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Business Machine KWEAS meeting

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by

Stephan Brun

on 6 November 2014

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Transcript of Business Machine KWEAS meeting

Personal
observations

BM Vision
One year work with an NGO for street children in Ethiopia
Discouraging:
Poverty despite huge number of NGOs
Initiative does not pay
Best jobs are in the "unproductive" sector
No honest cooperation
Encouraging
Progress is visible
Many needs not satisfied
Young and motivated people
Willingness for change
In the long run, social and ecologic progress can only be secured by (economic) progress.
Economic development is based on private initiative and innovative and courageous people (entrepreneurs).
In a globalized world, development does not happen from inside only. There is a need for cooperation.
Nowadays, not only international enterprises, but also individuals can make a difference, if they act in networks.
Given the big challenges, a single project is not enough, we need a "machine" that produces economic development.
Successful cooperation is based on mutual interests, not on dependency.
Holistic approach
+
Encouragement
Procedural know-how
Expert knowledge
Capital
Networks
Business Projects
Direct involvement of partners
2 out of 3 projects are ready to start
Bottom up approach
Top down approach
Not yet clarified
Bern, 7th of July 2012
3
4
BM concrete
6
Some statistics
1'104'300 km
41'277 km
26.75 : 1
93.8 Million
7.7 Million
12.18 : 1
2
2
84.9
186.5
Population per square kilometre
KWEAS Meeting
0-14 years
15-64 years
65 years and older
46.3%
51%
2.7%
15.2%
67.8%
17%
16.8
41.7
Median age
Population growth rate
3.179% (5th rank)
0.199% (176th rank)
349 years
22 years
Gross domestic product (GDP)
30.5 Billion USD
665.9 Billion USD
GDP per capita (PPP)
1'100 USD
43'400 USD
working 1 year
working 9 days
=
Aid as a percentage of the GPD
10.8%
0.5%
Government
expenditures
5.988
214.5
billion USD
~3.3 billion USD
GDP growth rate and inflation
2009
2010
2011
10%
8%
7.5%
-1.9%
2.7%
2.1%
Catch-up time: 75 years
(assuming equal population growth)
1
Aid and you
?
Stop aid!
Increase
aid to 0.7%
New forms
of aid
Business as
usual
2
"[...] foreign aid foments conflict. the prospect of seizing power and gaining access to unlimited aid wealth is irresistible." (Dambisa Moyo - Dead Aid)
„Was die Fundamentalkritik [an der Entwicklungshilfe] politisch wirklich erreichen kann, wäre die Kürzung oder Streichung der entwicklungsorientierten Hilfe. Der ganze Rest dubioser, machterhaltender, profitorientierter Auslandzahlungen würde weiterlaufen.“ (Peter Niggli: Der Streit um die Entwicklungshilfe: Mehr tun, aber das richtige)
“[…] human progress has, on balance, been a good thing and […] despite the constant temptation to moan the world is as good a place to live as it has ever been for the average human being […]” (Matt Ridley: The Rational Optimist)
Skeptic but not cynic
How can I personally cope with the differences that distinguish the lives of my friends in Ethiopia from mine?
an ongoing experiment
Criticism and
alternative
approaches

The aid industry
Aid = the problem
Too few aid
Alternatives?
Aid bureaucracy
Money goes back to the donor countries
See for example "Lords of Poverty"
Machines without spare parts
Conferences instead of aid
Conditional aid
Remittances: 374 billion USD (2012)
Aid of DAC countries: 133.5 billion USD (2011)
Military expenses: 2'157 billion US
Net capital flows to developing countries: -557 billion USD (2010)
If there was the unique brilliant idea, somebody would probably have found it a long time ago...
Crowding out of exports
Absorption of the best brains
Support corrupt governments
Doubtful effects
Aid as political tool of the west
infrastructure
ever changing trends and questionning:
industry
trade, not aid!
millennium goals
micro finance
knowledge transfer
innovation
???
5
economic
social
Discussion
7
What kind of cooperation?
Your own experiences
Good examples
Bad examples
Business for development?
Full transcript