Six Ways to Strengthen Links Between Effective Development Cooperation and the Financing for Development Agenda

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Brief Overview of Development Finance in the Asia-Pacific Region

By Rolando G. Tungpalan, Undersecretary for Investment Programming, National Economic and Development Authority
Government of the Philippines

 
The Asia-Pacific region has a strong history of collaboration via regional mechanisms to strengthen institutions that support and are supported by effective development cooperation. For instance, countries within the Pacific Islands Forum have committed to a peer review of country systems, as well as expenditure and accountability assessments, to ensure greater progress in MDG completion and guarantee that development outcomes are tracked, planned, budgeted, and monitored.

Given this focused regional atmosphere, Asia-Pacific countries are positioned to continue to contribute to development financing and the post-2015 development agenda, particularly in terms of providing linkages between on the ground realities and global policy dialogue. In preparation for the Third Global Conference on Development Financing, over 120 delegates from 24 countries including representatives of government, civil society, the private sector, came together in Manila in March to work together to strengthen connections between effective development cooperation and the Financing for Development agenda in the Asia-Pacific.

PH_topBy focusing on the “how” of achieving the Busan Principles and the eventual Sustainable Development Goals (SDGs), in Manila, Asia-Pacific leaders worked together to reinforce the importance of strong, transparent, and integrated national systems to enhance the planning and budgeting of all finance flows for better development results.

The regional meeting provided the following six key recommendations for strengthening the use of country systems:

  1. National development priorities should continue to guide international development flows. As maintained by the Busan Principles, country-led development means that cooperation must support country goals.
  2. The use (and strengthening) of country systems is essential to financing the means of implementation for the SDGs: country systems lead to country-led development.
  3. Civil society, the private sector, and all development partners must be at the table to support Integrated National Financing Framework at the country level.
  4. Open and transparent data at the country level must inform decisions within Integrated National Financing Frameworks. Using such data in decision-making will limit inefficiencies that create further challenges to developing countries.
  5. Countries must also be accountable for monitoring of financing for SDG implementation. The linkage must be made to the national processes, with regional and global processes leading the post-2015 dialogue.
  6. South-South Cooperation should guide partnership within the Integrated National Financing Frameworks so as to take full advantage of the myriad of economic, social, technical, and other knowledge resources from Southern countries.

 
The Philippines: Strengthening Ties Between Effective Development Cooperation (EDC) and the Financing for Development (FfD)

The Philippine country context provides an important input to regional dialogue surrounding the changing nature of development finance. National reforms in the Philippines have resulted in stronger links between development planning, budgeting, and institutional frameworks to mobilize more effective uses of development finance, the effect of which is evident in increases in domestic revenue as well as declining reliance on external borrowing and ODA. In addition, ongoing reforms undertaken by the Philippines have resulted in a stronger link between the Philippine Development Plan (PDP) and the development budget, and a robust institutional framework to mobilize and more effectively use diverse flows of development finance.

To this end, a Development Finance and Aid Assessment (DFAA) was commissioned by the Government of the Philippines through the National Economic and Development Authority (NEDA) to take stock of current development finance, and its successes and lessons learned.

The study’s outcomes found an increasing reliance on DRM and more efficient financial markets as important sources of development financing in the future. The DFAA also suggests that the Philippine government will be able to meet and perhaps surpass its fiscal deficit targets if it continues with the pace of fiscal reforms. Reliance on external borrowings and ODA are expected to continue to decline and Public-Private Partnerships and foreign direct investment could become significant sources of development finance if the country succeeds in addressing regulatory and political risks.

Overall, the country has a strong outlook for development financing with several key issue areas of focus moving forward, including areas linked to the Busan Principles of country ownership, accountability, and focus on partnerships and results. Areas for future consideration include:

  • • Ensuring government ownership and accountability to the Philippine Development Plan (PDP) and using the PDP as a platform for better coordination of various donor CASs (Country Assistance Strategies);
  • • Improving the quality of the PDP with the increased use of evidence-based recommendations in selecting and prioritizing policies and interventions;
  • • Increasing dialogue with donors to examine how their CAS contributes to the Philippines’ own national development priorities and formulating a development cooperation strategy to identify further synergies between government and donor development initiatives;
  • • Promoting discussion around improving the role of bilateral and multilateral donors in the provision of key public goods such as disaster prevention, post-disaster rehabilitation, and post-conflict transition;
  • • Intensifying the use of ODA as a catalyst for attracting private capital to finance certain public goods; and
  • • Providing the NEDA Monitoring and Evaluation Staff with technical training from institutions and various other Southern countries to further build in-house monitoring and evaluation capacity.

These focus areas lend further support to the recommendations made at the Manila Regional Meeting that the principles of Effective Development Cooperation remain relevant as supporters of development financing and sustainability as articulated in the post-2015 agenda.

DDG RGT 4Mr. Rolando G. Tungpalan is the Undersecretary for Investment Programming of the National Economic and Development Authority (NEDA) of the Government of the Philippines. He is a member of the Steering Committee of the Global Partnership for Effective Development Cooperation (GPEDC) and the Asia-Pacific Community of Practice on Managing for Development Results (APCOP).

How data could help Tanzania’s young informal workers

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(Photo credit:  Alessandro Capurso / CC BY-NC-ND)

By Dilhani Wijeyesekera, former Country Director Restless Development Tanzania.

Tanzania is facing a youth unemployment crisis. The World Bank has reported that around 900,000 young people enter the country’s job market annually, but only 50,000 to 60,000 formal sector jobs are created each year. With more than 66% of the population under 25, this job shortage will keep rising. On the flipside, young people are adapting to their situation and increasingly seeking work and opportunities to make money in the informal sector. A study of young people across seven regions of the country, found that 75% of participants earned their main income through the informal sector with most earning around the poverty line.

What are the government and private sector doing in Tanzania to ensure young people can provide more for themselves and their households? How can they achieve a dividend for growth and development through the country’s young and energetic population?

