Impressions 2019
DEVELOPMENT AID: „THERE HAS TO BE A FORCEFUL RETHINKING“
2nd Liechtenstein Dialogue For Development reveals new ways
The 2nd Liechtenstein Dialogue For Development (LDD) at the headquarters of the Hilti Group in Schaan on January 17, 2019, mustered high-ranking representatives from governments, foundations, companies and NGOs to discuss new approaches to development aid. Hannes Schmid, initiator of the LDD, perceives this to be indispensable: „Unfortunately, governments and NGOs still mind their own business. This has to change dramatically in the ever faster global development of the world. New ways have to be found, outdated processes need to be fixed. Digitization may help us to understand what works and what does not. The two worlds of the conservative caretaker – governments and classic NGOs – and the modern, entrepreneurial-thinking NGOs need to be brought together, and urgently!“
„Such an event is of utter importance, because everybody is aware of the topic, but the achievements are not nearly good enough,“ says Markus R. Neuhaus, Chairman of PwC Switzerland. „There needs to be a better understanding of the real challenges and the impact of the activities. Awareness enhancement, understanding, rethinking, influencing others, that must be our goal.“
Michael Hilti, honorary president of the Hilti Board of Directors, advocated a clearer definition of responsibilities: „Development aid should always be tied to concrete objectives, combined with success control not only of the recipient, but also and in particular of the donor. If unsatisfactory targets are set, funds are not used appropriately, if transparency is not granted, and donors are not able to effectively monitor their success, they should refrain from awarding or cancel a project.“
H.E. Dr. Aurelia Frick, Foreign Minister of the Principality of Liechtenstein, also pointed to the increasingly difficult political conditions:
„A major problem is the ascending number of conflicts in the world. In many places we are confronted with destabilization and humanitarian crises and there is a lack of constitutional legality. In such an environment, it is difficult to do any development work at all and to place meaningful investments. Solving these crises is a prerequisite for long-term development.“
Another fundamental problem was highlighted by Alvin Li, philanthropist and CEO of The Kommon Goods: „There are a lot of organisations that are all fighting the same social problems. But there is no common strategy, instead it is more likely to work against each other because the respective donors demand quick results. That’s why I deem events like the LDD so important. Politicians, job creators, business people and NGOs have to work together on solutions.“
And how could these solutions look like? „More entrepreneurial approaches to development aid should be fostered, including more partnerships with business“, Schmid demanded. „What does social impact investment actually mean? High interest rates? No interest? Fast repayment of investments? Do the poor people really profit from this, or is it simply just good marketing for the banks? Corporate Social Responsibility: How can or should this be filled with life? What does that mean for a company? If there is no forceful rethinking of development aid, even increasing budgets wouldn’t translate to better results.“
Such an increase in the development aid budget is being discussed in many donor countries and met with a positive response from the LDD. „There should not only be debates about increasing budgets,“ says Michael Hilti, „but, even more importantly, about the impact of existing programs. Because there is a lot of sugarcoating going on. Sometimes the high road is taken by kicking off new projects, instead of critically dealing with existing ones and trying to exploit synergies.“
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