IMPLEMENTATION OF POLICIES AND PROGRAMMES
TOWARDS COMPETITIVE SUSTAINABLE DEVELOPMENT
FOR NAM MEMBER COUNTRIES

 (Bandar Seri Begawan, Brunei Darussalam, 28-30 January 2002)

 

 INTRODUCTION

The Expert Group Meeting was jointly organized by the Non-Aligned Movement Centre for South-South Technical Cooperation (NAM CSSTC) and the Institut Perkhidmatan Awam of the Prime Minister’s Office, Brunei Darussalam. The Meeting was financed as part of the annual contribution of the Government of Brunei Darussalam to NAM CSSTC.

At the turn of the century, at Durban, South Africa, the Heads of State or Government of the Non-Aligned Movement (NAM) decided that the eradication of poverty in NAM member countries should become the over-riding goal during the twenty-first century. The eradication of poverty should be based on rapid and sustainable economic development and, in that context, the implementation of major policies and programmes to enable the poor to take advantage of opportunities to earn higher and higher income so that they could lift themselves out of poverty.

During the more or less half of a century period of political independence[1], the performance of NAM member countries in managing to have rapid and sustainable economic and social development has varied greatly. Some have been successful in attaining rapid and also apparently sustainable development, but unfortunately most NAM countries have not been able to do so. Then came the onslaught of the financial crisis of 1997. NAM countries that were growing at such high rates suddenly succumbed; but some others, although their growth rates were affected, withstood the crisis and recovered rapidly in resuming their economic growth performance. What made the difference? During this era of globalization, the countries least affected were those that were able to rely on the dynamism of their domestic economy, particularly the competitiveness in international trade, and also to instill confidence, by having stable, transparent and conducive institutions and procedures, to attract investment capital from abroad.

The economic, judicial and political systems that most NAM member countries have adopted have evolved from the systems used by the colonial powers in their respective countries. The systems have been changed, but not necessarily based on the present requirements to make their public and private institutions and practices that are necessary to have stable political and social development and competitive and dynamic economy. NAM member countries might wish to assess for themselves the desirability of making the necessary adaptations and changes in their systems in order to be able to progress rapidly - politically, socially and economically – and on a sustainable basis in order to gain their rightful places in the world community of nations. One of this changes required is to establish what is called good governance.

This, and other reform processes, is the more necessary, even imperative, in the long-term context, since the rapid technological developments in the developed countries are bound to increase the economic, military and political gap between them and the developing countries. Bearing in mind that NAM member countries are so diverse in their historical heritage, social and cultural values and political systems, it is hoped that the wealth of experience, ideas and recommendations regarding this extremely important issue discussed in this Meeting among country participants and resource persons from NAM member countries in Africa, Europe, West-, South- and East Asia, and Latin America could be useful for the consideration of decision-makers in NAM member countries that would like to undertake the necessary changes required in this twenty-first century.

 

PUBLIC GOOD GOVERNANCE: GOALS AND STRATEGIES

The Meeting emphasized the need for Governments and society to identify the goals for sustained development clearly and these should include: 

Development paradigm which aims at accelerating economic growth with poverty reduction, job creation, equity, participation, empowerment, cultural enrichment and sustainable economic and social development. Economic and environmental goals need to be integrated in governmental policies and projects.

  • Establishment of good governance.

  • Identifying strategic economic sectors, such as agriculture, textiles and clothing, and information and communications technology.

  • Putting emphasis on education, health and infrastructure that are essential for being able to participate fully in globalization.

  • Build technological development capability.

  • Forming industrial clusters in strategic sectors, among developing countries and under a regional co-operation framework.

  • Initiating global thinking and global action for crisis prediction, prevention and management.

 The Meeting identified, among others, the following strategies, policies and programmes for consideration:

  • Dialogue and the establishment of economic co-operation schemes among developing countries.

  • Evolve textiles and clothing integrated sector among developing countries.

