ERD conclusions. Highlights: 1. What could the post-2015 framework look like? Should it be universal? Abandoning the donor-recipient dichotomy.

Transcription

1 ERD conclusions and recommendations policy brief Highlights: A post-2015 framework should be broader in scope and universal. poverty eradication should remain a central focus but other elements should be added including inequality, environmental sustainability and a transformational agenda. to achieve inclusive and sustainable development, the international community will have to act collectively to devise global policies capable of addressing worldwide challenges. This will require the use of a broad range of financial instruments such as domestic resources, South-South cooperation, innovative financing, aid, policy coherence for development, etc. the EU can play a specific role in the post-2015 both through an adjustment of its own policies and a strategic use of its international influence. 1. What could the post-2015 framework look like? Should it be universal? Given the changing global landscape, the divisive donor recipient construct on which the current framework is based is obsolete. The rapid rise of emerging economies such as Brazil, China and India, blurs the conventional boundaries of the development sector and renders the donor recipient model increasingly unhelpful. Indeed, developing and emerging economies are less likely to commit to achieving targets if advanced economies are not also required to do so. This should be taken as an opportunity to build a post-2015 framework that is broader in scope and adaptable to a variety of contexts so as to ensure that all actors are challenged equally while taking into account their differences. Opting for a universal framework rather than one focused strictly on developing countries presents three major advantages. First, a set of universal goals would have immense political value. Second, some of the most pressing global challenges affect all countries, albeit in different ways. Poverty, inequality and employment are all shared concerns, irrespective of a country s level of development. Third, addressing certain development challenges requires global collective action, for instance to ensure environmental sustainability. It is important to note that a universal framework also presents practical challenges. Although it has an instinctive and obvious appeal, devising and negotiating goals and targets that are both universally acceptable and relevant for diverse contexts may prove to be very difficult. One way of achieving that would be to set global goals and national targets approved at the country level. Abandoning the donor-recipient dichotomy. Advantages and challenges of opting for a universal framework. ERD conclusions and recommendations policy brief 1

2 What are the different design options? Overloading the agenda is a real danger, yet given the rising international interest and expectations as well as the serious challenges to be met, it is important to find an approach that can encompass effectively a somewhat wider agenda than the MDGs. A new design may therefore be needed. The ERD 2013 suggests there are three sets of design available to policy-makers: Three design options for the post-2015 framework. Mixed design with targets and principles. Umbrella agreement of thematic and regional agreements. Create synergies with other processes to achieve inclusive and sustainable development. i. a design which is an extension of the current framework with minor adjustments to reflect changing context and purpose. ii. A design that brings major modifications to the current framework. iii. A completely new design focused on transformative structures and processes. A new design could go in different ways, below are examples of what is being discussed in the post-2015 fora: A mixed design that includes targets and broad principles (or normative standards). Here, elements around which there is sufficient consensus could be defined in detail with measurable targets and indicators, while a set of principles would be supported by strong commitments. This would enable key issues, such as environmental sustainability, to be acknowledged while allowing space for further negotiations. It would also ensure that contentious issues do not hold back or jeopardise agreement in other areas. An umbrella agreement built on thematic and/or regional agreements. Based on a global common vision to facilitate the agreements coordination and coherence, it would clearly delineate expected results to be achieved within an agreed timeframe. This vision could be inspired by the Millennium Declaration and further refined through a participatory process. The specific details, such as setting targets or norms, would then be left to sectoral practitioners. A post-2015 development framework will need to acknowledge that it cannot feasibly tackle every challenge faced by humankind, and that there are likely to be other more suitable ways to address certain issues. Yet tackling many of these global challenges is vital for development. Therefore, it is crucial that existing international frameworks and processes be mutually reinforcing, by creating and strengthening complementarities among them, in order to support the achievement of inclusive and sustainable development. How prescriptive should the framework be? Defining outcomes only, or also prescribing ways to achieve them. There is some debate on whether a post-2015 agenda should focus on outcomes or also provide insights on how to achieve them (e.g. process indicators). In fact, some believe the MDG consensus may have emerged precisely because it was limited to desirable outcomes, in spite of the significant disagreements on how to achieve those (Fukuda-Parr, 2012). A post-2015 agenda should therefore avoid being too prescriptive, since it will have to cover complex development problems that require a range of solutions. Moreover, a detailed roadmap would also constrain national policy space. It is important, however, to articulate which types of processes are fundamental to a vision of inclusive and sustainable development, partly because its realisation requires fundamental economic and social transformations. 2

