Challenges in the Era of Globalization - iaabd

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Proceedings of the 12th Annual Conference © 2011 IAABD There are no special principles expressed in the project preparation, appraisal and evaluation documents of Ethiopia. But it is relevant to consider the good governance principles of the country as principles of project governance because they explicitly defines good governance and could influence individuals working at the project governance framework of the country. Based on several project governance documents of the MoFED, and suggestions from the interviewees of our recent survey; 1) transparency, 2) accountability, 3) serving the public interest, 4) impartiality, 4) responsiveness and 5) respecting the law are identified as embedded governance principles in the project governance framework of Ethiopia. But the question is do these elements actually working? Detailed Governance Elements The project governance system in Ethiopia has elements of governing cost and time. The Ministry of Finance and Economic Development has prepared and used national economic parameters and conversion factors to know the true pictures of economic impacts of a project due to market imperfections, external effects and government controls. The economic analysis of projects is conducted in order to ensure that public investment funds are used for viable projects. The financial analysis are also conducted in order to determine the long term budgetary implications and to provide an adequate financing plan for a proposed project. Another important governance element is procurement and contract. MoFED is also responsible for procurement and contract issues in Ethiopia. Public Procurement Agency ( PPA) is the responsible body in the ministry. It is good that these institutions are found in the same ministry. But to have the documents and the institutions are is not sufficient. The question is do they operate in coordination independently to ensure that the government is implementing the right public projects? Conclusions and Implications In the recent years, Ethiopia has implemented substantial amount of public investment projects. Some of the projects are very successful and could provide effective public services for the target group. Compared to the previous conditions, at the present the Ethiopian government has experienced relatively medium term planning and have better strategies, policies and plans which are used as the sources of public investment projects. However, like many other countries in the world, there are considerable weaknesses at the front-end of public investment projects. These weaknesses refers problems such as lack of baseline data, lack of commitment from key stakeholders, weak links between project stakeholders, being unable to identify the key priorities of the society, project urgency, and weak project planning capacity as the challenges of public investment projects. From these factors, majority of the respondents pointed out that ignoring, misunderstanding or unable to identify society’s priorities as the most important factor that affects the relevance of public investment projects. On the other hand, quite a large number of respondents pointed out lack of commitment from key stakeholders as the most important challenge that affects the sustainability of the project effects. Based on these findings we can conclude that even though the project governance system in Ethiopia has a good theoretical background, in practice it is one way traffic (top-down) approach for project ideas and decisions, sectors are weak in planning and programming, the linkage and coordination between the MoFED and sectors are weak and MoFED has no real power to conduct gateway review processes on major projects. Therefore, the project governance system is not effective, and there should be a separate public project governance system with independent experts and emphasis should be given on being practical rather than doctrinaire. References Baum, W.C., Tolbert, S.M. (1985). Investing in Development, Lessons of World Bank Experience, Oxford University Press Concept research program (2011). Retrieved January 5, 2011 from http://www.concept.ntnu.no/english Cusworth, J. W., & Franks, T. R. (1993). Managing Projects in Developing Countries. UK: Longman Group. 750
Challenges in the Era of Globalization Edited by Emmanuel Obuah Development Assistance Group (2006). Comments from the Development Assistance Group, Ethiopia: A Plan for Accelerated and Sustained Development to End Poverty (PASDEP) Ethiopian Economic Association (2008). Report on the Ethiopian Economy. Volume VI, 2007/2007. Ethiopian Federal Democratic Republic, House of Peoples Representatives (2009). “Federal Negarit Gazeta” 15 th year No.48 Garland, R. (2009). Project Governance: A practical guide to effective project decision making, Kongan page, London. Gidado, K. (2010). A model for PFI implementation in sub Saharan Africa- Nigeria as A case study, Proceedings of the third international world of Construction Project Management Conference , Coventry University John W.C., Tom R. F. (1993).Managing Projects in Developing Countries, John Wiley & Sons,inc., New York Klakegg (2009). "Pursuing Relevance and Sustainability: Improvement strategies for major Public projects." International Journal of Managing Projects in Business Vol. 2, No 4 Klakegg, O.J., Williams, T., Magnussen O.M. (2009). Governance Frameworks; For Public Project Development and Estimation, PMI, Klakegg, O.J., Haavaldsen, T.(2009). "Complex Projects: Evaluation Criteria for Front-End Governance." Journal of Projects and project Profiles, IX(2), 40-51 Klakegg, O.J. (2010). Governance of Major Public Investment Projects: in Pursuit of Relevance and Sustainability, PhD thesis, The Norwegian University of Science and Technology Ministry of Finance and Economic Development (2004). Appraisal Guidelines for Public sector Projects, Addis Ababa Ministry of Finance and Economic Development (2006). Guide lines for the preparation of Public sector Projects, Addis Ababa Ministry of Finance and Economic Development (2006). System for Development projects preparation, approval and evaluation, Addis Ababa Ministry of Finance and Economic Development (2006). Integrated Urban Development Program (2006- 2010), Addis Ababa Ministry of Finance and Economic Development (2008). "Finance and Development." Ministry of Finance and Economic Development of Ethiopia special issue, Addis Ababa Ministry of Finance and Economic Development of Ethiopia web site (2011). Retrieved March, 2011 http://www.mofed.gov.et/index.php?option=com_content&view=article&id=15&Itemid=42 OECD (2008). OECD Sustainable Development Studies: Conducting Sustainability Assessments Olsson, N., Austeng, K., Samset, K. & Lædre, O. (2006). Ensuring quality at the entry: challenges in front end management of projects EURAM 2006 Conference, Oslo Priemus, H., Flyvbjerg, B., & Wee, B.(2008). Decision-Making on Mega-Projects, How to improve the early stages of Decision making on mega-projects, Edward Elgar Publishing Limited, UK. (102-119) Samset, K. (1998). Project Management in a high uncertainty situation: Uncertainty, risk and Project Management in International Development Projects, The Norwegian University of Science and Technology Samset, K. (2003). Project Evaluation; Making Investments Succeed, Tapir Academic Press, Trondheim Samset, K., Berg, P. & Klakegg, O.J. (2006). Project Governance of Major Public Projects. EURAM 2006 Conference, Oslo Samset, K. (2009). Making essential choices with scant information, Projects, Their quality at Entry and Challenges in the Front End phase, Palgrave Macmillan, UK (18-35) US Department of State, Bureau of African Affairs (2011). Back ground note: Ethiopia. Retrieved April 7, 2011 from http://www.state.gov/r/pa/ei/bgn/2859.htm World Economic Forum (2010). Global competiveness report 2010-2011. Geneva SRO-Kundig 751
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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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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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Abstract The Changing Requirements
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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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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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Banks in Ghana Challenges in the Er
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References: Challenges in the Era o
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The study seeks to: • examine typ
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Relationship Commitment Total 1264.
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