Managing the Development Table of Contents of the study Process and Aid – Key Factors Affecting the Formulation and Ch.1: Introduction and Overview Ch.2: Institutional Framework for Development Enhancement of Development Administration Administration and the Role of Central in East Asia – Economic Agencies Ch.3: The Role, Characteristics and Evolution of Development Planning Ch.4: Mechanisms for Macroeconomic Coordination Ch.5: Public Investment Programming and Project Feb. 2007 (UK mission) Approval Masumi Shimamura Ch.6: Case Study: Eastern Seaboard Development GRIPS Development Forum Plan in National Graduate Institute for Policy Studies (GRIPS) Ch.7: Key Factors Affecting the Formulation and Enhancement of Development Administration

1. characteristics of development Highlights of the slides administration in three East Asian countries

1. Major characteristics of development administration in Thailand, and the esp. in 1980s Delegate authority 2. Formulation and enhancement of development Leader ‹“Bureaucratic polity” Centralized administration in three East Asian countries system Technocrats (Central Economic 3. Key factors affecting the development Centralized system Agencies) administration managed by elite 4. Final remarks technocrats who were delegated authority Ministries, departments, other state organs and „ Thailand and Malaysia: from the late 50s to the 80s from political leaders local governments (now emerging donors) „ The Philippines: before and after the 1986 “turning point” (enhancement of development administration still on-going)

Major characteristics of development Major characteristics of development administration in three East Asian countries administration in three East Asian countries

Support to realize Legislature leader’s vision esp. after 1986

‹“Top-down” development Leader ‹“Dual track” development Leader administration Centralized system administration Intervention Technocrats Technocrats Executive Centralized system led by (Central Economic (Central Economic branch Agencies) Dual system administered Agencies) political leaders and by executive branch but supported by elite challenged by legislative technocrats to realize Ministries, departments, Ministries, departments, other state organs and intervention other state organs and leaders’ vision local governments local governments

1 Chronological Outline of the Development Plans and Political Leaders of Thailand, Malaysia, and the Philippines Thailand Thailand

Prime Ministers Kukrit Suchinda Plaek PoteThanom Sarit Thanom San Sen Sen Tan Kriangsak Prem Chatcha Ana Ana ChuanBan Chavalit Chuan Thaksin

NEB NEDB NESDB ↓↓ ↓ 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 National Economic Development P NEDP 1 NEDP 2 National Economic and Social Development Plans NESDP 3 NESDP 4 NESDP 5 NESDP 6 NESDP 7 NESDP 8 NESDP 9

Malaysia

Prime Ministers Tun Abdul Razak Dato' Seri Dr. Dato' Seri

EPU ICU Independence(Malaya) Malaysia riot ↓↓↓↓↓ 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Malaya Plans 12 Malaysia Plans MP 1 MP 2 MP 3 MP 4 MP 5 MP 6 MP 7 MP 8 MP 9 Outline Perspective Plans OPP 1 OPP 2 OPP 3 National Policies New Economic Policy National Development Polic National Vision Policy Prime Minister Sarit Prime Minister Prem Other National Development Policues ↑ th rd th Look East Policy 30 Government 43 –45 Government ↑ Malaysia Incorporated 9 February 1959 - 8 December 1963 12 March 1980 - 19 March 1983 ↑ 30 April 1983 - 5 August 1986 Industrial Master Plan ↑ 5 August 1986 - 29 April 1988 Vision 2020 Philippines

Presidents Carlos GarcDiosdado Macapagal Ferdinand Marcos Corazon AquinoFidel Ramos J. Estrada

NEC PIA PES NEDA Marshall Dr. ↓↓↓↓ Former Governor of (Central) 35 ……57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 01 02 03 04 05 06 07 08 09 10 Medium-Term Philippine Development Plans Bankf of Thailand (1959-1972) http://www.thaiembdc.org/bio/pms/pmlist.htm http://en.wikipedia.org/wiki/Image:Puey.gif

Malaysia The Philippines

President Marcos th Prime Minister Rahman Prime Minister Razak 10 President President Aquino st 1 Prime Minister 2nd Prime Minister 30 December 1965 – 25 February 1986 11th President 31 August 1957 – 22 September 22 – 14 January 1976 25 February 1986 – 30 June 1992

Prime Minister Mahathir President Ramos th 4th Prime Minister 12 President 16 July 1981 – 31 October 2003 30 June 1992 – 30 June 1998 http://ms.wikipedia.org/wiki/Tunku_Abdul_Rahman http://en.wikipedia.org/wiki/Ferdinand_Marcos http://en.wikipedia.org/wiki/Abdul_Razak http://en.wikipedia.org/wiki/Corazon_Aquino http://ms.wikipedia.org/wiki/Mahathir_bin_Mohamad http://en.wikipedia.org/wiki/Fidel_V._Ramos

