Volume X - Issue V - May 2008
Other News Affecting Projects & PM
Turkey joins African Development Bank Reported by Ahmet Taspinar in Istanbul he Board of Directors of the African Development Bank (AfDB) Group has approved the Republic of Turkey’s application to join the Bank Group. The Board also approved the authorization of a special Bank capital increase required to actualize Turkey’s membership. The approval will be presented to the Bank Group’s Board of Governors at the institution’s Annual Meetings in Maputo, Mozambique from 14-15 May 2008. This will enable Turkey to subscribe to the Bank’s share capital and to become the 25th non-regional and 78th overall member of the Bank Group. The Board of Directors had approved Turkey’s bid to join the Bank in 1991 but the approval elapsed due to delays in processing the application. During discussions on the issues at the Board meeting on Wednesday, 26 March 2008 in Tunis, Bank Group President, Donald Kaberuka, cited Turkey’s strategic location between the West and the East as well as the country’s growing interest to do business with Africa as compelling attractions for its admission to the group. Board members also referred to Turkey’s increasing presence in Africa’s economic, educational and cultural domains as an indication of the country’s readiness to support the continent’s development efforts.
Turkey stretches across the Anatolian peninsula in western Asia in the Balkan region of southeastern Europe. Due to its strategic location astride two continents, Turkey has a unique blend of Eastern and Western tradition. A powerful regional presence in the Eurasian landmass with strong historic, cultural and economic influence in the area between the European Union in the west and Central Asia in the east, Russia in the north and the Middle East in the south, Turkey acquired increasing strategic significance. Turkey has a population of 70.5 million (2007) and GDP growth rate of 7.4% from 2002-2007. Currently, the AfDB Group is composed of 53 African (Regional Members) and 24 Non-Regional members -- Argentina, Austria, Belgium, Brazil, Canada, China, Denmark, Finland, France, Germany, India, Italy, Japan, Korea, Kuwait, Netherlands, Norway, Portugal, Saudi Arabia, Spain, Sweden, Switzerland, United Kingdom and United States of America. The AfDB plans to be the continent’s premier development finance institution and the preferred channel for development financing to the continent. Source: AfDB press release, March 29, 2008
Mobile Phones approved for use on Planes in Europe According to a report in the BBC today, mobile phones can finally be used on commercial flights in the European Union. Use of mobile phones by passengers will now be allowed on flights within the European Union under rules set by the European Commission.
According to the story, “the decision means that mobiles could be used once a plane has reached an altitude of 3,000m or more. It follows six months of consultation by the European regulator and the first services could launch next month.” Consumers are advised to keep phone calls short, as rates may be high and users may receive large phone bill. A new system of receivers is being set up to handle the anticipated increased volume of phone calls from the air. For more information, visit http://news.bbc.co.uk/1/hi/technology/7334372.stm. Editor’s note: This is good news! Hopefully the USA and other parts of the world will follow suit! Good communication is critical for successful project management, especially on global programs and projects where travel is frequent. We at PMForum applaud this change in Europe that will help project managers be more successful there.
UN Official says more Meteorological Projects Reported by Getachew Alemu in Addis Ababa The head of the United Nations World Meteorological Organization (WMO) said that “Given Africa’s vulnerability to climate change, variability and extreme weather events, better meteorological services are crucial for its development and the struggle against poverty,’ The statement was made in Addis Ababa, Ethiopia on April 2, 2008. .
