11 Master of Business Administration Module Module Culture & Politics: International Politics Prof. Dr. Uwe HOLTZ 28 / 29 November 2014.

11 Master of Business Administration Module Module Culture & Politics: International Politics Prof. Dr. Uwe HOLTZ 28 / 29 November 2014

2STRUCTURE FRIDAY, November 28 1. International Politics – the changing international community 2. Development / Theories of development / Measurement 3. Development Cooperation with developing countries SATURDAY, November 29 4. European development cooperation 5. German development cooperation 6. Relationship between development, democracy and good governance 7. Positive and negative factors influencing development and the role of elites 8. Outlook

333 International Politics / IP (World Politics) 1. The academic discipline of IP has traditionally focused on questions of peace and war, but in recent years this agenda has broadened to include issues such as human rights and democracy as well as culture and religion, development, climate change and environment. 2. The most international address for International Politics and Global Governance is the UN. 3. International Relations represents the study of foreign affairs and global issues among states and regional groupings within the international system. Cross cutting themes are the private sector and NGOs.

4 International Politics: the changing international community* The period since 1989/90 (end of the Cold War) and 2000 (UN Millennium Summit) has witnessed several major changes in the global political context: I. I.Changing international patterns of power; II. II.A more complex tapestry of interests; III. III.New institutional fabric; IV. IV.New approaches to international development cooperation. *Cf. Overseas Development Institute (ODI) / German Development Institute (DIE) / European Centre for Development Policy Management (ECDPM) (2013): European Report on Development 2013. Post-2015: Global Action for an Inclusive and Sustainable Future, Brussels, pp. 58-65 (26.11.14)

5 1. The balance of global economic and political order, which has for the last two centuries centred on Western Europe and the USA and during the Cold War on USA and Soviet Union, is becoming more complex. A geopolitical dynamic can be observed in the current century. 2. The rise of China, India, Brazil and Russia as global powers has been a key feature of the last decade. 3. Other countries such as Indonesia, Mexico, Nigeria, Saudi Arabia, South Africa and Turkey are also building up significant international influence, especially in their own regions and also in international partnerships. 4. The USA, the countries of Western Europe, Australia, Canada and Japan are still by some distance the world’s wealthiest countries and they form its strongest network of political, economic and military alliances. However, their ability to use hard or soft power to get others to do their bidding is diminishing. I. Changing international patterns of power – the balance of global power is shifting

6 5. “African lions” are on the way to gain more influence in international affairs. 6. 6. Non-state actors are also becoming more prominent: a) The power of transnational corporations (TNCs) and banks is well known, even if the precise dimensions of their influence over governments in many countries are sometimes unclear. Energy, finance, mining, pharmaceuticals, chemicals, shipping and mechanised agriculture have all been dominated for decades by large TNCs. b) Since the 1990s, the global civil society movement has increased its profile (e.g. in the UN) and has been a prominent critic of large international business. 7. It is clear that major changes are taking place in the international arena and in a growing number of countries that can exert global / regional influence or veto.

7 8. 8. Changes are also occurring in the field of development policy. a) Many developing countries have been growing faster than the mature industrialised countries for several decades. This is not just an Asian or Latin American phenomenon: since the turn of the century, six of the world’s ten fastest-growing countries have been African. b) Many developing countries are not (or are no longer) choosing the paths to development prescribed by the major Western powers and the multilateral institutions they dominate. c) As most Western countries struggle to meet their long-standing ODA (Official Development Assistance) commitments, Brazil, China and India now have their own international development aid agencies. (> new donors, South-South Cooperation, less political conditionality) d) Non-ODA sources of finance such as remittances outstrip aid in terms of absolute volume, although ODA remains important. e) Big business and civil society overlap in the charitable activities of contemporary philanthropists such as Bill Gates.

8 II. A more complex tapestry of interests 1. State interests and preferences are complex. They are driven by competing interest groups, they are moral as well as material, and they are often characterised by contradictions. 2. Nevertheless, at the level of global interests, it is safe to assume that the USA and the EU have strong interests in maintaining their global power and influence, while Brazil, China, and India want to increase theirs. Rising middle powers want to consolidate their regional influence as well as their sway in global decision-making. 3. Most developing countries want to break free from the ‘donor– recipient’ relationship and deal with Western countries as equals, rather than as weaker players who have to accept charity. 4. There are numerous potential conflicts of interest over resources, global influence and governance issues. 5. At the same time, there is much potential for channelling common interests and seizing opportunities to work on specific global public goods (GPG) issues such as disease eradication, renewable energy, food security or maritime governance, where both international cooperation and finance are needed.

9 III. New institutional fabric 1. The international system is characterised by sometimes fractious relations between interest driven and competitive politics, on the one hand, and interdependence and the need for cooperation on global issues and public policies on the other. 2. As ‘new’ actors gain the power to pursue their preferences in global bargaining processes, the task of designing institutions capable of balancing these heterogeneous goals becomes more uncertain, difficult and complex. 3. The last 20 years has seen a rising number of regional bodies such as the Asia- Pacific Economic Cooperation (APEC), the Association of Southeast Asian Nations (ASEAN ), the Mercado Común del Sur (Mercosur) and the African Union (AU ). 4. In addition, the G/78 has lost relevance to the G20 (governance of ‘clubs’). The legitimacy but not the power of the UN Security Council, as the highest arbiter of international conflicts, has declined. 5. Regarding global governance, the UN and its organizations are very important – in particular when it comes to the solution of global problems. 6. Some of the problems are addressed on a sectoral basis by shifting coalitions whose members include not only states but also networks, business, civil society organisations and private foundations. (e.g. Global Fund to Fight AIDS, Extractive Industries Transparency Initiative)

10 IV. New approaches to international development cooperation 1. Throughout the post-colonial era the field of development policy has been understood as encompassing a combination of aid from ‘rich’ to ‘poor’ countries. This model is a concept of the past. (> partnership approach) 2. Incentives for new forms of development cooperation are being driven partly by the marked increase in ‘South–South’ Cooperation (SSC) as emerging powers look for markets and resources, and as poorer countries look for options other than traditional ODA for supporting their development goals. 3. It is increasingly apparent that global development challenges require new forms of institutionalised international cooperation in a variety of sectors. 4. The growing importance of fragile and conflict-affected states as one focus of global poverty also demands changes in the approaches used in international development cooperation. 5. The fate of MDG 8 (“Develop a global partnership for development”) and the difficult Rio+20 process in 2012 lower confidence that there will automatically be a new global agreement just because the 2015 deadline is approaching. 6. Thinking about the role of aid beyond the reduction of extreme poverty will entail grappling with difficult issues, such as strategies for cooperation on key GPG issues and assisting partners in confronting socioeconomic inequality.

11 What does development mean? Development theories How to measure development? What is development cooperation?

1212 The basic purpose of development is to enlarge people's choices. The objective of development is to create an enabling environment for people to enjoy long, healthy and creative lives. Mahbub ul Haq (1934-1998) Founder of the Human Development Report Prof. Amartya Sen (* 1933) Professor of Economics, Harvard University Nobel Laureate in Economics, 1998 Human development is concerned with what I take to be the basic development idea: namely, advancing the richness of human life, rather than the richness of the economy in which human beings live, which is only a part of it. WHAT IS DEVELOPMENT?

13 We must not surrender to the idea that the whole world should copy the models of highly industrialized countries. (23) One must avoid the persistent confusion of growth with development, and we strongly emphasize that the prime objective of development is to lead to self-fulfilment and creative partnership in the use of a nation’s productive forces and its full human potential. (23) There is no uniform approach; there are different and appropriate answers depending on history, cultural heritage, religious traditions, human and economic resources, climatic and geographic conditions, and political patterns of nations. (24) W. Brandt on visit to U. Holtz’s constituency “Düsseldorf- Mettmann”, 29.8.1980 Willy Brandt (1913-1992) 1980: Introduction by W. B.: A Plea for Change - Peace, Justice, Jobs ( pp. 7-29)

14 Julius Nyerere (1922 –1999) J. Nyerere, U. Holtz, German Bundestag, Bonn, 19.9.1990 - Development is a process which enables human beings to realize their potential, build self-confidence, and lead lives of dignity and fulfilment. - It is a process which frees people from fear of want and exploitation. It is a movement away from political, economic, or social oppression. - Development therefore implies growing self-reliance, both individual and collective. … It has to be an effort of, by, and for the people. True development has to be people-centred. - External assistance can promote development. But to have this effect, this assistance has to be integrated into the national effort. - The responsibility for the South’s development lies in the South.[1] [1][1]. [1][1] The Challenges to the South (1990): The Report of the South Commission (under the chair of J. Nyerere), Oxford, p. 10-11, 14. Nyerere was President of Tanzania 1964-85. [1] 1990

1515 U. Holtz: Development is a long term, complex and multi-dimensional process aiming at the satisfaction of basic human needs and the realisation of human rights. It must be sustainable, people- centered and democratic. In the centre of development is the human being. This animal rationale is not just a „homo oeconomicus“, but also a „zoon politicon“ as well as homo socialis, oecologicus and culturalis. Development must be guided by values, such as human dignity and freedom, gender equality and equity, social justice and solidarity, respect and tolerance, peace. [IPU: Universal Declaration on Democracy, 1997: “DMC is a universally recognised ideal as well as a goal.” U. H.: Triangle of democracy: Elections, rule of (constitutional) law / separation of powers, human rights]

16 Development Theories Development theory is a conglomeration of theories about how desirable change in society is best achieved. Such theories draw on a variety of social science disciplines and approaches.* theories * cf. http://en.wikipedia.org/wiki/Development_theory (20.11.14)http://en.wikipedia.org/wiki/Development_theory

17 Modernization theory is used to analyze in which way modernization processes in societies take place. The theory looks at which aspects of countries are beneficial and which constitute obstacles for economic development. economic developmenteconomic development The idea is that development assistance targeted at those particular aspects can lead to modernization of 'traditional' or 'backward' societies – following the western path of development. development assistancedevelopment assistance According to the modernization theory, a correctly designed massive injection of capital coupled with intervention by the public sector would ultimately lead to industrialization and economic development of a developing nation. capitalpublic sectoreconomic developmentdeveloping nationcapitalpublic sectoreconomic developmentdeveloping nation The theory of globalization coincides with several elements from the theory of modernization. One aspect is that both theories consider that the main direction of development should be that which was undertaken by the United States and Europe. 1. Modernization

18 1.a The Rostow's stages of growth model is the most well-known example of the linear stages of growth model. He identified five stages through which developing countries had to pass to reach an advanced economy status: Rostow's stages of growthRostow's stages of growth (1)Traditional society, (2)Preconditions for take-off, (3)Take-off, (4)Drive to maturity, (5)Age of high mass consumption. According to Rostow’s model, a country needed to follow some rules of development to reach the take-off: The investment rate of a country needs to be increased to at least 10% of its GDP, GDP One or two manufacturing sectors with a high rate of growth need to be established, One or two manufacturing sectors with a high rate of growth need to be established,manufacturing An institutional, political and social framework has to exist or be created in order to promote the expansion of those sectors.

19 1.b Neo-liberalist theory Milton Friedman (1912 – 2006), an American economist who taught at the University of Chicago for more than three decades, was one of the most influential proponents of the neo-liberalist theory. economisUniversity of ChicagoeconomisUniversity of Chicago Friedman’s philosophy extolled the virtues of a free market economic system with minimal state intervention. His ideas concerning monetary policy, taxation, privatization and deregulation influenced government policies, especially during the 1980s. free marketmonetary policyderegulationfree marketmonetary policyderegulation Neo-liberalist theory became influential towards the end of the 1970s, fired by the election of Margaret Thatcher in the UK and Ronald Reagan in the USA as well as by dictator Augusto Pinochet in Chile. Also, the World Bank shifted from its Basic Needs approach to a neoclassical approach in 1980. Margaret ThatcherRonald ReaganWorld BankMargaret ThatcherRonald ReaganWorld Bank One of the implications of the theory for developing countries were the Structural Adjustment Programmes (SAPs) which the World Bank and the International Monetary Fund wanted them to adapt. Important aspects of those SAPs include: Structural Adjustment ProgrammesInternational Monetary FundStructural Adjustment ProgrammesInternational Monetary Fund (1)Fiscal austerity (reduction in government spending), Fiscal austeritygovernment spendingFiscal austeritygovernment spending (2)Privatization (which should both raise money for governments and improve efficiency and financial performance of the firms involved), Privatization (3)Trade liberalization and currency devaluation, (3)Trade liberalization and currency devaluation, Trade liberalizationcurrency devaluationTrade liberalizationcurrency devaluation (4)Retrenchment of the government and deregulation (in order to stimulate the free market). deregulation

20 2. Structuralism Structuralism is a development theory which focuses on structural aspects which impede the economic growth of developing countries. The unit of analysis is the transformation of a country’s economy from, mainly, a subsistence agriculture to a modern, urbanized manufacturing and service economy. unit of analysissubsistence agricultureservice economyunit of analysissubsistence agricultureservice economy Policy prescriptions resulting from structuralist thinking include major government intervention in the economy to fuel the industrial sector, known as Import Substitution Industrialization (ISI). government interventionindustrial sectorImport Substitution Industrializationgovernment interventionindustrial sectorImport Substitution Industrialization The logic of the strategy rests on the Infant industry argument, which states that young industries initially do not have the economies of scale and experience to be able to compete with foreign competitors and thus need to be protected until they are able to compete in the free market. The logic of the strategy rests on the Infant industry argument, which states that young industries initially do not have the economies of scale and experience to be able to compete with foreign competitors and thus need to be protected until they are able to compete in the free market. Infant industry argumentInfant industry argument The ISI strategy is supported by the Prebisch-Singer thesis, which states that over time, the terms of trade for commodities deteriorate compared to manufactured goods. This is because of the observation that the income elasticity of demand is greater for manufactured goods than that for primary products. Prebisch-Singer thesisterms of tradecommoditiesmanufactured goodsincome elasticity of demandPrebisch-Singer thesisterms of tradecommoditiesmanufactured goodsincome elasticity of demand Structuralists argue that the only way Third World countries can develop is through action by the state. Third world countries have to push industrialization and have to reduce their dependency on trade with the First World, and trade among themselves. Third WorldFirst WorldThird WorldFirst World

21 3. Dependency theory Dependency theory is essentially a follow up to structuralist thinking, and shares many of its core ideas. Development is possible, but considered to be "dependent development", i.e., it does not have an internal domestic dynamic in the developing country and thus remains highly vulnerable to the economic vagaries of the world market. Dependency thinking starts from the notion that resources flow from the ‘periphery’ of poor and underdeveloped states to a ‘core’ of wealthy countries (‘metropolis’), which leads to accumulation of wealth in the rich states at the expense of the poor states. peripheryunderdevelopedcoreperipheryunderdevelopedcore Contrary to modernization theory, dependency theory states that not all societies progress through similar stages of development. modernization theorystages of developmentmodernization theorystages of development Dependency theorists argue that underdeveloped countries remain economically vulnerable unless they reduce their connectedness to the world market. In addition to its structuralist roots, dependency theory has much overlap with Neo- Marxism and World Systems Theory, which is also reflected in the work of Immanuel Wallerstein, a famous dependency theorist. Wallerstein rejects the notion of a Third World, claiming that there is only one world which is connected by economic relations (World Systems Theory). He argues that this system inherently leads to a division of the world in core, semi-periphery and periphery. Neo- MarxismWorld Systems TheoryImmanuel WallersteinWorld Systems Theorysemi-peripheryperipheryNeo- MarxismWorld Systems TheoryImmanuel WallersteinWorld Systems Theorysemi-peripheryperiphery

