Patterns and Stories Podcast

Luca Dellanna

Public policy and management (by Luca Dellanna and Ismail Manik) patternsandstories.substack.com

Episodes

  1. Yohan Iddawela on using satellites for economic data

    09/06/2025

    Yohan Iddawela on using satellites for economic data

    Welcome to another episode of Patterns and Stories. Joining us today is Yohan Iddawela, a data scientist at the Asian Development Bank. Yohan studies the use of satellite data as a tool for estimating economic development in areas where reliable economic data may be scarce. We are your hosts, Luca Dellanna and Ismail Manik. The AI-generated transcript was lightly edited for grammar and fluency. Highlights * “What's probably most interesting for development practitioners, public policy practitioners, is how we can use this type of alternative satellite-based data to proxy for economic activity, particularly when official statistics are not present or are not of high quality.” * “We went to Uganda and were trying to understand why the manufacturing industry in Kampala was somewhat stagnating. We had a number of different theories around why that was the case. We thought it could be related to the high cost of imports, the exchange rate depreciating, and the high cost of borrowing. So interest rates were really high, electricity wasn't very stable, and so on. We went in and surveyed about 150 different firms of all sizes to work out what the actual problem was. And something really interesting came back, which we didn't expect. A lot of these people we interviewed said one of the main problems was around the quality of local governments.” * “I feel like large language models are reducing the barrier to working with this data because now you can work with it using natural language. […] It might require some sort of debugging, and I feel like it moves you from being someone who creates code to someone who edits code.” Links * Yohan’s LinkedIn This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit patternsandstories.substack.com

    40 min
  2. Cheryl Strauss Einhorn on decision-making

    07/19/2025

    Cheryl Strauss Einhorn on decision-making

    Welcome to another episode of Patterns and Stories. Joining us today is Cheryl Strauss Einhorn, the author of three books, including “Problem Solved.” Cheryl created the AREA Method, a decision-making system for individuals, companies, and nonprofits to solve complex problems. She also founded Decisive and is an adjunct professor at Cornell University. We are your hosts, Luca Dellanna and Ismail Manik. The AI-generated transcript was lightly edited for grammar and fluency. Highlights * “By thinking about failure, we can identify the weaknesses and the vulnerabilities in the decision that we want to take so that we can hopefully shore up those weaknesses and strength-test our decision to give it an even greater likelihood of succeeding for us.” * “People want to get started on their problem-solving without actually stopping to define the problem that they're solving.” * “[On the difference between uncertainty and ambiguity:] Uncertainty is something that has a future element of unpredictability, but ambiguity is something that lacks clarity. […] So, even if it’s something that you cannot know, you likely can triangulate in a way that can help you to feel like you’ve been able to mitigate and clarify some of the ambiguity. And I think even within uncertainty, you likely can find aspects of the uncertainty that are actually not uncertain but ambiguous instead.” Links * Cheryl’s books * Cheryl’s website * Cheryl’s LinkedIn This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit patternsandstories.substack.com

