Chapter 3

Needs of the Developed and Developing Countries

(2 hours)

Human Resources (at low wage) Knowledge worker (Highly skilled …) Trained/untrained labor at low wage DDD works (Dangerous, Dirty, Demeaning works)

Natural Resources (minerals and raw materials for industrial processing and value addition)

Market for products (sell products to create and maintain job for citizens) Investment opportunities (virgin market with high profit margin, low

regulation) Cooperation to limit GHG emission (to prevent big cities from sea

water intrusion) Self respect of citizens (Demonstration of aid to developing

countries), fulfilling commitment of ODA Favorable bilateral negotiations/treaties Support in contentious international disputes: Support in UN General Assembly:

Needs of Developed Countries(from developing countries)

Destination for obsolete technology (national pride, international obligation, space for new technology)

Dump site for waste (nuclear, chemical, biological, NIMBY syndrome)

Test of new medicine and risky technology (low tort liability) Maintain global biodiversity (effect of loss of species unknown) Medicinal plants for development of medicine (research

opportunities, unavailable in native countries) Population growth control in developing countries (prevent

global environmental degradation) Buffer against terrorist activities (limit terrorism in developed

countries) Less global conflict (threat from Developing Countries’ people)

“Development isn’t charity. It’s one of the smartest invest we can make in our shared future, our security, our prosperity”, President Obama, July 20, 2016, The White House Summit on Global Development

Needs of Developed Countries(from developing countries)

Ways of fulfilling the needs• Human Resources: Attractive salary and working conditions,, DV, PR, H1B,

residency and work permit, exchange visa (J1), student visa (F1), training visa, post completion training, refugee, exposure tour, cultural exchange programs, RA/TA

• Natural Resources: Lease, purchase, research, study, joint venture, bilateral agreement/ negotiation, WTO provisions, trade embargo, protectionism, bribe officials (cash, trip, donation, present, recognition…)

• Trade negotiations: direct/indirect barriers on import of processed (value added) goods and no barrier on unprocessed goods from developing countries, “Scholarship Diplomacy”

• Investment: EXIM Bank, World Bank, ADB, Multinational companies, FDI, Joint Venture

• ODA: JICA, DFID, USAID, AusAID, DFAT

For additional info on trade negotiation: http://www8.gsb.columbia.edu/faculty/jstiglitz/sites/jstiglitz/files/2004_Charlton_Stiglitz.pdf

Ways of fulfilling the needs• GHG limitation: Carbon trade, carbon sequestration, technology

improvements, technology exchange• Testing of medicine: free medical camps, free medicine/vaccination/

camps/vitamins/operation/surgery/polio drops/family planning• Military training/Defense Aid: To engage terrorists in developing countries• Overseas Development Assistance: with maximum publicity

For additional info on trade negotiation: http://www8.gsb.columbia.edu/faculty/jstiglitz/sites/jstiglitz/files/2004_Charlton_Stiglitz.pdf

• "We urge the developed countries to fulfill their commitments of providing 0.7 percent of the GNP to the developing countries and 0.15 to 0.2 percent of GNP to the LDCs as Official Development Assistance without further delay."-- PM Baburam Bhattarai, addressing NAM in Tehran, Iran, August 31, 2012

• The average cost of college tuition is projected to be more than $46000 a year at in-state public universities, more than $ 80000 a year at out-of-state public universities and over $103000 at a private college by 2030. (American Funds, Investor News, page 3, Dec. 31, 2014)

• From 2062 to 2071, more than 3.5 million Nepalese youth (30% of youth population of Nepal) has gone abroad for job.

• CSIRO/Australia, UK and US to test malaria breathalyzers in Bangladesh, Malawi, Sudan. http://www.scidev.net/global/malaria/news/malaria-breath-test-CSIRO.html?utm_medium=email&utm_source=SciDevNewsletter&utm_campaign=international%20SciDev.Net%20update%3A%2031%20May%202016

Nepali Times, June 15, 2016, Blame game in forestry, termination of 10 year Multi Stakeholder Forest Program in 5 year.

July 1, 2016: Japan and Nepal agreed on 30 carod 60 lakh scholarship fund for 100 government officials to study in Japan, this amount to be considered as part of ODA. Major part of this “assistance” will be spent in Japan, as tuition fee, international travel, educational materials, … Such agreements help them fulfill ODA commitments, raise self respect of its citizens, win hearts of trainees, spread their culture, and keep the financial resources to themselves.

Education and Training of its human resources (close knowledge/skill gap)

Investment in Infrastructure projects (lack of large fund) R&D in “Appropriate” Technology (site specific research) Humanitarian assistance during disasters (unprepared for

major disasters) Loan for regular development activities (donor dependency) Increased in management system efficiency (low

management skill) Health needs (low access to medical facilities even for regular

illnesses) Water/sanitation/hygiene needs (access to potable water,

proper sanitation practices and hygiene facilities still low) Information/data needs (better access to data, information,

internet, close digital divide)

Needs of Developing Countries

Additional info on needs of developing countries: http://unfccc.int/ttclear/misc_/StaticFiles/gnwoerk_static/events_SE-TEC-CTCN-SB40/9af74e35f1804c85b9c1f757c312bcbb/5e18a86ef76a4f31aff21c3e6374bbbc.pdf

Hometown Student No.1 Seoul > 560002 Beijing > 500003 Shanghai > 300004 Hyderabad5 Riyadh6 Mumbai > 170007 Taipei > 160008 Hong Kong > 120009 Kathmandu > 1000010 Jeddah > 10000

Hometown of foreign students enrolled in US universities in 2008-2012Source: http://www.brookings.edu/blogs/the-avenue/posts/2014/09/18-global-hometowns-americas-foreign-students-ruiz#.VY2kStXqSBQ.facebookAccessed: June 27, 2015

US$ 2000000 x 2000 = US$ 4000000000 per year; US saves approximately US$ 4B!

