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Launch of the European Report on Development 2013 in Finland


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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

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Launch of the European Report on Development 2013 in Finland

  1. 1. European Report onDevelopment 2013HELSINKI24 April 2013
  2. 2. CONTENT1. Context to the ERD and the subject2. Approach and key features of the ERD3. Key findings4. Key messages: conclusions andrecommendations6/10/2013 2
  3. 3. 1. WHY THE POST-2015 DEVELOPMENTAGENDA? CONTEXT FOR THIS ERD• MDGs are up for renewal/revision by 2015• MDGs most successful attempt at globalcollective action to reduce global poverty• Yet flaws and shortcomings6/10/2013 3
  4. 4. • And the world has moved on:– New players and new challenges– Including financial and economiccrises, terrorism, climate change– New incentives for global collective action– New insights (on poverty, politics indevelopment, etc.)– Example: Durban BRICS Summit• Unique moment to:– Reshape global development agenda– Reflect on roles, positions and actions of EU, EUmember states, etc.6/10/2013 4
  5. 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 development6/10/2013 5
  6. 6. • In response to new context:– Move beyond aid– Move beyond MDGs6/10/2013 6
  7. 7. Contents of the ERD 2013INTRODUCTIONPART I. KEEPING THE PROMISE OF THE MILLENNIUM DECLARATIONChapter 1. Lessons from the MDG experienceChapter 2. What the MDGs have meant for poor countries - four case studiesChapter 3. The European Union and the MDGsPART II. THE CHANGED CONTEXT FOR A NEW GLOBAL DEVELOPMENT FRAMEWORKChapter 4. The changing global communityChapter 5. Changes in the understanding of global povertyChapter 6. Future challenges - some trends and projectionsPART III. AN INTERNATIONAL FRAMEWORK FOR DEVELOPMENTChapter 7. Money: Development financeChapter 8. Goods: Trade and investmentChapter 9. People: Labour migrationCONCLUSIONS AND RECOMMENDATIONSChapter 10. Constructing the Post-2015 agenda6/10/2013 7
  8. 8. BeyondMDGs&BeyondAid6/10/2013 8
  9. 9. 3. KEY FINDINGS OF THE ERD 2013Flows of• People: Labour Migration• Money: Development Finance• Goods: Trade and Investment6/10/2013 9
  10. 10. Development FinanceNeed 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 financingmechanisms and use in targeted manner• South-South Cooperation– Strengthen contribution and increase transparency• Domestic resource mobilisation fundamental– Efforts should be supported• Improve international financial stability6/10/2013 10
  11. 11. Country case study experiences• Nepal: Remittances key to MDG progress, use of ODAconstrained by donor doubts on government capabilitiesand political flux• Rwanda: ODA as budget support• Côte d’Ivoire: Good fiscal discipline so domestic resourcemobilisation high, external support valuable to restoreconfidence• Peru: Fiscal revenue key, ODA minor yet keen onknowledge sharing• SSC: Gave variety and additional opportunities in all cases6/10/2013 11
  12. 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 policies6/10/2013 12
  13. 13. Country case study experiences• All four countries need to increase economicdiversification and strengthen investment• Nepal: investment levels low and economyhas not joined global value chains• Côte d’Ivoire: commodity dependency madeeconomy vulnerable to price fluctuations• Rwanda: seeking to attract FDI• Peru: boom based on mineral extraction6/10/2013 13
  14. 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 migrationgovernance6/10/2013 14
  15. 15. Country case study experiences• Nepal: 20% of decline in poverty (1995-2004)attributed to remittances– But: social problems and rights of migrants not wellprotected• Côte d’Ivoire: migrants from region contributedto economic growth in 1960s+70s– But during crisis: increased pressure on land andethnic divisions stirred up by populist politics• Peru: migrants are returning + followed by youngEuropeans6/10/2013 15
  16. 16. 4. KEY MESSAGES ANDRECOMMENDATIONS (1)A NEW GLOBAL DEVELOPMENT FRAMEWORK ISNEEDED• Build on the Millennium Declaration• Learn from the MDGs (monitoring architecture and framingpotential)• Move beyond the MDGs and embrace climatechange, multi-faceted poverty, etc.• Anchor it in country specific realities: adapt goals andinstruments/tools• Don’t underestimate the dimension of fragility6/10/2013 16
  17. 17. 4. KEY MESSAGES ANDRECOMMENDATIONS (2)A BROADER SET OF GOALS: INCLUSIVENESS ANDSUSTAINABILITY- Poverty reduction remains central- But providing social provisions does not alter theunderlying causes of poverty- Environmental sustainability won’t comeautomatically- These dimensions ought to be reflected in targetsand indicators6/10/2013 17
  18. 18. 4. KEY MESSAGES ANDRECOMMENDATIONS (5)SUPPORT COUNTRY POLICY CHOICES ANDDEVELOPMENT PATHS- Invest in solid diagnoses and analysis of domesticrealities- We know more about two Ps in poverty: power andpolitics- Reality check: four country cases – domestic politicaleconomy- What are the incentives – external and internal – that influencepolitical choice and behaviour?- How states earn income is a key factor determining policychoices – and roles of political elites6/10/2013 18
  19. 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 andRosenzweig)- Political economy of donors, as trading and economicpartners- Solve another riddle: why the gap between theory andpractice (bis)- Transparency and global financial governance6/10/2013 19
  20. 20. 4. KEY MESSAGES ANDRECOMMENDATIONS (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 andregulations beyond aid:• On trade, investments, financial flows, transparency, migrationetc.• Example: illicit financial flows - averse political incentives and impacton domestic tax policies• Policy Coherence for Development• Support for domestic resource mobilization (taxation)6/10/2013 20
  22. 22. THANK YOU FOR YOUR ATTENTIONFor more information about the ERDERD website Secretariat- EUROPEAID-EDR-SECRETARIAT@ec.europa.euTo contact the authors of the ERD 2013Jan Vanheukelom– jvh@ecdpm.orgAnna Knoll– ak@ecdpm.org6/10/2013 22