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Al-Ahram Weekly 3 - 9 June 1999 Issue No. 432 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 3 - 9 June 1999 Issue No. 432
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Profile Interview Travel Sports People Time Out Chronicles Cartoons Letters New fish in WB waters?
By Sherine NasrThe Comprehensive Development Framework (CDF) is a new development approach recently introduced by the World Bank to help developing countries eradicate poverty. "Poverty remains the most formidable problem faced by developing countries, and its eradication their biggest challenge," said Inaamul Haque, executive director of the World Bank, at a presentation he made last week to Egypt's International Economic Forum, a private body which networks with international financial and business institutions.
Haque spoke of what he termed "two typical development approaches" applied by different countries. "One is the 'high-nose approach' which pursues tough macroeconomic programmes that have a high social cost, and the other is the 'soft-headed approach' which eschews a course of economic development encompassing social justice, political freedom, and human rights." Haque indicated that the two approaches should complement one another so as to attain more concrete results than those of current development programmes.
Haque admitted that the CDF concept is not a novel idea. "We cannot claim to be Columbus discovering America, but we are once more rediscovering and redefining basic realities. The whole concept is about how to teach someone to fish, rather than offer the fish itself."
The new aspect introduced by the CDF approach is that it underlines the importance of partnerships on both bilateral and multilateral levels. "Non-governmental organisations and social institutions should contribute to this approach," said Haque.
Shafiq Gabr
Inaamul HaqueFor the CDF model to succeed, Haque said, several factors must be integrated into developing countries' macroeconomic reform programmes, such as "honest government, a commitment to fight corruption, an effective legal system which in turn establishes a solid financial system, and attention to education and health services and physical infrastructure." Only then, Haque said, can development be interpreted as having improved living standards and the quality of life.
"There is not one specific CDF model which all countries can adopt. Each country decides on the model to apply, as well as what its priority areas are and the pace with which its reforms are to be implemented."
Although 18 different countries have expressed interest in experimenting with the CDF approach, some remain sceptical as to its usefulness.
"Is there really a need for a new concept, and is there time to meditate on new theories at a time when the world is moving too fast for the developing countries to catch up?" queried the head of the Forum, Shafiq Gabr.
Others believe the World Bank has contributed little besides professional reports on developing nations' economies. "But when it comes to practical reality, very little is being done to help these countries find a solution to their deeply-rooted problems," said Fouad Iskandar, a former government official.
Iskandar wondered if the new global order will give developing nations the chance to experiment with this new development approach at a time when they are facing handicaps imposed by foreign debts and restrictions on their trade flows. These kinds of problems make it very difficult for developing countries to apply this approach.
Gabr concluded, "The World Bank is no saviour to the developing countries. The initiative has to be ours."
