Development Co-operation Report 2019: A Fairer, Greener, Safer Tomorrow

Development Co-operation Report 2019

A FAIRER, GREENER, SAFER TOMORROW

HIGHLIGHTS

Preface (9(5<21( *$,16 )520 ,17(51$7,21$/ &2 23(5$7,21 )25 DEVELOPMENT Why co-operate with developing nations?

and the partners of co-operation for GHYHORSPHQW <HW JRYHUQPHQWV VWUXJJOH WR HQJDJH WKHP PHDQLQJIXOO\ WR WHOO WKH complex and politically charged story of coRSHUDWLRQ LQ FRPSHOOLQJ ZRUGV WKDW VSHDN WR DOO JHQHUDWLRQV DQG WR UHVSRQG WR FLWL]HQVČ&#x2020; RZQ DVSLUDWLRQV 7KH 'HYHORSPHQW &R RSHUDWLRQ 5HSRUW

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calls on providers of development co-operation

through development co-operation stem

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we need to demonstrate how development

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co-operation contributes to better lives by

to achieve fairer and more inclusive economic

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growth in our societies without greater global

early childhood programmes that give equal

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more autonomous administrations capable of FUDFNLQJ GRZQ RQ WD[ HYDVLRQ We also need more resolute action by

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the development community to constantly

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changing geopolitical and technological

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Development co-operation cannot create a

confronting the world requires greater

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Citizens worldwide are voicing their

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frustration and challenging leaders to act for

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in wealthier countries where globalisation has

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developing states that face the immediate

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Angel GurrĂ­a

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OECD Secretary-General '(9(/230(17 &2 23(5$7,21 5(3257 ৰৎ৯ৡ $ )$,5(5 *5((1(5 6$)(5 7202552: k 2(&' ৰৎ৯ৡ

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By Susanna Moorehead, Chair, Development Assistance Committee and Jorge Moreira da Silva, Director, Development

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Co-operation Directorate, OECD

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the past decades: extreme poverty and child

rapid transformations of many developing

mortality rates have plummeted while literacy

countries into geopolitical powerhouses

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mean that the old ways of dividing countries

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failed to live up to its commitments in far

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international development co-operation

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to tell stories that fail to resonate with the

both overshadow all other development

public and engage citizens in a meaningful

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strengths while being honest about its

actors involved in sustainable development

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development co-operation is intricately tied to

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demonstrates how development co-operation

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local actors so that they can chart their own

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co-operation is not the only solution to

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we have decades of evidence and a trove

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down on corruption and share stories

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Changing the narrative of development

in eliminating corporate tax evasion and

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stories to gain traction when the media

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agencies need to show in deeds not just in

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questioning as a crisis of legitimacy or

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The impressive progress made by many

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are frustrated about what they perceive

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that not so long ago were themselves poor

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for governments to channel the grassroots

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We can promote a modern story that inspires

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We have to demonstrate that development

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encouraging others to draw on evidence

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the streets to demand action on the climate

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noble clarion call: our pledge to â&#x20AC;&#x153;leave no one

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be honest about the myriad challenges it

Development co-operation has a unique

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role to play in building a better future

development co-operation can help create

because it has the power to provide a helping

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strengths and being nimble enough to

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that development co-operation remains vital

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,7Č&#x2020;6 7,0( )25 $ 1(: DEVELOPMENT CO-OPERATION NARRATIVE ,7Č&#x2020;6 7,0( )25 $ 1(: ] The 2030 Agenda for Sustainable Development and the Paris Agreement DEVELOPMENT on climate change are grounded in the CO-OPERATION NARRATIVE understanding that tackling major systemic problems and the political, economic, social ] The 2030 Agenda for Sustainable and environmental crises confronting the Development and the Paris Agreement world requires co-operation. on climate change are grounded in the ] But the Sustainable Development Goals are understanding that tackling major systemic proving hard to reach. Progress is not fast problems and the political, economic, social enough, we are leaving people behind and and environmental crises confronting the failing to reach the furthest behind. world requires co-operation. ] The North-South divide has given way to ] But the Sustainable Development Goals are a more diverse and heterogeneous world proving hard to reach. Progress is not fast where international inequalities remain, enough, we are leaving people behind and but along a more graduated spectrum of failing to reach the furthest behind. development levels. ] The North-South divide has given way to ] Evolving, persistent and new challenges â&#x20AC;&#x201C; a more diverse and heterogeneous world especially on the social and environmental where international inequalities remain, fronts â&#x20AC;&#x201C; continuously test the development but along a more graduated spectrum of co-operation system and the actors within it. development levels. ] A new, increasingly complex, development ] Evolving, persistent and new challenges â&#x20AC;&#x201C; co-operation system is taking shape. especially on the social and environmental Development co-operation is development needed more fronts â&#x20AC;&#x201C; continuously test the than ever co-operation system and the actors within it. ] At its core, support for international ] A new, increasingly complex, development development is founded on an co-operation system is taking shape. understanding that problems are rarely Development co-operation is needed more contained within national borders. Neither than ever are the solutions to these problems. ] At its core, support for international

