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Begin New Search Topic Development Content Type Policy Brief Publication Year within 10 Years

1. From Paper to Practice: Enhancing Integrated Development Plans to Improve Governance

Author:
Stuart Morrison and Pranish Desai
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
Good Governance Africa (GGA)
Abstract:
Planning, Monitoring and Evaluation (PME) systems play an important role in ensuring that South Africa’s municipalities are able to effectively fulfil their core mandate of service delivery. One central component of this system is the Integrated Development Plan (IDP), a strategic framework used for several functions, including guiding key priorities and providing a roadmap for effectively delivering public services. However, even though most municipalities consistently submit IDPs, the quality of service delivery, especially amongst municipalities that have Water Services Authority responsibilities, is uneven. This raises the questions around which factors are more influential in determining effective service provision, and why they are lacking in dozens of municipalities. Using Good Governance Africa’s 2024 Governance Performance Index (GPI), this policy briefing provides a range of stakeholders with consolidated insights into how these issues can be addressed.
Topic:
Development, Governance, Services, Planning, Monitoring, and and Evaluation (PME)
Political Geography:
Africa and South Africa

2. Greening Economies in Partner Countries: Priorities for International Cooperation

Author:
Tilman Altenburg, Anna Pegels, Annika Björkdahl, Clara Brandi, and Hanna Fuhrmann-Riebel
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
While polluting industries are still flourishing, the green economy is on the rise. In low- and middle-income countries, the resulting opportunities are mostly underexplored. The Federal Ministry for Economic Cooperation and Development (BMZ)’s new strategy for “Sustainable economic development, training and employment” shifts gears towards a green and inclusive structural transformation, recognising that only a just transition approach with credible co-benefits for societies can gain societal acceptance (BMZ, 2023). It is now essential to provide evidence of how a greener economy can offer direct economic benefits to national economies and the majority of their citizens. Ongoing cooperation portfolios need to be adjusted to this new and timely orientation in the BMZ’s core strategy. We suggest focusing on the following six areas: Eco-social fiscal reform should be a priority area in at least 15 of the over 40 partner countries with whom Germany cooperates on “sustainable economic development”, systematically linking revenues from pricing pollutions to pro-poor spending. Development policy should promote inclusive green finance (IGF) through market-shaping policies, such as an enabling regulatory framework for the development of digital IGF services and customer protection in digital payment services. It should also build policymakers’ capacity in developing IGF policies and regulation. Support in the area of sustainable, circular con-sumption should focus on eco-design, and repair and reuse systems. It should build systems design capa-cities and behavioural knowledge, to integrate con-sumers in low-carbon and circular industry-consumer systems. This will need new collaborations with actors shaping systems of consumption and production, for instance with supermarkets or the regulators of eco-design guidelines. Germany should strategically support national hydro-gen strategies, including a just transition approach and prioritising green over other “colours” of hydrogen. This means strengthening industrial policy think tanks, technology and market assessment agencies, technology-related policy advice as well as skills development, and exploring distributive mechanisms to spread the gains and ensure societal acceptance. Sustainable urbanisation should be a more explicit priority, given its potential for job creation and enterprise development. This means supporting partners in integrating land-use, construction and mobility planning for compact, mixed-use neighbourhoods, and anti-cipating green jobs potential and skills required within cities. Lastly, Germany should support green industrial policy and enlarge policy space in trade rules by promoting the core institutions of industrial policy, for example, technology foresight agencies, coordinating platforms for industry upgrading, and policy think tanks, and working towards reforms of the trading system, such as rules to allow clearly defined green industrial subsidies, preferential market access for green goods and services from low-income countries, or technology transfer. It is evident for all areas that the challenges in low- and middle-income countries will differ from those in high-income countries. It is, therefore, imperative that successful programmes are co-developed with local partners. A just green transition that harvests benefits beyond a healthier environment and is supported by societies will then be achievable.
Topic:
Development, International Cooperation, Economy, Sustainability, and Green Economy
Political Geography:
Germany and Global Focus

3. Tomorrow’s Global Development Landscape: Mapping Trends and Reform Dynamics

Author:
Heiner Janus, Niels Keijzer, and Svea Koch
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The key tools and governance approaches for international cooperation for sustainable development (hereafter, international cooperation) were set up in a markedly different time and age. International cooperation – with official development assistance (ODA) as the dominant means of implementation – remains key, despite being generally considered as no longer adequate for addressing today’s common and collective challenges. Despite numerous declarations of its growing irrelevance or calls for it even being beyond repair, the governance and reporting system of ODA has remained largely unchanged throughout its 60 years of existence. One reason is that there are few alternatives. Pandemic response and preparedness, climate finance, humanitarian aid, the United Nations development system as well as the budgets of the multilateral development banks all by and large remain dependent on ODA. New and additional sources of development finance have been slow to materialise and run the risk of remaining time-bound and ad-hoc, as illustrated by recent discussions on Special Drawing Rights, debt swaps and green bonds. While other actors, such as providers of South-South Cooperation (SSC), and non-governmental actors are increasing and gaining importance, they are only to a limited degree institutionalised. In the absence of transparent and coherent methodologies for monitoring their actions, concrete financial volumes remain hard to assess. This paper analyses structural factors of the institutional inertia in international cooperation and formulates expectations for where new reform impetuses might arise from. To this end, it maps and links key reform proposals for the global development system, with a specific focus on public financial flows consisting of three connected parts. The first part concerns current forms of and reporting processes for ODA, climate finance and SSC. These concern well-established, albeit path-dependent, forms of international cooperation with different types of multistakeholder settings and different levels of institutionalisation. Here, we do not expect fundamental reforms given various entrenched interests and expect that the nexus between climate finance and ODA will be the main driver for change. The second part of our mapping consists of what we call “global first” reform ideas. These ideas begin with a problem-oriented approach at the global level and aim at setting up new, universal financing schemes and redesigning institutional structures for that purpose. While the ideas in this category are still in their initial stage, we regard them to be particularly relevant for conceptualising the “demand-side” of reforms (i.e., “what would be needed?”). Here, we predict that the more ambitious reforms for creating universality of contributions and benefits at the global level will not materialise. However, these concepts play a key role in influencing the future orientation of specific existing (multilateral) institutions. The third part of our mapping entails positioning current multilateral and bilateral development organisations located between the first two parts. We observe that these organisations experience a gravitational pull towards both directions of reform, namely focusing on global public goods versus prioritising the (countries) left behind, often with competing incentives and trade-offs between national and global development priorities. We expect that a reform of bilateral development actors will lag behind in the broader policy field due to their domestic political constraints, whereas multilateral development banks will generate greater reform momentum (and be pushed by their stakeholders) as first movers.
Topic:
Development, International Cooperation, Governance, and Reform
Political Geography:
Global Focus