22 4. Postdevelopment theory According to postdevelopment theorists, the idea of development is just a 'mental structure' (Wolfgang Sachs) which has resulted in an hierarchy of developed and underdeveloped nations, of which the underdeveloped nations desire to be like developed nations. Development thinking has been dominated by the West and is very ethnocentric, according to Sachs. Wolfgang Sachshierarchyunderdeveloped nationsdeveloped nationsethnocentricWolfgang Sachshierarchyunderdeveloped nationsdeveloped nationsethnocentric The Western lifestyle may neither be a realistic nor a desirable goal for the world's population, postdevelopment theorists argue. Development is being seen as a loss of a country's own culture, people's perception of themselves and modes of life. Postdevelopment proposes a vision of society which removes itself from the ideas which currently dominate it. society According to Arturo Escobar, postdevelopment is interested instead in local culture and knowledge, a critical view against established sciences and the promotion of local grassroots movements. Also, postdevelopment argues for structural change in order to reach solidarity, reciprocity, and a larger involvement of traditional knowledge. Arturo Escobargrassrootsstructural changesolidarityreciprocitytraditional knowledgeArturo Escobargrassrootsstructural changesolidarityreciprocitytraditional knowledge

23 5. Sustainable development Sustainable development means integrative development in such a way that it meets the needs of the present without compromising the ability of future generations to meet their own needs. (Brundtland Commission) Brundtland CommissionBrundtland Commission There exist many definitions of sustainable development, but they have in common that they all have to do with the carrying capacity of the earth and its natural systems and the challenges faced by humanity. carrying capacity of the earthnatural systemscarrying capacity of the earthnatural systems Sustainable development can be broken up into environmental sustainability, economic sustainability and sociopolitical sustainability. environmental sustainabilitysociopoliticalenvironmental sustainabilitysociopolitical

24 6. Human development theory Human development theory is a theory which uses ideas from different origins, such as ecology, sustainable development, feminism and welfare economics. ecologysustainable developmentfeminismwelfare economicsecologysustainable developmentfeminismwelfare economics It wants to avoid normative politics and is focused on how social capital and instructional capital can be deployed to optimize the overall value of human capital in an economy. normative politicssocial capitalinstructional capitalhuman capitalnormative politicssocial capitalinstructional capitalhuman capital Amartya SenAmartya Sen and Mahbub ul Haq are the most well-known human development theorists. Mahbub ul Haq Amartya SenMahbub ul Haq The work of Sen is focused on capabilities: what people can do, and be. It is these capabilities, rather than the income or goods that they receive (as in the Basic Needs approach), that determine their well being. capabilities This core idea also underlies the construction of the Human Development Index, a human-focused measure of development pioneered by the UNDP in its Human Development Reports. The economic side of Sen's work can best be categorized under welfare economics, which evaluates the effects of economic policies on the well-being of peoples. welfare economicswell-beingwelfare economicswell-being Sen wrote influential books and articles: 'Development as freedom' and ‘Democracy as a Universal Value’. Development as freedomDevelopment as freedom

25 7. Sustainable human development theory Sustainable and human development theories led to the new development paradigm of “sustainable human development”. This is a challenge facing parliaments and governments, non- governmental organizations, private enterprises, research and teaching institutions (e.g. ZEF = Center for Development Research, Bonn University or IZNE / H-BRS International Centre for Sustainable Development), communities and individuals. Brundtland Commission, “Our Common Future”, 1987, p. 43: The term “sustainable development” is defined as “…development that meets the needs of the present without compromising the ability of future generations to meet their needs.” Rio 1992 > Agenda 21; WSSD Jo’burg 2002; Rio+20 (2012)

2626 In reality, the so- called triangle of Rio is a square / quadrangle.

27 The internationally binding Cotonou ACP-EU Agreement, 2000- 2020, favours an integrated, holistic approach of development > the paradigm of “sustainable development centred on the human person“ (Art. 9 § 1) cultural environmentalsocial economic political development Art. 1 (3): “These objectives and The Parties’ international commitments shall inform all development strategies, including the Millennium Development Goals, and shall be tackled through an integrated approach taking account at the same time of the political, economic, social, cultural and environmental aspects of development.” For Cotonou, sustainable human development comprises a ‘pentagon’ of dimensions.

28 As set out in the preamble, the ACP-EU Agreement and its members: AFFIRME their commitment to work together towards the achievement of the objectives of poverty eradication, sustainable development and the gradual integration of the ACP countries into the world economy; ASSERT their resolve to make, through their cooperation, a significant contribution to the economic, social and cultural development of the ACP States and to the greater well being of their population, helping them facing the challenges of globalisation and strengthening the ACP-EU Partnership in the effort to give the process of globalisation a stronger social dimension; ACKNOWLEDGE that a political environment guaranteeing peace, security and stability, respect for human rights, democratic principles and the rule of law, and good governance is part and parcel of long term development; ACKNOWLEDGE that responsibility for establishing such an environment rests primarily with the countries concerned; ACKNOWLEDGE that sound and sustainable economic policies are prerequisites for development.

29 How to measure development? The two most prominent definitions / figures are given by the 1. WORLD BANK (GNI per capita) 2. UNITED NATIONS DEVELOPMENT PROGRAMME (Human Development Index / HDI with the 3 dimensions/criteria: life expectancy, literacy rate, GNI per capita/PPP)

30 World Bank: World Development Indicators 2014 Gross national income (GNI*) per capita is the indicator for “development” and used to determine the following income classifications: Low income countries (LICs): USD 1,035 or less in 2012; Middle income countries (MICs): USD 1,036—$12,616; High income countries (HICs): USD 12,617 and above. A further division at GNI per capita USD 4,085 is made between lower middle-income and upper middle- income economies. Source: World Bank (2014): World Development Indicators (WDI), Washington D.C. http://data.worldbank.org/sites/default/files/wdi-2014-book.pdf (06.08.2014)http://data.worldbank.org/sites/default/files/wdi-2014-book.pdf * GNI is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad.

31 1. LICs (USD 1,035 or less) : 1. LICs (USD 1,035 or less) : Afghanistan, Bangladesh, Burkina Faso, D.R. of Congo, Ethiopia, Kenya, Tanzania, Zimbabwe … USD 1,036 – 4,085 $) 2.a LMCs (USD 1,036 – 4,085 $) : Cameroon, Ghana, India, Nigeria, Pakistan, Philippines, … 2.b UMCs (USD 4,086 – 12,615 $) : Belarus, Brazil, China, Egypt, Indonesia, Mexico, South Africa, Venezuela … 3. HICs (USD 12,616 or more) : Canada, Czech Republic, Rep. of Korea, Finland, Germany, Russian Federation, Spain, Sweden, USA … WDI, 2014, 12ff see handout

32 UNDP: Human Development Report (HDR) since 1990 UNDP’s Human Development Index (HDI) is a composite index measuring average achievement in three basic dimensions of “human development”:* 1.a long and healthy life (life expectancy) 2.access to knowledge (years of schooling / literacy rate), 3.a decent standard of living (using the power purchasing parity exchange rate). Silent on the quality of the political system * HDR 2014, p. 163

33 Four groups of Human Development Index countries (HDR 2014) HDI classifications are based on HDI fixed cut-off points. The cut-off points are HDI of less than 0.550 for low human development, 0.550–0.699 for medium human development, 0.700–0.799 for high human development and 0.800 or greater for very high human development (for 187 countries). 1. Very high HD: 49 countries: e.g. Norway (rank 1), Germany (5), USA (6), Rep. of Korea (15), Italy (26), Spain (27), Poland (35), Cuba (44), Argentina (49) 2. High HD: 53 countries: Uruguay (50), Belarus (53), Russian Federation (57), Barbados (59), Mauritius (63), Venezuela (67), Mexico (71), Costa Rica (68), Turkey (69), Brazil (79), Tunisia (90), China (91), Dominican Republic 2. High HD: 53 countries: Uruguay (50), Belarus (53), Russian Federation (57), Barbados (59), Mauritius (63), Venezuela (67), Mexico (71), Costa Rica (68), Turkey (69), Brazil (79), Tunisia (90), China (91), Dominican Republic (102) 3. Medium HD: 42 countries: Maldives (103), Samoa (106), Indonesia (108), Botswana (109), South Africa (118), Cape Verde (123), Namibia (127), Viet Nam (127), India (135), Bhutan (136), Ghana (138), 142 Bangladesh (142), Equatorial Guinea (144) 4. Low HD: 43 countries: Nepal (145), Pakistan (146), Kenya (147), Angola (149), Nigeria (152), Tanzania (159), Nigeria (153), Zimbabwe (156), Haiti (168), Ethiopia (173), Malawi (174), D.R. Congo (186), Niger (187) UNDP (2014): Human Development Report 2014, New York (http://hdr.undp.org/sites/default/files/hdr14-report-en-1.pdf - 12.08.2014, p. 160-163)http://hdr.undp.org/sites/default/files/hdr14-report-en-1.pdf - 12.08.2014

34 - GINI Index. Gini index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. A Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality.[1] [1] - The OECD’s How’s Life approach. This index ‌measures people’s well-being in a much more comprehensive way, including eleven dimensions: three material living conditions plus eight quality of life conditions, including subjective well-being (scale from 1 to 10).[2] [2] - The Happy Planet Index. The HPI is the leading global measure of sustainable well- being. It integrates environmental limits into the measurement of development and puts current and future well-being centre stage. It does this by using global data on life expectancy, experienced well-being and ecological footprint.[3] [3] -The World Governance Index of the Forum for a new world governance covers covers the following domains: 1. Peace and Security; 2. Rule of Law; 3. Human Rights and Participation; 4. Sustainable Development; 5. Human Development.[4] [4] -The World Democracy Index compiled by the Economist Intelligence Unit, that measures the state of democracy in 167 countries. The index is based on 60 indicators grouped in five different categories: electoral process and pluralism, civil liberties, functioning of government, political participation, and political culture. [5] [5] -World Corruption Index / Corruption Perception Index [6] [ 1][ 1] >http://data.worldbank.org/indicator/SI.POV.GINI http://data.worldbank.org/indicator/SI.POV.GINI< (10.11.13)http://data.worldbank.org/indicator/SI.POV.GINI [ 1]http://data.worldbank.org/indicator/SI.POV.GINI [2][2] >www.oecd.org/newsroom/oecdlaunchesnewreportonmeasuringwell-being.htm www.oecd.org/newsroom/oecdlaunchesnewreportonmeasuringwell-being.htm< (10.11.13)>www.oecd.org/newsroom/oecdlaunchesnewreportonmeasuringwell-being.htm [2]>www.oecd.org/newsroom/oecdlaunchesnewreportonmeasuringwell-being.htm [3][3] >www.happyplanetindex.org www.happyplanetindex.org< (10.11.13)>www.happyplanetindex.org< [3]>www.happyplanetindex.org< [4][4] >www.world-governance.org/spip.php?article745&lang=en www.world-governance.org/spip.php?article745&lang=en< (10.11.13).>www.world-governance.org/spip.php?article745&lang=en [4]>www.world-governance.org/spip.php?article745&lang=en [5[5] >https://www.eiu.com http://en.wikipedia.org/wiki/Democracy_Index https://www.eiu.com http://en.wikipedia.org/wiki/Democracy_Index< (14.1.14).>https://www.eiu.comhttp://en.wikipedia.org/wiki/Democracy_Index [5>https://www.eiu.comhttp://en.wikipedia.org/wiki/Democracy_Index [6[6] www.transparency.org (25.11.14)/ www.transparency.org [6www.transparency.org

35 Income Inequality – Gini Index Gini index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual or household. The Gini index measures the area between the Lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. Thus a Gini index of 0 represents perfect equality, while an index of 100) implies perfect inequality. http://data.worldbank.org/indicator/SI.POV.GINI

36 Gini Index Income Gini index map according to The World Bank (various 1994-2011)

37 1.Housing Housing 2.Income Income 3.Jobs Jobs 4.Community Community 5.Education Education 6.Environment Environment 7.Civic Engagement Civic EngagementCivic Engagement 8.Health Health 9.Life Satisfaction Life SatisfactionLife Satisfaction 10.Safety Safety 11.Work-Life Balance Work-Life BalanceWork-Life Balance measure what you treasure: ( measure what you treasure: ( see handout) www.oecdbetterlifeindex.orgwww.oecdbetterlifeindex.org (28.11.13) www.oecdbetterlifeindex.org

38 OECD - The How’s Life index Housing Income Jobs Community Education Environment Civic Engagement Civic Engagement Health Life Satisfaction Life Satisfaction Safety Work-Life Balance Work-Life Balance [Missing: Family and friends, leisure time, hobbies (sports, music, reading …), intellectual and cultural satisfaction.] This index ‌(launched in 2011) measures people’s well-being in a much more comprehensive way, including eleven dimensions: three material living conditions plus eight quality of life conditions, including subjective well- being. Rate the topics according to their importance to you: “measure what you treasure”, i.e. to go beyond GDP and income. The empirical evidence gathered so far shows that health, life satisfaction and education matter most to people in OECD countries and beyond. www.oecdbetterlifeindex.orgwww.oecdbetterlifeindex.org (28.11.13) www.oecdbetterlifeindex.org

39 The Happy Planet Index*, introduced in 2006 by the New Economics Foundation (NEF), is a London based British think-tank. The HPI measures: the extent to which countries deliver long, happy, sustainable lives for the people that live in them. The Index uses global data on life expectancy, experienced well-being and ecological footprint to calculate this. See more at: http://www.happyplanetindex.org/about/#sthash.pIetwvu0.dpuf (20.11.13)http://www.happyplanetindex.org/about/#sthash.pIetwvu0.dpuf * www.happyplanetindex.org (4.1.13): The HPI demonstrates that the dominant Western modelwww.happyplanetindex.org of development is not sustainable and we need to find other development paths towards sustainable well-being.

