By Edward Oyugi*
Though a major plank in the Monterrey consensus, harmonization and coherence in aid policy coordination, has its origins in earlier discourses – dating back to the ministerial declarations that saw the trade negotiation process succumb to the manipulative hegemony of neo-liberalism in multilateral politics. Policy coherence is naturally more complicated than taken for granted, particularly in cases where national policies are significantly influenced at supranational level; where any deficit in negotiation capacity can play havoc with the respective economies. The key elements of the current coherence agenda include: supporting the Doha work program (liberalization in goods, facilitating the dominance of pliable political authority systems in the name of good governance, services, and investment), capital account liberalization and channeling increased investment to developing countries.
In a world where neo-liberal orthodoxy is arrogating to itself the claim of universal application - as a frame of reference- and multi-lateral/bilateral behavior -regarding the way relationships between the powerful economies of the North and the Global South have been established- grossly antagonize the subaltern development needs of poor economies, harmonization and coherence can mean a reuse of uniformity behind which lark the insidious face borderless neo-liberal capital. There is no way efficiency and effectiveness can be enhanced through increased coherence within and across aid, trade, and investment policies which feature awkwardly in the donor-recipient relationship and which end up pitting the poor economies of the Global South against the neo-liberal interests of the hegemonic North.
There is no doubt that aid conditioned upon liberalization in trade, investment, procurement and asymmetrical removal of subsidies will lack policy coherence, particularly in circumstances where the aid recipient’s economies are ill-disposed towards the hegemonic demands of neo-liberalism as a framework not only of discourse but more dangerously in the realm of policy action. We now know, with unwavering certainty, that the magic bullet of Harmonization/Coherence agenda is not so much about efficiency and effectiveness as about creating new rights and privileges for corporations at the expense of the poverty alleviation in the Global South.
If harmonization is not to become a slippery slope to cartelization it must be internal to a national or regional political economy and not across conflicting economic interests. This could be the reason why the Indian Minister of Commerce Murasoli Maran warned that "we should be careful that in the name of coherence we do not create a networking behemoth which puts pressure on developing countries through cross-conditionality."
*Edward Oyugi is the Executive Director of Social Development Network , an NGO based in Nairobi and a member of the Social Watch movement and a member of the International Council of the World Social Forum. He also teaches Psychology at Kenyatta University, in Nairobi- Kenya.
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South Centre, September 2008
This Issue of the South Bulletin reflects upon the Third High Level Forum on Aid Effectiveness that took place in Accra, Ghana from 2-4 September and prepares its readers for the upcoming Monterrey review conference on Financing for Development that takes place in Doha, Qatar in end-November.
On its editorial article Yash Tandon reflects upon the Third High Level Forum on Aid Effectiveness that took place in Accra from 2-4 September 2008 - the follow-up and evaluation of the Paris Declaration. He states that the present chaotic situation of the aid industry is a better option for the poor countries than the anticipated order of the AAA, while the best option is to get out of aid dependence.
Analysis and commentaries appearing in the Bulletin, include on Enhanced Financial Mechanism for UNFCCC: The G77 Proposal; Financing for Development from Monterrey to Doha; Keeping Developing Countries Hooked on the Aid Drug; Food Crisis in India; and Let us not Build the EPA in the Graveyard of Regionalism.
Interview with Antonio Tujan Jr.
[Introducction]: Ahead of the UN’s Financing for Development Review Conference in Doha, Antonio Tujan Jr. of the IBON Foundation, a non-governmental organisation based in Manila, assessed donors’ track record in an interview with Hans Dembowski. He demands more policy space for the governments of developing countries, and urges donors to expand debt relief.
To read the full interview, click here
By Yash Tandon
While the governments of rich nations want to streamline their global-development efforts in the OECD context, those of many developing countries are less enthusiastic. Some experts even view the Paris Declaration on Aid Effectiveness (PD) as a document of new colonialist aspirations, and doubt the OECD High Level Forum in Accra in September will achieve much good.
