Friday, October 20, 2006

Understanding Regional Development

Our group had just returned from a field trip in Hokkaido countryside. In the course of four days, we visited Kushiro and Obihiro cities, as well as many other interesting locations and sites. You can find details on this field trip, as well as some pictures on the left, on Jauntlet.

In the evenings, I’ve been reading a very good book on regional development, which I’m happy to have discovered, entitled Regional Development in Third World Countries: Paradigms and Operational Principles. The author, Haruo Nagamine, was a distinguished Japanese development professional and trainer, who attempted to understand and approach the challenge of achieving balanced prosperity and well-being in the developing countries. Although his work and research was focused on South Asian countries, I find his analysis, conclusions and recommendations relevant to current realities in Moldova – a low-income country in transition. Here is Nagamine’s list of constraints that developing countries have to consider (and overcome) in designing and implementing their regional development policies:

Economic constraints
Poverty
Disparity
Stagnant manufacturing industries
Low level of technology
Insufficient employment opportunities
Shortage in basic means of production


Social Constraints
High population growth (not the case in Moldova)
Inadequate provision of basic needs
Inappropriate school curriculum
Inflated material desires


Physical Constraints
Concentration in primate cities
Poor infrastructure
Inadequate maintenance and operation of infrastructure
Deforestation


Constraints in Development Administration and Finance
Ill-defined administrative responsibilities
Inadequate coordination among administrative bodies
Dependence of regional budgets on central governments (in Moldova, it is local governments)
Political system inimical to democratic representation (less applicable to Moldova)
Bottlenecks to community participation
Corruption
Promotion in civil service


General Constraints
Limited availability of information
Vicious cycles of entrenched constraints


Nagamine states that until now – that is in the past five-six decades – regional development policies of South Asian countries have not been very effective, and provides the reasons why. Why has it been so difficult for Japan’s neighboring Third World countries to replicate Japan’s success in regional development, particularly given Japan’s persistent and active mentorship? What can Japan and its ODA recipient government change in their approach of regional development? The lesson for Moldova is that planning and managing regional development should be approached in the most engaged, professional, disciplined, creative, and consistent way. Nagamine expressed this very well:

“Effectiveness of development planning largely depends on the leadership of the government and the willingness of people to act toward a common goal.”