40 151 Countries Rank 1, 2, 3: Costa Rica, Vietnam, Colombia Rank 32, 41, 46: India, UK, Germany Rank 60, 86, 105, 122,124: China, Ghana, USA, Russia, Cameroon Rank 149, 150, 151: Qatar, Chad, Botswana

41 All three components good Two components good, one middling One component good, two middling Three components middling Any with one component poor Two components poor, or "blood red" footprint www.happyplanetindex.org/assets/happy-planet-index-report.pdf

4242 The World Governance Index covers the following domains: 1. Peace and Security; 2. Rule of Law; 3. Human Rights and Participation; 4. Sustainable Development; 5. Human Development www.world-governance.org/spip.php?article745&lang=enwww.world-governance.org/spip.php?article745&lang=en (16.11.13) The World Governance Index (WGI) is an indicator developed in 2008 by the Forum for a new World Governance (FnWG)

43 Democracy index 2013. A report from The Economist Intelligence Unit, June 2014 The index is based on five categories: (i) electoral process and pluralism; (ii) civil liberties; (iii) the functioning of government; (iv) political participation; (v) political culture. The Democracy index (*2007) provides a snapshot of the state of democracy worldwide for 167 independent states and covers almost the entire population of the world and the vast majority of the world’s states (micro states are excluded). The index is based on five categories: (i) electoral process and pluralism; (ii) civil liberties; (iii) the functioning of government; (iv) political participation; (v) political culture. Countries are placed within one of four types of regimes: (a) full democracies; (b) flawed democracies; (c) hybrid regimes; (d) authoritarian regimes. Free and fair elections and civil liberties are necessary conditions for democracy, but they are unlikely to be sufficient for a full and consolidated democracy if unaccompanied by transparent and at least minimally efficient government, sufficient political participation and a supportive democratic political culture. It is not easy to build a sturdy, robust democracy. Even in long-established ones, democracy can corrode if not nurtured and protected. www.ihsnews.net/wp-content/uploads/2014/06/Democracy_Index_2013_WEB-2.pdf www.ihsnews.net/wp-content/uploads/2014/06/Democracy_Index_2013_WEB-2.pdf (06.08.2014) www.ihsnews.net/wp-content/uploads/2014/06/Democracy_Index_2013_WEB-2.pdf

44 State of Democracy 2012 State of Democracy 2012 www.eiu.com/public/topical_report.aspx?campaignid=DemocracyIndex12www.eiu.com/public/topical_report.aspx?campaignid=DemocracyIndex12 – published in 2013 (14.1.14)

46 MAP OF FREEDOM 2014 https://freedomhouse.org/sites/default/files /MapofFreedom2014.pdfhttps://freedomhouse.org/sites/default/files /MapofFreedom2014.pdf, 12.11.14

47 Bertelsmann Transformation Index > Status Index 2012 (2014) www.bti-project.de/atlas/global-viewswww.bti-project.de/atlas/global-views (06.08.2014) The bluer the higher is the transformation performance

49 What is (official) development cooperation (DC)? DC is the cooperation of industrialized countries governments with “developing” countries to support their economic, environmental, social and political development – in more general terms: DC aims to contribute to the improvement of living conditions - and to the solution of global challenges. DC in the narrow sense = Official Development Assistance (ODA) provided by “donors” to “recipients” DC in the broader sense = all activities by donors affecting the developing countries (e.g.: the EU export subsidies of agricultural products to Africa – in 2005 EUR 6 bn. – to be completely abolished now, according to SPIEGEL online on 16 January 2014 < former EU agriculture commissioner Ciolos) Development policy is global structural policy – a necessary element of pursuing mutual interests in the survival of humankind (“one world or no world”)

50 DC: Interests and motivations Foreign policy and development policy are informed by interests 1. Humanitarian (altruistic) interests: a life in human dignity for all; helping others in a spirit of solidarity (humanitarian aid, poverty eradication) 2. Own political and economic (selfish) interests: in Cold War times > winning ‘friends’ for the West (or the East), in the case of West Germany avoiding the recognition of East Germany; supporting a peaceful coexistence in the Near East (Israel); today promoting exports and paving the way for private investments and the procurement of raw materials; for some countries (Brazil, Germany, India, Japan…) getting support for a (permanent) seat in the UN Security Council. 3. Mutual interests: in favour of peace, economic advancement, environment protection, democracy, human rights …; against terrorism 3. Mutual interests: in favour of peace, economic advancement, environment protection, democracy, human rights …; against poverty, desertification, diseases, political repression, fragile statehood, war, terrorism … Short term interests – long term interests

51 OECD / Development Assistance Committee (DAC) The DAC is a unique international forum of many of the largest funders of aid, including today 29 members. The World Bank, IMF and UNDP participate as observers. The DAC is a unique international forum of many of the largest funders of aid, including today 29 members. The World Bank, IMF and UNDP participate as observers. The DAC provides definitions (ODA), statistics and summary information describing their aid efforts and policies to be included in the Development Co-operation Report. Development Co-operation ReportDevelopment Co-operation Report As members of the DAC, countries pledge to implement forthwith the Recommendations adopted by the DAC since its inception and to commit to use DAC guidelines and reference documents in formulating national development co-operation policies. DAC guidelines and reference documentsDAC guidelines and reference documents Finally, DAC members agree to submit to a regular Peer Review of their development co-operation and to serve as an examiner in reviewing other member programmes. Peer ReviewPeer Review www.oecd.org/dac/dacmembers.htmwww.oecd.org/dac/dacmembers.htm (13.1.14)

52 What is ODA (Official Development Assistance)? DC in the form of project, program or budget aid (+ debt relief and humanitarian aid) DC in the form of project, program or budget aid (+ debt relief and humanitarian aid) ODA = grants or loans to countries and territories on the DAC List of Aid Recipients (developing countries) and to multilateral agencies: ODA = grants or loans to countries and territories on the DAC List of Aid Recipients (developing countries) and to multilateral agencies: (a) undertaken by the official sector; (b) with promotion of economic development and welfare as the main objective (# military); (c) at concessional financial terms (if a loan, having a grant element of at least 25 per cent percent). cf. OECD (2013): Development Co-operation Report 2014, Paris, p. 424

53 Development Assistance (ODA) may be -a) bilateral: given from one country directly to another; -b) multilateral: given by the donor to an international organisation or – in the case of the 28 EU member states to the European Union The proportion is about 70% bilateral and 30% multilateral. About 80-85% of total developmental aid comes from government sources as official development assistance (ODA). Germany and the European Union are major DC players. The remaining 15-20% comes from private organisations such as NGOs, foundations and other development charities.

54 ODA may be performed under two forms: 1.Through Technical Cooperation, Germany and other donors transfer technical, economic and organisational knowledge and skills. It consists mainly of advisory services and the supply of materials and equipment. (in general as a “grant”) 2.The main task of Financial Cooperation is to support partner countries in the financing of infrastructure measures which are important for their development. These might be investments in the education or health system of the country, in the water supply and wastewater system, in the transport or energy sector, in climate protection or agriculture. (in general as a “soft loan”)

55 “Net” ODA Goal: The international goal for rich countries to devote 0.7% of their gross national income (previously: GDP) to official development assistance (set by the UN in 1970). ) 23 DAC countries + EU (in 2013 the Czech Republic, Iceland, Poland, the Slovak Republic and Slovenia joined the DAC): 2013: 0.30% = USD 134,8 billion (the total of “gross” aid was about 151 billion) 2012: 0.29% = USD 127,0 billion 2011: 0.31% = USD 134,5 billion 2010: 0.32 % = 128,5 billion [2009: 0.31 % = 119,8 billon USD; 2008: 0.31 % = 121,5 billion] New donors: China, India, Brazil, Turkey, Saudi Arabia, Israel, [Poland] … (estimates: some 10-12 billion USD) > South-South Cooperation > Triangular Cooperation Figures see at www.oecd.org/dac > Aid statisticswww.oecd.org/dac

56 NET ODA in 2013 www.oecd.org/dac/stats/documentupload/ODA%202013%20Tables %20and%20Charts%20En.pdfwww.oecd.org/dac/stats/documentupload/ODA%202013%20Tables %20and%20Charts%20En.pdf (08.08.2014)

57 www.oecd.org/dac/stats/documentupload/ODA%202013%20Tables %20and%20Charts%20En.pdfwww.oecd.org/dac/stats/documentupload/ODA%202013%20Tables %20and%20Charts%20En.pdf (08.08.2014)

58 www.oecd.org/dac/stats/documentupload/ODA%202013%20Tables%20and%20Charts%20En.pdfwww.oecd.org/dac/stats/documentupload/ODA%202013%20Tables%20and%20Charts%20En.pdf (08.08.2014) Components of DAC Donor’s Net ODA

59 www.oecd.org/dac/stats/totaldacflowsataglance.htmwww.oecd.org/dac/stats/totaldacflowsataglance.htm - as of 19 Dec. 2013

6060 Don’t overestimate the relevance of ODA >>> One cannot solve all the problems of all developing countries through the provision of official development assistance. >>> Avoid the omnipotence trap and compare the annual total amount of ODA (for more than 5 billion people in developing countries) which equals almost the financial transfers to East Germany (for 16 million people).

61 ODA/GNI ratio 2012 + 2008 (ODA dependency): All developing countries (LICs + MICs): All developing countries (LICs + MICs): ca. 0.6 % [2008: 0.8 %] SSA: 3,2 % in 2012 [4.2 % in 2008] ; SSA: 3,2 % in 2012 [4.2 % in 2008] ; Northern Africa + Middle East: … [0.66 %] Northern Africa + Middle East: … [0.66 %] Europe + Central Asia: 0.5 % Europe + Central Asia: 0.5 % [0.55 %] Asia: less than 0.5 % (South Asia 0.6%; East Asia+Pacific 0.1 %) Asia: less than 0.5 % (South Asia 0.6%; East Asia+Pacific 0.1 %) Latin America & Caribbean: 0.2 % [0.22 %] Latin America & Caribbean: 0.2 % [0.22 %] OECD (2010): Development Co-operation Report 2010, Paris, pp.228ff http://data.worldbank.org/indicator/DT.ODA.ODAT.GN.ZS (07.08.14) http://data.worldbank.org/indicator/DT.ODA.ODAT.GN.ZS http://wdi.worldbank.org/table/6.11http://wdi.worldbank.org/table/6.11 (07.08.14)

62 ODA/GNI ratio 2009-2013 (ODA dependency) – Country examples: LiberiaMaliTanzania 36.1 % 10.2 % NigeriaKenya 0.4 % 0.4 % 6.6 % 6.6 % Cameroon South Africa 2.3 % 2.3 % 0.3 % 0.3 % Haiti Dominican Rep. Brazil 16.0 % 0.5 % 0.5 % 0.1 % 0.1 %Afghanistan West Bank + Gaza 32.6 % 18.3 % Papua New Guinea Bangladesh 4.4 % 4.4 % 1.7 % 1.7 % India China, Indonesia, Mexico 0.1 % 0.1 % 0.0 % 0.0 % AlbaniaPakistanGeorgia Azerbaijan + Uzbekistan 2.8 % 2.8 % 0.9 % 0.9 % 4.2 % 4.2 % 0.5 % 0.5 %

63 www.oecd.org/dac/stats/Africa%20- %20Development%20Aid%20at%20a%20Glance%202013.pdf www.oecd.org/dac/stats/Africa%20- %20Development%20Aid%20at%20a%20Glance%202013.pdf (10.11.13)

64 Non-ODA flows have gained importance over the years

65 Recommended reading for all students: Stefan Lindemann (2013): Development Cooperation – Between Rejectionist and Reform-oriented Criticism. In: KfW-Development Research No 2, 8 March 2013 Recommended reading for all students: Stefan Lindemann (2013): Development Cooperation – Between Rejectionist and Reform-oriented Criticism. In: KfW-Development Research No 2, 8 March 2013 Criticism of the fundamental aims of DC Populist criticism of DC Neo-Marxist criticism of DC Post colonial/post-development criticism of DC Criticism on the effectiveness of DC Inappropriate strategic approaches to development Self-interest in donor countries Unintended side-effects and perverse (ODA) incentives Conclusion The biggest challenge for DC cooperation is to engage constructively with criticism and to learn from it, but without losing sight of DC’s strengths and successes in the process.

66 Some judgments and prejudices on development aid  James Shikwati [Kenyan economist and Director of the Inter Region Economic Network], 2002 (www.africanliberty.org/?q=node/33- 17.10.10): www.africanliberty.org/?q=node/33 The developing world needs trade, not aid, to help the poor. Aid undermines the democratic accountability of government. It also exacerbates cronyism.  William Easterly [Professor of Economics at New York University], 2006: The White Man's Burden: Why the West's Efforts to Aid the Rest Have Done So Much Ill and So Little Good. Aid has been, and will be, useless to reduce poverty and bring development to poor nations.  Dambisa Moyo [an international economist, born in Zambia], 2009: Dead Aid - When aid has not been stolen, it has been unproductive. Aid is not working. Development aid is deadly. (# micro-credits, health, education, technology transfer) - African governments view aid as a permanent source of income. There is no incentive for long-term financial planning, no reason to seek alternatives to fund development. - Aid leads to a culture of dependency and corruption and therefore causes poverty. - Africa’s era of private capital is only now beginning, and this trend has to be nurtured in order for it to continue. World Bank, 1998: Assessing Aid. A World Bank Policy Research Report, New York- Washington, D.C: Foreign aid in different times and different places has been highly effective, totally ineffective, and everything in between.

