 21,23 ,2&and4 _ 0 l|l a proposal to "expand" the audience by broadcast- ing the course to five Bank mission sites in Africa. It also included a group from the Norwegian Foreign Ministry and its General Accounting Office. The audience consisted of a local group of Bank staff, Bank Mission staff, local government officials - 7 * l t t t r^-= and NGO's. Suddenly the group of fifteen to _S -twenty had grown to over fiftyi The course seemed to go well, so for the next offering in September, participants were recruited in the LAC region as well as in Africa. The result was a total of ten sites plus a local Bank group, Distance Learning version of mostly from IMF. These African and LAC sites were Evaluation Course reaches three joined by a group from the World Health Organiza- tion, providing a group of nearly one hundred and continents fifty participants. "I was particularly impressed by WBI sponsors hundreds of learning events each participants from the NGO's." commented Bill year. These activities range from formal Core Eckert. "There were people in the course from Courses on key development issues, to local and Planned Parenthood, and similar organizations, regional conferences that bring together Bank who were being pressured to evaluate their pro- clients and recognized experts. Much dedication grams, but had no means for doing so. They really and hard work go into planning and executing appreciated this course and the tools it could these events by our staff. But how do we know if provide them. This seems like the groups we these events are successful? This is the job of the should be aiming for. We never could have in- Evaluation Unit (WBIES), where a group of social cluded them without this technology." scientists and substantive experts work to develop Plans are for another course next year. And, methods that will assess these many events and eventually course offering in languages other than ultimately lead to their improvement. English. Was there an evaluation? Of course! A key part of the Evaluation Unit's services is the Nearly one-hundred questionnaires were returned course it sponsors on evaluation, Introduction to to the Evaluation Unit by participants. The results? Program Evaluation. This course is designed to Like any course, there is always room for improve- introduce basic evaluation concepts and methods, ment. and demonstrate their application. Originally, the Task Manager Bill Eckert: 202-458-1584 course was aimed at Bank staff. It changed last Email: weckert& worldbank.org Spring, when the course Task Manager, Bill Eckert, - was approached by the Distance Learning Unit withl Congratulations to the WBI winners at the Development Marketplace. The WBI Development Marketplace winners were: *hEnding Female Genital Cutting by Providing New Economic Opportunity for 'Cutters' * Artisan Enterprise Institute In addition: * The Virtual Souk received an IFC award * Fair Trade Business Initiative received the lnfodev awward * Special Governance Zones: An Entry Point for an Anti Corruption * Strategy received the People's Choice award WBI offered 12 scholarships to runner ups The winners will be able to attend WBI training. illil Teacher Training and Research on Reading and Writing * Community Forestry * Biodiversity: Use without Abuse * Appropriate Medical Technologies for Developing Countries * TIDEs Seeds: Self Employment and Entrepreneurship * Rebuilding Cohesion In Post-Conflict Communities * Special Governance Zones * Adopt a Primary Rural School * Ending Female Genital Cutting * Options for the Poor to Settle Disputes at Lower Cost * Roundabout Outdoor HIVIAIDS Initiative Improving Capacity for Local Development in Turkey Special awards: * Poverty Eradication by Transfer of Technologies * Options for the Poor to Settle Disputes at Lower Cost The Comprehensive Development Framework Is the Backbone of Civic Outreach Program Agood example of WBI policy services offered in support of the CDF took place January 27 MO a. 29 in Romania, where WBIKP's Civic Associa- tion Outreach and Training Program in conjunction o, with