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Awards 1998-2003 | February 2020

UN/UNDP Mongolia Development Portal (www.un-mongolia.mn) 

I launched this portal in 1997, in the middle of a major economic crisis in Mongolia. This award-winning (winner in 1998 of the People’s Choice WebSite 500 award and the CyberTeddy Top 500 Website award) and pioneering United Nations Mongolia development web portal was singled out by UN headquarters as an example of what a country office website should be like.

At this time, Mongolia was still recovering from the chaotic and turbulent transition from Communism to free markets and democracy begun at the start of the 1990s, called by some “one of the biggest peacetime economic collapses ever” (Mongolia’s Economic Reforms: Background, Content and Prospects, Richard Pomfret, University of Adelaide, 1994). There was a thirst for information: access to the Internet was still limited and access to mobile phones was just the preserve of the rich. As a legacy of the past, information, especially that about the outside world and the country’s true economic and social conditions, was restricted. During the years of Communism, even simple travel from one place to the next was strictly regulated.

While today we can take it for granted that the Internet, and mobile and smart phones, deliver the world’s information in seconds, this just was not the case in the late 1990s in Mongolia.

“Cyber-Teddy’s Top 500 Web Site” was an online award from the late 1990s.
The UN/UNDP Mongolia development web portal addressed the urgent need to communicate what was happening in the country during a major crisis, and to transparently show what the UN was doing to address the crisis. It made critical data on the country’s development easy to find, and informed the wider world about the country and its people and culture. While the Internet had only just arrived in Mongolia, from the start the UNDP Mongolia Communications Office was experimenting with this powerful new technology to reach a global audience. This included Mongolia’s first web magazine, Ger (launched in 1998). After the http://www.un-mongolia.mn website launched in 1997, a media campaign began to inform readers of its presence. This ad appeared regularly in magazines, newsletters and newspapers.
“A UN System site. A very nice, complete, professional site. Lots of information, easily accessible and well laid out. The information is comprehensive and up-to-date. This is a model of what a UNDP CO web site should be.”

I was head of communications for the United Nations mission in Mongolia from 1997 to 1999. The mission had to primarily tackle three major crises: the country’s turbulent transition from Communism to free markets and democracy, the social and economic crash this caused, and the Asian Financial Crisis (Pomfret 2000) (Quah 2003)*.

Richard Pomfret said in 1994 “In 1991 Mongolia suffered one of the biggest peacetime economic collapses ever (Mongolia’s Economic Reforms: Background, Content and Prospects, Richard Pomfret, University of Adelaide, 1994).”

From Curbing Corruption in Asia: A Comparative Study of Six Countries by Jon S. T. Quah: “The combined effect of these three shocks was devastating as ‘Mongolia suffered the most serious peacetime economic collapse any nation has faced during this century’. Indeed, Mongolia’s economic collapse ‘was possibly the greatest of all the (peaceful) formerly’” Communist countries. 

“The years 1998 and 1999 have been volatile ones for Mongolia, with revolving door governments, the assassination of a minister, emerging corruption, a banking scandal, in-fighting within the ruling Democratic Coalition, frequent paralysis within the Parliament, and disputes over the Constitution. Economically, the period was unstable and rife with controversies.” Mongolia in 1998 and 1999: Past, Present, and Future at the New Millennium by Sheldon R. Severinghaus, Asian Survey, Vol. 40, No. 1, A Survey of Asia in 1999 (Jan. – Feb., 2000), pp. 130-139 (Publisher: University of California)

Writing in 2018, author John West  found, in a chapter titled Mongolia’s Corruption Curse (Transparency International and the World Bank had found corruption worsened in Mongolia after 2001), “In many ways, Mongolia has everything going for it. After being a satellite state of the former Soviet Union for much of the twentieth century, Mongolia regained its independence with the end of the Cold War. A relatively peaceful political revolution in the early 1990s ushered in a multi-party democracy and open society which have remained in place. … And it is blessed with vast reserves of copper, gold, coal, molybdenum, fluorspar, uranium, tin and tungsten deposits. True, Mongolia experienced great upheavals as the breakup of the Soviet Union saw its trade decline by 80%. But Mongolia was also perfectly placed to benefit from the commodity super cycle driven by China, which is now the destination for the vast majority of its exports.

“However, despite much hype about the Mongolian “wolf economy”, this country of so much promise is being dragged down by massive corruption. …

“Mongolia’s corruption is greatly weakening its attractiveness as an investment destination, is fracturing society and weakening its fragile political institutions. Its culture of corruption has also fed its love-hate relationship with foreign investors, which has destabilized the economy.” Asian Century … on a Knife-edge: A 360 Degree Analysis of Asia’s Recent Economic Development by John West, Springer, 24 January 2018.  

In this role, I pioneered innovative use of the Internet and digital resources to communicate the UN’s work and Mongolia’s unfolding crises. The UN called this work a “role model” for the wider UN and country offices. A survey of United Nations country office websites in 2000 ranked the UN Mongolia website I launched in 1997 and oversaw for two years (1997-1999), third best in the world, saying: “A UN System site. A very nice, complete, professional site. Lots of information, easily accessible and well laid out. The information is comprehensive and up-to-date. This is a model of what a UNDP CO web site should be.” (http://www.scribd.com/doc/274319690/UNDP-Mongolia-United-Nations-2000-Survey-of-Country-Office-Websites)

As part of a strategic plan to raise awareness of Mongolia’s development challenges and to spur action on meeting them, a Communications Office was established for the UN mission in 1997. Acting as a strategic hub, the Communications Office and its dynamic and talented team, were able to leverage the existing budget to spur action on many fronts.

In 2001, the UN won the Nobel Peace Prize for “their work for a better organized and more peaceful world” and its communications innovations, with work such as that in Mongolia being cited as a contributing factor to the awarding of the Prize

The Nobel Peace Prize 2001 joint winners.

GOSH Child Health Portal (www.gosh.nhs.uk)

In 2001 I undertook a two-year contract to modernise the online resources for the Great Ormond Street Hospital for Children NHS Trust (GOSH)/Institute of Child Health (ICH). My strategy was inspired and informed by initiatives encountered while working as a health and medical journalist in 1990s Canada – a time where government austerity spurred a need to experiment and try new ways of doing things.

Having seen the impact first-hand of pilot experiments in Toronto aimed at widening access to information and resources for patients and their families, I applied this knowledge to the GOSH Child Health Portal Project (2001 to 2003). Drawing on the wider NHS Modernisation Plan, and a multi-year consultation process undertaken by the hospital, the Project was launched in three phases. 

How far the UK had fallen out of step with global developments with the Internet became clear from the start. The distance that had to be traveled in the span of two years was vast. Essentially, to go from being a web laggard to a web leader. 

Award-winning (http://www.scribd.com/doc/35249271/Childnet-Awards-2003-Brochure), the GOSH Child Health Portal was called by The Guardian newspaper one of the “three most admired websites in the UK public and voluntary sectors,” and a UK government assessment called the overall GOSH child health web portal a role model for the NHS. At the time, Prime Minister Tony Blair (whose wife, Cherie Blair, was an early supporter and champion of the project) had this to say: “Making sure that your child has helpful, easy-to-read information will make a significant difference to their time in hospital. I am sure that this website will prove very useful for children and their families.”

The project was delivered in three phases. At every stage, progress was communicated to the wider public and colleagues in various ways, via in-house media and through constant engagement with British news outlets. Screen grabs and other resources from the project can be found online here: 

Phase 1: https://books.google.co.uk/books?id=g826gFjEXWsC&printsec=frontcover&dq=gosh+health+phase+1a&hl=en&sa=X&ved=0ahUKEwj5u__dqIHLAhVJOxoKHZ3IDZcQ6AEIJTAA#v=onepage&q=gosh%20health%20phase%201a&f=false 

Phase 2: https://books.google.co.uk/books?id=E2ZVlFbrCzsC&printsec=frontcover&dq=gosh+health+phase+2a&hl=en&sa=X&ved=0ahUKEwjEodr0qIHLAhWK2BoKHStJB7QQ6AEIJjAA#v=onepage&q=gosh%20health%20phase%202a&f=false

Phase 3: https://books.google.co.uk/books?id=KVE6QqDp1HsC&printsec=frontcover&dq=gosh+health+phase+3&hl=en&sa=X&ved=0ahUKEwiXwe-FqYHLAhVBvxoKHXhOCooQ6AEIJjAA#v=onepage&q=gosh%20health%20phase%203&f=false

Project documents: https://books.google.ca/books?id=4aeDBgAAQBAJ&dq=gosh+child+health+portal+key+documents&source=gbs_navlinks_s

The Cable and Wireless Childnet Award called Children First “an outstanding example of how a hospital can create quality, authoritative information on issues relating to health in a fun, child-centered and accessible way.”