Along the article, Yash Tandon exposes the resons why developing countries are not at all exited about the PD. He stresses that while at first glance, the PD looks benign, underlying the PD could be another agenda not readily transparent at first reading
To read the full article, click here
By The Advisory Group On Civil Society And Aid Effectiveness
This report presents the outputs of the Roundtable 6 (RT6) that took place on the second day of the High Level Forum of Aid Effectiveness (HLF) that took place in Accra, Ghana, in September 2008. It was to build upon the work of the Advisory Group on Civil Society and Aid Effectiveness (AG-CS) and was attended by an estimated 150 participants with approximately 55% CSOs, 25% donors, and 20% developing country governments.
The AG-CS, as a multi-stakeholder group reporting to the Working Party on Aid Effectiveness, led an extensive consultation process, analytical work, and case study work in the 18 months preceding the Accra HLF.
To read the full report, click here
By By Henri Valot, CIVICUS
[Introduction]: Doha , Qatar will be soon again centre of attention for those of us working on development cooperation issues. It will host the upcoming “Follow-up International Conference on Financing for Development to Review the Implementation of the Monterrey Consensus” from 29 November to 2 December 2008 , which will be immediately preceded by the Doha Global Civil Society Forum from 26 to 27 November 2008 .
Doha is sadly known for having its name attached to the WTO Doha Development Round, the current trade-negotiation round of the World Trade Organisation (WTO) which commenced in November 2001. Its objective was to lower trade barriers around the world, which would allow countries to increase trade globally. As of 2008, talks have stalled over a divide on major issues, such as agriculture, industrial tariffs and non-tariff barriers, services, and trade remedies. Major negotiations are not expected to resume until 2009.
To read the full article, click here
By Peter Nunnenkamp
In this article, the author replies to Kishore Mahbubani’s article -The myth of western aid- by stressing that it is easy to lament the stinginess and selfishness of official donors. At the same time, he points out that there is also a myth around the performance of Non Guvernamental Organisations (NGOs).
’While donors provide critics with the data needed to expose the flaws of official development assistance (ODA), it is different with NGOs. Their aid is certainly relevant, but its allocation has hardly been mapped, let alone explained. The main reason is that sufficiently detailed data are hard to come by. After all, NGOs probably do not want critical analysis to tarnish their image of being superior donors.
Recent research suggests that non-governmental organisations (NGOs) do not provide better targeted or more efficient aid than state-run development agencies. They do not seem to even try to outperform the latter by focussing on the neediest or by working in particularly difficult environments.’
To read the full article, click here
By Kishore Mahbubani
Executive Summary: The story of Western aid to the Third World needs to be demystified. Western populations almost universally believe that the story of Western aid is of massive transfers of aid to poor Third World countries for purely altruistic reasons. They know that much of this aid has not resulted in successful development. But many believe that this is not the fault of the West. It is true that there is a huge scandal of corruption on Western aid that is waiting to be exposed. However, if and when this story is fully exposed, it is the West that will be deeply embarrassed. The full story will show that the wide-held belief of altruistic Western aid is nothing but a myth.
To read the full article, click here
The road to Doha newsletter
In preparation for the Follow-up International Conference on Financing for Development to Review the Implementation of the Monterrey Consensus (Doha, Qatar 29 November - 2 December 2008), two half-day hearings, one with civil society and the other one with the business sector, were held on 18 June 2008 in New York. The hearings took the form of a series of presentations by the panelists followed by an interactive debate on the six thematic areas of the Monterrey Consensus, as well as new challenges and cross-cutting issues.
The main outcomes of both hearings can be found in this issue of ‘The road to Doha’ newsletter.
To read the full article, click here
Interview with Eckhard Deutscher
The Accra Agenda for Action (AAA) was the result of a multilateral conference held in the Ghanaian capi¬tal in early September. The “triple A” is meant to speed up the implementation of the Paris Declaration on Aid Effectiveness (PD) of 2005. Eckhard Deutscher, chair of the OECD’s Development Assistance Committee (DAC) discussed the implications of the AAA in an interview.
To read the full interview, click here
