Matthias Giegerich, Director General, Strategic Corporate Development, GTZ 14th May 2008, Royal museum for Central Africa in Tervuren, Belgium

1. Development Cooperation
in a Changing Context
Challenges and Opportunities for
Technical Cooperation
Matthias Giegerich
Director General, Strategic Corporate Development,
Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ)
( )
Agriculture, Development, and the Poor: Challenges, Stakes, Opportunities, Royal Museum for Central Africa in Tervuren, Belgium May 14, 2008
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2. Structure
St t
1.
1 The Global Context
Conte t
2. What Does This Mean for Partner Countries?
3. Implications for Development Cooperation
4. How Is GTZ Responding to These Changes?
5. Illustrative Examples of Recent GTZ Work
6. Conclusion
6 C l i
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3. 1. The Global Context
Economic globalization drives the World closer together
unprecedented prosperity in certain parts of the world
in developed and developing countries
global markets are highly volatile and prone to shocks,
e.g. global finance and food markets
The “bottom-billion”
“losers” and those left out seem to be the negative side-effects of globalization
affected countries often linked with fragile conditions and violent conflict
Dominant production and consumption patterns are unsustainable
not viable for the whole world at current population growth rate
unsustainable ecological damage
Climate change
increasing droughts, floods and disasters
long-term changes in ecological and agricultural productivity
potential conflicts & migration
Competition for and conflicts about scarce natural resources have only just started
water
oil and minerals
pollution and ecological degradation
New security agenda
stabilization of fragile environments
terrorism and counter-terrorism
counter terrorism
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4. 2. What Does This Mean for Partner Countries?
For many countries achievement of MDGs is at risk
very likely that many countries will not achieve the MDGs
countries that made it by 2015 may backslide late
Some countries will benefit
from finding their niche and managing global market risks
from high export prices for natural resources, extractive industries (at least for some time)
Others will regularly experience negative repercussions
high import prices, consequences of climate change, instability, conflict etc.
In view of the structural “big picture” problems, more is needed than increased
development finance
Radical shift - in both developing and developed countries is needed
towards a truly global partnership, involving a very broad set of actors (private, public, civil society,
think tanks, regional etc.), new policy fields, multilateral agreements etc.
Strengthened global governance and policy coherence in developed countries
go ernance polic de eloped co ntries
expanded & reinvigorated multi-lateral agreements
more “enlightened” national legislation and greater policy coherence
Structural changes in developing countries
improvements in governance & development orientation,
orientation
improved capacity for policy reform, systemic resilience to shocks, social protection
enhanced voice, also at international level
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5. 3. Implications for Development Cooperation
3 I li ti f D l tC ti
Global relevance of ODA diminishes vis-à-vis other sources of finance
foreign direct investments, remittances
non traditional
non-traditional aid channels (non-DAC donors, private foundations)
(non DAC donors
Scaling up of aid (while necessary) is only part of the solution
we have to think beyond financial resources for national poverty reduction strategies
“Big picture problems” require political answers
gp p q p
multi-lateral agreements and their implementation at national/ local level
domestic political interests enter the stage
global business interests as well
From development cooperation to international cooperation for sustainable
development
Other domestic policy fields become involved or take the lead
e.g. security: external affairs; defense
e.g. food markets: agriculture, consumer protection
e.g. climate change: environment
e.g.
e g internal affairs: migration
e.g. in 2001 about 13 out of 15 German Federal Ministries maintained external relations
“sectoralization” of ODA: only about 70% of German ODA is executed by BMZ
New roles and functions occur while making use of experience and comparative
advantage of development cooperation
coordination of policy fields (national and multilateral) and coalitions of actors (e.g. PPP, foundations)
conveying standards of development cooperation, passing on of experience and operational know-how
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6. 4. How Is GTZ Responding to These Changes?
Our „mission“: International cooperation for sustainable development
Economic growth for more prosperity
Equal opportunities for rich and poor, North and South, men and women
Natural resource use for the benefit of present and future generations
4 main business lines
Capacity development
Networking & dialogue platforms
Management & logistics services
Policy advise for German Ministries and other clients
e.g. Non-DAC Donors, partner countries
Business volumes show trend towards diversification
about 63% from BMZ
6% from other Federal Ministries
6% co-financing from other donors
23% GTZ-IS commissions from other donors, financial institutions, foundations and partner countries
Trusted principles of how we work: as relevant as ever!