“African National Meteorological and Hydrological Services must be seen as actors of development,” Michel Jarraud (pictured), the WMO Secretary-General, told a conference of finance and economy meeting in Addis Ababa under the aegis of the African Union (AU), which is headquartered there. “They have an important role to play in regional and international action plans, particularly with regard to evaluating and monitoring the environment, preparing for natural hazards, agricultural production, water resources and, particularly, climate change,” Mr Jarraud continued. According to a WMO press release, many African countries are among the world’s least developed and consequently are the most susceptible to threats posed by meteorological and hydrological disasters, such as drought, flooding, cyclones, dust storms and other extreme weather events. In February, for example, Cyclone Ivan caused catastrophic floods in Mozambique and Madagascar, resulting in enormous losses in human life, agricultural production and property. Drought has plagued many countries across sub-Saharan Africa, causing water shortages and damaging crops and threatening food security. But if more is invested in developing the observational capacities of their national meteorological and hydrological services, improved weather forecasts, improved early warnings of imminent natural hazards and climate change can be made available to decision-makers and end-users, the agency said. Mr. Jarraud said that at present, however, African meteorological services are far from ideal to perform those critical functions. "Serious gaps still exist in observation networks, often due to instrument and systems failure, as well as the high costs of operation and maintenance," he said, urging that African leaders focus on fixing the problem. "Leaders can promote this by investing in and developing methods that can assess the socio-economic advantages of national meteorological and hydrological weather services," he proposed. Source: UN News Digest, April 2, 2008.
PMs Pledge to Boost Transport, Power, "Mekong region premiers meeting in Laos on March 31 pledged to strengthen transport, power and telecom links between their six countries, saying closer integration will boost trade and development. The prime ministers of China, Thailand, Vietnam, Cambodia, Myanmar and Laos vowed to 'deepen our economic cooperation and integration efforts,' at their Vientiane summit with the Asian Development Bank (ADB).
They also pledged, in a joint declaration after their closed-door meetings, to jointly tackle 'the emergence of health risks, human and drug trafficking, and growing environmental threats, including those posed by climate change.' [Agence France Presse (03/31)/Factiva] AFX notes that "China and its neighbors in the Greater Mekong Sub region (GMS) have agreed on a five-year plan to spur growth, environmental protection and social development in the region, the Asian Development Bank said. Under the plan, the six countries will accelerate the construction and improvement of transport corridors in the Mekong region, including a rail link between Singapore and Kunming, the capital of southwest China's Yunnan province. ..." [AFX (03/31)/Factiva] In an interview with Xinhua, ADB President Haruhiko Kuroda "...highly praised the fruitful gains GMS economic cooperation had achieved since it was initiated in 1992, especially in the fields of transport facilitation, connectivity, power, trade and water usage. ...Economic competitiveness is being improved through better infrastructure links, which also can protect biodiversity and ecosystems. ..." [Xinhua (03/30)/Factiva] Source: World Bank Press Review for March 31, 2008
Management Reform at the UN! Secretary-General Ban Ki-moon has called on Member States to support proposals to further strengthen the United Nations, particularly in the areas of procurement, accountability and human resources, as the General Assembly began a two-day debate on management reform on 9 April 2008 .
“The only way we can embrace that future and do our good works in the world is to make ourselves more modern, more flexible and more efficient. In a word, to be better managed,” Mr. Ban (pictured) told the 192-member body. He noted that the Organization is being called on, as never before, to do much more with fewer and fewer resources. “All the critical activities that the United Nations carries out around the world, all of the groundbreaking studies and initiatives, all of the intensive diplomacy – just about everything we do hinges on sound management of the limited resources entrusted to us,” he stated. Mr. Ban stressed the need to do more in the area of management reform, which is essential to enabling the UN “to keep pace with the growing demands upon us. We have to be open to scrutiny. We have to hold each and every person accountable to you, the Member States, and to the global taxpayers.” Over the past 10 years, the Assembly has discussed and agreed to a number of reform initiatives to make the UN more effective and efficient, including the establishment of the Ethics Office and the post of Chief Information Technology Office. In addition, it has upgraded accounting standards, strengthened procurement practices, and helped set up a new system to administer justice in the Secretariat. Stressing the need to go further and “take on more difficult challenges in better managing our United Nations,” the Secretary-General outlined a series of measures to make the Organization more modern and keep up with changing times. He emphasized that the UN needs an integrated, multi-skilled and mobile global workforce, and, to achieve it, it must streamline its contractual arrangements and improve conditions of service. It must also be able to recruit staff more quickly than at present. Other proposals include improvements in the selection of top managers and in promoting mobility for staff, as well as setting up a Learning Advisory Board to ensure relevant staff training. He added the Secretariat has developed a comprehensive information and communications technology (ICT) strategy which it will present to the Assembly next month. The Secretary-General also stressed the need for accountability, which he said is the “heart of effective management,” and he said the key to enhancing accountability is a strong commitment to transparency. “The image we wish to project is of an organization that has nothing to hide, that actively welcomes the scrutiny of its members, staff and the public.”