  • An exchange programme of teachers, experts and students to intensify interaction on development cooperation issues.

  • NAM joint research programmes on issues to be discussed under the new working groups in the World Trade Organization on (a) Trade, Debt and Finance and (b) Trade and Transfer of Technology.

  • An expert group needs to be set up for WTO Singapore issues: Trade and Competition, Trade and Investment, Trade Facilitation, and Government Procurement.

  • Rules of origin formulation in regional, bilateral and multilateral trade agreements.

  • Launch common information and communications development policy among developing countries.

The meeting put special emphasis on the need for developing countries to focus on the development of the information and communications sector, since the process of globalization will be dependent on the use of this technology. The Meeting therefore recommended that:

  • NAM member countries be encouraged to formulate transparent and consistent strategies, regulatory framework and policies relating to ICT so as to enable them to better participate in the globalization process by inducing development and investment in relation to ICT-based products and services, and

  • NAM CSSTC facilitate the development of strategies and programmes towards helping NAM member countries by means of technical cooperation.

 

PUBLIC GOOD GOVERNANCE: PARTICIPATION AND CONSENSUS-BUILDING FOR GOOD GOVERNANCE AND SUSTAINABLE DEVELOPMENT

 

The Meeting considered that participation and consensus building as key elements of good governance and sustainable development. Participation was defined as “involvement of the people in decision making in all phases of the public policy process”. It was stressed that “involvement should be ab initio, beginning with the setting of the agenda through to the formulation of priorities and objectives, preparation and implementation of programmes and projects, monitoring and evaluation, and feedback and review”.

Poverty, inequities, e.g. gender, exclusion based on class, ethnicity, caste and related factors, lack of institutions for popular participation and ineffective methods of participation were mentioned as barriers to participation.

           The Meeting felt that there were a number of ways to overcome these barriers. First, democratisation of the institutions of public policy-making and implementation at all levels – national, sectoral and local/community – e.g. national policies should be made through public deliberation on the choices open to the nation. Second, decentralization of authority and institutional reforms that would devolve power closer to the people. Third, developing appropriate methods of public deliberation to enhance popular participation and consensus building. Fourth, promoting pro-poor development strategies with emphasis on rural areas and on equity and women/gender issues. Fifth, organizing the poor and building institutions to support their representation and participation in decision-making and implementation at all levels. Sixth, mobilization of local and international resources, including institutional and technical support and, seventh, raising public awareness of development policies and strategies using mass communication and appropriate information technology.

 

PUBLIC GOOD GOVERNANCE: TRANSPARENCY AND ACCOUNTABILITY

The Meeting was of the opinion that in NAM countries the post-independence government and management institutions were largely inherited from the colonial powers. As such, they were meant to serve primarily the public and private sectors, with government functionaries being given room to cater for self-interest. The self-centered interests of the public official were enhanced and consolidated by the expectations and demands of kin, extended family, tribal blocs and cliques. This tendency, on the part of the public officials, received the blessings of the private sector, and provided a fertile soil for the initiation and prevalence of corrupt practices that became tolerated and legitimised in the socio-cultural value systems of the society. Service delivery was done from a benevolent benefactor and the beneficiary was not part and parcel of the process of policy formulation and implementation. This was one of the key factors that moved the public and private institutions and practices away from political and social stability and from competitiveness as well. It has also deprived such institutions from the dynamism required for introducing changes and developments in economic life.

Transparency was defined by the Meeting as “sharing information and acting in an open manner”. Transparency allows stakeholders to gather information that may be critical to uncovering abuses and defending their interests. Transparent systems have clear procedures for public decision-making and open channels of communication between stakeholders and officials. To increase transparency, a monitoring system needs to be established. The elements of this system could be independent government bodies, parliamentary bodies, non-governmental organizations and the media. Otherwise, corrupt practices would be much easier to undertake.