4. Constellations of State Fragility: Improving International Cooperation through Analytical Differentiation

Author:
Jasmin Lorch, Sebastian Ziaja, and Jörn Grävingholt
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
State fragility has remained a pressing challenge for international security and development policymakers for more than two decades. However, international engagement in fragile states has often failed, in part due to a lack of understanding about what constitutes state fragility. Established quantitative models usually rank fragile states on one-dimensional scales ranging from stable to highly fragile. This puts states characterised by very different problems and dimensions of fragility into the same “box”. Moreover, categorisations such as “fragile”, “weak”, “failed” or “collapsed” are increasingly rejected in the Global South, thereby hampering international development and security cooperation. The “Constellations of State Fragility” model, developed at the German Institute of Development and Sustainability (IDOS), provides a more differentiated model to measure state fragility. It assesses state fragility along three continuous dimensions, assuming that state fragility is a continuous trait that affects all states to some degree: authority, capacity and legitimacy. These dimensions are not aggregated into a one-dimensional index. Instead, the model detects typical constellations across these dimensions. In so doing, it also accounts for the fact that states can perform very differently in different dimensions. Our analysis yields three main insights about what constitutes state fragility and how it can be addressed: first, state fragility, illiberalism, repression and human rights violations are interrelated; second, state fragility is not unique to the Global South, with negative trends also occurring in the Global North; and, third, differentiated, multi-dimensional models offer better starting points for addressing state fragility than one-dimensional ones. We conclude with four policy recommendations: • Improve analytical capacity by adopting a differentiated view of state fragility: International security and development policymakers would benefit from more fine-grained, differentiated assessments of state fragility. In addition, country-specific assessments of the specific local power constellations in which fragile state institutions are embedded are needed for devising adequate, context-sensitive measures. • Connect measures to address fragility with democracy protection and the protection of human rights: Illiberalism, human rights violations and repression correlate with state fragility. This also suggests that there is a close relationship between autocracy, autocratisation and fragility. Accordingly, measures to address fragility, democracy support and efforts to protect human rights must be better connected. This also implies doing “no harm to democracy” (Leininger, 2023, p. 2). • Identify conditions under which state-building can (or cannot) be pursued: It would be fruitful if international security and development policymakers engaged in thorough discussions about the conditions under which state-building can be pursued. Where existing state institutions are legitimate, they should be supported. However, donor coherence and the capacity (and political will) of donors to commit resources to fragile states and to engage long-term are also important preconditions. State-building is both a costly and a long-term endeavour. • Learning across world regions: Patterns of state fragility can be highly similar, despite geographical distance. In particular, rising illiberalism and increasing attacks on civil liberties are global phenomena. Hence, policy decision-makers and civil society organisations (CSOs) seeking to counter fragility should engage in mutual learning across the North/South divide.
Topic:
Development, International Cooperation, Fragile States, and Development Aid
Political Geography:
Global Focus

5. Current Developments in West Africa’s Regional Integration – Challenges for the Future Design of Foreign and Development Policy

Author:
Klaus Grütjen
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
On 16 September 2023, Burkina Faso, Mali and Niger – all three states led by military regimes – decided to establish a new regional organisation, the Alliance of Sahel States (Alliance des Etats du Sahel – AES). This move was prompted by the worsening of the crisis within the Economic Community of West African States (ECOWAS) in 2023, a crisis that reached its peak to date with the announcement by the three AES members on 28 January 2024 of their withdrawal from ECOWAS, a regional organisation set up back in 1975. In a socio-political context in which the role and functions of the state, the extent of state powers and the way in which they are exercised are increasingly being called into question, new forms of political and social organisation are developing. These are also influenced by the current geopolitical developments in the changing world order. At the same time, states and societies and the ongoing regional integration processes are facing major new challenges. Within ECOWAS, conventional ideas of state and society, values and structures are coming up against growing tendencies towards a new understanding of statehood and sovereignty. In the West Africa/Sahel region, new processes of nation-building and state-building are under way, underpinned by efforts to renew social cohesion and to integrate the ‘vital forces of the nation’ – a concept cited increasingly frequently in these countries – as comprehensively as possible. These developments call for a realignment of German and European foreign and development policy. The political and social conditions and expectations of the partners in the West Africa/Sahel region are currently undergoing profound transformation. They need to be aligned with the content and interests of the value-based foreign policy advocated by Germany – in line with the principle of a ‘partnership between equals’. Any appraisal of the future developments and integration of the dynamics that determine them must take account of the various integration processes, which are particularly diversified and run in parallel in this region. Adopting a comparative perspective, this paper provides an overview of the various regional organisations in the West Africa/Sahel region. It analyses the potential of each of them in terms of their development prospects and sustainability. In addition to the critical relationship between ECOWAS and the AES, it also examines the West African Economic and Monetary Union (WAEMU), the Integrated Develop-ment Authority of the Liptako-Gourma Region (Autorité de Liptako-Gourma – ALG) and the G5 Sahel, which is currently being dissolved. If the partnership between Germany and Europe on the one hand and the West African and Sahel states on the other is to be continued, it will be vital to adopt a pragmatic approach and maintain a political dialogue with all the partners. The states in this region are extremely important to Europe’s future development. Moreover, it is only through communication based on mutual respect underpinning cooperation in the economic and development sectors that the growing influence of political powers such as Russia and Iran – whose ideas, interests and values are not in line with the Western Atlantic model of democracy governed by the rule of law – can be curbed effectively.
Topic:
Foreign Policy, Development, and Regional Integration
Political Geography:
Africa and West Africa

