Our Perspective

international development finance and cooperation

Fighting corruption: Adapting ‘best practices’ or ensuring a ‘best fit’ to local contexts

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Korea’s case is particularly interesting because of its rapid economic and social development despite governance challenges such as corruption.

At UNDP’s Seoul Policy Centre for Global Development Partnerships, we often get to hear: “Korea developed so fast. I want to know how this happened, so that I can help my country too”. Policy makers and practitioners in developing countries find Korea’s case particularly interesting because of its rapid economic and social development despite governance challenges such as corruption. At the 2015 Seoul Debates, participants honestly wanted to take practical and immediate solutions home, and found Korea’s innovative tools particularly attractive. Besides the integrity assessment of Korea’s anti-corruption body - conducted by over 600 public organizations in Korea, and now applied in several countries including Bhutan - there was also the electronic subcontract payment system for transparent public infrastructure projects of the Seoul Metropolitan Government. Other countries also shared their experiences, among them Uganda and Columbia. Uganda’s Inspector General of Government shared how her country had exceeded its target of prosecuting 50 cases of corruption per year, and stressed the importance of working with all stakeholders both within and beyond the country. Our colleagues from UNDP Colombia shared a transparency assessment tool that helps political parties manage the integrity of political processes. Yet we deliberately avoided the ‘best practices approach,’ or... Read more

Bridging the gap: How the SDG Fund is paving the way for a post-2015 agenda

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Photo: UNDP/Peru

We are fast approaching this September’s Summit on the Sustainable Development Goals (SDGs), with world leaders debating the 17 goals and 169 targets proposed by the United Nations Open Working Group. The post-2015 development agenda will focus primarily on strengthening opportunities to reduce poverty and marginalisation in ways that are sustainable from an economic, social and environmental standpoint. The SDG Fund, created by the United Nations Development Programme (UNDP) with an initial contribution from the government of Spain, has been designed to smoothen the transition from the Millennium Development Goals phase into the future Sustainable Development Goals. The rationale of the joint programme initiative is to enhance the development impact of technical assistance by combining inputs from various UN entities, each contributing according to its specific expertise and bringing their respective national partners on board. To illustrate, we are currently implementing joint programmes in 18 countries addressing challenges of inclusive economic growth for poverty eradication, food security and nutrition as well as water and sanitation. The majority of our budget is invested in sustainable development on the ground and is directly improving the lives of more than one million people in Latin America, the Caribbean, Asia, Arab States and Africa. National... Read more

Innovative public-private partnerships are key to Post-2015 success

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Kazakhstan produces 343,000 tonnes of electronic waste each year. Through a public-private partnership the country is now making positive changes to their e-waste disposal. Photo: UNDP Kazakhstan making changes to e-waste disposal through an unusual public-private partnership

In a world where links between countries are greater and faster than ever, disasters that once might have had only local effects now increasingly have international ramifications. The effects from the tsunami/meltdown of Japan’s Fukushima reactor, for example, had devastating local consequences, but also impacted communities and economies thousands of miles away. In such an interconnected world, with impacts that touch upon all of society, locally and internationally, we need equally all-embracing approaches. While challenging, an increasingly interlinked world also provides unprecedented opportunities to reduce risk. Countries that might have once been at a dire disadvantage from a skills and knowledge perspective now have the ability to draw upon international resources. And the private sector—which operates in perhaps an even more hyper-connected environment than governments—can be called on to provide expertise. Our goal then, as we move into the post-2015 context, is to learn how to tap into these areas and to make use of innovative partnerships that draw on specific strengths and address identifiable gaps. The Get Airports Ready for Disasters (GARD) programme, a joint venture between UNDP and Deutsche Post DHL, stands as an example of such innovation. The programme joins the logistics expertise of DPDHL with the governance... Read more

Infrastructure for Development: Show me the Money!

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A Renewable energy generation project, implemented by UNDP and funded by the OPEC Fund for International Development (OFID), installed solar panels in schools and maternity clinics in Gaza. Photo: UNDP/PAPP

According to the Oxford University Said Business School, we are facing an unprecedented infrastructure mega-project investment era, amounting to 6-9 trillion US$ annually, or 8% of the global GDP. Whether it involves revamping old infrastructure, developing new sources of energy, providing access to social services and utilities to more people (with the paradigm of universal access in sight) or developing our communications infrastructure, it is easy to be in favour of more, and better, infrastructural development. The issue is not for poor countries alone to struggle with. President Obama wants to upgrade the US roads, bridges and ports by imposing new taxes on overseas earnings by American companies. Little can be said against infrastructure as a public good. The problem is how to interest private finance in that public good.       As the Secretary-General said in his post-2015 agenda Synthesis Report last December, “Urgent action is needed to mobilise, redirect, and unlock the transformative power of trillions of dollars of private resources to deliver on sustainable development objectives.” Infrastructure makes life better, economies more competitive, and while being built, offers jobs to the value chain. On the other side, however, infrastructure also massively consumes cement and increases emissions. It is one... Read more

2015: Many things could go well!

