IDC Unit I: International Development Cooperation 2024-2025 PDF

International Development Cooperation UNIT 1. WHAT IS INTERNATIONAL...

International Development Cooperation UNIT 1. WHAT IS INTERNATIONAL DEVELOPMENT COOPERATION? Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser Overview A. Notion of international development cooperation 1. Terminological issues 2. Notions of development and cooperation B. Origins and evolution of international development cooperation 1. Historical evolution of international development cooperation 2. Development cooperation in a globalized world Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser A. NOTION OF INTERNATIONAL DEVELOPMENT COOPERATION 1. Terminological issues 2. Notions of development and cooperation Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser What is International Development Cooperation? (I) Diccionario Panhispánico del Español Jurídico: “A set of actions undertaken by an advanced State in or with other backward countries for the purpose of providing assistance.” Cambridge Dictionary: Development aid is “money that rich countries give to poorer ones to help them develop (= increase their industry and economic activity and get richer).” Outdated notions of development cooperation/aid that fall short of today’s reality Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser What is International Development Cooperation? (II) International Cooperation for Development International cooperation for Development A collaborative relationship between public and/or private entities to Cooperation aimed at supporting work toward shared objectives national or international through a mutually agreed division development priorities. of labour. Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser What is International Development Cooperation? (III) Observatório da Cooperação Internacional para o Desenvolvimento: “Cooperation: An interaction and exchange relationship between two or more partner entities. Interaction occurs because of differences or similarities between actors. The exchange can be material or non-material. They are based on perceptions of potential importance for the participating actors. International: International cooperation is an aspect of international relations. The participant actors can be public or private: States, subnational entities, international and intergovernmental organizations, businesses, philanthropic institutions and other civil society actors. Development: International cooperation is intended to foster environmentally sustainable socio- economic development based on the 2030 Agenda adopted by the United Nations. The international cooperation mechanisms and practices must provide the means, capacities and knowledge that are needed to overcome the structural causes of poverty. Supports the permanent improvement of economic, social and cultural development levels in a fair, peaceful, balanced and sustainable manner in developing countries involving the joint efforts of public and private actors.” Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser Criteria of development cooperation According to Alonso & Glennie (2015), IDC meets the following four criteria: IDC aims to support national or international development priorities IDC is not driven by profit IDC discriminates in favour of developing countries IDC is based on cooperative relationships that seek to enhance developing country ownership Any activity with these characteristics may be considered IDC Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser Development aid or development cooperation? For long time, the term “development aid” was dominant “Development aid” is problematic Condescending connotation Implies hierarchical relationship between donor and beneficiary Indicates generosity on the part of the donor During 21st century, “aid” has been progressively replaced by “development cooperation” by policymakers and professionals Implies horizontal relationship between partner entities (partnership) Broader in scope (does not only include direct resource transfer) However, “development aid” continues to be used as a synonym for “development cooperation” (particularly in media) Real change or a case of old wine in new bottles? Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser A. NOTION OF INTERNATIONAL DEVELOPMENT COOPERATION 1. Terminological issues 2. Notions of development and cooperation Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser What is development? Process in which someone or something grows or changes and becomes more advanced In economic terms: evolution of an economy towards higher standards of living Understanding of development is constantly changing and depends on individual and collective values After WWII: development = achievement of sustained economic growth 1970s: Expansion of notion of development to include poverty reduction and other basic socio-economic needs (education, health, employment…) 1999: Amartya Sen, Development as freedom Post-2015 development agenda: economically, environmentally and socially sustainable development Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser Measuring development Different approaches have been developed to measure development (progress) Human Development Index (HDI) Developed by United Nations Development Programm (UNDP) in 1990 “Created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone” Measures development on a scale from 0 to 1 based on a) life expectancy at birth b) level of education (mean/expected school years) c) standard of living (gross national income per capita) Criticism: does not consider aspects such as freedoms, political participation, inequalities, security…. Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser Developed and developing countries (I) At a global level, major inequalities in the development of different countries persist According to their level of development, countries may be classified as developed countries and developing countries HOWEVER: no common methodology for classification exists UNDP: developed countries = top quartile of HDI distribution World Bank: gross national income (GNI) per capita (Low income, middle income, high income) Subgroups of developing countries: Least Developed Countries (LDCs), Heavily Indebted Poor Countries (HIPCs), Small Island Developing States (SIDS)… Distinction is increasingly being called into question Practicality? (huge differences between countries classified as “developing”) Lack of historical awareness (colonialism as root cause of “underdevelopment”) Western-dominated development concept questionable Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser Developed and developing countries (II) Developed countries Developing countries Least developed countries (LDCs) Source: Map by Allice Hunter, licenced under CC BY-SA 4.0. Map based on data from IMF and UN Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser Development cooperation No generally accepted definition for development cooperation exists BUT: for public development cooperation, certain standards have been developed Official Development Assistance (ODA) Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser Official Development Assistance (ODA) “Government aid that promotes and specifically targets the economic development and welfare of developing countries” (OECD) Developed by the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD) in 1969 “Gold standard” of development aid of DAC members To be considered ODA, any assistance must comply with a set of criteria Provided by official (public) agencies (State & local governments, executive agencies…) Destined to countries on DAC List of ODA recipients or multilateral development institutions Promotion of economic development and welfare of developing countries as main objective Concessional in nature Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser ODA: concessionality ODA transactions need to be concessional in nature Concessional: offered at a better rate than usual Accordingly, ODA may take form of: Grants: resources are provided free of interest and with no provision for repayment Soft loans: resources have to be repaid with interests, albeit on a below-market rate Minimum level of concessionality (minimum grant element) varies according to recipient country LDCs: 45 % Lower-Middle Income Countries: 15 % Upper-Middle Income Countries & multilateral institutions: 10 % Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser ODA: recipients Eligible recipients of ODA are included in two lists of the OECD DAC list of ODA recipients (for countries & territories) DAC list of ODA-eligible international organizations Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser ODA: numbers OECD: “ODA is main source of financing for development aid” (?) ODA is most stable external resource for developing countries 2023: 223.7 billion USD (2022: 211 billion USD) ODA 2023 (in billion USD) 70 60 50 40 30 20 10 0 United States Germany EU Institutions Japan UK Spain Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser ODA: only a part of the picture ODA does not reflect the full picture of IDC Only considers public/official flows (not private IDC) Today, non-DAC countries are also significant providers of IDC (new donors) Non-DAC ODA contributions 2022: Turkey: 7.1 billion USD, Saudi Arabia: 6.6 billion USD, United Arab Emirates: 1.4 billion USD Many of these countries do not use reporting mechanisms to the DAC or follow ODA standards Other Official Flows (OOF): official sector transactions that do not meet official development assistance (ODA) criteria Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser Beyond ODA: Total Official Support for Sustainable Development (TOSSD) (I) = international standard for measuring the full array of resources to promote sustainable development in developing countries. It is designed to monitor all official resources flowing into developing countries for their sustainable development, but also private resources mobilised through official means. More comprehensive standard of measurement for development financing Includes ODA, Other Official Flows, SSC, triangular cooperation, support to international public goods, private finance mobilised by official interventions Does NOT include: pure private financing, domestic resources Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser  Beyond ODA: Total Official Support for Sustainable Development (TOSSD) (II) Source: OECD, “TOSSD: Total Official Support for Sustainable Development”, https://www.tossd.org/what-is-tossd/. Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser B. ORIGINS AND EVOLUTION OF INTERNATIONAL DEVELOPMENT COOPERATION 1. Historical evolution of international development cooperation 2. Development cooperation in a globalized world Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser The roots of IDC Roots of idea of aid for development may be seen in context of colonialism Beginning of 20th century: emergence of notion of “colonial development” Colonial powers have responsibility to “civilize” colonized peoples/territories (“white man’s burden”) Justification of imperialist conquest (“civilizing mission”) Highly unequal, paternalistic and racist relationship Interwar period (1919-1939): mandate system of the League of Nations Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser The roots of IDC ARTICLE 22 COVENANT OF THE LEAGUE OF NATIONS To thoseof Roots colonies idea of and territories aid for which may development as a beconsequence of the seen in context oflate war have ceased to be under the sovereignty of the States which formerly governed colonialism them and which are inhabited by peoples not yet able to stand by themselves under the strenuous Beginning conditions of 20th century: of the modern emergence of notion world, there should be applied of “colonial the principle that the well-being and development of such peoples form a development” sacred trust of civilisation and that securities for the performance of this Colonial powers have responsibility to “civilize” colonized peoples/territories trust should be embodied in this Covenant. (“white man’s burden”) The best method Justification of giving practical of imperialist conquest effect to this (“civilizing principle is that the tutelage mission”) of such Highlypeoples unequal, shouldpaternalistic be entrusted and racistto advanced nations who by reason of relationship their resources, their experience or their geographical position can best Interwar period undertake (1919-1939): mandate this responsibility, and who system are willing of the toLeague accept of it, Nations and that this tutelage should be exercised by them as Mandatories on behalf of the League. Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser The beginnings of modern IDC Emergence of modern IDC can be dated to end of World War II International cooperation as a primary purpose of United Nations 1944: creation of International Bank for Reconstruction and Development (IBRD) & International Monetary Fund (IMF) (Bretton Woods institutions) 1948: launching of European Recovery Program (Marshall Plan) Creation of Organization for European Economic Co-operation (OEEC) 20 January 1949: Inaugural Address of President Truman 1950: US Congress adopts law allowing bilateral development agreements Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser  The beginnings of modern IDC Emergence of modern IDC can be dated to end of World War II InternationalPreamble cooperation as Charter of the a primary of purpose of Nations the United United Nations 1944: creation of International Bank for Reconstruction and WE THE PEOPLES OF THE UNITED NATIONS DETERMINED Development (IBRD) & International Monetary Fund (IMF) (Bretton Woods to save succeeding generations from the scourge of war, which twice in our lifetime has institutions) brought untold sorrow to mankind, and […] to promote 1948: social progress launching and better standards of European Recovery of Program life in larger(Marshall freedom, Plan) Creation AND FOR THESE of ENDS Organization […] for European Economic Co-operation (OEEC) 20 January 1949: Inaugural Address of President Truman to employ international machinery for the promotion of the economic and social 1950: US advancement Congress of all peoples, adopts law allowing bilateral development agreements Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser Fourth, we must embark on a bold new program for making the benefits of our scientific The beginnings of modern IDC advances and industrial progress available for the improvement and growth of underdeveloped areas. More than half the people of the world are living in conditions approaching misery. Their food is inadequate. EmergenceTheyof are victims of modern IDCdisease. can beTheir economic dated to endlifeof is primitive World War and stagnant. II Their poverty is a handicap and a threat both to them and to more prosperous areas. […] InternationalPreamble cooperation as Charter of the a primary of purpose of Nations the United United Nations I believe that we should make available to peace-loving peoples the benefits of our store of 1944:knowledge technical creation of International in order Bank to help them WE THE PEOPLES OF THE UNITED NATIONS DETERMINED for Reconstruction realize and their aspirations for a better life. And, in cooperation with other nations, we should foster capital investment in areas needing Development (IBRD) & International Monetary Fund (IMF) (Bretton Woods development. to save succeeding generations from the scourge of war, which twice in our lifetime has institutions) brought untold sorrow to mankind, and […] Our aim should be to help the free peoples of the world, through their own efforts, to produce to promote 1948: social progress and better standards of Program life in larger(Marshall freedom, Plan) more food, launching of more more clothing, European Recovery materials for housing, and more mechanical power to lighten their burdens. Creation of ENDS Organization for European Economic Co-operation (OEEC) AND FOR THESE […] 20 January We invite 1949: Inaugural other countries to pool their Address of President technological resources Trumanin this undertaking. Their to employ international machinery for the promotion of the economic and social contributions will be warmly welcomed. This should be a cooperative enterprise in which all 1950: US advancement Congress of all peoples, adopts law allowing bilateral development agreements nations work together through the United Nations and its specialized agencies whenever practicable. ItGrao must be a worldwide effort for the achievement of peace, plenty, and