Managing the Development
Process and Aid– Key Factors Affecting the Formulation andEnhancement of Development Administrationin East Asia –Feb. 2007 (UK mission)
Masumi Shimamura
GRIPS Development Forum
National Graduate Institute for Policy Studies (GRIPS)

2.
3.
4.

Major characteristics of development
administration in Thailand, Malaysia and thePhilippines
Formulation and enhancement of development
administration in three East Asian countries
Key factors affecting the development
administration
Final remarks<Periods of focus>
 Thailand and Malaysia: from the late 50s to the 80s(now emerging donors)
 The Philippines: before and after the 1986 “turning point”(enhancement of development administration still on-going)

Major characteristics of development
administration in three East Asian countries<Malaysia>

Support to realize
leader’s vision

“Top-down” development
Centralizedadministration
systemCentralized system led bypolitical leaders andsupported by elitetechnocrats to realize
leaders’ vision

Ch.1: Introduction and Overview
Ch.2: Institutional Framework for Development
Administration and the Role of Central
Economic Agencies
Ch.3: The Role, Characteristics and Evolution of
Development Planning
Ch.4: Mechanisms for Macroeconomic Coordination
Ch.5: Public Investment Programming and Project
Approval
Ch.6: Case Study: Eastern Seaboard Development
Plan in Thailand
Ch.7: Key Factors Affecting the Formulation andEnhancement of Development Administration

1. Major characteristics of development
administration in three East Asian countries

Highlights of the slides
1.

Table of Contents of the study

LeaderTechnocrats(Central Economic
Agencies)

Ministries, departments,
other state organs andlocal governments<Thailand>
esp. in 1980s
“Bureaucratic polity”

Delegate authority
LeaderCentralized
systemCentralized systemmanaged by elitetechnocrats who weredelegated authority
from political leadersTechnocrats(Central Economic
Agencies)

Ministries, departments,
other state organs andlocal governments

Major characteristics of development
administration in three East Asian countries<The Philippines>
esp. after 1986

Legislature

“Dual track” development

administration

Dual system administeredby executive branch but
challenged by legislativeintervention

LeaderIntervention

Technocrats(Central Economic
Agencies)

Executive
branchMinistries, departments,
other state organs andlocal governments

1

Chronological Outline of the Development Plans and Political Leaders of Thailand, Malaysia, and the Philippines

ThailandThailand
Prime Ministers

Kukrit

Plaek

PoteThanom Sarit

NEB

NEDB

↓

↓

ThanomSuchinda

San Sen Sen Tan Kriangsak

Prem

Chatcha Ana Ana ChuanBan Chavalit Chuan

Thaksin

NESDB↓

50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

National Economic Development P NEDP 1
National Economic and Social Development Plans

NEDP 2NESDP 3

NESDP 4

NESDP 5NESDP 6

NESDP 7NESDP 8NESDP 9

Malaysia
Prime Ministers

Tunku Abdul Rahman
EPU
Independence(Malaya) Malaysia↓↓

Tun Abdul Razak Hussein Onn

Dato' Seri Dr. Mahathir Mohamad

Dato' Seri Abdullah Ahmad Badawi

ICU
riot

↓

↓

↓

57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

1
2
Malaya Plans
Malaysia Plans
Outline Perspective Plans
National Policies
Other National Development Policues

MP 1

MP 2

MP 3
MP 4
MP 5
MP 6
MP 7
MP 8
MP 9
OPP 1
OPP 2
OPP 3
National Development Polic National Vision Policy
New Economic Policy↑
Look East Policy↑
Malaysia Incorporated↑
Industrial Master Plan↑
Vision 2020

Prime Minister Sarit
30th Government
9 February 1959 - 8 December 1963

Prime Minister Prem
43rd – 45th Government
12 March 1980 - 19 March 1983
30 April 1983 - 5 August 1986
5 August 1986 - 29 April 1988