PREM's poverty unit offered a highly publi- Romanian cized conference on Social Capital and Economic Academy of Development. Demand for the program grew out Economic of the CDF process, which identified low interper- Studies sonal trust and institutional effectiveness as key in . factors prohibiting development in the country. Bucharest Francis Fukuyama delivered a keynote address to a standing room only crowd at the Romanian Academy for Economic Studies, which was fol- lowed by a reception at the presidential palace and dinner hosted by Romanian President Emil Constantinescu. Fukuyama, author of The Great ,'. 3 Disruption (1999) and Trust- The Social Virtues and the Creation of Prosperity(I 995), among others, is Francis Fukuyama delivering well-known in Romania and two of his books have the keynote address been translated into Romanian. at the conference on Social Capital' As a result of heavy coverage, the event and Economic Development.. launched a public debate in the media about the role of social issues in sustained development. A two-day residential seminar for key Romanian decision makers from government, civil society, Bank's strategy in Romania as well as the academia and the media followed. government's CDF activities," and reflected "ex- Working closely with a local partner institution, tremely well on the Bank." Follow-up is planned at the Romanian Academic Society, the event, in the the regional level, drawing on the Romanian words of Romania Country Director Andy Vorkink, experience. "was a timely initiative that complements well the WBI Environmental Training Course in economics and policy analysis that underlie proper China decision-making of environmental and develop- ment policies in China. Through a set of four courses, participants (150 plus carefully selected The Environmental Economics and Policy (EEP) middle-career professionals) will be linked by a t Training Course was held in Shenzhen City, network and develop demand-driven policy- China, October 12-22. Co-sponsored by WBI, the services to tackle important national, provincial or Municipal Government of Shenzhen, and SEPA, the local environmental issues. two-week course is the third in a series of four Vice President Ian Johnson delivered a public under the World Bank/SEPA multi-year environ- seminar titled "Development Framework for the mental training program in China. 21st Century: The World Bank and China's Environ- WBIEN prepared and delivered the course in ment" to 1 50 participates on the closing day. In collaboration with ENV, EASES, China Department, the first week of the course, World Resources DEC, and TWU within the Bank. Forty-two partici- Institute President Jonathan Lash also gave a public pants attended the course. They represented seminar on environmental policy framework. The governmental agencies, civil society groups, and course generated highlights and publicity in local the private sector, from which there were 8 self- news media. There was coverage by local newspa- sponsored student participants. Sixteen experts pers and TV about the course opening and clos- from U.S., Taiwan, Hong Kong, and mainland China ing, the public seminars, and the meeting between came to teach in the course on a cost-sharing Mr. Ian Johnson and Shenzhen Vice Mayor. basis. The objective of the course was to train a group of prospective trainers with the most up-to-date ' ' knowledge and analytical skills in environmental -> The Core Course wasn't a#l work and no play; the participants held a reproductive health tie contest where the ties represented reproductive health themes such as male fertility and safe motherhood. to the Bank's first Resource Marketplace on Population and Reproductive Health where over 20 different organizations displayed their projects and publications. The Adapting to Change Core Learning Program is designed to help countries achieve the goals estab- lished at the historic 1 994 International Conference on A * * S * ^ t Slq Population and Development (ICPD) in Cairo, Egypt. The ICPD's Programme of Action is a new development strategy