More here from The Guardian and CBS: Hospital unveils international website for children and Web Projects For Kids Get Their Due 

The Childnet Awards in 2003 were awarded by Trond Waage, the Norwegian Ombudsman for Children, at the Science Museum in London.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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High Impact Communications In A Major Crisis: UNDP Mongolia 1997-1999 | 18 February 2016

I was head of communications for the United Nations mission in Mongolia from 1997 to 1999. The mission had to primarily tackle three major crises: the country’s turbulent transition from Communism to free markets and democracy, the social and economic crash this caused, and the Asian Financial Crisis (Pomfret 2000) (Quah 2003)*.

Richard Pomfret said in 1994 “In 1991 Mongolia suffered one of the biggest peacetime economic collapses ever (Mongolia’s Economic Reforms: Background, Content and Prospects, Richard Pomfret, University of Adelaide, 1994).”

From Curbing Corruption in Asia: A Comparative Study of Six Countries by Jon S. T. Quah: “The combined effect of these three shocks was devastating as ‘Mongolia suffered the most serious peacetime economic collapse any nation has faced during this century’. Indeed, Mongolia’s economic collapse ‘was possibly the greatest of all the (peaceful) formerly'” Communist countries. 

“The years 1998 and 1999 have been volatile ones for Mongolia, with revolving door governments, the assassination of a minister, emerging corruption, a banking scandal, in-fighting within the ruling Democratic Coalition, frequent paralysis within the Parliament, and disputes over the Constitution. Economically, the period was unstable and rife with controversies.” Mongolia in 1998 and 1999: Past, Present, and Future at the New Millennium by Sheldon R. Severinghaus, Asian Survey, Vol. 40, No. 1, A Survey of Asia in 1999 (Jan. – Feb., 2000), pp. 130-139 (Publisher: University of California)

Writing in 2018, author John West  found, in a chapter titled Mongolia’s Corruption Curse (Transparency International and the World Bank had found corruption worsened in Mongolia after 2001), “In many ways, Mongolia has everything going for it. After being a satellite state of the former Soviet Union for much of the twentieth century, Mongolia regained its independence with the end of the Cold War. A relatively peaceful political revolution in the early 1990s ushered in a multi-party democracy and open society which have remained in place. … And it is blessed with vast reserves of copper, gold, coal, molybdenum, fluorspar, uranium, tin and tungsten deposits. True, Mongolia experienced great upheavals as the breakup of the Soviet Union saw its trade decline by 80%. But Mongolia was also perfectly placed to benefit from the commodity super cycle driven by China, which is now the destination for the vast majority of its exports.

“However, despite much hype about the Mongolian “wolf economy”, this country of so much promise is being dragged down by massive corruption. …

“Mongolia’s corruption is greatly weakening its attractiveness as an investment destination, is fracturing society and weakening its fragile political institutions. Its culture of corruption has also fed its love-hate relationship with foreign investors, which has destabilized the economy.” Asian Century … on a Knife-edge: A 360 Degree Analysis of Asia’s Recent Economic Development by John West, Springer, 24 January 2018.  

In this role, I pioneered innovative use of the Internet and digital resources to communicate the UN’s work and Mongolia’s unfolding crises. The UN called this work a “role model” for the wider UN and country offices. A survey of United Nations country office websites in 2000 ranked the UN Mongolia website I launched in 1997 and oversaw for two years (1997-1999), third best in the world, saying: “A UN System site. A very nice, complete, professional site. Lots of information, easily accessible and well laid out. The information is comprehensive and up-to-date. This is a model of what a UNDP CO web site should be.” (https://www.scribd.com/document/35249986/United-Nations-2000-Survey-of-Country-Office-Websites)

As part of a strategic plan to raise awareness of Mongolia’s development challenges and to spur action on meeting them, a Communications Office was established for the UN mission in 1997. Acting as a strategic hub, the Communications Office and its dynamic and talented team, were able to leverage the existing budget to spur action on many fronts, including: 

Media

Working with journalists and media both within Mongolia and outside, the Communications Office was able to significantly raise awareness of Mongolia and its development challenges. This was reflected in a substantial increase in media coverage of the country and in the numerous books and other publications that emerged post-1997. The book In Their Own Words: Selected Writings by Journalists on Mongolia, 1997-1999 (ISBN 99929-5-043-9) archived the stories by theme.  

Top journalists covering Asia in the late 1990s contributed to the book.


Ger Magazine

Ger Magazine (the Mongolian word for home and traditional tent dwelling) was published as the country’s first e-magazine in 1998. There were four issues in total from 1998 to 2000. The launch issue was on the theme of youth in the transition. Mongolia was transitioning from Communism to free markets and democracy and this had been both an exhilarating time and a wrenching time for young people. The magazine drew on talented journalists from Mongolia and the handful of international journalists based there to create a mix of content, from stories about life adapting to free markets to stories on various aspects of Mongolian culture and life. 

The second issue of the magazine proved particularly effective, with its modern life theme and cover story on a thriving Mongolian fashion scene.

Archived issues of the magazine can be found at the Wayback Machine here: https://archive.org/. Just type in the UN Mongolia website address for the years 1997 to 1999: http://www.un-mongolia.mn.


Blue Sky Bulletin

The Blue Sky Bulletin newsletter was launched in 1997 initially as a simple, photocopied handout. It quickly founds its purpose and its audience, becoming a key way to communicate what was happening in the country and a crucial resource for the global development community, scholars, the media and anyone trying to figure out what was happening in a crazy and chaotic time. Blue Sky Bulletin was distributed via email and by post and proved to be a popular and oft-cited resource on the country. The quality of its production also paralleled Mongolia’s growing capacity to publish to international standards, as desktop publishing software became available and printers switched to modern print technologies. Blue Sky Bulletin evolved from a rough, newsprint black and white publication to becoming a glossy, full-colour, bilingual newsletter distributed around Mongolia and the world.

Archived issues can be found online here:

Blue Sky Bulletin Issue 1

Blue Sky Bulletin Issue 2

Blue Sky Bulletin Issue 3

Blue Sky Bulletin Issue 4

Blue Sky Bulletin Issue 5

Blue Sky Bulletin Issue 6 

Blue Sky Bulletin Issue 7 

Blue Sky Bulletin Issue 8

Blue Sky Bulletin Issue 9

Blue Sky Bulletin Issue 10


Publishing

MHDR 1997

The Mongolian Human Development Report 1997 (MHDR), the country’s first, placed the story of the Mongolian people during the transition years (post-1989) at its heart, using photographs, stories and case studies to detail the bigger narrative at play.

This groundbreaking Mongolian Human Development Report went beyond just chronicling Mongolia’s state of development in statistics and graphs. Designed, laid out and published in Mongolia, the report broke with the practices of many other international organisations, who would publish outside of Mongolia – denying local companies much-needed work and the opportunity to develop their skills. The report’s costs helped to kick-start a publishing boom in the country and significantly raised standards in design and layout in the country. The foundations laid down by the project producing the report ushered in a new age in publishing for Mongolia.

The report’s launch was innovative, not only being distributed for free across the country, but also part of a multimedia campaign including television programming, public posters, town hall meetings and a ‘roadshow’ featuring the report’s researchers and writers.

The initial print run of 10,000 copies was doubled as demand for the report increased. To the surprise of many, once hearing about the free report, herders would travel to the capital, Ulaanbaatar, to pick up their copy. The report proved people cared passionately about the development of their country and that development concepts are not to be the secret domain of ‘development practitioners’. The report also became an English language learning tool as readers compared the Mongolian and English-language versions. 

