After Busan, the Emerging Development Agendas Hubert de MILLY, Aid Quality & Architecture DivisionDevelopment Co-operation Directorate, OECD

HLF-4: a turning point for international development co-operation

• Conclusion of a 10-year process : Monterrey (2002), HLF-1 in Rome (2003), HLF-2 in Paris (2005), HLF-3 in Accra (2008), HLF-4 in Busan(2011).

• First three HLF: transformed the way we do aid:Principles of local ownership, alignment, harmonisation, mutual accountability and management for development results.

• HLF-4: seals a new global partnership for development, including more development sources – and not just aid.Builds on the support of diverse development actors.

Outcome of the HLF-4 : The Busan “Global Partnership for Effective Development Co-operation”

Broader and more inclusive than ever before

• Includes donor countries, low-income and middle-income countries, emerging economies, civil society organisations, multilateral organisations, parliaments, the private sector, and climate finance institutions.

• Re-endorses Paris: partners who signed up to Paris and Accra will intensify their efforts to implement their respective commitments in full (article 16).

• “The principles, commitments and actions agreed in the outcome document in Busan shall be the reference for South-South partners on a voluntary basis” (article 2).

After the HLF-4: design and agree arrangements for the Busan “GP-EDC”

by June 2012

Agree on:• “light working arrangements” for the Global

Partnership on Effective Development Co-operation (art 36b)

• global-level indicators and process for monitoring Busan agreement (art 35b)

• institutional arrangements (with funding) for joint OECD-UNDP secretariat support to the Global Partnership (art 36d)

After the HLF-4 : implement core Busan partnership commitments (thematic work)

1. Review plans to further untie aid (BP §18e)2. Implement common, open standard for electronic publication of

timely, comprehensive and forward-looking information (BP §23c)3. Full implementation of AAA commitments on 3-5 year forward

rolling plans (BP §24a)4. Agree principles and guidelines to guide joint efforts in reducing

the proliferation of multilateral / global fund and programme channels (BP §25b)

5. Agree on principles to address issue of countries that receive insufficient assistance (BP §25c)

6. Review delegation of authority to the field (all providers of development co-operation) (BP §25d)

After Busan: implement the voluntary initiatives (Busan “building blocks”)

1. Implementation of the “Busan Action Plan for Statistics”2. Implementation of the “Busan Joint Action Plan on

Gender Equality and Development”3. Following up on the “New Consensus on More Effective

Institutions for Development” (building block)4. Results and accountability building block5. Transparency (both on development flows and domestic

resources) building block6. Building block on Managing Diversity and Reducing

Fragmentation

Voluntary initiatives (continued)

7. Building block on South-South and Triangular Co-operation

8. Implementation of the “New Deal for Engagement in Fragile States”

9. “Expanding and enhancing public and private co-operation for broad-based, inclusive and sustainable growth” building block

10. Efforts in the area of “Climate Change Finance and Development Effectiveness”

The OECD Development Strategy

1. Why a Development Strategy?

2. What is OECD’s Comparative Advantage?

3. 3 levels and 4 areas of focus

4. The way forward

1. Why a DS? – The world has changedAnnual world GDP (PPP) growth rate (3-year moving average)

1. Why a DS? More heterogeneity in the developing world

1990s 2000-2007

2. What can OECD offer developing countries?

0

10

20

30

40

50

60

Arge

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Braz

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Chile

Colo

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Mex

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Peru

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D-24

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.

Inequality before taxes and transfers Inequality after taxes and transfers

Example: Pre-tax vs. post-tax GINI differ more in the OECD area

2. OECD’s comparative advantage

• Data collection, statistics.• A variety of tools and approaches (arm’s length

diagnostics, multidisciplinary analysis peer reviews, policy reviews, standards and norms…)

• Policy sharing and dialogue platforms (task teams, working parties, etc…).

• Home of PD. Support coordination and effectiveness

• Facilitating a space for developing countries to share knowledge and create a “network of influence”

3. A 3-level strategy to support development

• Countries to develop own strategies:– facing domestic issues (e.g. greater income inequality,

vulnerable middle class, rising expectations)– taking also into account sequencing and

implementation

• Shared challenges – clusters of countries whith common constraints ( e.g. natural resources or migration)

• Global governance mechanisms have an equally important role

3. Four main areas of focus:

Some emerging proposals…..

I. Innovative and Sustainable Sources of Growth

II. Mobilising Resources for Development

III. Governance for Development

IV. Measuring Progress

Innovative and Sustainable Sources of Growth

What the OECD is known for – what it can deliver

1. Policy support for individual countries Diagnostic phase to identify binding constraints (e.g. à la Going

for Growth) Policy support phase --country/thematic reviews (e.g. à la

innovation or entrepreneurship reviews)2. Shared growth challenges – clusters of countries whith common

growth constraints3. Global outputs – expanding current outcomes to the global level

e.g. Perspectives on Global Development (DEV), PISA (EDU) or global food security (TAD/DCD)

Mobilising Resources: Emerging ProposalsThe broad spectrum: domestic resources; investment; trade; aid etc.

Whole of OECD approach needed in, for example:1. Policy Coherence

Linking revenue to expenditure procedures and outcomes Application of OECD transfer pricing standards through effective exchange of

information Best practice model on inter-agency collaboration on illicit flows

2. New tools and instruments Launch a tax statistics database for developing countries and a tax incentives

Transparency Framework Join Convention on Mutual Administrative Assistance in Tax Matters

3. Flagship Publications Aid as a catalyst for mobilising other finance for development Focus on development financing in other flagship reports on Africa, South East

Asia

Governance

1. Country and Regional Level work Country/thematic reviews (e.g. governance reviews) based on country

demand Linkages between regional dialogues and networks on Governance (Anti-

Bribery Convention, OECD/AFDB Joint Initiative on Business Integrity)2. New tools and instruments

Narrower set of indicators for measuring governance improvement in developing countries (public sector metrics)

Policy guidance for improving governance (e.g. Policy Framework for Investment) with policy benchmarks

3. Global Fora for Dialogue on Applicability of Tools and Instruments Strengthen Global Forum for Development to involve non-members in testing

approaches and proposals on Governance Include non-members in the Public Governance Committee to shape good

practices in addressing Governance challenges

Measuring Progress1. Better Policies for Better Lives – implications for the Development

Strategy:

Measuring well-being - beyond GDP, to include equity, sustainability, satisfaction

Looking beyond the MDGs/2015 towards global progress indicators

2. Proposals2. Measure what matters to people – extend the "How’s Life"

framework Statistical systems capacity development – extend Paris 21 OECD global dialogue – strengthen links between statistics and policy

4. How is it progressing?

• Inter-directorates working teams (until end of 2011)

• Consultation with members and non-members through informal working group, existing committees, etc

• The OECD Strategy on Development is being elaborated for endorsement at the 2012 MCM (May 2012)

www.busanhlf4.org

www.oecd.org/dac