] The essence of development co-operation is to support developing countries in their Hŕ˘&#x2026;RUWV WR LPSURYH WKH OLYHV RI WKHLU FLWL]HQV leaving no one behind. ] We need more, not less, co-operation and ] The essence of development co-operation collective action. is to support developing countries in their ] Nations and societies hold the keys to their Hŕ˘&#x2026;RUWV WR LPSURYH WKH OLYHV RI WKHLU FLWL]HQV

own progress. co-operation can leaving no oneDevelopment behind. only help, but it must do it well. ] We need more, not less, co-operation and Callcollective for change of course through new action. words and action ] Nations and societies hold the keys to their ] We must not oversell the role of development own progress. Development co-operation can co-operation but should not shy away from only help, but it must do it well. championing its importance.

Call for change of course through new ] We must play to our strengths and ensure words and action that development co-operation continues to ] We must not oversell the role of development increase our chances of a better tomorrow co-operation but should not shy away from for one and all. championing its importance. ] To get there, development co-operation ] We must play to our strengths and ensure providers need to: that development co-operation continues to ) modernise narratives inspire public increase our chances of ato better tomorrow for support one andand all. trust at home, especially with younger generations and voters; ] To get there, development co-operation ) retool to bestto:support the diverse providers need national pathways towards sustainable ) modernise narratives to inspire public development; and support and trust at home, especially with ) WHDP XS VPDUWO\ IRU Hŕ˘&#x2026;HFWLYH younger generations and voters; development co-operation, playing ) retool to best support the diverse to their unique strengths as valuesnational pathways towards sustainable based, transparent and results-focused development; and development partners. ) WHDP XS VPDUWO\ IRU Hŕ˘&#x2026;HFWLYH

development is founded on an understanding that problems are rarely contained within national borders. Neither are the solutions to these problems.

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development co-operation, playing to their unique strengths as valuesbased, transparent and results-focused development partners.

A CALL FOR A

CHANGE OF COURSE IN DEVELOPMENT CO-OPERATION OECD DAC governments and their development agencies need to show through words, actions and investments that development co-operation is fit to take on 21st century challenges and open to working with diverse actors for long-term development results.

THE REPORT CALLS FOR A CHANGE OF COURSE AND ACTION ON THREE FRONTS.

1

2

3

NARRATIVE, MODERNISE IT TO:

RETOOL, BE FIT FOR PURPOSE TO:

TEAM UP, SMARTLY, TO:

Harness human solidarity and interests, focusing on tangible local actions and solutions to big issues that people care about.

Respect the right and responsibility of each nation to chart its own course towards sustainable development, with due respect for the universal rights of all peoples and generations.

Update words and language to shift perceptions to empowering all people and show how we all gain from progress in human well-being in other parts of the world.

Champion and safeguard the essence and value of concessional public finance for development in leaving no one behind.

Step-up action for gender equality, which is fundamental for all societies â&#x20AC;&#x201C; not only because it is right, but also because it provides keys to unlock the doors to progress.

Invest in green and clean development co-operation, breaking silos between climate and development to promote people-centred, climate-resilient development pathways.

Uphold, update and promote high standards, expertise and good practices on what works for sustainable development and well-being.

DEVELOPMENT CO-OPERATION REPORT 2019 A FAIRER, GREENER, SAFER TOMORROW Website: oe.cd/dev-coop

Reignite the spirit of effective development co-operation, especially in the face of short-term political and economic interests and pressures that are inconsistent with sustainable development.

Catalyse knowledge, innovation, financing and capacity by teaming up smartly with public, private and civil society actors, being informed by their unique value, and equipped with the right incentives and safeguards.