67 EU and German development cooperation are mainly guided by 3 (4) internationally agreed agreements: a)The Millennium Development Goals, 2000/2001 b)EU-ACP Partnership Agreement, 2000 c)The Paris Declaration on Aid Effectiveness, 2005 d)[The Sustainable Development Goals, 2015 – see slide 176ff] … overviewed and stimulated by the Development Assistance Committee (DAC) of the OECD

68 a) The eight MDGs 2000/2001 Goal 1: Eradicate extreme poverty and hunger (halving poverty and hunger by 2015 - with a 1990 benchmark) (halving poverty and hunger by 2015 - with a 1990 benchmark) Goal 2: Achieve universal primary education Goal 3: Promote gender equality and empower women Goal 4: Reduce child mortality Goal 5: Improve maternal health Goal 6: Combat HIV/AIDS, malaria and other diseases Goal 7: Ensure environmental sustainability Goal 8: Develop a global partnership for development “Minimum” Development Goals > Millennium Declaration, Sept. 2000: Peace, Security & Disarmament; Human Rights, Democracy and Good Governance # culture ---- Fundamental values: Freedom, equality, solidarity, tolerance, respect for nature The German government's contribution to the realisation of these goals is enshrined in its cross-ministerial Program of Action 2015, for which the BMZ is the lead ministry.Program of Action 2015

696969 UN: Millennium Development Goals Report 2014 Ban Ki-moon, UN Secretary-General: This report reaffirms that the MDGs have made a profound difference in people’s lives. Global poverty has been halved five years ahead of the 2015 timeframe. Ninety per cent of children in developing regions now enjoy primary education, and disparities between boys and girls in enrolment have narrowed. Remarkable gains have also been made in the fight against malaria and tuberculosis. The concerted efforts of national governments, the international community, civil society and the private sector have helped expand hope and opportunity for people around the world. But more needs to be done to accelerate progress. Member States are now fully engaged in discussions to define Sustainable Development Goals (SDGs), which will serve as the core of a universal post-2015 development agenda. http://mdgs.un.org/unsd/mdg/Resources/Static/Products/Progress2014/English2014.pdf

70 b) EU-ACP Partnership Agreement, 2000 Art. 1: The partnership shall be centred on the objective of reducing and eventually eradicating poverty consistent with the objectives of sustainable development and the gradual integration of the ACP countries into the world economy. These objectives and the Parties’ international commitments, including the Millennium Development Goals [2010], shall inform all development strategies and shall be tackled through an integrated approach taking account at the same time of the political, economic, social, cultural and environmental aspects of development. The partnership shall provide a coherent support framework for the development strategies adopted by each ACP State. Art. 2: ACP-EC cooperation, underpinned by a legally binding system and the existence of joint institutions, shall be guided by the internationally agreed aid effectiveness agenda … [2010],

71 c) Principles of the „Paris Declaration on Aid Effectiveness“, OECD, March 2005 1. 1. OWNERSHIP: Partner countries will exercise effective leadership over their development policies and strategies and coordinate development actions. 2. 2. ALIGNMENT: Donors will base their overall support on recipient countries’ national development strategies, institutions and procedures. 3. 3. HARMONIZATION: Donors’ actions are more harmonized, transparent and collectively effective. 4. 4. MANAGING FOR RESULTS: Managing resources and improving decision-making for results. 5. 5. MUTUAL ACCOUNTABILITY: Donor and recipient countries are accountable for development results. “Paris” was confirmed and elaborated by the “Accra Agenda for Action” (2008) and by the “Busan partnership for effective development co-operation” (2011)

72 -http://ec.europa.eu/europeaid/index_en.htm (3.11.14) http://ec.europa.eu/europeaid/index_en.htmhttp://ec.europa.eu/europeaid/index_en.htm -+ http://europa.eu/pol/dev/index_en.htm (European Commission > Development) http://europa.eu/pol/dev/index_en.htm - www.euforic.org (platform for information, communication, and debate on Europe's development cooperation) www.euforic.org European Commission, 2014 Annual Report on the European Union’s development and external assistance policies and their implementation in 2013, Luxembourg 2014 (long http://ec.europa.eu/europeaid/sites/devco/files/staff- working-document-2014_en.pdf; short http://ec.europa.eu/europeaid/sites/devco/files/ar-2014_en.pdf (3.11.14) European Commission, 2014 Annual Report on the European Union’s development and external assistance policies and their implementation in 2013, Luxembourg 2014 (long http://ec.europa.eu/europeaid/sites/devco/files/staff- working-document-2014_en.pdf; short http://ec.europa.eu/europeaid/sites/devco/files/ar-2014_en.pdf (3.11.14)http://ec.europa.eu/europeaid/sites/devco/files/staff- working-document-2014_en.pdf http://ec.europa.eu/europeaid/sites/devco/files/ar-2014_en.pdfhttp://ec.europa.eu/europeaid/sites/devco/files/staff- working-document-2014_en.pdf http://ec.europa.eu/europeaid/sites/devco/files/ar-2014_en.pdf European Commission, 2013: Annual Report 2013 on the European Union’s development and external assistance policies and their implementation in 2012, LuxembourgEuropean Commission, 2013: Annual Report 2013 on the European Union’s development and external assistance policies and their implementation in 2012, Luxembourg Overseas Development Institute (ODI) / German Development Institute (DIE) / European Centre for Development Policy Management (ECDPM), 2013: European Report on Development 2013. Post-2015: Global Action for an Inclusive and Sustainable Future, Brussels European Commission, 2010: Green Paper - EU development policy in support of inclusive growth and sustainable development. Increasing the impact of EU development policy, COM (2010) 629 final (http://eur- lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0629:FIN:EN:PDF)European Commission, 2010: Green Paper - EU development policy in support of inclusive growth and sustainable development. Increasing the impact of EU development policy, COM (2010) 629 final (http://eur- lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0629:FIN:EN:PDF)http://eur- lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0629:FIN:EN:PDFhttp://eur- lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0629:FIN:EN:PDF OECD, 2012: DAC Peer Review - European Union, Paris (www.oecd.org/dac/peerreviewsofdacmembers/50155818.pdf + www.gopa.de/uploads/media/EU_Peer_Review_2012_01.pdf)OECD, 2012: DAC Peer Review - European Union, Paris (www.oecd.org/dac/peerreviewsofdacmembers/50155818.pdf + www.gopa.de/uploads/media/EU_Peer_Review_2012_01.pdf)www.oecd.org/dac/peerreviewsofdacmembers/50155818.pdf www.gopa.de/uploads/media/EU_Peer_Review_2012_01.pdfwww.oecd.org/dac/peerreviewsofdacmembers/50155818.pdf www.gopa.de/uploads/media/EU_Peer_Review_2012_01.pdf EU: Development Cooperation - References

73 U. Holtz, 2000: Partnership for the 21st Century - A Preliminary Assessment of the EU-ACP Agreement, in: D+C (Development and Cooperation) 2/2000, S. 8-12. (http://www.inwent.org/E+Z/1997-2002/de200-3.htmU. Holtz, 2000: Partnership for the 21st Century - A Preliminary Assessment of the EU-ACP Agreement, in: D+C (Development and Cooperation) 2/2000, S. 8-12. (http://www.inwent.org/E+Z/1997-2002/de200-3.htmhttp://www.inwent.org/E+Z/1997-2002/de200-3.htm Lauren M. Phillips, 2008: International relations in 2030. The transformative power of large developing countries, Bonn (www.die-gdi.de/CMS- Homepage/openwebcms3.nsf/(ynDK_contentByKey)/ANES-7FFHZ9/$FILE/DP 3.2008.pdf)Lauren M. Phillips, 2008: International relations in 2030. The transformative power of large developing countries, Bonn (www.die-gdi.de/CMS- Homepage/openwebcms3.nsf/(ynDK_contentByKey)/ANES-7FFHZ9/$FILE/DP 3.2008.pdf)www.die-gdi.de/CMS- Homepage/openwebcms3.nsf/(ynDK_contentByKey)/ANES-7FFHZ9/$FILE/DP 3.2008.pdfwww.die-gdi.de/CMS- Homepage/openwebcms3.nsf/(ynDK_contentByKey)/ANES-7FFHZ9/$FILE/DP 3.2008.pdf Mikaela Gavas/Deborah Johnson/Simon Maxwell, 2010: Consolidation or Cooperation: The Future of EU Development Cooperation (DIE Discussion Paper 6/2010), Bonn (www.die-gdi.de/CMS- Homepage/openwebcms3.nsf/(ynDK_contentByKey)/ANES-875B3N/$FILE/DP 6.2010.pdf)Mikaela Gavas/Deborah Johnson/Simon Maxwell, 2010: Consolidation or Cooperation: The Future of EU Development Cooperation (DIE Discussion Paper 6/2010), Bonn (www.die-gdi.de/CMS- Homepage/openwebcms3.nsf/(ynDK_contentByKey)/ANES-875B3N/$FILE/DP 6.2010.pdf)www.die-gdi.de/CMS- Homepage/openwebcms3.nsf/(ynDK_contentByKey)/ANES-875B3N/$FILE/DP 6.2010.pdfwww.die-gdi.de/CMS- Homepage/openwebcms3.nsf/(ynDK_contentByKey)/ANES-875B3N/$FILE/DP 6.2010.pdf Alex Wilks (Hg.): The Reality of Aid Report 2010. Aid and Development Effectiveness: Towards Human Rights, Social Justice and Democracy, Quezon City/Philippinen 2010 (www.realityofaid.org/roa-reports/index/secid/375/Aid-and- Development-Effectiveness-Towards-Human-Rights-Social-Justice-and- DemocracyAlex Wilks (Hg.): The Reality of Aid Report 2010. Aid and Development Effectiveness: Towards Human Rights, Social Justice and Democracy, Quezon City/Philippinen 2010 (www.realityofaid.org/roa-reports/index/secid/375/Aid-and- Development-Effectiveness-Towards-Human-Rights-Social-Justice-and- Democracywww.realityofaid.org/roa-reports/index/secid/375/Aid-and- Development-Effectiveness-Towards-Human-Rights-Social-Justice-and- Democracywww.realityofaid.org/roa-reports/index/secid/375/Aid-and- Development-Effectiveness-Towards-Human-Rights-Social-Justice-and- Democracy European Think-Tanks Group, 2010: New Challenges -,New Beginnings. Next Steps in European Development Cooperation (Overseas Development Institute et al. - www.odi.org.uk/resources/download/4735.pdf)European Think-Tanks Group, 2010: New Challenges -,New Beginnings. Next Steps in European Development Cooperation (Overseas Development Institute et al. - www.odi.org.uk/resources/download/4735.pdf)www.odi.org.uk/resources/download/4735.pdf European Think Tanks Group, September 2014: Why Europe’s problems need global solutions and global problems need European action, London et.al. European Commission, 2014: International cooperation and development. Fighting poverty in a changing world, Brussels (http://europa.eu/pol/pdf/flipbook/en/development_cooperation_en.pdfhttp://europa.eu/pol/pdf/flipbook/en/development_cooperation_en.pdf

74 28 Member states of the European Union http://europa.eu/about-eu/countries/index_en.htmhttp://europa.eu/about-eu/countries/index_en.htm (14.1.14)

75 EU - a major global actor both economically and politically (?) A key challenge of the EU for the 21st century will be to make itself heard even as the USA and China dominate global discussions – preferably by its soft and structural power. Joseph Nye, an American political scientist [(2004): Soft Power – The Means of Success in World Politics, New York] made the following distinction in pursuing the State‘s interests: - The State may use its military or economic power by resorting to war, secret service actions and coercive diplomacy or by imposing economic sanctions (= hard power) - The State may use its military or economic power by resorting to war, secret service actions and coercive diplomacy or by imposing economic sanctions to shape the behaviour and interests of other actors in the international arena (= hard power) - or invest money and take influence by the (cultural) attractiveness of its (American) way of life as well as of its values and institutions (= soft power). Xuewu Gu (Bonn University): - Structural power (s - Structural power (structural power has its source in the statics of international constellations or arrangements in which the states are embedded - it is a contextual power; the given structure is definable in material, cultural, institutional, economic, geographical, scientific and technological, as well as social terms.)

76 EU Development cooperation The European Community - a unique donor > triple role in development: 1. bilateral donor 2. multilateral donor 3. coordinating framework for European Union (EU) – nowadays 28 – Member States The European Commission - the executive body, accountable to the European Parliament and its development cooperation committee as well as the member states meeting in Councils

77 Implementation The European Commission EuropeAid Development and Co-operation is the Directorate-General (DG DEVCO) responsible for designing EU development policies and delivering aid through programmes and projects across the world. EuropeAid Development and Co-operation is the Directorate-General (DG DEVCO) responsible for designing EU development policies and delivering aid through programmes and projects across the world. O Other external services of the European Commission: ECHO (Humanitarian Aid), DG Trade, DG Env… The European Investment Bank (EIB) The EU Delegations around the world as part of the new European External Actions Service (EEAS) The 28 EU Member States NGOs and the other actors of the European civil society.

78 The mission EuropeAid’s work is carried out with the ultimate aim of support for: EuropeAid’s work is carried out with the ultimate aim of support for:  reducing poverty in the world;  ensuring sustainable development;  promoting democracy, peace and security.  promoting democracy, peace and security. As well as designing policies to achieve these objectives, EuropeAid is responsible for implementing the EU’s external aid instruments. EuropeAid coordinates the actions of the EU institutions, the EU Member States and other EU actors around the Union’s core values, objectives and common priorities.

79 Delivery The Commission’s external assistance is implemented through three main delivery modalities. The choices depend on a joint Commission/government analysis of the country and sector environment. 1. The project approach is used to support non-state actors, for regional programmes, or where conditions do not allow for use of government systems. 2. The sector approach aims to underpin a sector policy and a strategic framework monitored through performance criteria and indicators. (2007 commitments for GBS: 1.8 bn € = 23%; nowadays much higher) 3. The EC also supports national or macro level goals expressed in national policy and strategy documents through general budget support, with funds transferred to the national treasury of the beneficiary country. (2007 commitments for GBS: 1.8 bn € = 23%; nowadays much higher)

80 The EU as a whole, composed of the 28 Member States and the European Commission, is the world’s leading aid donor. Development is an increasingly important part of the EU’s external relations, along with its foreign, security and trade policies. Development is an increasingly important part of the EU’s external relations, along with its foreign, security and trade policies. Some 140 countries benefit from EU’s aid. Some 140 countries benefit from EU’s aid.

81 With €56.5 billion of official development assistance made available in 2013, the European institutions and 28 EU countries together provided for more than half of global official aid (52%), making it the biggest donor worldwide. In 2013, the European institutions disbursed some €16 bn (< about 10% was channelled to and through civil society organisations). In 2013, the EU committed a substantial sum — €14.86 billion — to external development assistance. Low-income and least developed countries were the principal beneficiaries. The EU’s strong commitment to help developing countries catch up is both an expression of solidarity and a means of achieving a safer and more prosperous world. The EU plays a role in coordinating the actions of the different donors. The EU’s development activities are coordinated with its efforts in other fields, such as humanitarian aid, environment, security and trade policy. Cf. http://europa.eu/pol/pdf/flipbook/en/development_cooperation_en.pdf, p. 3 (26.11.14) http://europa.eu/pol/pdf/flipbook/en/development_cooperation_en.pdf

82 The EU’s development funding mechanisms can have either a geographical or a thematic scope. For the years 2014–20, three geographic instruments define where and how the money is spent. : The bulk of development funding comes from geographical instruments: The European Development Fund is the main instrument providing aid to African, Caribbean and Pacific (ACP) countries and overseas countries and territories. The Development Cooperation Instrument covers cooperation with Latin America, Asia, central Asia, the Middle East and southern Africa. It encompasses five thematic programmes addressing global challenges: environmental protection, the role of non-state actors, food security, migration, and human and social development. Finance for cooperation with the other neighbouring countries is provided through the European Neighbourhood Instrument. European Commission (2014): International cooperation and development. Fighting poverty in a changing world, Brussels

83 www.oecd.org/dac/stats/documentupload/EU.JPGwww.oecd.org/dac/stats/documentupload/EU.JPG - as of 19 Dec. 2013

84 European Commission (2014): International cooperation and development. Fighting poverty in a changing world, Brussels

86 EU Development Policy: An Agenda for Change 2012 http://ec.europa.eu/europeaid/sites/devco/files/staff-working-document-2014_en.pdf The Foreign Affairs Council (FAC) in May 2012 endorsed the Communication ‘Increasing the Impact of EU Development Policy: An Agenda for Change’ which sets out a number of strategic measures that aim to further increase the impact of EU development policy on poverty reduction and improving results with respect to the MDGs. To this end, the Agenda for Change proposes a series of major changes in the way EU assistance is delivered. These include, amongst others, a differentiated approach to ensure that grant aid is directed where it is most needed and can have the greatest impact in terms of poverty reduction; a focus on a maximum of three sectors per country; a priority focus on the areas of support for good governance, democracy and human rights, and inclusive and sustainable growth; greater use of innovative financing mechanisms; improved policy coherence and increased coordination and joint actions with Member States. The recommendations of the Agenda for Change have been integrated into the financial instruments for the period 2014-2020 and the European Development Fund (EDF).