2. Formulation and enhancement of development Formulation and enhancement of development administration in three East Asian countries administration in three East Asian countries Thailand Malaysia The Philippines Formulation of development administration Formulation ‹Late 50s-early 60s: ‹Late 50s-early 60s: ‹70s: centralized with donor advice with donor advice development of development ‹Late 50s-early 60s: basic framework for coordination administration (WB, US etc), basic (WB, US, UK etc), administrative body foundations for basic foundations for (NEDA) created mechanism institutionalized among central economic coordination planning and ‹After 86: NEDA agencies mechanisms coordination reorganized, and established among mechanisms inter-agency central economic established and the committees began to „ Prime Minister Sarit’s vision (1959-63) agencies, with PM’s Department facilitate Adopted “development through growth” concept and introduced “top-down” disciplinary functions strengthened (British coordination planning approach system adopted) „ Technocrats’ initiatives -- led by Dr. Puey Ungphakorn: Enhancement ‹80s: national-level ‹70s: new ‹90s: inter-agency the longest serving Governor of the Central Bank (1959-72) of development committees and sub- administrative committee functions Created the basis for coordination among central economic agencies administration committees machinery (esp.ICU) institutionalized, and „ Role of foreign assistance established to added to implement ODA management „WB: assisted to establish and strengthen the govt’s planning capacity facilitate coordination New Economic Policy strengthened, but -- NEDB* created (1959) of priority policy ‹80s: coordination legislative „US: provided free grant for academic and national defense objectives agenda and public- system between intervention private coordination public and private marginalizing such * NEDB: National Economic Development Board, the predecessor institution of the NESDB (National Economic and Social Development Board) strengthened sector strengthened executive efforts

2 Formulation and enhancement of development Formulation and enhancement of development administration in three East Asian countries administration in three East Asian countries Formulation of development administration Enhancement of development administration ‹Late 50s-early 60s: basic foundation for planning and ‹80s:national level committees and sub-committees coordination system formulated and the Prime Minister’s established to facilitate coordination for priority policy Department strengthened (British system adopted) agenda (e.g. rural development, regional development, private sector participation) „First Prime Minister Rahman’s vision (1957-70) Emphasized socioeconomic development, especially rural development „Deputy Prime Minister (and Second PM) Razak’sinitiatives „Prime Minister Prem’s leadership (1980-88) Introduced “the Red Book” and the “the Operations Rooms” to administer Created PM-led national committees for priority policy agenda and development plans and to facilitate coordination delegated authority to competent technocrats for policy administration „Role of foreign assistance „Technocrats’ initiatives (especially NESDB* technocrats) „ WB: assisted to establish and strengthen the govt’s planning capacity Played a significant role as a coordination center for PM-led national -- EPU* created in PM’s Department (1961) committees (NESDB acted as Secretariat for major national committees) „ UK: assisted drafting the First (1957-1960) and the Second (1961-65) Malaya Plans * NESDB: National Economic and Social Development Board

* EPU: Economic Planning Unit

Formulation and enhancement of development Formulation and enhancement of development administration in three East Asian countries administration in three East Asian countries

Enhancement of development administration Formulation of development administration

‹70s: new administrative machinery added to secure ‹70s: centralized development administrative body (NEDA*) enforcement of the New Economic Policy (1971-) created in support of President Marcos’s dictatorship ‹80s: coordination system between public and private ‹After 86: NEDA reorganized and interagency coordination sector strengthened began through NEDA interagency committees

„Prime Minister Razak’s leadership (1970-76) „President Marcos’s dictatorship (1965-86) Originating from “the Operations Rooms”, new administrative machinery Created centralized planning body (NEDA) aiming to support Marcos’s (ICU*) added in 1971 to monitor implementation of programs and projects centralized authoritarian policy administration „Prime Minister Mahathir’s leadership (1981-2003) „President Aquino’s initiatives (1986-92) Formal and informal coordination mechanisms between public and private Along with democracy restoration initiatives, reorganized NEDA as an sector created independent planning agency, and promoted interagency coordination through NEDA committees * ICU: Implementation Coordination Unit *NEDA: National Economic and Development Authority

Formulation and enhancement of development 3. Key factors affecting the development administration in three East Asian countries administration

Enhancement of development administration ‹ Quality of leadership -- long-term development visions and political will ‹90s: NEDA Board interagency committee functions institutionalized and ODA management strengthened -- but such ‹ Alliance between leadership and technocrats executive efforts undermined by “legislative intervention” -- role of technocrats to realize leaders’ visions ‹ Degree of political intervention to the “executive „President Ramos’s leadership (1992-1998) branch” Strengthened NEDA functions including ODA management -- existence of a broad political coalition focused on realizing „Technocrats’ efforts and role of foreign assistance development for the benefit of the whole country „Made efforts to secure policy coherence and to facilitate coordination