3 This suggests the need for some agreement on general enablers, drivers or propositions to serve as overall guidance (UN, 2012). Following an overview of the possible shapes of a post-2015 framework, the next step consists in considering what content should be included in a post-2015 global agenda (referred to as Beyond MDGs) and what instruments should be used to implement it (referred to as Beyond aid). 2. Beyond MDGs: elements that should feature in a post-2015 agenda The ERD 2013 argues that inclusive and sustainable development should constitute the overarching objective of a post-2015 agreement. If the international community is to achieve this, the elements listed below and identified by the report will have to feature in any post agreement. Poverty eradication should remain a central focus. In particular, the eradication of extreme poverty should be an urgent priority. At the same time, a new global framework must be relevant to different national realities. For instance, while extreme income poverty remains a considerable challenge in sub-saharan Africa and South Asia, relative income poverty appears to be a better reflection of the concerns in many emerging and transition and indeed advanced economies. There is also a growing recognition that income-based poverty measures fail to capture the full extent of deprivation and exclusion. Hence, concepts of multi-dimensional poverty and wellbeing are critical to changing how poverty is understood, measured, and tackled. Inequality. Those who have not benefited from progress towards achieving the MDGs tend to be from vulnerable social sectors such as the poor, women, youth, and ethnic minorities. Hence, a post-2015 framework should explicitly measure these gaps and provide incentives to reduce inequality of opportunities and of outcomes. This may require the disaggregation of critical post-2015 indicators, such as those related to income opportunities (e.g. employment) and access to basic services, with a view to monitoring and tackling the specific problems facing vulnerable social groups. Environmental sustainability. People living in poverty are disproportionately affected by environmental changes, since these often have a direct impact on their livelihoods. Economic growth and poverty eradication cannot be sustained without regard for the environment and a change in consumption patterns particularly in richer countries. Transformational agenda. The MDG framework, by conceptualising development as poverty eradication may have over simplified the issue and diverted attention from more fundamental debates, such as the structural causes of poverty and inequality. This poses questions for the sustainability of recent achievements, since the MDGs did not seek to provide a transformational agenda to promote inclusive and sustainable development, nor to change the discourse on development (Nayyar, 2012). Decent and productive employment is a key element for these economic, social and political transformations. Access to such employment contributes both to raising the incomes of the most vulnerable, and to improving other dimensions Poverty eradication should remain the central focus. Those who benefitted least from MDG progress tend to be from vulnerable groups. Environmental changes affect the poor most. Decent and productive employment is at the centre of economic, social and political transformations. ERD conclusions and recommendations policy brief 3

4 of wellbeing (such as self-esteem) and social cohesion. The failure to tackle these issues is likely to fuel social and political unrest, and have enduring consequences for future generations. The report also identifies a series of drivers that would facilitate the achievement of this overall objective, they are the movements of finance (development finance), goods (trade and investment) and people (migration). 3. Beyond aid: instruments that should be used to implement a post-2015 agreement Types of financial instruments required: more than just aid Establishing efficient and performing tax systems. Increasing impact of ODA. Complementary source of development finance. Freer labour migration to unlock remittance potential. Transparency and predictability are preconditions of effectiveness. Innovative financing potential should be tapped. Domestic resources should be the main source of development finance as it best guarantees national policy space. In order for governments to establish efficient and better performing tax systems, their efforts need to be supported by international regimes that address issues of transparency, illicit capital flows and capital flight. ODA will remain an important source of finance for the poorest countries. There is still significant scope to increase the impact of ODA through the aid effectiveness agenda, including using it to leverage other forms of development finance. South-South Cooperation (SSC) resources should be better harnessed to support a new global development framework. SSC provides additional choice and valuable opportunities for partner countries, but there is less knowledge about its specific development contribution. Greater transparency would facilitate complementarity with other sources of development finance and enhance partner governments policy space. Remittances from migrants working abroad have the potential to contribute hugely to development; this would be eased if an international regime was adopted to govern a freer mobility of labour migration. Official remittance flows were nearly three times the amount of ODA and almost as large as FDI receipts in 2009, suggesting that informal remittance flows are much higher. Aid and development effectiveness lessons from the Paris to Busan High Level Fora on Aid Effectiveness process can be applied to all forms of development finance. Moreover donors can gain credibility by applying these standards to non-aid instruments and approaches. Increased transparency and predictability of all international financial flows is an important precondition to increasing their impact on achieving development goals. Innovative financing remains limited in volume, but pilot projects have demonstrated the potential of approaches such as blending, special purpose bonds or global taxes. Overall, there is a need for harmonisation, simplification of delivery mechanisms, coherence between the use of ODA and other sources of development finance. 4