87 Responding to global challenges and supporting long-term reforms At least 20 % of the European Union budget for 2014-2020 will be spent on climate-related projects and policies, following the European Parliament's approval in November 2013 of the 2014-2020 EU budget. The EU’s development policy will contribute to achieving the 20 % overall commitment, with an estimated EUR 1.7 billion for climate spending in developing countries in 2014-2015 alone. Efforts to reduce emissions from deforestation and forest degradation in developing countries (the REDD+ agenda) are supported by the EU. Addressing the challenges of fragile and conflict-affected countries is a top priority for the EU as outlined in the Agenda for Change amongst other policy initiatives. In 2013, the EU stepped up efforts to build resilience in crisis prone countries. (food + nutrition, land degradation, disaster risk reduction …) The resilience approach allows for more effective EU collaborative action, bringing together humanitarian assistance, long- term development cooperation and on-going political engagement.

88 2014-2020: new challenges require new resources In a changing and globalised world that is affected by uncertainty and long term crisis, and where emerging economies like China, India and Brazil are asserting their influence, Europe must stand together and be an active partner in shaping global change. The external financing instruments funded by the EU budget and the European Development Fund will ensure that the EU can speak with a united and stronger voice and promote poverty reduction, democracy, peace solidarity, stability and prosperity, both in our immediate neighbourhood and across the world. Policy coherence for development: As the EU is a major global actor, its policies can have a strong impact, positive or negative, on developing societies and economies. The Lisbon Treaty requires the European Union to take the objectives of development cooperation into account in all its policies. Besides making an effort to avoid negative impacts by identifying the most damaging consequences of policies and, where possible, amending them, this also entails looking for synergies between the objectives of EU development policies and other EU policies to make them more effective for both EU and developing societies and economies. This principle is referred to as Policy Coherence for Development (PCD).

89 Neven Mimica, Member of the European Commission for International Cooperation and Development [born 12 October 1953 - Deputy Prime Minister for Internal, Foreign and European Policy 2011-13, Croatia] Responsibilities: - Ensuring the EU delivers on its commitments to the Millennium Development Goals to reduce poverty. - Setting out the Commission and EU positions for the negotiations on the United Nations Millennium Development Goal agenda after 2015. - Working with national governments in a way that makes the EU's development aid more effective. - Launching negotiations on a revised Cotonou agreement with the African, Caribbean and Pacific Group of States. Neven Mimica is part of the following Project Teams: - Better Regulation and Interinstitutional Affairs Better Regulation and Interinstitutional AffairsBetter Regulation and Interinstitutional Affairs - Budget and Human Resources Budget and Human ResourcesBudget and Human Resources - Europe in the World Europe in the WorldEurope in the World http://ec.europa.eu/commission/2014-2019/mimica_enhttp://ec.europa.eu/commission/2014-2019/mimica_en (26.11.14)

90 The institutional context for development cooperation of the EU The Lisbon Treaty, 1 December 2009: entry into force A European treaty for the 21st century to make EU external action more coherent and effective and also to increase the EU’s influence in the world A European treaty for the 21st century to make EU external action more coherent and effective and also to increase the EU’s influence in the world Under the direction of the High Representative of the Union for Foreign Affairs and Security Policy, Catherine Ashton Under the direction of the High Representative of the Union for Foreign Affairs and Security Policy, Catherine Ashton Covers foreign, security and development policy (legal basis: Art. 127) Covers foreign, security and development policy (legal basis: Art. 127) Cf. http://ec.europa.eu/europeaid/multimedia/presentations- speeches/documents/nl_roi_en.pdf (5.1.13)http://ec.europa.eu/europeaid/multimedia/presentations- speeches/documents/nl_roi_en.pdf

91 The Lisbon Treaty states that: “Union development cooperation policy shall have as its primary objective the reduction and, in the long term, the eradication of poverty” (Art. 208) The treaty further states that: “The Union shall take account of the objectives of development cooperation in the policies that it implements which are likely to affect developing countries.” (Art. 208) Regarding development cooperation, the Lisbon Treaty further stipulates that: “ in order to promote the complementarity and efficiency of their action, the Union and the Member States shall coordinate their policies on development cooperation and shall consult each other on their aid programmes” (Art. 210)

92 The role of the private sector European Commission, 2014 Annual Report on the European Union’s development and external assistance policies and their implementation in 2013, Luxembourg 2014: “The importance of private sector development for growth is widely recognised. In the first place, the private sector creates jobs and income, which are the best insurance against extreme poverty. In the second, the private sector also provides goods and services to the poor, such as food, telecommunications and financial services. Some businesses provide very specific products and services such as microfinance, micro insurance or generic medicines. A dynamic private sector can therefore be a source of innovation to meet the specific needs of the poor. Furthermore, the private sector generates tax revenue which enables public authorities in partner countries to provide basic infrastructure, create a business-enabling environment and to provide social safety nets to the poorest. Lastly, a stronger and more diversified private sector can help to strengthen civil society by empowering marginalised groups, generating income and offering wider access to education and health services. Overall, private sector development is one of the most effective ways to achieve the objectives of sustainable growth and poverty reduction.” U. Holtz: All these expectations may come true; however, politics should look at it that the positive affects of the private sector are maximised and the negative ones are minimised.

93 The role of civil society Civil society is a key partner of donors in developing countries. Non-state actors can, for instance, include non-governmental organisations (NGOs), professional associations, social partners, universities or the media. They are usually close to local communities and can help donors to respond to people’s needs. Hence, they increasingly take on more responsibility in shaping strategies and programming. A stronger role of civil society in development helps improving local ownership. European Commission (2014): International cooperation and development. Fighting poverty in a changing world, Brussels (http://europa.eu/pol/pdf/flipbook/en/development_cooperation_en.pdf - 26.11.14)http://europa.eu/pol/pdf/flipbook/en/development_cooperation_en.pdf

94 EU: Project examples in Mali, Sri Lanka and Brazil [video] Climate Change

95 Evaluations 2012 in Latin America http://ec.europa.eu/europeaid/multimedia/publications/documents/annual- reports/europeaid_annual_report_2013_full_en.pdf.pdfhttp://ec.europa.eu/europeaid/multimedia/publications/documents/annual- reports/europeaid_annual_report_2013_full_en.pdf.pdf - p. 90 (14.1.14)

96 Evaluations in 2012 in SSA Sub-Saharan Africa (including South Africa) In 2012, 362 ongoing national projects and 46 ongoing regional programmes, representing total EU commitments of more than EUR 2.6 billion, were reviewed by independent experts in 44 Sub-Saharan countries. Additionally, 67 completed projects which had benefited from a total EU contribution of EUR 268 million and seven SPSPs [sector policy support programmes] were assessed (ex-post ROM [monitoring]). Analysis of the results shows that 70.4 % of national ongoing projects were performing "very well" or "well"; 24.9 % of reviewed projects experienced some problems, and 4.7 % encountered major difficulties. http://ec.europa.eu/europeaid/multimedia/publications/documents/annual- reports/europeaid_annual_report_2013_full_en.pdf.pdfhttp://ec.europa.eu/europeaid/multimedia/publications/documents/annual- reports/europeaid_annual_report_2013_full_en.pdf.pdf - p. 71(14.1.14)

97 http://ec.europa.eu/europeaid/multimedia/publications/documents/annual- reports/europeaid_annual_report_2013_full_en.pdf.pdfhttp://ec.europa.eu/europeaid/multimedia/publications/documents/annual- reports/europeaid_annual_report_2013_full_en.pdf.pdf - p. 72 (14.1.14)

98 Evaluations in Asia http://ec.europa.eu/europeaid/multimedia/publications/documents/annual- reports/europeaid_annual_report_2013_full_en.pdf.pdfhttp://ec.europa.eu/europeaid/multimedia/publications/documents/annual- reports/europeaid_annual_report_2013_full_en.pdf.pdf - p. 107 (14.1.14)

99 p. 168

100 OECD DAC peer review of the European Union (28 March 2012) Examiners: Japan and Norway Since the 2007 peer review, the EU institutions have taken positive steps to make the programme more effective and increase its impact. These steps include major organisational restructuring; efforts to streamline financial instruments; and a strategic approach to making co-operation more co-ordinated and aligned. They have also enhanced their dialogue with civil society. Recommendations to improve the effectiveness of EU aid ● Use the proposed Agenda for Change as an opportunity to build a common development co-operation strategy with, and amongst, EU member states.

101 ● Ensure that the 2014-20 financial framework supports the EU’s strategic development priorities with appropriate funding and tools, especially security and transition, mainstreaming gender equality and environment, and supporting private sector development. ● Ensure coherence between EU and member states’ national policies and their international development goals. The Commission has developed a sound strategic framework for promoting policy coherence for development; it should make every effort to use this to its full potential. ● Publicise the positive effects of development efforts in order to garner political and public support. ● Reduce the administrative burden on partners and EU staff by simplifying the complex budget and administrative processes, and devolving more authority to staff in the field.

102 Recommended reading for all students: European Think Tanks Group (September 2014): Why Europe’s problems need global solutions and global problems need European action The publication is the result of a collaboration between four of Europe’s leading think-tanks on international development. They are: The Overseas Development Institute (ODI), London, UK; German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE), Bonn, Germany; Fundación para las Relaciones Internacionales y el Diálogo Exterior (FRIDE), Madrid, Spain; The European Centre for Development Policy Management (ECDPM), Maastricht, Netherlands.

103 1. Which new challenges are detected? 2. The “global strategy” for the EU – proposed by the four think tanks - should be focused on which points/topics? 3. What is understood by a ‘whole of government approach’ and where the scientists see shortcomings? 3. What is understood by a ‘whole of government approach’ and where the scientists see shortcomings?

104 1. Which new challenges are detected? Global challenges (climate change, poverty, scarcity of natural resources, insecurity, migration and so on) are inter-related and complex. They impact on the national development, welfare and environment of all countries, regardless of their levels of income. Geopolitics is changing, and power is shifting towards a growing, heterogeneous group of middle-income countries, consisting not only of the increasingly powerful emerging economies (the BRICS) but also of the so-called ‘middle- powers’ (countries like Indonesia, Vietnam, Turkey, Nigeria, Egypt or Mexico). There is a declining number of low-income countries, currently 34 and forecast to fall further. Most of these low-income countries are characterised by weak state structures. There is an increasing number of fragile and conflict-affected states, currently 51, posing specific problems that require multi- dimensional responses.

105 2. The “global strategy” for the EU – proposed by the four think tanks - should be focused on which points/topics? The EU will need to develop an EU global strategy that links internal and external action and targets for sustainable development and global collective action. We endorse the idea of a global strategy for the EU that tackles responsible and inclusive growth; a sustainable, green economy; peace and security; democracy and human rights; and the fight against poverty and inequality. A global strategy also needs to include a rekindled view on multilateral governance and multilateral institutions, and on strategic partnerships, based on shared interests and concrete avenues for global collective action. The EU will need to enable strong leadership across policy areas.

106 3. What is understood by a ‘whole of government approach’ and where the scientists see shortcomings? The EU remains ill equipped to deliver ‘whole of government’ approaches and to engage more effectively across internal and external policy fields. There are: (i) too many lacks of coherent policies within the EU and the European Parliament as well as between the EU and its member states, (ii) too many Comissioners, (iii) too less endeavours to pursue holistic approaches to key challenges. The test of any governance system is whether it can deal efficiently and effectively with the challenges it faces. In this case, the system needs to deliver a ‘whole of government’ approach, integrating internal and external dimensions, and helping to broker the global deals that are necessary to provide global public goods.

107 Recommended reading for all students: Inge Kaul (2014): Promoting sustainable resilience: Addressing the macro-risks of vulnerability. Comment, in: http://hdr.undp.org/en/promoting-sustainable-resiliencehttp://hdr.undp.org/en/promoting-sustainable-resilience Before coming to the article, the following question should be answered: What is meant by the term Global Public Goods (GPGs)? Examples of GPG-type policy issues are global climate stability, international financial stability, communicable disease control, peace and security, the institutional architecture of international trade and finance, global communication and transportation systems, and global norms such as basic human rights. Development depends on an adequate supply of GPGs; and an adequate provisioning of GPGs will remain an elusive goal without enhanced global development. Whether we live in the North or in the South, whether we are poor or rich, our daily lives depend, in large measure, on the adequate availability of these goods. (DIE Discussion Paper 2/2013), Bonn, p. 1 (www.die-gdi.de/uploads/media/DP_2.2013.pdf) Source: I. Kaul (2013): Global Public Goods. A concept for framing the Post-2015 Agenda? (DIE Discussion Paper 2/2013), Bonn, p. 1 (www.die-gdi.de/uploads/media/DP_2.2013.pdf)www.die-gdi.de/uploads/media/DP_2.2013.pdf I. Kaul: We all require for our well-being private goods as well as public goods --- private goods such as bread, butter, shoes, or a house, and public goods such as law and order, street signs, an intact ozone layer, institutions to facilitate the efficient functioning of markets, or a healthy environment. … Like civil society, private business can also be an active promoter and shaper of PGs. (www.yorku.ca/drache/talks/pdf/apd_kaulfin.pdf)www.yorku.ca/drache/talks/pdf/apd_kaulfin.pdf

108 Recommended reading for all students: Inge Kaul (2014) ‘Vulnerability’ and ‘resilience’ are among the new catch-words of the international community. These vulnerabilities range from the vulnerability of supply chains to the vulnerability of communities and people; and the proposed policy responses – aimed at strengthening resilience – range, accordingly, from the protection of maritime transport to installing early warning systems, putting houses on stilts and offering people affordable insurance. Today’s multiplying risks and vulnerabilities can be traced back to a common root cause: the sovereignty paradox. The sovereignty paradox arises because in almost all areas of policy states tend to hold on to a strict, conventional notion of sovereignty. Fear that international cooperation could jeopardise their policymaking sovereignty, leads states to shy away from effective and fair international cooperation. States’ concerns about a loss in policymaking sovereignty is, in many instances, justified, as power politics and ‘zero sum’-oriented strategies of international cooperation are still quite common, despite the rising trend towards multi-polarity and growing demands for more global fairness. Moreover, solving many global challenges means creating a global public good (GPG); and GPGs, like any other type of public good, are subject to free-riding. Importantly, in this case, free-riding is not limited to market actors but occurs also by states.

109 Inge Kaul Escaping from the policy trap of the sovereignty paradox: 1. Devising a sovereignty-compatible approach to international cooperation: This will first require compelling proof that for global-issues marked by policy interdependence among countries, fair and effective international cooperation is in states’ self-interest. Second, we must forge consensus on a notion of ‘smart’ and mutually respectful sovereignty, i.e. an exercise of sovereignty that combines the pursuit of national interest with respect for the sovereignty of other states, including respect for the fact that others may want to derive a net-benefit from international cooperation. 2. Establishing an independent high-level global stewardship council: 2. Establishing an independent high-level global stewardship council: This body would assist state and nonstate actors to be more aware of the global public domain, i.e. the ensemble of GPGs, including human and natural global commons. The Council should be a multi-actor body, concerned about combining the interests of states, however diverse, with the systemic requirements of GPGs, including those of the natural and human- made commons and those of the Earth as a whole. True, states are, today, often only one group of actors. Nevertheless, they have legislative powers; and, therefore, it would be useful to create such a Global Stewardship Council within the UN.