that emphasizes the integral linkages between he first annual Adapting to Change: Core Course on population and development and focuses on meeting Population, Reproductive Health and Health Sector Reform the needs of individual women and men, rather than Twas launched last year in September. Seventy participants on achieving demographic targets. from over 25 countries came for the three week intensive pro- The Core Learning Program, lead by WBIHD, is gram aimed to assist participants to strengthen the design and comprised of a consortium of collaborating agencies delivery of reproductive health care services. including WHO, UNFPA, the Harvard School of Public The Course featured presentations by renowned experts such Health and various bilateral donors and foundations. as John Bongaarts of the Population Council, Maggie Catley- Upcoming events include regional face-to-face and Carlson, former President of the Population Council and Fred Sai, distance learning events planned in Egypt and West former Senior Population Advisor of the World Bank and former Africa in FY00 and the possibility of training forums in President of the International Planned Parenthood Federation Peru and China in the works for FY01. (IPPF). In addition, participants and Bank staff were treated !g~ ae f - _- Ea - B, _, l n A Challenging Game WBI Artisan Seminar Series Kicks Off WBI created the Millennium Challenge in October 1 999, The first in a series of "Hand Made Development" semi- a fun, interactive development website aimed at raising nars, featuring a workshop by a Ghanian master weaver awareness of children and their parents throughout the gathered experts from inside and outside the Bank last world. "With the Millennium Challenge, we use a November to discuss how artisan enterprises can help concept called 'edu-tainment,' where people can learn preserve cultural heritage and reduce poverty. about poverty and sustainable development issues and Organized byJerri Dell, team leader for WBI's Artisan as be entertained at the same time," said Katherine Entrepreneurs Learning Program, the seminars aim to Sheram, manager of WBI's Development Education economically empower local artisans from very poor Program (DEP). cmuiis The site is currently part of the Bank's sustainable communities. development and poverty reduction display at EPCOT Center in Orlando, Florida. It was created specifically Reducing Corruption: A Case Study for the exhibit, where people are expected to spend WBI Governance Team conducted a diagnostic study to only two to four minutes on site. identify problematic areas in the municipality of Campo Visit the website at www.worldbank.org/millennium Elias, Venezuela. Using this study and the training received by the local government during WBI workshop, the mayor, her staff, and civil society worked in partici- Spot N e w s patory groups to prioritize areas for reform and Sp ot JV NL 1 ew s develop a detailed action plan. Subsequently, the plan was successfully implemented to enhance accountabil- ity, transparency, cost-effectiveness, and credibility in the delivery of services. McNamara Fellowship Awards Maria Gonzales de Asis:- 202- 473-7950 for 2000 WBI Helps Journalists Be Educators This year, 1 6 people from 1 3 countries were awarded the WBI McNamara Fellowship. This will be the 1 8th An eight-week course on economics and business cohort of developing country researchers, specializing journalism is now offered through WBI's Distance in institutional and regulatory reform, to take part in Learning Network. The program's goal is to teach this year long fellowship program starting in May journalists in developing countries to act as educators, 2000. The program, established in 1982, includes a helping to create a more informed citizenry and week long seminar at Bank headquarters that helps enhance the debate on issues of public concern to establish a network of emerging leaders and develop- promote broader development. Many WBI traditional ment thinkers, courses are now adapted for distance learning in order to economically reach more students for whom the Visit www worldbank.org/wbi/scholarsh/is/McHomePage2.html training would be useful. for more on the Fellowships Program Tim Carrington. 