Although Tanzania’s national poverty reduction strategy emphasises employment for women and young people, as yet there are no specific policies to directly support and protect young informal workers. Instead, Tanzania’s economic development and job creation efforts focus mostly on promoting large-scale infrastructure projects and strengthening the formal private sector. In addition, while services to develop small and medium enterprises are on the rise in Tanzania, most young Tanzanians sit well below the qualifying standards to access the micro-credit and loans they provide.

So what’s data got to do with all of this? As we focus on growth and development, how can open data help us to ensure young people are not being left behind? A key government instrument on the labour market is the Employment & Earnings Survey. However, it focuses heavily on the formal sector and currently does not include analysis of the youth informal sector, nor wage earners in seasonal smallholder agriculture. Of 9,431 businesses it consulted in 2012, less than 1% of its sample came from the 15-24 age group according to the National Bureau of Statistics.

Over the last year, Restless Development has been working with grassroots networks of young people – dubbed ‘Kijana Wajibika’ (Youth Lets be Responsible!) – across fourteen regions of the country to ensure their voices are heard in the constitutional review process, and to create spaces for dialogue between young people and their leaders. A major theme coming out in the project’s participatory learning is that young people’s major concern for the future is their livelihoods, and their government’s accountability to provide a better environment to help this grow. The government has a key role in regulating access to land, business development services, and similar. I was talking to a young entrepreneur in our network a few weeks ago, and he shared some of the challenges with me: “To register my business in Mbeya, I need to travel to Dar to get the paperwork done. The registration costs are really high. After that, I’m faced with government audits for a business ten times my size. For those few of us who understand the rules, we just don’t bother to imagine growing and prefer to stay small.”

We at the youth-led development agency Restless Development want Tanzania’s national and local policies and actions on economic development to consider the informal economy and meet young people’s needs. In participatory research, young people in Tanzania have identified the trend of their increased movement into the informal economy as one of their greatest development challenges. That’s why we have chosen to focus on Tanzania in the first phase of the Big Idea, a new programme to support youth-led, data-intensive accountability. The programme is listed as one of the Voluntary Initiatives of the Global Partnership for Effective Development Co-operation, driving on-going efforts to meet the Busan commitments on effective development co-operation and move into new areas such as open data for development, enhanced accountability and youth as partners for development.

In developing the Big Idea, we analysed why many well-intentioned projects hoping to unlock accountability through better data fall short of expectations. We believe this is partly because too little attention has been paid to ensuring that citizens and their organisations have the capacity and confidence to work with data and turn it into evidence for advocacy. We also believe that accountability is fundamentally about growing the relationships between citizens and governments, and expanding not only the space for participation, but growing the capacities and comfort levels of all parties involved to work together.

To get to that point, our district-level informal youth-led groups aim to work with national partners to reach around 2,000 young people. With training and mentoring, they will develop key questions of enquiry, pull together official data on young informal workers in Tanzania, and gather new data through community consultations. By bringing the two evidence bases together, they will build a clearer picture of the conditions for and priorities of young informal workers in Tanzania. Participants will then carry these messages into policy dialogues that will deepen their relationship with decision makers, focusing on areas where consensus can be expanded. From our experience in Tanzanian communities since 1998, we expect to see many young people creating their own community solutions to the challenges they find in collaboration with their community leaders and local governments.

The Big Idea programme is at an early stage, and we know that Tanzania is not alone in facing problems of youth unemployment and a growing informal sector. The World Bank’s 2014 report, Youth Employment in Sub-Saharan Africa, states that ‘informal is normal’, and a new study by International Labour Organisation on Labour Market Transitions of Young Women and Men in the United Republic of Tanzania, found youth informal employment in Tanzania to be at 78%. As well as Tanzania, we are also testing our Big Idea programme with youth-led, data-intensive accountability projects in Ghana and Nepal. We are also looking ahead to the Sustainable Development Goals to be decided upon late 2015, advocating that they should include a distinct goal on governance, which should support young people’s participation in governance at a national and global level.

In Tanzania, Ghana and Nepal, we hope to develop and test a model that could have potential wider replication in many other contexts where youth exclusion and youth poverty are barriers to development. We’ll be documenting and sharing our learning, and hoping to inspire others Please follow our progress on the Big Idea webpage as we go along, and get in touch if you want to know more about our work in Tanzania.

RestlessDevAuthorDilhani Wijeyesekera served as Restless Development’s Country Director in Tanzania from February 2011 to December 2014. She is now a Global Director at Restless Development.

Korean social enterprises go global


By Jeong Tae Kim, CEO and President of MYSC and Executive Director of Social Enterprise Network

Social enterprises – businesses that prioritise human and environmental benefits equally to profits – are effective vehicles to achieve development goals as their market-based approaches bring sustainability and scalability that are essential to create long-term impact.

South Korea’s social enterprise ecosystem has grown rapidly in recent years. Following the country’s new Social Enterprise Promotion Act of 2007, we now see many Korean social ventures creating impact in various ways, with many aiming to achieve development goals while conducting business activities in developing countries.

Koreans’ interest in bottom-up approaches to development is closely linked to our country’s own unique development experience via the ‘New Village Movement’ of the 1970s. This was a pan-national movement focused on rural development. The central government provided equal amounts of cement to each community, encouraging communities to initiate development projects of their choice. Those that successfully accomplished projects through their own residents’ efforts and investment were rewarded with more resources for cooperative work. The programme is widely considered to have contributed to the development and modernisation of Korean society as a whole. Many Koreans feel proud of the development they achieved in such a short time frame and are willing to spread this spirit and experience to neighboring countries.

This bottom-up approach can tie in with the growing interest in social enterprises from both the public and private sectors. If both sectors want to engage with each other, can there be a mutually beneficial mechanism that reflects the nature of each sector? This is the beauty of social enterprises and social ventures, which act as vehicles for public-private partnerships. In this context, both Korea’s public and private sectors are increasingly seeking opportunities to support social enterprises to accomplish their respective goals.

