tv Business Beyond Deutsche Welle October 2, 2024 3:15pm-3:31pm CEST
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bring us up to date, i'll say toby's james chase over forcing from taiwan. and that's all we have time for, but to stay with us because business is up next with the look at how governments around the world are outsourcing policy making to consulting corporation. the in many countries, education is still a privilege. property is one of the main causes some young children work in mind drafts. instead of going to class, others can attend classes, minions of children of the world. we ask why?
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because education makes the world make up your own mind made for mines. what is the justifications for hiring consultants? is the expertise and innovation they bring to governments. that was also the idea behind rebuilding sweden's largest hospital in 2008. the new covenants got sona, or kevin and sky university hospital. the new car lynch good. so now was designed to was envisioned as a hospitable about with that, that would kind of embody all of these things that would create savings eventually for the public sector and enable back to forms of cap full sweden's aging population. so for the, for the why the population, it was supposed to be a well leading medical center. so to achieve those grand ambitions,
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the swedish government hired b. c. g which pushed for a new hospital system value based health care. it's a health care model that prioritize us cost effectiveness can least give was also like and it was like a show room for the basic shape. it was supposed to be the show room for valley based health care. and i go stuff on spend years reporting on the cumberland sky university case. the problem was that this was never, they said never been tested out in big scale. and that so carol escape made, it was like it was like a test bed when the hospital reopened negative headlines, flooded swedish news. the restructuring had plunged the hospital into dis, functionality. the british medical journal described the implementation as chaotic
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resulting in an i t break down a shortage of beds and even the patient that they were consultants fitting in inventing new terminology for all the different functions in the hospital. how can someone in a different hospital in still come or, or outside they'll come and get in contact with the right person needs in carolyn's got it. when they had changed over time, analogy into a management kind of link, the honest investigations for a swedish newspaper show that the chaos and the new hospital eventually contributed to long waiting lists for critical abdominal surgeries. in the end of the summer of 2017, it turned out that's more than 60 people had to had the abdominal counselor operations postpone because of this catastrophe, which is was at least 4 people that died before they had the 6 that reparation. and
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there was another major issue, ballooning costs in 2040 when the entire project is completed, it's estimated to have cost $5.00 times the original budget. on wikipedia, the hospital even made it onto the list of most expensive buildings in the world. and there are many different reasons for this, but one of them has been that huge reliance on management consultancies really from the outset of the project in, in, you know, providing analysis for evaluating how financing for the project should look like. for example, right often to in boseman of management consultants in the design and development of management system. so forms of management among the costs that spiraled was spending on b, c, g, which built the hospital around $25000000.00. despite the negative headlines, the director of the hospital and then operations manager was originally a, b, c,
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d consultant. eventually step down, the board was exchanged, the case shows the potential pitfalls of relying on consultancies for change and the innovation. we tend to look to government to fail and business to do right and strangely that's, that's not immediately obvious when we have that challenge, instead of having as the kind of default default, oh, we should tend to use management consultancies to help to help us innovate. well, what would it mean and set you to look english to the capabilities and the knowledge that exists within the health care professionals working in the sweetest health care system and use them and harness them really as the kind of drive of innovation was in the health care system. the cd declined to give a comment saying their work falls under confidentiality agreements. researching the covenants got case made me wonder if out sourcing government work to private companies can be problematic. how come it's experience such a boost to experts?
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i spoke to see that governments are in a kind of vicious outsourcing cycle of reliance or dependence on consultancies to deliver critical and important tasks by government has the effect of undermining the ability of public sector organizations and services to load and adopt a to time in response to involving talent is that governments all set top to meet the examples we've looked at so far, so that no matter which country or sector mckenzie and basic j seem ubiquitous, it's part of what gives them expertise. not just when dealing with rivaling countries take the sustainability business. for example. it's booming and consultancies have placed themselves at the center of it. in 2021, mckinsey bought 3 sustainability, consulting fees, and b, c. g was the official consulting partner of the un climate change conference. on the one hand, consultancies have less big marks and the sustainability sector. like the gas cost
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curve that mckenzie came up with and helps figure out the most efficient ways to cut greenhouse gases on the other side. and then we'll say providing advice on how to, for example, expand contracts in, in and whitening gas. mackenzie has advised, at least 43 of the worlds, 100, the biggest polluters, according to the new york times b. c. g is also in the business. consultancies aimed to maximize their clients. profits. pushing for dekalb innovation could be a conflict of interest. a few years ago, mackenzie's work for fossil fuel class even sparked a rebellion within his own ranks. more than a 1000 of the firms employ you signed an internal letter of warning that hour and action on, or perhaps assistance with client admissions poses serious risk to our reputation. there's another reason the critics are raising their eyebrows at climate consulting . the kind of growing in both been of consultancies in climate policy and income.
