Development Co-operation Directorate: Towards a More Resilient World

TOWARDS A MORE RESILIENT WORLD

DEVELOPMENT CO-OPERATION DIRECTORATE

2

TOWARDS A MORE RESILIENT WORLD

CO-CONSTRUCTING A RESILIENT FUTURE

I

n many ways, the 2020 pandemic has placed us at the doorstep of a new era of development co-operation, similar to the one that led to the creation of the OECD and the Development Assistance Committee (DAC) sixty years ago.

At that point, industrialised countries joined to help other —often newly independent nations’—economies catch up with them by providing finance, technology and knowledge. In 2010, as global wealth noticeably “shifted” from West to East and South, the catching up seemed well under way. In 2020, however, just as slower growth, technological change and rising barriers to trade had started to expose threats, the COVID crisis abruptly cleaved open these gaps, exacerbating global inequalities and pushing dozens of millions of people living in fragile contexts into poverty. The unmet financing needs of developing countries seeking to reach their Sustainable Development Goals increased by at least 50%, to $3.7 trillion. As their richer partners spend trillions to recover and roll out massive vaccination campaigns, they are at risk of being left behind. Anything less than a global recovery will reverse decades of hard-won progress.

Now is the time to act: an ambitious co-operation agenda can help developing economies play their part in a global, sustainable and inclusive recovery, while building health, food, productive and energy systems that meet the needs of their populations and economies in the long run. It’s a hard road ahead, but we have the compass: the unique ambition and universality of the 2030 Agenda and Paris Agreement speak to the undeniable reality that we are only as strong as our weakest, and must work together to co-construct a resilient future.

With that aim in sight, the Development Assistance Committee (DAC) adapted its programme of work to leverage the knowledge and experience of a wider array of policy communities, starting with those that gather under the OECD roof. This approach aims to increase the impact of development co-operation on five pressing policy priorities: (i) mobilising and aligning finance for the 2030 Agenda; (ii) making development co-operation more effective, impactful and inclusive; (iii) preventing and addressing fragility and crises; (iv) tackling poverty and inequalities; and, (v) promoting climate objectives and sustainable natural capital.

The next pages provide a snapshot of how, building on the progress spurred by development co-operation over the last 60 years, we are supporting the DAC in this endeavour over 2021-22, for a truly global recovery, towards a more resilient world.

JORGE MOREIRA DA SILVA Director, Development Co-operation @jmoreiradasilva

MOBILISING AND ALIGNING FINANCE

rof gnic THE 2030 AGENDA n 120FOR 2 tn aniF n o ko em he impactpofo the COVID-19 crisis oltonuthe SDG financing gap of developing countries has been devastating. For them RO to cope with the l e veD O ldevelopment consequences, official assistance (ODA) is indispensable, because it focuses on FT a SEwelfare b e peoples’ and goes where other (private) flows do lban olG not. Yet it cannot fill that gap alone. Global investors can: VNI aligning a T mere 1.1% of the existing USD 379itrillion in global finance with the Goals would be enough. How can more OT atsu E fromAprivate Y of it, especially N investors, reach the people and countries most in need? And in the absence of a universal AW S LP

T

yardstick for sustainable finance, sure that when it does, it actually promotes sustainable development, DNhow can weWmake A E EWeNhelpAbring together development cooperation providers, other policy instead of “SDG-washing”?

LPprivate OE actors to find the answers. communities and

P

Our report, the Global Outlook on Financing for Sustainable Development, leverages the knowledge of several OECD policy communities to analyse global trends and provide recommendations to mobilise, optimise and increase the impact of finance from all sources. The OECD-UNDP Framework for SDGAligned Finance identifies solutions to shift the trillions of dollars available internationally towards more sustainable and resilient investments, especially to least developed countries and small island developing states. We help our members manage the risks of corruption through effective integrity and accountability practices, prevent trade-based illicit financial flows and money laundering.

MOBILISING PRIVATE INVESTMENT The smart use of public resources to shift private investment towards the SDGs in developing countries is a growing priority for development co-operation providers. How can they help global and local businesses enhance their “sustainable development footprint”, while preserving the integrity of official resources? How much do they know about the actual impact of innovative development finance? We work with all stakeholders to track the evidence, and help them create the right incentives in two main areas. Firstly, by promoting actively the implementation of the G7-endorsed OECD DAC Blended Finance Principles, a global standard for using

4

TOWARDS A MORE RESILIENT WORLD

development finance strategically to mobilise additional commercial finance towards the SDGs. Secondly, we have developed global Impact Standards with UNDP to guide investment towards effective sustainable development, enabling the collection of internationally comparable data, and documenting the variety of approaches, instruments and practices. Finally, we support the implementation of the Kampala Principles on effective private sector engagement in development co-operation.

