GROWTH ECONOMICS and Fundraising in international cooperation SECSP

GROWTH ECONOMICS and Fund-raising in international cooperation SECS-P 01, CFU 9 Development Economics academic year 2018 -19 10. POLICIES FOR DEVELOPMENT AND GROWTH Roberto Pasca di Magliano Fondazione Roma Sapienza-Cooperazione Internazionale roberto. pasca@uniroma 1. it

Official Development Aid (ODA) evolution and global context More aid and new global actors 2015: Higher peak reached by OCSE-DAC with 135 bln$ Net ODA (+6, 1% respect to 2012) UK: 0, 7% GDP ODA in the 2015 fonte: OCSE DAC, 2012 Roberto Pasca di Magliano Titolo Presentazione CPA: fonte: OCSE DAC 2013 23/05/14 Pagina 2

Bilateral and multilateral ODA Roberto Pasca di Magliano Pagina 3

Aid effectiveness International focus on effectiveness and monitoring Global Partnership for Effective Development Cooperation Monterrey Consensus 2002 High-level Forum on Harmonization - Rome 2003 Paris Declaration 2005 Accra Agenda for Action 2008 (International Aid Transparency Initiative) Busan document 2011 (Fouth High Level Forum on Aid Effectiveness), South Corea “Global Partnership for Effective Development Cooperation”: • Forum of bilateral and multilateral donors, beneficiary and donor emerging economies, beneficiary countries, NGOs, civil society • Monitoring based on indicators selected in the 2005 Paris Forum • Reduction/fragmentation of aid • Predictability of aid flows Pasca di Magliano TPresentazione Pagina 4

ODA ineffectiveness in literature Short, medium, long period Conditional effectiveness (quality of institutions. . . ) or non-conditional Linear and non-linear models Non-significant impact on GDP per capita growth Roberto Pasca di Magliano Pagina 5

Italian engagement and reform Peer Review OECD 2015 fonte: OCSE DAC 2014 DEF engagement from 2013 +10% APS/year Guidelines annually updated Reform of the old law n. 49/1987 -> 2015 law fonte: OECD DAC 2014 Roberto Pasca di Magliano Titolo Presentazione 23/05/14 Pagina 6

Post-2015 debate: What to do? Millennium Development Goals only two have been reached within 2015 (1 e 2) Titolo Presentazione Roberto Pasca di Magliano /14 Pagina 7

New finalized objectives Ø Involvement of beneficiary countries in the development projects Ø Movement from donor-centered to recipientcentered Ø Improvement of partnership instead of one-way Ø Taking care of the coherency of aid policies Ø Increasing the coordination between donors (avoiding duplicates) ONU Open Working Group for Sustainable Development, with the following Sustainable Development Goals: Official negotiations in September 2014 identify 17/19 focus areas Titolo Presentazione Roberto Pasca di Magliano /14 Pagina 8

EU and Italy in the post-2015 debate → EC communication February 2013 “A decent life for all” (COM 2013. 92) → Council Conclusions June 2013 «An overarching Post-2015 Agenda» → EC Communication concerning the role of the private sector, 13 May 2014 → EC Communication to be held on 3 June 2014 Italian EU Presidency Priorities: Promotes shared positions within the EU Food security Sinergies Expo and II International Conference on Nutrition Southern Neighborhood (North Africa and Middle East) Pasca di Magliano Presentazione 23/05/14 Pagina 9

ODA and International Capital Flows of international capitals to the developing countries (1 trill. US$): FDI flows overcome the APS Pasca di Magliano Titolo Pagina 10

ODA and public-private partnership (PPP) WB and UN Agencies are studing a partecipation to the private sector in order to create development sinergies through PPP EU external cooperation (Blending-> miscela) Ø 168 projects since 2007 Ø € 1, 2 bln EU funds; € 32 bln investments GAVI Alliance: Italy is the main contributor Roberto Pasca di Magliano Titolo Presentazione Pagina 11

New mechanisms of financing Pull mechanisms Roberto Pasca di Magliano 23/05/14 Pagina 12

Pull mechanism in agriculture Centrality of Food security Development Goals – Post 2015 EXPO Miland 2015 International Year of Family Farming (FAO) Public-Private-Producers Partnership (PPPP) in agriculture (G 20 Summit Toronto 2010 - Canada, US, UK, Australia, Gates Foundation, Mexico, Italy, France) Effects → growing global demand (+60% 2050) → pressures of climate change → structure of global agricultural production (smallholders) Roberto Pasca di Magliano 23/05/14 Pagina 13

Pull mechanism examples from Africa → GAVI in Africa: 140 immunization campaigns 2000 -2012 GAVI fund 2001 - 2013 → Immunise Africa 2020 Leader's Declaration – 8 May 2014 (+US$ 700 millions co-financing GAVI of African governments) → PPPP IFAD 2006 in Uganda for palm oil → African Agriculture Fund (€ 150 mn, € 10 mn from EU) → SMEs Agribusiness Fund (€ 30 mn, € 15 mn EDF) → PPPP Results – Pilot projects: • Kenya, stocking in loco • Zambia, Bio strengthening • Nigeria, Aflatoxin control Roberto Pasca di Magliano [etc…] 23/05/14 Pagina 14

Conclusions: how to improve ODA in the future Ø Catalyzing role of the beneficiary country as a development promotor • • • Promote capacity building in potential beneficiary countries (transparent, credible and efficient institutional assets) through a precise finalization of transfers to international organs Support programs of local human capital improvement (access to basic needs as fundamental living standards such as fundamental rights, access to food, potable water, basic education and health) Introduce measures devoted to promote bottom-up development and to improve individual’s resposability (e. g. microfinance) rather the less efficient top-down policies Ø Open to positive relations with the private sector • • Promote public-private partnership through subsidized project financing, in function of the level of backwardness of the beneficiary country Extend counter trade projects to gather additional resources for local development projects Promote social investment funds with the support of international fundations as well multinational companies Promote investment funds based on immigrant saving to support development projects in the countries of origin TPasca di Magliano Presntazione 23/05/14 Pagina 15