50 years of Indo-German Development Cooperation

Transcription

1 50 years Indo-German Development Cooperation 50 years of Indo-German Development Cooperation 1

2 Towards faster and more inclusive growth Published by: Embassy of the Federal Republic of Germany 6/50G Shantipath, Chanakyapuri, New Delhi , India Printed at: Ajanta Offset and Packagings Pvt. Ltd. B-95 Wazirpur Industrial Area, Delhi , India Copyright October 2008 Cover Photo: Geohumus 2 50 years of Indo-German Development Cooperation

3 Contents Foreword by Heidemarie Wieczorek-Zeul, Minister for Economic Cooperation and Development of the Federal Republic of Germany Foreword by P. Chidambaram, Minister of Finance of the Republic of India Foreword by Bernd Muetzelburg, Ambassador of the Federal Republic of Germany to India Starting Points India s 11 th Five-Year-Plan ( ) Common Goals Guiding Principles Selected Milestones The Three Priority Areas Energy Environment Sustainable Economic Development Other Programmes and Instruments German Players Non-Governmental Organisations, Churches and Political Foundations 50 years of Indo-German Development Cooperation 3

4 Foreword by Heidemarie Wieczorek-Zeul Minister for Economic Cooperation and Development of the Federal Republic of Germany Indo-German development cooperation during the past 50 years has been very successful in shaping the relationship between our two countries. During that time, we have always managed to adapt our cooperation effectively to changing demands and new global challenges. When we started 50 years ago, the focus of our cooperation was on industrial development and the transfer of technological know-how. Later, poverty reduction, basic needs and rural development became important dimensions of our development policy. Today, the political, economic and geopolitical importance of India reflects India s development. India plays a crucial role not only with regard to economic and political stability in South Asia but also when it comes to finding solutions to global structural challenges such as climate change, environmental degradation and poverty reduction. Therefore, Germany regards its development cooperation with India as a form of global structural policy. The common aim of our cooperation today is thus twofold: to contribute to the achievement of the Millennium Development Goals and to help find solutions to global challenges such as energy supply, environmental degradation and climate change. Another important aspect of our cooperation is that it helps to empower women or indigenous people and to reinforce social and economic rights. Linking those principles to the development focus of the Indian government, we have agreed to focus our cooperation in the future on three priority areas: energy, environment and sustainable economic development. The Indo-German Energy Forum, which was established in 2006 by our two governments, is a good example. First of all it shows the importance which both our governments attach to economic cooperation in the field of energy. In addition, we also believe in the great potential of such a forum to further extend our political, technical and business-to-business cooperation in the fields of energy efficiency, renewable energy sources, and sustainable energy policies. In the past, several development cooperation programmes such as the Indo-German Watershed Program have helped to shape national sector policies and have been replicated by the Government of India. Based on our existing comparative strengths, our cooperation will also concentrate in future on measures that achieve the greatest possible structural impact and foster innovation. The Indo-German Energy Programme or our cooperation with the National Bank for Agriculture and Rural Development are just two examples. Sector policy reforms, the exchange of experiences and a dialogue on system-wide solutions will thus shape our cooperation in the future too. After 50 years of successful cooperation together with our Indian partners, we want to continue to work towards a sustainable energy supply, towards environmental protection, towards inclusive and sustainable growth in India, and towards a world free of poverty. AFP picture/alliance/dpa 4 50 years of Indo-German Development Cooperation

5 Foreword by P. Chidambaram Minister of Finance of the Republic of India It is a matter of great satisfaction that Indo-German Development Cooperation has completed 50 years of its successful journey. Official Development Assistance has played a useful role in poverty alleviation and in improving the quality of life of billions of people worldwide. Particularly for India, with its large population, Development Assistance from Germany helped address the needs of India in infrastructure development, poverty alleviation and environment protection. I am glad that bilateral development cooperation between India and Germany has played a facilitating role in augmenting the bilateral relationship in general. The current priority areas of sustainable economic development, energy efficiency and environment protection and natural resources management are extremely relevant in current times. I am sure that the spirit of cooperation and partnership, as in yesteryears, will be witnessed in joint development and implementation of development projects in India in the coming years as well. 50 years of Indo-German Development Cooperation 5

6 AFP Visiting India in October 2007, German Chancellor Angela Merkel met women of self-help groups promoted by Indo-German Development Cooperation years of Indo-German Development Cooperation

