1/27/15 1/27/15

2015 at friendsofeurope.org)

Prepare for a pivotal year for development cooperation. For most of 2015, the focus will be on seeking to define a transformative agenda for poverty eradication and shaping social, economic and environmental development over the next 15 years.Priority attention will be on knitting together a “post-2015” blueprint for poverty eradication and sustainable development which follows on from the Millennium Development Goals (MDGs) of 2000 and the 2012 United Nations Conference on Sustainable Development (Rio+20). Agreement on the “Sustainable Development Goals” (SDGs) is expected at the UN General Assembly in September this year.Consensus on a new set of goals – however long – is important in order to focus minds and ensure more coherence in global development. Even more crucially, however, implementation of the SDGs will demand a broader, more inclusive mindset, more international consultation and certainly more active civil society engagement. Additional resources, renewed attention on updating existing financial tools and instruments and creating new ones will also be needed.As such, the conference on Financing for Development Conference to be held in Addis Ababa in July must be well-prepared, with participants ready to look at traditional and innovative ways to fund growth and development.Also in 2015, a climate change agreement is hoped for at the December COP21 ministerial meeting in Paris. Last but not least, the EU has designated 2015 as its first-ever European Year of Development.Significantly, the 2015 summits are linked. An agreement at the Addis Ababa financing conference will provide momentum for the dialogue on the SDGs which will, in turn, create an impetus ahead of the critical climate talks.A radically changed environmentThe rhetoric in 2000 was impressive. But fifteen years after the adoption of the MDGs, the jury is still out on nations’ record in meeting the eight targets. The headline goal for extreme poverty reduction appears to have been met five years ahead of its target. Significant successes in school enrolment and mortality rates for under-fives have been achieved (albeit at slightly less than target rates). However, progress in meeting other important indicators remains patchy.This time, it’s different. The MDGs were brief, focused, easily understood and communicated – and represented a rare international consensus for development. The SDGs reflect the concerns and priorities of a radically changed world. As EU Development Commissioner Neven Mimica pointed out, “the world is a very different place in 2015 to what it was in 2000. We can no longer focus only on eradicating poverty; today’s challenges are much more inter-related and we have to make sure that we achieve sustainable development in all of its three dimensions: environmental, social and economic.”The SDG consultative process has been long and painstaking. The 17 SDGs and 169 targets agreed by the United Nations Open Working Group and endorsed by the General Assembly last year, represent a global wish list and cover the broad themes of the MDGs – ending poverty and hunger, and improving health, education and gender equality – but also include specific goals to reduce inequality, make cities safe, address climate change and promote peaceful societies. As such, they bring together two frontiers – development and climate – and tackle global public goods problems as well as national obstacles. There’s something for everyone – almost.For purists, the list is too long, the goals too disparate. “What the world needs is a plan of action to replace the Millennium Development Goals. What’s on offer is a shopping list,” according to Kevin Watkins, Director at the Overseas Development Institute. “The 17 SDGs and 169 targets cover everything from the urgent and measurable – eliminating poverty, cutting child deaths, universal provision of education, water and sanitation, and climate stability – to the vaguely aspirational.”Certainly, the goals are going to be much more complex to describe, implement and monitor.On the plus side, however, the SDGs could encourage a more holistic approach to development and offer a chance for more partnerships and collaboration. Crucially, the SDGs will be universal, which means all countries – rich and poor – will be required to consider them when crafting their national policies. This is different from the MDGs, which were applicable to all and marketed as anti-poverty goals for poor countries.Significantly, the adoption of the SDGs goes beyond the pure development agenda. They signal a determination by nations to jointly tackle complex global challenges. The importance of sustainable development will be accepted and highlighted as fundamental. Not least, they will reinforce an unprecedented process of international consultation and commitment at a time when many are sceptical about multilateral cooperation.Global partnership for development.MDG 8 urged development actors to forge a global partnership for development. Turning that ambition into reality means focusing on finding the resources to implement the post-2015 agenda. “Funding is crucial for credibility on climate and post-2015 efforts,” according to UN Secretary General Ban Ki Moon who believes that all public, private, domestic and international funding sources need to be tapped.Public financing and Official Development Aid (ODA) will be central to supporting the implementation of the SDGs. But money generated from the private sector, through tax reforms, and through a crackdown on illicit financial flows and corruption will be vital.Certainly, there will be less ODA to spur implementation. Aid flows look set to stagnate at best, and continue declining in importance to emerging economies. Public-private partnerships will be crucial. New development actors are emerging as an important source of funds for developing countries, especially for the financing of infrastructure. Foreign direct investments (FDI) in emerging countries are on the rise as are impact investments, Corporate Social Responsibility (CSR) activities and philanthropy.Remittances from workers abroad are a huge boon to their countries of origin. Governments are also under pressure to increase domestic resource mobilisation through more effective tax collection and anti-corruption measures.According to Amina J Mohammed, special advisor to the UN Secretary General on post-2015 development planning, “the private sector also has responsibilities and all must work in partnership, within and across sectors,” adding: “Indeed, partnership is critical but means so much more than just collaboration. Partnership is about the integration of visions, values, plans, accountability, resources and knowledge sharing.The world in 2015 will continue to be a difficult and hazardous place. The SDGs are one way of ensuring that the goal of a fairer, more equal and more stable world is kept alive.