6. State Fragility and Development Cooperation: Putting the Empirics to Use in Policy and Planning

Author:
Charles Martin-Shields and Diana Koester
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
State fragility, which describes how different components of a state do (or do not) function, is a central concept for understanding how development activities and policies in complex political, humanitarian and conflict-affected contexts will (or will not) work in practice. Using fragility as a lens, we use feminist development policy and forced displacement as examples to demonstrate how different empirical conceptualisations of fragility can be used to uncover potential challenges and identify opportunities for more comprehensive policy and programming. These examples are only two ways one can apply the concepts of fragility of the OECD and the German Institute of Development and Sustainability (IDOS). Indeed, these and other empirical concepts of state fragility have many applications and can be used to measure and understand state–society, conflict and humanitarian dynamics in myriad ways. The longest-running among these kinds of models is the Fund for Peace’s Fragile States Index (Fund for Peace, 2023). Other models focus on state fragility as a function of different aspects of “stateness”. This includes IDOS’s Constellations of State Fragility typology, which clusters types of fragility based on strengths/weaknesses in key dimensions of statehood (Grävingholt et al., 2019). Some organisations have moved beyond an exclusive focus on the functioning of the state, with the OECD currently defining fragility contexts as the combination of risks and insufficient coping capacities of multiple levels of governance systems and/or communities to manage, absorb or mitigate those risks (OECD, 2016). The IDOS and OECD concepts do not rank countries, and the methods used in both models allow them to be applied to different levels of analysis. Essentially, these empirical conceptualisations of state fragility can serve as useful heuristics for the policy-makers responsible for setting policy agendas in fragile contexts.
Topic:
Development, Fragile States, Fragility, Cooperation, and Development Policy
Political Geography:
Global Focus

7. Getting Special Drawing Rights Right: Opportunities for Re-channelling SDRs to Vulnerable Countries

Author:
Jürgen K. Zattler
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Many developing countries are still grappling with the consequences of the pandemic and the associated high debt burdens while facing huge financing needs, inter alia related to climate change. In response, the International Monetary Fund (IMF) issued $650 billion in Special Drawing Rights (SDRs). The G7 and G20 have committed to re-channelling SDR 100 billion of their allocation to developing countries (on-lending, recycling and re-channelling are used interchangeably in this policy brief). The question now is how to implement these commitments in a way that promotes the global transformation and at the same time supports debt sustainability. It is important to note that there are certain restrictions on the re-channelling of SDRs. Most importantly, the re-channelling must be consistent with the SDR’s status as an international reserve asset. There are different interpretations of these requirements. The IMF has encouraged the use of the Poverty Reduction and Growth Trust (PRGT) and the Resilience and Sustainability Trust (RST) for re-channelling. It has also signalled general support for re-channelling SDRs to the multilateral development banks (MDBs). The European Central Bank (ECB) has taken a more restrictive stance. Does the re-channelling of SDRs through the above-mentioned IMF trusts (“the current on-lending option”) effectively support the global transformation? Measured against this objective, the current on-lending regime has two shortcomings. First, it does not sufficiently link foreign exchange support to deep structural transformation. Second, it does not allow funds to be leveraged in the private capital market. In this policy brief, we discuss a promising alternative: recycling SDRs for MDB hybrid capital (“the hybrid capital option”). This option can overcome the two drawbacks of the current system. At the same time, it has its own challenges. Moreover, both the current on-lending option and the hybrid capital option raise concerns about debt sustainability. If implemented in their current forms, they would risk exacerbating vulnerable countries’ debt problems. It would therefore be desirable to modify these options to better integrate debt implications. This could be done by using the on-lent SDRs primarily for programmes that are not “expenditure-based”, but rather help to improve the composition of expenditure and revenue in a socially equitable manner, for example the introduction of regulatory standards, feebates and carbon pricing, or the phasing out of fossil fuel subsidies. Such an approach could have the added benefit of making previously sceptical member states more receptive to the hybrid capital proposal. The mid-term review of the RST, scheduled for May 2024, as well as the full review in 2025 provide good opportunities to further explore some of the issues raised in this policy brief. In addition, the brief identifies three ways in which interested shareholders of the IMF and MDBs could advance the debate on the hybrid capital option.
Topic:
Development, Sustainability, COVID-19, and Multilateral Development Banks (MDBs)
Political Geography:
Global Focus

8. Multidimensional Impact of COVID-19 on Education and Implications on Inclusive Recovery

Author:
Gee Young Oh
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This report aims to present the findings of Oh et al. (2023), which analyzes the post-pandemic inequality levels in developing countries and derives policy implications for Korea's international development cooperation (IDC) to help reduce inequality, especially in the education sector. The impact of COVID-19 on education is multidimensional, with varying levels of heterogeneity across countries, regions, households, and individual stakeholders, including students, parents, and teachers. To comprehensively understand this multidimensionality, the study compares situations in two countries to explore inter- and intra-country educational disparities. After identifying such multidimensionality, the study derives policy implications on how Korea’s IDC can better target post-pandemic inequality in education.
Topic:
Development, Education, International Cooperation, Inequality, and COVID-19
Political Geography:
Asia and South Korea

9. Strategies for Assessing Triple Nexus Initiatives and Integrating Peace Aspects – Insights from Niger

Author:
Christina Plesner Volkdal
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:
The Triple Nexus approach represents a paradigm shift in how international organizations, including UNICEF, address complex crises that span humanitarian, development, and peace dimensions. UNICEF must navigate the delicate balance between adhering to the humanitarian principles of neutrality, impartiality, independence, and humanity while engaging in development and peace-building activities that may require aligning with government policies and engaging in politically sensitive contexts. There is a significant challenge in developing metrics and methodologies to measure the synergies and outcomes of the Triple Nexus approach effectively. This includes quantifying how initiatives contribute to peace interacting with humanitarian and development outcomes. UNICEF's approach in Niger, implementing food security policies to respond to humanitarian needs while simultaneously operating as a development program, holds the potential to positively impact peace in the region, thus aligning with the Triple Nexus framework.
Topic:
Development, International Organization, Food Security, Crisis Management, and UNICEF
Political Geography:
Africa and Niger

10. Unaccountable Adaptation: The Asian Development Bank’s overstated claims on climate adaptation finance

Author:
Sunil Acharya, Rasmus Bo Sørensen, and Hans Peter Dejgaard
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
Despite positioning itself as the ‘climate bank of Asia and the Pacific’, it is difficult to ascertain the Asian Development Bank’s claims of climate adaptation finance. Oxfam analysed the bank’s 2019–2023 climate finance portfolio and conducted a detailed assessment of 15 climate adaptation projects, comprising 43% of reported adaptation finance for FY 2021 and 2022. Oxfam found that the Asian Development Bank (ADB) hugely overstates the reported amounts with potential over-reporting of 44% in average for the assessed projects. This briefing paper calls for a transformative shift in the ADB’s adaptation finance strategies. The ADB must improve the accuracy and transparency of climate finance reporting and realign financial flows with the needs of the region's most vulnerable communities.
Topic:
Climate Change, Development, Finance, Accountability, Transparency, Adaptation, and Development Finance
Political Geography:
Asia