Philippines
Presidents
Carlos GarcDiosdado Macapagal
NEC

PIA

PES

↓

↓

↓

Ferdinand Marcos

Corazon AquinoFidel Ramos J. Estrada Gloria Macapagal Arroyo

NEDA
Marshall Law↓

35 …… 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 01 02 03 04 05 06 07 08 09 10
Medium-Term Philippine Development Plans

Dr. Puey Ungphakorn
Former Governor of (Central)
Bankf of Thailand (1959-1972)
http://www.thaiembdc.org/bio/pms/pmlist.htm
http://en.wikipedia.org/wiki/Image:Puey.gif

Malaysia

Prime Minister Rahman
1st Prime Minister
31 August 1957 – 22 September

The Philippines

Prime Minister Razak
2nd Prime Minister
22 September 1970 – 14 January 1976

President Marcos
10th President
30 December 1965 – 25 February 1986

President Ramos
12th President
30 June 1992 – 30 June 1998

Prime Minister Mahathir
4th Prime Minister
16 July 1981 – 31 October 2003
http://ms.wikipedia.org/wiki/Tunku_Abdul_Rahman
http://en.wikipedia.org/wiki/Abdul_Razak
http://ms.wikipedia.org/wiki/Mahathir_bin_Mohamad

2. Formulation and enhancement of development
administration in three East Asian countries
Formulationof development
administration

Enhancementof development
administration

President Aquino
11th President
25 February 1986 – 30 June 1992

Thailand

Malaysia

Late 50s-early 60s:

Late 50s-early 60s:

The Philippines

http://en.wikipedia.org/wiki/Ferdinand_Marcos
http://en.wikipedia.org/wiki/Corazon_Aquino
http://en.wikipedia.org/wiki/Fidel_V._Ramos

Formulation and enhancement of development
administration in three East Asian countries<Thailand> Formulation of development administration

70s: centralizedwith donor advice(WB, US etc), basic
foundations for
coordination
mechanisms
established among
central economic
agencies, withdisciplinary functions

with donor advice(WB, US, UK etc),
basic foundations forplanning andcoordination
mechanisms
established and thePM’s Department
strengthened (British
system adopted)

development
administrative body
(NEDA) createdAfter 86: NEDA
reorganized, andinter-agency
committees began tofacilitate
coordination

80s: national-levelcommittees and subcommittees
established tofacilitate coordinationof priority policy
agenda and publicprivate coordination
strengthened

70s: newadministrative
machinery (esp.ICU)
added to implement
New Economic Policy
80s: coordination
system between
public and private
sector strengthened90s: inter-agency
committee functions
institutionalized, andODA management
strengthened, butlegislativeintervention
marginalizing suchexecutive efforts

Late 50s-early 60s: basic framework for coordination
mechanism institutionalized among central economic
agencies Prime Minister Sarit’s vision (1959-63)

Adopted “development through growth” concept and introduced “top-down”
planning approach Technocrats’ initiatives -- led by Dr. Puey Ungphakorn:

the longest serving Governor of the Central Bank (1959-72)

Created the basis for coordination among central economic agencies

 Role of foreign assistanceWB: assisted to establish and strengthen the govt’s planning capacity-- NEDB* created (1959)
provided free grant for academic and national defense objectives

US:* NEDB: National Economic Development Board, the predecessor institution of theNESDB (National Economic and Social Development Board)2Formulation and enhancement of development
administration in three East Asian countries<Thailand> Enhancement of development administration
80s:national level committees and sub-committees

established to facilitate coordination for priority policy
agenda (e.g. rural development, regional development,
private sector participation)
Prime Minister Prem’s leadership (1980-88)

Created PM-led national committees for priority policy agenda anddelegated authority to competent technocrats for policy administration
Technocrats’ initiatives (especially NESDB* technocrats)

Played a significant role as a coordination center for PM-led national
committees (NESDB acted as Secretariat for major national committees)* NESDB: National Economic and Social Development Board