TRACKING FLOWS We help design options for DAC members to support the longterm development of countries transitioning out of ODA, including by securing the progressive growth of other sources of financing, or providing new forms of capacity building and support. Our joint Aid-for-Trade Initiative with the WTO helps donors to align with the strategies of developing countries in leveraging trade for poverty reduction, tracks their support, and shares good practices for developing countries to capitalise on global market opportunities.

WHAT IS ODA? The DAC defines Official development assistance (ODA) as government aid that promotes and specifically targets the economic development and welfare of developing countries.

The DAC adopted ODA as the “gold standard” of foreign aid in 1969. It remains a major source of financing for development aid.

OECD DEVELOPMENT CO-OPERATION DIRECTORATE

5

COUNTRIES REPORTING THEIR DEVELOPMENT FINANCE TO THE OECD Azerbaijan Bulgaria Croatia Cyprus* Estonia Israel ** Kazakhstan

Kuwait Latvia Liechtenstein Lithuania Malta Romania Russian Federation

Saudi Arabia Chinese Taipei Thailand Timor Leste Turkey United Arab Emirates

COUNTRIES FOR WHICH THE OECD PROVIDES ESTIMATES OF THEIR DEVELOPMENT FINANCE Brazil Chile People’s Rep. of China Colombia

Costa Rica India Indonesia

Mexico Qatar South Africa

(**) The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. (*) 1. Footnote by Turkey. The information in this document with reference to « Cyprus » relates to the southern part of the Island. There is no single authority representing both Turkish and Greek Cypriot people on the Island. Turkey recognizes the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of United Nations, Turkey shall preserve its position concerning the “Cyprus issue”.

2. Footnote by all the European Union Member States of the OECD and the European Union. The Republic of Cyprus is recognized by all members of the United Nations with the exception of Turkey.

The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus.

6

TOWARDS A MORE RESILIENT WORLD

STATISTICS: COUNTING WHAT COUNTS

T

here is more to statistics than figures: trusted, comparable and widely available information on the finance underpinning development co-operation is the cornerstone of accountability, and an essential basis for making decisions that affect the lives of millions. As the SDGs make the global agenda more ambitious, however, and the expanding array of actors makes it more complex, providers of development co-operation need a new, more comprehensive compass to guide their investment decisions. We are therefore regularly refining our statistical frameworks for measuring resource flows in support of SDG implementation in developing countries.

UPHOLDING THE INTEGRITY OF OFFICIAL DEVELOPMENT ASSISTANCE (ODA) Supporting the DAC Working Party on Development Finance Statistics (WP-STAT), we continuously develop the Committee’s measurement standards and methods, to ensure high quality and respond to the evolving needs of users.

We hold donors to account, and encourage good donorship, by publishing and monitoring their pledges and disbursements for the long-term development of countries most in need: preliminary ODA figures are traditionally available on our website in April, detailed and comprehensive final data in December. We monitor their commitment to remove legal and regulatory barriers to open competition for procurement funded by ODA, also known as aid untying. We publish detailed, disaggregated figures by countries and regions, and by sectors of development co-operation, for bilateral as well as multilateral development finance.

We constantly improve the accuracy of the DAC statistical system. Where ambiguities arise, e.g. when counting in-donor refugee costs or expenditures linked to peace and security as ODA, we clarify them to ensure uniform, consistent statistical reporting. When innovations take place, like providers using public funds to stimulate private investment, we work with members to ensure the system provides the right incentives: to encourage more and better allocation of concessional resources for the SDGs, while ensuring that ODA goes where it is most needed and has the greatest development impact.

We also help a growing number of providers of development finance outside the DAC to report their data to the OECD, including Arab countries that have been contributing substantial amounts of ODA for decades, and publish estimates on others. We monitor a growing share of private and philanthropic flows and ensure their comparability to official flows.

OECD DEVELOPMENT CO-OPERATION DIRECTORATE

7

FROM MEASURING AID TO MEASURING RESOURCES FOR THE SDGS Official finance from OECD countries is but one of the many types of resources that must be mobilised to achieve the SDGs in developing countries. The international community therefore needs a new international standard for measuring the full array of resources in support of the 2030 Agenda. We are helping the international community develop a measure for Total Official Support for Sustainable Development (TOSSD), through open, transparent and inclusive consultations with the United Nations (UN), experts and civil society organisations, as agreed in the 2015 Addis Ababa Action Agenda.

TOSSD not only measures all official finance flowing into a developing country for sustainable development, but also private resources mobilised through official means (e.g. public–private partnerships), as well as investments in global goods that help the country reach its own SDGs (e.g. fair trade, human rights), and yet are “invisible” in today’s development finance statistics. At the G20 Summit in 2020, TOSSD was referenced in the Financing for Sustainable Development Framework endorsed in the Leaders’ final declaration.

UNDERSTANDING REGIONAL REALITIES Our analytical work is informed by reality on the ground. Here are examples of how we partner with regional actors.