Echoing Mr. Ban’s comments, General Assembly President Srgjan Kerim (pictured at left) said that “a more effective United Nations is an essential part of bridging the gap between the global public’s high expectations and our ability to deliver. All our reform efforts are fundamentally about improving the image, authority and relevance of the United Nations.” In discussing how to improve the effectiveness of the UN, he highlighted three important issues – the way mandates are formulated, implemented and evaluated, the planning and budgetary process, and the management of human resources. Source: UN Daily News Digest, April 9, 2008 Editor’s note: While the above report does not specifically mention project management, the issues are those for which modern PM grew up – achieving more with less, effective reporting and accountability, improved communications and leadership. We at PMForum applaud the UN for including management reform as a fundamental aspect of improving quality and effectiveness of the organization. When they finally perceive program and project management as the empowering and powerful approach that they are, wonderful results will occur. i.e. more successful programs and projects!
World Bank says Rich Nations way behind on Pledges According to the World Bank on Friday, April 4, "Overseas aid crawled higher last year but left most rich countries well behind successive pledges they have made to increase assistance to the developing world." Stories in the global press reflect this condition.
Figures released by the Organisation for Economic Co-operation and Development (OECD), obtained by the FT, show that excluding one-off effects of debt relief, which can cause large year-on-year movements in the data, aid increased by 2.4 percent. OECD member countries gave on average 0.28 percent of their national income in aid in 2007, well below the 0.7 percent target set by the UN. In real terms, overall net aid from the world's rich countries fell 8.4 percent last year to $103.7 billion. ... The US gave the least as a share of national income, 0.16 percent, with the UK at 0.36 percent, Germany at 0.37 percent and France at 0.39 percent. ..." [The Financial Times (UK)] Reuters reports that "Development aid from the EU's 27 countries fell last year, the bloc's top aid official said on Friday, urging governments to live up to their commitments to give more to poor nations. EU aid amounted to EUR 46.1 billion euros ($72 billion) in 2007, down about EUR 1.7 billion euros from 2006, officials said, adding that other major donors had also failed to fulfill their pledges.
'2007 was a serious failure for financial aid to development,' EU aid and development Commissioner Louis Michel (pictured) wrote together with Luxembourg's aid minister Jean-Louis Schiltz, in a letter obtained by Reuters. ... Aid relief from major donors had grown in previous years thanks to debt relief packages for countries such as Iraq and Nigeria. One EU official said last year's reduction was largely explained by the end of the rise in debt relief. ... 'The EU is still the biggest donor in the world, with Official Development Assistance amounting to EUR 93,' the official said, adding aid was equivalent to EUR 53 per person in the United States and EUR 44 in Japan. ..." [Reuters/Factiva] The Independent notes that "The UK seems to be sticking to its commitment to international development. Open House can exclusively reveal that the Department for International Development (DfID) will announce tomorrow figures confirming that the UK will reach an EU commitment to spend 0.7 per cent of gross national income on aid in 2013, two years ahead of schedule. ... The UK's aid giving has been boosted by a cash injection by the Treasury last year, with DfID's budget increasing by 11 per cent each year until 2011. It will push the UK's total spending on aid to over GBP 9.1 billion by the end of the decade, the highest level in the country's history. Increased aid spending has also seen the UK become the biggest donor to the World Bank, overtaking the US. It will give the bank $4.3 billion over three years, topping the $3.7 billion pledge by the US. ..." [The Independent (UK)/Factiva] AFP reports that "British charity Oxfam released Friday figures on aid spending showing that rich countries had broken promises made to substantially increase assistance to developing countries. ... 'These figures don't lie,' said Jeremy Hobbs of Oxfam International. 'They show a clear lack of leadership on bringing much needed funding to poor countries.' ... 'We must see emergency plans announced to rapidly increase aid at the G8 this summer.' Oxfam used figures from the OECD for its development spending data." [Agence France Presse/Factiva] Source: World Bank Press Review, April 4, 2008.
