Politically Smart Support to Economic Development: DFID Experiences.

This paper starts with a recognition change initiatives need to be targeted and politically smart. Comprehensive governance reforms have a poor record of success, whereas politically smart, targeted initiatives are beginning to show real promise. The paper two case studies—from Nepal and Nigeria—of initiatives funded by the UK Department for International Development (DFID) that have achieved promising results in recent years.

According to the introductory contribution, typical political patterns in developing countries affect the conditions for economic development in several negative ways. This is a reason for aid donors to get involved, but in order for this involvement to be “politically smart,” they must admit the limitations of comprehensive reform and recognising three kinds of uncertainty, arising from: 1) the lack of any robust general formulas for dealing with basic institutional challenges of economic development (the form versus function issue); 2) the unpredictability that is often a feature of the ‘everyday politics’ of reform; and 3) the additional challenge of intervening in a complex system, where some results cannot be known in advance. Adopting a flexible and adaptive programming approach is an essential first step. The value of these recommendations is illustrated through the case study analysis of projects in Nepal and Nigeria.

The paper concludes with additional, more concrete programming recommendations. It argues that a politically smart approach will be achieved most effectively in the DFID context (and in other contexts, with appropriate adjustments) under two conditions. First, there needs to be less reliance on encouraging senior advisors to take the risk of initiating innovative programmes without much additional support. Stronger guidance on suitable frameworks and monitoring systems can and should be provided. Second, a substantial effort is needed to extend the thinking from donor agencies to their contracted service providers, whose orientations influence significantly the final shape of programmes. These conclusions are summed up as priorities for four groups of actors, including implementing organisations.