    33 min
  3. Barry Ritholtz on How Not To Invest

    06/22/2025

    Barry Ritholtz on How Not To Invest

    Welcome to another episode of Patterns and Stories. Joining us today is Barry Ritholtz, the co-founder, chairman, and chief investment officer of Ritholtz Wealth Management, and author of “Bailout Nation” and “How Not To Invest: The ideas, numbers, and behaviors that destroy wealth - and how to avoid them.” The latter is the focus of today’s conversation. We are your hosts, Luca Dellanna and Ismail Manik. The AI-generated transcript was lightly edited for grammar and fluency. Highlights * “There's a meme on inflation that shows up on social media. Kevin McAllister, from the movie “Home Alone,” went to the supermarket in 1990 and he bought $19 worth of food. Today, that same bag of food would cost you $72. Therefore, the dollar is declining, and inflation is running amok. [This argument] is intellectually dishonest and wrong, and I'll explain why. I was in the supermarket on Sunday and I bought some milk, some yogurt, and some fruit. But when I went to the supermarket in May 2025, I used the dollars I earned in May 2025. I didn't earn a bunch of money in 1990 and then put it in an envelope and said, I'm going to hold this money aside for 35 years. […] It turns out that the dollars that we earn, the median income in the United States, has gone up a little more than the price of food.” * “If you don't know the person's track record, if you don't know their disposition or temperament, if you don't know their process, [listening to them is] like taking candy from a stranger.” * “I start the book with the story of Sam Zell, one of the most successful distressed real estate investors of all time. When he forecast recessions, they never came true. When he said we're fine, we actually already were in a recession. But [forecasting recessions] is not how he became a billionaire. He bought really valuable property from over-leveraged owners when they became deeply distressed. If you're buying Class A real estate, 40, 50, 60 % below its market value, you're going to do really well. […] His forecasting is not what made him money. His buying distressed property at a great price and then holding it for years or decades [is] how Sam Zell became a billionaire. So that's the halo effect. We believe things about people who are successful that we shouldn't [believe].” Links * Barry’s latest book * Barry’s website * Barry’s Twitter This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit patternsandstories.substack.com

    52 min
  4. Shanta Devarajan on the Sri-Lankan Crisis

    06/07/2025

    Shanta Devarajan on the Sri-Lankan Crisis

    Welcome to another episode of Patterns and Stories. Joining us today is Shanta Devarajan, Professor of the Practice of International Development at Georgetown University. Prior to that, he was Senior Director for Development Economics and a former Acting Chief Economist of the World Bank Group. We are your hosts, Luca Dellanna and Ismail Manik. The AI-generated transcript was lightly edited for grammar and fluency. Highlights * “One distinction between the Sri Lankan crisis and all the others that I have worked on […] is that the Sri Lankan crisis was an entirely Sri Lankan, the Sri Lankans’ fault. Most of these other crises, there's usually some negative shock that that comes up.” * “We introduced something called a governance-linked bond, where the coupon rate on the bond will go down if the government introduces certain governance-linked policies. So, the idea there is that you have a fiscal incentive, the government has a fiscal incentive to introduce these good governance reforms.” * “The first lesson I take from the Sri Lankan case, but it's something that I could have told you even before the Sri Lankan experience, is do not delay. You should act early.” * “When a country is doing well and there's some deep underlying governance problems, it's very tempting to say, well, those problems aren't so serious. Right? Look, we're doing well. Look at all the indicators. And I think that's very dangerous.” Links * Shanta’s book * Shanta’s Twitter * Shanta’s LinkedIn This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit patternsandstories.substack.com

    43 min
  5. Dag Detter on unlocking the hidden value of public assets

    05/24/2025

    Dag Detter on unlocking the hidden value of public assets

    Welcome to another episode of Patterns and Stories. Joining us today is Dag Detter, a Swedish author and investment advisor who has led the restructuring of the government portfolio of public assets during the reforms of 1998-2001 as the former President of Stattum and Director at the Swedish Ministry of Industry. We are your hosts, Luca Dellanna and Ismail Manik. The AI-generated transcript was lightly edited for grammar and fluency. Selected highlights * “We have done the valuation of the assets in Sri Lanka, and it turned out that they are significantly higher than the debt. So the country is actually, as presumed, extremely rich, but it is not using those assets; it's not managing the assets properly. And before we did the valuation, the finance minister in the President didn't even know that they had these assets. So, there are enormous opportunities to manage the assets better and to have a yield and non-tax revenues from them.” * “In a government, they have more assets, the assets are more valuable than all the debt [… but] if we only look at the debt, we will always think that we are poor and we don't have resources to invest for the future, for the next generation. So we are basically starving society of investments. And more importantly, if we are only looking at the debt, we are not making a differentiation between whether we are borrowing money to invest in important things like infrastructure, housing, and those things that could generate revenue and could benefit society. We're also not doing maintenance. […] Because of poor accounting and poor asset management in the public sector, we have a lot of derelict infrastructure. […] If you don't recognize, if you don't see your assets, you will not manage them because you don't see them. You can't manage what you don't see. And if you don't see it, you will not invest because you can't see that it's derelict.” * “The Minister of Finance in a local government, state government, or national government should be producing financial statements, if not monthly, at least quarterly, and they should be timely so they're not lagging in time because The issue with financial statements is not so much transparency, which is often talked about. Financial statements are the numbers, the data that you have for making wise decisions. So, having them produced too late is no use for the politicians or any other stakeholders to actually be able to make proper decisions. For instance, in New Zealand, which is the prime example in this regard, they have monthly statements, which allow them to take timely and proper decisions with accurate data.” * “The second myth in public finance is that accrual accounting is difficult, time-consuming, and expensive. All three are myths, and you should get rid of them as soon as possible because accrual accounting is not rocket science. It's done in the private sector every day. It's done by private individuals. […] It doesn't take a very long time to do, which is proven by New Zealand [and] other countries. And it's not very costly. When people refer to the cost, they often are referring to the fact that they need to change an IT system, which they will have to do anyway. And that cost is absolutely marginal compared to the revenues, the non-tax revenues, and that you can generate from better management and from understanding your finances better, but also from limiting the fiscal risk that you have by not having proper accounting.” Links * Dag’s books * Dag’s website * Dag’s LinkedIn This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit patternsandstories.substack.com

