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I think the basis of the answer is somewhere in between the comments by
David Wood and Matthew Parry. David is very much against this style of
project as there is no implication of "bottom-up" planning in the process
of project design. This may be (and probably is) a fair assumption but we
do not know this for a fact. This is an interesting topic in itself,
certainly in the past planning has been 'top-down' but a full pendulum
swing to bottom-up will probably lead to just as much inappropriate
spending/projects/investment as has top-down. Their must be a compromise
depending on the capacities of government, civil society and the people in
each situation.

The concept of government becoming involved to help institutions develop in
areas where there is significant market failure is valid and justified and
in theory the objective of the RCSP: "to stimulate private sector-led
economic growth in rural areas and smaller cities of Mongolia" is a good
one.

In theory all projects sound great, the reality is nearly always different
no matter how well intentioned designers and implementers are we can not
get around the fact that project aid such as this tends to be negotiated
between governments for governments. Government agendas (commercial,
strategic, political) of both the donor and recipients are the most
important drivers of development project assistance. Governments have to
appease the lobby groups relevant to them, which tend to be both the
internal and external commercial and financial institutions in exchange for
votes (the government market). The added problem is the probability of
government failure.

Although I have no experience of Mongolia given its political and cultural
history, I assume this project will be very much a government agenda
project (including the direct access to rents by the bureaucracy), with a
necessary although not primary goal of providing some positive assistance
in these regional areas.

My personal opinion of this and I would like to hear other people's
thoughts (and references) is that government has a role in the development
of institutions and infrastructure in developing countries because it
provides benefits to the donor country. Donor country governments are not
altrusitic they are driven by collective action and the production of goods
and services in the government market. Government has a role in
humanitarian assitance if society demands it and while individuals are
altruistic (and hence should work through NGOs) society tends not to be. 

I agree with the "wow" of Michael? Yaffey but also believe that we have
role not only because we care but also because in the longterm we will
benefit.

Ian Patrick
University of New England
Armidale, NSW 2350
Australia


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