Presentation by Jan Vanheukelom and Anna Knoll on the findings of the European Report on Development 2013 at the Ministry of Foreign Affairs, Helsinki, 24 April 2013

1. European Report on
Development 2013
HELSINKI
24 April 2013

2. CONTENT
1. Context to the ERD and the subject
2. Approach and key features of the ERD
3. Key findings
4. Key messages: conclusions and
recommendations
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3. 1. WHY THE POST-2015 DEVELOPMENT
AGENDA? CONTEXT FOR THIS ERD
• MDGs are up for renewal/revision by 2015
• MDGs most successful attempt at global
collective action to reduce global poverty
• Yet flaws and shortcomings
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4. • And the world has moved on:
– New players and new challenges
– Including financial and economic
crises, terrorism, climate change
– New incentives for global collective action
– New insights (on poverty, politics in
development, etc.)
– Example: Durban BRICS Summit
• Unique moment to:
– Reshape global development agenda
– Reflect on roles, positions and actions of EU, EU
member states, etc.
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5. 2. SET-UP AND APPROACH OF THIS ERD
• Research and “production” set-up:
– On “newness” and usefulness
– Steering Committee
– Three development institutes
• Innovations:
– country case studies (mix of poorer and richer countries)
– Stronger emphasis on political dimensions of development
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6. • In response to new context:
– Move beyond aid
– Move beyond MDGs
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7. Contents of the ERD 2013
INTRODUCTION
PART I. KEEPING THE PROMISE OF THE MILLENNIUM DECLARATION
Chapter 1. Lessons from the MDG experience
Chapter 2. What the MDGs have meant for poor countries - four case studies
Chapter 3. The European Union and the MDGs
PART II. THE CHANGED CONTEXT FOR A NEW GLOBAL DEVELOPMENT FRAMEWORK
Chapter 4. The changing global community
Chapter 5. Changes in the understanding of global poverty
Chapter 6. Future challenges - some trends and projections
PART III. AN INTERNATIONAL FRAMEWORK FOR DEVELOPMENT
Chapter 7. Money: Development finance
Chapter 8. Goods: Trade and investment
Chapter 9. People: Labour migration
CONCLUSIONS AND RECOMMENDATIONS
Chapter 10. Constructing the Post-2015 agenda
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8. Beyond
MDGs
&
Beyond
Aid
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9. 3. KEY FINDINGS OF THE ERD 2013
Flows of
• People: Labour Migration
• Money: Development Finance
• Goods: Trade and Investment
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10. Development Finance
Need more finance and greater range of sources
• ODA levels must be maintained and increased
– Use in focused and catalytic manner
• Diversify use of new development financing
mechanisms and use in targeted manner
• South-South Cooperation
– Strengthen contribution and increase transparency
• Domestic resource mobilisation fundamental
– Efforts should be supported
• Improve international financial stability
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11. Country case study experiences
• Nepal: Remittances key to MDG progress, use of ODA
constrained by donor doubts on government capabilities
and political flux
• Rwanda: ODA as budget support
• Côte d’Ivoire: Good fiscal discipline so domestic resource
mobilisation high, external support valuable to restore
confidence
• Peru: Fiscal revenue key, ODA minor yet keen on
knowledge sharing
• SSC: Gave variety and additional opportunities in all cases
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12. Trade and Investment
• Focus on marginalized and vulnerable LICs/LDCs
– Ways to help them reduce ODA-dependence
• Pursue structural economic transformation
– Creation of productive employment key
• Support to move up global value chains
– Promoting modern-sector exports
– Reducing vulnerabilities to external shocks
– Enhancing productive investments
– Improving global coordination on investment policies
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13. Country case study experiences
• All four countries need to increase economic
diversification and strengthen investment
• Nepal: investment levels low and economy
has not joined global value chains
• Côte d’Ivoire: commodity dependency made
economy vulnerable to price fluctuations
• Rwanda: seeking to attract FDI
• Peru: boom based on mineral extraction
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14. Labour Migration
• Transformative experience for individuals
• Focus on low-skilled labour – link with poverty
• Impact on poverty & socio-economic development
• Low-skilled labour migrants need support
– Often lack access to jobs and rights not protected
• Receiving countries development also benefit
• Post-2015: establish international regimes
– Enforce migrants’ rights and better labour migration
governance
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15. Country case study experiences
• Nepal: 20% of decline in poverty (1995-2004)
attributed to remittances
– But: social problems and rights of migrants not well
protected
• Côte d’Ivoire: migrants from region contributed
to economic growth in 1960s+70s
– But during crisis: increased pressure on land and
ethnic divisions stirred up by populist politics
• Peru: migrants are returning + followed by young
Europeans
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16. 4. KEY MESSAGES AND
RECOMMENDATIONS (1)
A NEW GLOBAL DEVELOPMENT FRAMEWORK IS
NEEDED
• Build on the Millennium Declaration
• Learn from the MDGs (monitoring architecture and framing
potential)
• Move beyond the MDGs and embrace climate
change, multi-faceted poverty, etc.
• Anchor it in country specific realities: adapt goals and
instruments/tools
• Don’t underestimate the dimension of fragility
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17. 4. KEY MESSAGES AND
RECOMMENDATIONS (2)
A BROADER SET OF GOALS: INCLUSIVENESS AND
SUSTAINABILITY
- Poverty reduction remains central
- But providing social provisions does not alter the
underlying causes of poverty
- Environmental sustainability won’t come
automatically
- These dimensions ought to be reflected in targets
and indicators
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18. 4. KEY MESSAGES AND
RECOMMENDATIONS (5)
SUPPORT COUNTRY POLICY CHOICES AND
DEVELOPMENT PATHS
- Invest in solid diagnoses and analysis of domestic
realities
- We know more about two Ps in poverty: power and
politics
- Reality check: four country cases – domestic political
economy
- What are the incentives – external and internal – that influence
political choice and behaviour?
- How states earn income is a key factor determining policy
choices – and roles of political elites
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19. - Such country specific knowledge may help
- Solve a riddle: why this gap between theory and practice?
- Help adjust engagement strategies – margins of maneuver
- “avoid the blind spots of the past” (Rodrik and
Rosenzweig)
- Political economy of donors, as trading and economic
partners
- Solve another riddle: why the gap between theory and
practice (bis)
- Transparency and global financial governance
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20. 4. KEY MESSAGES AND
RECOMMENDATIONS (6 & 7)
A BROADER SET OF INSTRUMENTS
• MDGs narrowly associated with ODA
• First: a host of new sources of (public and private sector)
development finance
• Secondly, there is a range of policies, standards and
regulations beyond aid:
• On trade, investments, financial flows, transparency, migration
etc.
• Example: illicit financial flows - averse political incentives and impact
on domestic tax policies
• Policy Coherence for Development
• Support for domestic resource mobilization (taxation)
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21. 4. KEY MESSAGES AND
RECOMMENDATIONS (9)
INTERNATIONAL COLLECTIVE ACTION TO IMPROVE
INTERNATIONAL REGIMES IN
- Trade
- Financial regulation
- Migration
- Climate change
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22. THANK YOU FOR YOUR ATTENTION
For more information about the ERD
ERD website http://www.erd-report.eu/
ERD Secretariat- EUROPEAID-EDR-SECRETARIAT@ec.europa.eu
To contact the authors of the ERD 2013
Jan Vanheukelom– jvh@ecdpm.org
Anna Knoll– ak@ecdpm.org
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