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Policy Coherence for Development

Recent developments from a donor perspective

Frederik Haver Droeze

Policy Coherence Unit Helsinki symposiumThe Netherlands June 2010

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The setting

• Policy Coherence for Development (PCD) is increasingly seen as the key to modern development cooperation. • PCD is part of a search for a holistic approach to development and coherent global policies.• That wider policies matter is not a new insight, but the systematic translation into PCD has developed in the last 5 – 10 years.• The changing global setting has given a strong impetus: crises, growing interconnectedness, global public goods, G-20.

• Non-aid policies have an enormous (underdeveloped) potential for contributing to the MDGs.

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Specific PCD instruments have been introduced

• Mechanisms developed in donor countries like the Netherlands whole-of-government approach, PCD Unit, reporting.

• EU development consensus, biennial report, workprogramme, new PCD strategy with focus on five themes, report EP.

• OECDMC declaration, synthesis report, good institutional practices, toolkit, DAC reflection exercise, flagship PCD report, development council.

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Lessons learned (1)

•PCD is about political choices.

Political weight, public awareness, external pressure, financial power, all these matter more than formal structures.

• Nevertheless mechanisms are needed: the general framework developed by ODI and OECD can help, but ..

•Mechanisms need to be country-specific: no blueprints.

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Lessons learned (2)

• Difficult to make PCD operational and show results.

• Lack of knowledge and focus are still major impediments.

• Missing link with national strategies of developing countries, policy space is often the key.

• PCD is not an alternative for aid.

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Examples: success or failure?

Doha development roundClimate adaptation, the Copenhagen conference Duty free market access for least developed countiresAgriculture, subsidiesSecurity and development nexus, three D’sIntellectual property rights, the TRIPS+ agreementDebt restructuring arrangementsTax and illicit flowsMigration

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Challenges

• Create commitment at the global level: monitoring of multilateral rulemaking, MDG8, role UN.

• Highlight results and impact: developing indicators, accoutanbility.

• Keep focus in a broader development policy.

• Connect with the local and national level in developing countries.