Inclusive development partnerships are a core principle of the Global Partnership for Effective Development Co-operation launched at the 2011 High Level Forum on Aid Effectiveness in Busan, Korea. This way of cooperating poses interesting challenges to traditional development players such as governments and civil society organisations in cooperating with other development actors, including the private sector. How can the private sector be engaged in development activities? And how can the quality of public-private partnerships be measured?

From the private sector perspective, developing countries have increasingly been recognised as a new market. The four billion people living on less than $2 a day, those at the bottom of the pyramid (BOP) , have been perceived as a market in which businesses can earn profits through innovations in technology, business models, and managing procedures.

Along with this motivation, many Korean companies are also under strong pressure from their communities and society to support development impact, including by designing Corporate Social Responsibility or Creating Shared Value strategies. MYSC, Korea’s first social innovation-focused consulting firm, advises its private sector clients to invest in social enterprises as part of these strategies, and we look forward to seeing more trial cases in the near future. Among Korean conglomerates, Hyundai has active global Creating Shared Values programs; it established automobile technical high schools in Ghana, Indonesia, and Cambodia in partnership with the Korea International Cooperation Agency (KOICA) to create stable jobs for local youth.

socialEnt-KoreaLast October, KOICA collaborated with the Korea Trade-Investment Promotion Agency to launch an incubator programme for Korean social entrepreneurs. MYSC is now training six teams sent to Cambodia and Vietnam to develop their business models.

This programme is symbolic of KOICA’s use of Official Development Assistance to leverage business activities contributing to development and is promoting social businesses such as a cooperative to produce construction materials from urban waste and a K-pop performance team composed of local unemployed youth.

Along with these businesses, social enterprises in Cambodia and Vietnam are supporting the countries’ development goals, such as increasing employment and protecting the environment while carrying out urban development.

The Korea Social Enterprise Promotion Agency has also added a global section to its annual social entrepreneurship incubator programme to support entrepreneurs wishing to launch their social enterprises in developing countries.

Through the Korea Development Bank’s Pioneer Village The Nanum (Sharing) programme MYSC trained ten teams of entrepreneurs to launch social businesses in Asian and African developing countries in 2013. Using MYSC’s ‘design thinking’ approach, the teams conducted in-depth field research in the respective countries to develop their businesses based on the actual needs of their target groups. Several of the teams are now running sucessful business, including ‘Tella’ which employs Ugandans to provide remote text-based English tutoring services to Korean customers. This fills a need in the Korean English education market while creating jobs that pay fair wages for well-educated jobless people in Uganda, which faces a high rate of unemployment for young adults.

Another Project, ‘Soul of Africa’ aims to support Kenyan and Tanzanian artists by protecting their intellectual property rights and purchasing their artworks to be sold at SoA’s gallery in Seoul at fair prices.

By promoting the successes and lessons learned via multi-stakeholder partnerships on the ground we hope that Korean social enterprises can help to inform how the private sector can play a key role in more effective development co-operation.


1411369782116.9.29-1Jeong Tae Kim is the CEO and President of MYSC and Executive Director of Social Enterprise Network (SEN). He has worked as Communications and Outreach Officer at the United Nations Project Office on Governance.

Business can be a partner for Myanmar’s shared prosperity

By Khine Khine Nwe, Joint Secretary General of Union of Myanmar Federation of Chambers of Commerce and Industry and member of Myanmar Investment Commission

 
Myanmar’s ongoing reform efforts include private sector development, helping the country create an attractive business environment for domestic and international investors. The country’s private sector is working with policymakers to develop its investment strategy, raise awareness about employee rights and ethical business, as well as to provide jobs and vocational training to vulnerable groups such as human-trafficking victims and many others.

Myanmar’s case encouraged experts at the Busan Global Partnership Workshop in November 2014 in Seoul, South Korea, to discuss how the private sector can partner for a country’s development.

Ms. Khine Khine Nwe, Joint Secretary General of Union of Myanmar Federation of Chambers of Commerce and Industry and member of Myanmar Investment Commission, discussed some ways for business to be a partner for Myanmar’s shared prosperity:

 

What is the private sector’s role in Myanmar’s development?

If the private sector grows, the country grows. I am glad that governments are now recognising that. We create income, jobs and wealth and help develop domestic resources. We all have the same goal as we want to move forward to see the nation grow and develop.

Myanmar has had positive developments during its transition period. More than 456,000 jobs have been created there since 2011, and new investment to the private sector is helping to develop the country, bringing new jobs for more of its 51.4 million people.

We now need to transform from a focus on profit to seeking ways to benefit the many. It is important that all business comes with responsibility – it should do good for society and no harm to the environment. The Union of Myanmar Federation of Chambers of Commerce and Industry (the Federation) is trying to raise awareness among all businesses, though we still have a lot of challenges.

In Myanmar, one way of encouraging the private sector to think about its role for the country’s development is through participation in the UN Global Compact. Some may see this as basically for promoting corporate social responsibility, but it is in fact about setting business principles for the private sector to be responsible for its contribution to development. In this sense, we are introducing the Global Compact’s 10 principles, which uphold the four pillars of human rights, labor rights, environmental protection and anti-corruption for Myanmar businesses.

We toured the country from early 2014 and now more than 150 enterprises have already committed to the Compact. We hosted the UN Global Compact summit in December in Yangon, to celebrate and mobilise the Myanmar Local Network – with the aim of making our way to a thousand plus members.

The Federation has also worked to sensitise the private sector on human rights, labor standards, environmental protection, anti-corruption and other issues. Myanmar Garment Human Resources Development Center has conducted awareness-raising sessions with the Center’s over 2,000 trainees and supported other enterprises in Myanmar to organise talks on the issues of human trafficking and HIV/AIDS, together with the Anti-Human Trafficking Unit under the Ministry of Home Affairs. The Department of Revenue also conducted national level workshops on taxation systems, as better tax collection will also boost funds for the country’s development.

