Along with Daniel Taghioff I too have followed this discussion about
foreign consultants and local expertise. I agree that scepticism about
consultants is healthy. However, in the bias toward external consultants
and against in-country expertise, I see the problems differently.

While it is important to examine why there is a plethora of foreign
consultants and a shortage of local experts, I would rephrase the
question and ask why local expertise has such a hard time being used. A
market model would suggest the employment of lower-cost local expertise,
which would capture an economic rent as demand unsatisfied by local
expertise drew in more costly foreign consultants. However, foreign
consultants capture the economic rent while local expertise remains
unemployed. As with Nobel Prize economist Joseph Stiglitz, I am
unwilling to accept that this is explained by quality. Something else is
at work here, something that calls for research and correctives.

Also, I would note that Taghioff's suggestion of participatory research
is misplaced here. Participatory research includes research subjects as
partners in research. Local expertise is not a research subject. It is a
research input, and frequently more sensitive to context and richer in
tacit knowledge. Local expertise is a potentially competing or
complementary input into the research and consulting process. Such local
expertise may object to a research agenda, but this is quite different
from problems surrounding the idea of "research" itself.

It is both wise and right to caution that the urge for instant action is
misplaced, that topics cannot be decided lightly, and that real
structural change does not happen in a hurry. We have the time to do it
right, especially since wrong doesn't do it at all. We do need to
understand why developing country expertise is so poorly utilised at
home, while foreign expertise continues to provide services whose
efficacy appears high (the report is produced) but whose efficiency is
low (little happens).

Much of the knowledge of a consultant is expertise tempered with
contextual and tacit knowledge. It is imperative that consultations
include explicit provision for the broader identification and greater
inclusion of appropriate local expertise. This would result in both
increases in consultant dollar efficiency and growth in the stock of
developing country expertise.


Sam Lanfranco


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