    29 min
  6. 04/28/2025

    Lina Ashar on Education

    Welcome to the second episode of Patterns and Stories. Joining us today is Lina Ashar, the founder of Dreamtime Learning. We discuss how to shift from transactional to transformational teaching. We are your hosts, Luca Dellanna and Ismail Manik. The AI-generated transcript was lightly edited for grammar and fluency. Highlights: * “We do not [as society] design the education system or the learning sessions in the way their brain actually works. What we're doing is like a factory model. It's like compliance, not curiosity.” * “I keep teaching kids about their brains and their behavior in every session. Because if kids can master their brains, their thoughts, their actions, and therefore their behaviors, they're going to be successful. That's a given. But if they master only what is calculus, or what this is and what that is, even though they may get an A+, success is not a given. Because you can master content, but if you have to master yourself, you're lost.” * “If their whole school time is spent on learning the core curriculum, where is the time for kids to specialize? Where do they get those 10,000 hours that they need to become a specialist? So you have to free up time in the child's day for them to become highly specialized.” * [Lina discusses one of the exercises she does with the kids.] “You take one of the things the President said, it's recorded and on video. You take CNN's take on it, and then you take Fox's take on it, [and you show it to the kids]. This exercise teaches kids about communication and cognitive bias.” * “The number one reason anyone disrupts anything is because they're bored. My kids rate our lessons. If one of our lessons doesn't get rated highly, we go back to redesign it.” * “Kids can be bored for a couple of reasons. Either the learning challenge is too much or it's too low. They're either bored because they can't comprehend and progress to the next step, or they're bored because it's too simple. One solution is to create scaffolding processes for kids who are over-challenged, whose brains aren't able to connect what you're teaching to what they know. The second thing is, if you scaffold within the lesson plan itself, you solve 90% of your problem.” * “To parents, I say, please be brave. Please be more courageous. Please don't be scared of change because the world around your kids is changing so rapidly. Embrace it and dare to help them learn differently.” Full Transcript: Ismail (00:00) Welcome, Lina, to our podcast, Patterns and Stories. Looking back, what do you think were the biggest gaps in the current or traditional education that you wanted to fix? What were the key things that you wanted to address urgently? Lina Ashar Dreamtime Learning (00:28) You use the word reform, right, in your question, and it's very difficult to reform anything, especially in education. So you basically just have to go in there, do your disruptive thing, and hope it sticks. It's as crazy and as simple as that. I always say I'm a positive disruptor, I'm an outlaw, right? Because I'm always the cowboy trying to do very different things, especially in places like India that are still very conventional in their thinking. We were ruled by the British Raj; the education system was set up by the British in India, and we've not really been able to pull away from that. Where public policy and reforms are really challenging, I think it takes disruptive entrepreneurs just to come in, shake things up, and then when it works, then everybody says, wow, this works, and let's go along and, you know, shift the journey. When I came in in 1993 with Kangaroo Kids, we actually only started with 10 kids. Why 10 kids? Because every parent who walked in the door would say, “Will you get my child ready for the entrance exam?” This is into junior kindergarten or grade one of this school. So, they're saying school needs an entrance exam for a little child who was supposed to be curious and explore and not be taught things by rote. And yet, what these preschools were doing at that time was rote teaching kids. Then, what they did was almost like backward corruption; they'd go and get the exam papers of the entrance exams for three-year-olds and four-year-olds. Then, they would take that back and put it in their curriculum. So, children could answer who the father of the nation is at the age of three. That is such an abstract concept, right? Father of the Nation for somebody who is a historical figure. How do three-year-olds even get their minds around that? They can't. So, you basically were teaching them how to parrot a response. And that's what, in 1993, I started getting away from. I said, No, I will not turn your child into a parrot, but I will do what's developmentally appropriate for your child. And started teaching parents. And that's why I write the books, because if you teach parents that there are windows of opportunity in brains that are developing, you explain