Corruption is a complex and multifaceted phenomenon with multiple causes and effects, as it take on various forms and functions in different contexts. The phenomenon of corruption ranges from the single act of a payment contradicted by law to an endemic malfunction of a political and economic system. The problem of corruption has been seen either as a structural problem of politics or economics, or as a cultural and individual moral problem.

The definition of corruption consequently ranges from the broad terms of “misuse of public power” and “moral decay” to strict legal definitions of corruption as an act of bribery involving a public servant, and a transfer of tangible resources. In more specific terms, corrupt practices have been defined as “bribery”, “embezzlement”, “fraud”, “extortion”, “blackmailing”, “favouritism”, “cronyism” and “nepotism”.  

Furthermore, public accountability requires that public officials answer to the stakeholders on the disposal of their power and duties, act on criticism or requirements made of them, and accept responsibility for failure, incompetence or deceit. Mechanisms to facilitate public accountability could be inter-organizational, as between branches of government; intra-organizational, as between supervisors and subordinates; and extra-organizational, as when an organization and its functionaries answer directly to customers or stakeholders. Public accountability mechanisms should also be able to address the issues of both who hold office and the nature of decisions by those in office.

To enhance transparency and accountability, the Meeting recommended that the following steps could be undertaken:

  • Develop and cultivate constitutionalism.

  • Uphold the rule of law.

  • Uphold human rights.

  • Provide for performance reward.

  • Provide for the enlightenment and public awareness of citizens.

  • As a deterrent, ensure punishment that fits corruption crimes.

  • Motivate mechanisms to be reliable, coordinated and adequately funded.

  • Build capacity for those formulating, implementing and monitoring programmes and projects.

  • Effective decentralization ensures curbing possibilities of corruption by functionaries in the medium- to long-term.

Once in place, transparency and public accountability can contribute significantly to economic growth and development. Activities in the public and private sectors would be assured because the participants and stakeholders would be fully aware of what is required and what is to be done. They would also be aware and familiar with the role they are expected to play.
 

PUBLIC GOOD GOVERNANCE: UPHOLDING THE RULE OF LAW

The rule of law is the system by which the society is governed by known and transparent rules, which are subject to the interpretation by the Judiciary (courts). The rule of law requires the Government, along with any citizen, to observe the law and ensures that the Government itself is subject to regime of known laws and is accountable to the courts.

The Meeting recommended the following steps to be taken if the rule of law is to be upheld:

  • Real separation of powers among the judiciary, legislature and the executive branches of government.

  • System of checks and balances to ensure transparency and accountability.

  • Acceptance of cultural diversity of people and the elimination of discrimination on the ground of sex, religion, race and colour.

  • Equality of treatment. The rule of law should be applied indiscriminately to rich and poor, from top to bottom irrespective of position within the society.

  • Customary practices should be recognized within the legal framework.

  • Simplified, affordable and timely access to justice.

  • People should be assisted to gain access to the judicial system by having a counsellor and interpreter to assist them along the trial.

  • Protection of vulnerable groups. Women, children, indigenous groups and the poor should be able to exercise their rights and be able to obtain the same advantages as the others.

  • Fundamental rights should be respected. Every person should have the right to education, health, work and be able to express himself/herself freely.

  • Adherence to international human rights organizations and other international institutions. Rights to access to international forums is a deterrent to abuse of power.

  • Freedom of association and support participation in decision making process and in implementation.

  • Civil society empowerment. Local decision making should rest with local people. They should be able to make decision on their own affairs.

  • Dissemination of information to educate the public. The communication of information should be in such a way that is easily understood by the illiterate group and in native languages.

 

PRIVATE GOOD GOVERNANCE

Within the context of private good governance, the Meeting recognized the importance of globalization process which  several issues should be critically taken into account as well. Among others are increasing inequalities due to seriously growing unemployment, challenges of the emerging world trade system, clear lessons from the Latin America and East Asian crisis as well as the financial issues.