You can read the report’s pdf here: http://www.mn.undp.org/content/mongolia/en/home/library/National-Human-Development-Reports/Mongolia-Human-Development-Report-1997.html

Mongolian AIDS Bulletin

Assembled by a team of health experts after the Fourth International Congress on AIDS in Asia and the Pacific, the Mongolian AIDS Bulletin was published in 1997 in the middle of an HIV/AIDS crisis. It provided timely information and health resources in the Mongolian language and was distributed across the country.
 
“Mongolia’s first AIDS Bulletin marked the beginning of the UNDP Response to HIV/AIDS/STDs Project back in the autumn of 1997. Over 5,000 copies of the magazine were distributed across the country, offering accurate information on the HIV/AIDS situation. The project has been pivotal in the formulation of a national information, education and communication (IEC) strategy, bringing together NGOs, donors, UN agencies and the government.”
 
Source: YouandAids: The HIV/AIDS Portal for Asia Pacific 

Green Book

In the Mongolian language, the Mongolian Green Book details effective ways to live in harmony with the environment while achieving development goals. Based on three years’ work in Mongolia – a Northeast Asian nation coping with desertification, mining, and climate change – the book presents tested strategies.  

EPAP Handbook

The Environmental Public Awareness Handbook was published in 1999 and features the case studies and lessons learned by UNDP’s Mongolian Environmental Public Awareness Programme (EPAP). The handbook draws on the close to 100 small environmental projects the Programme oversaw during a two-year period. These projects stretched across Mongolia, and operated in a time of great upheaval and social, economic and environmental distress. The handbook is intended for training purposes and the practice of public participation in environmental protection.

In its 2007 Needs Assessment, the Government of Mongolia found the EPAP projects “had a wide impact on limiting many environmental problems. Successful projects such as the Dutch/UNDP funded Environmental Awareness Project (EPAP), which was actually a multitude of small pilot projects (most costing less than $5,000 each) which taught local populations easily and efficiently different ways of living and working that are low-impact on the environment.”

Mongolia Updates 1997, 1998, 1999

Mongolia Update 1998 detailed how the country was coping with its hyperinflation and the Asian economic crisis.

The mission simultaneously had to deal with the 1997 Asian Crisis (http://en.wikipedia.org/wiki/1997_Asian_Financial_Crisis) and the worst peacetime economic collapse in post-WWII history (http://www.jstor.org/pss/153756).  

Mongolia Update 1998 – Political Changes

1998 proved a tumultuous year for Mongolia. The country’s existing economic crisis caused by the transition from Communism to free markets was made worse by the wider Asian Crisis. The government was destabilised, leading to an often-confusing revolving door of political figures. In order to help readers better understand the political changes in the country, a special edition of Mongolia Update was published that year.  

UNDP Mongolia: The Guide

The Guide, first published in 1997, provided a rolling update on UNDP’s programmes and projects in Mongolia during a turbulent time (1997-1999). The mission simultaneously had to deal with the 1997 Asian Crisis (http://en.wikipedia.org/wiki/1997_Asian_financial_crisis) and the worst peacetime economic collapse in post-WWII history.

Each edition came with short project and context summaries, key staff contacts, and facts and figures on how the country was changing. For the first time, any member of the public could grasp what the UN was up to in the country and be able to contact the project staff. An unusual level of transparency at the time for a UN mission.

Memoranda of Understanding

Three Memoranda of Understanding were negotiated with the Mongolian Government to help focus efforts and aid the attainment of internationally-agreed resolutions. This was affirmed by a series of youth conferences, One World, held in 1998 and 1999.

Strategy and Leadership in a Crisis

The scale and gravity of the crisis that struck Mongolia in the early 1990s was only slowly shaken off by the late 1990s. The economic and social crisis brought on by the collapse of Communism and the ending of subsidies and supports from the Soviet Union, led to a sharp rise in job losses, poverty, hunger, and family and community breakdowns. 

The challenge was to find inspiring ways out of the crisis, while building confidence and hope. The sort of challenges confronted by the UNDP Mongolia Communications Office included: 

1) A food crisis: agricultural production was down sharply, and the traditional nomadic herding economy, while at peak herd, was failing to get the meat to markets and to a high enough standard to restore export levels to where they once were. As a result, a cross-border trading frenzy became the solution to falling domestic food production and availability.

2) HIV/AIDS/STDs crisis

3) A major banking crisis

4) Both the Asian Financial Crisis and the Russia Crisis.

5) An ongoing political crisis and an inability to form stable governments.

“Mongolia is not an easy country to live in and David [South] showed a keen ability to adapt in difficult circumstances. He was sensitive to the local habits and cultures and was highly respected by his Mongolian colleagues. … David’s journalism background served him well in his position as Director of the Communications Unit. … A major accomplishment … was the establishment of the UNDP web site. He had the artistic flare, solid writing talent and organizational skills that made this a success. … we greatly appreciated the talents and contributions of David South to the work of UNDP in Mongolia.” Douglas Gardner, UN Resident Coordinator and UNDP Resident Representative Mongolia

Citations

The response by the Communications Office has been cited in numerous articles, stories, publications and books. It has also contributed to the development of the human development concept and understanding of human resilience in a crisis and innovation in a crisis. Book citations include: 

Modern Mongolia: From Khans to Commissars to Capitalists

Wild East: Travels in the New Mongolia

A more detailed list of citations can be found here: http://www.davidsouthconsulting.com/about/

For research purposes, key documents were compiled together and published online here: https://books.google.ca/books?id=K76jBgAAQBAJ&dq=undp+mongolia+key+documents&source=gbs_navlinks_s

In 2001, the UN won the Nobel Peace Prize for “their work for a better organized and more peaceful world” and its communications innovations, with work such as that in Mongolia being cited as a contributing factor to the awarding of the Prize

In 2000, the Millennium Development Goals (MDGs) were launched in a 15-year bid to use a focused approach to development centred around eight goals to accelerate improvements to human development. From 2000 to 2005, work was undertaken in various UN missions (Mongolia, South Africa, Turkmenistan, Ukraine) to communicate the goals and to reshape communications activities around the goals.

*Curbing Corruption in Asia: A Comparative Study of Six Countries by Jon S. T. Quah, Eastern Universities Press, 2003 

Transition and Democracy in Mongolia by Richard Pomfret, Europe-Asia Studies, Vol. 52, No. 1 (Jan., 2000), pp. 149-160, published by Taylor & Francis, Ltd. (http://www.jstor.org/stable/153756?seq=1#page_scan_tab_contents)

UNDP Mongolia team photo in 1997. I am sitting front row centre left of the UN Resident Coordinator Douglas Gardner.

Creative Commons License

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2022

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Ger: Mongolia’s First Web Magazine (And A Pioneering Web Project For The United Nations) | 12 January 2016

Ger Magazine was hosted on the http://www.un-mongolia.mn website from 1998.
  • Editor-in-chief: David South (1998-1999)
  • Logo design: P. Davaa-Ochir

“The years 1998 and 1999 have been volatile ones for Mongolia, with revolving door governments, the assassination of a minister, emerging corruption, a banking scandal, in-fighting within the ruling Democratic Coalition, frequent paralysis within the Parliament, and disputes over the Constitution. Economically, the period was unstable and rife with controversies.” Mongolia in 1998 and 1999: Past, Present, and Future at the New Millennium by Sheldon R. Severinghaus, Asian Survey, Vol. 40, No. 1, A Survey of Asia in 1999 (Jan. – Feb., 2000). pp. 130-139 (Publisher: University of California)

Ger Magazine was launched on September 9, 1998 (Ger is the Mongolian word for both the traditional tent dwelling and home). The theme of youth in the transition was explored by a combined team of Mongolian and foreign journalists. The Ger Magazine project had basically three goals: first, raise the quality of journalism in the country, secondly, introduce the country to a wider global audience and, thirdly, by being the country’s first online magazine, prove the internet was an effective way to communicate.

