Donors’ mixed aid performance for 2010 sparks concern

Aid to developing countries in 2010 will reach record levels in dollar terms after increasing by 35 per cent since 2004. But it will still be less than the world’s major aid donors promised five years ago at the Gleneagles and Millennium + 5 summits. Though a majority of countries will meet their commitments, the underperformance of several large donors means there will be a significant shortfall, according to a new OECD review.

Africa, in particular, is likely to get only about USD 12 billion of the USD 25 billion increase envisaged at Gleneagles, due in large part to the underperformance of some European donors who give large shares of official development assistance (ODA) to Africa. Eckhard Deutscher, Chair of the DAC, noted that: ”Aid has increased strongly as 16 donors have honoured their commitments. But underperformance by the others, notably Austria, France, Germany, Greece, Italy, Japan, and Portugal, means overall aid will still fall considerably short of what was promised. These commitments were made and confirmed repeatedly by heads of governments and it is essential that they be met to the full extent.”

Commenting on the figures, OECD Secretary-General Angel Gurría said: ”It is reassuring that most donors are recognising their international responsibilities. As we head into new rounds of discussions about funding climate change and food security concerns, I encourage all donors to carry through on their development promises.” Source: OECD, http://tinyurl.com/ye8zrej

The EU falls short $19bn on development pledges. Some of the overall shortfall will come from the EU15 – the old, wealthier member states that made the original pledges. EU countries are skipping out to the tune of $19 billion (€14bn) on the aid pledges they made to developing countries five years ago at a landmark G8 meeting, according to the Organisation for Economic Co-operation and Development. Aid to poor countries in 2010 will be lower than donors promised five years ago at the 2005 Group of Eight meeting in Scotland – largely as a result of the economic crisis, says a report published on Tuesday by the OECD, the international club of wealthy countries. With national budgets squeezed in the wake of the crash, many governments believe that charity begins at home.

Max Lawson, senior policy adviser at Oxfam, said: ”These broken promises are nothing short of a scandal. A woman dies every minute in childbirth somewhere in the world because of inadequate medical care and 72 million children remain out of school. The missing $21bn could pay for every child to go to school, and could save the lives of 2 million of the poorest mothers and children.” Source: EU Observer, http://euobserver.com/19/29496

Filed under: Crisis, Development, Economy, OECD

Time to deliver: Challenges of the new EU Commissioner for Development

In a challenge ahead, Europe has two main contributions to make: development policy thinking and development aid delivery. Development policy is a key part of the ”Europe 2020” vision presented by president Barroso. In particular, as we look ahead to a ”global Europe”, it is in times of development challenges that the EU can become a champion of global governance – challenges which include world economic recovery, climate change, migration, food security and making progress towards the Millennium Development Goals. The Commission is already exploiting its expertise in development and strengthening the link between development policy, researchers, national authorities and civil society. To meet the Millennium Development Goals, the EU must implement its plans for greater coherence between policies in different sectors (”policy coherence for development”) and make aid more effective by coordinating the Commission (EuropAid) and 27 EU countries in one cogent effort to tackle poverty worldwide.

The EU is the biggest aid donor in the world, channelling some 60% of total official development assistance to Asia, Pacific, Middle East, Africa, Caribbean and Latin America ( €49bn in 2008, or €100 per European citizen). By improving aid predictability and achieving a better division of labour (the 2 main principles of efficient aid delivery), the EU could minimise the burden on recipient countries and free up resources worth €3-6bn a year (2009 aid-effectiveness study). Helping developing countries recover from the economic slowdown and beyond will be the top priority for the incoming development Commissioner Andris Piebalgs. In times of economic crisis, sustaining financing for development is difficult but crucial for poor countries suffering even more than their developed counterparts. Source: European Commission, http://ec.europa.eu/development/icenter/featured_20100209_en.cfm

Filed under: Development, European Union

Global economic prospects 2010: crisis, finance, and growth

Fallout from the financial crisis will change the landscape for finance and growth over the next 10 years, a new World Bank report concludes. Developing countries facing higher borrowing costs, lower credit levels, and reduced international capital flows. 2010′s Global Economic Prospects report examines the consequences of the financial crisis on both the short- and medium-term growth prospects of developing countries. Although global growth has resumed, the recovery is fragile, and unless business and consumer demand strengthen, the world economy could slow down again. It concludes that the financial crisis has taken its toll on achieving the 2015 poverty Millennium De­velopment Goal (MDG). Newly updated World Bank estimates suggest that the crisis will leave an additional 64 million people in extreme poverty in 2009 and some 50 million in 2010 relative to a no crisis scenario. Source: ELDIS, http://siteresources.worldbank.org/INTGEP2010/Resources/GEP2010-Full-Report.pdf