202-473-8133 "1P WORLD World Bank Institute The World Bank www.worldbank.org/wbi BANK Vinod Thomas, Vice President 1818 H Street, NW Email: wbi_infoline@worldbank.o aW r|INSTITUTE Washington, DC 20433 Hotline: 202 458 2498 Name II;YZ ;MR r i.t Outreach Tete Organization: ~~. 1J¶¶1r.ii Order Form Adoress:_ 1111;m print/type all information C:ty and State/Province._ YifTA: boxes that apply Country ZIP/Postal Code:_ Phone: Fax: * YES, sign me up for E-ma l:: Development Ou-treach for the rest of 2000 for just Payment Orders from indiv duals must be accompan ed by payment or credit card *nformation P ease oo not send cash $12. unde.rstand that this D_ Check no In the amount of $_ s enclosed. When ordering directly from the Worod Bank maKe subscription includes the check payable in U.S. funds only drawn on a U S bank to The World Bank first two issues in 2000 absolutely FREE.* r Charge $_ _ to my: D American Express ] Mastercard E VISA * YES, also sign me up for Card no. Development Outreach for Name as it appears on the card (required for cred t oharges) 2001 for just $24 (four issues per calendar year)* Signa.ure *Note. Please note that Fj Bill me. Institutional customers in the US only Please Include purchase order. Development Outreach subsrptosare for a P.O. Box7247-7956 [ subscriptionsarefora Mail orcer to The Word Bank, P.O. Bcx 7247-7956, Ph ladelph a, PA 19170-7956, USA calendar year (January- Fax order to. 201-476-21 97 Philadelphia, PA December).- Telephone order to. 201-476-2192 19170-7956 Questions? E-mail us at books@worldbank org USA Development Outreach The World Bank PO. Box 7247-7956 Philadelphia, PA 19170-7956 USA IST INTFINATIoNAL WORKSHt 1 ON Development OUTREACH APPLYING INTERACTIVE LEARNING is expanding its reach. TECHNOLOGIES (ILT-1): Now availableonine atS rPRACTICAL TOOLS FOR IMPROVING Now avai'lable onli'ne at TRAIN ING Q_UALITY www worldbank. org/ devoutreach SINGAPORE: AUGUST 21 - 30, 2000 Interact The through World the Internet! EUnk * Email the magazine's Editor Singapore * Contribute to Voices from the Field department Polytechnic * Send us feedback on articles and issues \Wo,ldi ra.1, I,stitute (WBIU/lthe \%ro,ld r-.k in partnershipseith Sing;t- PDroe PosYte,C1,it ixill organize thi \`V,rksho-p as a collaborative Iclarnig * Participate in the Development Forum .pl.^l];.itN rtr;, ........ ngexccutis/(sirtCtors sen;rtrti,.erSlr.iv fr tai- dialogues tion pla,iners, thrirsigh real an- virtUtal -'(,up interactions. tot stodY the [rrojreI appli-ations am I Utili-ati-n of into,.tae Ie:oniflg te-hnologies * Answer polls on relevant development topics (I lmg o ainpros ngraji"ai; e-l,c;ati6rrni 'tolit-d )rmritrg this 3-phase \Workshop, participant, will tleveiop their morn Strategic Plan tsr lI,T titi- This is your chance to tell us what you think. Iizatiotr in stippor t ol their inlztiutoos' Islearning,'em;tinittg 1rc°ra l. Link to other sites and expand your knowledge Phase-]: Pre-Workshop Internet/Web-based Briefing (3 stek, starting; AUtgLot 1, 200(1 at ossn trctinng instirttoe/ 1hoe- lOtte) Phase-2: Peer Learning and Grnup Training www.worldbank.org/devoutreach PhIc3 Post A Lugust 21 Fr cc)O, 20e0n Coacihing Service (3 mnotlrih: Seprtnlter Ntvttl,er 2000) at or,n tra-ninrr ; i inst it Li t,/hctn-lia.e .c FL'- ab 1e [r' A\ '-i'I.-.ii i- K I h .ltoplrrrgatrztc I) a-qrtX .rt mtl' r'ilt \Vte1'itl It.nhi Ililclti^e (rAItTO 5WQ-~BANK INSTITUTE ~~~~~~~ ~~~~~~~~~~~~ ~~~~~I-TmUT tirzo/rede r,r rrtili,atio tm /m. itc6h/tiartin re ho'oie (iL lT rt6rra p,i caitilL , pl1air Mittl/ c S,1,1: =2 tmttttrttrer g Iu.lu; it C ertm lltirl, (Sirr P I .tIi,trre srt.Iit 0~~~~~~~T ; o~ 7*2 E le>.(),/-il 1. 11 I^, 1', Iz,il1l1(os,1o ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~(trt*r s f llrth, !' -sint,\IIl.l; Setttitr It rrrrit _ tIll & 1RO ut tttr',attto ;NLrtra......................gt ,Vavigatimg the path to resu.tsXli tiu .tirt l \irll t, X b S .