Tuesday, April 8, 2008

ODA effectiveness

Doing ODA project - dirty business. Want some evidences:

(1) Project A: millions USD budget, financed by WB and some other big donors. Objectives: capacity building for government officers (all countries). Procurement to find consultants for the project with "implied rate of return" to Project Management Unit (PMU) = 20%. That is: consultants who win the project will get pay from the Project. Then, they need to "return" to PMU 20% of the fee they receive for doing consulting work. Of course, consultants know about this, so they privately negotiate the fee (price) and rate of return with PMU. To make profit, they mark up the consultant fee to include the "return" ... So a part of the ODA money (which is supposed to spend on training or facilities to government offices) is channel into some people's pockets.

(2) Project B: financed by some donors, assigned to Ministry of Justice. PMU negotiated with consultants openly that they need to "cut back" at least 30% of their fee, and payable immediately after each payment.

(3) Project C: financed by ADB, infrastructure project for the poor. Project completed. PMU leaders visited the site for "evaluation". Toward the end of the evaluation meeting, the leader informed that there would be a new project on infastructure for the poor and the Ministry is consider some provinces which might be allocated the project. This implies we will consider you if you are "nice" to us. The result: the evaluation team was invited to best restaurants for the following two days; best hotel arrangment; each delegate of the evaluation team received $200 as "farewell present" (not sure how much the leader received, but no less of course). The evaluation team had 15 members. The "farewell present" money came from provincial budget, under "misc items".

And more ...

The number of project currently implementing (and has been implemented) in this country is thousands. Some simple calculation will tell you how much ODA (development money) has been channeled from donors to the rich officers and people who involved in project management, instead of to the poor - the targeted group of ODA.

Effectiveness !!! Big question

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