BRICS DEVELOPMENT PARTNERSHIP

ADMINISTRATORS’ MEETING

6-7 AUGUST 2016

GLOBAL AID ARCHITECTURE

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Aid Flows: Highlights

• A new world record of USD 135 billion indevelopment assistance was reached in 2013.

• In 2015, net official development assistance flowsof the OECD were USD 131.6 billion

• DAC member countries and G7 countries provided72% of total net DAC ODA in 2015, and the DAC-EU countries 56%

• UK fulfilled its target for the 1st time of giving 0.7%of its GNI as development assistance

Aid Flows: Highlights

• Of all developing countries, LDCs-both fragile andnon-fragile- are the most heavily ODA dependent.

• For many middle-income countries the relativeimportance of ODA has diminished significantly.

• Between 2000 and 2015, net ODA grew (real term) by 83 percent overall, but was unevenly distributed across developing countries. While ODA increased considerably for fragile states its growth was modest for non-fragile states.

Sector wise disbursements of ODA (DAC), US$ billion

Year 2012 2013 2014Share in Total

(%), (2014)

1 Social Infrastructure & Services 44.83 42.09 42.81 37.27

2Economic Infrastructure &

Services16.80 20.41 22.15 19.28

3 Production Sectors 7.63 7.52 7.95 6.92

4 Multi-Sector / Cross-Cutting 10.27 10.26 11.01 9.59

5Commodity Aid / General Prog.

Ass.3.49 5.19 2.42 2.11

6 Action Relating to Debt 3.21 3.43 0.64 0.56

7 Humanitarian Aid 8.87 10.80 13.99 12.18

8 Other 11.79 12.30 13.88 12.09

Total 106.89 111.99 114.86 100

4Source: OECD stat, Note data from Creditor Reporting System

Broad Developments

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Core-Periphery

North-South

Cooperation

UN SDGs SDG 17 CBDR

South-South Cooperation

(Alternate)

Development Aid Architecture

TOSSD

High Level Forums

Rome

Paris

Accra

Busan

GPEDC

ECOSOC

DCF

How OECD-DAC Moved?

HLFs

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High-Level Forum: Key Issues at Rome and Paris

• 2003, multilateral development banks and international

and bilateral organizations, donor and recipient country at

Rome for the HLF on Harmonization (HLF-Rome).

• Committed to take action to improve the management and

effectiveness of aid.

• 2005 Paris Declaration sought theoretical support from

the Washington consensus

• Paris Declaration on Aid Effectiveness:

Ownership, Harmonisation, Alignment, Results and

Mutual Accountability

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High-Level Forum: Key Issues at Accra

• Southern countries accepted Paris declaration only as

a ‘recipient’ and not as a provider

• At Accra, members referred to the cumbersome, and

even dysfunctional, nature of procedures required by

some donors and the urgency of streamlining and

simplifying

• All responsibilities and expectations had been thrust

on the recipients and thus violated the promised

‘mutual accountability’

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High-Level Forum: Key Issues at Busan

• Aimed to forge a new partnership that is broader

and inclusive

• OECD-DAC launched a new vision – replacing

aid effectiveness with development effectiveness

• Proposed a new paradigm to subsume North-

South development flows

• OECD-DAC countries were keen to set up a new

entity called Global Partnership for managing the

global aid architecture (GPEDC)

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GPEDC = OECD/DAC + UNDP

• Post-Busan Interim Group decided for Global

Partnership for Effective Development

Cooperation (GPEDC)

• Concerns among Southern providers: Indicators

and targets of the GPEDC may gradually become

the norm for all

• However, GPEDC lost momentum as it did not

take into account views of Southern partners

• India, Brazil and China did not participate. South

Africa only as recipient. 11

What is BRICS View?

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SDGs and SSC

• Ownership and implementation of the 17 SDGs has to happen

nationally for most targets

• Would not be feasible without cooperation at the global level

that facilitates provision of adequate resources and financing as

well as technology

• Global governance architecture on

trade, investment, technology and environment has to be

appropriately designed to meet the requirements

• 2030 steers clear of CBDR as it mandates equal ownership of

issues by all countries.

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UN Development Cooperation Forum

• The Development Cooperation Forum (DCF)

was a neutral and impartial space that allowed

for fresh perspectives and discussions

(ECOSOC)

• Launched in 2007

• DCF reviews the latest international

development cooperation trends

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Latest from OECD?

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Total Official Support for

Sustainable Development (TOSSD)

• A proposed international measure being

developed by OECD-DAC countries

• Resulting out of previous attempts to bring

southern donors into an umbrella accounting

mechanism designed by the developed donors

• Expands OECD-DAC framework to capture

all development finance flows

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What is the Game?

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What is the game?

• Subsuming SSC lexicon under OECD

framework

• Mutual benefit, credit lines for development

solidarity and technical assistance

• Difficult to distinguish SSC/OECD-DAC

• No mention of ‘Common But Differentiated

Responsibilities’

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What is the new Instrument?

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What is to be measured?

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What is to be Measured?

• Assistance from the Non-DAC Members?

• Get it through recipients under Mutual Accountability Framework?

• Merge with the N-S Flows

• Bring out Reports/Spread through Media/CSOs/International Agencies

• Show how selfish emerging economies are

• Come on the same table but on the DAC terms

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What should BRICS Do? Cooperate

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• Do BRICS countries offer a different

alternative?

• If yes, how can BRICS move on with such an

idea?

• How can BRICS especially respond to global

efforts by US, UK and other developed nations

to dominate the agenda of development

cooperation?

Think

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• Initiate a dialogue among BRICS on Impact assessment and evaluation

• UN-led framework should lead the methodological approaches in measuring development cooperation

• NeST

• CEDRN/FIDC/ABC (?)/SADPA/Russia

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Thank you!

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