Holistic:
Systemic and multi-actor (local, regional, national, global) and cross-border approaches;
linking of sector expertise, organizational development and policy advice
Process-oriented:
facilitating partner without own agenda; supporting negotiating processes of societal actors in search
of own solutions; professional change management oriented towards results
Value orientation:
human rights, good governance, transparency and democracy, gender and poverty reduction
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7. 5. Illustrative Examples of Recent GTZ Work
Public Private Partnership-Project „Cotton made in Africa“
a multi-actor, multi-level collaboration along the “cotton value chain”
Comprehensive Africa Agriculture Development Program (CAADP)
support to policy and investment planning at African, regional and country level
Secretariat of the Global Donor Platform for Rural Development
facilitating harmonization of donor approaches and joined learning for more effective
and efficient rural development
Global Micro-Credit Facility (under preparation on behalf of private foundation)
Micro Credit
going to scale by transferring tested approaches and experiences to new development
actors
Restructuring of Police Force in Afghanistan
improving security on b h lf of f i ministry and i collaboration with EUPOL
i i it behalf f foreign i i t d in ll b ti ith
Twinning to Strengthen the National Audit Office in Bulgaria
facilitating peer support for EU-accession members
Regional Project to Combat HIV/AIDS in Latin America and the Caribbean
multi-actor, multi-country support to scale-up tested Brazilian program in other countries
of the region
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8. Public Private Partnership-Project „Cotton Made in
Africa“
Problem Statement
In Sub-Saharan Africa 20 million people live on the cultivation of cotton.
Low world market prices, subsidies, delayed payment of smallholders and often
bad working conditions reduce the contribution of cotton to poverty reduction.
Cultivation methods are often not sustainable.
Conventional approaches to introduce social and eco labels did not have expected
eco-labels
broad impact.
What is our Role?
Supporting development of an integrated value chain from cotton towards
clothing production.
creating business linkages between African countries (Benin, Sambia und
Burkina Faso) and trade interests of big retailers (Tom Tailor, OTTO).
supporting farmers with ecologically adapted production methods.
Promoting ecologically and socially sustainable cotton production in Sub-Saharan
Africa.
Contributing to tangible improvement of smallholders’ income through “fair prices”
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9. Comprehensive Africa Agriculture Development
Programme (CAADP)
Problem Statement
Insufficient food security in many African countries.
in terms of both availability and affordability and ensuring access of the poor to
adequate food and nutrition.
Low productivity and unsatisfying annual g
p y y g growth rates in agriculture, in p
g , particular of
small-scale farmers, and insufficient integration and access of farmers to global
markets.
No coherent strategic representation of partner countries in agricultural science and
technology development.
Uneven use of environmentally sound production methods and sustainable
management of the natural resource base.
t f th t l b
What is our Role?
Providing support and technical assistance to the (fully African-owned) CAADP at
different levels – Pan-African level (NEPAD / AU), RECs, national level.
( ), ,
Enhancing capacities of NEPAD and selected RECs to implement regionally
coordinated, coherent agricultural policies (in particular, agribusiness, CAADP Pillar II).
Joint approach of GTZ and InWEnt, based on the existing cooperation within the
framework of NEPAD, AU and RECs and multi-donor support.
Support to mediating, Linking and integrating local, regional and p
pp g, g g g , g pan-African policy
p y
levels.
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10. Secretariat of the Global Donor Platform for Rural
S t i t f th Gl b l D Pl tf f R l
Development
Problem Statement
854 million people are subjected to food insecurity and hunger, most of them live in rural areas.
Low public investments in agriculture and rural development: we may miss MDG 1 (poverty
reduction).
Unsustainable use of natural resources; future challenges by climate change.
Need to enhance harmonization among donors in the area of rural development to reduce
transaction costs, coordinate approaches and improve impact.
The Global Donor Platform for Rural Development
What is our Role?
Hosting and managing the secretariat of the Global Donor Platform.