it through examples and specifics, saying, a child's got a lazy eye, what does the doctor do? And they'll say they bandage one eye. But which eye do they bandage? They bandage the strong eye. Why do they bandage the strong eye? Because the weaker eye will now be forced to develop that neural pathway for eyesight in the other eye. But if an adult has a weak eye, doing the same exercise doesn't work for the adult because the neurocircuitry is already pretty strong. The highways in the brain are already set. So when you explain it to parents with these tangible examples, then parents start understanding, OK, we're saying that we're going to take the windows of opportunity that are open between 0 and 6, and we're going to do the right activities and exploration and allow discoveries. That's how the brain will develop. Neuroscience is teaching us so much day after day, and it's still only the tip of the iceberg. We still don't know what human consciousness is, for example. Most brilliant scientists cannot actually tell you what human consciousness is. We don't know all these things, right? But we do increasingly know more and more about the brain, like the example I just gave you. There's even more we know today about how the subconscious works, how beliefs get set in a child. And we do not [as society] design the education system or the learning sessions in the way their brain actually works. What we're doing is like a factory model. It's like compliance, not curiosity. That's what we're teaching kids, right? Behave, sit down. Now, that was when I did in 1993. In 2017, I sold Kangaroo Kids and Billabong because we're coming to a different age altogether. And remember, I sold it before ChatGPT became a thing, I sold it before AI was already at our doorstep. But because I did so much research, I knew that things were going to change. Things were around the corner. And that is what we call the creator economy. So, what do we have to do in the creative economy? What do we have to teach kids? How do we teach kids to feel emotionally safe when things are changing so quickly? The outside world has changed so rapidly, but from an evolutionary perspective, our brains and our minds and our hearts and our bodies have not changed. So, how do we do it so that kids feel emotionally safe? They know how to regulate in these times of rapid change. And how do we get deep learning and happiness? Nobody's saying, “I want to drive a Ferrari.” [They say] I want to be happy. But we don't teach kids how to be actually happy. Ismail (05:36) Lina, I was going through one of your earlier books. I think it is from 2012. “Who Do You Think You're Kidding?” It's an interesting title. One of the chapters at the start is titled 21st Century Child. Can you expand a little bit? Lina Ashar Dreamtime Learning (05:57) Do not read that book. Because the information there is from 2012. Today, if I were to rewrite the book, it would be completely different. In this world of AI and everything else, who are the types of people who will be valued going forward? From there, you can extrapolate the kind of skills they'll need. Call them 21st-century skills, just call them human skills, call them whatever. The first type of person in a world full of AI is going to be the highly emotionally intelligent people. Right? So, you'll have AI giving you a more accurate diagnosis than a doctor, but you'll still need a doctor to hold your hand and say what this disease means to you, and how it is going to impact your life, and some of the things you can do to self-regulate. So, I think doctors are going to change from prescribers of medicine to lifestyle doctors who teach you how to cope at an emotional level with what's going on. So, doctors will actually understand more deeply the connection between the brain, the heart, the stomach, and the gut. The gut is the seat of so many things. We only treat the brain and the heart in terms of education, but we have to teach kids to heal their guts as well, constantly. So, this kind of doctor is going to be very different. He's going to be forever learning, but he's going to have a very high EQ. So that's number one. Your second person is somebody with what we can call a personal copyright, a personal monopoly, which is a subset of skills and interests that uniquely come together, making it very difficult to replicate this person. Like, take me for example. I've read hundreds and hundreds and hundreds and thousands of hours about the brain. And in the brain, not just reading about the technical aspects of the brain, right? I'm reading all the research on motivation. I'm reading all the research on when the brain understands why it's doing something, and why it does it better. What does fear do to the brain? What does joy do to the brain? What are the brain chemicals that get released? How do they get released differently based on your thoughts? So my reading is vast in the area of the brain. Then, my second area of reading, which i