I am not saying that what all of the private sector is doing is noble. We are all human beings and we are trying to contribute to the wellbeing of our country.

How can governments promote the private sector for development?

During the transitional period, the Myanmar Government tried to democratise political and economic reforms.

Last year, our country was ranked one of the most difficult places to do business. We came 182nd out of 189 countries in the World Bank Doing Business Report. That was quite alarming. The government established 27 delivery units in various Ministries and the Chamber of Commerce established 29 working groups, which are now talking on every issue to make things easier for businesses. For example, procedural constraints are not a major issue in the country any more and Myanmar moved up to 177th place in this year’s World Bank report.

We are preparing to host the Myanmar Business Forum in early 2015 to discuss all the issues that we cannot solve on the ground at this high-level forum to benefit all investors.

The new Myanmar Government is also trying to support the private sector with the new investment law. This will merge the two currently separate Myanmar domestic investment and foreign investment laws to become one in order to level the playing field between local and foreign businesses. Import and export trade barriers are also coming down as the government is trying to support the private sector.

How does the private sector work with other actors such as communities, government, local organisations to enhance the effectiveness of development in Myanmar?

For example, Myanmar is now planning three Special Economic Zones (SEZs) to help boost development. One is in Thilawa near Yangon, one in Dawei in the south of Myanmar, and the third in Rakhine State on the western coast.

In the sensitive area of Rakhine State, the Kyauk Phyu SEZ can help develop the area. If we teach people to focus on prosperity then eventually it can reduce the focus on tension there.

The SEZ should be environmentally sensitive and economically sustainable. The masterplan has already been released after multi-stakeholder engagement from a management team consisting of government, local authorities, community leaders, civil society, resource persons and the private sector.

There was initial resistance from local people in the Kyauk Phyu area due to lack of knowledge. They worried that SEZs did no good for the community and that they would occupy the region. But we showed the people the real SEZ area would be smaller than they imagined, asked them for more information about the area and told them more about its development.

Now, some of them already bought sewing machines with funding from the local government to be ready to start social businesses before launching the SEZ. These workers will get a certain salary from what they produce and invest back in the business to buy more machines and bring in more workers. This will eventually help transform job seekers into job providers.

How can the Global Partnership help Myanmar toward development effectiveness?

Global agreements on effective development must also meet local requirements. Myanmar is a least developed country, which means that development partners cannot come with a ready-made package for aid effectiveness. Least developed countries need time to adapt before adopting something like this. We need development partners to help us grow together within the local context, while speaking the same language.


Khine Khine Nwe is Joint Secretary General of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and member of Myanmar Investment Commission. She is also Deputy Managing Director of Best Industrial Company Ltd. She was part of Myanmar delegation to the 2014 Busan Global Partnership Workshop in Seoul, Korea, with her participation supported by the UNDP Myanmar Country Office.

Catalysts of change in the Public Service

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By Max Everest-Phillips, Director of the UNDP Global Centre for Public Service Excellence

 
As we embrace the new year, Singapore has much to celebrate. In 2015, the city-state will mark its 50th year of independence – a milestone that merits deeper reflection on Singapore’s remarkable transformation from new nation with few industries, no agriculture and a small port to an economic powerhouse. Any conversation about Singapore would remain incomplete without acknowledging one of the key contributors to the country’s success: the Singapore Public Service.

What are the policy decisions that helped Singapore build effective public service institutions? How has Singapore developed and strengthened public service capacity to deliver and cope with changing times? What are the incentives that drive public officials to deliver results? What are the enablers of public service excellence in Singapore? Three key strands weave through the country’s public service tapestry: first, strong intrinsic motivation of public officials; second, strategic foresight and the capacity for long-term planning; and third, the effective alignment of political and administrative leadership.

Against this backdrop, it is only fitting that the UNDP Global Centre for Public Service Excellence (GCPSE) is located in Singapore. Set up in December 2012, the UNDP GCPSE is a collaborative effort between the Singapore Government and UNDP. Our role is to help UNDP and stakeholders in the development world to understand the nexus between governance and growth. This relationship is a defining signpost in Singapore’s journey since its independence. Therefore, the Centre has set out to learn from Singapore’s experience, identify factors that drive public service excellence and build knowledge that could be adapted to different country contexts.

The Centre has two objectives. First, it aims to promote evidence by gathering and building knowledge on what works. Second, to act as a convening hub to bring together thought leaders, thinker-practitioners, government officials, policy makers and development stakeholders to exchange ideas and nurture new thinking on ways to improve public service. We identified four catalysts of change in the public service and this forms the roadmap for the Centre’s work:

    Motivation

Public service ethos and the intrinsic motivation of public officials play a significant role in the quality of public service outputs. It is critical to explore how emotions, attitudes and ambitions intersect to influence performance of public officials. When public officials are highly motivated and nurture a sense of empathy with the beneficiaries they serve, their approaches are more innovative, inclusive and sustainable.

    Leadership

Co-operation between political and administrative leadership is a prerequisite for the fulfilment of sustainable development goals. Singapore’s example points to a smooth alignment between the political and administrative spheres of management; this, however, is not the case for many developing countries. Poor co-ordination, conflicting interests and a worrying trust deficit often lead to disastrous consequences; inevitably leading to inefficient provision of services and failed partnerships.

    Foresight

Responding to the complex and increasingly changing nature of today’s development landscape requires strategic foresight and long term-planning. Singapore’s economic growth and social progress stand as a testament to strengths and benefits of foresight. The ability to identify and analyse challenges and opportunities that lie ahead is of paramount importance for public service resilience in developing countries and its ability to be responsive and adaptive to change.

    Innovation

Public officials need to be empowered to think and act differently; by looking at complexity theory, design thinking and social innovation, public officials will stand to benefit from a new culture and mindset that celebrates experimentation, creativity and collaboration. Flexibility and the willingness to think out of the box are becoming progressively crucial for the new generation of public service.

