SMEC is primarily a development company and much of its overseas work is undertaken on behalf of aid agencies, whether they are national, bilateral agencies such as AusAID or international agencies such as the World Bank and the Asian Development Bank. It is likely that most SMEC staff will at one time or another work on an aid project or program. An understanding of how the aid business works and the process by which programs are developed and implemented is therefore essential. This can be a lifetime’s work, but a few basic principles are outlined here.

Features of Aid

Aid is an unusual and highly specialised activity and one of the most complex transactions in the contemporary world economy. General features of the aid business include:

• aid is an economic relationship between governments or agencies owned by governments
• each activity occurs in a geopolitical environment which can be extremely sensitive
• the goods or services are delivered by third parties (normally consultants or contractors from the public or private sectors)
• aid activities span some of the world’s greatest cultural divides.

This means that aid programs are difficult to design and manage. It is not an easy world in which to live and work effectively.

Management Flexibility

Aid agencies operate on annual appropriations from government and deliver programs within annual financial cycles. However, conditions in developing countries often mean that the programming of expenditure is difficult; decision-making processes can be slow and impede the commencement or progress of projects, while political factors on both sides may put pressure on program managers (within the agencies or in contracting firms) to get the job done quickly. This means that expenditure patterns can be erratic. Project managers need to keep in mind what they might do if additional money is suddenly made available to ensure faster progress or constraints are imposed to slow expenditure down. Flexibility in program management is essential.

Reporting

All clients need regular information on the progress of their projects. Aid agencies are public sector bodies with large budgets and a high public profile, so their operations attract attention. This means that they must adhere to high levels of accountability. In addition, they need accurate monitoring of expenditure in order to juggle large program budgets within individual countries or across whole regions. The reporting requirements of aid agencies may seem onerous at times to consultants or contractors, but there are reasons for this. Meeting the agency’s requirements is not discretionary for contractors. Find out what these needs are and work out how to meet them.

Serving Two Masters

The donor and recipient agencies need to agree on the scope of each project and the terms and conditions surrounding its delivery. Communication between such agencies (and often with other technical agencies of government on the recipient side as well) may not always be perfect and perceptions and priorities can change over time. Inevitably, the consultant or contractor tends to be caught between the two and may often be the person best placed to develop a compromise or solve a problem. We must be prepared to do this when it is necessary, suggesting ways to overcome constraints or meet the needs of both parties.

Communicating with Non-Technical Aid Staff

Aid agencies engage consultants because of their specialist skills, knowledge or experience. The managers of agencies tend to be generalists rather than specialists, although they often know a lot about particular sectors. Consultants need to be able to communicate with their clients in clear, non-technical language, explaining why certain steps are necessary or particular directions are unwise. Specialists who are trapped in their own professional jargon and mindset will only create problems for themselves and everyone else.

Technology Transfer

Improving the capacity of individuals and organisations in the recipient country to design and manage their own development projects is central to the objectives of all aid programs. In addition, many countries which still receive aid have very competent professionals with much to contribute to the outcome of the program. Close co-operation between consultants and counterpart staff on the recipient side is demanded and expected by aid agencies – for the consultants it can also be one of the most satisfying parts of the job. Don’t ever neglect it, even if it takes time, patience and tact.