Co-ordinate across different policy communities to promote coherence in all areas of public policy and citizenship, with the aim to maximise global public goods while minimising any negative effects on sustainable development in other parts of the world.

A CLOSER LOOK AT DEVEL L L I H T N A T HE

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STRATEGIC STORY BY RIDG

Join the conversation on Twitter: @OECDdev, #FairerGreenerSaferDev

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WHY DEVELOPMENT CO-OPERATION NEEDS A NEW NARRATIVE AND CLEAN BREAKS Globalisation has left many people behind, and the backlash is reverberating within countries and the international system. As OECD Secretary-General Angel Gurría put it succinctly in 2018, trust in governments and institutions is plummeting and populism, protectionism and exclusive nationalism are on the rise (OECD, 2018[4]). OECD countries, most of which have been providing humanitarian and development assistance for more than 60 years, increasingly face sustainable development challenges at home. Since the financial crisis in 2008 many of the world’s richest countries are faced with rising wealth inequality, fraying social cohesion, and austerity policies (Ramos, 2018[5]).

The impact of these trends on attitudes towards development co-operation is already being felt in some countries in the form of declining or stagnating budgetary allocations and political narratives and policy priorities that emphasise national, bilateral interests over support for multilateral engagement for sustainable development. The development co-operation system itself, sensitive to legitimate concerns that the global community is failing to follow through on its commitments is “in transition and perhaps even turmoil” (Ingram and Lord, 2019[6]).

Yet the growing interconnectedness of economies and societies makes multilateralism and global governance more important than ever to reduce inequalities and to share benefits more fairly between and within nations.

For a new narrative to be credible, resonate with people, reflect the complex and context-specific nature of international development today, and the universal vision of the 2030 Agenda for Sustainable Development, however, it requires more than just a change in language. It requires a clean break from outdated North-South development co-operation models, with words like ‘aid donor’ and ‘aid recipient’ that no longer ring true (Glennie, 2019[7]; Rioux, 2019[8]; USAID, 2019[9]). Recent reports published by the OECD and other organisations lay the groundwork for updating narratives to match today’s realities about development co-operation policies, partnerships, financing and results while staying focused on the prize of inclusive and sustainable development - for example (OECD, 2018[10]; OECD, 2018[11]; OECD, 2018[12]).

Choosing the right narrative depends on the audience and what kind of messages resonate with them. Just like marketing or political campaigns, development narratives will have a greater impact if they are based on a deeper understanding of public attitudes and target a more refined set of audience segments. This means that development professionals need to strengthen their listening skills, in part by gathering insights through opinion polls, policy consultations, focus groups and social media analytics.

Note: The final paragraph was contributed by DevCom based on a video entitled “Good Listeners Make Great Development Communicators” OECD DevCom proposes five ways to better understand audiences: See https://www.youtube.com/watch?v=Qso_LcHPhyY

DEVELOPMENT CO-OPERATION REPORT 2019 TRENDS AND INSIGHTS ON DEVELOPMENT FINANCE WHERE THE MONEY GOES What insights can be gleaned from this yearâ&#x20AC;&#x2122;s profiles of development co-operation providers, OECD statistics on official development assistance (ODA) and private development finance, recent publications and DAC Peer Reviews?

Significant changes in allocations to countries in 2016-17

Of the total 2017 ODA... from DAC members to fragile contexts

62% was for development programming

62% 13% was for

13%

peacebuilding efforts but only

2% of that total amount

25%

was for

25% was for humanitarian assistance

prevention

ODA TO LDCS BETWEEN 2016 & 2017

Prevention costs less than cure

THE MOST SIGNIFICANT INCREASES BANGLADESH

YEMEN

SOMALIA

SOUTH SUDAN

to USD 2.2 billion

to USD 1.3 billion

to USD 1.3 billion

to USD 1.7 billion

from USD 1.2 billion from USD 0.8 billion from USD 0.8 billion from USD 1.3 billion

THE MOST SIGNIFICANT DECREASES AFGHANISTAN

BURUNDI

from USD 3.2 billion from USD 0.6 billion to USD 2.8 billion

to USD 0.2 billion

Least developed countries are receiving a smaller share of DAC membersâ&#x20AC;&#x2122; total ODA