~ ~~~~~~~~~~~~~~~~~trra I,.a;,l:im:e,,l rtitll tir''llsrll,lln-)l W k H tO 'l W LE r S I I L: -I \ \ WW W . W C)RI D A N ()R(r/WL1 /1 IIT- I Independent, quality eva W7orkshop Sponsors Quality training ni evaluation Micrsoft REUTERS Evaluation capacity building forbett '' | IKONOS fNTTCommunications new media NTl Sing.pore Pte. Ltd. ROME IWASHINGTON Visit us at wwwworJdbank.org/wbI_/eva 't'1 ~ Hotel Phoenix An IBM Company sot ~~~~~~~~Singapore . ' I I 3rd Trainers' Workshop on Improving Training Quality (ITQ-3) I I *~ I I I I ii through Peer Learning and Distance Mentoring Is __=_ ID li IMarch 20, 2000- March 2001 The World Development Indicators 2000 mWorld B (Print Edition and CD-ROM) Special Package Savings World Bank Institute (WBI)/the World Bank, in partnership with the Continuing Education Center (CEC)/ Asian Institute of Technology This year's edition of the World (AIT), and College of Education, University of Illinois, will organize this ITQ-3 workshop as a collaborative learning opportunity for senior trainers Development Indicators to study and work together, through real and virtual group interactions, to includes more than 600 improve their mastery of innovative training design, curriculum develop- indicator for 148 ountrielsment and learning methods applications. This problem-solving and output indicators for 148 countries oriented training program will be delivered in 5-phases: plus basic indicators for a ~~ '~'~ countries. The ~ Phase. l Pre-Workshop Internet/Web-based Briefing & Discussion further 62 countries. The (I month: starting March 20, 2000 at own institution/home-base) 2000 edition retains its Phase-2: Peer Learning & Group Training Activity basic thematc .(2.5 weeks: April 17 - May 3, 2000 at CEC/AIT, Bangkok, Thailand) _ basic thematic Phase-3: Distance Mentoring through Online Coaching presentation with the data (6 months: May - November 2000 at own institution/home-base) Phase-4l: Peer Review: Results Demonstration and Experience Sharing organized into six (I week: November 20-25, 2000 in Penang, Malaysia) thematic areas -World View, People, Environment, Phase-5: Institutionalization Process: Free After-Training Consultation Service Economy, States and Markets, and Global Links. (3 months; December 2000- March 2001 at own institution/home-base) This workshop is organized as part of the World Bank Institute (WBI) s The CD-ROM edition gives you 500 time-series indicators Knowledge Utilization through Learning Technologies (KULT) program for 210 countries plus regional and income groups. It Forfarther inforation on tbhi Workshop and/or to obtain the Application Form, plea-e contact. provides definitions, source information, and all text from Dr. Ronny Adhikarya, Senior Training Off. & KULT Program Manager current and previous print editions. The CD-ROM lets you World Bank Institute (WBI) retrieve data in spreadsheet format, display maps and Dr. Nicanor C. Austriaco, Executive Director graphs, and export data into many popular formats. Continuing Education Center (CEC), Asian Institute of Technology (AlT) Fax: (66-2) 524-5247 or 516-2126, Email: salvador@ait.ac.th Print Edition: April 2000. Stock no. Al 4553 Or visit the workshop Website at: (ISBN 0-8213-4553-2). $60. wwworldbank.org/wbi/itq-3 Print Edition and CD-ROM (Single User Version) Set: Workshop Sponsor Stock no. A31698. $295. CD-ROM (Single User Version): April 2000. Stock no. A14554 (ISBN 0-8213-4554-0). $275. IU SC.TELEKOM UNIVERSITY SCIENCE MALAYSIA CD-ROM (Network Version): April 2000. Stock no. A14555 (ISBN 0-8213-4555-9). $550. ACeR 4+ Indispensable resources from the World Bank for economists, investors, scholars, and anyone who wants to truly understand today's changing world. s, CWFEERENCA ER GO*den Sankds Rmr-t / DA ri~a~El .............................................................. ....... ... .. .. ... .. .. .. .. .. .. .. .. . World Bank Publications, P.O. Box 960, Herndon, VA 20172-0960, USA T a | ; 3 Telephone: 703-661-1580 or 800-645-7247 Fax: 703-661-1501 AIDO E U I~~~~~~~~~~~~~~~~~~.....I I ~~~~~~~~~~~~~~~~~EXPRESS INTERNATIONA TRAWL ITO.