Issue 1

Issue 1 of the magazine investigated what life was like for youth during the transition years (post-1989). Stories tackled the struggle to find work in the free market, the booming pop music scene and how it is leading the way in business entrepreneurship, reproductive health, the basics on Mongolian culture, and vox pop views from Mongolian youth.

Issue 2

Issue 2 of the magazine investigated modern life in Mongolia during transition. The team of journalists were hitting their stride by this issue. Stories probed the proliferation of bars and the problem of alcoholism, corrupt banking practices and the loss of savings, how the young were the country’s leading entrepreneurs, Mongolia’s meat and milk diet, “girl power” and the strong role played by women, the burgeoning new media, the rise and rise of Buddhism, and Mongolia’s dynamic fashion designers (this article inspired foreign fashion designers to embrace the Mongolian ‘look’ in the next season’s designs).

Editor-in-Chief: David South, UNDP Communications Coordinator
EditorA. Delgermaa, UB Post newspaper
TranslationA. Delgermaa
Photography: N. Baigalmaa, David South
Design and layout: B. Bayasgalan, UN Homepage Webmaster

“This is the second issue of Ger. We have chosen the theme “Modern Life” to introduce people outside of Mongolia to the complexities of life in today’s Mongolia – the good, the bad and the ugly as a cowboy film once said. Ger is a project that draws upon the best journalists of this country. Under democracy Mongolia enjoys a flourishing free press, with over 800 officially registered newspapers for a population of 2.4 million! Ger has chosen A. Delgermaa of the UB Post newspaper to edit this issue. The UB Post is one of two English language newspapers in Mongolia and is owned by the Mongol News Company, a publisher of five newspapers, including the daily Today newspaper. Ger is a project to improve the quality of journalism in Mongolia, while introducing the people of the world to Mongolian journalists and this wonderful country. We hope you enjoy this issue of Ger. Please send us your comments. 

Ger is not an official UNDP publication but a project to improve the quality of journalism. Opinions expressed in the magazine do not necessarily reflect the official views or policies of the United Nations Development Programme. Articles may be freely reproduced so long as credit is given and the editors are notified. Ger is published in English and Mongolian. 

Contributors

Ms. A Delgermaa: A reporter with the UB Post English weekly newspaper, which enjoys a good reputation among readers. Delgermaa is a young journalist and started her career in 1997, after graduating from the English Department of the Foreign Service School, Mongolian National University. She is a regular contributor to UN publications and has been published by Inter Press Service. She thinks Mongolia needs more psychologists to give courage to those many who are yearning for a better life. Like many young Mongolians she also wants to study abroad, to learn how journalism is practised in other countries.

Ms. N. Oyunbayar: Also a reporter with the UB Post newspaper, Oyunbayar, is a graduate of Ekaterinburg University in Russia, where she qualified as a Russian language teacher. She left her pupils in Sukhbaatar aimag, where she was born, some years ago and decided to undertake a personal crusade against wrongdoing by becoming a journalist for the UB Post. She is an award-winning journalist and a member of the Mongolian Free Democratic Journalists Association. She loves to cook and enjoys learning about new cuisines. 

Ms. T. Mandala: A historian and journalist, she is a reporter with the “Weekend” weekly newspaper. She has been a journalist for two years, has written several interesting interviews with politicians, including the Mongolian parliamentary speaker R. Gonchigdorj and MPs Da. Ganbold and E. Bat-Uul. She explores issues like life after death and she wants to be a public defender in a court one day. 

She is a successor of her grandfather Khodoogiin Perlee, who is a famous historian in Mongolia. And studies religion, especially Buddhism and Shamanism. 

Mr. D. Dorjjav: A psychologist and a lecturer at the Administrative Management Department of Mongolian National University, he is married and has two girls and a boy. He is currently working on his doctoral thesis. His wish is to help people to open themselves up and discover their abilities. His plan for the future is to contribute to the psychological understanding of life in Mongolia. Dorjjav’s hobby is to talk to people and exchange opinions.

G. Enkhtuya: Born in the year of the pig (there are twelve years in the lunar calendar), a professional in marketing, trading, journalism, she is currently studying law in the Institute of Legal Studies, Mongolian National University. She is also a reporter for Odriin Sonin independent daily newspaper, once the largest state-owned newspaper until the start of 1999. She likes to cook when she is liberated from her official duties.

Jill Lawless: An Honourary Foreign Member of the Mongolian Free Democratic Journalists Association, Jill has been the editor of the UB Post newspaper since 1997. Jill regularly contributes to Agence France-Presse, Far Eastern Economic Review, Deutsche Welle and the Canadian Broadcasting Corporation. She is happiest riding camels in the Gobi desert. 

Michael Kohn: Michael is the editor of the Mongol Messenger and contributed to the first edition of Ger. He is a regular contributor to Associated Press and the Far Eastern Economic Review. Michael is an avid traveler and is an expert on hitchhiking across Mongolia.  

Ms. N. Baigalmaa: Photo journalist for Onoodor (Today) newspaper, the number one independent newspaper for three years. “Photo journalism is always interesting. I really enjoy taking action photos.” She is fed up of taking photos of static photos of people standing or sitting and has devoted her life to photo journalism. One never boring thing for her is her two sons and a girl. Sometimes she loses her sports jacket to her oldest son, now taller than her.”

Stories

Depositors’ blues: Banks fail to reform and become solvent.In the absence of a trustworthy formal banking system, Mongolians are sticking to an elaborate informal banking system driven by pawn shops

by G. Enkhtuya

“Mongolia is currently in the clutches of a full-blown banking crisis. On the surface life appears normal on the streets of the capital. Workers busily renovate apartments to open as shops and restaurants, while other workers march to the many building sites throughout Ulaanbaatar. But there is no doubting the situation is serious.”

Young Mongolian entrepreneurs lead the business revolution

By Michael Kohn

“Under communism, L. Bayasgalan studied fungus. Under capitalism, she’s used her scientific knowledge to build her own organic vegetable business. The 35-year-old is in the vanguard of a budding army of Mongolian entrepreneurs cashing in on the impoverished landlocked country’s nine year transformation from the world’s second oldest communist state to a free-market democracy.”

Meat, milk and Mongolia: 
Misunderstood and often maligned, the Mongolian diet does make sense

By N. Oyunbayar

“A stroll down any Mongolian residential street is usually the first introduction to a visitor of the savoury odours of the traditional meals of this country. If you are invited into somebody’s ger (or traditional tent dwelling) or apartment, you will probably have an opportunity of tasting buuz, khuushuur and bansh.

“These Mongolian national meals are made with minced meat seasoned with garlic or onion (it can be anything from mutton to beef to camel to horse to gazelle) covered with flour and steamed in boiling water, fried in oil and boiled in water. For many visitors to the country the vast quantities of meat consumed can at first be surprising. But it is not long before a visitor finds their favourite Mongolian food, be it buuz, khuushur or a number of other treats. A Canadian living in Ulaanbaatar once told me, “the Mongolian national food contains a lot of meat, but I like the buuz.

“The meat-dependent diet arises from the need for hearty food to stave off the cold and long winters. Traditionally nomadic herders, Mongolians have for centuries been dependent on mostly animal products for their dietary staples. Now after over nine years of transition, the traditional diet has been used as a shield against hunger and for the wealthy, subject to the influence of imported foreign foods and cuisine. When the Russians pulled the plug on Mongolia’s aid in 1991, the economy went into a severe crisis. For many Mongolians it was their first experience of serious hunger. The staple traditional diet of meat, milk and flour saw many people through this crisis, when food imports from the former Soviet Union dropped off.

“Mongolians traditionally have turned to foods that are high in protein and minerals, relying less on more seasonable foods like vegetables and fruits. This means a diet heavy on meat and dairy products, the latter when sour in the summer time thought to clean the stomach. It isn’t just about meat though. Mongolians do also eat cereal, barley and natural fruits and plants native to the country.

