By Robert Sauder The plan for today Introduction who are we and what do we want to learn A quick stroll through quite complex material There were many actors and many contexts in play over the past fifty years ID: 934709
Download Presentation The PPT/PDF document "A History of International Development P..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
A History of International Development Policy
By Robert Sauder
Slide2The plan for today
Introduction – who are we and what do we want to learn?
A quick stroll through quite complex material. There were many actors and many contexts in play over the past fifty years.
Periodic opportunities to engage instead listening to the ‘talking head’
Slide3Primary themes of the session
International development policy:
Has moved from simple to complex models
Features a series of failed experiments and slow learning
Fads visible at every stage
Current situation represents several dramatic shifts from the past
Slide4Historical Frame: four main stages
Post-war and de-colonization era: modernization and industrialization 1940s - ‘60s
Humanization and a focus on poverty 1970s
Neoliberalism, re-structuring and transition 1980s and ‘90s
Millennium Development Goals, Paris and Accra and beyond
Post script: what about today?
Slide5Post-war and de-colonization era – the Modernization and industrialization period 1940s - ‘60s
Key features of the historical era:
Reconstruction after world war II
World Bank and IMF established at Bretton Woods Conference 1944
United Nations officially created in 1945
Universal Declaration of Human Rights adopted in 1948
Cold war heats up – spheres of influence drawn
Re-drawing of borders in late colonial era
Birth of EU economic and political arrangements
Canadian International Development Agency (CIDA) created in 1968
Booming economy in the West
Modern industrial technological growth
Scientism
Civil rights movement and democratization
Multiple independence and anti-colonial movements
Slide6The stages of growth
Key features of development policy thinking:
Modern management and science will do it
Technical assistance and agricultural extension
Large role for planning
Nationalist elites and rise of
s
tatism
to build institutions
Large role for Western aid funds and expertise
Tied
aid
policies
are
common
Need
to move
beyond
colonialism
but
acceptance
of
foreign
policy
interests
as
a basis for
aid
Slide7Modernization Theory
L
inear stages of development
Slide8Typical programs
Bilateral
loans
and
grants
Agricultural extension
Volunteer Sending:
PeaceCorps
and CUSO were both established in 1961
Financing
for infrastructure
projects
Canada
focused
on
transportion
and power
generation
Canadian
aid
was
focused
on Commonwealth
Carribean
, Commonwealth
Africa
and Francophone
Africa
F
ood and
commodity
aid
Slide9Activity: debate about tied aid
Be it resolved: tied aid is an effective development strategy that brings advantages to both the donor and the recipient.
Slide10Classic arguments on tied aid
Disadvantages for Recipient Country
Discourages local economic growth and can devalues commodities
Not cost effective
Restrict
choice for recipient country
Ownership of aid is solely in control of donor country
Often results in inappropriate technologies e.g. tractors that can’t be maintained
Advantages for Donor Country
S
upports producers and increases export revenue of donor country
Donor country has more control over content, quality and manufacturing of aid
Builds long term industrial relationships
Slide112. Humanization and a focus on poverty, the 1970s
Key features of the historical era:
Rapid de-colonization but cold war even hotter
Fragile and captured states common
Growing liberalism in the West
Leftist as opposed to socialist
Cultural relativism and rejection of Western dominance
Oil price rise and economic contraction
Slide12Whose voice is being heard?
Key features of development policy thinking:
Dependency theory – centre vs. periphery; aid as imperialism
Growth interest in local context – PRA
Appropriate technology
Need for long-term investment in capacity and social services – a human needs focus
Goal of 0.7 % of GNI as aid
Concern about brain drain
Rural poverty as the key challenge
Slide13Dependency Theory
Core
vs. P
eriphery
Slide14Typical programs
Bilateral loans and grants
Technical assistance
Rural development
Cooperatives and networks
Capacity development
Slide15Activity: discussion on the value of including local voices
What are the main challenges in listening to and empowering local views on development?
Are local views sufficient to move the development agenda forward?