PublicServiceIn our quest to understand successes and failures of public service reforms, we must remember that change and progress in development can only be sustained with ownership and participation at all levels.

The Centre seeks to challenge existing thinking in these areas and highlight the importance of placing public service at the heart of the post-2015 development agenda. The Singapore story shows us that an effective public service is the bedrock for achieving sustainable development goals. This brings us to the question: How do we create effective public service institutions?

There are no easy answers. The Centre is contributing to this dialogue as it takes on the role of co-Secretariat with the OECD of the Effective Institutions Platform (EIP), a partnership which emerged from the Busan High Level Ministerial and which is contributing to the Global Partnership for Effective Development Co-operation’s High-Level Meeting through voluntary initiatives such as the learning alliances on public sector reform.  Through this partnership, we hope to create a space for EIP members and the Centre’s stakeholders to share knowledge, evidence and foster mutual learning around public service reforms. The establishment of Learning Alliances will help strengthen peer learning on topics agreed at the ‘Public Service Excellence & the post-2015 Development Agenda’ workshop in November 2014. EIP Learning Alliances are designed as collaborative multi-stakeholder groupings of institutions and organisations that share knowledge on public sector reform. Learning Alliances enable mutual learning in safe spaces and experimentation with problem-driven approaches to public sector reform.

In our quest to understand successes and failures of public service reforms, we must remember that change and progress in development can only be sustained with ownership and participation at all levels. As Singapore’s experience teaches us, it is imperative to get right the motivation, leadership, foresight and innovation in the conception, reform and delivery of public services. Once this is achieved, the world we want by 2030 becomes a realistic future.


MaxEverest-PhillipsMax Everest-Phillips has been Director of the UNDP Global Centre for Public Service Excellence (GCPSE) since July 2013. He is an expert in governance, political economy and public administration.

Tension between urban and rural interests in development and beyond

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By Tunç Soyer, Mayor of Seferihisar, Turkey

Local governments: first line of defence against the most critical issues of humankind

It is said that cities were first founded to meet people’s need for security and commerce. People built cities to be close to each other to socialise, sell the fruits of their labours, and gain access to a greater variety of products. Today the importance, size and value of cities have increased, making them the most important habitats of humankind. Cities became hubs of not only security and commerce but also of innovation, science, art and culture. Cities also became the main theatre where some of the most serious issues we face; pollution, traffic, crime, waste, homelessness etc., play out.

Local governments, whether urban or rural, are the level of governance closest to the people. Therefore they are expected to offer solutions for hunger, improve transportation, ensure people’s participation in the decision-making processes, disseminate health services, empower democracy and provide security. In addition to on-going responsibilities such as these, local governments also need to be ready to face disasters like floods, fire, earthquakes, tornados and such. To sum up, local governments are the first line of defence against the most critical issues of humanity, and they need to be supported.

Decentralisation and recentralisation: a solution to problems?

Local governments in Turkey are deeply bonded with their people. Municipalities are not institutions that only pick up garbage or collect taxes, they are far more than that. People expect municipalities to remedy all their problems. People who don’t have enough money, want a college education or someone to fix their broken windows seek remedies from their municipalities.

At the same time, in Turkey, local governance is still heavily influenced by the central level. Turkey is located in a troubled global region. Probably, embracing more centralised administration was seen as a solution to the problems this generates.

A decision by the Turkish central government has recently abolished 16,000 villages located at the outskirts of cities which were obstructing urban growth. These are now labelled “neighbourhoods”. This decision was made without consulting the people that live in the villages, their administrations or local governments, which is in conflict with the European Charter of Local Self Government. Yet, this abolition has had a tremendous effect on people living in both villages and cities.

The abolition of the villages has brought them under control of urban municipalities, which are looking for more space to expand their cities. The cities are therefore encroaching on village lands, endangering the livelihood of the villagers, who are mostly active in agriculture, as well as the villages’ cultures and their protective approach to the environment. It has also severely harmed the villagers’ ability to influence a farther-removed local government that no longer has their interests at heart. This decision has caused villagers to lose their inherited lands, buildings, and production facilities, the control of which was transferred to the district governments that sacrificed them to urban expansion.

TurkeyQuoteI truly hope that in Turkey local governments will have the necessary power and resources in future to provide better service for their citizens, in line with their needs.

People living in both villages and cities will face the consequences of this decision: local production in villages used to provide city-dwellers with good and natural food. If they cease to exist, cities will have to rely on industrial food producers. Moreover, the loss of livelihood associated with this change will force villagers to move into the cities, where they will most likely end up in slums, because they have no vocational training outside of agriculture to find a job.

These arguments are not only relevant to my case, but particularly relevant to the poorest countries in the world, where urbanisation is often accelerating most quickly and the means to accommodate it – both technical and financial – are often less easily accessible to governments of all levels. It is important, moreover, for developing countries to acknowledge that although urban expansion creates enormous economic opportunities, it can also be the cause of great economic hardship and even increased poverty.

Consultation and inclusion of all voices in setting national priorities

The central government must include local governors in decision-making processes. Consultation in early stages of the definition of development priorities is crucial to ensure broad-based democratic ownership and to balance the interests of cities and villages. In the Global Partnership for Effective Development Co-operation, I am happy that United Cities and Local Governments (UCLG) is advocating for the role of local governments in development. I completely support their request to include local governments more strategically in the definition and implementation of development priorities.

To tackle problems such as the tension between urban and rural interests, which are not unique to Turkey, but are rather ubiquitous in the world today, we must request adequate resources to serve our people and we need access to knowledge from other local governments, both in Turkey and from abroad. Joining Local Government Associations will help local governments to increase their service capacity and allow them to benefit from others’ experience with similar problems. Local Government Associations are good platforms for local governments to have their voices heard, both at the national and international levels, such as UCLG, but also to exchange and learn from each other.

Most governments in the world have embraced decentralisation and are giving more power to local governments. I truly hope that in Turkey too, local governments will have the necessary power and resources in future to provide better service for their citizens, in line with their needs.


