Actors in development or Agents of Development

Agents involved in the development process which generally entails the process of mobilization,
allocation and management of development resources. These include: The government, the private
sector civil society organization as well as international development actors. The government
dominated the development space which crowded out other agencies of development such as the
civil society and the private sector. It means that the development policy making in the early post
independent years was highly centralized.
However, since 1992, when major economic and political reforms started taking place, the
situation has greatly changed with more actors being involved in the development process. In other
words, the pattern of development has been more inclusive and participatory.
The Role of the Government in Development
It is now universally realized that in order to overcome the rigidity that exists in LDC, the state
must place a positive role. It cannot be a passive spectator. It means that the problems of
LDC are of such a magnitude that they cannot be left to the private sector to address them. In other
words, state action is indispensable for the economic development of many LDC.
The sphere of state action is therefore very broad. It includes:
a) In particular, the government formulates the policies which guide the participation of other
factors in development.
b) The government also provides a regulatory framework and enabling environment for
development activities to take place.
c) The government mobilizes resources (through taxation for its public functions such as
defense of the country against external aggression, provision of internal security,
maintenance of civil service and infrastructure). Infrastructure is particularly important
because it entails large investments which are beyond the capacity of the private sector in
most LDC.
d) Through central and local authorities, the government provides salaries such as education,
health care, water &sanitation, market etc. Health and education are important because they
tend to increase the efficiency and productivity of labour.
The Role of International Community
The International community continues to play an important role in the development in the
development of LDC. This role is played at three (3) levels
1. Foreign direct investment (FDI)
2. Foreign Assistance, also known as foreign aid.
3. Technical cooperation also known as technical assist.
Foreign Direct Investment (FDI)
Foreign investment refers to investment in another country carried out by private companies or
individual as opposed to government aim.
Most FDI in LDC is undertaken by large multi-national corporation (MNCs). An MNC is a large
enterprise having a home base in one country and operating wholly or partially (branches) owned
subsidiaries in other countries.
1) FDI plays an important role in filling the resources gap between desired investment and
locally mobilized savings. These enables LDC to more easily achieve then growth targets.
2) FDI is also important in generating employment in LDC because they account for a
substance proportion of the national output of most LDC.
3) Many private foreign firms may also bring with them technological knowledge about
production processes while at the same time transferring modern machinery and equipment
to capital poor LDC.
However, they may have certain difficulties among them:
a. MNC use capital intensive appropriate technology may worsen the unemployment
problem in many LDC.
b. Private foreign firms may damage the host countries economy in suppressing
domestic entrepreneurship i.e. many of them use exclusive production agreements
that undermine competition and inhabit the emergence of small scale enterprises.
Foreign Aid
Government to another (Bilateral Assistance) or through inter-governmental organization (multi-
lateral assistance). Traditionally foreign aid is assistance given by a District Commissioner to an
LDC. Aid can also be given by non-government organizations particularly humanitarian aid.
Forms of Foreign Aid
Aid may be either in the form grants or loans. A grant is a transfer payment either in terms of
money, technology or ideas which does not have to be repaid. Loans on the other hand refer to
funds transferred from one economic entity to another which will be repaid with interest prescribed
period of time.
Motives for giving Foreign Aid
There are several motives which inspire DCs to give aid to LDCs. These include: Economic
Motive, Political motive, Strategic motive, Aesthetic motive, Humanitarian motive, Historical
need to deepen relationship.
1) Economic Motive
Development countries give aid to LDC with the aim of getting returns in the long run. In these
sense, Aid is a form of investment, However, DC's will invest in LDC only if the rate of interest
on loans is much higher the productivity of capital when it is invested in DC's.
2) Political Motive
Development countries give aid to developing countries with whom they share a political system,
political history, or even political interest i.e. western European count in the past have favored
Kenya with AID because of capitalism while Tanzania was preferred by Eastern Europe and Russia
because of its percent learning to socialism.
3) Aesthetic Motive
A country can give aid to show off to other countries and the whole world how wealthy it is this
way; countries use aid in order to common international respect.