Slide163. Neoliberalism and re-structuring 1980 – 90s
Key features of the historical era:
Economic slowing and shocks
P
otential collapse of states due to debt
Cold war reaches crescendo
Increased control of global economic institutions World Bank, IMF
etc
G8 as a political factor in development
Slide17Tensions between neo-liberal and progressive approaches
Key features of development policy thinking:
World systems theory, post-modernism and globalization
Bloated public sector institutions vs. classic development theory
Rise of national
development
planning
E
mergence
of global coalitions on key challenges
e.g
. HIV/AIDS, vaccines,
etc
Corporate
social
responsibility
Recognition of key
role
of
gender
Civil society and non-
government
organizations
seen
as key
development
actors
Rights
based
approaches
Systems
model
e.g
.
health
Micro credit –
Grameen
Bank
Slide18Typical programs
Implementation of “Washington Consensus”: fiscal discipline, reduced public spending, open markets, trade liberalization
Structural Adjustment programs: World Bank loans to developing countries under condition of government reform
Microfinancing
Continued investments in social services like education and health
Use of
n
on-government organizations (NGOs) in many domains of development
Slide19Structural Adjustment Programs
Typical stabilization policies comprise:
balance of payments deficits reduction through currency devaluation
budget deficit reduction through higher taxes and lower government spending, also known as austerity
restructuring foreign debts
monetary policy to finance government deficits (usually in the form of loans from central banks)
raising food prices to cut the burden of subsidies
raising the price of public services
cutting wages
decrementing domestic credit.
Long-term adjustment policies usually include:
liberalization of markets to guarantee a price mechanism
privatization, of all or part of state-owned enterprises
creating new financial institutions
improving governance and fighting corruption
enhancing the rights of foreign investors vis-à-vis national laws
focusing economic output on direct export and resource extraction
increasing the stability of investment (by supplementing foreign direct investment with the opening of domestic stock markets).
Criticisms:
Sovereignty, privatization, austerity
Slide20History of the Grameen
bank
In
1976
Professor Muhammad
Yunus
launched an action research project to examine the possibility of designing a credit delivery system to provide banking services targeted at the rural poor. The
Grameen
Bank Project (
Grameen
means "rural" or "village" in Bangla language) came into operation with the
goal
of e
xtending
banking facilities to poor men and women:
eliminate the exploitation of the poor by money lenders;
create
opportunities for self-employment for the vast multitude of unemployed people in rural
Bangladesh;
bring
the disadvantaged, mostly the women from the poorest households, within the fold of an organizational format which they
can
understand
and manage by themselves;
and
reverse
the age-old vicious circle of "low income, low saving & low investment", into virtuous circle of "low income, injection of credit, investment, more income, more savings, more investment, more income".
Today
Grameen
Bank is owned by the rural poor whom it serves. Borrowers of the Bank own 90% of its shares, while the remaining 10% is owned by the government.
The
r
epayment rate is very high.
Slide21Micro Credit – a powerful innovation
Throughout 15-year history of the
Grameen
Foundation:
9.4 Million
of the world's poor have been helped by our MFI partners, enabling them to begin their journey out of poverty.
More than 1.2 Million
new borrowers have received microloans because of our
Growth Guarantees
program.
$225 Million i
n local currency has been leveraged through the Growth Guarantees program to support microfinance programs for 28 poverty-focused organizations in 13 countries .
More than 200,000
poor, rural farmers have been helped by more than 1,100
Community Knowledge Workers
(CKWs) in Uganda.
22% higher prices
were earned by farmers who had access to a CKW, compared with those who didn't, while these farmers' knowledge levels rose by 17%.
Leaders of over 270 anti-poverty program
have improved their strategy for meeting the needs of the poor by turning to real, objective poverty data from the
Progress out of Poverty Index
®
, a simple poverty measurement tool available in 46 countries.
More Than 100,000 hours
have been contributed by more than 700
Bankers without Borders
®
volunteers in 600 projects worldwide -- a contribution of in-kind services worth $5.5 million.
Slide22Activity: what are the
disadvantages
of using NGOs?
NGOs have been put forward as an alternative to bilateral (donor to government) aid for several reasons:
Motivated to do social good in a particular sphere
Strong local connections and cultural credibility
More trustworthy than potentially corrupt or inefficient governments
More cost-effective (cheaper) and can be held accountable to donors
NGOs can act in consortia to achieve higher impact
BUT are NGOs the magic bullet?
Slide233B: 1990s
– donor fatigue but signs of transition to new models
ODA peaked in 1992 at a high of $17 billion and then fell to $12 billion in 1999
SAPs were replaced by Poverty Reduction Strategies, which aimed at reversing the negative effects of a decade of Structural Adjustment on welfare and social conditions. Many African countries embarked on at least two generations of PRSPs, mostly to ensure eligibility for debt relief
.