Formulation and enhancement of development
administration in three East Asian countries<Malaysia> Formulation of development administration
Late 50s-early 60s: basic foundation for planning andcoordination system formulated and the Prime Minister’s
Department strengthened (British system adopted)
First Prime Minister Rahman’s vision (1957-70)

Emphasized socioeconomic development, especially rural developmentDeputy Prime Minister (and Second PM) Razak’s initiatives

Introduced “the Red Book” and the “the Operations Rooms” to administerdevelopment plans and to facilitate coordination
Role of foreign assistance WB: assisted to establish and strengthen the govt’s planning capacity-- EPU* created in PM’s Department (1961)

 UK: assisted drafting the First (1957-1960) and the Second (1961-65)

Malaya Plans* EPU: Economic Planning Unit

Formulation and enhancement of development
administration in three East Asian countries

Formulation and enhancement of development
administration in three East Asian countries<Malaysia> Enhancement of development administration<The Philippines> Formulation of development administration

70s: new administrative machinery added to secure
enforcement of the New Economic Policy (1971-)
80s: coordination system between public and private
sector strengthened

70s: centralized development administrative body (NEDA*)
created in support of President Marcos’s dictatorship
After 86: NEDA reorganized and interagency coordination
began through NEDA interagency committees

Prime Minister Razak’s leadership (1970-76)

Originating from “the Operations Rooms”, new administrative machinery(ICU*) added in 1971 to monitor implementation of programs and projects
Prime Minister Mahathir’s leadership (1981-2003)

Formal and informal coordination mechanisms between public and private
sector created* ICU: Implementation Coordination Unit

 President Marcos’s dictatorship (1965-86)

Created centralized planning body (NEDA) aiming to support Marcos’s
centralized authoritarian policy administration
 President Aquino’s initiatives (1986-92)

Along with democracy restoration initiatives, reorganized NEDA as anindependent planning agency, and promoted interagency coordination
through NEDA committees*NEDA: National Economic and Development Authority

Formulation and enhancement of development
administration in three East Asian countries<The Philippines> Enhancement of development administration
90s: NEDA Board interagency committee functions

institutionalized and ODA management strengthened -- but suchexecutive efforts undermined by “legislative intervention”
 President Ramos’s leadership (1992-1998)

Strengthened NEDA functions including ODA management
 Technocrats’ efforts and role of foreign assistanceMade efforts to secure policy coherence and to facilitate coordination
The WB, ADB, GTZ, AusAID etc.: provided TA to strengthen capacity forplanning and public expenditure management
 “Dual track” development administration -- “legislativeintervention” challenging the executive efforts“Legislative intervention” bypassing the executive scrutiny especially forbudgeting

3. Key factors affecting the development
administration
 Quality of leadership-- long-term development visions and political will
 Alliance between leadership and technocrats-- role of technocrats to realize leaders’ visions
 Degree of political intervention to the “executive

branch”-- existence of a broad political coalition focused on realizing
development for the benefit of the whole country
 Fear of external and domestic crises-- a sense of political, social and economic urgency
 Utilization of aid as integral part of development

management

3Key factors affecting the development
administration

Thailand: Key factors affecting the development<Basic assumption>

Quality of leadershipadministration

 Synergetic effects of each “factor” affected

the countries’ overall development
administration
 (Uncontrollable) external factors (bothpositive and negative) gave major impacts on
the development administration
 Effect of the 1985 Plaza Accord in Thailand Aftermath of the 1969 ethnic riot in Malaysia

 Leadership mattered especially at the criticalstages of developmentÎ Thailand and Malaysia were blessed with well balanced,
visionary and dedicated leaders at times of turning points

PM Sarit (Late 50s-early 60s) -- showeddevelopment vision and exercised strong
leadership

PM Prem (80s) -- played a leading role

Alliance between
leadership andtechnocrats
Degree of politicalintervention to the“executive branch”
Fear of external anddomestic crises
Utilization of aid as
integral part ofdevelopment
management

especially in priority policy agenda, anddelegated authority to technocratsCompetent technocrats functioned asstrong support arms to administer policy
Technocrats were effectively insulated

from political pressuresThai gov’t

strived for structuraltransformation (late 70s-80s)

