A COMPARISION OF MANAGEMENT SYSTEMFOR DEVELOPMENT COOPERATION INOECD/DAC MEMBERS (OECD; 1999) By:- Ph.D. CHANG HYUN SIK, et all REVIEW OF CHAPTER 1, 2 & 3 PRESENTER: RAI (NEPAL) DEPARTMENT OF IDC 2010/10/13
OECD OVERVIEW• Originated in 1948 as Organization for European Economic Co- operation (OEEC).• Transferred as OECD in 1961 from OEEC.• Member countries – 33• Accession countries – 2 (Estonia, Russia)• Enhancement engagement countries – 5 (Brazil, China, India, Indonesia, South Africa)OECD PURPOSE- To build strong Economies in its member countries- Improve efficiency , hone market systems- Expand free trade & Finally Contribute to DEVELOPMENT in industrialized as well as developing countries.(Source; www.oecd.org)
* INTRODUCTION: AID DONORS* POLICIES AND STRATEGY* PUBLIC OPINION ON AID
INTRODUCTIONTHE NEED FOR AIDPROBLEMS:-• 3 Billion people live on less than $2 a day• More than 1 Billion live on less than $1• 1 & half Billion do not have access to Clean Water• 2 Billion people do not have access to Sewerage• 130 Million (Estimated) children are not attending school.• Environmental degradation• Migration, Drugs and Epidemic Diseases• World’s population will increase by 50% Over 50 yrs. (6 Billion to 9 Billion) – Developing countries.
DAC’s Vision of Development• Fostering self-reliance in countries where people are ultimately less in need of Aid.• Funding Public sectors (Health & Education etc.)• Funding private sectors (Enable them to develop)• Build up capacity to create and mobilize domestic resources and attract private capital flow
IMPORTANCE OF AID MANAGEMENTREASONS• To maximize aid effectiveness and impact• Issues at stake and the large sums of public money involved• To demonstrate good use of public money• To support and make aid stable, safe, participatory and societal
AID MANAGEMENT ISSUES• Public & Political support• Organizational Framework• International Context• Funding (levels, sources)• Allocation of funds• Project Implementation• Relevance, effectiveness, efficiency and Results• Monitoring & Independent review of Aid Program
PUBLIC & POLITICAL SUPPORT FOR AID IN DAC MEMBER COUNTRIESPublic manifestations of OECD in development related issues:-• Growth in social & environmental-responsible consumption and investment patterns• Awareness & concern issues on development cooperation (child labor, employment, climate change drug trafficking, disasters etc)• Participation in development related NGOs• Provision of Direct financial support to NGOs (Approx. $5 Bln each year)
FORMS OF FINANCIAL FLOWS TO DEVELOPING & TRANSITION COUNTRIESPRIVATE FUNDS• FDI• Bank lending• Bonds• Portfolio investments & grants (from voluntary agencies or NGOs)PUBLIC FUNDS• Official Development Assistance (ODA)• Official Aid (OA)• Other Official Flows (OOF)
POLICIES & APPROACHES UNDERPINNING DAC MEMBERS’ DEVELOPMENT CO-OPERATIONShifts in the intellectual underpinning for development cooperation1960s• Donors approached economic development largely in economic terms• Development cooperation did in some countries that assist to strengthen their infrastructure, build capacity, create wide range of institutions and move their economies forward (Korea, Singapore, Chinese Taipei)• Development Aid made outstanding achievements in Health (eg. Preventive Vaccination, maternal and child care, family planning)• Aid donors focused on eradication of fatal disease (Smallpox)Through ODA funded programs particularly in Africa.