Human Development Report and Human Development Index
Heavily Indebted Poor Countries Initiative
Changing the model from aid to cooperation
Education for All – 1990
Rio conference on climate change – 1992
UN Women Conference in Beijing, rights of the girl child – 1995
Rights-based development model
Slide24OECD Trends in Official Development Assistance
- Totals for Development Assistance Committee of OECD
Very few countries have met the 0.7% target
In 2013, Canada spent 0.27% of its GNI on ODA
Slide25Looking at all dimensions of development
The Human Development Index (HDI) is a composite index that measures the
average achievements
in a country in three basic dimensions of human development
:
•
a long and healthy life – as measured by life expectancy at
birth
•
knowledge – as measured by
mean years of schooling and expected years of schooling for
primary, secondary and tertiary
schools
•
a decent standard of living – as measured by Gross
National Income (GNI) per capita
in purchasing power parity (PPP) US dollars.
Slide26Education for All
The Education for All movement is a global commitment to provide quality basic education for all children, youth and adults. The movement was launched at the World Conference on Education for All in 1990 by UNESCO, UNDP, UNICEF and the World Bank. Participants endorsed an 'expanded vision of learning' and pledged to universalize primary education and massively reduce illiteracy by the end of the decade.
Ten years later, with many countries far from having reached this goal, the international community met again in
Dakar
, Senegal, and affirmed their commitment to achieving Education for All by the year 2015. They identified six key education goals which aim to meet the learning needs of all children, youth and adults by 2015.
As of 2014, still 75 million children not in school
Slide27Activity: discussion of education for all (EFA) as a development strategy
Is universal primary education sufficient for development to happen?
How should we measure quality of education?
Slide284. Millennium Development Goals, Paris and Accra
Key features of the historical era:
Continuing
democratization
Many
states
making
the transition to
majority
rule
Arab
spring
Rise of a multi-pole power structure
BRICS,
especially
China
New calls for
better
global
governance
but no
obvious
replacement visible to the UN
Neo
-cold
war
emerging
e.g
. Ukraine,
Syria
, South
Asia
Food
insecurity
Economic
shocks
e.g. Finance crisis in 2008 Climate change concerns become prominent
Slide29Aid
effectiveness
and
governance
are
primary
concerns
Key
features
of
development
policy
thinking
:
Continued
belief
in focus and global collective action
GAVI – the Vaccine Alliance
IAVI – International AIDS Vaccine Initiative
New agenda for
evidence
Randomized
controlled
trials
Systematic
reviews
and impact
evaluations
Targets
and
metrics
OECD no longer dominant in
development
thinking
New concerns about fragile and conflict-affected statesNeo-statist model returns
Slide30Slide31Millenium Development Goals
Slide32MDGs progress to date – the example of Africa (2013 report)
On track: MDG 2 – Achieve universal primary education; MDG 3 – Promote gender equality and empower women; MDG 6 – Combat HIV/AIDS, TB, malaria and other diseases; and MDG 8 – Global partnership for development.
Off track: MDG 1 – Eradicate extreme poverty and hunger; MDG 4 – Reduce child mortality; MDG 5 – Improve maternal health; and MDG 7 – Ensure environmental sustainability. Yet, some countries recorded appreciable progress.
Importantly, the report argues that Africa must put structures in place to sustain its development well beyond the MDG timeline.
Highlights
Poverty reduction lags behind growth
Inequality is undermining efforts to reduce poverty
Attending primary school is becoming the norm, but the quality of education remains a challenge
Progress toward gender parity is encouraging
Despite good progress, Africa still has the greatest burden of child and maternal deaths
Africa has halted the spread of HIV/AIDS, tuberculosis and malaria
Mixed progress on ensuring environmental sustainability
Food insecurity is a recurring challenge
Slide33What is the Paris Declaration?
1. Ownership:
Developing countries set their own strategies for poverty reduction, improve their institutions and tackle corruption.
2. Alignment:
Donor countries align behind these objectives and use local systems
.
3. Harmonisation:
Donor countries coordinate, simplify procedures and share information to avoid duplication.
4. Results:
Developing countries and donors shift focus to development results and results get measured.
5. Mutual
accountability:
Donors and partners are accountable for development results.
Slide34What is the Accra Action Agenda?
Ownership:
Countries have more say over their development processes through wider participation in development policy formulation, stronger leadership on aid co-ordination and more use of country systems for aid delivery.