Thai gov’t strategically and selectively

utilized donor assistance for “graduation”

Î See next slide for details

Thailand: Key factors affecting the development

Malaysia: Key factors affecting the development

administration

administration<Strategic and selective utilization of aid>

Quality ofleadership Thai gov’t requested the WB assistance in formulating thedevelopment administration (late 50s) -- anticipating the
WB’s successive assistance for infrastructure development Thai gov’t aggressively utilized foreign assistance to sendpromising technocrats abroad to study and bringknowledge/technology back home to incorporate it into theThai system.


e.g., introduction of budget management system in the 1950s

 Thai gov’t tried to secure bargaining power against donors

by:scrutinizing the technical assistance (TA) needs from objective
perspectives, making independent judgment for most suitable TA
requirements (crucial role of the DTEC*)
 bearing the cost of counterpart funds for grant and TA
 gathering different perspectives as much as possible by deliberately
listening to various donors’ opinion* DTEC: Department of Technical and Economic Cooperation

PM Rahman (Late 50s-70s) -- exercised strong

leadership to carry out effective rural development

PM Razak (70s) -- played a leading role inenhancing administrative machinery to implement
New Economic Policy
PM Mahathir (80s-) -- exercised strong leadershipin strengthening public private partnership
Alliance between
Technocrats made efforts to enhanceleadership andadministrative capacity and human resource
technocrats
development to realize PM’s vision and policy
objectives
Fear of domestic
Malaysia gov’t utilized development machinery ascrisesa tool to realize the country’s overriding objective:
promoting national unity through “poverty
eradication” and “restructuring of society”
Utilization of aid as Malaysia gov’t strategically and selectively utilized
integral part ofdonor assistance for “graduation”
development
management
Î See next slide for details

Malaysia: Key factors affecting the development

The Philippines: Key factors affecting theadministration

development administration<Strategic and selective utilization of aid>

Quality ofleadership Malaysia gov’t utilized the WB and the UK assistance informulating the development administration (50s-60s) -institutionalized foreign knowledge tailored to local context
 Malaysia gov’t utilized the assistance from the US, the UK
and the WB to send competent young technocrats abroad
to study as a part of the long-term human resource
development plan Malaysia gov’t created INTAN in 1972 to train gov’t officers
for human resource development Î
envisaging ”graduation” strategy

70s: utilized aid and procured foreign experts as instructors
80s: utilized domestic experts as instructors(cf. from 1981, INTAN is providing technical assistance to otherdevelopment countries for human resource development: MalaysianTechnical Cooperation Program)

President Marcos (prior to 86) -- created central

development administration system to maintain his
dictatorship
President Aquino (after 86) -- reorganizeddevelopment administration system with theresumption of democracy
President Ramos (90s) -- strengthened andinstitutionalized development administration system
Alliance between
Technocrats streamlined administrative structures
leadership andand functions to efficiently carry out development
technocrats
policyDegree of political “Legislative intervention” over the “executive
intervention tobranch”, especially during the budget process,the “executive
undermining the role and efforts by the technocrats
branch”
Utilization of aid
The Philippine gov’t has been utilizing foreign
as integral part of assistance actively -- strategic and selective use ofdevelopment
aid???
management

44. Final Remarks
 Key actors have various quality and competency

in administering development policy, and theirrelationships show diverse configuration
 Donors need to understand the local context
carefully when aiming to enhance recipients’development administrations
 Quality of leadership Alliance between leadership and technocrats

 Degree of political intervention to the “executive branch”
 Fear of external and domestic crises
 Utilization of aid as integral part of development

Thank you very much!
Please visit our website for this study:"Managing the Development Process and Aid"
—East Asian experiences in building central economic
agencies—

http://www.grips.ac.jp/forum-e/research2006/aidmgt.htm

management

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