World Bank says Rich Nations way behind on Pledges According to an IMF press release on 8 April 2008, progress toward nutrition, health, education, and other development goals is off track. A new World Bank-IMF report warns that most countries will fall short on the Millennium Development Goals (MDGs), a set of eight globally agreed development goals with a due date of 2015. Though much of the world is set to cut extreme poverty in half by then, prospects are gravest for the goals of reducing child and maternal mortality, with serious shortfalls also likely in primary school completion, nutrition, and sanitation goals.nuclear development while reducing volumes of waste and the risk of nuclear proliferation. "In this Year of Action on the MDGs, I am particularly concerned about the risks of failing to meet the goal of reducing hunger and malnutrition, the `forgotten MDG'," said Robert B. Zoellick (pictured), President of the World Bank. "As the report shows, reducing malnutrition has a `multiplier' effect, contributing to success in other MDGs including maternal health, infant mortality, and education." The Global Monitoring Report: MDGs and the Environment—Agenda for Inclusive and Sustainable Development stresses the link between environment and development and calls for urgent action on climate change. The report warns that developing countries stand to suffer the most from climate change and the degradation of natural resources. To build on hard-won gains, developing countries need support to address the links between growth, development and environmental sustainability.
"Developing countries need more foreign aid and domestic resources to reach the MDGs. High economic growth and a stable macroeconomic environment remain essential for reducing poverty and increasing investment in health and education." said Dominique Strauss-Kahn (pictured at rights), IMF Managing Director. Progress toward the MDGs differs dramatically across countries, regions, and income groups, the report says. Sub-Saharan Africa lags on all counts, including the goal for poverty reduction, though many countries in the region are now experiencing improved growth performance. At the country level, most countries are off track to meet most MDGs, with those in fragile situations falling behind most seriously. With stronger efforts by the countries themselves and their development partners, most MDGs remain achievable for most countries, the report says. With this in mind, the report lays out an integrated six-point agenda, with strong, inclusive growth at the top. The agenda also calls for more effective aid; a successful outcome to the Doha round of trade talks; more emphasis on strengthening programs in health, education and nutrition; and financing and technology transfers to support climate change mitigation and adaptation. "This year's high level meetings in connection with the MDG halfway point provide an opportunity to agree on priorities for action and milestones for monitoring progress," said Zia Qureshi, lead author of the report. Halfway to 2015 - Fast Facts (according to the report):
Source: IMF Press Release, April 8, 2008. Editor’s note: While many readers may have mixed feelings about the Millennium Development Goals, right or wrong, too large or too small, etc., we recognize that most of them can be achieved only through the application of program and project management. We think this is a sector currently underserved by the professional project management community and encourage governments, multi-lateral agencies and professional PM associations to cooperate and to promote more modern PM. With modern PM, more can be achieved with the limited resources that are available for such ambitious and positive goals. . World Bank Endorses $476 Million Loans "The World Bank Board of Directors has endorsed a decision on extending loans totaling $476 million to Azerbaijan. The World Bank will lend $450 million to Azerbaijan to improve its rail infrastructure, $15 million to finance the Azerbaijan Rural Investment Project (AZRIP), and $11 million to help the country switch to international accounting standards, a Bank spokesperson told Interfax. ..." [Russia & CIS Business and Financial Newswire (03/29)/Factiva]
Azer-Press writes that the first loan "...for Rail Trade and Transport Facilitation Project aims to improve railway services in Azerbaijan, as well as the competitiveness, financial sustainability, operating and cost efficiency, and capacity of Azerbaijan Railway in particular along the transport corridor toward Georgia... The main aim of the [second] project is to strengthen accountability and transparency in financial reporting for the public and corporate sectors in line with international best practices. ... The third project ... [aims] to scale up assistance to households in rural communities-completing micro-project investments-to achieve improved living standards through improved access to infrastructure services." [Azer-Press (03/29)/Factiva] ABC.AZ Daily News adds that "...Due to approval of these projects the World Bank Group has increased its portfolio on Azerbaijani from $1.072 billion up to $1.548 billion." [ABC.AZ Daily News (03/29)/Factiva] Source: World Bank Press Review, March 31, 2008 Worldwide Food Price increases forecast through 2009 According to the World Bank, higher food prices are threatening recent gains in overcoming poverty and malnutrition, and are likely to persist over the medium term. This was according to a new World Bank Group policy note released on Wednesday, 9 April 2008.