Inclusive partnerships:
All partners - including donors in the OECD Development Assistance Committee and developing countries, as well as other donors, foundations and civil society - participate fully.
Delivering results:
Aid is focused on real and measurable impact on development.
Capacity development
- to build the ability of countries to manage their own future - also lies at the heart of the AAA.
Slide35Canada’s ODA Accountability Act
The ODA Accountability Act came into force on June 28, 2008
It ensures that Canadian aid is focused on poverty reduction and consistent with aid effectiveness principles
Under the Act, ODA must:
Contribute to poverty reduction;
Take into account the perspectives of the poor;
Be consistent with international human rights standards
Slide36Post script: w
hat
about
today
?
Development
landscape
is
changing
dramatically
Business arrangements vs.
Aid
Acceptance
of
private
sector
roles
– P3s,
Development
Finance
Insitutions
Increased
focus on
income
inequality
and
inequality
of
opportunity
Post-2015
discourse
is
very activeGlobal Partnership emerges: OECD DAC/UNDP share secretariatThe new philanthropy – Foundations playing large rolesNew definitions of Official Development Assistance under discussion – what is concessional finance?New interest in innovation for development purposesGrand Challenges model
Advance
market
commitment
Discourse
around
‘Dead
Aid
’
Slide37A new picture
of
financial
flows
Foreign
direct
investment
and
remittances
dwarf
aid
flows
Slide38Migration is changing significantly – 2013 flows
South - South:
82.3 (36
%)
South - North
: 81.9 (35
%)
North – South
13.7 (6%)
North – North:
53.7 (23
%)
Slide39Humanitarian Assistance
Humanitarian Assistance remains a vital aspect of development
Recent emphasis on encouraging disaster resilience; the ability for communities to manage shocks and stresses without weakening their prospects for long-term development
There are currently 102 million people who require humanitarian assistance and five emergencies that are classified as L3 for being at the highest emergency level: Syria, Iraq, Central African Republic, South Sudan and
Phillippines
(Typhoon
Haiyan
)
Slide40Cooperatives – new partnerships with the private sector
The Global Development Co-operative (GDC) was launched in New York in November 2011 and aims to support co-operative businesses in developing countries by raising USD 50m to provide access to low cost loans for capital and infrastructure projects.
The
GDC has been developed by the UK’s The Co-operative Bank – part of the world’s largest consumer co-operative - and the Alliance.
Amongst those who have already pledged their financial support for the initiative include the All China Federation of Supply and Marketing Co-operatives, Credit
Cooperatif
of France, SOK Corporation from Finland and IFFCO of India. Mid-Counties Co-operative as well as The Co- operative Bank from the UK who have also pledged their support.
Slide41The Bottom Billion – Paul Collier, 2007
Development traps
The book suggests that, whereas the majority of the 5-billion people in the "developing world" are getting richer at an unprecedented rate, a group of countries (mostly in Africa and Central Asia but with a smattering elsewhere)
are stuck and that development assistance should be focused heavily on them. These countries typically suffer from one or more development traps.
The Conflict Trap: Civil wars (with an estimated average cost of $64bn each) and coups incur large economic costs to a country.
The Natural Resource Trap: Countries that are rich in natural resources are paradoxically usually worse off than countries that are not.
Resources make conflict for the resources more likely.
Natural resources mean that a government does not have to tax its citizens resulting in less financial accountability for the government.
Dutch disease: where a country's other industries become less competitive as a result of currency valuation due to the revenue raised from the resource.
Landlocked with Bad Neighbours: Poor landlocked countries with poor neighbours find it almost impossible to tap into world economic growth.
Bad Governance in a Small Country: Terrible governance and policies can destroy an economy.
Slide42New in Canada - DFATD
CIDA was merged into the Department of Foreign Affairs and Trade in 2013 to form the Department of Foreign Affairs, Trade and Development (DFATD)
The development portion of the department targets 80% of its ODA on 25 focus countries
It is focused on five priority areas:
Sustaining sustainable economic growth
Increasing food security
Securing the future of children and youth
Advancing democracy
Promoting stability and security
Slide43Conclusion: development policy is organic and ever-evolving.
Many development ideas were decades in the
making:
Global responses to humanitarian disasters
We are the World 1985 for Africa relief >>> Haiti earthquake
Volunteer
sending and
technical assistance
Support for developing world research capacity
Cooperatives
Public
private partnerships on
infrastructure
National ownership of development
There are
many
positive achievements but remember how difficult development is to do