Forum for the Future of Aid - Aid effectiveness

Harmonization and Coherence: Where meets Monterrey and Cancun continues Seattle

Wed, 08 Oct 2008 11:46:57 +0100

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 Bulletin: Reflections and Foresights

Tue, 04 Nov 2008 17:41:34 +0000

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.

Internationally coordinated tax regimes

Tue, 04 Nov 2008 17:33:24 +0000

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

Southern discomfort

Tue, 04 Nov 2008 17:28:55 +0000

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

Report from Roundtable 6: The Role Of Civil Society In Enhancing Aid Effectiveness

Tue, 04 Nov 2008 17:23:07 +0000

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

Back to Doha: Financing for Development at stake

Tue, 04 Nov 2008 16:45:48 +0000

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

The myth of NGO superiority

Fri, 10 Oct 2008 17:00:27 +0100

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

The myth of western aid

Fri, 10 Oct 2008 16:57:28 +0100

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

Hearings of civil society and the business sector on financing for development

Fri, 10 Oct 2008 16:53:55 +0100

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

A major step forward

Fri, 10 Oct 2008 16:52:05 +0100

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

Measuring the cost of aid volatility

Fri, 10 Oct 2008 16:22:33 +0100

By Homi Kharas

Executive Summary: Flows of official development assistance (ODA) to recipient countries have been highly volatile and this reduces their value. At macro level, empirical evidence suggests that volatile ODA can negatively impact growth through several channels. At the micro level, volatility can affect fiscal planning and the level and composition of investment. This working paper develops a simple financial metric that policy makers can use to estimate (and reduce) the cost of aid volatility. Unlike other estimates, our measure does not depend on parameter estimates from cross-country regressions, nor on country-specific model simulations.

To read the full article, click here

¿El paraíso en la otra esquina? Reflexiones sobre eficiencia de la ayuda en los países de ingreso medio y ...

Tue, 16 Sep 2008 17:18:47 +0100

... la cooperación entre la Unión Europea y América Latina en el nuevo milenio

Autor: Carlos Santiso

La cooperación para el desarrollo en América Latina se enmarca en el contexto de los contrastes del desarrollo en la región, en particular la perseverancia de la pobreza y persistencia de la desigualdad. Aunque la gran mayoría de los países latinoamericanos tiene grados intermedios de desarrollo, los índices de pobreza y exclusión siguen altos, tanto en términos relativos como absolutos.
Si para mejorar la eficiencia de la ayuda se opta por concentrarla en aquellos países con mayores índices de pobreza promedio, en particular en África subsahariana, entonces, dónde quedan aquellos países con grados de desarrollo intermedio pero con altos índices de inequidad y gran número de pobres?
Este breve artículo tiene un doble propósito. Primero, trata de esbozar una serie de planteamientos sobre lo que significa —para América Latina— ser una región de ingreso y renta intermedios. Segundo, ofrece unas pautas para reflexionar sobre la justificación y eficiencia de la cooperación europea con la región. Empero, es necesario subrayar que la preocupación mayor no reside tanto en la cantidad de recursos suministrados por la cooperación, sino más bien en su calidad, es decir, la eficiencia de la ayuda en países de ingreso medio.

Para leer el artículo completo, haga click aquí

Civil society consultations on aid realities and concerns in the Arab Region

Tue, 16 Sep 2008 16:33:40 +0100

By Ziad Abdel Samad

[Introduction]: Human development indicators place the Arab region in a very modest position compared to other regions of the world. This is mainly due to extended implementation of inadequate national and regional economic and social policies, resulting in distorted allocation of resources. Within this context, the Arab region includes both donor countries, mainly oil-producing Gulf countries, and aid receiving countries including least developing countries.
This article summarise the challenges and concerns that stand out from the civil society organizations’ discussion on the process of aid effectiveness and the Paris Declaration in the Arab region. The discussion took place within the framework of the regional preparatory consultation before the High Level Forum in Accra.

The Accra HLF: good news for aid effectiveness, or a victory for mediocrity?

Tue, 16 Sep 2008 16:29:55 +0100

By Bill Morton

This short article reports on the International Women's Forum, CSO Parallel Forum, and the HLF. It argues that the latter resulted in some good news: the Accra Agenda for Action recognises once and for all that aid effectiveness is not just a matter for governments, and it makes a strong statement on the importance of South-South cooperation. Overall, however, the AAA is a victory for the lowest common denominator, rather than for real change. It demonstrates little improvement on issues that are of great concern to developing country governments and their citizens, including tied aid, technical cooperation, and conditionality.

To read the full article, click here

Poverty, Aid and Corruption

Tue, 16 Sep 2008 16:13:43 +0100

By Transparency International

This policy paper considers key issues in the aid and corruption debate, focusing specifically on abuses that occur in development assistance targeted at poverty reduction. The paper offers recommendations on how to make the most efficient use of development resources in anti-poverty programmes and tackling the supply-side of corruption. It shows how cooperation in multi-stakeholder environments and the decentralization of aid delivery can help avoid corruption-prone settings.

To read the full paper, click here