“Out of necessity Mongolians have found creative and ingenious ways to use the milk of all five of the domestic animals in the country: sheep, cattle, goats, camels and horses. Orom is the cream that forms on top of boiled milk; aaruul are dried curds and can be seen baking in the sun on top of gers in the summer; eetsgii is the dried cheese; airag is fermented milk of mares (female horses); nermel, is the home-brewed vodka that packs a punch; tarag, is the sour yogurt; shar tos, melted butter from curds and orom, and tsagaan tos, boiled orom mixed with sometimes flour, natural fruits or eesgii. The method of drying the dairy products is common in preparing them. The Mongolians prepare enough dairy products for the long winter and spring.

“The traditions of using, producing and preparing these foods are stronger outside the main cities, where the population is more reliant on the vast herds for food. B. Baljmaa (Mongolians generally use their first names), a dietitian and nutritionist at the National Nutrition Research Centre, says there is a genetic compatability for the food.

‘Before 1992 there wasn’t much research in this area. But now we know from our research that Mongolians are better able to absorb foods with more acid. So, traditional food should be kept in the country.’

“Since 1997 Mongolians have seen a substantial increase in the variety and quantity of imported foods, many of which were only thought of as exotic 10 years ago. Since the start of 1999 the Soviet-style market stalls now compete against western-style supermarkets, with trolleys and shelves proudly saying “Made in Mongolia.” In markets like Dalai Eej, Dorvon Uul, Food Land and Mercury it is possible to buy delicious prepared and canned foods, candies, biscuits, and unknown and unused before by Mongolians, products like oranges, bananas, plums and American chickens.

“On top of the canteens and cafes serving Mongolian food, there are now many restaurants, canteens, bakeries and tea shops which serve meals from Russia, Italy, India, China, Japan, Korea, England, France, Senegal and Turkey. Most of these restaurants are located in the capital, Ulaanbaatar. Mongolians have taken to the new tastes. “I think Mongolians like roasted chicken and fish when they go to the foreign sit-down restaurants, and hot dogs and pizzas in the fast foods shops,” says I. Narantsetseg and her husband J.Battulga. Both were dining in the Seoul restaurant, and are happy they can go out for food: “it is a very good thing that there are opening a lot of restaurants where friends and family can go and enjoy food in comfort.”

“Isobe Hiroshi, manager of Seketei, a high-end Japanese restaurant, told me “only 20 per cent of our customers are Mongolians. The vast majority of our clients are foreign, especially Japanese people who are working and traveling here. I think Mongolians have still not grown used to sushi and sashimi, the raw fish prepared in our restaurant. But I hope we will welcome more and more Mongolians in the future.”

“The traditional diet in the cities is more changed, more european. And with comes its own dangers for Mongolians says the Nutrition Centre’s Baljmaa:

‘There is a big problem of importing poisonous foods and food which probably will cause the nutrition-related diseases common in more developed countries,” she continues.”While the trend around the world amongst health-conscious people is towards natural products for their food, some Mongolians use some food which can cause troubles for their health. For example, fast food made with more oil, salt and sugar are considered the biggest dangers for human health. On the plus side prices for these imported foods are higher and only the wealthiest people can afford them; the poor people can’t buy and eat it no matter how much they desire. This means their poverty is protecting their health. We should boost our efforts to raise awareness on what foods protect your health.’

“Help in improving nutrition awareness a poster portraying a ger details the food habits of Mongolians and the nutritional value of common foods.

“Now I want to present to you recipes of processing and preparing some Mongolian national products and meals:

“From ancient times, Mongolians use abundant and peculiar methods of processing meat and preparing food.. One of the more popular methods of processing the meat is to prepare borts (dried meat) for use in winter. Borts is made from the meat of cows, goats and camels. Here is a recipe for camel borts presented by Dr. Sh. Tserenpuntsag who engages in the research of the meat.

1. Separate the meat from its layer of fat, as fat will spoil in drying.
2. Cut meat into strips about 20-30 centimeters long and two to five centimeters thick.
3. Hang to dry in a well-ventilated room.
4. Leave for four to five months.
5. Cut into small strips for use in any dish you like.

“If soaked in water, the meat will expand up to two and half times in size. It should then be cooked for 18 minutes.

“The main method of cooking the meals of the Mongolians is boiling and steaming, considered the most healthy method in cooking by researchers the world over. Here is a recipe for buuz from the Nutrition Centre. It is considered one of the national meals of the Mongolians and is cooked by steaming and is a good fast food.”

Girl power in Mongolia: What is the status of gender after nine years of transition?

By D. Dorjjav

“As American author Arthur Schlesinger once said, the main breaker of peace in our time is social differentiation. It is unfortunate that, despite developments in human civilisation, modern times have brought only new manifestations of this phenomenon, based on people’s mind, feeling, life style, goals and dreams.”

Money may be tight, but Mongolians are still going online, booting up and sending emails

By Jill Lawless

“Inside Mongolia’s former Construction College, a slab of brightly painted concrete overlooking Ulaanbaatar, murals on the peeling walls still depict beefy workers engaged in heroic labour. The stern visages of Marx, Engels and Lenin loom above the central staircase.

But students these days have neither communism nor construction on their minds. The building is now the School of Computer Science and Management of the Mongolian Technical University.”

The real Mongolian gets the nod from Western fashion designers. Mongolia’s top fashion designer, Solyolmaa, gives Ger a quick lesson on Mongolian clothing

By A. Delgermaa

“Last year’s fashion runways were dominated by one influence: Mongolian traditional design. If a designer wanted to show they were boldly embracing natural fibers and furs, then the refrain ” my show is all Mongolian” would be proudly boasted to the media. The country has become a synonym for sartorial flare and rugged beauty. It also doesn’t hurt that one of Mongolia’s top exports, cashmere wool, is in vogue, from Japan to Europe to the United States. After years of being isolated from the west under the umbrella of the Soviet Union, Mongolian fashion is proudly strutting the catwalks of the world.”

Cashmere is king but Mongolia still struggles to reap the benefit

By A. Delgermaa

A Mongolian cashmere designer once opined that Mongolians are lucky that most goats in the country are capable of producing fine cashmere. And while Chinese cashmere dominates the marketplace, Mongolian cashmere is by far the purest and finest.

About 30 cashmere companies contributes tens of millions of dollars a year to the country’s wealth (though nobody is quite sure how much because most cashmere sales go unreported to the government). But the revenue isn’t what it used to be due to problems in the domestic industry and a drop in the world price. Z. Ayur, chief secretariat of the Gobi company, thinks it doesn’t have to be that way. “Unfortunately we lose half of our raw cashmere to China,” he says.” The Chinese buy cashmere at a high price, not depending on the quality. This means national manufacturers lack raw cashmere to process into garments.” He thinks raw cashmere exports should be banned or subject to a duty of 100 to 150 per cent. Mongolia’s weak infrastructure plays a part as well. It is cheaper for herders to travel to the Chinese border with cashmere than to bring it to the capital, Ulaanbaatar. Often when they are at the border with China, they are subjected to some hard bargaining by Chinese brokers, who exploit the fact herders can’t afford to walk away empty handed. 

Cashmere has always been considered a luxury and expensive. But in the past two years it has lost its fusty image as only for old people. Trendy designs have attracted a vast market of younger cashmere consumers. “I guess in the past it was dear and expensive and designs weren’t very appealing to the younger set,” thinks Gerelmaa, the chief designer of Gobi company. 

The Gobi company is one of the few state enterprises left over from the socialist period that still makes money (and is due for privatization this year – a prime pick for foreign investors). 

In 1972 the United Nations funded projects to experiment with starting a cashmere garment industry in Mongolia. This innovative thinking led to a joint Japanese-Mongolian venture in 1981 to start the first cashmere manufacturer, Gobi. These days it still produces one third of the country’s cashmere products. 

Mongolian Wool and Cashmere Federation head Tsendmaa is optimistic about the drop in the world market price.” It will soon go back up again,” she says with confidence. “The reserve of cashmere in the world will run out soon. What happened with the drop in prices is typical of any industry when it overproduces.” What worries her most is the flood of Mongolian cashmere going to China, where Chinese workers process and knit the garments and reap the job benefits.

While cashmere is still known for its use in classic turtle, crew and v-neck jumpers, things have changed. “Before we mostly exported classic styles in off-white, brown, grey, black, bark, blue or dark red to Japan or Germany,” continues Tsendmaa. “Now Americans order more fashionable cashmere for the young. The designs of short jumpers that expose bare chests and waists are cheap to produce (less material) and suitable for young fashions.” 