5 International financial stability is vital in order to ensure and sustain development gains. The volatility of public and private international finance is a major problem for poorer countries as it undermines their policy space and ability to take forward their national development policies. The global financial and economic crisis has reversed some of the progress made towards achieving the MDGs. Any post-2015 development framework would be much assisted by a significant commitment to reform the international financial and monetary system. Richer countries could help by increasing the predictability of ODA and other support and by exerting better controls on private international financial flows. Taking strong measures to curb illicit flows would be particularly helpful in enabling governments to mobilise domestic resources, including via taxation. International financial stability is vital to sustain development gains. Types of policies required: international collective action In a beyond aid post-2015 context, a framework for international cooperation will need to bring together a broad range of actors, instruments and policies, of which only a minority are predominantly development-oriented. While the formulation of a new development agenda might present an opportunity to set norms for global cooperation in a developmentfriendly way, there are also obstacles to gearing different instruments towards the achievement of inclusive and sustainable development. Including developmentoriented issues to the broader mix. Global public policies: It is crucial to solve challenges of international collective action so as to sustain a global framework for development that not only fights poverty, but also shapes global public policies toward the provision of global public goods (GPGs). Collective action must overcome market failures, such as incentives for some to free ride on global efforts and not contribute their share, or reluctance to enter into any obligation requiring major, long-term financial commitments. Equally problematic is when countries fail to recognise that if collective action is going to work, they may need to constrain their own sovereignty and policy freedom where this may conflict with the sovereignty and policy freedom of others. Taking a more enlightened approach on this however is sometimes referred to as smart sovereignty (Kaul, 2013). This also echoes the notion of policy coherence for development (PCD) where governments, or the EU for that matter, must ensure that their policies, in whatever domain, do not undermine the development opportunities of other countries. Coordination and coherence: The two main challenges for collective action are the coordination of international actors and the coherence of different policies. Coordination depends on all relevant parties abiding by jointly agreed rules and standards in their external policies in order to avoid duplication and to promote synergies. Coherence demands that national and international policies should be in tune with globally agreed goals. Coherence is difficult to achieve when commitments to long-term global objectives conflict with more immediate national preferences or priorities. Without progress on coordination and coherence, and more specifically on PCD, the opportunity to set post-2015 development goals may be missed and international cooperation will not extend beyond aid. Global framework for development that fights poverty, but also shapes global public policies to provide global public goods. Collective action s two main challenges are: coordination of actors and coherence of policies. ERD conclusions and recommendations policy brief 5

6 4. What does this mean for the EU? The EU s most valuable contribution to a new global framework for development might be in a range of policies beyond development cooperation (e.g. in trade, migration, PCD, knowledge sharing, climate change) while still maintaining and improving its development cooperation. In particular the EU should adopt internal policies that support inclusive and sustainable development at the global level: The EU should adopt internal policies that support inclusive and sustainable development. Strengthen the development-friendliness of the EU s trade and investment policies and follow through on proposed measures to improve transparency. Continue to meet EU commitments on the level (0.7% ODA/GNI target) and effectiveness of ODA in the medium term, but also focus on strengthening the development effectiveness of other financial contributions. Develop and realise development-friendly EU policies on facilitating labour migration. In the short term and to optimise its considerable influence in international affairs, the EU should: The EU should further exploit its influence in international affairs. Seek a sufficiently strong yet flexible EU common position to participate in post debates at the UN and in other appropriate multilateral and minilateral fora (e.g. G20, G8). Advocate for a post-2015 global development framework that builds on the Millennium Declaration and the experience of the MDGs and works towards a vision of inclusive and sustainable development. References: Fukuda-Parr, S. (2012) Should Global Goal Setting Continue, and How, in the Post Era?, DESA Working Paper No 117, July 2012, New York: UNDESA. Nayyar, D. (2012) The MDGs After 2015: Some Reflections on the Possibilities, Background paper prepared for the UN System Task Team on the Post-2015 UN Development Agenda, April UN (2012) Realizing the Future We Want for All, UN System Task Team on the Post UN Development Agenda, June 2012, New York: United Nations. 6