11. Beyond Crises: The future of Special Drawing Rights as a source of development and climate finance

Author:
Didier Jacobs
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
The allocation of Special Drawing Rights (SDRs) during the COVID-19 pandemic has generated considerable interest in using SDRs as a tool for development and climate finance. This policy brief argues that the monetary logic that underpins SDRs justifies regular allocations of at least $200 billion a year, and more than doubling the share of low-and middle-income countries. Once allocated, governments can use SDRs in multiple ways, including to fund some development or climate projects. The brief also discusses reforms to deepen the SDR system in the interest of all countries.
Topic:
Development, Climate Finance, Sustainable Development Goals, Economic Policy, and IMF
Political Geography:
Global Focus

12. Geopolitics in the Pacific Islands: Playing for advantage

Author:
Meg Keen and Alan Tidwell
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
Pacific Islands Countries are leveraging geopolitical rivalries to maximise their development options. But unmanaged competition for influence among key development partners can compromise good governance and privilege geopolitical posturing over local priorities. Australia, the United States, and other traditional donors can capitalise on areas of strength, such as social inclusion and regional and multilateral initiatives. Joint efforts along these lines and the pooling of resources would scale up impact and set higher accountability standards. Despite the risk that higher standards will open gaps for non-traditional donors with less burdensome criteria, there is much long-term value in traditional development partners collaborating in a “race to the top” in meeting the region’s needs.
Topic:
Foreign Policy, Development, Regional Cooperation, Foreign Aid, Geopolitics, and Donors
Political Geography:
China, Australia, Australia/Pacific, United States of America, and Pacific Islands

13. The African Union's contested role in advancing gender equality

Author:
Karmen Tornius
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The African Union (AU) has put forth significant initiatives addressing gender equality issues on the continent but is confronted by concerns related to legitimacy, donor dependency and questionable impact on the ground.
Topic:
Development, African Union, Donors, Equality, and Gender
Political Geography:
Europe and Denmark

14. Future Danish engagement with Africa: Insights and priorities for Denmark´s new Africa strategy from DIIS’ partners across the continent

Author:
Mary Boatemaa Setrana, Rahma Hassan, Faisal Garba, Mohamed Aden Hassan, Meron Zeleke Ersesso, Adam Moe Fejerskov, Nauja Kleist, and Mikkel Funder
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Remaking political relations with African countries has become a key priority for the Danish government, looking toward a future where Africa becomes of greater (geo)political importance to Denmark and Europe. To achieve this, Denmark is preparing a new plan for its future strategic engagement on the continent. Aiming to situate African countries closer to Denmark’s core foreign affairs, the plan is expected to address questions across the fields of foreign affairs, security, development, and trade, and focus on equal partnerships. The government has indicated a need to build on the mantra of ‘preaching less and listening more’ – as the Danish minister for foreign affairs framed it at a recent visit to Kenya – with political relations based on a ‘pragmatic idealism’ and more genuine forms of cooperation that reflect mutual interests. In this Policy Brief, some of DIIS’ African research partners consider key questions on what it takes to achieve equal partnerships, what a new Danish strategic engagement with Africa should look like, and what it should refrain from.
Topic:
Foreign Policy, Development, Engagement, and Strategic Engagement
Political Geography:
Africa, Europe, and Denmark

15. Somaliland at the centre of rising tensions in the Horn of Africa

Author:
Jethro Norman
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
On 1 January 2024, a surprise Memorandum of Understanding (MoU) was announced between the self-declared breakaway Republic of Somaliland and Ethiopia. The deal allowed landlocked Ethiopia to lease 20 kilometres of Somaliland’s coastal land for naval and commercial purposes. In exchange, Ethiopia would be the first country to recognise Somaliland as an independent nation (later revised by Ethiopia to an ‘in depth assessment’ of recognition). The government of the Federal Republic of Somalia (FGS), which considers Somaliland part of its territory, called the deal a violation of its territorial sovereignty, a position supported by the EU and other international partners. In western Somaliland’s Awdal region, where the coastal land has been promised, there have been widespread protests. The Ethiopia-Somaliland deal has immediately increased tensions throughout the region. The timing of the agreement is significant as it occurred shortly after Somalia agreed to resume talks concerning Somaliland’s disputed constitutional status, putting an abrupt end to the dialogue. Regional blocs are already coalescing between those who support Somalia’s territorial integrity (notably Djibouti, Egypt and Eritrea) and those supporting Ethiopia (including the UAE and Sudan’s Rapid Support Forces). The possibility of a future war in the Horn is a real concern. Analysis has so far focused on Ethiopia’s expansionist actions, especially in light of a looming debt crisis and various internal conflicts, and support from the UAE, an influential regional player. However, it is unlikely that this deal would have been possible were Somaliland itself not already in crisis. Although the news of the agreement was met with celebration in the capital, Hargeisa, Somaliland is not approaching this deal from a position of strength. Since 2022, it has lost control of a significant portion of its eastern territory to pro-unionist forces who established their own administration, SSC-Khatumo. Internal unrest has also been brewing since 2022 due to delayed Presidential elections in Somaliland. Although President Muse Bihi Abdi has allowed clan elders to mediate the election-related disputes, the opposition remains skeptical as to whether elections will indeed occur by the end of 2024. The aim of the deal with Ethiopia is to restore the President’s reputation, and by extension Somaliland’s international reputation, contain domestic resistance, and revive its battered economy. Mediating between Somaliland, Somalia and Ethiopia is necessary, but not enough. Addressing the deep-rooted political crisis within Somaliland and clarifying its status in relation to Somalia are essential for finding a long-term solution to regional instability. Resolving the political status of both Somaliland and the newly established SSC-Khatumo should be a top priority in achieving long-term stability in the Horn.
Topic:
Defense Policy, Development, Diplomacy, International Organization, Migration, Non State Actors, Fragile States, and Peacebuilding
Political Geography:
Africa, Somalia, and Horn of Africa

16. Locally-led climate change adaptation works: Here are eight ways to support it

Author:
Claire Bedelian, Judith Mulwa, Beatrice Sumari, and Peter Rogers
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Locally-led adaptation (LLA) is a framework of key principles for how to support communities in adapting to climate change. This policy brief looks at a study of six LLA water-related projects in Kenya and Tanzania to explore how donors, governments and civil society actors can best support the approach.
Topic:
Climate Change, Development, Water, Governance, and Adaptation
Political Geography:
Global Focus

