Dear Colleagues,

I ought to be pleased that someone with the stature of George Soros is
talking about transparency and suggesting that it can alleviate poverty.
But frankly, it is not such a big deal unless there is a significant
pick up of the idea by a whole lot of corporate, government and relief
and development assistance (RDA) leadership. And so far, there has been
not much practical change by the big organizations.

The issues of corruption, inappropriate corporate behavior and
mismanagement of resources have been around for a long time, maybe
indeed for ever. But the scale of economic enterprise of various sorts
is now much larger than in the past and the economic distortion caused
by a whole range of inappropriate behaviors is far bigger and far more
damaging than in past decades.

What I find so distressing is that the cost of technology that can help
in delivering excellence in accounting has dropped by maybe a factor of
one million since the beginning of my career...yet accounting,
transparency and accountability are worse now than years back. This is
ALL about leadership and the ethics of our modern society. It is time
for change, and we can make change happen.

I welcome the observations of George Soros, and the initiatives he
described, but a lot more is needed. There is a huge need for
accountability...it is missing almost everywhere. Organizational
leadership seems intent on avoiding transparency and accountability, and
to the extent that organizational leadership won't do what needs to be
done, then it will have to be done externally rather than internally.
There is enough information now in the public domain to be able to build
a systemic framework that will make fund flow information much easier to
access and understand.

It is already apparent that there are some organizations doing amazing
work with few resources, and conversely it is becoming clearer and
clearer that other organizations consume a lot of scarce resources
without doing that much of tangible value. As more and more information
is compiled and organized, it is going to be interesting to see which
organizations are effective and those that are not.

In the relief and development assistance (RDA) community, it is
interesting to compare performance from the donor perspective and the
beneficiary community perspective. Most poor communities get NOTHING
tangible from the official relief and development assistance (ORDA)
resource flows...and this is playing out right now in the SE Asia
tsunami affected areas and in a lot of places around the world,
especially in Africa. There is a lot of talk about much more money for
ORDA activities in order to end poverty. It seems to me that first we
should do a far better job of getting the existing fund flows to be used
significantly more effectively.

Management information for RDA is a wonderful way to use ICT. Organized
information about great community based activities will help to
"benchmark" the activities of the big ORDA organizations and show how
costly simple things become when they are done using the prevailing ORDA
methodologies. By using "standard costing" we can get a much better idea
of the huge value generated by unpaid volunteers and community workers.
By understanding corporate value chains we can identify the value
destruction in the host communities and countries while super-wealth is
being generated for foreign shareholders.

There is a lot of work to be done...but it is getting interesting.


Peter Burgess
Transparency and Accountability 
a global not-for-profit Network 
[EMAIL PROTECTED]
Tel: 212 772 6918 
___________
Kris Dev - Tr-Ac-Net in Chennai India
[EMAIL PROTECTED]
http://Tr-Ac-Net.blogspot.com
[EMAIL PROTECTED]



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