Filed under: MDGs, Poverty

Key development challenges facing the Least Developed Countries

A new approach is necessary if the world’s most poverty-stricken countries are to escape their predicament, speakers said this afternoon in opening a two-day UNCTAD meeting of experts, which aims to spur ideas for 2011 conference on Least Developed Countries. UNCTAD Secretary-General Supachai Panitchpakdi said experience has shown that outside efforts to help LDCs must focus more on enabling them to diversify their economies — to be less dependent on raw materials or agricultural commodities, ”on copper, on cocoa, on coffee.” Enhancing such economies’ ”productive capacities” offers hope that these nations can make steady progress and be less vulnerable to external shocks, such as the global recession and the natural disasters that recently struck Haiti and Samoa, Mr. Supachai said. ”Some countries had been successful in diversifying their economies, in creating jobs, in improving governance,” Mr. Supachai said. ”We should be able to learn from lessons past so that things will be better in the future.” He added: ”We should be looking at ways of making LDC status a temporary status.” http://tinyurl.com/ydkunn7

Filed under: Development, Poverty, Trade

Much «clean» growth possible in developing world with existing technology, right strategy and incentives, UNCTAD Report says

The stress of the global financial crisis — as well as concerns about climate change and food prices — should be used by developing countries to shift towards ”clean” growth, a new UNCTAD report recommends. It says such progress is possible and affordable with existing technology, based on the right strategy and incentives.

UNCTAD’s Trade and Environment Review TER 2009/2010 contends that while conventional wisdom holds that economic crises are times for belt-tightening and cost-cutting, the opposite is true in the current case. The urgency of the crisis gives governments of the world’s poorer nations the chance to re-direct resources to economic growth that is more economically efficient, better for the environment, more socially equitable, and more promising over the long term.

Because so little has been done in such nations, the TER notes, huge gains can be realized in improving energy efficiency, enhancing sustainable agricultural methods, and stimulating the use of rural, ”off-grid” renewable energy. If approached intelligently, such improvements should yield savings that pay for themselves or even generate quick profits. In addition, shifting to ”clean” growth should create jobs, the report says. But to make this progress happen, governments must eliminate market barriers and policies that prevent the flow of capital into these promising sectors.

The study maintains that large improvements in energy efficiency can be achieved in many low-income and least developed countries ”at negative net cost.” For example, efficient building technologies may be applied using local materials, in many cases reducing heating and related costs. Similar opportunities exist in sustainable agriculture, opened up by alternative production methods, developments in technology, and changing consumer preferences, the report says. http://tinyurl.com/y8zakry

Filed under: Development, Environment

OECD establishes tax and development task force

With developing countries and other key stakeholders – including NGOs and business – as members, the Task Force will develop clear and effective mechanisms to make progress in the field of tax and development. It will convene in early 2010 as an informal group representative of all stakeholders, to develop clear and effective mechanisms for implementation and avoid duplication. The informal Task Force will begin by mapping out existing international efforts relating to tax and development. http://www.oecd.org/dataoecd/7/36/44493096.pdf

Filed under: Development

ADB Strengthens Business Processes to Boost Quality, Responsiveness of Work

ADB has begun implementing sweeping new changes to the way it does business to improve the quality and responsiveness of its work. Starting this January, business processes are being streamlined to make them more efficient, to lower transaction costs, and to enable ADB to respond swiftly to client needs. The improvements will help ADB realize the development goals laid out under its long term strategic framework, Strategy 2020, in order to achieve its overarching vision of a region free of poverty. http://www.adb.org/article.asp?id=13133

Filed under: Development, adb, Asia, business, consulting, Development, finance

Karsten Weitzenegger joined the International Public Management Network (IPMN)

Today I joined the International Public Management Network (IPMN – http://www.ipmn.net). The purpose of the IPMN is to create and sustain a dialogue on emerging management concepts, methods and technology so that members and I can learn about innovation and change in public sector organizations throughout the world.

The network’s mission is to further the international and interdisciplinary discourse about public management issues. To satisfy this mission, IPMN convenes its members in annual conferences and workshops and publishes selected papers presented at these events in a book series, the International Public Management Journal, and the International Public Management Review online.

IPMN also provides a website that includes the membership directory and a number of services to members, and a list server to permit rapid information flow among members. IPMN seeks to facilitate exchange and cooperative work among its members. Opportunities include visiting lectureships and other speaking opportunities, scholarly visits to members’ institutions, joint research and consulting projects, pooled funding for research. The hub is based at the University of St. Gallen, Switzerland.

Filed under: Development, Networks, Research, Governance