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Romania’s Competitive Advantage as a Donor of ODA Sandra Pralong Development Camp, September 2009.

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Presentation on theme: "Romania’s Competitive Advantage as a Donor of ODA Sandra Pralong Development Camp, September 2009."— Presentation transcript:

1 Romania’s Competitive Advantage as a Donor of ODA Sandra Pralong Development Camp, September 2009

2 Romania in the int’l aid context A re-emerging donor – prestige in the 1970s from Technical Assistance, $340 mil/year, largest East European Donor EU donor as of 2007 (target: 0.17% of GNI) Excellent experience and considerable expertise available in state institutions MFA Budget too small to accommodate wealth of capacities.

3 Positioning: Most Ministries have plenty of expertise – EU entry = demonstration But – Some are “Best Practice” (Child, HIV/AIDS, ITC) – Others are “Lessons Learned” (Justice, Agriculture) Political choice: – Where does MAE allocate funds? – Key objective: How best to “recuperate” Euros 54 mil contributed to EU via Twinnings and other partnership programs

4 Romania’s ODA contribution: Overall Romanian Contribution: – Total ODA Contribution (2007): approx 82 million Euros (0.07% of GNI) (2008): estimated 94 million Euros – Of which, MFA Budget: (2007, 2008) 5 million/year (2009) 2 million Euros

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9 Romania’s Assistance So far, Romania’s ODA has been focused on neighborhood countries: – Moldova (800,000 Euros) – Serbia (400,000) – Georgia (300,000) Domains of assistance: – Social development (youth, women) – Economic Development – Local Government – Water Supply – Civil Society Development – Rule of Law/Transitional Justice

10 Republica Moldova-2007 800,000 Euro

11 Georgia-2007 300,000 Euro

12 Serbia-2007 400,000 Euro

13 Romania’s “Signature” Competitive Advantage in 2 types of “markets”: – Strategy towards “ODA Buyers”—i.e. recipients – Strategy towards “ODA Sellers”—i.e. other donors Determining “Signature” means: Selecting priority areas for limited MFA funds (2 million in 2009) Finding ways to export expertise through “Twinning” and other partnerships with wealthier donors Strategy: – Select “emblematic domains” (focus on regaining positive image) – Promote available expertise in trying to “recapture” EU funds through joint programs.

14 Selecting Domains: Key Criteria In-country performance (best practice/lesson learned) Responds to local need (in recipient countries) Available competency Donor Priorities Uniqueness (specificity of expertise) Emblematic appeal Feasibility of implementation International credibility Positive Image generation Limited political risk.

15 Selection: For partnership w/Traditional Donors: – Positioning/Competitive advantage: All domains (Best Practice and Lessons Learned) “Lessons learned” is most credible For “Signature Domain”: – Top performers: Child De-Institutionalization HIV/AIDS Possibly ITC

16 Criterion Domain Performance/ credibility as donor Relevance/need Available competence Feasibility Best Practice Lesson Learned Policy reason to promote Knowledge is unique/salient Domain is emblematic Political sensitivity limited risk TOTAL Permanent Consideration Study VisitsXXXXXXXXXX10 Prop. “Signature” Domains Child ProtectionXXXXXXXXXX10 HIV/AIDSXXXXXXXXXX10 ICTXXXXXXXXX9 Secondary Funding Targets Phyto-SanitaryXXXXXXXXX9 Agro-tourism XXXXXXXXX9 OPCOMXXXXXXXXX9 Arts and CultureXXXXXXXXX9 SMURDXXXXXXXX8 Legal reform (Probation) XXXXXXX6 Micro-creditsXXXXXX6 For Possible Consideration Bio AgricultureXXXXXX6 Early recoveryXXXXXX6 RASDAQ—Stock market XXXXXX6 Migration + Trafficking XXXXXX6 CybercrimeXXXXX5 Intellect. Property protectXXXXX5 Local Admin ConsortiumXXX3 Romanian Investment Fund (FRDS)XX2 CRITERIA FOR COMPETITIVE ADVANTAGE Possible Domains to form Romania’s “Signature” as a Donor Study Visits are especially interesting for representatives of countries in which the Romanian state hasn’t yet established its aid priorities, such as countries “in attention”, Central Asia, the Middle East, etc., (other than priority countries). These visits offer potential recipients the opportunity to familiarize themselves with the types of expertise available from Romanian institutions.

17 Key Considered Domains: Study visits; Signature – Child protection – HIV/AIDS – Possibly ICT Additional Domains: -Phyto-sanitary; -Early Recovery; -Agro-tourism; -OPCOM; -Arts and culture -SMURD; -Justice Reform (lesson learned)

18 Why this signature? Two proposed domains (ICT and HIV/AIDS) are good examples of overcoming the odds; Publicizing Romania’s achievements in these domains will eliminate negative stigma of the early transition in the 90’s; All former communist countries face similar challenges; Exceptional expertise in other domains can be harnessed by partnering with traditional donors.

19 How to match expertise?

20 In conclusion: Selected domains for “signature’ have inner coherence and tell a story (narrative); They help undo Romania’s image (tarnished in the 90’s with the international donor community in Children issues and HIV/AIDS), showing performance in key domains; All other domains can be promoted to potential partners in order to get back some of the funds contributed and increase Romania’s presence.


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