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Development Co-Operation Report 2023

Label
Development Co-Operation Report 2023
Language
eng
Literary Form
non fiction
Main title
Development Co-Operation Report 2023
Nature of contents
dictionaries
Series statement
Development Co-Operation Report
Summary
In the last three years, multiple global crises and the growing urgency of containing climate change have put current models of development co-operation to, perhaps, their most radical test in decades. The goal of a better world for all seems harder to reach, with new budgetary pressures, demands to provide regional and global public goods, elevated humanitarian needs, and increasingly complex political settings
Table Of Contents
Intro -- Preface -- The OECD can help development actors navigate a changing landscape -- Foreword -- Acknowledgements -- Editorial -- Development co-operation in 2023: The times, they are a-changing -- Abbreviations and acronyms -- Executive summary -- Crises and geopolitical shifts are challenging the aid system but also opening an opportunity for it to change -- Staying relevant requires delivering on past commitments and responding to new calls for change -- With priorities changing, development actors must be more agile and adaptable -- Ways forward for the aid system (Infographic) -- Overview: Keeping development co-operation relevant and impactful amid daunting challenges -- Development co-operation under pressure to meet new demands amid crises -- Aid budgets and capacity are under unprecedented pressure as progress falters on the 2030 Agenda -- Reflections on the aid system point to constraints and opportunities to better address shared global challenges -- Ways forward for keeping development co-operation relevant and impactful -- Meeting finance commitments, unlocking progress -- Support locally led transformation in partner countries -- Modernise business models and financial management practices to align strategies, budgets and delivery -- Rebalance power relations and find common ground for partnerships -- References -- Notes -- Part I The political economy of aid -- Part I The political economy of aid -- 1 In my view: Development co-operation must tackle complex challenges better and protect the most vulnerable -- References -- Note -- 2 Development Strategies in a changing global political economy -- Key messages -- The problem: Challenges to international development co-operation -- Geopolitical effects -- The debt-infrastructure-sustainability nexus -- Security and stability threats -- Threats to multilateralismThe politics: Geopolitical competition also presents opportunities for development -- The policies: Do not overlook the power of domestic political economy -- Towards a new agenda for international development -- Address the global political economy challenge -- Improve co-operation among donors to prevent duplication of efforts -- Reinforce the value and legitimacy of multilateralism -- Greening international development co-operation -- In the context of growing power rivalries and polarisation, developing countries should strengthen regional development and security co-operation -- Address domestic political economy challenges -- Base development strategies on local strengths and structural transformation rather than focusing on deficiencies -- Developing countries themselves should engage stakeholders to develop a long-term vision within an institutional framework and leverage endogenous innovation to achieve long-term economic transformation -- Leverage the strengths of ODA in crisis situations and fragile contexts, using it to steer other resources, and increase transparency and accountability of ODA flows for the public and recipients -- Address transversal challenges -- Leverage the role of emerging technologies and the Fourth Industrial Revolution -- Give gender and youth the place they deserve in development -- Capitalise on the global private sector -- Conclusion -- References -- 3 In focus: Reforming climate finance -- Key messages -- Soaring climate costs underscore a critical need for "new and additional" finance -- Greater climate finance transparency can ensure promises are kept to the Global South -- Debt-free climate finance must become the norm -- Tracking gender-responsive finance is key to measuring impact and equity -- A new global climate finance goal is an opportunity to commit to climate justice -- References -- Notes4 In my view: The untapped potential of innovative financing and humanitarian organisations -- Reference -- 5 In my view: Is the aid sector racist? -- Note -- 6 In focus: Transitioning out of aid dependency in health -- Key messages -- Aid helps some health outcomes but perpetuates inefficiencies and dependency -- 1. Dependency on external finance leads low-income countries to deprioritise health in their own budgets -- Debt relief is not the panacea for low domestic spending on health -- 2. Power asymmetries in health financing undermine country ownership -- Transitioning to more equitable and locally accountable health financing -- 1. Shift aid from basic health services to global and regional public goods by 2030 -- 2. Shift strategic decision making to regional- and country-level forums -- 3. Stop conditioning aid on buying products and services from the donor country -- 4. Strengthen health expertise and supply chains developed by and for the Global South -- References -- Note -- 7 In my view: Are feminist foreign policies translating to real action? -- References -- Notes -- Part II Relevance in a complex system -- Part II Relevance in a complex system -- 8 Maximising official development assistance -- Key messages -- Snapshot of DAC members' performance against ambitions in the 2010s -- Delivering on financing commitments -- Global and domestic pressures impact the value of ODA and developing countries' resources -- ODA is a small government expenditure item but could be affected by a gloomy economic outlook -- For developing countries, the role ODA plays depends on other external flows, domestic resources and levels of debt -- Ripple effects of the strong US dollar on aid and developing countries' costs -- ODA levels have failed to reach international targetsAdoption of the 0.7% target has been uneven and budget cuts are hampering progress -- Practical and conceptual challenges undermine progress towards the 0.7% ODA/GNI target -- Targets can be interpreted as caps -- New financing targets could undermine ODA -- Perceptions regarding developing countries' capacity to spend ODA effectively to achieve development outcomes -- Challenges to the concept of the 0.7% ODA/GNI target -- Focusing on collective impact -- Responding to crises may have implications for ODA composition and focus -- ODA is not consistently allocated according to need -- DAC members have not achieved the ODA/GNI target for the LDCs -- Allocation of bilateral ODA has become more focused on middle-income countries -- ODA is not allocated according to poverty or inequality metrics -- Categorisations of need overlap while the use of allocation models is at an early stage -- Budget cuts, increased earmarking and lack of strategic engagement undermine the value of the multilateral system -- Improving ODA quality -- Concessional lending is an important ODA mechanism, but conditions should be closely monitored -- Budget support increased during the COVID-19 crisis, reigniting debates about impact, conditionalities and relevance -- ODA spending is spread out across many countries and dominated by low value projects -- Support to and through country systems is decreasing and focus on the political economy needs to be stepped up -- Untying ODA contributes to value for money and country ownership, but the urgency needed to overcome long-standing barriers is lacking -- Making the Recommendation more inclusive -- Taking policy coherence to the next level -- Identifying the focus of coherence efforts -- Designing arbitration mechanisms and understanding policy setsMeasurement approaches are yet to mature and their outcomes to be embedded in decision making -- Conclusion -- References -- Annex 8.A. Methodological note -- Annex 8.B. Synthesis of DAC statements on challenges to meeting commitments -- Annex 8.C. DAC members' commitment and progress towards the United Nations official development assistance target of 0.7% of gross national income -- Annex 8.D. DAC members' bilateral development finance institutions -- Notes -- 9 In my view: Reinventing official development assistance: From an Arlequin tapestry to a more inspiring Kandinsky-Kasse moment -- References -- Notes -- 10 In focus: Aid effectiveness in Afghanistan, Mali and South Sudan -- Key messages -- Aid did not make extremely fragile contexts more stable, capable or better governed -- Donors overestimate capacity and underestimate resistance by entrenched elites -- Development co-operation providers must mind the opportunity costs -- Rethink, reset and be realistic about what aid can truly achieve in fragile settings -- Note -- 11 In my view: Funding more proximately is not risky but not doing so is -- In ignoring local resources, the aid system disempowers the very communities it targets -- References -- Notes -- 12 In focus: Enablers of locally led development -- Key messages -- Stronger evidence on the benefits and challenges of locally led development is needed -- Long-term core funding is more likely to foster sustainable outcomes and local ownership -- Localisation also calls for support for diverse partnerships tailored to local conditions -- Providers need to reframe risks, shift institutional culture and build internal capacities -- Some providers are starting to progressively redress power imbalances -- Anticipating how localisation may shift local political and economic dynamics can help avoid common pitfallsCollective understanding of localisation, built on insights from experiences, would boost accountability
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