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The 3x6 approach in Burundi allows people, through an integrated approach to control the development process themselves. (Photo: UNDP Burundi)

This year is iconic, and has been branded as a year of opportunity. Like Y2K, it could be an annus mirabilis (year of miracles). UNDP can make a serious contribution: the Strategic Plan (2014-2017) is designed to chart the way forward in the major conferences ahead, and in the final definition of the Sustainable Development Goals (SDGs). 2015 is the European Year of Development, the UN’s 70th Anniversary and the 20th Anniversary of Beijing (the platform to advance women’s rights).  In 2015, the African Union Summit will focus on Ebola and beyond, and the Turkish G20 Presidency priorities are focused on Inclusivity, Implementation and Investment for growth. We are on the road to Sendai for the 3rd World Conference on Disaster Risk Reduction (DRR), to Addis for the 3rd Conference on Financing for Development (FfD). The events complement each other leading to the General Assembly (GA) on Post 2015 and the CoP21 in Paris. UNDP is ready for the challenge. It is strong, fit, and cost-effective. It is state of the art in development thinking and is in the lead of the UN Development System. What will be our key messages? I suggest the following five: UNDP is ready to support... Read more

How to finance the Post-2015 Development Agenda?

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Benoit Almeras-Martino/UNDP DRC

The Sustainable Development Goals (SDGs) are much more ambitious than their predecessor; the new framework will tackle not only ‘MDG type’ challenges such as poverty eradication, but also issues such as climate change and peace and security. Much more financing – public and private, domestic and external – will clearly need to be mobilized. What’s not clear is where these resources will come from. Most countries agree on the importance of improved domestic resource mobilization – and there has been significant progress over the last decade. But many also emphasise that development aid (ODA) will continue to play an important role post-2015. Donors should therefore honour their commitments. In July 2015, Addis Ababa will host the UN’s 3rd conference on financing for development.  The conference will not just look at different sources of finance. It will also address ‘systemic’ issues such as the international monetary and financial system, debt sustainability, international tax rules and trade. These areas are important ‘enablers’ of development. There’s a lot on the table and the stakes are high; a robust outcome at the Addis Ababa conference will send an important signal of political support for the SDGs. UNDP Administrator Helen Clark made a keynote address at... Read more

National finance helps Asia-Pacific lead the way on Climate Change

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With UNDP's support, rural residents in Bangladesh now have the resources and capacities to build back better and become resilient in the face of environmental threats. Photo credit: UNDP Bangladesh

A vital round of United Nations climate change negotiations is underway in Lima, Peru, from Dec. 1-12. This marks a significant milestone for the crucial Paris Summit on climate change that is a year away. At the climate talks in Lima, climate finance will again be at the forefront of negotiations and key in reaching a new global climate agreement. Initiated at the Secretary General’s Climate Change Summit in September, pledging towards the Green Climate Fund almost reached $10 billion. So far, countries in the Asia Pacific region have received a quarter of all global public climate finance. India and China are the largest recipients. Nineteen dedicated climate funds and initiatives have approved more than $2 billion for projects in the region, since 2003. With many countries in Asia Pacific at the frontline of climate change, bolstering resilience of low lying deltas and small islands, and reducing emissions from fast industrializing nations is a good investment. While this international financing is crucial, for it to have a sustained impact and leverage the investments needed it is also important that planning and budgeting systems are revisited through a climate lens. With the support of the United Nations through the Poverty and Environment... Read more

Think tanks supporting South-South Cooperation

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Participants of a UNDP project on family savings and improving diet of poor families in Uruguay and El Salvador using improved equipment to reduce consumption of firewood and increase use of solar power. Photo credit: UNDP

Our new strategic plan champions thought leadership in various areas, including South-South and Triangular Cooperation (SSC and TrC). To achieve that vision, we will need to work very closely with think tanks from the global South and open possibilities for cutting edge research, as there is much to be done to help bridge research with policy making and practices on the ground. To start the conversation we presented perspectives from 21 think tanks in the North and South, at a recent partnership-forum we hosted at the Global South-South Development Expo 2014. This outlines emerging trends, roles, good practices and challenges faced by think tanks on SSC and TrC. At the open platform the ensuing discussion revolved around the roles and responsibilities of think tanks in supporting the growth of South-South and Triangular Cooperation and creation of a common research agenda in this area. Panelists from Brazil, China, India and Kenya presented their views on the concepts, principles, practices, and development impacts of SSC and TrC, and outlined steps for moving forward. I would like to share with you some recommendations that emerged from the consultation, and where we could provide further support: Assisting in developing networks for interregional collaboration – a... Read more

Can business help finance the Post-2015 Agenda? Yes, But…

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A participant at the Latin America regional consultation on 'Engaging with the Private Sector' in Cartagena, Colombia. Photo credit: (AECID)

Diplomats and their governments are in the middle of a huge exercise to update the world's development agenda. Attention has now started to shift from the ‘what' of the agenda to the ‘how' – policy choices, capacities, institutions, and technology to name but a few. Yet where will the hard cash come from to fund these lofty aspirations? Some of the poorest and least developed countries will be looking for a clear commitment from richer countries that they will meet previous commitments on official development assistance (ODA), including the international benchmark of 0.7% of GNI. But the economies of many rich countries are still struggling, and their governments are finding it difficult to justify to domestic taxpayers that their money is being spent abroad rather than at home. At the other end of the spectrum, some governments have emphasized that the private sector will step in and shoulder the burden of financing the new goals and targets. The discussion on the validity or means of this claim has not been very deep. More cynically, some have suggested that focusing on the private sector's role is a deliberate tactic to steer the debate away from aid commitments. But this critical question remains... Read more

How well is the rich world supporting development?

