Development despite the market
What does this imply? There is a market place for development. Simultaneously amongst donors at least, there is a great desire to be able to manage development. At least proper management of development projects is something that is a necessity, at least for accountability purposes. Nevertheless development still happens even if projects are managed poorly. For the last two years we had in average 70 international students joining us for a full year, only to learn that development happens despite efforts from many agencies to steer it to their advantage. I personally travel with students through the institutional development landscape engaging them with various discourses on aid and trade, public-private partnerships, civic driven change and you name it. It only goes to show that the world has become a global village and that there really is something like a global development market place.
World Investment Forum
This has also been recognized by those trying to manage Sustainable Development as it evolves towards the MDG deadline of 2015. Sustainable Development is hot. The global development industry is opening its doors to investors to come in and join forces with governments and NGOs in public-private partnerships for sustainable development. This became particularly visible during the recent World Investment Forum organized by UNCTAD in Geneva. Several sessions were held with representatives of the public and private finance industry, some including some international non-governmental organizations. On the third day for example a round table with sovereign wealth funds was held. Sovereign Wealth Funds are state-owned investment funds investing in real and financial assets. Sovereign wealth funds invest globally. Most SWFs are funded by revenues from commodity exports or from foreign-exchange reserve held by central banks. Their total value according to UNCTAD is estimated at 6 trillion dollar. Together with the public pension funds of 18 trillion dollar representing a substantial financial resource base.
Putting up some investment standards for these amounts of funding can make a difference. The question is will states allow oversight over their most important fiscal tool despite the efforts of UNCTAD to draft an Investment Policy Framework for Sustainable Development in Doha in 2012. It is important to see both Norway and China (as two of the biggest sovereign wealth fund managers) present at this round table.
With a special Issues Note UNCTAD tries to table the necessary reforms that should address some of the fundamental flaws of the system of International Investment Agreements. Will UNCTAD and others manage to persuade the investment business to divert its flows to impact development positively? At least sufficient countervailing power needs to be generated in societies to make governments manage public finance in such a way that it delivers for people and planet as well.
And here is where we come in again as educators in the development landscape. If current trends prevail our graduates will need to be fully equipped, not only to function as innovators in the rural space but even as advisors to international fund managers on where to spend their money and how to manage their risks. I am afraid we will need some additional cross-sector partnerships in order to master this new vocabulary and converse with the field of global finance to help reinvent the notion of profit. Our marketing at open days and exhibitions will hopefully bring us a new caseload of critical minds that are motivated to help us redefine management of development altogether.