    45 min
  7. 04/19/2025

    On Higher Education, with Minerva University founder Ben Nelson

    Welcome to the second episode of Patterns and Stories. Joining us today is Ben Nelson, the founder of Minerva University, an independent, non-profit educational institution whose classes are conducted as seminars capped at 19 students, who travel to and live together in residential housing in a new country each semester, starting their education in San Francisco, and then living in Seoul, Taipei, Hyderabad, Buenos Aires, Tokyo, Berlin, and then ending their program in San Francisco. Ben founded Minerva in 2012, and before that, he was the CEO of Snapfish. We will discuss the assumptions of traditional higher education that Minerva challenged. We are your hosts, Luca Dellanna and Ismail Manik. The AI-generated transcript was lightly edited for grammar and fluency. Subscribe to be notified of new episodes Highlights: * By the end of summer, after their last year in high school, a typical high school student has forgotten 60 % of what they've learned in three months. It is an outrageous, colossal failure. * In order to know something, you have to actually have space and deliberate practice in applying it. [But what the education system is doing is] the equivalent of trying to teach somebody the violin by letting them listen to the music. Even getting a piano and saying, okay, you know, press this key, press that key, press this key, and now you're done. Now you know how to be, now you're a pianist. And it's kind of absurd. Acquiring knowledge is not the same as the ability to use or deploy that knowledge. * What cannot be replaced by an AI is the learner. Sure, you can easily make the argument that says you can train an AI to deliver content. [...] But what you cannot do is have an AI rewire somebody's neurons, so they learn something they didn't know before. [...] In fact, in an age of AI, when so many of the standard elements are done by the machine, the imperative to know becomes even greater. * If you don't understand the core principles, you're vastly slower. You need more human resources, more brute force. And you can still be beaten by somebody with vastly fewer resources who understands the core down to first principles. * So, how does AI actually improve learning? Well, first and foremost, by enhancing the teacher's capability. * We're finally admitting that there is a deep rot at the core of secondary and post-secondary education, and that the only way to address it isn't with incremental tools for the teachers and professors that are stuck in the system, [but] by ensuring that we are providing an ability to reform the system and therefore uplift teachers, professors, and university and high school administrators to actually reform. And that's the core of what we're trying to do at Minerva. Full transcript: Ismail (00:00) Today, we have Ben Nelson, founder of Minerva University, as our second guest on the podcast, Patterns and Stories. Welcome, Ben, to the podcast. I was just going through the book about innovative universities, and there is a chapter dedicated to Minerva, which mentions the pitch you made to Larry Summers. Maybe you could just recount a little bit from that story, where you are, and how Minerva moved and developed. Ben Nelson (00:41) Sure, happy to. For those of you who may not know, Minerva was built as a prototype university – a university that demonstrates to the rest of the world what is possible when you reimagine learning and center it on wisdom or systems thinking, as opposed to this kind of cram for the test, teach the test, pass the test, then everything that was the model traditional universities employ. The premise was to generate the best university in the world, with the best student outcomes, better than Harvard, Stanford, Oxford, and Cambridge, but do it from scratch. And I think today, certainly since we've done it and proved that it's possible, and in general, because the collapse in faith in higher education has happened all over the world, today, it doesn't seem like such a crazy idea. Fifteen years ago, it was an absolutely crazy idea. Nobody believed me. People thought I was out of my mind, by and large. And I knew that I needed real, what was known as social proof, right? The ability to demonstrate that it's not just me, that serious individuals would back the idea, back the concept. And there really was no one more prominent in the world of global higher education than Larry Summers, former president of Harvard, former treasury secretary of the United States, a polymath, and brilliant economist. And I did have the opportunity to finally meet him after more than a year of thinking about this idea, being told by almost everybody I met that I was completely crazy. When I met Larry, we had half an hour, and he came in 15 minutes late to the meeting. It was all rushed, but he stayed for two hours, and he finished my sentences. He immediately understood what Minerva was gonna be about. And by the end of the