AFRICA We piloted the implementation of the Total Official Support for Sustainable Development (TOSSD) measure with statisticians and policy makers in Burkina Faso, Nigeria and Senegal.

ASIA We worked with our partners in India to draw lessons from the country’s experience of working with civil society in the context of triangular co operation.

THE CARIBBEAN Antigua and Barbuda is one of the four countries where we conducted detailed diagnostics for the landmark OECD report Sustainable Ocean for All. LATIN AMERICA In Brazil, we completed the first in-depth review of how domestic development finance institutions (DFIs) use blended finance for sustainable development and climate action.

THE PACIFIC We analysed the transition challenges faced by small islands graduating from the least developing country (LDC) status through a pilot study of the Solomon Islands.

8

TOWARDS A MORE RESILIENT WORLD

MAKING DEVELOPMENT CO-OPERATION MORE EFFECTIVE, IMPACTFUL AND INCLUSIVE

W

hat works, what does not? In order to support better policies for better lives in developing countries, providers of development co-operation have set international standards and guidelines based on best practice, encouraging a “race to the top” by holding each other to account.

As the custodian of that process, we gather evidence – grounded in the experience of DAC members, non-members and their partners – to guide the improvement of development co-operation, with a view to achieving better development outcomes and contribute to the 2030 Agenda. We support the constant adaptation of development co-operation policies, programmes and systems. Our core and unique working methods include peer reviews, learning exercises and facilitating the work of communities of practice on data for development, results, evaluation and poverty & inequality, as well as strategic partnerships with key global actors.

ENSURING AID WORKS Through a combination of accountability and learning, OECD DAC peer reviews seek to promote individual and collective behaviour change, with a view to improving members’ policies, institutional arrangements, financing and management systems. Peer reviews look at how each member delivers on its development co-operation objectives domestically, at a global level, in developing countries and through broader partnerships, and the extent to which these efforts help achieve its intended results. Each member country is examined by fellow members on an equal basis roughly every five years. Reviews are undertaken on the basis of an explicit and transparent analytical framework. They hold members to account for the commitments they have made, monitor implementation of recommendations from previous reviews, track adherence to OECD and DAC Recommendations and instruments, and recommend actions to improve performance.

OECD DEVELOPMENT CO-OPERATION DIRECTORATE

9

CHARTING DEVELOPMENT CO-OPERATION The Development Co-operation Report (DCR) is the OECD’s leading publication on advancing reforms within the sector.

Every year, it identifies the key trends challenging development co-operation providers and offers practical guidance, drawing from the knowledge and experience of DAC members and partners, as well as from independent expertise.

The DCR also contains verified and comparable individual statistical Profiles of all DAC members and 20 other providers, as well as estimates for ten major countries that do not report their development finance flows to the OECD.

STRENGTHENING EVALUATION PRACTICE AND SYSTEMS Providers of development co-operation evaluate their actions in order to learn from experience, but also for reasons of transparency and accountability. We facilitate the DAC Network on Development Evaluation (EVALNET), monitoring trends and challenges in their systems, promoting good practice and encouraging all actors to collaborate. We focus on innovative approaches, such as the use of smart and big data, ICTs and remote sensing, and lobby for evaluation evidence to inform better decisions by policy makers.

MANAGING FOR BETTER RESULTS The 2030 Agenda for Sustainable Development offers a shared results framework for development co-operation providers and their partners. With in-depth analysis and renewed guidance, we help providers manage for results through multi-stakeholder partnerships, fast-changing development finance contexts and crisis situations. We assist the DAC Results Community in sharing good practices and identifying solutions to common challenges, including with emerging donors and partner countries.

Development Co-operation Report 2020

LATEST REPORTS

LEARNING FROM CRISES, BUILDING RESILIENCE RECOVERY AND RESILIENCE

• Learning from Crises, Building resilience (2020)

• A Fairer, Greener, Safer Tomorrow (2019) • Joining Forces to Leave No One Behind (2018) • Data for Development (2017) • The SDGs as Business Opportunities (2016)

10

TOWARDS A MORE RESILIENT WORLD

st G T A u S IN LTS US SU RE

Applying Evaluation Criteria Thoughtfully

OECD DAC G UIDING PRIN CIPLES ON MANAGING FOR SUSTA INABLE DEVELOPM ENT RESUL TS

M

ore than ev er, developm ent actors ar join efforts an e called upon d maximise to the impact of alongside collective in individual an accountabilit te rventions to Developmen d y and com achieve the is also expe t Goals. The munication Sustainable cted that ap Guiding Prin purposes.

