GLOBAL AID ARCHITECTURE
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1 GLOBAL AID ARCHITECTURE BRICS DEVELOPMENT PARTNERSHIP ADMINISTRATORS MEETING 6-7 AUGUST
2 Aid Flows: Highlights A new world record of USD 135 billion in development assistance was reached in In 2015, net official development assistance flows of the OECD were USD billion DAC member countries and G7 countries provided 72% of total net DAC ODA in 2015, and the DAC- EU countries 56% UK fulfilled its target for the 1 st time of giving 0.7% of its GNI as development assistance
3 Aid Flows: Highlights Of all developing countries, LDCs-both fragile and non-fragile- are the most heavily ODA dependent. For many middle-income countries the relative importance of ODA has diminished significantly. Between 2000 and 2015, net ODA grew (real term) by 83 percent overall, but was unevenly distributed across developing countries. While ODA increased considerably for fragile states its growth was modest for non-fragile states.
4 Sector wise disbursements of ODA (DAC), US$ billion Year Share in Total (%), (2014) 1 Social Infrastructure & Services Economic Infrastructure & Services Production Sectors Multi-Sector / Cross-Cutting Commodity Aid / General Prog. Ass Action Relating to Debt Humanitarian Aid Other Total Source: OECD stat, Note data from Creditor Reporting System 4
5 Broad Developments 5
6 Development Aid Architecture North-South Cooperation Core-Periphery High Level Forums Rome Paris ECOSOC DCF Accra Busan GPEDC South-South Cooperation (Alternate) TOSSD UN SDGs SDG 17 CBDR 6
7 How OECD-DAC Moved? HLFs 7
8 High-Level Forum: Key Issues at Rome and Paris 2003, multilateral development banks and international and bilateral organizations, donor and recipient country at Rome for the HLF on Harmonization (HLF-Rome). Committed to take action to improve the management and effectiveness of aid Paris Declaration sought theoretical support from the Washington consensus Paris Declaration on Aid Effectiveness: Ownership, Harmonisation, Alignment, Results and Mutual Accountability 8
9 High-Level Forum: Key Issues at Accra Southern countries accepted Paris declaration only as a recipient and not as a provider At Accra, members referred to the cumbersome, and even dysfunctional, nature of procedures required by some donors and the urgency of streamlining and simplifying All responsibilities and expectations had been thrust on the recipients and thus violated the promised mutual accountability 9
10 High-Level Forum: Key Issues at Busan Aimed to forge a new partnership that is broader and inclusive OECD-DAC launched a new vision replacing aid effectiveness with development effectiveness Proposed a new paradigm to subsume North- South development flows OECD-DAC countries were keen to set up a new entity called Global Partnership for managing the global aid architecture (GPEDC) 10
11 GPEDC = OECD/DAC + UNDP Post-Busan Interim Group decided for Global Partnership for Effective Development Cooperation (GPEDC) Concerns among Southern providers: Indicators and targets of the GPEDC may gradually become the norm for all However, GPEDC lost momentum as it did not take into account views of Southern partners India, Brazil and China did not participate. South Africa only as recipient. 11
12 What is BRICS View? 12
13 SDGs and SSC Ownership and implementation of the 17 SDGs has to happen nationally for most targets Would not be feasible without cooperation at the global level that facilitates provision of adequate resources and financing as well as technology Global governance architecture on trade, investment, technology and environment has to be appropriately designed to meet the requirements 2030 steers clear of CBDR as it mandates equal ownership of issues by all countries. 13
14 UN Development Cooperation Forum The Development Cooperation Forum (DCF) was a neutral and impartial space that allowed for fresh perspectives and discussions (ECOSOC) Launched in 2007 DCF reviews the latest international development cooperation trends 14
15 Latest from OECD? 15
16 Total Official Support for Sustainable Development (TOSSD) A proposed international measure being developed by OECD-DAC countries Resulting out of previous attempts to bring southern donors into an umbrella accounting mechanism designed by the developed donors Expands OECD-DAC framework to capture all development finance flows 16
17 What is the Game? 17
18 What is the game? Subsuming SSC lexicon under OECD framework Mutual benefit, credit lines for development solidarity and technical assistance Difficult to distinguish SSC/OECD-DAC No mention of Common But Differentiated Responsibilities 18
19 What is the new Instrument? 19
20 What is to be measured? 20
21 What is to be Measured? Assistance from the Non-DAC Members? Get it through recipients under Mutual Accountability Framework? Merge with the N-S Flows Bring out Reports/Spread through Media/CSOs/International Agencies Show how selfish emerging economies are Come on the same table but on the DAC terms 21
22 What should BRICS Do? Cooperate 22
23 Think Do BRICS countries offer a different alternative? If yes, how can BRICS move on with such an idea? How can BRICS especially respond to global efforts by US, UK and other developed nations to dominate the agenda of development cooperation? 23
24 Initiate a dialogue among BRICS on Impact assessment and evaluation UN-led framework should lead the methodological approaches in measuring development cooperation NeST CEDRN/FIDC/ABC (?)/SADPA/Russia 24
25 Thank you! 25
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