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Miners in the Democratic Republic of Congo. The mining sector is characterized by conditions of extreme danger, without any security and health framework with negative consequences for the environment. Photo: Benoit Almeras-Martino/UNDP DRC

We all know that many factors influence a country’s progress on poverty reduction and development. Policies and institutions at the domestic level are probably the most important driver. But it’s also true that the policies and actions of other countries – and especially rich and powerful nations – also influence the developing world’s development prospects. In this spirit, MDG 8 was elaborated. This MDG differs from all the others; it measures the developed world’s efforts to do things like increase development aid, cancel the debt of the poorest countries, make international trade fairer and provide access to affordable medicines. These measures, many argue, are just as important as the steps developing country governments can take at home to ‘improve their lot’. Every year, the UN monitors progress on how well the rich world is doing and launched its latest ‘update’ report recently. UNDP partners in this annual monitoring effort. So what’s the verdict? Is the rich world living up to its MDG commitments? On development aid (ODA), the report notes that, despite an increase last year, ODA still was US$180 billion short of the commitment. It’s also heavily concentrated in a few countries; in 2013, just 10 countries absorbed over 34%... Read more

Crowdfunding for development: fad or future?

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Children picking olives at Ostrog Primary School which was made energy independent, through a crowfunding campaign supported by UNDP and the Kaštela Energy Cooperative. Photo: Marina Kelava/UNDP Croatia

Steady growth and, for now, no end of the trend in sight: the crowdfunding market keeps expanding across the globe. Crowdfunding describes the practice of securing funding for a specific project or business venture by a dispersed group of people with some shared interests, “the crowd”. Most crowdfunding initiatives are dependent on whether they raise the targeted amount from the crowd. If the funding goal is not met, the project will not take off. It thus differs to charitable donations which usually support the respective organization’s general mission without knowing exactly how the money will be spent. UNDP has been experimenting with philanthropic crowdfunding and has had some early successes. For example, colleagues in Croatia successfully raised $10,000 for an energy-independent school in Croatia. The sum might be fairly small but the experience showed: crowdfunding can create a buzz for development work and social causes as the unwritten rules of crowdfunding require development organizations to communicate constantly and in a non-technical jargon what concretely was achieved. UNDP has also had some experience ‘failing’ with crowdfunding initiatives. As the saying goes: “Failure is only the opportunity to begin again more intelligently”. Based on lessons thus far, we developed guidance document for UNDP... Read more

Financing Post-2015: A quick run-down of the expert committee’s report

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Drip irrigation system introduced in the farmlands of Akmola region in Kazakhstan. Photo: UNDP in Kazakhstan

The UN’s inter-governmental committee of experts on sustainable development financing met for the last time this month to put the final touches to their much anticipated report on how the world should finance the post-2015 Sustainable Development Goals – or SDGs. I’ve had the opportunity to attend many of the committee’s sessions, and they’ve had a mammoth task. So what have they come up with? You can read the full report here, but below is a quick heads-up. The range of issues they’ve had to cover is massive: from assessing how much cash is needed to finance sustainable development to thinking about where the cash could come from and where these funds should be directed. The report draws up a ‘menu of options’ for the financing of sustainable development. This allows policymakers in different countries to make choices as to what policies and financial instruments are most suited to them. That makes perfect sense of course; the strategy that will be best for a climate-vulnerable small island state such as the Maldives won’t necessarily be the same for a larger resource-rich country such as Kazakhstan. On the other hand, it could also lead governments to ‘cherry-pick’ among the ideas presented, and... Read more

Development at the crossroads: reflections from the Arab Region

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Syrian refugees in Zaatari camp in the village of Zaatari, Jordan. photo: UNDP

Recent years have seen dramatic changes in the Arab region and two aspects in particular are important for the region’s relationship with issues of development finance.  First, the expanding role of the region itself as a provider of official development assistance (ODA), with the Arab Gulf countries providing more than $3 billion to countries around the world each year - Saudi Arabia alone provided over $100 billion to almost 90 countries since the 1970s. While the volume of Arab ODA has attracted attention, important issues for the future will be a growing focus by Arab partners on development effectiveness, alignment with post-2015 priorities like sustainable access to energy and water, and applying social and environmental quality standards to manage risks in recipient countries.  Furthermore, while most Arab ODA has operated through bilateral cooperation channels and Arab multilateral platforms in the past, there are benefits to connectivity with other Southern donors. The centre of gravity in the global economy is shifting East at speed, and this means shifting lines of development cooperation as well.  Strategic alliances between Asian and Arab donors could be a powerful force for the common goal of supporting new development solutions in Africa, with both Arab and Asian... Read more

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