The Private Sector Development Strategy back story

From Mylene Kherallah of IFAD's Policy and Technical Advisory Division:

“Oh no, not again” was my first reaction when asked to lead the preparation and write-up of IFAD’s new Private Sector Development Strategy. I had already been through that experience in 2005 for the old strategy, and it was not exactly a pleasant memory.

A programme in Sri Lanka links smallholder farmers with
private-sector partners. © IFAD/G.M.B. Akash

The purpose of the strategy was clear enough: to help create new markets and opportunities for poor rural people by deepening IFAD’s engagement with the private sector. And it was not the writing that I minded. It was trying to obtain the consensus across the house through the various committees and getting the approval from the Executive Board that was the most daunting task.

Having to go through endless revisions, and incorporating comments that often contradicted each other, was an agonizing process – especially since the word “private sector” was interpreted differently by various people involved.

But how can you say “no” when a senior manager asks you to do something? So, building on my previous experience, I decided that the best way to handle this was to (a) take it one step at a time; (b) seek help and lots of it; and (c) use this occasion to improve my ability to listen, tolerate different views and develop my sense of humour under duress. Not sure I succeeded in applying point (c) at all times, but at least I tried.

Despite my apprehensions, I have to say that it was not as painful as I thought it would be. Despite a contentious informal seminar, a pre-feasibility study that was conducted in an extremely rushed timeframe, and a failed, long-winded attempt to circumvent official procurement procedures for the study (shame on me), the strategy was approved at its first submission to the EB in December 2011. My worst fear was that they would ask us to revise and come back again at another EB meeting, which is what happened for the previous strategy. But not this time!

In retrospect, I think several things made it work:

• enough lead time – we started work early in January 2011 and therefore had enough time to “take it one step at a time” between organizing a Policy Reference Group, writing various drafts and PowerPoints, getting feedback, seeking consensus in-house and obtaining the various approvals;
• a Policy Reference Group made up of a diverse mix of committed IFAD staff, which really made it happen – aside from the technical and strategic guidance, it was a fantastic moral support group;
• communication and consultations with other staff and external stakeholders, which improved our knowledge in this area; and
• the Senior Manager’s (Kevin Cleaver’s, in this case) constant guidance and support, quick responsiveness and his great sense of humour, which helped keep everything in perspective.

Safaris and strategies: Zambia’s journey to develop an integrated financing strategy

As we taxi off the runway on our way to Lusaka, I sit in my chair reflecting on our journey to one of the most beautiful countries south of the Sahara, Zambia. We are on our way to an inception workshop. I am with Siv on this flight to Lusaka and as we fly over the Alps with its amazing mountain top snow, I turn to look at her. She is in the same reflective mood. Perhaps she is thinking about the same things as me—a journey to support an integrated financing strategy - a journey to navigate the challenges and tap into financing opportunities - a journey to join Zambia as she deepens her efforts to address one of her most compelling developmental challenges, land degradation.

I am excited about the journey as I recall some of the keys to successful resource mobilization--- at the core is the ability to systematically and strategically access, utilize and efficiently manage financing and investments--- for sustainable land management. So why an Integrated Financing Strategy?

Her Beauty and her Resources

Zambia has great resources such as land, forests, rivers, plants, animals and biodiversity. One of the most beautiful in the continent. The country is richly endowed with a wide range of indigenous energy sources, including hydropower, coal and renewable sources of energy. With major perennial rivers such as Zambezi, Kafue, Luangwa, Kabompo, Luapula, and Chambeshi. The Victoria Falls is a must see.

Inarguably, land resources are critical to the human, economic, social and sustainable development in Zambia. Key sectors of the economy depend on land. Notably, the agriculture, natural resources, tourism, trade, mining and energy sectors depend on land and are key drivers of economic growth and export revenues in the country. Land provides employment and source of livelihoods for many rural communities.

Her Challenge: The Resource Haemorrhage and its Impact

But, one of the most compelling developmental challenges today is land and natural resource degradation. Between 250,000 and 300,000 hectares of forest are lost every year. Deforestation, biodiversity loss and soil erosion produce negative environmental impacts, often worsening the effects of climate change and droughts, whilst generating huge economic and social costs that hamper the achievement of national development goals such as Vision 2030.

So the Integrated Financing Strategy embraced by the country is to build on ongoing country processes and programmes to address land/natural resource degradation challenges. Clearly, finance is not a panacea for all the challenges. It is one of the means only.

I woke up from these reflections as we got off the plane in Lusaka. I am excited. We were off to Chaminuka but the road is bumpy. The rains have been intense in Zambia these past weeks and have left big gullies in the road. The driver navigates the path road so well to avoid pot holes that we say “Zicomo” (thank you in Bemba). Perhaps, the bumpy road is a good reminder that, charting the path to the development of a financing strategy is not straight forward. There will be twists and turns.

On our way we see ostriches. Siv is excited. We both take pictures. In fact, the area is known for its wildlife and natural scenery for safaris. We plan to take one later. Not a bad idea after all. But as I reflected on the path to a strategy for financing, I see a semblance to safaris. Safari is an adventure, it is place to explore the known and the unknown, there are choices to be made, a mix of things to see, and nature’s beauty to enjoy. But going safari can be tough and rough. The road can be bumpy but exciting and gratifying. Same with strategies.

Well, all I can say now is welcome to Zambia. Come with us to explore the design of an Integrated Financing Strategy. The journey now begins.