110110 German Development Cooperation – References (1) www.bmz.de/en/index.html (BMZ/German Federal Ministry for Economic co-operation and Development) ; www.giz.de/en/home.html www.bmz.de/en/index.html (BMZ/German Federal Ministry for Economic co-operation and Development) ; www.giz.de/en/home.html www.bmz.de/en/index.htmlwww.giz.de/en/home.html www.bmz.de/en/index.htmlwww.giz.de/en/home.html oFederal Ministry for Economic Cooperation and Development/Germany (BMZ), The German Government’s 14th Development Policy Report. Development Policy White Paper, Bonn/Berlin 2013 (www.bmz.de/en/publications/type_of_publication/special_publications/Weissbuch_lar ge.pdf) oBMZ: Minds for Change – Enhancing Opportunities, Bonn – Berlin 2011 (www.bmz.de/en/publications/type_of_publication/special_publications/Minds_for_Change. pdf) www.bmz.de/en/publications/type_of_publication/special_publications/Minds_for_Change. pdfwww.bmz.de/en/publications/type_of_publication/special_publications/Minds_for_Change. pdf oBMZ : Strategy for Development Cooperation with Global Development Partners (2011- 2015), Bonn 2011 (www.bmz.de/en/publications/type_of_publication/strategies/Strategiepapier307_06_2011.p df) www.bmz.de/en/publications/type_of_publication/strategies/Strategiepapier307_06_2011.p dfwww.bmz.de/en/publications/type_of_publication/strategies/Strategiepapier307_06_2011.p df oGerman Government: Shaping Globalization – Expanding Partnerships – Sharing Responsibility, Berlin 2012 (www.auswaertiges- amt.de/cae/servlet/contentblob/616584/publicationFile/167908/Gestaltungsmaechtekonzept %20engl.pdf) www.auswaertiges- amt.de/cae/servlet/contentblob/616584/publicationFile/167908/Gestaltungsmaechtekonzept %20engl.pdfwww.auswaertiges- amt.de/cae/servlet/contentblob/616584/publicationFile/167908/Gestaltungsmaechtekonzept %20engl.pdf oGIZ/KfW (eds.) (2014): Private Sector Development in Agriculture, Kenya. Final Evaluation 2013 – Brief Report, Bonn/Eschborn/Frankfurt (www.giz.de/en/downloads/giz2014-en-Kenia-Ex-post-Evaluierung.pdf) www.giz.de/en/downloads/giz2014-en-Kenia-Ex-post-Evaluierung.pdf oUwe Holtz (2013): Positive and negative factors influencing development. In: www.uwe-holtz.uni-bonn.de/lehrmaterial/ws-2014-15/development-factors-holtz- 2013/view www.uwe-holtz.uni-bonn.de/lehrmaterial/ws-2014-15/development-factors-holtz- 2013/view www.uwe-holtz.uni-bonn.de/lehrmaterial/ws-2014-15/development-factors-holtz- 2013/view oBirdsall, Nancy/Kharas, Homi (2014): The Quality of Official Development Assistance (QuODA). Third Edition. Washington, D.C.: Center for Global Development/Global Economy and Development at Brookings. (www.cgdev.org/publication/quality-official-development-assistance-quoda-third-edition-0)

111 References (2) o Peter Nunnenkamp/Hannes Öhler: Aid Allocation through Various Official and Private Channels. Need, Merit and Self-Interest as Motives of German Donors (Kiel Institute for the World Economy – Working Paper No. 1536), Kiel 2009 o Deutsche Welthungerhilfe/tdh: The Reality of Aid 2011. A critical assessment of German development policy, Bonn 2011 (http://www.welthungerhilfe.de/fileadmin/media/pdf/Partner/shadowDa c_englisch.pdf) http://www.welthungerhilfe.de/fileadmin/media/pdf/Partner/shadowDa c_englisch.pdfhttp://www.welthungerhilfe.de/fileadmin/media/pdf/Partner/shadowDa c_englisch.pdf o Sebastian Harnisch/Siegmar Schmidt: Auf Augenhöhe. 50 Jahre Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung, Baden-Baden 2012 o www.oecd.org/dac (Organisation for Economic Co-operation and Development/Development Assistance Committee) www.oecd.org/dac o OECD: Development Co-operation Report 2010, Paris 2010 (cf. www.oecd.org/document/54/0,3343,en_2649_33721_42195902_1_1_1_1,0 0.html) www.oecd.org/document/54/0,3343,en_2649_33721_42195902_1_1_1_1,0 0.html www.oecd.org/document/54/0,3343,en_2649_33721_42195902_1_1_1_1,0 0.html o OECD: Development Co-operation Report 2014, Paris 2014 o OECD/DAC: Peer Review of Germany’s development co-operation policy, Paris 2010. (www.oecd.org/dataoecd/35/23/46287397.pdf ) www.oecd.org/dataoecd/35/23/46287397.pdf o terre des hommes/Deutsche Welthungerhilfe: Die Wirklichkeit der Entwicklungspolitik 2014. Eine kritische Bestandsaufnahme der deutschen Entwicklungszusammenarbeit, Bonn, November 2014 (www.welthungerhilfe.de/fileadmin/user_upload/Mediathek/Fachpapiere/Berich t_zur_Wirklichkeit_der_Entwicklungspolitik_2014_-_Welthungerhilfe.pdf) www.welthungerhilfe.de/fileadmin/user_upload/Mediathek/Fachpapiere/Berich t_zur_Wirklichkeit_der_Entwicklungspolitik_2014_-_Welthungerhilfe.pdfwww.welthungerhilfe.de/fileadmin/user_upload/Mediathek/Fachpapiere/Berich t_zur_Wirklichkeit_der_Entwicklungspolitik_2014_-_Welthungerhilfe.pdf

112 The development cooperation policy of the Federal Republic of Germany A more or less independent area of German foreign policy* A more or less independent area of German foreign policy* Formulated and predominantly executed by the Federal Ministry for Economic Co-operation and Development/BMZ [* 1961] (with the corresponding Bundestag Committees as parliamentary counterpart: The Committee for Economic Cooperation and Dev + the Budget Committee) Formulated and predominantly executed by the Federal Ministry for Economic Co-operation and Development/BMZ [* 1961] (with the corresponding Bundestag Committees as parliamentary counterpart: The Committee for Economic Cooperation and Dev + the Budget Committee) Carried out by implementing organizations (mainly by KfW/Kreditanstalt für Wiederaufbau - Development Bank) and GIZ/Deutsche Gesellschaft für Internationale Entwicklung) Carried out by implementing organizations (mainly by KfW/Kreditanstalt für Wiederaufbau - Development Bank) and GIZ/Deutsche Gesellschaft für Internationale Entwicklung) Orientations and directions are stemming from internationally agreed goals (and own interests) Orientations and directions are stemming from internationally agreed goals (and own interests) * From the almost 10 billion € (= 13 billion USD) of German ODA in 2012 about 6 billion € are contained in the German national budget where it is departmental budget 23 – the rest is coming from other sources: federal ministries, debt relief, federal states, imputed students costs (for some 80,000 students à 8627 € p.a.) …)

113 OECD/DAC (2010): Peer Review Germany (http://www.oecd.org/dac/peerreviewsofdacmembers/46439355.pdf)http://www.oecd.org/dac/peerreviewsofdacmembers/46439355.pdf In 2011 GTZ, DED, InWEnt merged into GIZ

114 Mandate of the Federal Ministry for Economic Cooperation and Development (BMZ) Development cooperation aims to help resolve crises and conflicts in a peaceful manner. It aims to help ensure that scarce resources are more equitably shared, and that our environment is preserved for coming generations. And it aims to help reduce global poverty. In order to achieve these goals, development policy must target different levels. And of course we cannot lose sight of the fact that foreign policy, trade policy, security policy and development policy are today very closely linked. This makes the mandate) wide and varied. http://www.bmz.de/en/ministry/mandate/index.htmlhttp://www.bmz.de/en/ministry/mandate/index.html (14.1.14)

115 In fiscal 2013, provision had been made for spending in the order of 6.296 billion euros. www.bmz.de/en/ministry/budget/index.html

116 Minister Dr. Gerd Müller (since 17 December 2013) MP / CSU (since 1994) 2005 – 2013 Parl. State Secretary to the Federal Agricultural Minister Minister Dr. Gerd Müller (since 17 December 2013) MP / CSU (since 1994) 2005 – 2013 Parl. State Secretary to the Federal Agricultural Minister "Our central tasks for the coming years will be to fight poverty and hunger worldwide and to achieve the Millennium Development Goals. "Our central tasks for the coming years will be to fight poverty and hunger worldwide and to achieve the Millennium Development Goals. For Germany's development policy, we will therefore draft a charter for the future. The charter should be based on broad support and should provide guidance for us as we design Germany's development policy." (20.12.13)

117 “Our grand coalition is sending a strong signal by providing an extra two billion Euros for development cooperation. The Coalition Agreement expressly states that we will stick to the goal of providing 0.7 per cent of our gross domestic product for development, and I am pleased that there is a consensus about this across party lines. Development cooperation is becoming more and more important. In addition to humanitarian assistance, reconstruction work and development cooperation in countries such as Afghanistan, Syria and Egypt are of enormous importance for Germany in terms of foreign, security and economic policy.“ (23.12.13) In addition to humanitarian assistance, reconstruction work and development cooperation in countries such as Afghanistan, Syria and Egypt are of enormous importance for Germany in terms of foreign, security and economic policy.“ (23.12.13)

118 Bilateral official development cooperation to more than 100 developing countries (from LDCs to ‘emerging economies’) and to developing countries related activities The cooperation agreed upon in government-to- government agreements form one pillar of German development cooperation with partner countries. The cooperation agreed upon in government-to- government agreements form one pillar of German development cooperation with partner countries. The German Länder/States and municipalities are supporting the German DC efforts by own contributions. The German Länder/States and municipalities are supporting the German DC efforts by own contributions. The third pillar consists of the activities proposed by non-governmental organisations and carried out in the partner countries. The third pillar consists of the activities proposed by non-governmental organisations and carried out in the partner countries.

119 International level / multilateral cooperation one third of German ODA: EU, World Bank/IDA, UN, Regional Banks (between 35 and 45% - in 2012: 33%=4.4 billion USD; bilateral ODA 67%=8.7 bn USD)) International level / multilateral cooperation more than one third of German ODA: EU, World Bank/IDA, UN, Regional Banks (between 35 and 45% - in 2012: 33%=4.4 billion USD; bilateral ODA 67%=8.7 bn USD)) - Multilateral co-operation is needed to help solve the increasingly urgent global development problems: in particular poverty, HIV/AIDS, climate change, the threat to biodiversity, land (desertification and soil erosion) … - It plays a role in shaping global structures and regimes (global governance) [former minister Niebel: Multilateral assistance should be restricted to one third of total ODA]

120 OECD (2013): Development Co-operation Report 2013, Paris, p. 198

121 OECD (2014): DCR, p. 306

122 OECD (2014): DCR, p. 307

123 BMZ: In general and idealiter, evaluations aim to assess development interventions according to five basic criteria following OECD-DAC agreements: 1. Relevance (are project goals and targets in line with the partner country's needs?) 2. Impact (what benefits have people derived from the intervention?) 3. Sustainability (will positive results continue after the development intervention has ceased?) 4. Effectiveness (have targets been reached and why or why not?) 5. Efficiency (cost-effectiveness of an intervention) Code word: RISEE The BMZ evaluation unit programmes, designs, and supervises the evaluation activities of the Ministry. It provides a quality check on reports and actively engages in disseminating findings and recommendations.

124 Since the end of Apartheid, South Africa has made considerable progress in building a democratic society with a growing economy. Yet, major development problems such as high unemployment, widespread poverty, crime, HIV/AIDS and a big skills deficit, persist. According to the concept of “developmental local government” (White Paper 1998), local government is intended to play a critical role in addressing these development challenges. April 2009

125 Total costs: 29 million EUR http://www.giz.de/de/downloads/gtz2008-en-suedafrika- decentralisation-interim-evaluation.pdfhttp://www.giz.de/de/downloads/gtz2008-en-suedafrika- decentralisation-interim-evaluation.pdf (20.11.13)

126 Assessment of impact: Significant progress has been made in implementing a new democratic and poverty oriented system of local government. However, the skills deficit is the main hindrance in implementing government programs at a faster pace. In the field of public participation, apathy and a culture of entitlement are widespread. The evaluation team consequently assesses the impact of the program as satisfactory and gives it an impact rating of 3. ----------- The program has no specific gender focus. Civil society is now generally weak and tends to lack the managerial and intellectual resources to engage proactively and constructively in the process of development and building democracy. The bigger challenge lies in the question of impact where the linkage between strengthened local governance and poverty reduction and development needs to be more firmly established.

127 GIZ/KfW (eds.) (2014): Private Sector Development in Agriculture, Kenya. Final (INDEPENDENT) Evaluation 2013 – Brief Report, Bonn/Eschborn/Frankfurt www.giz.de/en/downloads/giz2014-en-Kenia-Ex-post-Evaluierung.pdf

128 Private Sector Development in Agriculture, Kenya - Assessment 1. The relevance of PSDA is without doubt. The activities and outputs of the program were not only consistent with the intended results, but also with the overall goal and the attainment of the country’s objectives, as well as with the overall objectives of the Kenyan-German development cooperation. Taking all these aspects together, PSDA’s relevance is rated for both modules (TC + FC) as good (2). 2. The effectiveness of PSDA-TC is rated as satisfactory (3) and the PSDA-FC as good (2). (overall for the whole PSDA = 2) 3. The efficiency of PSDA-TC is rated as satisfactory (3) and the PSDA-FC as good (2). (overall = unsatisfactory (2) 4. The impact of PSDA-TC is rated as satisfactory (3) and the PSDA-FC as good (2). (overall = satisfactory (2) 5. The sustainability criterion is rated as satisfactory (3), a rating that is given for PSDA-FC, PSDA-TC and the overall PSDA programme. Considering the differences in data availability and evaluation approaches in FC and TC, with regard to the overall rating, PSDA- FC is rated good (2) while PSDA-TC as well as the overall PSDA programme are rated satisfactory (3).

129 Based on the evaluation’s findings, the following recommendations addressed to German Development Cooperation are derived: - Further steps to improve cooperation between German FC and TC should be taken at the beginning of planning activities of joint programmes. - Planning procedures for joint German bilateral development cooperation programmes should include elements like common target group selection, to better prepare such cooperation. - The management of a joint programme should also be collaborative. - With respect to the impact indicators, a close cooperation between all German organisations involved is recommended. - The implementation of agrarian VCD should not be done without taking the whole economic framework of the considered farmers into account.