meeting, he said, “Look, this is a great idea that should happen. I'd love to be the chair of your advisory board.” But I didn't have an advisory board. It was just an idea. But it was thanks to that that I could form the advisory board with Larry as the chair. I went out and successfully raised the capital that was necessary to start the university. As one says, the rest is history. Luca Dellanna (03:02) I've seen from some of the other podcasts that you said some interesting things about the pedagogical approach. I think I've heard that, for example, you don't have 101 courses where you teach the basics, because there is an assumption that students can use technology to find it. What are other ways in which you challenged the assumptions of traditional education? Ben Nelson (03:32) Yeah, you know, there are these two core fallacies that exist in the world of higher education. And the first fallacy is that exposure to knowledge equals the acquisition of knowledge. We're perfectly happy saying, hey, here's biology 101, the textbook is this thick, read the entire thing over 15 weeks, we'll administer a final exam, maybe a midterm. You cram that information in your head, you're able to retain it just enough to pass the exam, and now you know it. Well, you don't know it, right? We all know that we all took biology in high school, chemistry, and physics. Almost anybody listening to this podcast who then didn't go on to further study in those fields couldn't pass a high school biology test today. And that's because we simply don't retain information that way, right? In order to know something, you have to actually have space and deliberate practice in applying it. [But what we are doing is the] equivalent of trying to teach somebody the violin by letting them listen to the music. Even getting a piano and saying, okay, you know, press this key, press that key, press this key, and now you're done. Now you know how to be, now you're a pianist. And it's kind of absurd. And so that's kind of a fallacy number one. There's a second and even more dangerous fallacy about education, which is that knowledge and acquiring bits of knowledge are equivalent to a true education or real learning, authentic learning. That's also a fallacy because acquiring knowledge is not the same as the ability to use or deploy that knowledge, right? You know intellectually the difference between correlation and causation. You can study the concept, you can remember it, and you can apply it a few times. It's not a very difficult concept to know. It's really difficult to go around life and encounter all of these correlated events and understand that they may or may not be causal. That's a very hard thing for human beings to actually practice. They see things that wind up being correlated and assume one causes the other. Not necessarily the case. Could be underlying conditions that cause both. It could be unrelated, but just coincidental. It could be that what you actually think is the cause is the effect and not the cause, et cetera. And so there are all sorts of these types of things where you can quote-unquote know something, but you don't know when to deploy it. And that's again, if you want to use the piano example, you could learn to play chopsticks on the piano, very different than being able to do jazz and classical music, very different being able to do rock and roll, very different than being able to do a slow emotional piece versus one that is very fast and technical, one that requires a certain level of humor versus a certain level of seriousness, not to mention as the keyboard itself switches, You know, acoustic versus electronic, having various manufacturers, different timbre, and how to manage that sound. So there's a recontextualization, even in piano playing. Whereas if you think about it, you know, life and the infinite possibilities of applying the various tools that you learn, the imperative to learn knowledge in an applicable way that is applicable to what we refer to in psychology as far transfer and transferable way is really at the heart of what a real education is. And the Minerva model fixes the pedagogical problems that keep individuals from actually acquiring the knowledge that they're exposed to. So it ensures that people actually retain what it is that they learn by and large. Can't retain everything, but a large quantity. They are then able to apply that knowledge, no matter what context they are presented with. Basically, they're learning in a transferable way. Those two areas are perhaps the biggest ways in which we have challenged the orthodoxy of what education is all about. Ismail (08:14) One thing unique [about Minerva] is that there is no comparable kind of institution like that. So the students in Minerva, for the degree programme, study in seven cities. What has been the experience, and how did you manage during COVID? What are the lessons that can be learned from this approach to living in cities, and what is the lesson of it, or what can you learn fro

