Economic marginalism and the microstate, the impact of donor conditionality requirements in international aid programmes on a SHRM training project in the Cook Islands

Abstract

Donor conditionality involves the formal terms and commitments under which major international aid agencies, such as the World Bank and the IMF grant aid or arrange loans for developing countries. In doing so, said agencies have tended to emulate, as a matter of policy, private-sector market reforms based on the contemporary neoclassical model. As a consequence, donor conditionality tends to place formalized and regular stress on inflationary control, privatization of publicly owned equity and the deregulation of public-sector employment. In turn, the functional utility of strategic human resource management as a vehicle able to obtain major change-related outcomes has tended to give it an important role in the implementation process. This paper reports on events that took place in the Cook Islands, a central Pacific microstate, during a university-based training course for public service managers in which the government imposed on a virtual exercise the full weight of real decisionmaking process. It will attempt to place this action in a larger context by, first, critically examining the tendency for SHRM initiatives to be distorted - a situation that arises when the requirements of donor conditionality do not fit the economic, social and cultural conditions in which they are to be applied. It will conclude by reviewing some of the issues to be debated should the tendency to use a single model of reform be replaced by a more country-friendly programme of requirements.