Italian, French or Belgian customers are fussier and demand greater variety in designs. These countries determine the vogue for cashmere wear and use the most high tech knitting technology.

Contemporary cashmere fashion in France or Italy can combine fur or silk. Colours have also been revamped, with the young going for light blue, light pink, snow white, off-white and light green. Italians and Americans like metal grey with rose or pink. Mixing up the colours in sporty stripes and lines is also popular.

Cashmere is very practical, warm and light. “It is not suitable for the office,” says Gerelmaa.” Cashmere wear is more suitable to wear for a night out or just for hanging out. But of course it is not for sport!” 

Fashionable Mongolian cashmere is becoming a strong competitor to Chinese, Italian, Scottish or American cashmere. “The raw material is pure and the design is more fashionable.” And a happy Gerelmaa likes the sound the cash register makes in Japan: “In Japan classic Mongolian style is sold for more than US $1,200 in the Takashimaya Store, in GINZA.” Now if more of that kind of hard cash found its way back to Mongolia, the country would definitely be better off. 

Mongolians call them mannequins, but this model has something to say and a good head on her shoulders

Interview by A. Delgermaa

It could be said that there is no girl who does not dream of becoming a model. Many Mongolian girls, particularly Ulaanbaatar city girls, are flocking to attend courses in modeling in the last few years. Some say models are mushrooming in Mongolia, a country known for its fresh-faced people and robust physiques. 

Ger interviewed S. Ikhertsetseg, one of the twin top models of Mongolia.

When did you first appear on the fashion stage?

“When we were 15 we played piano for the state concert on International Women’s Day on March 8. The ( Best Fashion) company was in trouble and they did not have anyone to wear some leather fashions for the show in the concert. It was fortuitous that we were asked to be the models. We kept it secret from our parents until we received a prize from Mongolia’s top fashion show, Goyol (or beauty) , in 1988. That was a year after the state concert. Being a fashion model was not considered so desirable as it is now. We were busy studying at music school and our parents did not know what we were doing.”

What do you think of today’s models?

“In the early days of fashion shows in Mongolia in the 1980s, we did not have many competitors. These days there are many beautiful Mongolian models we have to compete with, but only a few are very good. If someone is lucky, they have the potential to compete at the world level. Personally, I don’t like models who are too trained by courses.”

Do you think becoming famous is pure luck?

“Of course it is luck. But that doesn’t mean it isn’t a lot of hard work. You must send photos to agencies, and then only then, will someone see your photo – that is luck.”

What about design and fashion in Mongolia? Are Mongolians fashion sensitive?

“I can not say Mongolians are sensitive to fashion. I think our designers should work harder. Design is not a dress or a suit. It is everything, the whole cornucopia of details. I do not think we are going to compete with Europe, which has a long history of making clothing, rich in colors or designs. There is a big difference between fashion in the West and in Mongolia.”

Mongolia has a lively free press who sometimes step over the line when it comes to gossip and scandal reporting. These so-called “yellow” newspapers have damaged many people’s reputations. This had also happened to you. Some newspapers called the two of you the Barbie girls in Beijing, earning a lot of money.

“Yes, they did say those bad things. We replied to them.”

Was it before the court?

“No, that is a personal question.”

What was the result?

“The newspapers didn’t do that again.”

What do you do now?

“Both of us keep up the fashion work and also teach piano. Music is our profession and love. We founded the Association of Models of Mongolia to protect their rights and strengthen their position in the society.”

Impact

The stories have been featured in many books on the country, and the magazine was recommended as a good resource by the Lonely Planet guidebook. 

This was not only the first publication of its kind in the UN, it was also a pioneering online venture and remarkable for a country lacking the advantages of wealthier countries.

An online survey of the state of Mongolia’s media and its history (www.pressreference.com/Ma-No/Mongolia.html), had this to say: “An interesting variation from some of the other publications available is Ger Magazine (published online with guidance from the United Nations Development Program, UNDP), which is concerned with Mongolian youth in cultural transition. The name of the magazine is meant to be ironic because a ger is the Mongolian word for yurt—a yurt being traditional nomadic housing—but the magazine is about urbanization and globalization of Mongolian youth.”

Citations

A Complete Guide on Celebrations, Festivals and Holidays around the World by Sarah Whelan, Asteroid Content, 2015

Gale Directory of Publications and Broadcast Media by Jeff Summer, Gale Group, 2001

Mongol Survey, Issue 8, The Society, 2001

Mongolian Culture and Society in the Age of Globalization by Henry G. Schwarz (editor), Center for East Asian Studies, Western Washington University, 2006

Nations in Transition: Mongolia by Jennifer L. Hanson, Infobase Publishing, 2003

Teen Life in Asia by Judith J. Slater, Greenwood Publishing Group, 2004

World Press Encyclopedia: A Survey of Press Systems Worldwide, Volume 1 by Amanda C. Quick, Gale Group, 2003

Some of the team behind Ger:

Editor-in-Chief: David South

Logo Design: P. Davaa-Ochir

Layout and Online: B. Bayasgalan

Contributors: A. DelgermaaMichael KohnJill LawlessPeter Marsh, and N. Oyuntungalag.

Read the Wikipedia entry here: en.wikipedia.org/wiki/Ger_magazine

Read the full content by searching the www.archive.org wayback machine via the http://www.un-mongolia.mn website: https://web.archive.org/web/19990420090143/http://www.un-mongolia.mn/

Ger Magazine contributor Jill Lawless’ book Wild East: Travels in the New Mongolia here: https://wildeasttravelsinthenewmongolia.wordpress.com

This work is licensed under a Creative Commons Attribution 4.0 International License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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The Sweet Smell Of Failure: The World Bank And The Persistence Of Poverty

Paper delivered to the School of Politics and Government, Birkbeck College, University of London, London, UK, 2000

“… aid is no longer charity. It has become intrinsic to the maintenance of the international capitalist economy … (Fieldhouse 1999).”

By David South

In January 1949, US President Harry Truman set forth a challenge for the remainder of the 20th Century: the wealthy nations must aid the poorer ones to become wealthier and more democratic: in short, to become like the United States (Starke 2001: 143). The means of accomplishing this was to be international development, and its tool, foreign aid.

Decades later, this dream was being described as a nightmare. One of the most articulate proponents of the aid-is-waste thesis is Graham Hancock. His Lords of Poverty comes down unequivocally on the side of failure. Hancock argues that aid “is a waste of time and money, that its results are fundamentally bad, and that – far from being increased – it should be stopped forthwith before more damage is done (Hancock 1996: 189).”

Hancock originally wrote those words in 1989. Subsequently, a decade has past where international development organizations have attempted to prove the success of development in a wider context of the collapse of the Soviet Union, a crippling economic crisis in Asia and the former Soviet Union, and dizzying changes in information technologies. In addressing the proposition that “by the end of the 20th century, ‘development’ had failed”, it is important to clarify the underlying intentions of interntional development and whi the true actors are, and the interaction of politics and economy.

This paper will focus on one actor, the World Bank, which has seen itself as the principal international development organization for the past 55 years. I argue that the World Bank has been very successful at building a dependence on development institutions, itself in particular, but has failed at development as it has defined it: the elimination of poverty. The four main power structures underpinning the world economy described by Susan Strange – security, production, financial, and knowledge (Strange 2000: 43-119) – are each addressed by the World Bank’s programmes to varying degrees of success. It is the World Bank’s interaction with these power structures that have been a source of both stability and instability in the past 55 years.

I have chosen the World Bank because, as Hancock notes, it is

The pace-setter of Development Incorporated … the fact is that all official aid agencies, whether bilateral or multilateral, co-operate very closely with it, imitate its policies and its sectoral priorities and, to a large extent, share what might be called its ‘philosophy of development’. (Hancock 1996: 57)

I conclude that international development is now entering a new phase spurred on by the economic crisis affecting many developing nations after 1997, and not facing its destruction, in spite of rowdy protests around the world. The Asian Crisis provoked an increase in development spending, while simultaneously significantly raising awareness of international development institutions. At the beginning of the 21st century, the rise of the non-governmental organization as a key actor in development is strongly pronounced.