“The Institute of International Education calculates that the nation of about 30 million people sent 8,920 students to U.S. colleges and universities in the 2012-2013 school year, the latest for which data was available. That makes Nepal the 14th-ranked supplier of international students to U.S. campuses, just behind the United Kingdom (9,467) and ahead of Iran (8,744).China is the top supplier (235,597), followed by India (96,754). But Nepal leads all four of those countries in the number of students per capita sent to the United States.The number of Nepalis studying in the United States rose from 2,411 in 1999-2000 to a peak of 11,581 in 2008-2009.”

Source: Howard U.’s Kathmandu connection: Nepal emerges as top source of foreign studentsBy Nick Anderson August 27, 2014http://www.washingtonpost.com/local/education/howard-us-kathmandu-connection-nepal-emerges-as-top-source-of-foreign-students/2014/08/27/4cd70376-2a20-11e4-958c-268a320a60ce_story.html

Closing the development gap will depend on closing the existing Science and Technology Innovation investment gaps

Industrialised countries have been able to digest rapid technological changes in past decades, but developing countries are lagging behind. The 3.5 per cent (of GDP on R&D) figure is an unrealistic target, not only because of financial constraints, but also because developing countries lack the long-term policies and institutions, both public and private, needed to produce and make use of knowledge.http://www.scidev.net/global/technology/news/developing-nations-urged-spend-on-science-UN.html?utm_medium=email&utm_source=SciDevNewsletter&utm_campaign=international%20SciDev.Net%20update%3A%2020%20July%202015#sthash.ZVTAm13x.dpuf

Ways to fulfill the needsProviding scholarship to deserving students to study (obtain training) abroad.Facilitating students to go abroad for education: In 2071 BS, 30400 Nepalese

students got “no objection” letter from Ministry of Education for higher study in foreign countries. This does not include those who go to India.

Sending government officials to be trained.Obtaining loans and grants from donor agencies and UN systems.Technology transfer Membership in disaster relief agencies, UN AidLoan from EXIM Banks, ADB, WB, IFC, IMF, AIIBBilateral agreementsMultilateral agreementsObtain grants from research agenciesJoint research, joint investmentForeign Direct Investment

Who benefits more in the process of need fulfillment?Approximate cost of providing a person Bachelor degree, counting from date of birth: US$ 2000000Persons going to US for higher degrees only from Kathmandu: 2000 per year (based on 2008-2012 data; in 2012-2013: 8920 Nepalese students enrolled in US universities)Persons going to US for higher degrees from Nepal (2500, assumed)Persons retained in US after completion of higher degree: 2000Annual Saving to US: US$ 4 Billion

“ … foreign students can provide important economic benefits to their U.S. metropolitan destinations… offering valuable skills to local employers. More metropolitan leaders should emulate leading practices that capitalize on the knowledge and relationships of foreign students to strengthen local economies …”.

Source: The Geography of Foreign Students in U.S. Higher Education: Origins and Destinations, by: Neil G. Ruiz

http://www.brookings.edu/research/interactives/2014/geography-of-foreign-students#/M10420

Donors spent major portion of quake aid on int’l staff: Govt

KATHMANDU, June 16: The Ministry of Home Affairs has drawn the conclusion that the major portion of the funds provided in the name of earthquake victims is spent by donor countries and international agencies on their own staff.Altogether 4,521 rescue personnel from 34 countries were mobilized after the 7.8 magnitude quake of April 25 -

See more at: http://myrepublica.com/politics/item/22836-donors-spent-major-portion-of-quake-aid-on-int-l-staff-govt.html#sthash.5uMBzkTN.dpuf

Test Yourself. Answer them using different resources. Suggest other questions to test yourself.

Chapter 3: Needs of Countries• The developing and developed countries need each other to

reduce the global problem of increasing greenhouse gas emission. Suggest practical and equitable ways to help each other in fulfilling this mutual need.

• The developed countries need natural resources from developing countries, and the developing countries need foreign currency to fund their infrastructure development projects. Which type of country (developing and developed) benefits more in fulfillment of this need of natural resources and foreign currency? Explain with examples related to construction management in developing countries.

Test Yourself. Answer them using different resources.

Chapter 3: Needs of Countries• Discuss the needs of the developing countries from the developed

countries. How are these needs fulfilled, and how are these needs related to construction project management of developing countries?

• The developing and the developed countries need each other for further development. The need of which type of country (developing or developed) is more than the other type of country?

• Discuss the needs of the developed countries from the developing countries. How are these needs fulfilled, and how are these needs related to construction project management of developing countries?

• WHAT CONSERVATION AID?• The forestry and conservation sector is flush with foreign aid and little result.

Donors have ploughed over 120 million dollars in community forestry alone since 1980. The new forest resource assessment in Nepal, supported by Finland has a budget of about 5.5 million euro but about 4.4 million euro will be spent directly or indirectly on consultants and logistic support. In this regard, INGOs are creating employment for the foreign consultant. In many cases, the highly skilled manpower of the nation is ruled by the low skilled international ‐manpower. Most of the conservation projects cater to the interests of aid handling groups and the intended recipients are either the workers getting low wages, unpaid facilitators and/or a good audience. The government officers who are paid by the government are rushing to the projects and ministry officials make a beeline for the departments that attract foreign aid. REF# 94

• http://www.resourceshimalaya.org/content_files/2010NepalHimalaya_sAnUmAn4dce1f5b53ac5.pdf