Policy  Coherence  for  Sustainable  Development:  Challenges  and  Opportuni<es  

Ebba  Dohlman,  Senior  Advisor  Policy  Coherence  for  Development,  OECD    

 

Lisbon,  Portugal  18  June  2015    

@OECD_PCD  

Web:  www.oecd.org/development/policycoherence    PCD  Pla>orm:  h4ps://community.oecd.org/community/pcd    

is an approach and policy tool to integrate the economic, social, environmental, and governance dimensions of sustainable development at all stages of domestic and international policy making.  

PCSD    

PCSD  -­‐  An  approach  and  policy  tool  

Source: OECD (2014) Better Policies for Development 2014: Policy Coherence and Illicit Financial Flows, OECD Publishing.

Main  Objec<v

es  

Foster  synergies  across  economic,  social  and  environmental  policy  areas  

Iden<fy  trade-­‐offs  &  reconcile  domes:c  policy  objec:ves  with  interna:onally  agreed  objec:ves  

Address  the  spillovers  of  domes:c  policies   SUSTAINAB

LE  DEV

ELOPM

ENT  1  

2  

3  

SeQng  &  priori<sing  objec<ves:  

Poli<cal  commitment  &  policy  statements  

Coordina<ng  policy  &  its  implementa<on:    

Policy  coordina<on  mechanisms  

 

Monitoring,  analysis  &  repor<ng:  

Systems  for  monitoring,  analysis  &  repor<ng  

 

A

C B

The  Three  Building  Blocks  for  PCD  

DEVELOPING  COUNTRY  

DEVELOPED  COUNTRY  

Spill-­‐over  effects    

(e.g.  suppressed  prices    

on  world  markets,  lowering  returns  to  developing  country  farmers)  

...which  affect  

...used  to  produce  

Policy  outcomes    

(e.g.  increase  farmers’  incomes)  

Policy  outputs              (e.g.  augment  produc:on)  

Policy    inputs    

(e.g.  price  support  and  subsidies  to  

agricultural  sectors)  

A  “do  no  harm”  approach  to  PCD  

Agricultural  policies  

High-­‐level  outcomes  (e.g.  reduce  poverty  and  hunger)  

Development  Coopera<on  Policy  

outcomes    (e.g.  increase  farmers’  incomes  in  developing  

countries)  

Policy  outputs              (e.g.  increase  produc:on  in  

developing  countries)  

Policy    inputs    

(e.g.  aid  to  support  agricultural  

development)  

Policy  coherence  for  Inclusive  and  Sustainable  Development  

ADVANCED  ECONOMIES  

OTHER  ACTORS  (e.g.  IOs,  private  

sector,  CSOs,  NGOs  )  

EMERGING  AND  DEVELOPING  ECONOMIES  

SUSTAINABLE  DEVELOPMENT  

High-­‐level  outcomes  

High-­‐level  outcomes    

High-­‐level  outcomes    

Policy  inputs    

Policy  outputs  

Policy  outcomes  

Policy  inputs    

Policy  outputs  

Policy  outcomes  

Policy  inputs    

Policy  outputs  

Policy  outcomes  

ECONOMIC  

SOCIAL  

ENVIRONMENTAL  

POLICY  EFFECTS  

SYSTEMIC  CONDITIONS  

Causal  rela:ons  Side  effects  

(+  or  -­‐)  

ENABLING  ENVIRONMENTS  

Monitoring  progress  on  PCSD  

Elements   Indicators  

Mechanism  for  Coherence   •  Public  commitment  •  Priori:es  and  a  specific  ac:on  plan  •  Inter-­‐ministerial  coordina:on    •  Capacity  to  analyse  policy  impacts  •  Analysis  of  policy  coherence  (specific  issues)  •  Monitoring  and  repor:ng  systems    •  Policy  efforts  

Policy  interac<ons   •  Access  to  resources  •  Efficiency  in  the  use  of  natural  resources  (energy,  land,  water,  mineral,  etc)  •  Sustainability  

Policy  effects   “Here  and  now”  dimension  •  Well-­‐being  indicators  (Nutri:on,  health,  labour,  educa:on,  etc.)  “Elsewhere”  dimension  •  ODA,    •  imports  from  less-­‐developed  countries  •  Migra:on  of  human  capital  •  Trans-­‐boundary  contribu:ons  to  footprints  on  land/water/carbon  •  Imports  of  energy/  mineral  resources  •  Exports  of  physical/  knowledge  capital  •  Foreign  Direct  Investment  •  Contribu:on  to  interna:onal  ins:tu:ons  “Later”  dimension  •  capital  stocks  (that  should  be  preserved  for  future)/long-­‐term  drivers  

(economic  capital,  natural  capital,  human  capital,  social  capital)  

PCSD  in  the  SDG  Framework  

SUSTAINABLE DEVELOPMENT GOALS (SDGs) GOAL ON MEANS OF IMPLEMENTATION (MOI)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Poverty Hunger Health Education Gender Water Energy Economy Industry Inequality Cities SCP Climate Oceans Ecosyst. Peace Finance Tech. Capacity Trade PCSD Partners. data, etc.

