The key role of development cooperation in making the world a safer - - PowerPoint PPT Presentation

The key role of development cooperation in making the world a safer place

Romilly Greenhill

Team Leader Development Finance

7th April 2016

What role for development cooperation?

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So where should development cooperation be spent?

• Focus on countries and regions in which

– Need is greatest, particularly to LNOB – Ability to mobilise other resources is lowest 4

Where is need greatest?

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Ability to mobilise domestic resources

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Revenue capacity available (50%) Aid available (50%) Social compact cost

Available public finance and social compact costs (LICs)

Somalia Malawi Burundi Central African Republic Congo DRC Liberia Niger Madagascar Guinea Ethiopia Eritrea Gambia Uganda Guinea-Bissau Togo North Korea Mozambique Rwanda Tanzania Burkina Faso Mali Sierra Leone Afghanistan Nepal Benin Haiti Zimbabwe Bangladesh Kenya Cambodia Tajikistan Chad Myanmar Mauritania

$ per annum per person 100 200 300

@ODIdev #FtF2015

New challenges can take resources away from this group of countries

• Climate change: 61% of $30bn Fast Start Financing to

mitigation

• Refugee spending putting pressure on aid
• Security focus can skew aid allocation, including

within the fragile states group

• 16% drop in aid to LDCs in 2014

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We also need to spend development cooperation better

• Not just ‘business as usual’, but a new consensus

– Ownership, alignment and speed – More ‘politically smart’ approaches to aid delivery – Better risk management – Longer-term approaches – Less long-term reliance on short-term humanitarian channels

• These requirements pose challenges for current

‘results agenda’ and aid scepticism 8

A new multilateralism

• Strong case for using multilaterals, especially in

fragile states – Capacity to take on and spread risks – Longer-term perspective and longer-term results – Less politicised – More selective – More predictable

• But multilaterals need to be reformed

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Conclusions

• A new agenda, and new challenges – but should not

lose focus on the core purpose of ODA

• Real tensions between new agendas and ODA

allocation

• Keeping the focus on LDCs and fragile states does not

mean ‘business as usual’

• Need a new ‘politically smart’ consensus on

development effectiveness

• A new multilateralism

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ODI is the UK’s leading independent think tank on international development and humanitarian issues. We aim to inspire and inform policy and practice to reduce poverty by locking together high-quality applied research and practical policy advice. The views presented here are those of the speaker, and do not necessarily represent the views of ODI or

• ur partners.

Overseas Development Institute 203 Blackfriars Road, London, SE1 8NJ T: +44 207 9220 300

www.odi.org.uk r.greenhill@odi.org.uk