Sustainable plying the ciples on M more efficie It Developmen principles w anaging for nt and harm t Results (M organisations ill lead to on is fS to ed DR m ) re ore collabo help develo navigate co sults system ra pm mplex deve tive approa s, conduciv and human ent organisations ches. As a lopment co e itarian chal result, deve -operation lenges to re will maximis and suppor lopment ach their ex e the effect collective in t sustaina s pe of ct te their individu ed results rventions on ble develo set a rene al and pment effe sustainable benefit of al wed practic ctively. Th developmen l communiti e in results developmen ey es in partner t, to the -based man left behind. t co-operatio countries in agement in n that build cl Developmen uding those s on the M t Results (M anaging for fDR) principl by developm The six Guid es that wer ent agencies e in g en Principles bu dorsed at the intern results in M incorporate ild on the M ational roun arrakech (F principles th fDR principl dtable on ebruary 20 reflect the at have be es and 04). These including th changing co en adopted ne e principles w principles ntext for de since 2004 and the broa for effective velopment agreed in Bu , der set of ac de velopment co co-operatio san in 2011 tors involved to address -operation n . The first direction w , and help or the recurre th re hi e ga le nt pr ni th in ch sa e three othe ciples set th allenges they tions practice. set-up for M rs focus on e have been fSDR. The pr the organisa facing in inciples are tional each princi cl os pl el e should be y inter-relate The Guidin read and ap d, and the others. g Principles plied in conn on Manag Developmen ection with ing for Su t Results ar st e ai na as a reference pirational an ble The Guiding point. They d should se Principles ar guide deve rve as setting up or e accompani lopment or of key elem refining resu ed by a brie ga ni ents to expl sa tions in lts-based m f description that are fit fo ain and he A guidance anagement r the 2030 Ag lp operatio approaches note provid enda for Su nalise them The Guiding in g more info principles ca stainable De .

Principles w rmation on n be applied velopment. ill also help change and how the at the corpor country, prog to support promote a cu ate, portfolio in ra st m itu m ltu tio e re framework and project nal , thematic, of results. W as at the na applicable by levels of inst hile they pr tional level, all developm itutions, as ovide a and private, clarifying th well interdepende ent organisa at any level e co tio nc nc ns, public ies and co epts, identif and across the operatio mprising a a variety of ying will be deve nalisation of se in t of good pr loped in th terventions the Guiding interpreted e short term , actices of tools and Principles sh in the contex . It will show strategies th ould be t of each or depending the variety at countries ganisation, and private on their man , developm and adapte ac to date and or rs ca ent agencies n use. Toge d ganisationa guidance no ther with th l complexity te will form e principles While recogn . a handbook , this based manag ising that de fo r pr ac em titioners of re velopment is ent in develo it is expe sultsa complex un pment co-o cted that peration. dertaking, through ap developmen plying thes The OECD/D t organisa e principles AC Results Co tions will sustainable , mmunity will to the impl contribute developmen share practic ementation better to t results, be effective in es related of the Guid coming mor basis. Guid collecting an ing Principl e efficient an ing Principl d using data es on a regu es will be d for steering evaluation lar subject to and learning in the med an independ , ium term understood ent to assess and used, an ho w th d to what ef ey are fect.

PROMOTING DIALOGUE AT THE HEART OF THE GLOBAL DEVELOPMENT CO-OPERATION SYSTEM Our programme of work supports the United Nations and its agencies in implementing the SDGs and other international commitments such as the Paris Agreement, the Addis Ababa Action Agenda or the Rio Conventions. Governments of developing countries take an active part in our policy dialogues. We constantly source the knowledge and experience of experts from DAC agencies and partner countries, academia, the private sector, and trade unions. We support the DAC Global Relations Strategy, encouraging current and future OECD members to join the Committee, promoting its standards and working with partner countries to facilitate their participation in its activities at various levels. We facilitate policy dialogue on various platforms, such as the Arab-DAC Dialogue on Development or the Dialogue on Development Cooperation between the DAC and Latin America and the Caribbean, and contribute to the work of the G20 and the G7.

FOSTERING TRIANGULAR CO-OPERATION Amongst new approaches, we lay particular emphasis on those where finance providers work together with knowledge providers to respond to the specific needs of a third party. We help to steer the Global Partnership Initiative (GPI) on Effective Triangular Co-operation with data, dialogue and best practices.

ENGAGING CIVIL SOCIETY We facilitate the opening up of the DAC to the scrutiny of civil society organisations (CSOs), notably through the DAC CSO Reference Group. We also document website: oe and analyse the way in which governments .cd/mfs | email: da work with and through CSOsdr on the ground development c.resultsto @oeachieve cd.org | twitter: @ OECDdev results.

OECD DEVELOPMENT CO-OPERATION DIRECTORATE

11

DIGITAL TRANSFORMATION

AND THE FUTURES OF CIVIC SPACE TO 2030

PREPARING FOR THE FUTURE In a fast-changing environment, sustainable development challenges in Africa, Asia and Latin America will be met by learning from others’ experiences, but also by adopting new solutions. Providers of development co-operation themselves must therefore constantly adapt and improve their policies. To help them adopt a forward-thinking mind-set, we analyse the implications of global structural shifts – e.g. growing inequality, urbanisation, climate change or automation. We promote the strategic use of foresight for imagining plausible futures, and build preparedness in and through development cooperation.