    38 min
  8. Peter Eigen on Fighting Corruption

    04/13/2025

    Peter Eigen on Fighting Corruption

    Welcome to the first episode of Patterns and Stories. Joining us today is Peter Eigen, the founder of Transparency International, a non-governmental organization fighting corruption with national chapters in over 100 countries. Peter founded Transparency in 1993, and before that, he worked at the World Bank. We will discuss the challenges of fighting corruption and what citizens can do about it. We are your hosts, Luca Dellanna and Ismail Manik. The transcript was lightly edited for grammar and fluency. Highlights “I wanted to set up a system where all the suppliers stop bribing simultaneously, and nobody would lose from that. I pushed this as a proposal within the World Bank, [...] and it didn't work at all because the countries which are the owners of the World Bank, like Germany, France, the UK, Japan, and so on, said you cannot get any business in the international market if you don't bribe.” “Even the vice president for Africa said, yeah, we are going to do that. But he ran very quickly into the opposition of the owners of the World Bank, of the shareholders, who wanted their companies to continue to be allowed to bribe internationally. [...] I was not convinced anymore that it was really the corrupt African leaders who were demanding the bribes, but it was at least as much the corrupt suppliers who were offering the bribes from the North.” “If you leave it to the government to control corruption, it will be very hard to be successful. [...] The better solution is if one gets together a civil society and organizes something like Amnesty International, Greenpeace, or Save The Children. This is where citizens get together to promote something that, to some extent, is supposed to help society as large but which the government is very often not able to supply. [...] It's important to get these citizen groups together and join them in a discourse with the government and the private sector in a given situation. And on that basis, you can change things.” “[In Germany], until 1999, [companies bribing foreign governments] would get a tax write-off. They could declare this a useful expense.” “We don't see ourselves as a transparency initiative, as an organization that chases individual corruption cases. We are doing that also if it is necessary for our mandate to change the system. But the main thing is we want to change the system.” “There was one firm, the firm Bosch, know, the big electric firm, which lent us, for instance, their boardrooms for our sessions in Stuttgart, which supported our way. But they didn't want to mention this because they felt ashamed. They were embarrassed that they didn't bribe, you know, because the others, their competitors, thought they had to bribe because otherwise they wouldn't get contracts. So, it was very strange to build up a system of support.” “We don't want to change the whole world from one day to the other, but we want to create certain situations, say, the road sector of Uganda or the health sector in Ghana or so. And we would say in that sector we try honesty, [and] we allow everything else to continue. We are not going to name and shame corrupt people. If you find out about it to the contrary, we try to become friends with the companies, in particular the multinational corporations. [...] Eventually, we convinced them through this integrity pact, which we eventually developed into a legal system where we would ask people who bid for a certain contract to enter into a triangular contract with civil society and with the government in which they promised not a single penny of corruption will be allowed in this contract. In particular, civil society was empowered to look at the books and so on, look at the bids, look at the bid evaluation. [...] We convinced various presidents to introduce the Integrity Pact in their bidding documents whenever they borrowed from the World Bank. But the World Bank didn't allow it.” “One of the most important principles of Transparency International is that this has to be handled by the countries themselves and their people. And so, the main strength of Transparency International is the national chapters.” “Our second mantra basically [is] that we have to get the main stakeholders together [civil society, the private sector, and the government] in a given situation with their interests and let them present their interests and confront them with their interests of the other two. [...] This multi-stakeholder process, which brings the three actors, government, civil society, and private sector together, has become sort of my golden key to better governance.” “[Our third mantra is to] try to stay away from getting involved in individual cases of corruption too much. [...instead,] our organization should try to build a coherent, systemic approach to corruption. And I think we have shown that this can succeed.” Full Transcript Part I: the birth of Transparency International Peter Eigen (00:36) Thank you very much. It's a great honor for me