17. Diaspora aid is crucial for emergency relief in the Somali regions

Author:
Nauja Kleist, Peter Albrecht, Mohamed Aden Hassan, and Karuti Kanyinga
Publication Date:
08-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Somali diaspora humanitarianism alleviates suffering and saves lives in the Somali regions that are affected by conflict, poverty and natural disasters. Its absence would exacerbate crises and significantly limit the impact of formal assistance.
Topic:
Development, Humanitarian Aid, Poverty, Natural Disasters, Diaspora, Fragile States, Economy, and Conflict
Political Geography:
Africa and Somalia

18. The Role of Multilateral Development Banks in Financing Energy Transition in South America

Author:
Maria Elena Rodriguez, Rafaela Mello Rodrigues de Sá, Octávio Henrique Alves Costa de Oliveira, and Renan Guimarães Canellas de Oliveira
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
BRICS Policy Center
Abstract:
With the signing of the Paris Agreement in 2015, the world institutionalized the goal of keeping global temperature rise below 2ºC, based on efforts to adapt to and mitigate climate change. It is in this context that the actors involved presented their commitments to establish policies and strategies to reduce carbon emissions in different sectors of the economy. This process of reducing emissions can be called decarbonization and consists of replacing fossil energy sources with clean renewables, in addition to encouraging the use of electrification technology, such as electric cars. This movement promotes transformation toward a low-carbon economy in various sectors. In the energy sector, this transformation is called the clean energy transition, as it attempts to reduce greenhouse gas emissions in the energy matrix. For this to happen, increasing the use of renewables over using fossil fuels such as coal and oil is encouraged.
Topic:
Climate Change, Development, Finance, Multilateralism, Paris Agreement, and Energy Transition
Political Geography:
Global Focus

19. Europe’s development and peacebuilding cuts: Securing short-term interests, risking long-term security

Author:
Katariina Mustasilta
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
Development cooperation budgets are tightening in the EU amid economic pressures and a focus on security and defence. Two broad shifts are taking place in EU and member state investments in peacebuilding and conflict prevention: a general decline in funding and decreasing attention to conflict-affected regions and countries in particular. Local and international conflict prevention and peacebuilding actors need to frame their work to align with the EU’s economic, security and geopolitical interests in order to remain relevant in an era of strategic competition. The implications of the shifts in funding will depend on how changes are implemented and under what types of strategies. A general risk is that policy decisions will be based on a short-term and largely reactive rationale at the expense of a long-term perspective on Europe’s interests.
Topic:
Security, Development, International Cooperation, European Union, Crisis Management, and Peacebuilding
Political Geography:
Europe

20. Renewable Energy and Electricity Interconnection Megaprojects in North Africa: Prospects for Euro-North Africa Cooperation

Author:
Michaël Tanchum, Hussein Suleiman, Alexander P. Martin, Tristano Sainati, and Jose Rodrigo Juarez Cornelio
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
IEMed/EuroMeSCo
Abstract:
This Joint Policy Study delves into North Africa’s renewable energy landscape, examining the potential and challenges of megaprojects in the region. With a specific focus on renewable energy production and exports, it explores the intricacies of megaprojects in Morocco, Egypt, Algeria and Tunisia, assessing their successes, hurdles, and future potential. North Africa, especially the Sahara Desert, has vast potential for renewable energy production due to its exceptionally high solar irradiation levels, positioning it as an ideal site for solar energy projects. Economically and geopolitically, there is a strong rationale for Euro-North African collaboration to enhance North Africa’s ability to generate and export renewable energy in a way that benefits both regions. However, despite this significant potential, North African countries have faced numerous geopolitical, economic, societal and infrastructural obstacles in fully capitalising on these resources.
Topic:
Development, Infrastructure, Electricity, Renewable Energy, and Solar Power
Political Geography:
Europe and North Africa

21. The Maghreb maze: Harmonising divergent European policies in North Africa

Author:
Anthony Dworkin
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
The Maghreb policies of the four most influential EU member states are diverging, driven by national politics and their interaction with developments in the region. Italy is pushing an ‘engagement-first’ strategy for Tunisia and building energy links with Algeria, while Spain has tilted strongly towards Morocco. France’s relations with Maghreb countries are complicated by historical legacies and regional expectations, Germany is pulling back as hopes for democratic reform have faded. These divisions risk allowing Maghreb leaders to set the agenda of relations with Europe, frustrating longer-term European interests in promoting stability, reform, and effective governance. A better European approach would use strong bilateral relationships as entry points to pursue a more coordinated policy, building on areas in which EU interests converge.
Topic:
Foreign Policy, Development, Reform, and European Union
Political Geography:
Europe, Algeria, North Africa, Morocco, and Maghreb

22. Budget Brief: Mission Saksham Anganwadi and Poshan 2.0

Author:
Avani Kapur, Tanya Rana, and Ritwik Shukla
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Centre for Policy Research, India
Abstract:
In Financial Year (FY) 2021-22, the Government of India (GoI) restructured the Integrated Child Development Services (ICDS), POSHAN (Prime Minister’s Overarching Scheme for Holistic Nourishment) Abhiyaan, and the Scheme for Adolescent Girls (SAG) into Mission Saksham Anganwadi and Poshan 2.0, also known as Poshan 2.0. This brief uses government data to analyse: ■ Required funds, allocations, and releases; ■ Governance, including human resources; ■ Changes in coverage; and ■ Outcomes.
Topic:
Development, Governance, Budget, Children, and Public Spending
Political Geography:
South Asia and India

23. Korea's Official Development Assistance to the Philippine Education Sector: Observations and Inputs

Author:
Inero Ancho
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Advocating inclusive and equitable quality education (SGD 4: Quality Education) is central to sustainable development efforts anchored on collaboration and partnership that enable the policy-to-impact synergy. Agencies and institutions in various levels need to align motivations as they work towards realizing education for sustainable development (ESD). As education fuels sustainable development, school access and completion need to be prioritized, as wealth inequality and gender gap are eliminated. Human capital investment involves the provision of relevant and responsive education systems and training. These mechanisms enable an individual to be productive and contribute to positive outcomes, improved standard of living, and potential gains. As a core element to growth and poverty reduction, human capital suggests implementing significant and concrete progress in core education indices. Further, sustained economic growth, increased productivity value, and favorable social returns are manifested outcomes at the macro level. This paper looks at the ODA from Korea to the Philippines in the context of education. The discussion will be anchored on the Philippine Development Plan and AmBisyon Natin 2040 as roadmaps reflecting the aspirations of every Filipino of having a strongly rooted, comfortable, and secured life.1 Observations and inputs will be offered to ensure effective ODA and provide focus and ways forward towards access to and quality of education, along with programs and projects that contribute into any meaningful development of the Philippine economy.
Topic:
Development, Education, Economy, Human Capital, and Sustainability
Political Geography:
Asia, South Korea, and Philippines