SoyerTunç Soyer is Mayor of Seferihisar Turkey. He is also one of the United Cities and Local Governments organisation’s eight Local and Regional Government Development Cooperation Champions.

The gap between our conception of urban poverty and its measurement

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By David Satterthwaite

 
Our understanding of urban poverty has advanced greatly in the last 25 years. But sadly, our measurement of it has not kept up. There is an astonishing gap between discussions of what should be measured and monitored, and what can be measured and monitored with existing data. Why is this so and why does it matter to development co-operation?

Poverty lines – a bit of history

A survey of living conditions in the city of York by Seebohm Rowntree, published in 1902 suggested the need for a poverty line. This drew on Rowntree’s research and was based on the costs of food, fuel, light, rent, clothing and what were considered necessary household and personal items.

Poverty lines became part of states’ social policies in Europe, especially after World War II. Some were based on a defined set of goods, (as with Rowntree’s poverty line), some were based on food costs with an additional amount added for non-food needs, and some were based on a set percentage of a nation’s median income. All these assume that poverty can be defined and measured based on income level.

This idea of poverty defined and measured through a poverty line was then transferred to low- and middle-income countries. Poverty lines were usually based only on food costs – as if it were only food that a household has to buy to avoid poverty. If there was an allowance for non-food needs, it was generally very small and arbitrary (as no data were collected on non-food costs). So poverty assessment specialists made no allowance for the higher costs facing low-income groups in many cities such as housing rent and covering basic services. For example, having no piped water may oblige households to buy from vendors or tankers. No toilet at home means using public pay-to-use toilets or facing the health risks of no provision (and open defecation). We estimate that around a billion urban dwellers live in informal settlements, and many of them cannot access public healthcare or schools, forcing them to pay for private services instead. In larger cities, transport costs are also high for the many who can only afford to live in peripheral locations and must travel long distances to work or to access services.

SatterthwaitequoteBetter measurement of poverty led by standards set by the urban poor themselves can help us tackle the various and deep-rooted problems that they face.

 

Changing conception

From the early 1990s, the multiple deprivations that were part of urban poverty came to be recognised. These were informed by many detailed studies in informal settlements that revealed the high levels of overcrowding, poor quality housing, a lack of services and high risk of eviction. Studies show high infant and child mortality rates and the lack of policing and thus rule of law in so many settlements. Some studies showed how those lacking a legal address could not access state entitlements or get on the voter’s register. Perhaps our most recent discovery about the multiple deprivations low-income urban dwellers suffer is these dwellers’ lack of influence over how poverty is defined, measured and acted on.

But what do the Millennium Development Goals (MDGs) offer to measure and monitor urban poverty? A single US$1.25 a day poverty line applied across all locations not only in each country, but also internationally. This line is so low that urban poverty disappears in most nations and regions because it does not capture the true costs of avoiding poverty. Set the line low enough and no-one is poor.

MDG measurement of other aspects of deprivation also fails to understand urban contexts. The UN’S monitoring of provision for water does not assess whether the water is safe, or reliable or accessible. What’s more, this global system’s measurement of sanitation does not account for whether pit latrines contaminate the water table in densely populated areas. The UN admits that what it defines as improved provision of water includes large numbers of sources that are faecally contaminated. Surely we can do better than this.

So, assessments of poverty in any nation need to recognise that poverty lines should vary, reflecting differences in the cost of food and non-food needs. They need to include assessments of housing and living conditions and of basic services. Now, we must also recognise the right of the urban poor to contest any poverty line or other poverty measure.

Beyond this, we need to recognise the failure of local governments to engage with and respond to the inhabitants of informal settlements as a defining characteristic of urban poverty. Better measurement of poverty led by standards set by the urban poor themselves can help us tackle the various and deep-rooted problems that they face. Armed with such information, we will be able to move towards more effective development co-operation, working with the urban poor and their organisations and local governments to better tackle these problems.


SatterthwaiteBioDavid Satterthwaite is a Senior Fellow with the International Institute for Environment and Development (IIED). He is co-author with Diana Mitlin of two books published by Routledge on Urban Poverty in the Global South; Scale and Nature (2012) and Reducing Urban Poverty in the Global South (2013).

Protecting Civil Society’s Role in Development Co-operation

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By Virginie Coulloudon, Transparency International Group Director of External Relations

 
Within the development community, the role of civil society has never been more important.

Civil society is made up of community groups, volunteers, civil society organisations (CSOs) and trade unions, all of whom provide a crucial resource for development. We work outside the constraints of governments and markets to raise questions and demand changes, putting pressure on governments and business to act with integrity and transparency.
 

What civil society does

CSOs have a core part to play in governance, which is essential for development. In many cases, they are critical to making and improving laws. In the wake of the Arab Spring in Tunisia, or the protests that erupted across Bosnia, local activists were the ones who pushed reforms that protected human rights, advanced democracy, and ensured that ordinary people’s interests were represented in government.

Civil society also works extensively with international organisations, with an estimation that from 2007 – 2009, they were involved in in over 75% of the World Bank’s projects. Today, the World Bank partners with CSOs in Argentina to monitor government programmes and hold them to account, in China to help empower women in remote highland areas and across Africa to help reduce pesticide use among farmers.
 

Why are transparency and accountability so important to effective development co-operation? 

CSOs also help monitor the laws that they worked to have passed, with people coming together to make sure rights are not abused and laws are obeyed. Civil society plays a part in monitoring the activities of private sector entities, for example bringing up instances of illegal pollution and human rights abuses, creating accountability when needed.

More importantly co-operation between civil society, governments and businesses creates channels through which we can affect future change. The Extractive Industries Transparency Initiative is a perfect example of this. This is a global coalition of governments, companies and civil society working together to improve openness and accountable management of revenues from natural resources such as oil, gas, metals and minerals. Transparency around how a country manages its natural resource wealth ensures that these resources benefit all citizens.