Expertise of GTZ for financial and administrative matters, as well as conceptual-strategic
E ti f f fi i l d d i i t ti tt ll t l t t i
and policy advise on agriculture, aid effectiveness and international cooperation.
Facilitating policy harmonization by means of:
Shared learning regarding standards and innovative approaches.
Enhancing coherence of policies by establishing communication, networking and
facilitation
f ilit ti mechanisms b t
h i between ddonor programs.
Coordinated dialogues at partner country level; fostering linkages with key stakeholders
(e.g. private sector, NGOs, academics) towards an improved cooperation.
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11. Restructuring of Afghanistan‘s Police Force
Since 2002, bilateral German assistance for rebuilding the police force in Afghanistan
Since June 2007 establishment of an EU police mission in Afghanistan
EUPOL AFGHANISTAN within the framework of the European Security and Defence Policy (ESDP)
The mission aims at coordinating the contributions of European members and other states for reforming and rebuilding
the national police force
Problem Statement
Lack of a consistent police reform strategy in Afghanistan
Too many donors „in the field“, lacking coordination and coherence of activities.
EUPOL AFG is solely responsible for consulting Afghan security authorities
EUPOL AFG does neither maintain own implementation structures nor the authority to receive donor funding for
Police development
development.
Role of the GTZ
Coordination of German contributions with EUPOL AFG
Promoting a shift from supply-driven international cooperation towards greater demand-responsive assistance to
supply driven demand responsive
the police sector in Afghanistan.
Establishment of a co-financing platform for other donors
Supporting the political coordination and design of the programme
Planning, coordination and implementation of programme modules (training, organisational issues)
Management of construction work and procurement of technical equipment
Overall: Contribution to make international assistance for police sector more demand-oriented, effective and
sustainable!.
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12. Twinning to Strengthen the National Audit Office
in Bulgaria
Problem Statement
Bulgarian legislation did not comply with EU directives on auditing and contracting
Insufficient management and administrative capacity of the National Audit Office (head
office and regional offices)
Our Role
GTZ Twinning office located in Germany‘s Ministry of Finance supports all institutions
g y y pp
and Ministries interested in twinning
Financed by the EU the Spanish and German court of audit support Bulgaria‘s National
Audit Office in the areas of
legislative reform, introduction of new instruments (e.g. economic efficiency
audits) and extensive training
GTZ Twinning provides (i) project management, (ii) administrative and finanical
services to twinning partners and (iii) catalyzes networking, exchange of experience
and knowledge management
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13. GTZ’s Regional Project of Combat against HIV/AIDS in
Latin America and the Caribbean
Problem statement
Since the mid-1990s Brazil has been able to stabilize its AIDS prevalence rates through a
successful program to combat the disease.
The program is based on prevention, access to free treatment and human rights
campaigns; it supports a decentralized nationwide network of counseling and treatment
centers.
t
In many Latin American, African and Asian countries, there is growing interest and demand for
cooperation in this area with Brazil.
What is our Role?
Facilitating experiences: Brazil, GTZ and the partner countries, e.g. Peru, El Salvador,
Dominican Republic (Triangular cooperation) collaborate together to extend experiences in
Brazil’s successful anti-AIDS-policy to other countries.
Establishing networks between the countries, governments and the NGOs.
Strengthening operational capacity of the International Centre for Technical Cooperation
(CICT) together with DfID to elaborate national solutions for the global HIV/AIDS pandemic.
Professional management and joint development of projects with partner countries in
Latin America and the Caribbean.
Training for medical staff, training for NGOs, training and equipment for laboratories.
Establishing patient registers and a control system for the logistics of medical supplies.
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14. 6. Conclusions
„Big picture“ problems bring other policy fields, new actors and domestic interests
onto the stage.
From classical development cooperation with one partner country, mostly
country
government/ executive branch centered.
To international cooperation for sustainable development.
International cooperation is shaped b diff
I i l i i h d by different policy fields, government departments
li fi ld d
and multi-lateral institutions/ agreements
Implementation of international cooperation entails new roles and functions for
development cooperation agencies
For GTZ, as provider of TC services, new tasks, modes of delivery and collaboration
arrangements occur
building
b ildi on th l
the long-standing experience, approaches, i t
t di i h intervention k
ti know-how
h
from development cooperation with partner countries
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