Development issues comprise a wide range of topics and approaches.
For instance, ongoing development projects include resource mobilization for public goods, improvement of aid effectiveness, achievement and work on the social dimensions of development.
Given the diverse development landscape, it is especially important for the government development work to focus on its unique economic perspective and to support existing initiatives while avoiding unnecessary overlap.
For years our focus on the economic growth aspects of development fits well with the framework.
The critical challenge that we face in seeking to achieve such strong, sustainable and balanced economic growth is how to generate new sources of aggregate demand.
Therefore focus must be given on the following key pillars of economic growth:
It is broadly acknowledged that availability of infrastructure is one of the most critical factors necessary for economic growth.
Indeed, no state has achieved sustained economic growth without maintaining significant rates of infrastructure investment.
Over the last several decades, however, the level of infrastructure investment has been insufficient to support strong and durable growth.
Many states currently face severe infrastructure bottlenecks, especially with respect to power, transport, communications and digital connectedness.
In addition, private funding of public infrastructure projects over the last two decades has failed to reach any significant scale.
To promote greater provision of public long-term capital toward developing state infrastructure, we need to re-examine the infrastructure investment where appropriate.
In particular, Government could:
• Discuss how to most effectively utilize private capital, including by better leveraging public finance and official development assistance and improving the cost-effectiveness of public-private partnerships (PPPs);
• Promote infrastructure investment;
• Discuss how to address specific infrastructure needs in landlocked countries and isolated and rural areas; and
• Improve infrastructure-related governance issues, including tax reforms to better mobilize domestic finance resources, implement regulatory and property rights reforms and address regionally integrated infrastructure needs.
Private Investment and Job Creation
Private investment, mainly from domestic sources, but also from foreign direct investment (FDI), is the main source of employment and therefore of poverty reduction.
FDI, in particular, offers valuable contributions for the long-term growth of state.
Human Resources Development
The build-up of human capital is a critical component of any state’s growth and development strategy.
In this connection, a continued need to improve the quality of education including through a sharpened focus on employment-related skills gained through enhanced vocational education and job training, as well as a renewed emphasis on higher/university-level education.
It may be particularly useful to develop employment-related skills that are better matched to employer and/or market needs.
Specific initiatives may include fostering ties between institutions of higher education/universities and the business sector and sharing best practices regarding vocational education and specialized job-skills training.
Trade is a critically important factor in economic growth.
No state has managed to grow and reduce poverty without access to and the ability to trade.
Recognizing both the capacity to trade and access to trade as key elements in economic growth, government should take into consideration to focus on “aid for trade” and “duty free quota free (DFQF) market access for least SME products.”
The importance of improving long-term food security must be recognised.
Initiatives such as efforts to close agricultural productivity gaps and mitigate the deleterious effects of food price volatility will help strengthen the resilience of food security of the state.
In addition, the government may seek ways to support the development of more innovative solutions to food security challenges, such as through promotion of technological advances that boost agricultural productivity and more effective mobilization of private sector resources.
The most important determinant of successful development is a state’s own development policy.
Good governance, transparency, accountability and capacity for effective development policy are therefore central to growth and poverty reduction.
All the pillars of development discussed above require capacity in areas such as regulatory reform, enhanced protection of intellectual property rights and tax.
In order to effectively address development challenges, the input of and close partnership between state government with federal government and private sector are significantly needed.
Forming a consultative body comprised the stakeholder involved will enhance the legitimacy and effectiveness of the state development agenda, including by incorporating the resources and considerable development expertise of the stakeholders.