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Home Business & Finance

Sierra Leone Business: New conversation needed for donor funding- new report

by Awoko Publications
25/07/2018
in Business & Finance
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The LSE-Oxford Commission on State Fragility, Growth and Development, in a Case Study on Sierra Leone has looked at the root cause after almost 60 years, on why the country remains one of the poorest countries of the world and why they are exhibiting different kinds of fragility.
The report that will be launched tomorrow, looked at the problem from five dimensions of fragility with analysis on legitimacy, capacity, security, the private sector and resilience.
According Herbert M’cleod, who co-authored the report, the LSE organized case studies in 20 countries and collected evidences from witnesses and formed an overall evaluation of the development literature, which they came out with in the report.
The report, called for change on donor financing of our budget and the dialogue that ensues regarding spending, and now requires conversation about the long-term strategy for transformation that will address the underlying fault lines on which development plans and investment strategies are being constructed.
This M’cleod explains is not in any way telling donors not to give the country money but that the conversation that ensues must be one among equals. “It shouldn’t be that if you come with the money you must determine what to do with it.”
These types of conversation he said is what has been happening in the past. Negotiation M’cleod says is the way to go and that in order to have a good contract each party should have equal knowledge.
“When you have one party that knows all the figures, it is easy to fool the other side. On the side of the government they need to know what they want and the donors’ should understand the implication of that by guiding the process with previous experience.”
He cautioned that funds from development partners comes out of tax payers money and that they have fiduciary obligation to them, so they cannot just come and tell the government to spend as they wish.
“So when we say conversation, we are not saying don’t give the government money nor are we saying that because you say you have evidence that government is corrupt give to NGOs, because what happens you then undermine the government itself” said M’cleod.
In their review of the country’s history they observed that throughout, the country has had a parallel state, which he says explains to a significant extent why certain things endure.
Citing the fact that in a traditional state when someone steals a goat that person brings shame to the family but in a modern state when someone steals millions the entire family will come forward and say it is our child.
Sierra Leone he said has never faced external threats, but recalled that if one compares the service the security apparatus provided before independence and now there is a huge difference.
People he says prefer dealing with a thief rather than going to the Police and that when issues like that are evident in a country it shows that there is a perception problem, “the real problem is that people do not have confidence in the security system and that is not only limited to the police but to the entire judiciary system as that also contributes to instability” said M’cleod.
The report he said also highlighted that there is a high income of inequality in the country, which he says is a more of a threat. Figures from UNDP he says indicate that 80% of the population, are multidimensional poor.
Responding to questions on what are the prevailing and emerging threats confronting the country in contemporary dispensation, M’cleod stressed that there are no quick fixes to it, as everything has to work correctly and effectively.
For the private sector to work efficiently he said, it must be ensured that there is strict adherence for compliance on all awarded contracts, fair taxation and transparency in the mining sector.
By Zainab Iyamide Joaque
Monday July 23, 2018.

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