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the government governor's may actually, uh, you know, because it, you a form of green washing that enables governments, ample edition. and that also, you know, companies in, in, in the private sector as well. to present the picture that they are pursuing climate goals that they are pursuing images reductions when they are not. in fact, gaming like from the australian government contracted mckinsey, to help develop it's planned to reach net 0 emissions by 2050 australia is one of the largest exporters of coal and natural gas. and it's government at the time didn't place climate protection high up on this agenda. mckenzie had been contracted to development of the analysis and it was subsequently pointed out that today the strategy of the plans that had been laid out in this in this report would
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not enable the government to get to not see right by 2050. and then there are lots of holes in, in, in the report that was a big reliance on the development of technology that didn't know and the voting out was technology that do not exist yet. rosie also criticizes, but the report place to own us on farmers rather than on mining companies to become more sustainable. in the case of australia, isn't there a strategy? it was no, i need that the government was, you know, perhaps, ideologically or politically less interested in the few of the company try to get the time. but to say that it was keen to protect existing sources of growth within the economy. at the beginning of this report, i asked what role consultancies are applying for governments around the world? the experts i spoke to painted a fragmented picture. what became clear is that management consultancies are everywhere,
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and they are unchecked. whether they are advising the sovereign wealth fund of saudi arabia, us immigration, office, oil and gas for the un climate conference. since they're not actually a profession, they don't actually suffer from malpractice, so in a true profession, you can be disbarred, or you can be disqualified. the consulting firms don't have a legal code of ethics that they have to live biased, their global expertise as part of what makes them so sought after but advising all parties at the table can also create conflicts of interest. if you're working for a government ministry, helping that government ministry more efficiently be authoritarian. how is that not political proponents of outsourcing, se consultancies makes the public sector for efficient. and there are certainly many positive examples like mackenzie helping to set up education centers for refugees and 11 on are busy, busy working with the world health organization to control the bold outbreak in
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west africa. but the examples in this video also show that what checks out on a spreadsheet doesn't always work when people are involved. years not left with the consequences of the decisions that you're making. we tend to look to government to fail and business to do right and strangely that's, that's not a big deal or not. it's a trend that could be difficult to reverse the the
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the environment magazine, the co op next on p w. look, the environment trends. technologies come is digitalization, stall, tops, new market, new media. the world is accelerating these, the opportunities to try new things. take flights with the that we use business magazine, aid in germany, in 60 minutes on d w, the why do, how many does not get drunk? why do go to the tasteful waves, squeeze all bodies? how much do we need to put
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a stop comp claim for help find the on fis gets much on dw science out. take talk, tenant of the service center. the 2023 loans has a terror attack. on its way and it is the bloody estate in the history of the 2 is states and the beginning of the war and got the one year there's a week 7 the backgrounds of the attack. how could it happen? what role did his riley and palestinian work from the hosp a bite inside each of the 2 sides has no empathy for the suffering of the other because both sides have suffered a terrible historical trauma. the her mazda attack also changed 10 of these in some of the 2023. israel's biggest city was a policy hotspots, but then october 7th can focus on
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one year as well from us will. starts october 5th on d, w. the, you know, one of the things i love a ballpark show is discovery and stuff. the blow ideas and innovations to help communities and the planet also hold there. so many of them i'm, that's always inspiring. i am christa lives in legals by jerry a great to have you with us here. so it's coming up all digital technology is making a real difference. the small folder from us any soup you.
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