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The devpolicy blog should have more articles like this. I think it is good to have a blog arguing about 'big picture development', but there are 100s of other blogs doing that. In contrast, there are very few which look into the METHODS of development. More posts on survey techniques, consultation methods, public communications strategies would be really useful contribution to the development blogosphere. And easy way to start would be to create a new tag called 'methods'.

Robin and Margaret - this is an excellent summary of a complex debate. I look forward to the reading the outcome of some of this research. I would like to add something small to the debate. I think (and it is just a guess) that for the least developed of states, especially those which have either come out of conflict or have very small undeveloped private sectors then the PPP approach can work. This is because it is sometimes hard to get more established firms to invest in these countries (I do not include the resource industries here). As a result getting a bit of leverage via a donor like IFC or whoever has two important effects. The first is in terms of getting free access to the donors investment analysis arm. Often countries do not have the human resources to properly undertake a full analysis of highly complex programs, especially in the area of infrastructure. This can be a useful tool for Government officials to deal with some of the less desirable elements of the private sector who attempt to score the "big deal'. Secondly, it can reduce the risk of investing in these countries and attract better quality investors that way. Having said that, in reality, the problem is that these donors often have tighter fiduciary rules than most commercial banks (which some would argue is a good thing given the current global fiasco). However, it means that the donors internal processes can be so cumbersome ironically they act to deter genuine investors and we again end up with sycophantic companies winning who have close ties to the donor Governments. The application of PPP's has been so mixed that it is often a difficult policy tool to sell these days - but that may be due to poor application rather than poor theory.

Hi Tess, thanks for reading both blogs and providing your thoughtful and well-informed feedback. You are correct... an ISDA is an activity that seeks, through a subtle and long-term approach, to alter the political dynamic, as all successful anti-poverty interventions do. It does this firstly through the direct and equitable provision of public goods like health and education, thus empowering people to seek and find a wider horizon (and undermining the power of existing elites). But also, if configured accordingly, a scaled-up ISDA alters the political economy marketplace that underlies the state, and the state monopoly over public goods and resources that exists in some countries, underwritten by donors. The latter would only occur if an ISDA scaled-up enough over many years to make a difference. Otherwise it would just be another service delivery modality, which is fine by itself. I think the assumption underlying the idea of an ISDA is that state capacity and human development are primarily socio-political processes and not, at the first instance, technical processes. If the political processes are open access and pro-poor, then public resources are being centralised and equitably distributed, and there is no need for an ISDA. Where HDI gains are solid and on a long-term intergenerational upward trajectory, then an ISDA serves little purpose. Direct budget support (support for the political status quo) would be appropriate in such circumstances. Of course, a country with such circumstances would find itself after some years no longer in need of the bulk of foreign aid anyway. Critics contend that donor agencies as they are currently set-up are ill-equipped to make pro-poor open access political judgements in developing countries, and there’s a lot of evidence to support this. Some good papers that discuss this issue are “The Anti-Politics of Development: donor agencies and the political economy of governance”, found <a href="http://www.econstor.eu/bitstream/10419/63444/1/558978355.pdf" rel="nofollow">here</a> [pdf] and “Can new aid modalities handle politics?” found <a href="http://repub.eur.nl/res/pub/34761/metis_176305.pdf" rel="nofollow">here</a> [pdf]. I don’t feel too comfortable about explaining Collier’s ideas around an ISDA, because he does a far better job himself. I have sought to apply his idea to a Solomons context. But I quote from the Haan & Everest-Phillips paper above, “To begin to answer these questions, apart from understanding the politics of development in recipient countries, it is essential to see donors as political agents.” In summary, I think it's best to consider an ISDA firstly as a service-delivery modality, otherwise we may confuse people and scare the horses. But all aid is inherently political. I’m really glad you found the blogs useful. I value your comments on devpolicy.

Dear Bob, For this particular research we did not approach Barrick Gold about development programs associated with the Porgera Joint Venture. However, we <a href="https://devpolicy.org/benefits-from-mining-in-papua-new-guinea-where-do-they-go/" rel="nofollow">posted a blog</a> on Porgera in September last year and Barrick's data for Porgera is included in my Papua New Guinea case study of mining and development about which we <a href="https://devpolicy.org/what-do-big-miners-contribute-to-papua-new-guineas-development-20130320-2/" rel="nofollow">posted a blog</a> in March this year. Margaret

G'day Tony, the essence of the problem is that corruption is like a viral disease. Either you stop it in its tracks or it spreads and destroys the whole system. Until and unless everyone stops beating around the bush and swallows the unpalatable medicine, nothing will change. Responsibility and accountability is either in place and working correctly or it doesn't exist. Those who are being paid to operate public accounting programs must be investigated and sacked if they cannot or will not do what they are being paid to do. There is not easy way out. If the PNG government cannot accept that the so called 'Melanesian Way' is not working and change their way of operating, everyone must accept they are no better than the last lot of spivs and charlatans. Isn't anyone except those like Tony here, listening? Hullo.......