TAR

GET

S

1 2.1 6.1 7.1

2 2.2 6.2 7.2

3 2.3 6.3 7.3

4 2.4 6.4

5 2.5 6.5

6 6.6

7

8

9

10

11 Three Dimensions of Sustainable

Development in the SDGs

TAR

GET

S O

N M

OI a

2.a 6.a 7.a ENVIRONMENTAL

b 2.b 6.b 7.b SOCIAL

c 2.c ECONOMIC

d

 

17.4

6.4

7.2

SYNERGIES

TRADE-OFFS

3.3

ENABLERS

6.1

THE  WATER-­‐ENERGY-­‐FOOD  NEXUS  IN  THE  SDGs  

2.3

2.1

Institutional Mechanisms

Policy Interactions

Contextual Factors Effects COHERENCE  

Key  elements  for  tracking  progress  on  PCSD  

•  Poli<cal  Commitment  •  Coordina<on  Mechanisms  • Monitoring  systems,  analysis  and  repor<ng  

•  Policy  Objec<ves  •  Policy  Inputs  •  Policy  Instruments  

•  Enablers  •  Disablers  •  Precondi<ons  •  Unforeseen  events  

•  Effects  on  wellbeing  (“Here  and  Now”  dimensions)  •  Trans-­‐boundary  effects  (“elsewhere”  dimension)  •  Inter-­‐generaIonal  effects  (“later”  dimension)  

Ins<tu<onal  seQngs  and  processes  

Policy  design  and  formula<on  

Policy  implementa<on  

OECD  can  support  your  efforts  •  Strengthening  of  PCD  tools  –  Revision  and  expansion  of  the  PCD  

Framework  feedback  from  Finland  on  FS  module;  new  module  on  IFFs;  other  country  pilots  

•  Applying  a  PCD  lens  to  key  issues  –  PCD  Flagship  report      Thema:c  chapter;  chapter  on  na:onal  experiences;  emerging  PCD  issues;  towards  a  monitoring  matrix  

•  Developing  monitoring  tools  –  PCD  indicators    Food  security,  Illicit  financial  flows,  and  green  growth,  dialogue,  enabling  environment  

•  DisseminaIng  evidence-­‐based  analysis  –  New  policy  brief  series:  Coherence  for  Development  (CODE)    NTMs;  ITCs,  fisheries  and  aquaculture;  Responsible  Business  Conduct;  Compe::on  Policy  

•  Fostering  dialogue  and  knowledge  sharing  on  PCD  –  Strengthening  of  the  online  PCD  Pla]orm    New  func:ons;  virtual  task  teams;  pilot  dialogue  on  FS  in  collabora:on  with  a  Spanish  university  

Making  use  of  exis<ng  OECD  work  to  inform  coherent  policy-­‐making  

•  Indicators/datasets  that  indicate  policy  effort    ü  Trade  Facilita<on  Indicators  ü  Foreign  Direct  Investment  Restric<veness  Index  ü  Total  support  es<mates  for  fossil  fuels  ü  Most  produc<on-­‐  and  trade  distor<ng  support  to  agriculture  

 

•  Policy  instruments  to  create  enabling  environments  ü  Policy  Framework  for  Investment  ü  PISA  for  Development  ü  Guidelines  for  Mul<na<onal  Enterprises  ü  Private  Sector  Par<cipa<on  in  Water  Infrastructure  –  Checklist  for  Public  Ac<on  

•  Dialogue  tools  for  knowledge  sharing  ü  Global  Forum  on  Transparency  and  Exchange  of  Informa<on  for  Tax  Purposes  ü  Policy  Dialogue  on  Natural  Resource-­‐based  Development  ü  Regional  Networks  on  Corporate  Governance  of  State-­‐Owned  Enterprises  ü  Interna<onal  Low-­‐Carbon  Energy  Technology  Pla`orm  

 

Why  worry  about  illicit  financial  flows?                

0  

200  

400  

600  

800  

1,000  

1,200  

1,400  

1,600  

1,800  

ODA   Corrup<on   Money  Laundering   Tax  Evasion  (US  only)  

Why  is  coherence  important  for  addressing  IFFs?    Na:onal  Organisa:on  

Central  Bank   Finance  Ministry  

FIU  Tax  

Authority  

Jus<ce  Ministry   Foreign  Ministry  

Police  Development  

Agency  

Financial  and  Professional  Supervisors  

Specialised  Prosecutors  Asset  Recovery  Specialists  

Policy  Departments  

Opera<onal  Agencies  

Interna<onal  Coopera<on  Unit  

Financial  Ins<tu<ons  

Businesses  &  

Professions  Companies  

Customs  

Internal  Audit  Company  Registry  

Civil  Society  

Why  is  coherence  important  for  IFFs?  A  case  example  

Interna<onal  Coopera<on  

Unit  

Development  Agency  

Asset  Recovery  Specialist  

Police  

Origin  Decision  to  proceed  

Specialist  Prosecutor  

Foreign  Ministry  

Inves<ga<on  

Interna<onal  Coopera<on  

Unit  

FIU   Tax  Authority  

Criminal  Prosecu<on  

Specialist  Prosecutor  

Asset  Recovery  Specialist  

Banks  

Asset  Confisca<on  

Interna<onal  Coopera<on  Unit  

Development  Agency  

Asset  Repatria<on  

Foreign  Ministry  

StAR  Ini<a<ve