Mr. Eckhard Deutscher has been the Chair of the OECD Development Assistance Committee (DAC) since January 2008. Read more...

Development cooperation needs greater coherence: how can all policies be geared towards development goals?

Policy Coherence is a key concern for development, so it is very relevant and timely to discuss this issue broader deeper.

If we want to see development as the result of our development co-operation investments, we have to look not just at the investment itself, but at the investment environment in which this is taking place. Policy Coherence for Development can significantly increase the impact of development resources contributing to achievement of the Millennium Development Goals.

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The ratification of the Lisbon Treaty, and the arrival in Brussels of a new leadership team, together provide an opportunity to re-invigorate European collaboration and collective action in the realm of international development. This publication is the result of a collaboration between 25 researchers from four of Europe’s leading think-tanks on international development. It stems from a shared commitment to European development cooperation, and a sense of urgency about the need to rethink policy for new and challenging times. A new Europe, facing new challenges, will be tested in many fields and sectors. The authors assess the task of reaching the Millennium Development Goals, and rethinking the goals for the period beyond 2015. They make the case for joined-up thinking across the institutions and policies of the EU, emphasising the importance of Policy Coherence for Development. And they examine specific policy areas – trade, state/peace-building, climate change, migration, finance, and the private sector. They lay out an agenda for partnership with developing countries, and examine how actors in the EU system can work better together. The report makes the case for five priorities:

New EU leadership in thinking about how development cooperation can help deal with shared global problems.

EU states to meet their aid promises and improve the targeting and effectiveness of aid spending.

New efforts to ensure coherence between development and other policies.

Providing new life to development partnerships.

Improved cooperation between Member States, so that the EU really does work as one.

You can read the entire report here.
 
 

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I recently came across a post by Nancy Birdsall on a new instrument promoted by the Center for Global Development, called 'Cash on Delivery' aid. In a way (Nancy, whose Center is a partner of ID4D, might wish to correct me if I am wrong, or complete if need be) it is conceptually close to 'output-based aid', except that governments rather than non-governmental actors are in charge of delivering the output, and that aid comes as a form of reward upon delivery rather than a direct payment of the costs incurred. 

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My colleagues are finalizing the preparations for a two-day brainstorming session on the future of European aid. It is a good occasion to open the floor to its participants (and beyond: as always anyone should feel free to join in!) to reflect on the way Europeans envisage their development policy: what is it for? How should we go about it? Here are a few initial thoughts.Europe is a giant of development assistance. Combining funds from member states and the Community, EU aid totaled 46 billion Euros in 2007, making it by far the largest contributor to this global endeavor. This amount equates to 93 Euros per capita, compared to 53 and 44 Euros per capita donated by the United States and Japan, respectively.

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These few lines came to my mind after one of our Board of Directors' meetings devoted, among other things, to a new participation in an important microfinance institution in Morocco - a country famous for its involvement in the sector. I have, for a long time, been an avid supporter of microfinance. And I am particularly proud of the important increase in the amount of investments made in this sector by my organization, AFD, over the past 20 years: through 60 projects and nearly 300 million euros invested, we have helped more than 1.5 million people make their way out of poverty. We now want to go further, encouraged in this by GCAP's very positive evaluation of our involvement. I see microfinance as a powerful tool against exclusion; it allows people who have been traditionally excluded from the financial systems to have access to credit. Great tribute must be paid to the pioneers of this revolutionary approach.

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