“Poor people are suffering daily from the impact of high food prices, especially in urban areas and in low income countries,” said World Bank Group President Robert B. Zoellick (pictured). “In some countries, hard-won gains in overcoming poverty may now be reversed. As an international community we must rally not only to offer immediate support, but to help countries identify actions and policies to reduce the impact on the world’s most vulnerable.” According to Rising Food Prices: Policy Options and World Bank Response, increases in global wheat prices reached 181 percent over the 36 months leading up to February 2008, and overall global food prices increased by 83 percent. Food crop prices are expected to remain high in 2008 and 2009 and then begin to decline, but they are likely to remain well above the 2004 levels through 2015 for most food crops. For many countries the impact of rising food prices risks undermining the poverty gains of the last 5 to 10 years, at least in the short term. For example, in the case of Yemen, estimates show that the doubling of wheat prices over the last year could reverse all gains in poverty reduction achieved between 1998 and 2005. “The poor are not just facing higher food prices but also higher energy costs, which is a worrying combination,” said Danny Leipziger, World Bank Group Vice President for Poverty Reduction and Economic Management (PREM). “Policy responses to protect the poor from food price rises are urgent, and need to be designed in a way that is conducive to stimulating greater agricultural production in the long run.” Increased bio-fuel production has contributed to the rise in food prices, according to the report. Concerns over oil prices, energy security and climate change have prompted governments to increase bio-fuel production and use leading to greater demand for raw materials including: wheat, soy, maize and palm oil. Food price hikes are also linked to higher energy and fertilizer prices, a weak dollar and export bans. The report says that measures that seek to stimulate food grain supply are essential over the medium-term, and include strengthening basic infrastructure (transport, power and irrigation) and investing in agricultural technology. The World Bank Group is helping countries by:
Last week, Zoellick called for a New Deal for Global Food Policy to focus not only on hunger and malnutrition, access to food and its supply, but also on interconnections with energy, yields, climate change, investment, and the marginalization of women. Source: World Bank Daily Alert & Press Release, April 9, 2008 Editor’s note: So what does this have to do with project management? Two points: (a) there will be an increased emphasis worldwide in the near term on funding projects and programs related to agriculture, food production and related infrastructure; and (b) in those countries and on those projects (i.e. mining, green field construction, oil field, etc.) where employee living costs are considered normal operating expenses, those costs (and needs) are increasing, so program and project costs will increase, with related social and psychological issues for leaders to deal with.. EITI++ - New global Initiative to increase transparency World Bank Group President Robert B. Zoellick announced in Washington, DC on April 12, 2008 a new initiative to help developing countries manage and transform their natural resource wealth into long-term economic growth that spreads the benefits more fairly among their people. The Extractive Industries Transparency Initiative Plus Plus (EITI++) will seek to develop national capability to handle the boom in commodity prices, and channel revenue streams into fighting poverty, hunger, malnutrition, illiteracy, and disease. "Revenue windfalls from high commodity prices must translate into tangible improvements in the lives of poor people living on the fringes of the global economy," said Mr. Zoellick in launching EITI++ at the Spring Meetings of the World Bank and International Monetary Fund. "The EITI++ will help client countries to build capacities to draw sustainable benefits from their natural resources."