24. ASEAN's medium- to long-term trade strategies and the direction of RoK-ASEAN cooperation

Author:
Sungil Kwak, Seungjin Cho, Jaewan Cheong, Jaeho Lee, Mingeum Shin, Nayoun Park, and So Eun Kim
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
In recent years, the U.S.-China hegemony competition has intensified, dividing the world into two blocs. ASEAN has long culti-vated its position on the international stage by maintaining a certain distance between the United States and China. In that sense, ASEAN is the best partner for Korea to ef-fectively respond to the divided world. Therefore, this study seeks the directions of cooperation with ASEAN in supply chain, digital trade, climate change response, and health and development cooperation in line with changes in the international order.
Topic:
Climate Change, Development, Economics, International Cooperation, Trade, and ASEAN
Political Geography:
China, Asia, North America, and United States of America

25. Developing ODA Evaluation Methodology for Technical Cooperation

Author:
Eunsuk Lee and Hyemin Yoon
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
As the volume of Korea's official development assistance (ODA) expands, the demand for systematic management of evaluations and improvement of their usefulness is increasing. This study focuses on developing evaluation methodology for technical cooperation (TC) which is an important part of Korea’s ODA. Based on the case studies of six multilateral organizations and four bilateral development agencies, we draw lessons for Korean ODA agencies in terms of selection criteria, types, and methodological aspects of evaluation of technical cooperation and propose a four-step project management and evaluation mechanism for TC activities.
Topic:
Development, Economics, Science and Technology, and Management
Political Geography:
Asia and South Korea

26. Multilateral development banks are key to unlocking low-carbon investments in developing economies

Author:
Steven Fries
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Over the next three decades, emerging markets and developing economies (EMDEs), and especially middle-income countries, are projected to account for much of the growth in global economic activity and energy use. While a decisive move to low-carbon technologies and energy efficiency would advance both their development goals and a stable climate, the countries have yet to fully tap this opportunity. The multilateral development banks (MDBs) are in a unique position to help lower barriers to low-carbon investments in EMDEs and unlock these sustainable development opportunities. Their differentiating governance, financial and technical capabilities, and financing instruments would enable MDBs to support the necessary business environment and energy reforms and to cofinance low-carbon and energy efficiency investments alongside other investors to reduce and manage risks.
Topic:
Development, Economy, Multilateralism, Investment, and Carbon Emissions
Political Geography:
Global Focus

27. Scaling up locally led adaptation in Bangladesh: three action areas

Author:
International Centre for Climate Change and Development (ICCCAD)
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
International Centre for Climate Change and Development (ICCCAD)
Abstract:
Although highly climate vulnerable, Bangladesh in South Asia is known as a pioneer of climate change adaptation. Recent national policies have recognised the vital importance of community-based and locally led adaptation (LLA). Where LLA interventions have been used by international and national nongovernmental organisations (NGOs), they have proven to be both effective and widely accepted by local communities. Yet major gaps remain in implementing LLA nationally due to legislative, administrative and conceptual limitations. Meeting Bangladesh’s ambitious national targets will require better coordination within government and with NGOs, so that each can benefit from the other. Building on recent examples, this briefing showcases existing interventions that are replicable and scalable and presents three key action areas requiring further government support. The lessons are also relevant to LLA practitioners in Bangladesh and other Least Developed Countries.
Topic:
Climate Change, Development, Local, Community, Adaptation, and Capacity Building
Political Geography:
Bangladesh and South Asia

28. Potential and Pitfalls for African Industrialization in Chinese-built Standard Gauge Railways

Author:
Yunnan Chen
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:
Railway development has been a key feature of transport infrastructure investments in several African economies, with several new standard gauge railways (SGR) built in the last ten years in Ethiopia, Nigeria, and Kenya. These planned projects have also entailed substantial Chinese involvement through construction contractors, in financing, and in the operations and management, becoming part of the wider Chinese discourse of the Belt and Road Initiative (BRI). They also have significant potential in supporting the industrialization plans of African states, and in some cases, have been explicitly linked to plans for a green transformation. This brief draws from case studies across Africa with a focus on Ethiopia, to highlight the significant potential of railway investments as a low-cost, low-carbon transport for green industrialization, but also its pitfalls and challenges as an infrastructure for governance, and local technology transfer.
Topic:
Development, Belt and Road Initiative (BRI), Industrialization, and Railways
Political Geography:
China and Africa

29. Electric Vehicles and the Changing Automotive GVC: A Window of Opportunity for African Countries?

Author:
Tobias Wuttke
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:
Only two African countries have successfully integrated with the automotive GVC to date: South Africa and Morocco. Their experiences, compared to other even more successful developing and emerging economies with automotive industries, highlight both the opportunities as well as the limitations of automotive GVC participation as an economic development engine. Scale in vehicle production, facilitated by government industrial policy, is the key prerequisite for successful participation with localisation benefits. These fundamentals do not change with the shift to electric vehicles. Governments in Africa and elsewhere need to attract FDI in electric vehicle production and from there can support the development of a local component and materials value chain. Once these basics are covered, governments and local firms can aim for making use of the technological window of opportunity by investing in EV-related technology, mainly battery technology, to potentially capture more value from automotive GVC participation than has traditionally been possible in the ICE vehicle value chain.
Topic:
Development, Industrial Policy, Foreign Direct Investment, Global Value Chains, Automotive Industry, and Electric Vehicles
Political Geography:
Africa

