Is Equitable Aid Distribution Possible to Countries Under Extreme - - PowerPoint PPT Presentation

Is Equitable Aid Distribution Possible to Countries Under “Extreme Conditions”?

Fragile States Team

Elena Guzman Yasmeen Hayes Makousse Kone Luzmila Lambrano Amy Lee

The New School

Graduate Program in International Affairs

UNICEF

Introduction

 Fragile State  International Donor Community  Recommendations

Definition of Fragile State

 A government that does not have the

capacity, willingness or sovereignty to function in delivering basic public goods and services, safety and security to its population due to internal and/or external factors.

Photo: www.imi.org.uk/ conf2004/awards2004.htm

Characteristics of Fragile States

State Capacity State Willingness State Sovereignty

Loss of territorial and border control Lack of political commitment to poverty reduction and human rights Fragmented territory Inability to provide basic service and goods to the population Absence or lack of anti- poverty policies and social safety nets Dispersed population Poor governance and political power Partiality towards exclusive groups, elites

• r private sector

interests (TNCs) Foreign occupation Low competence in macroeconomic management ( low income per capita)

Recipient Entity Donor Behavior Instruments * Models

Aid and Fragile States

Harmonised Alignment Programme Aid Projects Global Funds Technical Cooperation Multi-Donor Trust Funds Social Funds, CDD Humanitarian Aid Joint Programmes Capacity Will Environment Recipient market economy (TNCs / Private Sector Donor Nations IFIs World Bank IMF ADB

Needs and Assessment

 Immediate  Service delivery  Crisis transition  Development  Poverty reduction strategies

Stages of Fragile States

Natural disaster Conflict Near collapse or collapsed gov. institutions Transition/ Post-Crisis Stabilization/ Effective State Crisis Intermediate Phase Stable Phase

Photo: World Photos.com

Aid Vehicles

Aid Selectivity Model

 Dominant paradigm of aid allocation

 Policy and institutional performance  Preference to countries that can use external

resources more effectively

World Bank Model

 Performance Based Allocation - CPIA

 Allocation per capita = f ( PR2.0 , GNIPC-0.125 )

Source: IDA 2003

World Bank Model

 LICUS (Low Income Countries Under Stress)

 Based on CPIA score with emphasis on policy, institutions

and governance

 Adds indicators: policy management capacity, service

delivery capacity and influence of citizens on government

 Cost of being LICUS

 Reduces annual growth rate by 2.3% when compared to

• ther developing economies

 Cost in overcoming this label can amount up to 4.6 times

the state’s GDP

 Chance of achieving a sustained turnaround is 1.8%  According to a model, states are likely to remain LICUS

for as much as 56 years

Nation Donor Models

 Australia, Japan: Help others to ensure own

security and prosperity

 France: Colonial linkages  Netherlands, Sweden, Switzerland: Poverty

reduction

 United States: Foreign

policy

Photo: World Photos.com

Markets – Transnational Corporations (TNCs)

 Exploitation of natural resources such

as oil, diamonds or other minerals

 Conflicting interests with donors and

government

 TNCs may have a positive impact

Photo: BBC News Polluting Nigeria Photo: Micah Goulart

Conclusion

 No correlation between the aid allocation processes

and actual conditions of a fragile state

 Diversity of processes by which aid is allocated does

not coincide to find a common ground with realities

• f a fragile state

http://www.fotosearch.com/PHT258/paa258000031/

 The two are facing opposite

directions: 1) Aid allocation seeking its prerequisites and demands 2) Fragile states seeking to survive, unable to fulfill these requirements

 Cleavage created between them

creates the lacuna that allows for their neglect within the aid distribution equation

Recommendations

 Country-specific approach  Leadership roles of fragile states  Appropriate and timely use of vehicles for

delivering aid

 Evaluate donors based on capacity, willingness

and flexibility and hold them accountable

 UNICEF seeks partnership with donors that

possess the best qualities

 Market and private sector strategies,  “name and shame”  Database of all elements of donor-fragile state aid

dynamics

Is equitable aid distribution possible to countries under “extreme conditions”?