Foresight Policy Paper

THE VALUE ADDED TRIANGULAR CO-O Experiences of the EU-LAC Facility for

We document innovation in finance, technology, policies, partnerships and business models, but also in social dialogue and behavioural insights.

We gather evidence, encourage the sharing of innovative policies, tools and practices, and help members track and evaluate the impact of innovation.

We support policy reform in development co-operation, based on specific requests, to help providers respond to the challenges of Agenda 2030. We do so by highlighting options, pooling OECD expertise, and encouraging the sharing of knowledge.

DRAFT February 2020

WORKING TOGETHER FOR DEVELOPMENT EFFECTIVENESS Making development co-operation work is a shared responsibility amongst all stakeholders. The Global Partnership for Effective Development Co-operation (GPEDC) was set up to advance efforts to achieve the SDGs among the broadest possible constituency: aid providers, partner countries, emerging donors, multilateral organisations, local authorities, parliaments, civil society, foundations, trade unions and the private sector. Together with UNDP, the OECD supports them in: • Gathering evidence of what works; • Supporting the implementation of the internationally-agreed principles: country ownership, a focus on results, inclusive partnerships, transparency and mutual accountability to one another; • Tracking progress in the implementation of these principles in its biannual Progress Report

12

TOWARDS A MORE RESILIENT WORLD

INTERNATIONAL STANDARDS FOR DEVELOPMENT CO-OPERATION We support the design of OECD standards and monitor their implementation. They include: • Recommendation of the Council on Environmental Assessment of Development Assistance Projects and Programmes (2020) • DAC Recommendation on Ending Sexual Exploitation, Abuse, and Harassment in Development Co-operation and Humanitarian Assistance (2019) • DAC Recommendation on the Humanitarian- Development-Peace Nexus (2019) • OECD DAC Blended Finance Principles for Unlocking Commercial Finance for the Sustainable Development Goals (2017) • Recommendation of the Council for Development Co-operation Actors on Managing the Risk of Corruption (2016) • Recommendation of the Council on Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High Risk Areas (updated 2016) • DAC Recommendation on Good Pledging Practice (2011) • DAC Recommendation on Untying Official Development Assistance (updated 2019) • DAC Recommendation on the Terms and Conditions of Aid (1978) • The Statistical Reporting Directives: the rulebook on how to report statistics on aid and other resource flows.

• OECD DAC Peer Reviews

OECD DEVELOPMENT CO-OPERATION DIRECTORATE

13

PARTNE N I G N I RSH RK O W IPS Development co-operation supports partner countries in a wide array of areas and sectors. We leverage the expertise and networks of all OECD policy communities to ensure our members get the best support available. We also co-create standards with them, making the OECD’s global impact more than the sum of its parts.

DEVELOPMENT ASSISTANCE COMMITTEE (DAC)

GLOBAL PARTNERSHIP ON EFFECTIVE DEVELOPMENT CO-OPERATION (GPEDC)

Policy areas: Education Environment Corruption & Integrity Finance Investment Global relations Governance Green Growth Migration Tax Trade

DEVELOPMENT CO-OPERATION DIRECTORATE (DCD) DEVELOPMENT CENTRE AND SAHEL & WEST AFRICA CLUB (SWAC)

MULTILATERAL ORGANISATION PERFORMANCE ASSESSMENT NETWORK (MOPAN)

Well-being TRADE UNION ADVISORY COMMITTEE (TUAC)

14

BUSINESS AT OECD (BIAC)

TOWARDS A MORE RESILIENT WORLD

UNHCR

UNITED N AT ION

OTHER PRO VID ER

S

S

LATIN AMERICA & CARIBBEAN

The United Nations is where shared solutions are found to global common problems. We help the OECD play its part by contributing our unique data, expertise, processes and products, often co-creating them with UN bodies. We also partner with the WTO to track aid-for-trade.

UNOSSC

UNDP

Providers outside the DAC account for a growing share of development co-operation worldwide.

We support mutual learning as well as the sharing of standards and knowledge between them and our members.

WORLD TRADE ORGANIZATION (WTO)

UNCDF

EFFECTIVE INSTITUTIONS PLATFORM

ECOSOC

DEVELOPMENT FINANCE INSTITUTIONS

IFIs play an essential role in mobilising and allocating resources for development.

We share evidence, consult and associate them in all aspects of our work.

WORLD BANK IMF

MULTILATERAL DEVELOPMENT BANKS

OECD DEVELOPMENT CO-OPERATION DIRECTORATE

N

IONS ITUT ST IN

TIONAL FINAN A N CIA R TE L N I

ARAB DONORS

GLOBAL PARTNERSHIP INITIATIVE ON EFFECTIVE TRIANGULAR CO-OPERATION

ATE ACTORS T S ON

PRIVATE SECTOR

DAC COMMUNITY OF PRACTICE ON PRIVATE FINANCE FOR SUSTAINABLE DEVELOPMENT

Development outcomes are shaped by a wide variety of non-state actors. We engage with them in a systematic and structured manner to gather input, broker dialogue and partnerships with our members, and co-produce policy guidance.