With commodity prices at historic highs, new opportunities are opening up for some countries, especially in Sub-Saharan Africa. However, effectively managing revenue windfalls to generate growth and overcome poverty remains a challenge. The original EITI called for the full publication and verification of company payments and government revenues from oil, gas, and mining. Since sustainable development requires paying attention to the whole process of natural resource utilization, EITI++ complements EITI’s focus on transparency in reporting revenues. It will provide governments with a slate of options including technical assistance and capacity building for improving the management of resource-related wealth for the benefit of the poor. Through technical assistance, EITI++ aims to improve the quality of contracts for countries, monitoring operations and the collection of taxes and royalties. It will also improve economic decisions on resource extraction, managing price volatility, and investing revenues effectively for national development. Two mineral-endowed countries, Guinea and Mauritania, have already requested support in implementing the EITI++. Other resource-rich, low-income countries have also indicated interest in EITI ++. While the initial focus is on Sub-Saharan Africa, EITI++ will seek to work with all developing countries. Its activities will be funded by a multi-donor trust fund that can respond quickly to country needs. Mauritania ’s Minister of Oil and Mining, Mohamed El Moktar Ould Mohamed El Hacen said: "Our new democracy needs transparency and good governance to build trust with the international community, with current and future private investors and also with our population. We welcome the EITI++ because it will help to build this trust.” “We are counting on EITI++ to help us, through transparency and accountability, in realizing the aspirations of the Guinean people and ensuring that all Guineans share in the benefits of natural resource extraction,”said Ousmane Doré, the Guinean Minister of Economy, Finance and Planning. “We welcome the initiative to extend transparency in the oil, mining and gas sector beyond revenues to look at how concessions are awarded, contracts negotiated, and how the money is spent. Civil society has played a crucial role in shaping the EITI and we hope to play the same role in EITI++ because real change for the better depends on us using the information arising to hold governments and companies to account,” said Radhika Sarin, International Coordinator, Publish What You Pay, a coalition of 350 groups working in more than 50 countries.
According to Mr. Donald Kaberuka (pictured), President of the African Development Bank, "The current phase of strong demand for commodities both hard and soft provides African economies a unique opportunity. But it also puts a high premium on avoiding errors of the past. I applaud progress made to date regarding transparency. EITI++ is an opportunity to take a comprehensive approach to managing our natural resources for current and future generations." For more information, visit www.eitransparency.org Sources: Daily World Bank Alert and press release, April 12, 2008. Infrastructure Projects Database available to PM world The Private Participation in Infrastructure Projects Database is a joint product of the World Bank's Infrastructure Economics and Finance Department and the Public-Private Infrastructure Advisory Facility (PPIAF). Its purpose is to identify and disseminate information on private participation in infrastructure projects in low- and middle-income countries. The database highlights the contractual arrangements used to attract private investment, the sources and destination of investment flows, and information on the main investors.
By providing critical data and analysis to government policy-makers, consumer representatives, the donor community, and other stakeholders, the database contributes to the public debate on the private provision of infrastructure. The site currently provides information on more than 3,800 infrastructure projects dating from 1984 to 2006. It contains over 30 fields per project record, including country, financial closure year, infrastructure services provided, type of private participation, technology, capacity, project location, contract duration, private sponsors, and development bank support. This project represents the best efforts of a research team to compile publicly available information on those projects, and should not be seen as a fully comprehensive resource. Some projects -- particularly those involving local and small scale operators -- tend to be omitted because they are usually not reported by major news sources, databases, government websites, and other sources used the PPI Projects database. For more information, visit http://ppi.worldbank.org/resources/ppi_aboutDb.aspx. . |
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