7 Foreword by Bernd Muetzelburg Ambassador of the Federal Republic of Germany to India In 2008 we celebrate 50 years of Indo-German development cooperation. It has a rich history which dates back to the 1950s when India and Germany started to build the steel plant in Rourkela, Orissa. Later, our countries developed the IIT Madras. India is a different country today. As the importance of external financing has become less important for India in recent times, the value added through development cooperation lies in the know-how and expertise that Germany shares with India in our three jointly agreed focal areas of development cooperation: energy, environment and sustainable economic development. Lately, the issue of climate change has a growing role also in our portfolio. I am proud that Germany is one of the few bilateral partners India chooses to jointly work for India s future in the field of development cooperation. Development cooperation remains an important dimension of our strategic partnership: first, we pursue common goals. India and Germany are equally committed to achieving the Millennium Development Goals and to making economic growth more inclusive, be it on a national or global scale. Furthermore, we want to tackle global challenges in the field of climate and environment. This was also emphasised during the visit of the German Chancellor Angela Merkel in October In addition, development cooperation is also an opportunity for sharing know-how. Our concepts in waste water treatment, supercritical technology for generating power, vocational training, Clean Development Mechanism (CDM), methods for environmental planning or our rich Mittelstand - experience in supporting small and medium-sized enterprises can add value to the priorities laid out in India s Five-Year-Plan. Development cooperation is also simply a field where Indians and Germans meet and work together. Since we need to have a joint understanding before we start on any given programme, we need to listen to each other, understand the partner s perception and learn about intercultural differences. This has contributed to India and Germany becoming friends and strategic partners. The 50 th anniversary of Indo-German development cooperation is an excellent opportunity to thank all of our Indian partners, in particular our colleagues in the Ministry of Finance, Department of Economic Affairs (DEA) for many years of harmonious and fruitful cooperation. Our close and successful cooperation in the past strengthens and deepens Indo-German relations for the future. 50 years of Indo-German Development Cooperation 7

8 Starting points for Indo-German Development Cooperation India plays an important role in Asia and beyond: ÊÊ India experiences rapid and strong economic growth and is one of the most important emerging economies ÊÊ India has asserted growing geopolitical significance as a major power in the Asian region ÊÊ India s role as a geopolitical player in international fora (like UN or WTO) is being acknowledged more and more by the international community ÊÊ Neither poverty reduction nor global challenges like climate change can be tackled without India: The MDGs cannot be achieved without India India is also confronted with major challenges (examples): ÊÊ Social and regional disparities: Up to 27.5%* of the population is still classified as extremely poor ÊÊ Quality and speed of public service delivery could be even further enhanced ÊÊ Growing energy needs and an increasing demand for energy efficiency ÊÊ Severe environmental degradation * Indian Government estimate Photos (left to right): istockphoto, picture-alliance/dpa, picture-alliance 8 50 years of Indo-German Development Cooperation

9 India s 11 th Five-Year-Plan ( ) The Guiding Document for Indo-German Development Efforts Some of the Targets ÊÊ To accelerate growth rate of GDP from 8 to 10% ÊÊ To create 79 million new work opportunities ÊÊ ÊÊ ÊÊ To raise real wage rate of unskilled workers by 20% To increase the literacy rate for persons of age 7 years or more to 85% To increase the power generation capacity by 60,000 MW Examples of Indian Flagship Programmes Jawaharlal Nehru Urban Renewal Mission ( : 50,000 crore INR) Urban development Bharat Nirman ( : 24,600 crore INR) Rural infrastructure; provision of electricity and potable water to all uncovered habitations National Rural Employment Guarantee Act ( : 16,000 crore INR) Guaranteed 100 days of payed employment for one family member of every poor family National Rural Health Mission ( ) Improved health and education in rural areas Source: Approach Paper of Planning Commission 50 years of Indo-German Development Cooperation 9

10 Common Goals of Indo-German Development Cooperation ÊÊ The aim of Indo-German development cooperation is to contribute to the solution of global problems (primarily climate, environment and energy) through joint programmes and initiatives in order to achieve the Millennium Development Goals (MDGs) and, by doing so, to reduce poverty. ÊÊ Based on a continuous dialogue between the two partners, Indo-German development cooperation is therefore based on the German government s development policy principles as well as the development focus of the Indian government in the framework of the 11 th year plan. ÊÊ Indo-German development cooperation helps to reinforce human rights, particularly in the social and economic sphere, e.g. by empowering the marginalised groups. Photos (left to right): picture-alliance/dpa, picture-alliance years of Indo-German Development Cooperation