4) Humanitarian Motive
This is aid given on sympathetic grounds. It is gives in times of emergency such as when there are
flow earthquakes, outbreak of disease or war.
5) Historical Motive
A country may give aid to another country in to deepen historical relations e.g. the UK and French
governments tend to concentrate their foreign and there ex-colonial territorial reflecting strong
historical ties and also as a way of compensation. These countries for colonial neglect.
Civil Societies Organizations (CSOs)
These entail all organization falling between the family and the state. These include: Non-
government organizations, community based organizations, Trade unions, Human rights
organization, consumer groups etc. Religious organization in particular provide education facilities
and bursaries to those who are poor, they also provide welfare through building of clinics,
dispensaries and even hospitals. They also help in mobilizing resources which are then allocated
to areas of most need.
NGO's and CBO's in particular provide resources to help those in social stress i.e. during times of
catastrophes such as fire outbreaks, floods, famine etc.
NGO's are instrumental in introducing new techniques of production which when adopted bring
considerable benefits to the poor like introduction of money maker pump.
NGO's provide an independent assessment of how public resources are being allocated at the
national and local level. Often they advocate for equitable distribution of national resources. They
monitor the use of these resources to ensure that they translate into value for most with regard to
the beneficiaries. Compared to government, NGO's and CBO's have a lot of advantages;
 Policy Formulation: There is a marked increase in NGO participation in policy processes
as invited participants. Their representatives have had seats at the table in formulation of
specific policies, district development plans and on technical committees and sub-
committees at all levels. This is highly commendable.
 As Pressurisers/Agenda Setting: NGOs sometimes exert pressure from outside `the tent' on
both formulation and implementation of policies, programmes and plans. They use
campaigning - a visible activity directed at a certain constituency, often media (mediated;
and lobbying) a direct and often private approach to individuals or small groups of people,
as an attempt to influence the decisions of the institutional elite on behalf of a collective
interest. NGOs are supposed to act as counter weight to state power protecting human
rights, opening up channels of communication and participation, providing training
grounds for activists and promoting pluralism.
 As Service Deliverers: NGOs engage with policy makers at implementation or field/
Action level. Implementation is an important policy phase as it is often at that stage that
failures in the policy processes occur. Here NGOs play a bridging role between government
and the people.
 As Monitors: NGOs can provide an independent assessment of how public resources are
being allocated at the national and local level. After NGOs have advocated for equitable
distribution of national resources during the budget process, they monitor whether these
resources reach the intended beneficiaries and whether they translate into value for money
(getting the best outcome using limited financial and human resources) for end users.
NGOs also have a role to play in assessing how quickly and effectively the private sector
is moving into space created for it by liberalization and rolling back of state institutions
 from direct production and whether the premises on which this model is based hold for our
type of economies.
 As innovators: NGOs are sometimes instrumental in the introduction of new approaches
and techniques which, when adopted, bring considerable benefits to the poor. Examples
include introduction of new technologies, farming methods, resolution of conflicts etc.
 As Partners: NGOs work in partnership with Governments and Donors in the planning
process by offering expertise, experience and whether possible logistics and other
resources. NGOs are agents of change but their ability to effect change rests on
organizational independence, closeness to the poor, representative structures and a
willingness to spend a large amounts of time in awareness-raising and dialogue. NGOs
particularly those working closely with CBOs and which believe in the efficacy of
`empowerment' approaches can be an important asset when government wants to mobilize
people.
Weaknesses of NGOs
From what has been discussed thus far it appears that NGOs are very well suited as instruments
that facilitate the process of development. In spite of this apparent endowment it is important to
note that there are certain limitations that can inhibit the effective functioning of NGOs. The
limitations of NGOs as follows:
 . Inadequate planning, organisation and management.
 . Inadequate staff training.
 . Inability to replicate projects and ensure sustainability.
 . Inability to effectively collaborate at appropriate levels with government services.
 A lack of co-ordination of the efforts of individual NGOs to ensure an effective macro level
spread of development