Perhaps the greatest question facing the future of development is whether it should be an internal or an external process. Can development be imposed from the outside, whether by the Bretton Woods institutions or by private organizations, or must it begin as an internal initiative?

I think development is an internal process. The policy prescriptions that are promoted by bilateral donors or the United Nations may have a different impact or be received differently in different places. As a result, their success depends very much on local conditions. The leadership in these countries, however, can take charge by itself. What the outside world can and must do is make sure that external determinants are more supportive of development. This explains the importance of discussions about external debt, farm subsidies, access to markets, and the availability of official development assistance. But important initiatives must originate with the developing countries themselves. That is why the New Partnership for Africa’s Development (NEPAD) Initiative is so interesting. NEPAD means African leaders come together and say: “This is our mission. This is what we believe has to be done to create a positive dynamic in our country that will sustain development, and we want you the outside world to be our partners in this.” I think that attitude exemplifies a very sound way to approach development.

There are some development success stories. Examples include Mozambique and Botswana, which have had strong performances based on the assistance of a great deal of external aid. But there is also an internal dynamic conducive to strong economic growth present in these successful developing countries. Bangladesh, which has taken off on its own initiative with ample outside support, is a prime example.