Thanks Marcus for these posts, both of which I have enjoyed and this one particularly is thought provoking. I think the ISDA idea you put forward here is very interesting and bears more thinking and discussion. A reality for a modality of this type needs to be acknowledged from the outset I feel - you have referenced it subtly and I am going to be more blunt: this is a political activity. No amount of saying it's not is going to change that so anyone who wants to be involved (including - and possibly particularly - donors) needs to be aware of that and prepared to enter into the endeavour with that knowledge very much front and centre. There is more to implementing an initiative of this type than this but trying to avoid that reality means that it is destined to wither rather than flourish.

No matter what the leaders say, this is a Country that is incompetent to control its finances. The implementation of projects is at the mercy of incompetent providers. There was a report by the Provincial Audit Dept relating to Wau Bulolo town council in the form of a book about 30/40mm thick. In 2002 about K600,00 was undocumented; Cheque books, deposit books, Bank statements and supporting documents were missing. No one was held accountable; not one of the co signatories was investigated, no action was taken regarding the authorities releasing money with no acquittals. The present Manager of several months does not wish to spend any of the large amount of cash in the bank until the previous management is audited. This is not happening, we are in limbo; two major culverts in Wau are creek crossings; roads are graded with no respect for the drains and most roads are eroded by drainage water. I believe that I can safely state that from the NCD to the smallest LLG the story of Wau can be taken as a useful analogy. I suppose that I may be being paternalistic. Maybe we should give the smaller sharks an opportunity to take a piece out of PNG and that they also should be able to enjoy a better class of rest and recreation. Should the Government decide to start to tighten up on local expenditures a simple start would be to audit all Provincial Governors and Council Presidents. If that were done the rest would be easy. Tony Flynn

Did you approach Barrick Gold in PNG?

An interesting article and one that is welcome. I note the important impact procurement has in providing opportunities to PNG nationals. PNG companies and PNG companies in joint ventures. Procurement is an important but often forgotten element of economic and social policy. It is extremely important for procurement to be undertaken properly - both procuring and then managing resulting contracts!

Shame on Australia, and most especially shame on the politicians who knowingly use the most defenseless people in the world to pander to the lowest instincts of the Australian population. They step on the heads of drowning children to raise themselves to political power. Shameful liars. Our international reputation has changed from the perception of us as an open hearted and generous people to contempt at our unwillingness to do our fair share. Bye, bye Crocodile Dundee. We have been tricked and manipulated by the outright lies of those we pay to serve us. In comparison to other nations, we are, quite frankly, fat whinging bludgers. For example: Tanzania hosts one refugee for every 76 Tanzanian people (1:76) Britain hosts one refugee for every 530 British people. (1:530) Australia hosts one refugee for every 1583 Australian people. (1:1583) Time to wake up to the realities of the world. Time to step up to the plate and take our place as a true member of the international community.

Margaret - thanks for blazing these trails. Tracking mines' development efforts all the way to expenditures at the family level is very telling. Am keen to know more as the research progresses.

Those PNG ladies who have been elected under the current electoral system have made it clear they do not favour dedicated seats for women. That’s a gutsy stand that should be given more support and media attention than it appears to have been reported at the moment. So will the problem of equal rights for women in PNG society be reflected in dedicated parliamentary seats for women? Male parliamentarians will still hold the vast majority of seats and any artificial constraint on eligibility is always open to abuse. PNG’s culture is indeed evolving but any amount of social engineering in Parliament will not automatically be reflected in the culture. Thinking laterally, perhaps dedicated seats for women might also then lead to a push for all other parts of the greater PNG society who feel they are underrepresented. Maybe they will claim they should also have dedicated parliamentary seats based on their percentage in society? Experience in other organisations, where those who belonged to a declared disadvantaged target group led in fact to creating policies of unequal employment, some achieved promotion faster with less experience and proven ability, simply because the organisation needed more numbers of each target group at each senior level. Constant requirements for statistical proof that unequal employment policies were being followed caused those in charge to adhere to this policy whether those who were from the target group wanted it or not. This policy also blindly accepts that all members of the target group also want what only some more vocal members and their followers are agitating to achieve. Surely those women who want to achieve advancement based on their own merit and without artificial assistance should be more actively supported? It also begs the question: are those who demanding unequal rights actually after equal rights or something more personally self enhancing? PNG has suffered from decades of difficulty when some ‘well meaning’ but misinformed rushed Independence through without there being a suitable number of local leaders who were fully equipped and ready to take over. Many PNG people are now recognising this problem for what it was. To be realistic and practical, social changes have to happen gradually and from the bottom up, not the top down.