„The WB, ADB, GTZ, AusAID etc.: provided TA to strengthen capacity for ‹ Fear of external and domestic crises planning and public expenditure management -- a sense of political, social and economic urgency „“Dual track” development administration -- “legislative ‹ Utilization of aid as integral part of development intervention” challenging the executive efforts “Legislative intervention” bypassing the executive scrutiny especially for management budgeting

3 Key factors affecting the development Thailand: Key factors affecting the development administration administration

Quality of leadership ‹PM Sarit (Late 50s-early 60s) -- showed development vision and exercised strong ‹ Synergetic effects of each “factor” affected leadership the countries’ overall development ‹PM Prem (80s) -- played a leading role especially in priority policy agenda, and administration delegated authority to technocrats ‹ (Uncontrollable) external factors (both Alliance between ‹Competent technocrats functioned as positive and negative) gave major impacts on leadership and strong support arms to administer policy the development administration technocrats Degree of political ‹Technocrats were effectively insulated ‹ Effect of the 1985 Plaza Accord in Thailand intervention to the from political pressures ‹ Aftermath of the 1969 ethnic riot in Malaysia “executive branch” ‹ Leadership mattered especially at the critical Fear of external and ‹Thai gov’t strived for structural stages of development domestic crises transformation (late 70s-80s) Î Thailand and Malaysia were blessed with well balanced, Utilization of aid as ‹Thai gov’t strategically and selectively visionary and dedicated leaders at times of turning points integral part of utilized donor assistance for “graduation” development management Î See next slide for details

Thailand: Key factors affecting the development Malaysia: Key factors affecting the development administration administration

Quality of ‹PM Rahman (Late 50s-70s) -- exercised strong leadership leadership to carry out effective rural development ‹PM Razak (70s) -- played a leading role in ‹ Thai gov’t requested the WB assistance in formulating the development administration (late 50s) -- anticipating the enhancing administrative machinery to implement WB’s successive assistance for infrastructure development New Economic Policy ‹PM Mahathir (80s-) -- exercised strong leadership ‹ Thai gov’t aggressively utilized foreign assistance to send promising technocrats abroad to study and bring in strengthening public private partnership knowledge/technology back home to incorporate it into the Alliance between ‹Technocrats made efforts to enhance Thai system. leadership and administrative capacity and human resource „ e.g., introduction of budget management system in the 1950s technocrats development to realize PM’s vision and policy ‹ Thai gov’t tried to secure bargaining power against donors objectives by: Fear of domestic ‹Malaysia gov’t utilized development machinery as „ scrutinizing the technical assistance (TA) needs from objective crises a tool to realize the country’s overriding objective: perspectives, making independent judgment for most suitable TA promoting national unity through “poverty requirements (crucial role of the DTEC*) eradication” and “restructuring of society” „ bearing the cost of counterpart funds for grant and TA „ gathering different perspectives as much as possible by deliberately Utilization of aid as ‹Malaysia gov’t strategically and selectively utilized listening to various donors’ opinion integral part of donor assistance for “graduation”

* DTEC: Department of Technical and Economic Cooperation development management Î See next slide for details

Malaysia: Key factors affecting the development The Philippines: Key factors affecting the administration development administration

Quality of ‹President Marcos (prior to 86) -- created central leadership development administration system to maintain his dictatorship ‹ Malaysia gov’t utilized the WB and the UK assistance in ‹President Aquino (after 86) -- reorganized formulating the development administration (50s-60s) -- development administration system with the institutionalized foreign knowledge tailored to local context resumption of democracy ‹ Malaysia gov’t utilized the assistance from the US, the UK ‹President Ramos (90s) -- strengthened and and the WB to send competent young technocrats abroad institutionalized development administration system to study as a part of the long-term human resource Alliance between ‹Technocrats streamlined administrative structures development plan leadership and and functions to efficiently carry out development technocrats policy ‹ Malaysia gov’t created INTAN in 1972 to train gov’t officers for human resource development Î Degree of political ‹“Legislative intervention” over the “executive envisaging ”graduation” strategy intervention to branch”, especially during the budget process, the “executive undermining the role and efforts by the technocrats „ 70s: utilized aid and procured foreign experts as instructors branch” „ 80s: utilized domestic experts as instructors (cf. from 1981, INTAN is providing technical assistance to other Utilization of aid ‹The Philippine gov’t has been utilizing foreign development countries for human resource development: Malaysian as integral part of assistance actively -- strategic and selective use of Technical Cooperation Program) development aid??? management

4 4. Final Remarks

‹ Key actors have various quality and competency Thank you very much! in administering development policy, and their relationships show diverse configuration ‹ Donors need to understand the local context carefully when aiming to enhance recipients’ development administrations Please visit our website for this study: „ Quality of leadership "Managing the Development Process and Aid" „ Alliance between leadership and technocrats —East Asian experiences in building central economic „ Degree of political intervention to the “executive branch” agencies— „ Fear of external and domestic crises „ Utilization of aid as integral part of development http://www.grips.ac.jp/forum-e/research2006/aidmgt.htm management THE END

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