130 In addition, the following recommendations addressed to the Government of Kenya have been derived: - Even after the end of PSDA, the training of different stakeholders, as well as of the relevant target group members should be continued. - Training content should be monitored rigidly to control whether it really addresses the needs of participants. - The VCA has to be better integrated into a concept of “farms as a profit centre”. Consequently, the farmers should be trained in such a way that it enables them to diversify income-generating activities beyond the VC products, in order to make them more resilient towards risks of economically failing VC products. - Support at the micro level should continue to be targeted towards producer/processor groups rather than individuals. - Demonstration plots should be established in each irrigation scheme to facilitate capacity development of farmers. Technical and economic training of farmers in the irrigation schemes should be continued.

131 German development co-operation achieved mixed results Most of the projects and programmes are successful (KfW Evaluation Report 2006 – 177 projects in 57 countries / financing volume of EUR 6.3 bio: 71 % of the projects) Most of the projects and programmes are successful (KfW Evaluation Report 2006 – 177 projects in 57 countries / financing volume of EUR 6.3 bio: 71 % of the projects) About one fifth did not reach the expected results (KfW: 17 % slightly insufficient despite having positive impacts; 12 % insufficient) About one fifth did not reach the expected results (KfW: 17 % slightly insufficient despite having positive impacts; 12 % insufficient) In some cases a total failure (KfW: 1 project) In some cases a total failure (KfW: 1 project)

132 www.giz.de/de/downloads/gtz2010-en-evaluation-report-analysis-2008-2009.pdf www.giz.de/de/downloads/gtz2010-en-evaluation-report-analysis-2008-2009.pdf (17.1.13) GTZ (today: GIZ) - Evaluation

133 www.giz.de/en/downloads/giz2013-en-evaluierungsbericht-2010-2012.pdfwww.giz.de/en/downloads/giz2013-en-evaluierungsbericht-2010-2012.pdf (29.11.13) Evaluating technical cooperation (2010-2012)

134 Micro-macro paradoxon Strategies and measures that work on the micro-level can not easily be transformed to the macro-level. ODA measures that work on the micro-level can not easily be transformed to the macro-level (the so-called micro-macro paradoxon). For example, one hospital – a project – supported by ODA will not automatically improve the health sector for the whole region or country; it would be better to support a nation or province wide program or to offer sectorial budget support to the country.

136 The Peer Review underlined four very positive elements 1.Germany still is one of the world‘s largest donors (12 billion USD in 2009 = 10 % of total ODA) 2.A specific ministry dedicated to development cooperation 3.A worldwide lead role in the area of environment and climate change 4.Progress made since the last Peer Review (2005): a) Reduction of the number of partner countries b) Ways forward for reforming the development cooperation system c) Concentrating ODA for better results

137 Peer Review: Criticism and 9 challenges for Germany‘s Development Cooperation 1. 1.Unclear new vision in the 2009 Coalition Agreement 2. 2.Germany is off-track for meeting its ODA commitment 3. 3.A stronger emphasis on sub-Saharan Africa 4. 4.A strategy for working with NGOs 5. 5.More efficient organization and management (merger of the agencies for technical cooperation > GIZ; bilateralization–re-nationalization?; creation of more BMZ departments and jobs – narrow FDP recruitment?) 6. 6.Better coherence for development 7. 7.Improve the aid effectiveness 8. 8.No clear strategy for capacity development 9. 9.A better parliamentary oversight (joint initiative)

138 Germany’s cooperation with new emerging powers* The world is becoming increasingly multipolar. States that were long thought of as developing or newly industrialized countries are now an influential force in shaping international policy in an interdependent world. They are economic motors and key regional players. They also play an increasingly important role in international decision-making processes. They are assuming ever more responsibility for global issues. In our view they are more than just emerging economies. They are new players (“shaping powers”) with a voice in the conduct of world affairs. * German Government (2012): Shaping Globalization – Expanding Partnerships – Sharing Responsibility, Berlin 2012

139 BMZ: Global development partners have a key role to play in solving global development issues* These partners are newly industrialising or emerging countries that possess key features of industrialised countries, and as a result of their geopolitical importance help shape global processes within the G20 formation. At the same time, more than half the really poor people in the world live in these countries, which the OECD-DAC classifies as "developing countries". Germany therefore defines these countries as its "global development partners" for development cooperation. At present, the core group of global development partners comprises the following five partner countries of German development policy: Brazil, India, Indonesia, Mexico and South Africa. Finding answers to key issues such as global environmental protection and climate change mitigation, peace and security, and the elimination of extreme poverty, can only be achieved together with these partners. Finding answers to key issues such as global environmental protection and climate change mitigation, peace and security, and the elimination of extreme poverty, can only be achieved together with these partners. BMZ (2011): Strategy for Development Cooperation with Global Development Partners, Bonn * BMZ (2011): Strategy for Development Cooperation with Global Development Partners, Bonn

140 Beyond that, other regionally or globally important emerging countries that do not receive bilateral FC or TC (e.g. China) may also be included in multi-country forms of international development cooperation. Germany aims to build partnerships for sustainable global development. Partnerships with the global development partners help protect global public goods. As part of Germany's foreign relations, these partnerships help Germany shape cooperation with the countries concerned, and achieve joint economic, social, ecological and political goals (and interests). German development policy has a strategic interest in deepening bilateral cooperation in three main areas of activity: a) Mitigating climate change, preserving the environment. b) Promoting sustainable economic development. c) Shaping global development agendas.

141 Charter for the Future One World Our Responsibility In 2014, the BMZ developed the Charter together with civil society, academia, the churches and the private sector. The Charter, published on 24 November 2014, will provide a basis for action for all players in Germany with regard to 2015, which will be a significant year for development. Germany intends the Charter to be a special contribution to the further development of the United Nations Millennium Development Goals, referred to as the post-2015 process.

142 Charter for the Future: eight priority areas Charter for the Future: eight priority areas English translation by U. Holtz 1. 1.Ensure globally a life in dignity 2. 2.Protect and use sustainably natural living conditions 3. 3.Combine economic growth with sustainability and decent employment / human working conditions 4. 4.Ask for and promote human rights and good governance 5. 5.Create peace and strengthen human development 6. 6.Respect and protect cultural and religious diversity 7. 7.Use innovations, technologies and digitalisation for transformative changes 8. 8.Develop new global partnerships and multi-actors- partnerships for their implementation www.zukunftscharta.de/ecm-olitik/zukunftscharta/de/home/file/fileId/2864www.zukunftscharta.de/ecm-olitik/zukunftscharta/de/home/file/fileId/2864 (28.11.14) - English translation by U. Holtz

143 Charter for the Future: eight priority areas Official translation 1. 1.Ensure a life in dignity for all everywhere 2. 2.Protect natural resource and manage theme sustainably 3. 3.Combine economic growth, sustainability and decent work 4. 4.Promote and ensure human rights and good governance 5. 5.Build peace and strengthen human security 6. 6.Respect and protect cultural and religious diversity 7. 7.Drive transformational change through innovation, technology and digitalisation 8. 8.Forge a new global partnership and develop multi- stakeholder partnerships for sustainable development www.zukunftscharta.de/ecm-politik/zukunftscharta/de/home/news/single/id/1075 (1.12.14)

144 Relationship between development, democracy and good governance Democracy promotion Good governance is more than good government; it encompasses good administration. [In French: “bonne gestion des affaires publiques”]

145 The international community about the links WORLD CONFERENCE ON HUMAN RIGHTS, Vienna, June 1993: Democracy, development and respect for human rights and fundamental freedoms are interdependent and mutually reinforcing. UNDP‘s HUMAN DEVELOPMENT REPORT 2002: The links between democracy and human development are not automatic. Political freedom and participation are part of human development, both as development goals in their own right and as means for advancing human development. COTONOU AGREEMENT, 2000: The partnership shall actively support the promotion of human rights, processes of democratisation, consolidation of the rule of law, and good governance. NEPAD, 2001, art. 71 African leaders have learnt from their own experiences that peace, security, democracy, good governance, human rights and sound economic management are conditions for sustainable development.

146146 Amartya Sen (*1933): Democracy as a Universal Value (1999) This recognition of democracy as a universally relevant system, which moves in the direction of its acceptance as a universal value, is a major revolution in thinking. A country does not have to be deemed fit for democracy; rather, it has to become fit through democracy. We can distinguish three different ways in which democracy enriches the lives of the citizens: a)Intrinsic value b)Instrumental value c)Constructive role indowaves.instablogs.com

147 International Democracy Promotion Objective: External IDP should contribute to the development and consolidation of democracy Reasons: - democracy is a universal value (A. Sen) - moral obligation - instrumental rationale grounded in the goals of universal peace, social justice and global development IDP – democracy building: - promoting the (pre-)conditions for development - assisting the democratisation in failed, weak states - for the time being - political stability may be a priority Means, approaches: A continuum from ‘soft power’ (Joseph Nye) and other non-coercive form of influence to diplomatic pressure, political conditionalities and (threat of) sanctions (‘hard power’ - # war)

148 What worked? - In the 70ies: support to states transitioning from dictatorship to democracy, incl. Portugal, Spain and Greece. (< German political foundations). - 1993 Copenhagen criteria of the EC for accession countries > good results - Sanctions: apartheid South Africa; Cuba and Zimbabwe (mixed results) Democracy assistance assessments (so difficult): - Political foundations: in some countries very successful, in others helpful (Indonesia, Chile) or poor results (China) - Evaluation of the EU efforts in Ukraine, Indonesia, Angola and Guatemala: The impact of external assistance has been modest. - USAID: more than 100 countries between 1990-2003 achieved higher scores for democracy, but the overall democracy dividend was itself small, because the aid commitment has been small - Other studies (SIDA, DANIDA, GTZ, political foundations): both yes and no (promotion of parties, parliaments, civil society)

149149 Lise Rakner, Alina Rocha Menocal, Verena Fritz.: Democratisation’s Third Wave and the Challenges of Democratic Deepening: Assessing International Democracy Assistance and Lessons Learned, London 2007 (http://www.cmi.no/publications/file/2761-democratisations- third-wave-and-the-challenges-of.pdf - 7.12.11 ); http://www.cmi.no/publications/file/2761-democratisations- third-wave-and-the-challenges-of.pdfhttp://www.cmi.no/publications/file/2761-democratisations- third-wave-and-the-challenges-of.pdf Democracy assistance: Lessons learned and remaining challenges.....................23 3.2 Forms of democracy assistance 3.2.1 Electoral assistance..................................... 3.2.2 Assistance to political parties ……………… 3.2.3 Justice sector assistance............................. 3.2.4 Assistance to civil society............................. 3.2.5 Assistance to media..................................... ----- [3.2.6 Assistance to decentralization of a country + to local democracy………………………………………..]

150150150 Since the end of the Cold War, NGOs and INGOs are playing quite important roles in the development process (international conferences, advocacy role, negotiation partners). The tendency for donors and international organisations to engage with civil society and NGOs but to neglect parliaments is neither acceptable nor prudent. Donors and international organisations have to engage with parliaments, who have the last word on laws and budgets and are the representative institutions providing the political base for policy and institutional arrangements.

151151 “It's time, also for the international community, to try democracy”* By Vidar Helgesen, IDEA Secretary-General The International Institute for Democracy and Electoral Assistance is an intergovernmental org. Both the world and the Arab region are changing and, in tandem with these changes, the demand for democracy appears to be returning with renewed vitality. After the fall of the Berlin Wall, after the end of the apartheid regime in South Africa, after the democratic reform in Indonesia, the democracy wave is about to engulf the Arab world. And this time, democracy doesn't come at the point of foreign guns or as a by-product of other agendas. The seeds are unequivocally and genuinely home-grown. Men and women are simply determined to take their future in their own hands. They want to be represented and have a say in the way their country is governed. * www.idea.int/arab_world/time-to-try-democracy.cfm (7.11.13) www.idea.int/arab_world/time-to-try-democracy.cfm

152 Conclusions I Development progress depends on two main factors: 1. The own efforts of the (developing) countries 2. The international environment (trade, subsidies, financial system etc.) ODA is playing a minor role in the whole development process. More important are the own efforts (good, democratic governance, rule of law, participation of the population, a vibrant civil society etc.) as well as an enabling international environment (a fair international trade and financial system, good commodity prices etc.). Sometimes, I got the impression that several leaders and even scientists are looking for somebody or somewhat to blame for. They attribute – very often wrongly – many failures, maldevelopment and shortcomings in their countries to development aid. ODA is overestimated regarding the positive or negative influence on the whole development process.

153 Conclusions II Development policy alone will not bring sufficient results; a number of other policies and external as well as internal factors have a major impact. Its objectives are - to contribute to the improvement of the peoples’ living conditions in developing countries, - to facilitate the flourishment – the “de-velopment” of the partners’ own capabilities (help people to help themselves, ownership, empowerment), - to work for an “enabling environment”.

154  Mixed outcomes of development cooperation  Unsatisfactory progress in many developing countries  The end of the Cold War and the predominant failure of centrally planned economies  New challenges as posed by globalization, the financial crisis, climates changes, fragile states and “new wars” * led to a review and rethinking of “development” as a whole and of the international relations *Mary Kaldor (1999): New and Old Wars: Organized Violence in a Global Era, Oxford *Mary Kaldor (1999): New and Old Wars: Organized Violence in a Global Era, Oxford

155 U. Holtz: Six ODA Principles 1.ODA should contribute to sustainable, human development conducive to the improvement of people‘s living conditions. 2.ODA should contribute to a national and international enabling environment [capacity building and (women’s) empowerment, good governance, fair trade]. 3.ODA should contribute to strengthening the resilience to stresses and shocks. 4.ODA should be an incentive for „good performers“ [performance- based allocation]. 5.ODA should „do no harm“* (Latin: primum non/nihil nocere: The Hippocratic Oath includes the promise "to abstain from doing harm"). 6.Sometimes it is better to „stay engaged“ instead of “let them fail”.** * Mary B. Anderson (1999): Do No Harm: How Aid Can Support Peace - or War, Boulder/London ** Tobias Debiel et al. (2007): „Stay Engaged“ statt „Let Them Fail“ (INEF-Report 90/2007 - http://inef.uni- due.de/cms/files/report90.pdf

156 Factors responsible for (mal-) development Role of elites

157 www.oecd.org/dac/stats/DAC%20List%20used%20for%202012%20and%202013%20flows.pdfwww.oecd.org/dac/stats/DAC%20List%20used%20for%202012%20and%202013%20flows.pdf (20.11.13) Haiti = LIC Dom Rep = upper MIC

158 Positive and negative factors influencing development Cf. U. Holtz (2010): Die Millenniumsentwicklungsziele – eine gemischte Bilanz [The Millennium Development Goals – a mixed balance], in: Aus Politik und Zeitgeschichte/APuZ, 8 March 2010, p. 3-8. U. Holtz (2013): Die Millenniumsentwicklungsziele [The MDGs], in: H. Ihne/J. Wilhelm (eds.): Einführung in die Entwicklungspolitik [Introduction to development Politics], Berlin pp. 41-64, 54-57.