The fact that NGOs and private consulting companies are becoming the principal delivery mechanisms for development projects demonstrates a global lack of faith in government-run agencies and a belief in neo-liberal assertions that the private sector can do a better job.

1. Development: pernicious or persistent? 

The word development needs to be pulled apart. Its endurance as a concept comes down to its ability to mean many things to many people. It is a loaded word, which upon closer inspection, becomes befuddingly vague and as slippery as an oil-soaked eel.

Development as defined by President Truman at the start of the development period of the 20th century meant “nothing less than freeing a people from want, war, and tyranny, a definition it is hard to improve on even today (Starke 2000: 153).”

Dictionary definitions of development take in ideas of growth, progress and evolution. As Hancock noted in Lords of Poverty, “underdevelped” countries “must in some sense be stunted and backward; ‘developed countries’, by contrast, are fully grown and advanced (Hancock 1996: 41).” Hancock bristles at the moralistic notion that particular countries may need to develop; in this he would probably have clashed with Marx, as Fieldhouse notes: “much as he hated capitalism, Marx saw it as a necessary agency for creating what we now call development in India and, by inference, most parts of the Third World (Fieldhouse 1999: 44).”

A refinement of this definition is one offered by the World Bank’s president in the 1980s, Barber Conable. Development offers measures “to promote economic growth” and “combat poverty”; those are the “fundamental tasks of world development” with the World Bank being the “world’s principal development agency” (Hancock 1996: 41).

More recently, in answer to heated criticism from donor nations and powerful NGO lobbies, the World Bank has adopted a more urgent tone on poverty. “Poverty reduction is the most urgent task facing our world today. The World Bank’s mission is to reduce poverty and improve living standards through sustainable growth and investment in people (World Bank 2000).”

Assessing development according to the World Bank’s definition of development, with its focus on eliminating poverty, it is very hard to say this has been a success, as I show further on.

2. Failure thesis: why the World Bank is a flawed poverty-fighter

The notion that development has failed has its critics on both the left and the right. On the right, development is seen as state welfare, bailing out countries that need to get their own houses in order. On the left, development has been seen, variously as a tool of the wealthy states to control the poorer states, a means to prop up corrupt but friendly elites, environmentally destructive, and a subsidy system for multinationals. Marxists have straddled the contradictions of criticising the effects of development while also chastising the wealthy West for not doing enough for the developing nations.

Since 1990 World Bank cumulative lending has totalled US $162,789.3 million (World Bank Annual Report 2000). Since its inception, global aid has risen from US $1.8 billion a year in the 1950s, to US $6 billion in the 1960s, to US $60 billion in the 1980s, to where it currently stands at US $129.2 billion (World Development Indicators Database). The Bank disburses US $25 billion a year (World Bank). Vast amounts of money is flowing back to the West in the form of payments on debts nearly totalling US $3 trillion (Starke 2000: 153).

In fact, the World Bank through its lending wings, the International Bank for Reconstruction and Development (IBRD) and the International Development Agency (IDA), embodies an inherant contradiction: it has shown itself to be unable to decouple its mandate to recover funds from what might be the wiser strategy. As the Bank puts it, “while the country must “own” its vision and program, the Bank must “own” and be accountable to shareholders for its diagnosis and the program it supports (World Bank).”

Over the development epoch, loans were accepted by countries that have shown themselves to be incapable of repayment, leading to the debt crisis today. While this crippling debt has been accumulated, the world has come no closer to eradicating poverty.

A brief look at the figures shows the scale of the challenge. Development policies have not been able to come to grips with escalating population rates in developing nations. During the period of development, the population of the regions with the lowest rates of development have risen rapidly. As Strange notes:

World population doubled between 1950 and 1984, rising rapidly from 2.5 billion to over 4.5 billion and topping 5 billion by the end of the decade… Numbers have increased most dramatically in the three ‘developing’ regions of Latin America, South Asia and Africa … (Strange 2000: 82)

Aid on the macro scale is also unequally divided, with the 10 countries that two-thirds of the world’s poor live in receiving less than a third of overseas development aid (Raffer and Singer 1996). And when it arrives in a country very little of it gets into the hands of the poor. Some generously claim that 20 per cent of aid reaches the poor (Raffer and Singer 1996), while Hancock maintains even less wends its way to the poorest.

According to the United Nations Development Programme, more than 1.3 billion people live on just US $1 a day; and 2.8 billion live on US $2 a day – nearly half the world’s population (UNDP). This number has remained unchanged since 1990 (Starke 2000: 4). In fact, in sub-Saharan Africa, South Asia and the former communist countries, “the number living in poverty is substantially higher than the figures recorded a decade ago (Starke 2000: 4).” The most noted trend is the diffusion of poverty and its more pronounced ability to sit side-by-side with an economic boom in developing – and developed – countries, fuelled by increased investment, especially in the areas of information technology and telecommunications.

The World Bank has set the target date of 2015 to cut extreme poverty by half. It remains highly dubious as to how the World Bank has any better idea of how to do this than it did in the first 55 years of development theory and practice. Theories have been misguided in the past, as Fieldhouse reminds us:

Central to all post-1950 attitudes to Third World development was the belief that the primary need was capital investment. The defining feature of underdevelopment was thought to be lack of sufficient capital to pay the cost of overcoming the perceived ‘structural’ obstacles to development. A short shopping list of what were then believed to be the necessary measures would include the following: first, the improvement of infrastructure – communications, power and water supplies, urban facilities and hospitals; secondly, education to raise the general level of literacy and to generate skilled workers at all levels, from the highest posts in government and industry, which was believed to be the basis of western affluence and must therefore become that of the Third World. (Fieldhouse 1999: 226)

It has been a period noted by a belief that development could be accelerated, and that the conditions necessary for development were understood and all that was necessary was capital and will.

In fact international development, when it has intended to eliminate poverty, has been unable to detatch itself from what can only be called the whirlpool effect, or the core-periphery debate: a tendency for wealth and power to be dragged into the centre, like a whirlpool: to wealthier nations, wealthy elites, capital cities. While aid is ostensibly about countering this trend, it fails miserably at doing it. The continent that requires the most aid, Africa, receives the least – in the 1990s the World Bank lent Africa a total of US $1,872.8 million (World Bank). It lent Latin America and the Caribbean US $51,520.8 million (World Bank). If, as Truman said, development is about helping those suffering from want, war and famine, then Africa is being ill served.

Looking at the evidence, it shows that aid follows the same pattern as private investment, seeking out success stories, rather than the poor, who by definition are society’s losers. It is an established fact that most trade flows and foreign direct investment is between the wealthy countries (Hirst and Thompson 2000: 2). The percentage of world trade captured by the developing countries has dropped from 50 per cent in the 19th century to 22 per cent (Hoogvelt 1997: 14). It is this tendency that builds into international development a peripherising effect that leaves billions on the outside of development and wealth acquisition – and draws the criticism that development has failed at its principal aim, as the World Bank puts it, to reduce poverty.

3.  Security/production

Strange has noted where power lies in the modern world. Those who can influence or determine the structures of power will wield enormous influence over economic and political relations. The World Bank is an institution that has had a profound effect on the power structures of the world economy, with positive and negative consequences.

Security is the “provision of security by some human beings for others (Strange 2000: 45).” Strange focuses on the state as the primary provider of this security in the current international political system. She also broadens this definition to include “security from slow death by starvation, and security from disease, from disablement, or from all sorts of other hazards – from bankruptcy to unemployment (Strange 2000: 47).” And she attributes most conflict to disagreements over authority.

One of the biggest challenges now facing developing states is that of authority over their affairs. It is a two-pronged challenge, from outside and from within, as much of development aid now targets NGOs and civil society.

It is arguable that the World Bank’s greatest contribution to a state is its advice on governance, legislation and anti-corruption. While the World Bank is not tasked with a specific security mandate, it does play a significant role in supporting the viability of nation states, and offers up an off-the-shelf range of authoritative institutions that nation states are advised to take up. Through Structural Adjustment Loans (SAL) and their equivalents, countries are persuaded to adopt these measures or face losing the lifeline of funds.