9/8/14 9/8/14

Promoting the private sector’s role in development (Originally published 04/11/11)

Official Development Assistance (ODA) from rich industrialised countries to poorer developing nations was once considered pivotal in achieving growth and development. Official north-south financial flows remain a vital factor in the combat against poverty. In the 21st Century, however, the global architecture of development cooperation is changing rapidly.The ranks of official donors now include newly industrialised countries like South Korea and emerging economies such as China, India and Brazil. Significantly also, development cooperation is no longer the exclusive preserve of governments. Private actors have emerged as key aid donors, with private aid – including aid provided by foundations, corporations, non-governmental organisations, and individuals – increasing rapidly over the past decade.In addition to bringing additional capital, these new actors are also injecting fresh know how and innovative ideas into development cooperation. Official and private aid can complement each other and it is increasingly important that official and private donors work together to promote development.The emergence of private actors as a leading source of development assistance is good news. With many Western governments implementing austerity measures, significant cutbacks expected in ODA – making it ever more difficult to meet the United Nations’ 0.7 percent of GDP as aid target - and public opinion in industrialised states grappling with “donor fatigue”, the mobilisation of private sector funds for fighting poverty is significant.The focus on non-state actors has coincided with the emergence of new global challenges such as combating climate change, averting global health pandemics and securing international peace.Taking on these and other tasks requires innovative responses and expertise which can be provided by the private sector. Recognising the added value of private donors, national governments and international development agencies (IDAs) have started to work closely with the private sector to mobilise investments for sectors such as healthcare, water and sanitation, agriculture, and financial services, including microcredit and micro-insurance.Private actors bring in a new dynamic, new money, new approaches and new solutions to key challenges facing developing nations. But private development assistance (PDA) is no panacea – and certainly no substitute for ODA. In fact, private assistance may - in some cases – even undermine the effectiveness and efficiency of the development landscape, thereby impacting negatively on the sustainable development of poor countries.The Development Aid Committee of the Organisation of Economic Cooperation for Development (DAC) is seeking to remedy this by ensuring that the private sector is involved in the debate on development effectiveness.Clearly, given the array of challenges facing donors and developing nations, it is essential that private and public actors in development cooperation work with each other to ensure that assistance is used most efficiently and effectively.Development cooperation actors need to undertake a thorough review of their experiences to date on public-private cooperation to chart a course for the future. They should take a closer look at the potential for synergies and conflicts of interest and evaluate past successes to understand just what works and what does not. This is essential if successful cooperation projects are to be up scaled and replicated.The focus should also be on more information and research, evaluation and transparency to ensure that PDA is subjected to the same rigorous conditions as ODA currently is. Private development assistance actors must find a way to make their efforts sustainable and must ensure the involvement of local actors in the planning and delivery of their assistance.

In keeping with the increased role of the private sector, the debate on aid effectiveness should be enlarged to include “development effectiveness”. Common principles also need to be agreed to promote greater cooperation between the public and private sectors, with the objective of increasing the understanding of the respective contributions towards common development objectives, building on existing initiatives.In partnering with governments and international agencies, private and public donors should agree on common development outcomes and engage with each other in transparent and inclusive dialogues on their priorities.The “revolution” that non-state actors have triggered in international development cooperation, through their individual actions and through coalitions and alliances with other private donors as well as with official aid agencies, is significant. The current aid revolution should therefore be welcomed – but also closely monitored.