159 1.A development-oriented behaviour of governments and elites, which includes the participation of the population and its ownership 2.Effective, capable governments and administrations based on democracy, human rights and the rule of law (incl. good governance) 3.Fight against poverty by a national framework setting, which promotes the private sector and doesn't gag it (> business development – SME) 4.Mobilization of domestic (financial) resources 5.Material and immaterial infrastructure equipment incl. ICT and capacity building 6.Development of a favourable mental and cultural enabling environment 7.Acknowledgment of the important role of women 8.Industrialization, stimulation of a broad-based, anti-poverty growth and making use of the international division of labour 9.Containment of rapid population growth 10.Efficient use of Official Development Assistance (ODA) in the sense of help for self-help 11.External and internal peace

160 U. Holtz Two cause bundles are responsible for lagging behind: A. Factors, which were particularly virulent after the adoption of the Millennium Declaration in 2000: 1.After the terrorist attacks from September 2001 some industrialized countries prioritized rather military and geopolitical aspects than civilian and socio-economic development ("securitization of development policy") 2.The significant increase of failed, collapsed states and of violent conflicts 3.The climate change with its growing negative effects 4.The energy, food as well as financial and economic crises

161 B. Factors, which were always of great importance and must be considered, if a turn to the better is intended: 1.The population growth (1990: 5,3 billion; 2014: 7,2 bn; 2050: 9,5 bn); 2.Corrupt, cleptocratic elites; 3.Bad governance and poor performance; 4.The neglect of the rural areas and (traditional) agriculture; 5.A development-hostile environment (the non-recognition of education, training and knowledge as well as of tolerant cultures open for change); 6.Difficult internal situations (land locked, military conflicts, hostile ecological systems); 7.Relying on fossil energies instead of renewables; 8.Legacy of colonialism (in particular in some African countries: arbitrarily drawn borders, destruction of self-confidence, supplier of raw materials); 9.The developed countries unwillingness to build up a truly fair trade and financial global system – unsuitable recipes of the International Monetary Fund and the World Bank; 10.Despite some efforts to increase ODA and its efficiency the unwillingness of the industrialized countries to undertake serious, strong steps in the direction of a quantitatively higher and qualitatively better development policy.

162 Paul Collier (2007): The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It, Oxford 2007 At the core of the argument are four 'traps' that lock Africa into poverty: 1. the conflict trap 2. the natural resource trap 3. the trap of being landlocked with bad neighbours 4. the trap of bad governance in a small country. However, there are some shortcomings. First, the focus on poor countries instead of on the very poor in any developing country could be an issue. A second shortcoming is Collier’s omission of the low human capital trap. Third, and most significant, the book sometimes does not present the whole picture. (cf. the review by Ruth Uwaifo Oyelere, in: www.econ.gatech.edu/files/papers/bookreview.pdf - 29.4.11 www.econ.gatech.edu/files/papers/bookreview.pdf - 29.4.11 www.econ.gatech.edu/files/papers/bookreview.pdf - 29.4.11 [Prof. P. C. is Co-Director of the Centre for the Study of African Economies, Oxford]

163 Dr. Markus Loewe: ), Bonn 2010 Dr. Markus Loewe: African Developments: Sub-Saharan Africa, too, Could Achieve the Millennium Development Goals (German Development Institute), Bonn 2010 The good performers are distinguished by six factors that may explain their above-average performance: 1. political and macroeconomic stability 2. good investment climate 3. a government capable of taking action 4. a political leadership with a vision, a strategy and the determination to pursue it in the long term 5. decentralisation and public participation in project planning and implementation 6. long-term, constant and predictable support from donors On the other hand, neither the level of development aid received nor the starting conditions in the developing country concerned (such as income per capita and the primary school attendance rate in 1990, the reference year) appear to play a decisive role, and the influence of economic growth is also far less pronounced that might have been expected.

164 Steven Radelet (2010): Emerging Africa: How 17 Countries are Leading the Way, Washington [S. R. is Distinguished Professor in the Practice of Development, Georgetown University, Washington] Since 1995, seventeen African countries have defied expectations and launched a remarkable, if little-noticed, turnaround. These countries are putting behind them the conflict, stagnation, and dictatorships of the past and replacing them with steady economic growth, deepening democracy, improved governance, and decreased poverty. Five fundamental changes are at work: (1) more democratic and accountable governments; (2) more sensible economic policies; (3) the end of the debt crisis and changing relationships with donors; (4) the spread of new technologies; (5) the emergence of a new generation of policymakers, activists, and business leaders.

165 Charity Musamba (2010): The Developmental State Concept and its Relevance for Africa, in: Peter Meyns/Charity Musamba: The Developmental State in Africa. Problems and Prospects (INEF-Report 101), Duisburg, p. 11-41, 21. [Dr. phil., social scientist, Executive Director of the Foundation of the Foundation for Democratic Process (FODEP), Lusaka] She identified four defining features of the developmental state: 1.Development-oriented political leadership; 2.An autonomous and effective bureaucracy 3.A production-oriented private sector 4.Performance-oriented governance

166 Daron Acemoglu/James A. Robinson (2012): Why Nations Fail. The Origins of Power, Prosperity and Poverty, New York. Massachusetts Institute of Technology economist Acemoglu and Harvard University political scientist Robinson underline the theory of inclusive and extractive institutions, leading to either prosperity or failure of nations. They argue that primarily political institutions are responsible for economic growth and prosperity, namely ‚inclusive’ (democratic, comprising the whole society) and not ‚extractive’ (exploitative, hierarchical) institutions.

167 What must happen so the elites in developing countries pursue development paths favouring poor people? A. Elites: 1. function/sectoral elites (managers, NGOs); position (party, religious leaders); power (government, state bureaucracy, parliaments, judiciary, military); educational (scientists, teachers); mass media (radio, tv, newspapers, web) 2. Regional/local/informal elites or “heroes” – influential women, chiefs, successful farmers 3. Development pioneers / drivers or agents of change B.Development paths? path towards sustainable, human development – MDGs, Rio>Jo‘burg, PRSPs etc. SID, Bonn, 13.1.2009_U.H.

168 What must happen? How? By whom? A.Pressure from inside and outside a country 1.Inside: - the more democratic and participatory a country is structured (good governance), the more successful the pressure will be (performed by trade unions, NGOs, MPs etc.) - capacity and willingness to understand the development necessities, in particular to promote poverty eradication and pro-poor growth (PPG) - no willingness of the power elites > coercion 2.Outside: donor countries/national and international agencies; diplomatic means - sanctions: African leaders must pressure Mugabe, the EU stopped ODA for Zimbabwe; conditionalisation of development co-operation (but consider ODA-GNI-ratio) # ownership

169 B. DC instruments: 1.political dialogue; development projects, budget support; development projects, budget support; micro-financing; micro-financing; enhancing the advancement of rural areas; enhancing the advancement of rural areas; capacity building – empowerment (> enrichment). capacity building – empowerment (> enrichment). Governmental DC has to negotiate ODA with the state elites – the aid channeling organizations like GIZ have often to deal with regional and local elites.

170 OUTLOOK Re-Orientation of Official Development Assistance* ODA – as development co operation is still known – is becoming less and less attractive for many countries. Development cooperation definitely has to free itself of its “aid image” so as to become more attractive for the modernising developing countries. The focus must now be on common interests and cooperation at eye level – in Africa too. For that to happen, much greater importance must be attached than has been the case in the past to private-sector and technological/ scientific cooperation, to ownership, independent performance reviews of cooperation, to focusing on new forms of inequality in developing countries and industrialised nations, and to common approaches to shaping the international framework conditions. This reorientation has in principle been set out in the Paris and Accra [ + Busan] process on aid effectiveness. * cf. German Development Institute (2010): Annual Report 2009-2010, Bonn, p. 6f

171 Challenges for DC 1. How to deal with undemocratic, cleptocratic regimes and with failed states? 2. Danger of getting into the omnipotence trap 3. The dialectic relationship between ownership and the donors’ “expectations” 4. Too many donors > increased need for coordination 5. Dialogue with “Non DAC Donors” (BRICS) 6. Development rather a marathon than a 100- metre sprint

172 Beyond 2015 Successful completion of the MDGs by 2015 must remain a global priority, creating a stable foundation for future development action Efforts to achieve a world of prosperity, equity, freedom, dignity and peace will continue beyond 2015. The United Nations is working concertedly with governments, civil society and other partners to build on the momentum generated by the MDGs and to craft an ambitious, yet realistic, post-2015 development agenda. A successful conclusion to the MDGs will be an important building block for a successor development agenda. And volumes of experience and lessons learned along the way can only benefit the prospects for continued progress. UN (2013): The Millennium Development Goals Report, New York, p. 5

173 U. H.: Making globalisation a positive force for all of humankind Politics: Democracy, human rights and the rule of law guiding the political sphere Economy: The Social and Ecological Market Economy – an order that seeks to combine the freedom of the market – the law of supply and demand and of competition between free enterprises – with the imperative of social balance and environmental viability. Leading paradigm: sustainable, human development

174 What to do in the future? Since almost 15 years the UN Millennium Declaration and the MDGs have been a good road map for international politics and development cooperation in the 21st century. Since almost 15 years the UN Millennium Declaration and the MDGs have been a good road map for international politics and development cooperation in the 21st century. Now, there is a need for a Post 2015 Agenda: MDGs > + SDGs/Sustainable Development Goals Finding adequate responses to the new global trends and challenges

175 Introduction to the SDG proposal set up by the UN General Assembly’s Open Working Group (17 June 2014) 7. Rio+20 outcome reaffirmed the need to be guided by the purposes and principles of the Charter of the United Nations, with full respect for international law and its principles. It reaffirmed the importance of freedom, peace and security, respect for all human rights, including the right to development and the right to an adequate standard of living, including the right to food and water, the rule of law, good governance, gender equality, women’s empowerment and the overall commitment to just and democratic societies for development. It also reaffirmed the importance of the Universal Declaration of Human Rights, as well as other international instruments relating to human rights and international law. http://sustainabledevelopment.un.org/content/documents/4518outcomedocument.pdfhttp://sustainabledevelopment.un.org/content/documents/4518outcomedocument.pdf (22.07.14)

176 d) UN General Assembly’s Open Working Group proposes 17 sustainable development goals/SDGs (19 June 2014) The Group’s proposal on the SDGs will be considered by the General Assembly as part of the broader post-2015 development agenda that world leaders are expected to adopt at a Summit in September 2015. The proposed SDGs (with 169 targets) are: Goal 1: End poverty in all its forms everywhere 1.1 by 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day 1.2 by 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions 1.3 implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable … Goal 2: End hunger, achieve food security and improved nutrition, and promote sustainable agriculture Goal 3: Ensure healthy lives and promote well-being for all at all ages Goal 4: Ensure inclusive and equitable quality education and promote life-long learning opportunities for all Goal 5: Achieve gender equality and empower all women and girls Goal 6: Ensure availability and sustainable management of water and sanitation for all

177 Goal 7: Ensure access to affordable, reliable, sustainable, and modern energy for all Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation Goal 10: Reduce inequality within and among countries Goal 11: Make cities and human settlements inclusive, safe, resilient and sustainable Goal 12: Ensure sustainable consumption and production patterns Goal 13: Take urgent action to combat climate change and its impacts Goal 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development Goal 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss Goal 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels ( 16.3 promote the rule of law at the national and international levels; 16.7 ensure responsive, inclusive, participatory and representative decision-making at all levels) Goal 17: Strengthen the means of implementation and revitalize the global partnership for sustainable development http://sustainabledevelopment.un.org/content/documents/4518outcomedocument.pdfhttp://sustainabledevelopment.un.org/content/documents/4518outcomedocument.pdf (22.07.14)

181 By agreeing to the Rio+20 Outcome Document (June 2012), entitled “The Future We Want”, Heads of State and Government and high-level representatives committed to “strive to achieve a land-degradation neutral world in the context of sustainable development”. It is a call for a paradigm shift at all levels. Avoiding land degradation and restoring degraded land is a prerequisite for achieving food, water and energy security. It is a call for a paradigm shift at all levels. Avoiding land degradation and restoring degraded land is a prerequisite for achieving food, water and energy security. http://sustainabledevelopment.un.org/content/documents/733FutureWeWant.pdfhttp://sustainabledevelopment.un.org/content/documents/733FutureWeWant.pdf - §206 http://sustainabledevelopment.un.org/content/documents/733FutureWeWant.pdf One of the most important SDGs: A land-degradation neutral world (LDNW)

182 www.unccd.int/Lists/SiteDocumentLibrary/Rio+20/UNCCD_PolicyBrief_ZeroNetLandDegradation.pdf

183 Facilitator U. Holtz + President Dr. Theo-Ben Gurirab (Speaker, Namibia) UNCCD Parliamentary Round Table: “The role of Members of Parliament in the efforts to combat desertification, land degradation and drought: Parliamentary contributions to achieving a land-degradation neutral world in the context of the Post-2015 Development Agenda”, Windhoek, 20-21 September 2013 United Nations Convention to Combat Desertification (UNCCD) Secretariat in Bonn

184 “Land degradation neutrality is achieved when the area of productive land, and therefore sustainable land use, remains stable or increases globally or in a given landscape or terrestrial ecosystem. A land-degradation neutral world specifically incorporates a global shift towards land stewardship to avoid degradation of new areas, and ensures that unavoidable degradation is offset by rehabilitating at least an equal amount of already degraded land in the same time span and in the same landscape (or at least in the same ecosystem).” U. Holtz (2013): Land Degradation Neutrality in the Context of the Post-2015 Global Development Framework, Bonn, p. 5 (see also www.unccd.int/Lists/SiteDocumentLibrary/Parliament/2013/Land%20degradatio n%20Neutrality%20in%20the%20post%202015.pdf) www.unccd.int/Lists/SiteDocumentLibrary/Parliament/2013/Land%20degradatio n%20Neutrality%20in%20the%20post%202015.pdf

185 UN General Assembly’s Open Working Group proposes 17 sustainable development goals/SDGs (19 July 2014) Proposed goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss 15.3 by 2020, combat desertification, and restore degraded land and soil, including land affected by desertification, drought and floods, and strive to achieve a land-degradation neutral world 15.5 take urgent and significant action to reduce degradation of natural habitat, halt the loss of biodiversity, and by 2020 protect and prevent the extinction of threatened species 15.9 by 2020, integrate ecosystems and biodiversity values into national and local planning, development processes and poverty reduction strategies, and accounts

186186186 Thanks a lot for your attention and your inspiring participation Prof. Dr. Uwe HOLTZ 29 November 2014

11 Master of Business Administration Module Module Culture & Politics: International Politics Prof. Dr. Uwe HOLTZ 28 / 29 November 2014.

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11 Master of Business Administration Module Module Culture & Politics: International Politics Prof. Dr. Uwe HOLTZ 28 / 29 November 2014.

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