1970s & Early 1980s• Development Assistance aimed at Basic Human Needs (BHN)• Improvement of Social condition of poorer people (Growth of Equity)• Development Cooperation did to assist Economic Reform (Fiscal management, Free Trade, Market-based development, Privatisation of state owned enterprises)
THE LATE 1980s & 1990s• Emphasis shifted to the overall Social and Political framework• Donors focused on Institutional problems• Poverty Reduction• Women In Development (WID) / Gender Equality• Human Rights• Good Governance• Environment, Population & Private Sector development• Less emphasis on infrastructure (More in software and less hardware)
SHAPING THE 21ST CENTURY• DAC Adopted in May 1996 a people- centered development partnership strategy4 Principal elements of strategy’s Framework:• A Shared Vision• Concept of Effective Partnership• Emphasis on Qualitative Foundations• Need for Coherence Between Aid Policies which Impact in developing countries
GOALS OF DEVELOPMENT PARTNERSHIP STRATEGYUN conferences held during 1990s have addressed subjects important to development• Education (Jomtien, 1990)• Children (New York, 1990)• Environment (Rio de Janerio, 1992)• Human Rights (Vienna, 1993)• Population (Cairo, 1994)• Social Development (Copenhagen, 1995)• Women (Beijing, 1995)• Human Settlements (Istanbul, 1996)• Food Security (Rome, 1996)>>The Principal goal is a reduction extreme poverty by one-half by 2015 <<
SUSTAINABLE POVERTY REDUCTION:THE PRINCIPAL GOAL OF DEVELOPMENT CO-OPERATIONWorld Bank’s World development Report 1990 proposed a 2 strategies for Poverty Reduction• Promote the productive use of the poor’s most abundant asset – labor and ensure that policies harness market incentives, social and political institutions, infrastructure and technology in support of that objective, and• Provide basic services to the poor, especially primary health care, family planning, nutrition and primary education>>> Reducing Poverty: Main Goal <<<
IMPORTANCE OF COHERENT, PRO-DEVELOPMENT POLICIES FOR POVERTY REDUCTION• Development Partnership strategy require fuller participation by developing countries in the Global economy. (Open Trade)• Donors play catalytic role by supporting developing countries’ efforts to build up sustainable economic, social and political systems.• DAC members development dimension policy include:-- A common vision for articulating and evaluating policies- An effective framework of inter-ministerial coordination within capitals- Research and analytical capacities to support efforts to improve development coherence of policies- Mechanism for consultation with CSOs promote consensus in societyEXAMPLES: THE NETHERLANDS, THE UNITED STATES (Coherent)
PUBLIC OPINION, INFORMATION AND DEVELOPMENT EDUCATIONTHE PUBLIC: STAKEHOLDERS IN DEVELOPMENT• Development co-operation is Government function : Seen by general public• Stakeholders as “clients” & “Shareholders”• Some DAC members acknowledge the role of general public their Aid programs, e. g. Ireland, US (USAID)
PUBLIC KNOWLEDGE ABOUT AID Is it important to have knowledge about Aid by public?• Example: Denmark – has sustained a ratio of ODA to GNP from 0.7 % (remained more than 20 years) to 0.97% Of GNP in 1997. It shows that strong public and political support on development assistance.INFORMATION DISSEMINATION• Information on Internet (program, annual reports, ministerial speeches, press releases, Aid policy statements, information on major recipients, country strategies, evaluation reports, statistics and details of Aid program)• Unpublished information about Aid program can also be obtained through the National “Freedom of Information” legislation that exists in some DAC member countries. (Ireland - National Committee for Development Education 1994, Japan – Plaza for International Co-operation, Tokyo 1993)
MONITORING PUBLIC OPINIONWhy it is Important ?• Some DAC member conduct regular public opinion polls about aid which provide an Indication of Fluctuation in the level of Public support over time.• OECD’s Development Centre and the Council of Europe’s North-South Centre jointly published Public Attitudes and International Development Co-operation 1998, which inter alia, presents Information on the findings from Public opinion polls and Development Education activities in each DAC members.
CONCLUSIONThe citizens of Donor and Receiver countries alike want guarantee that AID make available worth for money and should not be misused by corrupt governments, and Aid donor countries should focus on National Development Strategies, Institutions, Development action policies of the Receiving countries, However, Government of developing countries should make Transparent & Accountable roadmap to show their citizens that Aid is properly being used. THANK YOU !!
References Chang Hyun Sik etal; A Comparison of Management System For Development Cooperation in OECD/DAC Members (OECD; 1999), http://www.oecd.org/dataoecd/40/28/2094873.pdf Organization For Economic Co-operation & Development, www.oecd.org