The process of globalization that brings about the efficient use of economic resources or an increase in capital efficiency eventually leads to the decreasing demand for labour. As a result, the policy implication is to develop an appropriate public-private policy or a common strategy that would strike a balance between: labour and technology; competitiveness and demand generation; and rich and poor.

The other issue relates to the idea of exploring the common interest or core competencies of respective countries. Hence, countries can develop smart partnership through private to private business development leading to economic growth of the region.

As to the issue of upholding the supremacy of law, there is reference on the case of Mauritius. A number of legislative reforms have been brought about to modernize and revitalize the whole financial sector. No developing country will survive in a fierce competition if its institutions do not adopt as a priority the ethics of corporate governance.

Basic issues raised during the discussion include:

  • Important to uphold a rule of law framework – transparent, clear, fair and implementable.

  • Essential good governance rules need to be embodied in a law with appropriate sanctions.

  • Important to seek common problems and seek solutions on how to move forward.

  • In the corporate governance context, the ethics of corporate governance should be made priority.

  • Business laws and financial systems should be designed in such a way that they allow business to start-up by any individual or organization in a legal manner.

In addition, there are important elements considered by the Meeting which significantly contribute to good corporate governance, i.e.:

  • Competent and resourceful staff.

  • Efficient organization.

  • Clear goal-setting and strategy formulation.

  • Transparency and accountability.

Specifically to ICT sector, the advancement in ICT infrastructure has resulted in an unprecedented level of worldwide communication and information sharing. Today we are witnessing the steady growth of information based commerce, thus creating a new era of globalization.

All countries intending to be part of the global business community by using ICT for sustainable development, recognize that there is an urgent need to create a conducive, facilitatory and reliable regulatory environment to face challenges posed by the new era of globalization.

However, it is apparent that there is a digital divide between NAM member countries. Therefore it is imperative that the countries be encouraged to formulate transparent and consistent strategies, regulatory framework and policies relating to ICT so as to enable them to better participate in the globalization process by inducing development and investment in relation to ICT based products and services in the respective countries.

 

RECOMMENDATIONS: FOLLOW-UP ACTIONS BY NAM CSSTC

After deliberation, the Meeting made the following recommendations:

Development of ICT in NAM Member Countries:

1.  NAM CSSTC organize dedicated workshops and seminars to share development experience (between member countries) in respect of the following areas (either separately or combining all areas enumerated below):

  1. The extent, scope, and the types of regulatory reform relating to ICT.

  2. Development of clear and consistent ICT policies.

  3. Laws relating to ICT.

  4. Effective, transparent and consistent telecommunications regulation and/or liberalization.

  5. Developing directions – e-society, e-learning, e-government, e-publishing and e-business.

  6. Formulation of national strategies and partnerships that encourage private sector participation.

2.   NAM CSSTC encourage exchange of experts between member countries to share the ICT based development and management experience as well as advantages of technology related development. For example, share the Hyderabad/Bangalore experience with other NAM member countries.

3.   NAM CSSTC provide technical assistance  and training to the less developed in the field of ICT in order to create favourable market conditions for application of ICT.

4.   NAM CSSTC provide technical assistance to the less developed NAM member countries to develop policies and engage in regulatory reform relating to ICT.

 

Promoting Participation and Consensus Building

  1. NAM CSSTC acts as a forum for sharing knowledge and experiences.

  2. NAM CSSTC develops database on experts, best practices and information on policies and issues.

  3. Advocacy and lobbying at the international level by engaging the World Bank, IMF, UN, WTO on alternative policies.

  4. NAM CSSTC to support the development of appropriate methods of enhancing participation and consensus building.

  5. NAM CSSTC to intensify engagement with non-state actors, i.e. civil society and the private sector in effective pursuit of its mandate.

 

Upholding the Rule of Law

  1. Database collection.

  2. Monitoring groups.

  3. Surveys.

  4. Research.

 


 

[1]     Countries in Latin America have experienced much longer periods of political independence.