CIVIL SOCIETY DAC CSO REFERENCE GROUP

PHILANTHROPIC FOUNDATIONS

15

PREVENTING AND ADDRESSING FRAGILITY AND CRISES

C

rises & fragility adversely affect the lives of millions, displacing individuals, devastating livelihoods and destroying opportunities for prosperity. People in fragile contexts will suffer the most from the consequences of the pandemic, as they erode already-challenged health systems, government structures and social safety nets.

We support the work of the International Network on Conflict and Fragility (INCAF) of DAC members and multilateral agencies to meet the needs of affected populations in a more sustainable manner.

FOSTERING COHERENT ACTION We track and measure humanitarian financing in order to ensure that funds flow when, where and how they are most needed. We support stronger coordination, financing and programming by all actors, notably trough the implementation of the DAC Recommendation on the Humanitarian, Development and Peace Nexus.

FACILITATING INFORMED DIALOGUE AND DECISIONS Our online States of Fragility platform is the global “one stop shop” for policymakers, practitioners, and researchers, providing them with aggregated data and fresh research, based on the OECD multidimensional Fragility Framework.

It also monitors the financial resources to fragile and crisis contexts, capturing the scope, scale and trajectory of investments in crisis/conflict prevention and peacebuilding.

16

TOWARDS A MORE RESILIENT WORLD

RESPONDING TO COVID-19 In the Spring of 2020, as the DAC set to support developing countries in meeting the unprecedented challenge of the pandemic, we started a special series of over 20 papers to inform its members’ policies on issues such as debt relief, recovery in fragile contexts, vaccine equity, the role of women, the blue recovery in Small Island Developing States, and more. We documented their innovations and financial efforts in our Development Co-operation Report, pointing also to the lack of a real-time coordinating body. And we helped set up a COVID-19 Global Evaluation Coalition amongst providers, drawing lessons from a fresh round of evaluations and reviews.

Building on those, we are applying a systemic crisis lens to our work throughout the biennium, and strengthening the foresight capacity of members to help them: • Promote global public goods such as health security • Support equitable and affordable access for all to vaccines, therapeutics and diagnostics • Support innovation in partner countries • Design a crisis co-ordination mechanism • Mobilise ODA and other finance to support a green recovery in oil-dependent countries • Address the rise in autocratisation, oppression of women and repression of civil society exacerbated by the pandemic.

OECD DEVELOPMENT CO-OPERATION DIRECTORATE

17

TACKLING POVERTY AND INEQUALITIES, ACHIEVING GENDER EQUALITY, AND ENABLING INCLUSIVE GOVERNANCE IN ORDER TO LEAVE NO ONE BEHIND Leaving no one behind is a radically new level of ambition for governments and societies worldwide, for it implies that the Sustainable Development Goals will only be achieved if they deliver results for everyone, and especially the furthest behind, including – among others – socially and economically marginalised groups, LGBTQI, indigenous peoples, religious minorities, and persons with disabilities. Delivering on this central promise of the 2030 Agenda challenges providers of development co-operation to mainstream inclusiveness, universal access and equality of opportunity across their activities. With data and analysis, we facilitate their community of practice on poverty & inequality, and help them identify who is furthest behind and where, track progress and monitor the allocation of finance to the countries and sectors where needs are greatest.

PROMOTING GENDER EQUALITY Empowering women means improving their lives, as well as breaking down barriers that prevent them from making the world a better place for all. The DAC Network on Gender Equality (GENDERNET) is the only international forum where gender experts from development co-operation agencies meet to define common approaches, influencing key policy frameworks such as

18

TOWARDS A MORE RESILIENT WORLD

the SDGs or the outcome of the Third International Conference on Financing for Development. We help the network make the most of their investments to strengthen gender equality, uphold women’s rights and promote women’s economic empowerment.

IMPROVING GOVERNANCE Strong governance mechanisms and practices are essential for the effective delivery of public services, and for ensuring citizens are able to hold their governments accountable in meeting their development goals. We help the DAC Governance Network (GOVNET) of practitioners support countries’ efforts to curb inequalities and exclusion; develop responses to major trends such as rising authoritarianism, threats to democracy and human rights; and fully grasp the consequences of digitalisation. We act with UNDP as the secretariat of the Effective Institutions Platform (EIP), an alliance of over 60 countries and organisations that support country-led and evidence-based policy dialogue, knowledge sharing and peer learning on public sector management and institutional reform.

OECD DEVELOPMENT CO-OPERATION DIRECTORATE

ENDING SEXUAL EXPLOITATION, ABUSE, AND HARASSMENT Adopted on 12 July 2019, the DAC Recommendation on Ending Sexual Exploitation, Abuse, and Harassment in Development Co-operation and Humanitarian Assistance sets out the first international standard in this area.