7 GLOBAL POVERTY ESTIMATES MAIN MESSAGES ($1.25 A DAY), A NEW GLOBAL DEVELOPMENT FRAMEWORK IS NEEDED For post-2015, world governments should agree on a new development framework that builds on the MDG endeavour and takes further the core objectives of the Millennium Declaration. THE FRAMEWORK SHOULD PROMOTE INCLUSIVE AND SUSTAINABLE DEVELOPMENT The design of a new framework should more clearly incorporate dimensions of inclusiveness (e.g. inequality, productive employment) and sustainability (economic, social and environmental). These dimensions should be clearly reflected in the targets and indicators. THE FRAMEWORK MUST BUILD ON AN UPDATED UNDERSTANDING OF POVERTY The new framework should go beyond the $1.25 a day poverty definition. National poverty measures should be taken into consideration. Non-income poverty aspects should be better incorporated to capture the multi-dimensional nature of poverty. Inequality needs to be addressed. $1$2 $4 A TRANSFORMATIONAL DEVELOPMENT AGENDA IS ESSENTIAL FOR THIS VISION A new framework should make explicit the need to complement investments in the social sectors (health, education, social protection) with investments in key infrastructure and the productive sectors in order to bring about essential structural changes. THE GLOBAL DEVELOPMENT FRAMEWORK SHOULD SUPPORT COUNTRY POLICY CHOICES AND DEVELOPMENT PATHS All donors, SSC providers and others involved in international cooperation should respect the principles of national ownership and alignment established in the Aid Effectiveness HLF process and most recently confirmed in its Global Partnership for Effective Development Cooperation. ERD conclusions and recommendations policy brief 7

8 GLOBAL POVERTY ESTIMATES MAIN MESSAGES ($1.25 A DAY), THE DEPLOYMENT OF A BROAD RANGE OF POLICIES BEYOND AID IS ESSENTIAL The principle of Policy Coherence for Development should be a core working approach of a new framework. The importance of instruments other than development cooperation should be recognised and where possible specified with goals and targets. A RANGE OF DEVELOPMENT FINANCE RESOURCES WILL BE REQUIRED International development partners should support governments in their efforts to raise domestic resources. Donor countries should improve the level and the effectiveness of their development assistance. Mechanisms should be established to enhance the transparency of all international development finance to improve its deployment. MORE EXTENSIVE INTERNATIONAL COLLECTIVE ACTION IS REQUIRED Greater international collective action is needed to realise the vision set out in the Millennium Declaration. Specific areas in which there is an urgent need to establish or improve international regimes include trade, financial regulation, migration and climate change. PROCESSES TO ADDRESS GLOBAL CHALLENGES NEED TO BE MUTUALLY REINFORCING The international community should establish and observe complementary agreements and regimes to tackle interrelated global challenges that affect development. It should explore the possibility of a mixed design for the post-2015 framework, which combines both targets (global and national) and principles. IN ADDITION TO ODA THE EU CONTRIBUTION POST-2015 SHOULD FOCUS ON PROMOTING PCD AND GLOBAL COLLECTIVE ACTION Strengthen trade and investment and labour migration policies development-friendliness and enhance transparency measures. Meet EU commitments on levels and effectiveness of ODA, and strengthen other financial contributions. Seek an EU position to participate in post-2015 debates. Advocate for a framework that builds on the Millennium Declaration and the MDGs toward an inclusive and sustainable development vision. 10 Disclaimer: The content of this report does not reflect the official opinion of the European Union or of its Member States. Responsibility for the information and views expressed in the report lies entirely with the authors. 8