Case studies in financial management for work force development funded by idas

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Case Studies in Financial Management for Work Force Development funded by IDAs The following cases are provided to evaluate the actions and suggest better methods. The participants can consult the guideline document. It is suggested to form a small group and discuss the views and arrive at a consensus. Case-1- Part-1. An elected government of a developing country in South Asia had tough problems in generating needed foreign exchange to meet the essential imports like crude oil. Based on the success stories in Asia, IFC suggested to the government to globalize its economy and permit global leaders to establish manufacturing and service industries through foreign direct investments (FDIs) and allow foreign institutional investors (FIIs) to participate in the finance market. Based on the advice from IFC, the government opened its economy and planned rapid industrialization. One of the problems felt by the FDIs is that development is very much constrained by the lack of infrastructures like roads, electric power, rapid transportation system, telecommunication facilities and other infrastructure. This country possesses large mineral deposits but these were not exploited for development. The construction sector struggled to get raw materials like cement. The production of cement is very low even though the required raw materials are available in plenty this country. Based on the research studies of the consultants hired by IDAs predicted that there is a great demand for infrastructure development to improve the manufacturing, export of finished goods and modernizing service industry. The government developed a proposal in consultation with Cement Manufacturing Association (CMA) to get soft loan from an IDA for expanding the cement manufacturing capacity. The IDA offered loan for the modernization and establishing new cement companies. 5% of the loan has to be used for training the employees of the cement plants. The existing cement companies lack proper workforce development. Under this project cement companies established four Regional Training Centers to train the employees. The CMA later identified the need for training the trainers and to develop training materials that are very much needed to develop skills and competencies to manage high quality cement and reduce pollution. Based on this, CMA has sent Request for Proposal (RFP) for a set of training programs. A key faculty in engineering in one of the professional institutes, who possesses doctoral qualification and outstanding accomplishment in planning and developing outstanding programs, planned the best technical proposal for developing training modules in Pump Maintenance for Cement Industry based on the letter of invitation (LOI) from the Borrower. The CEO of this institute advised this key faculty based on the suggestion from one of the competitors to escalate the project cost in the financial proposal. Accordingly the key faculty did it since he was ordered

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