INDIA’S DEVELOPMENT CO-OPERATION:

Emerging Challenges and Opportunities, A Non

Busan Perspective

RATHIN ROYDirector National Institute of Public Finance and Policyrathin.roy@nipfp.org.in

FACILITATING DEVELOPMENT CO-OPERATION AT THE COUNTRY LEVEL• India’s contemporary development policy approach is in a

transformatory phase.

• The major features of India’s development co-operation are the

affirmation of mutual interest, rather than altruism or global

citizenship, as the cornerstone for co-operation, and

• the rejection of conditionality as a modality for transacting

development co-operation

• OWNERSHIP: Developing countries set their owndevelopment strategies, improve their institutions and tacklecorruption.

• ALIGNMENT: Donor countries and organizations bring theirsupport in line with these strategies and use local system.

• HARMONISATION: Donor countries and organizations co-ordinate their actions, simplify procedures and shareinformation to avoid duplication.

• MANAGING FOR RESULTS: Developing voluntaries and donorsfocus on producing and measuring results.

• MUTUAL ACCOUNTABILITY: Donors and developing countriesare accountable for development results.

PARIS DECLARATION AND INDIAFive principles of Paris declaration INDIA

ACCRA AGENDA FOR ACTION AND INDIAA A A P R I N C I P L E S

• CIVIL SOCIETY: Civil society organizations (CSOs) should play adynamic role in making citizens’ concerns and needs heard. CSOsshould help ensure that donors and developing countries fulfiltheir commitments.

• COUNTRY SYSTEMS: When implementing their aid programmes,donors should use developing countries’ own fiduciary systems.Developing countries should strengthen their ownadministrative and fiduciary systems.

• FRAGMENTATION: Donors should improve their co-ordinationand avoid duplicated efforts, thereby lowering costs. Donorsshould work together to balance their programmes so that allcountries receive enough aid.

I N D I A

• UNTYING AID: Donors should increase the value for money of aid by continuing to untie it – giving recipients the option of choosing where and from whom they will contract goods and services – and by promoting the use of local and regional procurement.

• ACCOUNTABILITY: Developing countries should help parliaments keep track of their aid programmes by encouraging greater transparency in public financial management. Donors should disclose regular, detailed information on how much they invest, when they invest it, and where – and whenever available, the results of their investments.

• CONDITIONALITY: Recipient countries should be able to determine the conditions attached to the way aid funds are spent. Donors and developing countries should work from a small set of mutually agreed conditions, and make all these conditions public.

• PREDICTABILITY: Developing countries should strengthen their capacities in budget planning. Donors should provide developing countries with regular information on how much aid they can expect, and when they can expect to receive .

BUSAN PARTNERSHIP FOR EFFECTIVE DEVELOPMENT COOPERATIONP R I N C I P L E S

• Ownership of development priorities by developingcountries: Partnerships for development can onlysucceed if they are led by developing countries,implementing approaches that are tailored tocountry‐specific situations and needs.

• Focus on results: Our investments and effortsmust have a lasting impact on eradicating povertyand reducing inequality, on sustainabledevelopment, and on enhancing developingcountries themselves.

I N D I A

INDIA

OWNERSHIP,ALIGNMENT, GOVERNMENT TO GOVERNMENT

ACCOUNTABILITY, USE OF COUNTRY SYSTEM,

CONDITIONALITY, MUTUAL RESPECT, PREDICTABILITY.

HARMONIZATION, RESULTS, FRAGMENTATION, UNTYING

AID, PARLIMENTARY/ LEGISLATIVE ACCOUNTABILITY, PUBLIC

DISCLOSURE.

B U S A N P A R T N E R S H I P P R I N C I P L E S

• Inclusive development partnerships: Openness, trust,and mutual respect and learning lie at the core ofeffective partnerships in support of developmentgoals, recognizing the different and complementaryroles of all actors.

• Transparency and accountability to each other : Mutualaccountability and accountability to the intendedbeneficiaries of our co‐operation, as well as to ourrespective citizens, organizations, constituents andshareholders, is critical to delivering results.Transparent practices form the basis for enhancedaccountability.

I N D I A

THE MULTILATERAL IMPERATIVE

• India has shown a willingness to engage in dialogue with BrazilMexico and South Africa on its development co-operation activitiesin Africa.

• Within the Ministry of Finance there is some consciousness thatmembership of the G20 entails a better grip over development co-operation and a less narrowly bilateral view of such than was,perhaps, the case historically.

• The major new initiative taken by Indian development co-operationis in Africa, where a cross regional opportunity exists

• However the geopolitics of South Asia places limits on RegionalCo-operation.

IMPLICATIONS

• Cross- regional South- South multilateral policy

dialogues should underpin Development Co-operation

• Africa is a place where engagement should continue to

broaden and deepen.

• Development Co-operation should exploit every

opportunity/space afforded by South Asian geopolitics.

MULTILATERAL OPPORTUNITIES

• Widening the IBSA Fund anchored in the UN process.

• Investing in the multilateral post-2015 process.

• Taking ownership of Goal 8 in crucial areas such as

access to affordable drugs, mainstreaming actions to

remove inequalities in the international trading system

and activation of the G-20 DWG.

CHALLENGES

• India’s own fiscal and Current Account positions

• Global savings asymmetries

• Limited imagination in South-Asian geopolitics.

• Inadequate policy dialogue between policy actors in the

emerging G-20.

THANK YOUrathin.roy@nipfp.org.in

INDIA AND SUDAN• India is dependent upon steadily increasing imports of resources,

especially oil and gas. Hence, energy security might be regarded as India’smost important single economic concern.

• Development Cooperation has become a pivotal instrument to gain accessto new markets and to find new resource suppliers to deal with the risingdemand of the domestic economy.

• The focus lies clearly on energy and infrastructure development, whichreceives the largest share of funds.

• The most important project in this respect is the construction of a 500MWpower plant at Kosti, White Nile state, worth US$ 500 million, of whichIndia covers US$ 350 million; the plant is built by the Indian state-ownedcompany Bharat Heavy Electricals Ltd (BHEL) and shall after its completionin early 2011 supply electrical energy to the region and its inhabitants

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• Further significant segments of cooperation are agriculture, health andespecially capacity building.

• Sudan is today one of the main beneficiaries of the ITEC program as itsslots increased from 40 in 2004/05 (MEA 2005) up to 150 .

• Other projects in this respect are the completion of feasibility studies, thedeployment of experts or the invitation of 15 officials from South Sudan fora special course held at the Indian Foreign Service Institute (MEA 2004,2007, 2009).

• In 2004 India donated 20,000 tons of wheat as a reaction on the tragedy inDarfur and later offered US$ 100,000 as relief material for the victims ofthe severe flood that occurred in 2007.

• As a steady supporter of the UN peacekeeping missions India alsocontributed to the UN mission in Sudan (UNMIS) which started in 2005.

• Reluctant to take a country specific normative position while workingharmoniously multilaterally. BACK