11 Guiding Principles of Indo-German Development Cooperation ÊÊ India and Germany are both signatory parties to the Paris Declaration on Aid Effectiveness. Offering ownership, and ensuring harmonisation and alignment amongst development partners are thus strong elements of Indo- German cooperation. ÊÊ The emphasis of the Indo-German bilateral development cooperation is on measures that focus on sector policy reforms, the swapping of experience and a dialogue on system-wide solutions. In all cooperation programmes, the comparative strengths and the innovative nature of German development cooperation are being put into value. ÊÊ Development cooperation dialogue substantially strengthens the Indo-German strategic partnership and stimulates Indo-German dialogue in general. ÊÊ The common policy framework provided by the MDGs is complemented by Germany s Programme of Action 2015, which outlines the ways of achieving those goals. This programme is based on Germany s concept of development policy as a form of global structural policy. The Millennium Development Goals Eradicate Extreme Poverty and Hunger Achieve Universal Primary Education Promote Gender Equality and Empower Women Reduce Child Mortality Improve Maternal Health Combat HIV / AIDS, Malaria and other Diseases Ensure Environmental Sustainability Develop a Global Partnership for Development years of Indo-German Development Cooperation

12 Selected Milestones of 50 Years of Indo-German Development Cooperation 1980s Tool Rooms Tool rooms were equipped with precision machines. They provided services to the SME industry, e.g. in the area of tooling, precision machining, heat treatment and technical training 1958 Federal Foreign Office 1980s / 1990s Watershed management Planning of watersheds and introducing participatory approaches through the National Bank for Agriculture and Rural Development (NABARD) picture-alliance/uwe S. Meschede 1958 Indian Institute of Technology (IIT) Madras IIT Madras is one among the foremost institutes of national importance in higher technological education, basic and applied research. In 1956 Germany offered technical assistance for establishing an institute of higher education in engineering in India. The first Indo-German Agreement was signed in IIT Madras was one of the biggest development projects at that time Agricultural Development Project in the Nilgiris Activities of the project extended to over 16,414 farm holdings in the district. Project activities resulted in determining favourable cultivation practices for potatoes and alternate crops suitable for rotation. Small farmers got assistance with loans and training programmes years of Indo-German Development Cooperation

13 Adivasi Development Programme Gujarat / Maharashtra An integrated rural livelihood programme with direct income gains to over 25,000 tribal households, moving them out of below poverty line Adivasi programmes are important measures of poverty reduction and social infrastructure (through NABARD) picture-alliance 1998 Self-Help Groups Linkage Banking Linking Self-Help Groups to the formal banking system by addressing the poor and especially women reached 200 million people (through NABARD) Vocational Training Centre for Research and Industrial Staff Performance (CRISP) Indo German Institute of Advanced Technology (IGIAT) 2003 Indo-German Energy Programme (IGEN) Improving energy efficiency and contributing to climate protection 2008 istockphoto istockphoto 2005 Small Industries Development Bank of India (SIDBI ) SIDBIs objective is the promotion, financing and development of SMEs and to coordinate the functions of institutions engaged in similar activities. Germany provides technical assistance for SIDBI as well as several credit lines for innovative financial products also in the area of environment. Reform of Cooperative Banks Promotion of the strenghtening of the co-operative banking sector by contributing to the overall planning of reform measures (through NABARD) 50 years of Indo-German Development Cooperation 13

14 14 50 years of Indo-German Development Cooperation The Three Priority Areas of Indo-German Development Cooperation

