Challenges in the Era of Globalization - iaabd

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Proceedings of the 12th Annual Conference © 2011 IAABD public executive organs. Ethiopia used its Ministry of Economic Development and Cooperation, now it is MoFED for planning and administration of public investment projects. In between 1991 and 2006, the Ministry of Economic Development and Cooperation prepared and used checklists for project appraisal. In 2006, MoFED developed a new system and different tools for preparation, appraisal, monitoring and evaluation of public sector projects. The purpose of the system and tools is to help practitioners in designing viable projects that meet the development needs and priorities of the government and to provide sufficient information for decision makers (MoFED, 2006). It is an interesting system for informed decision making and value for money. According to this system, public investment projects in Ethiopia should be initiated from government development programmes and plans, which are derived from the prevailing development policies. If sectors have a budget source from the government treasury, the project concept is prepared by the sectors and they will send it to MoFED. Once the project concept is approved by MoFED, sectors will prepare the project document including cost estimate and submit to MoFED. After checking the project proposal the ministry either approves the project or returns for amendments or rejects. On the other hand, if the source of finance is assistance or loan, the proposal comes to MoFED and the ministry will check the proposal against the government development strategies. After checking the project proposal, MoFED will send it to Council of Ministries and further to the House of People’s Representatives. However, this is a theoretical framework and in practice there are deviations. In the previous paragraphs of this section we tried to analyze the most important challenges of public investment projects in Ethiopia. The results of the survey indicated problems related with the project governance system of the country. In order to develop the results and to indentify the problems we made interviews with 35 key professionals who have long experience in public investment projects. The interviewees pointed out problems between major parties involved in the project governance framework of Ethiopia. Majority of the interviewees confirmed that the link between sectors and MoFED as weak. Linkages between MoFED, other government and non-government stakeholders are weak throughout the process. Figure 1 summarizes the analysis of the interviews. The government is overambitious in designing projects and there is no patience to give enough time for planning. Coverage and equity between regions have been given more emphasis than the merit of projects. This creates problems related to the usefulness and sustainability of project effects. MoFED which is theoretically responsible for projects appraisal and evaluation have no genuine power and have shortage of experts. The coordination between its different units of MoFED is weak. The ministry project appraisal system lacks mandatory control gateways for project concept, project alternatives, uncertainty analysis and need assessments. Sectors also have shortages of experts and baseline data for planning. Furthermore, there are problems at the links that connect these parties. For example the link between the government and MoFED is a one way traffic. The government decides and the ministry implements the decisions. The professional analysis and inputs of MoFED that could basis the government decisions are either not used, or not influential or do not wanted at all. On the other hand the link between MoFED and sectors are weak. For the last couple of years, from all locally financed projects only very small number of projects from sectors could go to MoFED for appraisal and approval. Majority of projects are apprised and evaluated by the sectors themselves. This implies that coordination between MoFED and sectors are very weak. MoFED is not exercising its power according to the proclamation No. 642/2009. Fig 1. Analysis of problems in the project governance system of Ethiopia Urgency High ambition Coverage and equity interest 748
GOVERNMENT MoFED SECTORS Structure of the Framework Challenges in the Era of Globalization Edited by Emmanuel Obuah Proper structuring of involved parties and indicating clearly their duties and responsibilities is one of the basic issues in the project development process. The recent system for the preparation of public sector projects identifies the House of People’s Representatives, the Council of Ministries, MoFED and sectors as the main parties involved in the public project governance of the country. The system describes the duties and responsibilities of each party regarding preparing and implementing the short, medium and long term economic development strategies using programs and projects. According to this structure the House of Peoples Representatives issues proclamations and laws and approves issue related to public projects that come from the Council of Ministries. The Council of Ministries issues regulations and directives and makes decisions based on analysis from MoFED. MoFED issues project directives, makes decisions on important issues from sectors, appraises project proposals of sectors and finds budget for approved projects. MoFED also has a mandate to evaluate and monitor approved projects. According to this framework, planning and programming units of sectors plays a key role in defining and designing public need projects that are part of the development strategy of the country. Fig.1 Structure of public investment projects workflow in Ethiopia House of People Representatives Laws that are approved Proclamations and Laws by Proclamations Council of Ministiries Issues that need decisions Regulations and Directives MoFED Important information Project directives Project proposals Issues that need agreements Reports Sectors Approved projects and budgets Governance Principles Lack of experts Lack of genuine power Lack of coordination b/n units Lack of mandatory gateways Lack of competence Lack of baseline data One way Traffic: Lack of logical and chronological sequences between analysis and decision making Weak link and coordination 749
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Challenges in the Era of Globalizat
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Table of Contents Challenges in the
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Lennart Bangens, Goteborg, Sweden C
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Local Steering Committee Jacob Musi
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Track 1: Accounting, Finance, and I
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Abstract Challenges in the Era of G
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Abstract Determinants of Bank Lendi
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Empirical Results Challenges in the
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Table 3 Determinants of Competitive
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Research Findings Challenges in the
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Abstract: Study on Africa Governmen
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Abstract Challenges of Oil Revenue
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Abstract Land Based Sources of Poll
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Abstract On the Mitigation of Rever
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Assessment of pollutants in nigeria
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Figure 1: Lagos off shore survey po
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Academic Pry School 3 3 0 Backgroun
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Track 5: Management Education Chall
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Table: Model Fitness Regression Sta
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Conclusion Challenges in the Era of
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37. Provision of sound education fo
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The cost structure Challenges in th
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Empirical Analysis Challenges in th
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Variable Coefficient Std. Error t-S
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Abstract The Changing Requirements
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The Model, Data and Variable Defini
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Track 8: Gender and Economic Develo
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Empirical results Challenges in the
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Abstract Gender, poverty and sustai
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Figure 1.1: Spread of directorships
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Theoretical Framework Challenges in
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Single 18.1 Masters and above 35.3
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Source: Field survey, 2010 Table 3:
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Track 9: Global Studies and Politic
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Conceptual Definitions Challenges i
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Conclusions and Implications Challe
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Abstract Exploring Organisational R
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district hospitals: Evidence from N
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Defining the Organisational Culture
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Table 1: A Summary of Operating Ban
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Discussion and Conclusion Challenge
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Abstract What does Globalization me
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Research Methods approach Challenge
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Statement of the Problem Challenges
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Convenient location of banks Challe
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Banks in Ghana Challenges in the Er
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References: Challenges in the Era o
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Figure 5: Causal loop diagram inclu
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The study seeks to: • examine typ
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Figure 2: Customer Perception of MT
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Relationship Commitment Total 1264.
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Figure1.1Inflation and Indexation R
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Football Spectatorship Challenges i
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