Over the 2021-22 biennium, we are actively supporting its implementation by governments across national aid agencies, and the wider international community, when working with civil society, charities, and other bodies running development programs or delivering humanitarian aid.

19

PROMOTING CLIMATE OBJECTIVES AND SUSTAINABLE MANAGEMENT AND USE OF NATURAL CAPITAL

D

eveloping countries are particularly vulnerable to environmental degradation and the impacts of climate change.

Yet tackling the trade-offs between environmental goals and economic and social priorities is a daunting challenge for policy makers, who often work under stark financial and technical constraints. International cooperation provides them with vital additional resources, capacity and knowledge in their endeavour. We support the DAC Network on Environment and Development Co-operation (ENVIRONET) in integrating sustainable development smartly into all aspects of members’ work, putting the well-being of people at the centre.

MANAGING NATURAL CAPITAL The expansion of ocean-based sectors is an opportunity for developing countries to accelerate progress towards their SDGs. We gather evidence and good practices to help DAC members and their partners grow sustainable ocean economies, through the conservation and sustainable use of natural capital.

20

TOWARDS A MORE RESILIENT WORLD

SUPPORTING GOVERNANCE Adapting to climate change requires an all-of-government approach, based on sound expertise and lessons learnt across the globe. To that end, our evidence-based research and policy guidance informs development co-operation in Small Island Developing States and climate-vulnerable contexts.

GREENING DEVELOPMENT FINANCE International efforts to green financial systems too often pass developing countries by, for lack of capacity and consistent support. Leveraging the OECD Centre on Green Finance and Investment, we provide evidence, analysis and recommendations for the DAC to fill the gap in collaboration with other financial actors.

PROMOTING SUSTAINABLE GROWTH Promoting more sustainable and inclusive growth is at the top of the agenda of developing countries, and is a global priority. By influencing the incentives of private investors, development finance can make a difference. We facilitate the dialogue between donors and business in support of private sector engagement, quality investment, and job creation in more sustainable economies.

OECD DEVELOPMENT CO-OPERATION DIRECTORATE

21

THE DEVELOPMENT ASSISTANCE COMMITTEE (DAC)

T

he OECD Development Assistance Committee is a unique international forum of many of the largest providers of aid, including 30 Members. The World Bank, IMF, UNDP African Development Bank, Asian Development Bank and Inter-American Development Bank have observer status. The Committee became part of the OECD by Ministerial Resolution on 23 July 1960.

Its overarching objective for the period 2018-2022 is to promote development co-operation and other relevant policies so as to contribute to implementation of the 2030 Agenda, including inclusive and sustainable economic growth, poverty eradication, improvement of living standards in developing countries, and to a future in which no country will depend on aid. To that end, the Committee sets development co-operation standards, monitors official development assistance (ODA) and conducts regular peer reviews of its members.

At its October 2017 High Level Meeting (HLM), the DAC agreed a vision to respond to new and evolving realities of development, emphasising its core strengths: • Being the guardian of the integrity and definition of ODA and monitoring its flows as well as other official and private flows; • Setting standards for providers’ engagement in development co-operation;

22

TOWARDS A MORE RESILIENT WORLD

• Serving as the forum for Members to hold each other to account for their development efforts; and • Promoting the exchange of views, learning and co-ordination among Members on good practices in development co-operation.

On April 9, 2O2O, as the COVID-19 pandemic unfolded, the DAC issued a statement recognising that the international response “will require much more than finance. It needs sustained action by many actors to address the immediate public health and humanitarian crisis and simultaneous support for economic, environmental and social resilience. The response must take account of the role of women and girls, children, youth and vulnerable groups, including people with disabilities and the elderly, and aim to reduce inequalities and protect human rights and freedoms”.

The OECD Development Co-operation Directorate supports the Committee in its endeavours. We supply technical expertise and help build consensus among DAC members and the wider development community to improve the impact, effectiveness and transparency of development co-operation.

OECD DAC MEMBERS Australia Austria Belgium Canada Czech Republic

Denmark European Union Finland France Germany

Greece Hungary Iceland Ireland Italy

Japan Korea Luxembourg Netherlands New Zealand

Norway Poland Portugal Slovak Republic Slovenia

Spain Sweden Switzerland United Kingdom United States

PARTICIPANTS Azerbaijan Bulgaria Kuwait

Qatar Romania

OECD DEVELOPMENT CO-OPERATION DIRECTORATE

Saudi Arabia United Arab Emirates

23

DATA PORTAL

W

e collect, validate and publish data on official and private flows to developing countries. These include Official Development Assistance (ODA), as well as data from a growing number of other provider countries (e.g. Arab donors), multilateral organisations and private philanthropies (e.g. the Bill & Melinda Gates Foundation, United Postcode Lotteries).