freedom. en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser IDC in the 1960s 1960s: development cooperation became priority of UN 1960-1970: First UN Development Decade (UNGA Res 1710 (XVI)) “Development is not just economic growth, it is growth plus change.” Developed countries should devote 1 % of combined national incomes to IDC 1960: Establishment of International Development Association (IDA), part of World Bank 1964: Establishment of UN Conference on Trade and Development (UNCTAD) 1966: Establishment of United Nations Capital Development Fund BUT: report of Pearson Commission (1969) found gap between developed and developing countries was growing wider Establishment of aid agencies/institutions on national level (Canadian Office for Foreign Aid (1960), US Agency for International Development (USAID, 1961)…) Much development aid was distributed according to political interests Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser IDC in the 1970s 1971-1980: Second UN Development Decade (UNGA Res 2626 (XXV)) “The ultimate end of development is to achieve a better quality of life for all, which means not only the development of economic and other material resources but also the physical, moral, intellectual and cultural growth of the human person.” Formal recognition of the 0.7 % target “Each economically advanced country will progressively increase its official development assistance to the developing countries and will exert its best efforts to reach a minimum net amount of 0.7% of its gross national product at market prices by the middle of the Decade.” During 1970s only four countries reach goal (Sweden, Netherlands, Norway, Denmark) 1974: Declaration on the Establishment of a New International Economic Order (UNGA Res 3201 (S-VI)) 1978: Buenos Aires Conference on Technical Cooperation among Developing Countries Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser IDC in the 1980s 1981-1990: Third UN Development Decade (UNGA Res 35/56) Integration of development within human rights framework 1986: Declaration on the Right to Development (UNGA Res 41/128) Art. 1: The right to development is an inalienable human right by virtue of which every human person and all peoples are entitled to participate in, contribute to, and enjoy economic, social, cultural and political development, in which all human rights and fundamental freedoms can be fully realized. Art. 3: States have the duty to co-operate with each other in ensuring development and eliminating obstacles to development. Art. 4: States have the duty to take steps, individually and collectively, to formulate international development policies with a view to facilitating the full realization of the right to development. But: “lost decade” for development Washington Consensus: free market, reduction of public spending, privatizations, deregulation, liberalization of trade… Stagnation and reduction of net IDC Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser IDC in the 1990s 1991-2000: Fourth UN Development Decade (UNGA Res 45/199) 1990: UNDP publishes first Human Development Report Mid 1990s: Emerging of a Post-Washington Consensus Focus on human development and poverty reduction International cooperation as cornerstone Multilevel governance, multistakeholdership, ownership, policy coherence Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser The 2000s: Millennium Development Goals and aid effectiveness 2000: UN Millenium Declaration (UNGA Res 55/2) Roadmap for international cooperation 8 Millenium Development Goals (MDGs) to be achieved by 2015 Commitment to grant “more generous development assistance” and to deal “comprehensively and effectively with the debt problems of low- and middle-income developing countries” Debates on how to ensure aid effectiveness High Level Forums on Aid Effectiveness (Rome 2003, Paris 2005, Accra 2008, Busan 2011) 2005 Paris Declaration on Aid Effectiveness Principles: ownership, alignment, harmonization, managing for results, mutual accountability Esta foto de Autor desconocido está bajo licencia CC BY-SA-NC Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser From 2015 onwards Post-2015 Development Agenda: 2030 Agenda for Sustainable Development “Sustainable development recognizes that eradicating poverty in all its forms and dimensions, combatting inequality within and among countries, preserving the planet, creating sustained, inclusive and sustainable economic growth and fostering social inclusion are linked to each other and are interdependent.” Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser B. ORIGINS AND EVOLUTION OF INTERNATIONAL DEVELOPMENT COOPERATION 1. Historical evolution of international development cooperation 2. Development cooperation in a globalized world Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser IDC in a globalized world Today, IDC maintains an important role in international relations Landscape, dynamics and underlying principles of IDC have changed profoundly Sustainable development as key objective of modern development cooperation IDC is not anymore exclusive realm of developed countries and development aid specialists New modalities (SSC, triangular cooperation, delegated cooperation…) and standards (e.g. TOSSD) have emerged Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser Bibliography Alonso, José Antonio & Glennie, Jonathan, “What is development cooperation?”, 2016 Development Cooperation Forum Policy Briefs, No. 1, February 2015. Grao en Relacións Internacionais | International Development Cooperation | 2024/2025 | Christoph R. Schreinmoser