30. Current Capabilities and Future Potential of African Textile and Apparel Industries

Author:
Lindsay Whitfield and Chema Triki
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:
The textile and apparel industry is a globalised industry characterised by a high degree of dependency and fragmentation in global supply chains. From the mid-20th century, cotton textile and apparel manufacturing production relocated from industrialised to developing countries, particularly in Asia, and was quickly followed by the emergence of the petrochemical industry and synthetic fibre production in East Asian countries, while South Asia continued to focus on cotton and natural fibres. China, Bangladesh, and Vietnam are currently the central players in global apparel supply chains, with China and increasingly Vietnam having vertically integrated industries with access to a diverse range of fabrics and thus a large product portfolio. The largest apparel consumer markets are concentrated in Europe, North America, and other wealthy countries such as Japan, as they have higher purchasing power and economically larger markets. Large emerging economies such as China and India largely supply their domestic markets but have not yet become major destination consumption markets for other developing economies. Changes in international trade over the past 30 years fostered the textile and apparel global value chain dynamic. These changes were marked by opening trade borders, lowering tariffs, tax breaks or subsidies offered by various governments, and free trade agreements. Low labour costs and lower production costs have shaped the decisions of global actors to relocate their operations from one country to another. Current global trends are set to transform the global value chains of textiles and apparel again. These trends include increasing production costs in China, the drive to shorten supply chains post-Covid pandemic through nearshoring and seeking countries with yarn-to-garment (or vertical) production capabilities, and a sustainability shift. These trends are leading global apparel buyers to diversify their sourcing away from China and Asia more generally and to consider new supply bases. These structural trends in the industry, together with the AfCFTA, represent a window of opportunity for African countries. African industry actors and their governments should build new textile and apparel industries that seek to participate in global and regional markets and engage with global technologies and international partnerships. Attracting foreign firms with the necessary technical, organisational, and managerial capabilities is essential. The AfCFTA represents a powerful tool to respond to the verticality need of the industry, considering the current production levels of raw materials, but also an opportunity to increase the number of African countries with industrial capabilities in textile and apparel. The ongoing negotiations on rules of origin will significantly impact the continent's potential to create synergetic regional value chains.
Topic:
Development, Industrial Policy, International Trade and Finance, Business, Supply Chains, and Textile Industry
Political Geography:
Africa

31. Climate Change Mitigation for Late Industrialisers: The Role of Technology Intensity in Manufacturing

Author:
Elvis Korku Avenyo and Fiona Tregenna
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:
Many developing countries now have a renewed focus on industrialisation and industrial policy. This is based on the recognition that industrialisation is a key driver of long-term economic progress and is the central route to improve the well-being of citizens in developing countries (Chenery, 1955; Tregenna, 2016; United Nations Industrial Development Organization [UNIDO], 2016). At the same time, the climate crisis poses an existential threat to the global economy and to humanity and has emerged as a challenge to the industrial development prospects and pathways of developing countries. This is because industrialisation is an important contributor to global warming, specifically to anthropogenic emissions of cardon dioxide (CO2.) (Adom et al., 2012; Han & Chatterjee, 1997). Late industrialisers thus face a dual challenge: industrialising while mitigating climate change (Altenburg & Rodrik, 2017). Hence, there is now a degree of tension as to how late industrialisers can achieve long-term economic development under paths involving heavy or intensive industrialisation, while mitigating emissions and environmental damage more broadly. An emerging discourse recognises the critical need for developing countries to push towards industrial development that, while generating growth in productivity and jobs, is also environmentally sustainable. This is especially important, as poorer countries are particularly vulnerable to the immediate effects of the climate crisis (Altenburg & Rodrik, 2017; Padilla, 2017). Thus, transforming towards sustainable production systems and green industrial policies offers developing countries opportunities to industrialise in an environmentally sustainable way while contributing to job creation and economic prosperity (Altenburg & Rodrik, 2017; Padilla, 2017; Rodrik, 2014). However, the high ‘green premia’ and new access barriers to the ‘green’ energy technologies from advanced economies directly threaten this potential sustainable industrial development pathway in developing countries.
Topic:
Climate Change, Development, Science and Technology, Manufacturing, Industrialization, Sustainability, and Carbon Emissions
Political Geography:
Global Focus

32. Financing Loss and Damage at Scale: Toward a Mosaic Approach

Author:
Michael Franczak
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
International Peace Institute (IPI)
Abstract:
The historic decision on loss and damage (L&D) at the 2022 UN Climate Change Conference (COP27) calls for a new fund and funding arrangements focused on addressing L&D. It also tasks a Transitional Committee to prepare recommendations on the new fund and funding arrangements for adoption at the 2023 UN Climate Change Conference (COP28) in Dubai. This decision reflects a recognition that existing funding arrangements are grossly inadequate to address the escalating scale of L&D. Addressing L&D will require both enhancing these existing arrangements and creating a new fund and funding arrangements, forming a mosaic of solutions across countries, institutions, and markets. This paper aims to aid the Transitional Committee and other stakeholders by providing an initial sketch of that mosaic. First, it examines existing arrangements, modalities, and sources of funding for addressing L&D from UN humanitarian agencies, multilateral development banks and international financial institutions, and insurance and bond markets. Second, it proposes reforms to existing arrangements that would address key finance gaps and bottlenecks. Third, it identifies elements of a new L&D fund that would complement existing arrangements and make use of innovative finance (including levies and bond issuances) to operate at scale. With roughly six months left until COP28, the Transitional Committee will need to work efficiently to achieve its mandate, which includes determining the fund’s institutional arrangements, modalities, structure, governance, sources of funding, and coordination and complementarity with existing funding arrangements. To this end, the paper recommends that it should: Begin securing financing before COP28, particularly innovative financing, which takes longer to secure than traditional donor contributions; Consult with the private sector to determine its role, including in the use of insurance mechanisms and risk pools, frontloading, and connections between L&D and jobs; Determine the form and role of triggers, including for slow-onset events; Consider how to address noneconomic losses, including displacement and forced migration; and Identify the actions, mechanisms, and institutions required to operationalize the fund, including an internal or external coordination mechanism.
Topic:
Climate Change, Development, United Nations, and Finance
Political Geography:
Global Focus

33. Global Inequality in Well‐​Being Has Decreased across Many Dimensions: Introducing the Inequality of Human Progress Index

Author:
Chelsea Follett and Vincent Geloso
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The world has seen dramatic, global human progress across a broad range of indicators in recent decades, but have those gains been widely shared? The Inequality of Human Progress Index (IHPI) measures relative gaps in global development. It surveys international inequality across a greater number of dimensions than any prior index. By analyzing inequality in a multidimensional way, the IHPI takes inequality more seriously than those indexes that focus on income inequality alone. The IHPI considers material well‐​being and seven additional metrics: lifespan, infant mortality, adequate nutrition, environmental safety, access to opportunity (as measured by education), access to information (as measured by internet access), and political freedom. Across all but two of those dimensions, the world has become more equal since 1990. Globalization and market liberalization over the past few decades have not only raised absolute living standards but also reduced overall inequality.
Topic:
Development, Inequality, Economy, and Well-Being
Political Geography:
Global Focus