to speak to you and Luca. Indeed, it's been a long time since we met, but it's even longer since I started to feel very uncomfortable with what I saw in many of the World Bank projects. I saw the decisions that were taken by governments that borrowed money from the World Bank in order to promote big projects, pipelines, railways, schools, hospitals, and so on. They very often made the wrong decisions, and we didn't quite understand why. It became quite clear to me when I was still the division chief for some Latin American countries, such as Argentina, Chile, Peru, and so on, but even more when I became the director of the regional office in Kenya, that there were some arrangements made by the decision-makers in the borrowing countries with the suppliers to take the wrong offers – even when we told them this was too expensive, it was not the right thing to do right now to build a big highway. I have become more and more uncomfortable with the decision-making process in some of our borrowing countries. Of course, I totally accepted that the governments who borrow from the World Bank, it's their business; it's the politics and the culture and so on of their country and the social needs which they have to take into account when they are taking the money of the World Bank. But we also wanted to see that our projects succeed, and therefore, it became quite a worry for me when I saw that very often projects were promoted, which we didn't quite understand. And so I began to talk to suppliers from Germany, the United States, Japan, France, and the UK and I asked them. They said, well, in Africa, but also in Latin America and Asia, if you want to get contracts, you have to bribe people. And I said, well, but then they make wrong decisions. I was in charge of the legal department many years ago, in 1967, when I joined the World Bank. I was in charge of the procurement guidelines, and international procurement was very much part of the gospel of the World Bank. So when we gave a loan of several hundred million dollars, and they were then contracted out to build big pipelines or railways or road systems, we wanted to get the biggest buck for the dollar, you know, and therefore, we followed very closely the competitive procedures and then the comparison of various offers. I understood more and more, and that was in 1988, 1989, and 1990 when I was in Kenya, that things couldn't be quite successful because the wrong decisions were taken and probably based on corruption. So, I asked the World Bank basically to help me follow up on these rumors and stories of corruption. I asked the people who were building big projects in Kenya, Tanzania, Ethiopia, or any of these East African countries what happened. And they said, well, look, this is necessary. I mean, these ministers, these presidents, they demand it. And if you don't give them money, we don't get the contracts. This is why I started to propose something (because I also thought it was a great shame that these wonderful companies were forced to bribe) to start some kind of a cartel of the honest. Therefore, I called it the business practice monitor, and I wanted to set up a system where all the suppliers stop bribing simultaneously, and nobody would lose from that. I pushed this as a proposal within the World Bank, so as part of the World Bank's procurement guidelines, there was some self-fulfilling requirement that nobody pay any bribes. And it didn't work at all because the countries which are the owners of the World Bank, like Germany, France, the UK, Japan, and so on, said you cannot get any business in the international market if you don't bribe. And I said this is impossible. The Americans have the Foreign Corrupt Practices Act. (In fact, unfortunately, the application of the Foreign Cross Practices Act in the United States was just suspended by President Trump.) So, this was for me the example. Jimmy Carter had started the Foreign Cross Practices Act, basically after the Watergate scandals, and made sure that no American citizen or American company was allowed to bribe abroad. And I must say this was a very courageous step. The companies didn't like it because they saw that the Germans, the French, and the Brits were allowed to continue to bribe. They had expected that everybody stopped at the same time. But others have said that it's good that Americans cannot bribe: then, it becomes easier for us to get contracts. So, this was basically the situation that I found. Therefore, I wanted to start this business practice monitor, where every supplier who wants to bid for a World Bank contract had to commit that they all would simultaneously stop bribing. But this was not accepted by the Bank. And, of course, the Bank was very much under the influence of the countries that were the owners. The Americans would have loved to support me. However, Americans had only 15 % of the votes in the bank at the time. So the other countries

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Public policy and management (by Luca Dellanna and Ismail Manik) patternsandstories.substack.com