Honouring targets

LUXEMBOURG DENMARK

NORWAY

32.5%

}

These 7 countries all met the

SWEDEN

TURKEY

29%

0.7%

ODA/GNI target in 2017-2018

UNITED ARAB EMIRATES

UNITED KINGDOM

2010

Flows to least developed countries Scope for morehistoric â&#x20AC;&#x2DC;greeningâ&#x20AC;&#x2122; of ODA below levels

Need to step up funding for gender equality

ODA from DAC members addressing gender equality as a principal or significant objective

ODAODA fromfrom DAC DAC members addressing gender members addressing environmental sustainability environmental sustainabilityand andclimate climatechange change

Bilateral allocable ODA, commitments, billion USD, 2017 constant prices 40

35

35

30

30

25

25

20

20

15

15

10

10

5

5 0 2010

2011

2012

2013

Principal

58

Bilateral allocable ODA, commitments, billion USD, 2017 constant prices

40

0

2017

2014

2015

2016

2017

Significant

'(9(/230(17 &2 23(5$7,21 5(3257 ৰ৮৯৷ $ )$,5(5 *5((1(5 6$)(5 7202552: k 2(&' ৰ৮৯৷

2010

2011

Environment

2012

2013

2014

2015

Environment and Climate

2016

2017

Climate

USD 143.2 billion

OVERALL NET ODA FLOWS (preliminary data, 2017 prices) from DAC members in 2018 which decreased compared to USD 147.2 billion in 2017. Current levels of ODA do not match the collective ambition of the 2030 Agenda for Sustainable Development or the international commitments set out in the Addis Ababa Action Agenda. Comprehensive 2018 ODA data are not yet available for countries beyond DAC members.

USD 6.1 billion

PROVIDED FOR DEVELOPMENT in 2017 by the 26 private philanthropic foundations sharing data with the OECD. Foundations allocated USD 3.7 billion to health and population in 2017, making them the second most important source of development finance in this area after the United States.

50%

SHARE OF DAC MEMBERS that updated their development co-operation policies and strategies since 2017. New policies and strategies identify how members will contribute to achieving the Sustainable Development Goals in developing countries â&#x20AC;&#x201C; both directly and by addressing global challenges â&#x20AC;&#x201C; while also serving their national interests in areas such as trade and security.

USD 4.5 billion

CORRESPONDING TO 4% OF BILATERAL ODA, were dedicated to gender equality as a main objective in 2017, a figure that has not increased over recent years.

30%

SHARE OF BILATERAL ODA (USD 40.1 BILLION) supporting the environment in 2017 while one quarter (USD 30.7 billion) focused on climate change. Overall levels of ODA supporting environmental sustainability and climate change have increased over time.

USD 33.9 billion

FINANCING MOBILISED FROM THE PRIVATE SECTOR IN 2017 by official development finance interventions. At less than a quarter of ODA volumes in 2017, financing mobilised from the private sector is modest. Furthermore, foreign direct investment in developing countries fell by USD 70 billion, or 11% between 2015 and 2016.

37%

SHARE OF BILATERAL AID that was marked as â&#x20AC;&#x153;unallocatedâ&#x20AC;? by country in 2017, which increased from 25% in 2007. Better reporting is needed to fully track where ODA is going.

TEAMING UP

DAC MEMBERSâ&#x20AC;&#x2122; ODA BUDGETS are managed across an increasing number of government departments and agencies. This broadens the pool of expertise available to solve development challenges, but brings with it challenges of co-ordination and coherence.

'(9(/230(17 &2 23(5$7,21 5(3257 ৰৎ৯ৡ $ )$,5(5 *5((1(5 6$)(5 7202552: k 2(&' ৰৎ৯ৡ

59

Development Co-operation Report 2019

A FAIRER, GREENER, SAFER TOMORROW This 57th edition of the Development Co-operation Report is intended to align development co-operation with todayâ&#x20AC;&#x2122;s most urgent global priorities, from the rising threat of climate change to the flagging response to the Sustainable Development Goals and the 2030 Agenda. The report provides OECD members and other development actors with evidence, analysis and examples that will help them to reinvigorate public and political debates at home and build momentum for the global solutions that todayâ&#x20AC;&#x2122;s challenges demand.

Read the full report oe.cd/dev-coop Follow the conversation #FairerGreenerSaferDev

Previous editions in the Development Co-operation Report series: 2018 Joining Forces to Leave No One Behind 2017 Data for Development 2016 The Sustainable Development Goals as Business Opportunities 2015 Making Partnerships Effective Coalitions for Action