A farewell to ODA?

Look who’s talking?

Jan Vanheukelom24 October 2013

It depends who is talking:• Donors in partner countries:• NGOs:• Partner country governments: • Partner country organised citizenry:• What about the voices of The Poor…And to whom: • Donor governments to their constituencies:

driven by ideas, mistrust, interests, politics..• Partner country governments to donorsAnd how:• Open? As Equals? With hidden agendas?

What is the perspective in receiving countries?

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Again the question: who is talking? Case studies European Report on Development

How important is ODA for them?

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Nepal Rwanda Cote d’Ivoire

Peru

Income status

LIC LIC Lower MIC

Upper MIC

ODA as % of GNI

4.7% 20.2% 6.2% 0.36%

Migrants in EU as %

4.1% 8.9% 9% 29.1%

Voices from governments• Nepal: the King, MDGs and ODA - DFID• Rwanda: a domestic contract - UVIN• Cote d’Ivoire: how sweet it is… • Peru: couldn’t care less – Voices from the poor: • Security• Dignity• Freedom to enterprise, market, move, own … When did ODA responded to such aspirations?• Burundi: police reforms• South Africa: the Ladies in Black

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It depends on : Who is talking The impact of a redefinition on volume

of ODA The quality of aid • Government of Uganda: • Or journalist in Uganda: critical of budget

support – • Government of South Africa• Civil society in SA• Government of Ethiopia• Opposition in Ethiopia: critical of all aid

How can they profit from a redefinition of ODA?

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Doomed to repeat the same mistakes with DF if we ignore the lessons from ODAWhat is it that we have learned from ODA?Some of my favorites (so I am talking)• Political dimensions in development have been

underestimated• There is some good diagnostics, but such a

slow uptake of the findings and messages • Shift to domestic actors and power plays• Shift from transactions to transformation• Shift in emphasis: Global Public Goods/Bads • Shift in emphasis: it’s not about us. •

A farewell to ODA? Welcome Development Finance (DF)?

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What has “AUSTRIA” learned from the ODA experience? • In terms of he ODA architecture?• What have been the effects of measuring

inputs? What about the outputs?• What about the goals?• How to achieve them?• Whatever we come up with in terms of

transfers• Understanding politics and institutions will

be crucial -

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Scenario 1: Do not stretch ODA definition but also report on other types of development finance• Broader aggregate (ODA is just one type and an

increasingly smaller share of FFD)• Other official flows = more inclusive picture:

Concessional & non-concessional flowsPublic & private flowsFrom both OECD and non-OECD countriesType of flows: investment, loans,…

• …But many of these flows do not meet the conditions for eligibility as ODA, either because they are not primarily aimed at development, or because they have a grant element of less than 25 per cent.

Annex: Possible scenario’s (from ECDPM ODA study 2012)

ECDPM Page 8

SCENARIO 2: Adapt ODA definition and reporting system

• Continue to focus on ODA alone but substantially revise its definition

• Do not focus on global FFD but broaden the ODA concept to incorporate climate change, security assistance, private flows

• Option could go against recent trends in policy discussion (such as Busan) in favour of more inclusive concept of development

ECDPM Page 9

1. Preference not to broaden ODA definition and scope

2. The current FFD reporting system (mainly revolving around the ODA target) is no longer fit for purpose (cfr Busan)

3. Need for measuring a more inclusive FFD picture Post 2015, including non-ODA types of FFD and contributions by non-OECD members

Key conclusions of the study

ECDPM Page 10

Useful (re)sousers• “Modernising the comparability of donor contributions post-

2015”, Keijzer, N., Spierings, E., Vanheukelom, J. (2012) ECDPM

• “Global Action for an inclusive and sustainable future”. The European Report on Development, Chapter 2 – country cases and political economy analysis

• In response to a radical proposal from Anges Deaton to do away with official aid, read Chris Blattman:http://chrisblattman.com/2013/10/17/is-aid-a-roadblock-to-development-some-thoughts-on-angus-deatons-new-book/

• “Aid as a second-best solution. Seven problems of effectiveness and how to tackle them”, Manning, R. (2012), UNU-Wider

www.ecdpm.orgPage 11