15 Energy Aim ÊÊ Expand energy supply in a socially and environmentally sound way using fossil fuels and renewable energy, massively improving efficiency in energy generation, transmission and consumption and continuing with sectoral reforms Fields of Action ÊÊ Energy efficiency, renewable energies, energy sector reform Important Programmes / Portfolio Overview ÊÊ Indo-German Energy Programme (IGEN) ÊÊ Biomass Power Generation ÊÊ Rural Energy Cooperation (REC) ÊÊ Renewable Energy Programme ÊÊ Power Sector Reform Programme Additional Joint Activities: Indo-German Energy Forum (IGEF) The Energy Forum was created in It aims at promoting cooperation in energy security, energy efficiency, renewable energy, investment in energy projects and collaborative research and development. Participating actors include the Indian and German governments, public institutions and the private sector. Example The Indo-German Energy Programme: supports the nationwide implementation of the Energy Conservation Act by the Bureau of Energy Efficiency under the Ministry of Power develops human resource and institutional capacities to implement CDM projects provides long-term financing and technical expertise for investments in selected thermal power plants 50 years of Indo-German Development Cooperation 15

16 Environment Aim ÊÊ Meet the challenges in terms of urban and industrial environmental protection and management of natural resources Fields of Action ÊÊ Environmental planning and legislation ÊÊ Green technologies ÊÊ Environmentally friendly production methods and hazardous waste management ÊÊ Consumer proctection Important Programmes / Portfolio Overview ÊÊ Advisory services in environmental management ÊÊ Strengthening capacity for decentralised watershed management ÊÊ Climate change adaptation ÊÊ Adivasi development programme (Maharashtra) ÊÊ NABARD umbrella programme Photos (page 14): picture/alliance/okapia KG, Germany, istockphoto x2 Photos (left to right): dpa/bildfunk, picture-alliance/dpa x years of Indo-German Development Cooperation

17 Example Advisory Services in Environmental Management (ASEM) Components Environmental planning; Promotion of cleaner technologies; Waste Management; Consumer Protection Results Alliances between Indian and German institutions; Successful partnership with Central and State Pollution Control boards and other stakeholders, which have national impact on pollution control and environmental improvement Additional Joint Activities: Cultural Festival on Urban Environmental Issues in New Delhi (Max Müller Bhavan / GTZ) The purpose of the festival is to create awareness of urban environmental issues by means of art. During the festival it is intended to display up to 30 works of art in public spaces in central Delhi. The project is sponsored by the German government. 50 years of Indo-German Development Cooperation 17

18 Sustainable Economic Development Aim ÊÊ Support India s reform policies geared towards inclusive, regionally and socially balanced growth Fields of Action ÊÊ Finance systems development ÊÊ Social policy ÊÊ Small and medium-size enterprise promotion Important Programmes / Portfolio Overview ÊÊ Regional economic development (Uttarakhand) ÊÊ SIDBI - Financing and development of SMEs ÊÊ Rural Finance Programme ÊÊ NABARD XI (Reform of cooperative banks) ÊÊ Corporate Social Responsibility ÊÊ Promotion of Industrial Services (vocational training) Photos (left to right): picture-alliance/dinodia PHOTO LIBRARY, picture-alliance/godong, AFP years of Indo-German Development Cooperation

19 Examples The reform programme of the rural cooperative banks The Government of India has embarked upon a comprehensive reform for the rural cooperative banks. Drawing on experiences of a vibrant cooperative banking sector in Germany, the German government has committed its support through Provision of refinance for the financial restructuring Capacity development for the rural cooperative banking structure For this programme Germany has joined hands with Asian Development Bank and NABARD. Industrial Services Network / Vocational Training 16 Technology Centres are already members of this network. Over 5000 SMEs and more than 20,000 people (annually) have already availed of the services of this growing, vibrant Indo-German network. ISN provides high-quality, demandoriented training and other industrial services to SMEs and disadvantaged target groups. Through the project the competitiveness of SMEs and the employability of people are increased. 50 years of Indo-German Development Cooperation 19

20 Other Programmes and Instruments Health ÊÊ Indo-German Health Programme ÊÊ Polio eradication Other ÊÊ Disaster Management: Multipurpose Cyclone Shelters, Orissa ÊÊ Rural Water Supply: Rajasthan, West Bengal, Maharashtra ÊÊ Minor Irrigation, Maharashtra ÊÊ Indian Railways (Signalling System Delhi-Kanpur) ÊÊ Support of the Panchayat Raj Institutions, Himachal Pradesh ÊÊ E-governance ÊÊ ÊÊ ÊÊ Support of the Chlorofluorocarbons (CFC) Consumption Phase out Support of the Carbon Tetrachloride (CTC) National Phase out Plan German Confederation of Skilled Crafts / SEQUA Partnership Programme Photos (left to right): picture-alliance/dpa, KfW, picture-alliance years of Indo-German Development Cooperation