Civil Society’s work can inform the Global Partnership for Effective Development and Co-operation’s efforts towards more effective development co-operation in numerous ways. For example, at Transparency International we focus on transparency and accountability mechanisms that ensure public funds can be tracked to ensure they pay for schools and hospitals, for example, instead of being diverted to line the pockets of corrupt officials.

Transparency between governments, civil society and the private sector also promotes greater and more effective development co-operation. Kenya, for example, receives $1.7 billion in foreign aid a year. It became the first African country to release government data to the public through a single online platform in 2011, with information on funds allocated for local areas, school enrolment rates or access to water.

Finally, CSOs play a vital role as safety nets, helping those in need without considering vested political interests or national boundaries. Similar work is carried out by Transparency International’s Advocacy and Legal Advice Centres (ALACs) around the world, helping those who have suffered from corruption – for example, those who have been forced to pay for state healthcare, tricked into forced labour, or had their land illegally confiscated – to negotiate their way through the legal system and gain justice.
 

Civil Society under threat

Given the importance of CSOs, it is truly dismaying that across the world, civil society space is shrinking, persecuted by governments who view CSOs as a threat to their power. Freedom House estimates that it is getting increasingly harder for groups to operate outside of government interference. According to CIVICUS, there have been 413 threats to civil society across 87 countries in the last 2 years.

This persecution can take many forms. In Hungary, CSOs have seen the government freeze foreign funding under the pretext of preventing foreign influence in corruption. Montenegro’s journalists have faced threats to their life such as car bombs, while human rights defenders in Ethiopia are imprisoned and tortured.

This cannot go on if we seek a world where fundamental rights and freedoms are protected.

The importance of civil society space is apparent. Earlier this year, the United Nations Office of the High Commissioner for Human Rights declared that civil society space must be protected if we are to guarantee human rights. The tightening of civil society space actively harms the aims of development – it makes it harder for the vulnerable to reach the resources they need.

There are concrete actions which can be taken to protect civil society and activists across the world. These include following UN Security Council Resolution 2171, which calls upon governments to engage with CSOs through meetings and allow them access to the media. Whistle-blowers and journalists must be protected from persecution and backlash when they expose abuses of power. New laws must be passed and existing laws strengthened and upheld with integrity in order to meet these requirements. Enabling CSOs to exercise their roles as independent development actors is also clearly spelled out as a commitment in the Busan Partnership agreement and a prerequisite for maximising CSOs’ contribution to development.

For Transparency International, the ability to work as a CSO, free from government or corporate interests is paramount. Clampdowns on civil society space have affected activists and colleagues around the world, not just in our organisation but in many others. Civil society provides watchdogs and safeguards to ensure that governments, businesses and people can work together to create a society that is, through co-operation, more than the sum of its parts.


VirginieVirginie Coulloudon joined Transparency International in 2012 as Communications Director, before becoming Group Director for External Relations in 2013. She was previously spokesperson, head of press and public information at the Organisation for Security and Co-operation in Europe and director of communications, Europe, at Radio Free Europe/Radio Liberty. She is a former investigative journalist, permanent correspondent in Moscow, and research director at the Harvard Davis Center for Russian Studies.

Co-operating on innovation to make the data revolution happen

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By Trevor Fletcher, Informing the Data Revolution Project Manager at PARIS21

 
We’ve all been hearing a lot about the “Data Revolution” that’s needed to ensure we have the data to measure progress of development during the last year or so. As we approach the Sustainable Development Goals post-2015, this call will become an ever more deafening clamour.

But what is the data revolution exactly? If you search on Google for a precise definition, you won’t find one. Instead, you’ll find dozens of references such as:

  • “a revolution of new technologies and new data sources“
  • “pouring more money, innovation and effort into counting and measuring, and that more open data can help to unlock the corridors of power”
  • “providing access to better statistics, real time monitoring and feedback, big data analysis and transparent data on aid and government spending”
  • “collecting data on new aspects of wellbeing, or through new technologies, or producing and using data in new ways to promote accountability”
  • “taking advantage of new technologies and access to open data for all people”
  •  
    I could go on but I think you get the idea.

    We in PARIS21 – the Partnership in Statistics for Development in the 21st Century just in case you didn’t know – have been funded by the Bill and Melinda Gates Foundation to produce a Road Map for the data revolution. Our goal is “ … to produce a Road Map that will guide international leaders and policymakers, and national governments and statistical offices, in their path toward an effective, relevant, and sustainable development data revolution …” For us, the slogan for this revolution is getting the right data, to the right people, at the right time, in the right format.

    This project, called Informing a Data Revolution (IDR) has been taking stock of the situation in a number of countries to identify the problems and bottlenecks they have producing data in their national statistic systems. At the same time, we are also cataloguing possible solutions in an Innovations Inventory.

    This covers technological, institutional and other developments that have the potential to improve the financing, collection, compilation, dissemination and other uses of data.

    PARIS21 has also compiled an inventory of case studies to identify and explore solutions that can fill data gaps, reduce costs and improve efficiency. This way, more and better data can ultimately contribute to better information, decisions and actions to improve the lives of the people who need help most.

    Innovations include using handheld devices for collecting data, satellite imagery for estimating household income levels, using alternative sources of ‘big data’ to complement official statistics, dissemination platforms, open data initiatives, data exchange standards and other uses of software.

    Some examples of the many interesting innovations that have come to our notice so far include: using mobile phone call detail records and spatial population data to monitor the Ebola outbreak; the Orange D4D data challenge for encouraging the use of anonymised phone logs for development data analysis; The GeoPoll mobile-based survey platform; disseminating and visualising data via the Open Data Platform in the African Information Highway; the Open Data Barometer shows the global spread of Open Government Data policy and practice; the Big Idea Pilot mobilises young people with knowledge, data and technology to contribute to social accountability at a local, national and global level.

    The information in the inventory has been made available online so rather than me listing them all out, why don’t you have a look – it’s all just a click away right here.

