Introduction Economic Development Report The Economic Paradigms About DIO Leading Issues
The perennial challenge to economic development policy makers is how to manage economies whose basic characteristics are the diversity and complexity of the social and economic constituencies.
The rising levels of financialization, initiated in the 1970s, progressed to generate the inevitable 2007-2008 financial crisis. A significant distortion of the representation in the decisions making on policy led to bail outs paid out of government funds or debt creating a subsequent tightening on other government provisions associated with slow or no economic growth. What was considered to be a "solution" through the low interest rate policy of quantitative easing was supposed to help "re capitalize bank balance sheets". However the "cheap money" appears to have been used increasingly, not to pass on the interest benefits in the form of loans for investment in higher productivity activities. A considerable amount of funding has been used by banks to take up asset positions or to trade in assets and commodities to benefit their own shareholders. There has been a considerable amount of lower interest finance services provided for corporations to by back share to drive up the stock markets. In the meantime, the needs of the real economy in the form of services, manufacturing and agriculture being starved of finance. This has exacerbated the state of affairs as reflected in :
A leading issue has become the reduced funding available for international development for developing countries and a disappointing levels of achievement of agricultural and rural development projects. There is therefore a need for action to raise the quality of projects to achieve higher rates of success (see Leading Issues).
The Development Intelligence Organization (DIO) has the role identifying the most promising advances in economic theory and practice including business and project cycle management levels that can help address and rectify these types of challenge. The rate of advance of economic theory is extremely slow because of the inertia created by vested interests in the current state of affairs. As a result, as the economic circumstances worsen, under so-called austerity measures, the social and political domains have become increasingly contentious and more difficult to manage because of the increasing frustration on the part of segments of electorates.
Our objective is to identify those specific advances in economic analysis and propositions that have the most likely a practical potential to address these common challenges in developed, transition and developing economies.
Reference: Open Quality Standards Initiative, Project failure stats, 2017, OQSI