21 Public Private Partnerships (PPP s): A Win-Win Situation for Development Policy Alliances between development policy and the private sector, so-called PPPs, have stood the test of time. The volume of these partnerships worldwide totals around 8.2 billion EUR. Every Euro of public funds has attracted 2 EUR from the private sector towards implementing economically viable projects that are also sensible in terms of development policy. German development cooperation offers PPPs of access to funding. Projects financed with the PPP facility are implemented jointly by the enterprise concerned and by one of the following implementing agencies: GTZ, DEG, SEQUA, KfW. Ongoing PPP-Initiatives Energy: Introduction of BEE-standards and labelling programme with Thyssen Krupp Electrical Steel Ltd. Environment: Support farmers activities in the value chain of biofuels with Lurgi AG Arsenic filtration in West Bengal with Karl Harbauer Umwelttechnik GmbH & Co KG Economic Reform: Capacity building in the modern sector with Indo-German Chamber of Commerce, Chennai Training of youth in furniture production with Felder Group, Jodhpur Microinsurance products for social protection of the poor with UNDP, Allianz and Bajaj Allianz Health: Improving women s health with endoscopic methods with Karl Storz GmbH Developing and implementing an accreditation system for the Indian Health Sector 50 years of Indo-German Development Cooperation 21

22 German Players in Development Cooperation The German Ministry for Economic Cooperation and Development (BMZ) develops the guidelines and the fundamental concepts on which German development policy is based. It lays down the long-term strategies for cooperation with the various actors involved and defines the rules by which these are translated into practice. KfW Development Bank is responsible for financial cooperation (FC). FC supports partner countries in the financing of innovative solutions important for development. The Deutsche Investitions- und Entwicklungsgesellschaft (DEG), a subsidiary of the KfW Group, provides long-term finance and advice to German and international private enterprises as well as enterprises from partner countries with a view to investment in places where no such services are available in the local market. It offers equity capital, mezzanine finance, loans, and guarantees. The Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) is responsible for technical cooperation (TC). It provides technical, economical and organisational knowledge and skills to strengthen the capacity of individuals and organisations. In addition to its work for the German Government, GTZ is active on behalf of international clients (partner countries, EU Commission) through GTZ International Services. The International Centre for Migration and Development (CIM) is running the Integrated Experts Programme which places highly qualified experts from Germany with companies and organisations in developing and transition countries. CIM also runs a programme for returnees, providing advice and a placement service to workers and trainees living in Germany who are interested in reintegrating into a career at home. Capacity Building International (InWEnt) stands for human resource development, advanced training and dialogue. The training and dialogue programmes address specialists, junior executives and decision-makers from the realms of industry, politics, administration and civil society. SES utilises the lifelong experience of retired German experts to benefit enterprises in developing countries. More than 7,300 Senior Experts are registered in all branches of industry, services and agriculture. The Senior Experts work voluntarily, to provide quick and pragmatic advice years of Indo-German Development Cooperation

23 Non-Governmental Organisations, Churches & Political Foundations Churches and NGOs ÊÊ German churches and German nongovernmental organisations (NGOs) work closely together with Indian NGOs in the joint implementation of projects within the framework of bilateral Indo-German cooperation. ÊÊ Activities focus on creating livelihoods, empowerment of women, supporting self-help groups, establishing food security, promoting medicinal plants etc. Small-Scale Project Fund Under the Small-Scale Project Fund of the Embassy direct financial assistance can be provided to Indian NGOs and local communities for the implementation of a small project for the benefit of disadvantaged groups of society. Particular consideration will be given to the gender equality policy of the project. Up to 8,000 EUR (approximately up to 5 lakh INR) can be provided for each Small-Scale Project. Political Foundations ÊÊ The political foundations promote institutions and groups within society. Their activities foster the development and promotion of democratic structures and participation of the population in political decision-making processes. They organise seminars, workshops and training programmes for associations and institutions and promote initiatives like economic reforms, gender issues and environment. picture-alliance/uwe S. Meschede 50 years of Indo-German Development Cooperation 23

24 24 50 years of Indo-German Development Cooperation Embassy of the Federal Republic of Germany 6/50G Shantipath, Chanakyapuri, New Delhi , India Phone: wz-11@newd.diplo.de