    A key to making these innovations enable a data revolution in developing countries is for the international statistical community to share, collaborate and cooperate. National agencies, international organisations, academia, civil society and other players should all make their software tools available to others as a general principle – and many of them already do. Any new development in statistical software carried out by an organisation should be done with an eye for future sharing with the wider statistical community, using standards such as the Statistical Data and Metadata exchange (SDMX), open source software, open data principles, etc. Even more forward-looking would be to make the software compatible with the Common Statistical Processing Architecture (CSPA) being developed by the (take a deep breath before the world’s longest acronym … ) High-Level Group for the Modernisation of Statistical Production and Services (HLG) to allow a ‘plug and play’ approach so that data processing components and new innovative solutions can be more easily shared and adopted. Making all these solutions available via the inventory can help make this happen.

    Such cooperation and sharing was a rare thing as recently as ten years ago when each organisation developed its own ‘silo’ solutions, but is now very much on the increase. The goodwill of the global statistical community, including partnerships with the private sector, will help this collaboration and contribute to making the data revolution a reality. Does this all sound familiar? Yes, if you look at the process that was launched in Busan with the adoption of the Busan Action Plan for Statistics as part of a Global Partnership for Effective Development Co-operation, this is exactly what was called for.

    Sometimes good ideas just take a bit of time to be realised …


    TF2Trevor Fletcher is Head of the Statistical Information Management and Support Division, Statistics Directorate, OECD Paris. He is also project manager on “Informing the Data Revolution” at PARIS21. He has worked in the Information Technology sector since the 1980s in both the private and public sectors, including for the UK Government, New York and Sydney-based consultancies, Reuters and the Food and Agriculture agency of the United Nations (FAO).

    Making coalitions for agricultural development work

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    By Alain Vidal, Senior Partnerships Advisor, CGIAR Consortium

     
    The sheer scale and urgency of our world’s food security mega-challenges require action from many partners.

    Further, reliable food systems, including value chains, markets, infrastructure and consumption, are critical for human health, nutrition, wellbeing and equity. Producing sufficient and quality food for 9 billion people by 2050 is in itself a daunting challenge for agricultural research for development. We need access, stability and safety in food systems to achieve food security and nutrition for all.

    Despite significant progress in addressing the needs of the world’s poorest in the first part of the 21st century, 800 million people still don’t have enough to eat, and 1.2 billion live in extreme poverty. Additionally, climate change, cumulative environmental stress, conflict, dietary-induced obesity, zoonotic diseases and other stressors have slowed or reversed advances in both developed and developing countries. At the same time lack of investment, incentive structures, market failures and consumption patterns result in 40% of food being lost or wasted – an enormous misuse of our limited resources pointing to undervaluation of food and subsequent under-investments in food systems.

    The number of groups involved in agricultural research for development has increased and diversified dramatically amid these new contexts and challenges. These groups now include national research systems in some larger developing countries, universities and research institutions in both the developing and developed world, regional and local NGOs, and the private sector. We need strategic partnerships between all these actors in order to tackle these mega-challenges mentioned above.

    So how do we make these AR4D leadership coalitions work in an ethical and inclusive way? How can we ensure that actors stay focused on their common objectives? After all, we all share the goals of reducing poverty, improving food and nutrition security and health, as well as improving natural resources management and ecosystem services.

    The Global Alliance on Climate-Smart Agriculture (GACSA) launched during the UN Climate Summit in New York last September is a good model as it brings together governments, major NGOs, research institutions and private companies. In this regard, it is similar to the multi-stakeholder model promoted by the Global Partnership for Effective Development Co-operation that came out of Busan. It also presents common challenges. Let us look at some of them.

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    The sheer scale and urgency of our world’s food security mega-challenges require action from many partners.

    First, because of the diversity of GACSA partners and how they are represented, the forum runs the risk of replicating a UN model, particularly when dealing with contentious issues. Discussions under this model lean towards a consensus body, where all actors must agree on all action taken, which often stymies progress. For GACSA in particular, the types of issues that could tempt the coalition into behaving like a consensus body could be the development of strict criteria and certification modalities to define what counts as “climate-smart agriculture”. Although we should not overlook consensus-building, I believe it is wiser to ensure that coalitions stick to operating a “leadership model” instead, which happily, GACSA wishes to do. This model seeks to promote direct action on the ground by sharing inspiring examples from those on the ground, knowledge on practices and approaches, and individual commitments from members.

    The second obstacle I see is criticism voiced by a large group of civil society organisations who fear that GACSA would actually promote “corporate-smart greenwash” including the promotion of Genetically Modified Organisms, and not care for the poor and vulnerable.

    These fears are to a large extent unfounded, since the major, publicly funded international founders of GACSA, such as the UN Food and Agriculture Organisation, the Global Forum on Agricultural Research and CGIAR are quite careful about potential ‘hijacking’ of such initiatives, and each have a mandate to serve the best interests of the world’s poorest people. This opinion is not shared by all. Some civil society organisations have actually joined GACSA.

    As researchers, we should be “listening to those doubting, because there is nothing to hide” as Special Representative of the UN Secretary-General for Food Security and Nutrition David Nabarro stated in The Hague. But this may not suffice to get all on board.

    Therefore we should be ready to handle “nonbelievers” who want to stay “on the outside” and perhaps even value their role, as it guarantees the ethical and inclusive nature of the coalitions we engage in. One way of doing so could be to create a dedicated, independent advisory committee or panel that includes, or at least carefully listens to, these “nonbelievers”.

    I believe these are two key ingredients to making agricultural development coalitions for development work and two major factors to be considered by other development fora like the Global Partnership for Effective Development Co-operation. We need dynamic interaction between members, and active engagement with critics. We all want a sustainable future for our food system and I believe these steps can take us there.


    VidalAlain Vidal is a Senior Advisor on Capacity Development and Partnerships for the CGIAR Consortium. He is seconded to the CGIAR Consortium by the French Ministry of Agriculture, Agribusiness and Forestry.

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