Don’t waste money hiring global consultants to draft developmental strategies

Don’t waste money hiring global consultants to draft developmental strategies – former IMF Chief

Nov 10, 2019 News

… says private sector has a bigger role to play

The former Managing Director of the International Monetary fund (IMF), Christine Lagarde, has advised low-income and emerging-market economies not to waste money commissioning consultants to build their national development strategies.

Former IMF Chief, Christine Lagarde (Fabrice Coffrini/AFP)

Lagarde, who now serves as President of the European Central Bank, made this statement at an event about funding the sustainable development goals at the World Economic Forum (WEF) earlier this year in Davos, Switzerland.
“I see many, many low-income countries and emerging-market economies spend millions of dollars commissioning consultants to build their strategy plan,” the economist said at the forum.
“I would recommend some saving be made by taking the 17 principles, the actionable items, and start with that.”
She waxed that those low-income and emerging-market economies should do more work to raise revenue themselves domestically, with more involvement of the private sector.
Their involvement is important, she said, as countries work on achieving first the 17 United Nations Sustainable Development Goals (SDGs).
“From there, the consultants can actually do their job of putting it into reality. But don’t reinvent it — It’s right there. So much is wasted. That’s part of the inefficient spending that can actually be saved.”
She implored these countries to cut white elephant projects and corruption.
Lagarde is said to have singled out “the McKinseys and Boston Consulting Groups” – two US-based consultants – and others like them, urging them to take heed of her message.
In Guyana’s case, the most recent national development strategy drafted by a foreign consultancy is the Green State Development Strategy Vision 2040.
In May, President David Granger received that plan from UN Environment Programmes Director for Latin America and the Caribbean, Leo Heileman.
That strategy, an economic plan to drive Guyana’s development for the next 20 years, assumes a cost of $1.05 trillion over its lifetime.
It has been criticised by the Opposition People’s Progressive Party (PPP) General Secretary, Bharrat Jagdeo, who on top of saying it is not comprehensive enough, chastised Government for exporting its drafting to a foreign consultant.

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