These policies also dovetail with global concerns for security and stability, in terms of the absence of conflict and also in terms of predictability. Other governments will feel more comfortable dealing with philosophies and institutions that ring of familiarity. But how susccessful has the World Bank been?

Evidence has shown that the SAL loans and their package of reforms were destabilizing and inherently contradictory. As Hoogvelt illuminates:

they sought to denationalize the economies themselves by imposing various forms of deregulation, liberalisation and privatisation, indeed the dismantling of the public sector … At the ideological level it made the bailiffs walk a tightrope between, on the one hand re-affirming the notions of national sovereignty and national economy, while at the same time, and on the other hand, confining development economics and any hint of Keynesian notions of national economic management to the dustbins of history. They had to uphold the state and destroy it at the same time! (Hoogvelt 1997: 167)

The results have actually jeopardised security within Africa, and according to Robert Kaplan, the chaos on that continent will wreck havoc outside Africa as well (Kaplan 1994). Security is probably the World Bank’s greatest failure in the four global power structures. Hoogvelt concludes that its legacy in Africa is particularly disturbing:

In many African countries, the imposition of the neo-liberal orthodoxy, including privatisation of the public sector, the emasculation of the state apparatus and the insistence on electoral reform, has directly contributed to the descent into anarchy and civil wars. (Hoogvelt 1997: 175)

Production as Strange states it, is “the sum of all arrangements determining what is produced, by whom and for whom, by what method and on what terms (Strange 2000: 64).” Production is a bright spot for the World Bank, in that conventional economic statistics have shown a growth in production (even after the 1997 Asian crisis), fuelled by increasing investments in telecommunications, information technologies and greater investment in public utilities (Hirst and Thompson). The World Bank has also an extensive history funding infrastructure projects critical to the functioning of a modern economy, including roads, dams, airports, and ports. There is an extensive literature on the corruption and inefficiency of many of these projects, but at a minimum infrastructure was built.

The World Bank has been “able to profoundly affect the organisation of production and trade in the periphery to the benefit of the core world capitalist system (Hoogvelt 1997: 166).”

During the World Bank’s tenure, foreign direct investment has gradually increased for these states, but because of an intensification of trade between the wealthy nations, the global distribution of GNP has,

changed little over the 1970s and 1980s, and indeed became more unequal rather than less after the 1970s. What all this shows goes against the sentiment that benefits will ‘trickle down’ to the less well-off nations and regions as investment and trade are allowed to follow strictly market signals. (Hirst and Thompson 1999: 71)

At a minimum, links have been built and could be the basis of a re-alignment of the world economic order under fairer terms. Hoogvelt notes the links are unquestionably tight:

Structural adjustment has helped to tie the physical economic resources of the African region more tightly into servicing the global system, while at the same time oiling the financial machinery by which wealth can be transported out of Africa and into the global system. (Hoogvelt 1997: 171)

4.  Financial/knowledge

Strange calls financial power the ability to “create credit”. It “implies the power to allow or to deny other people the possibility of spending today and paying back tomorrow, the power to let them excercise purchasing power and thus influence markets for production, and also the power to manage or mismanage the currency in which credit is denominated (Strange 2000: 90).”

The World Bank’s vast lending capabilities, as shown earlier, means the Bank literally has the power to switch the lights on or off in a country’s economy. It has also been in the forefront of creating today’s “casino” economy, as Strange calls it, the 24/7 financial markets. It has served the interests of the core economies in this arrangement, as Hoogvelt elaborates:

In a world economy dominated by global financial markets, by money careening around the globe at a frenetic pace, the principal national economic objective of the core countries has to be, and indeed has become, one of maintaining the competitive strength of their currency vis-a-vis each other, fighting domestic inflation that threatens this competitive strength, and trying to catch as much as possible of the careening capital flows into the net of their domestic currency areas. (Hoogvelt 1997: 165)

As Fieldhouse reminds us, “In the later twentieth century, in fact, the World Bank and the IMF were the main proponents of free trade and other related principles in the less-developed world. They thus filled the same role as Britain had done a century earlier (Fieldhouse 1999: 20).”

After World War II, it became apparent the world financial system was not going to be able to function with a hands-off United States. The Marshall Plan in Europe established the precendent of significant loans to aid countries to economically “recover”. As these two influential World Bank economists wrote, it was partly about creating conditions amenable to investors’ interests: “Thus, basic fiscal and monetary discipline, including a properly managed exchange rate, helps establish the credibility of economic policy that gives entrepreneurs the confidence to invest (Stiglitz and Squire 2000: 386).”

And they confirm the whirlpool effect: “Entrepreneurs will not invest in countries where the policy regime is unstable – investors require a degree of certainty (Stiglitz and Squire 2000: 386).”

The World Bank since 1996 has called itself the “Knowledge Bank”, because “We live in a global knowledge economy where knowledge, learning communities, and information and communications technologies are the engines for social and economic development (World Bank).”

In many respects, the World Bank has defined development as most people understand it. As Hancock reminds us, “Consciously or unconsciously we view many critical global problems through lenses provided by the aid industry (Hancock 1996: xiv).” Knowledge and intelligence-gathering is key in an age dominated by information. As Clark notes of development organizations,

The ‘software’ of their trade – ideas, research, empowerment, and networking – are rapidly becoming more important than their ‘hardware’ – the time-bound, geographically fixed projects, such as wells and clinics. In this new age, information and influence are the dominant currencies rather than dollars and pounds. (Clark 1992: 193)

The vast volume of statistics and reporting produced by the Bank on the global economy is valuable and it is frequently used as a source even by its critics. This quite possibly is the Bank’s greatest success. The Bank’s focus on information technologies is also valuable and it is aiding developing countries around the world to gain access to the internet for example. Keohane notes that information by its very existence can generate greater cooperation between states:

Informaton, as well as power, is a significant systemic variable in world politics. International systems containing institutions that generate a great deal of high-quality information and make it available on a reasonably even basis to the major actors are likely to experience more cooperation than systems that do not contain such institutions … (Keohane 1984: 245)

Conclusion

Like a chameleon, the political and economic actors in development change their appearance according to evolving conditions. I have argued in this paper that the fundamental needs – a desire for markets, global interconnectivity and political control – ensure the World Bank’s role in international development remains principle to the day-to-day lives of developing countries. It is also a fact that development organizations such as the World Bank have amassed a wealth of knowledge and expertise that binds donor nations to them, though this is being supplanted by NGOs as they in turn create a dependency between themselves and the World Bank.

The World Bank’s greatest success has been the perpetuation of the development industry and its role vis-a-vis the global power structures. It is particularly remarkable that development aid has been so robust for such a lengthy time, and points to the key needs in the power structure that it fulfils. However, the World Bank has failed to significantly reduce poverty in the world, and since it defines development as principally poverty reduction, its form of development has failed.

Development aid in and of itself is a highly successful formula, as attested by the boom currently experienced by NGOs. The trend towards these new actors is well advanced, as The Economist noted: “NGOs have become the most important constituency for the activities of development aid agencies (The Economist 2000: January 27).”

Even more compelling, “Between 1990 and 1994, the proportion of the European Union’s relief aid channelled through NGOs rose from 47% to 67%. The Red Cross reckons that NGOs now disburse more money than the World Bank (The Economist 2000: January 27).”

Unfortunately, there seems to be little evidence that any organization working in development will be out of a job by 2015. In the meantime, the poor remain peripheral actors in a play staged for the benefit of those who are not poor. As Fieldhouse notes:

Thus aid is no longer charity. It has become intrinsic to the maintenance of the international capitalist economy, a system by which western governments directly or through multilateral agencies, mobilize debtors so that they can continue to meet their obligations to both public and private creditors. (Fieldhouse 1999: 253)

Pax Chaotica: A Re-evaluation of Post-WWII Economic and Political Order

In The Interests Of The Exploited?: The Role Of Development Pressure Groups In The UK

A Steppe Back?: Economic Liberalisation And Poverty Reduction In Mongolia

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2017