This unique and comprehensive dataset is available on-line for free and in multiple formats, such as ready-made tables and charts, dynamic graphics and an extensive online database. Users can access data by theme, country or sector, and drill down to the information by individual aid activity (microdata).

http://oe.cd/fsd-data

24

TOWARDS A MORE RESILIENT WORLD

OECD Development Co-operation Peer Reviews

PUBLICATIONS

UNITED KINGDOM 2020

Development Co-operation Report 2020 Global Outlook on Financing for LEARNING FROM CRISES, Sustainable Development 2021 BUILDING RESILIENCE RECOVERY AND RESILIENCE A NEW WAY TO INVEST FOR PEOPLE AND PLANET

Aid for Trade at a Glance

DAC Guidelines and Reference

Multilateral Development Development Finance 2020Co-operation Working Papers / Development Co-operation Policy Papers

States of Fragility 2020

Multilateral Development Finance

States of Fragility 2020

OECD DEVELOPMENT CO-OPERATION DIRECTORATE

Development Co-operation Report

States of Fragility

OECD Development Co-operation Peer Reviews

Global Outlook on Financing for Sustainable Development

Sustainable Ocean for All

25

PHOTO CREDITS Cargo ship: Avigator Fortuner, ©Shutterstock.com Fishermen set sail with basket boat, Phan Thiet, Vietnam - September 30, 2018: Huy Thoai, ©Shutterstock.com Petals artwork created by S.Coic Geometric shapes art adapted from ©Shutterstock.com Smiling child / HDP Nexus image, ©Shutterstock.com Green beam of light abstract background innovation, ©Shutterstock.com Global Outlook global lines, ©Freepik.com SIDS small island with wave, ©Shutterstock.com COVID Vaccine syringe: chaythawin, ©Shutterstock.com City and data points of light: jamesteohart, ©Shutterstock.com TOSSD artwork, adapted from SDG Global Goals assets, ©United Nations Blue global textured background ©Dreamstime.com Wavy big data Dmytro Vikarchuk, ©Shutterstock.com Coloful country backgorunds low poly world map Maxger, ©Shutterstock.com DCR cover art Resilience, artwork partially adapted from ©Shutterstock.com Garments workers shout slogans as they block a road demanding their due wages during the lockdown amid concerns over the coronavirus disease (COVID-19) outbreak in Dhaka, Bangladesh, April 15, 2020 Zabed Hasnain Chowdhury, ©Shutterstock.com Eval criteria, SDG abstracted artwork, Results art and CSOs. Some artwork adapted from ©Shutterstock, some recreated/manipulated in illustrator with vector art Foresight and Triangluar vector art, ©Shutterstock.com Children and renewable energy wind turbines, ©Shutterstock.com Child in jacket stands against ruins of building as result of war conflict By Ruslan Shugushev, ©Shutterstock.com Young man getting vaccinated, Prostock Studio, ©Shutterstock.com Throwing caps in aid, ©Shutterstock.com Smiling women with cell phone, Monkey Business images, ©Shutterstock.com Protest hand with peace sign, ©Shutterstock.com Ionic column, ©Shutterstock.com SEAH Handprint, ©Shutterstock.com Water wave, Ase, ©Shutterstock.com Purple sky with wind turbines, ©Shutterstock.com Solar panel and puffy white clouds, ©Shutterstock.com Sunlight through trees, Juergen Faelchle, ©Shutterstock.com Lone tree, drought concept, Yupa Watchanakit, ©Shutterstock.com Man with hat and fishing boat, Alex Baluyut,2002 Timor Leste, ©World Bank Photo Library Watercolor globe, ©Freepik.com Big data connections, Have a nice day Photo, ©Shutterstock.com DAC HLM artwork, Swirl, ©Shutterstock.com OECD flags, ©OECD OECD logo at conference center ©OECD People walking on the square MikeDotta, ©Shutterstock.com Colourful lights, ©Shutterstock.com Green forest, Pakhnyushchy, ©Shutterstock.com Construction workers, ©Shutterstock.com Smiling girls, ©Shutterstock.com

This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries.

This document, as well as any data and any map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

26

TOWARDS A MORE RESILIENT WORLD

CONTACT US WEB www.oecd.org/dac www.oecd.org/development www.effectiveinstitutions.org/en www.mopanonline.org EMAIL dac.contact@oecd.org TWITTER OECDdev FACEBOOK OECDdevCoop LINKEDIN oecd-development DEVELOPMENT MATTERS BLOG https://oecd-development-matters.org SUBSCRIBE TO OUR NEWSLETTER www.oecd.org/newsletters OECD DEVELOPMENT CO-OPERATION DIRECTORATE Organisation for Economic Co-operation and Development 2, rue André Pascal 75775 Paris Cedex 16, France

OECD DEVELOPMENT CO-OPERATION DIRECTORATE

27

DEVELOPMENT CO-OPERATION DIRECTORATE