How well is the rich world supporting development?

06 Oct 2014 by Gail Hurley

Miners in DRCMiners 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

Overcoming Barriers to Poverty Reduction: A greater role for the private sector

02 Sep 2014 by Suliman Al-Atiqi, Programme Analyst

Female artisan from the Mosuo community in southwest ChinaLuru-Dashima, a female artisan from the Mosuo community in southwest China, participated in a UNDP/private sector project focusing on improving market access and recognition for traditional ethnic minority handicrafts. Photo: UNDP/China
From C.K. Prahalad’s thought provoking call for eradicating poverty through profits to the newly coined words ‘reverse innovation’, various schools of thought have emerged recently to make a case as to why the private sector could and should do more towards poverty alleviation. Naturally, that case was incubated in business schools—a case for the business community to do more to eradicate poverty needs to be commercially viable. But we, at UNDP’s global policy center for private sector in development (IICPSD), opened the dialogue further and looked outside of the business schools to tap into the wealth of knowledge developed by poverty experts and learn more about various factors that lead to and perpetuate a life in poverty. Our efforts culminated in a recent conference about “The Role of the Private Sector in Poverty Reduction and Social Inclusion”, where we disaggregated poverty data to a basic set of tangible disadvantages that sustain and perpetuate socioeconomic exclusion. We identified five overarching barriers to poverty reduction: Early Developmental, Health, Skill, Social, and Decision-making barriers. The rationale behind this approach is based on the premise that private companies first gather in-depth understanding of the needs and challenges facing their potential consumers before presenting innovative solutions … Read more

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

13 Aug 2014 by Gail Hurley: Policy Specialist, Development Finance

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 aid: where to next?

09 May 2014 by Gail Hurley, Policy Specialist on Development Finance

 The first High-Level Meeting of the Global Partnership for Effective Development Cooperation The first High-Level Meeting of the Global Partnership for Effective Development Cooperation launched 38 new initiatives by government, business, private foundations and civil society in Mexico last month. Photo: AGCED Mexico
Last month some 1500 people from over 130 countries gathered in Mexico City for the latest international jamboree on development aid. The ‘Global Partnership for Effective Development Cooperation’, an OECD/UNDP-led effort  to improve aid effectiveness by encouraging better partnerships between aid donors and aid recipients, had to confront some really tough questions. Do some countries still need development aid? Does aid really work that well? And what is ‘aid’ anyway? Over the last decade, the developing world has dominated global economic growth. There are now 103 middle-income countries and the number (happily) continues to rise. Although much of the attention has been focused on the rapid economic advances made by the ‘big beasts’ of the developing world —Brazil, China and India— others are also doing well; Sub-Saharan Africa has grown at, on average, 5-6% annually over the last decade. Some developing countries have become major donors themselves, such as Mexico, Turkey, Kazakhstan and South Africa. Arab donors have also become more prominent and last month the UAE posted the highest aid levels of all donor countries as a percentage of gross national income (at 1.25%). All well and good, then?  Perhaps, but it’s left many ‘old’ donors confused – will taxpayers … Read more