The Role of Stakeholder Engagement in Development

Economic growth and development is one the the major functions of governments. Delivering on this has not been an easy task for governments of many nations particularly the developing world where majority of the populace still live in abject poverty. A review of activities in these countries will show huge sums of money spent over decades without any noticeable impact on the livelihood of the people. One of the major causes of this set back is lack of adequate involvement of the masses of the people (who are stakeholders in any nation-building project) in the process of policy formulation and project and programme planning and execution.

Those for whom services are meant are in the best position to say what services will contribute the most to their well being, what is public value is best defined by those for whom the value is to be created. This way projects with the most potential for greatest economic impact will be executed.

Meaningful growth that will result in sustained poverty reduction requires inclusive growth that allows people to contribute and benefit from economic growth. Comments welcome please.

The Evolving Discipline of Stakeholder Engagement

Stakeholder Engagement is the organization’s effort at involving stakeholders to obtain inputs so that their concerns may be addressed in decision making and activities. The practice is gaining popularity and acceptance across business organizations and governmental institutions all over the world and is gradually developing into a discipline of its own.

Some 20 years ago, organizations and stakeholders saw themselves as antagosists both camps dealing with each other with suspicion and distrust. Issues were handled on a case by case basis as the needs arose. Serious commitment was lacking and action was limited to what was just enough to silence the complaining voce! Engagement was a burdensome and undesirable assignment then.

There is so much interdependence in society, no one can act without an effect on his environment. Globalization also adds complexity to this inter-connectedness. Social justice demands that where a decision or action impacts on another person, his voice should be heard and his concerns taken into consideration in making that decision. It has taken mankind decades to learn the lesson that a man’s personality is in his words, where his words are his commitment will be. sWhere there is no commitment there caould be passivity, resistance or even sabotage.

Public projects failure in many countries, particularly developing nations, are due mainly to lack of sufficient involvement of stakeholders and not a few change programmes in organizations hit the rocks because of inadequate participation by their members.

Two projects in the Bible drive home the lesson of why stakeholder engagement is so important. When the Creator wanted to give His creatures names He consulted Adam to the extent that whatever name Adam gave was the name approved. That project was a resounding sucess! At another time when a helpmate was to be provided he was not consulted; althouugh it was in his best interest, he opted out and accused God at the least opportunity he had!

Many organizations have learnt the lesson the hard way and attitude towards stakeholder engagement has changed dramatically but not a few organizations still lag behind in embracing this concept and applying it faithfully. In a later write-up we shall discuss the various stages that stakeholder engagemment has passed through to enable each organization place itself on the scale. It is not in the best interest of any organization to be left behind in this progressive attitudinal change. Stakeholder engagement today is tending towards a win win situation: both the organization and the stakeholders will be better of if engagement is faithfully carried through.