34. Security professionals are changing how humanitarian organisations operate

Author:
Jethro Norman
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The International Committee of the Red Cross (ICRC) created the first position solely dedicated to security in 1991, but for the next decade it was rare for humanitarian organisations to embed security professionals. After the 2003 Canal Hotel bombing in Baghdad in which the UN’s special representative in Iraq was killed, the United Nations Department of Safety and Security (UNDSS) was established. However, attacks on aid workers increased throughout the 2000s in countries such as Afghanistan, Iraq and Somalia. Humanitarian organisations invested more in their security in response to these threats, as well as changing norms around humanitarian liability. In 2015, in a landmark ruling, an aid worker successfully sued the Norwegian Refugee Council (NRC) for gross negligence. In response, donors implemented increasingly stringent insurance protocols, and the demand for humanitarian security professionals continued to grow. Today, virtually every international humanitarian organisation operating in an insecure region employs an international security professional, typically from a western military, police or private security background. Insights from long-term fieldwork with security contractors and aid workers in Sub-Saharan Africa (including Somalia, Kenya, South Sudan and Tanzania) shows that this has resulted in friction between the two groups, especially in relation to access and liability. In recent years, several developments have streng- thened the authority of security professionals over humanitarian staff. First, digital technologies have been increasingly used for information gathering, monitoring of staff and remote management. Second, as humanitarian security has become more structured and coordinated, new international organisations have emerged whose sole purpose is to provide security services to humanitarian clients. Whilst sometimes registered as non-profits, their function is not dissimilar to commercial private security companies, raising important questions about how the information they gather may be used beyond humanitarian purposes.
Topic:
Security, Development, Humanitarian Aid, and Humanitarian Organizations
Political Geography:
Global Focus

35. Climate change, mobility and human trafficking in Ethiopia

Author:
Ninna Nyberg Sørensen
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Throughout history, demographic, economic, political, religious, and environmental developments have resulted in Ethiopian mobility, mainly within the country or neighbouring region, but also further afield. Although Ethiopia’s current migration rate is only about half of the sub-Saharan average of 2%, the combined effects of poverty, population growth, conflict, and climate change have led to a recent growth in international migration. Women make up half of these flows. Proximity to the Middle East has facilitated women’s migration for domestic work while simultaneously raised concern over human trafficking violations. International Human Rights and anti-trafficking organisations predict that the negative effects of climate change will increase the vulnerability to trafficking in persons, forced labour, sexual exploitation, and debt bondage. This policy brief draws on research carried out under the auspices of the collaborative ‘Governing Climate Migration’ (GCM) research programme to further explore how climate change, migration and human trafficking may interlink. It questions routine applications of the human trafficking label to irregular Ethiopian migrant domestic workers and suggests replacing it with a migration-trafficking continuum approach that takes life before, during and after migration into account.
Topic:
Climate Change, Development, Migration, Borders, Risk, and Human Trafficking
Political Geography:
Africa and Ethiopia

36. Existing Dispute: Does the new budget set the stage for a fresh phase of conflict in Iraq?

Author:
FARAS
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
On 12 June, 2023, Iraq's Council of Representatives approved a three-year budget (2023-2025) of 198.9 trillion dinars (USD 153 billion), including the budget for Iraq's Kurdistan region. This came around three months after the government filed the draft budget, making it the largest in Iraqi history.
Topic:
Development, Oil, Budget, Domestic Politics, Public Spending, and Parliament
Political Geography:
Iraq, Middle East, and Kurdistan Region of Iraq (KRI)

37. Power and potential: The economics of Egyptian construction and ICT

Author:
Matteo Colombo
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Young Egyptians’ dissatisfaction with their employment prospects was a key driver of protests in 2011 and 2013. Since then, the country’s political authorities have worked hard to create job opportunities for young Egyptians by boosting growth in the construction sector (infrastructure and public works), among other things. Since the sector also generates substantial revenues for the country’s power elite, this has been a win-win strategy in the short-term. But overreliance on the construction sector has also created too many informal and unstable jobs that are a poor match for Egypt’s many well-educated graduates. Cairo’s growth strategy has not addressed some of the country’s long-standing economic problems, such as informality and a low overall employment rate. Giving the country’s promising ICT sector a boost similar to that of the construction sector to address such deficiencies and anticipate a looming debt crisis requires a paradigm shift with two elements. First, a deal between Egypt’s political authorities and the power elite that buys time in exchange for future rents. Second, facilitation of private sector dynamism through regulatory encouragement and public seed funding for new business activity.
Topic:
Development, Economics, Employment, and Construction
Political Geography:
Middle East and Egypt

38. Getting global development back on track: Focus and start at home

Author:
Erwin van Veen
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Since 2019, realisation of the Sustainable Development Goals (SDGs) has gone from patchy to off-track as a result of Covid-19, global price shocks caused by the war in Ukraine and accelerating climate change. About 100 million people were thrown back into extreme poverty and hundreds of millions more face reduced health, livelihood and income prospects for the rest of their lives. The climate change agenda also took a backseat. Long-term global effects will be profound in terms of growing migration flows, further climate degradation and, likely, more conflict, authoritarianism and populism. Putting global development back on track requires focusing on fewer priorities rather than the entire SDG agenda, namely those with the highest negative impact on developing countries: conflict, climate change and inequality. Addressing these problems primarily requires middle- and high-income countries to reduce their contribution to climate deterioration and inequality at home, and to increase their support for conflict resolution efforts elsewhere at a faster rate. While it may seem counterintuitive, the greatest development contributions that developed countries can make lie at home.
Topic:
Climate Change, Development, and Sustainable Development Goals
Political Geography:
Global Focus

39. Trading short-term gains for long-term costs: the Egyptian political economy under al-Sisi

Author:
Matteo Colombo
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Egypt’s political economy has been operating on the basis of three core principles over the last few decades. First, the country’s political authorities set strategic economic objectives in a top-down manner. Second, the power elite supports the political authorities and, in exchange, tightly supervises homegrown and foreign investment to generate revenues and job opportunities, as well as private benefits. Third, Egyptian citizens acquiesce, willingly or unwillingly, in this division of power that mostly benefits the political authorities and power elites in exchange for improvements in their livelihoods. Since 2014, President al-Sisi has held closely to these principles but relied increasingly on Egypt’s military networks (part of the power elite) to boost economic growth. This strategy has produced short-term gains – informal jobs and an array of consumer goods – at the expense of long-term economic prospects. In particular, the military’s economic influence has deepened some of Egypt’s structural problems: low productivity, inequality, informal unemployment and a suppressed private sector. This limits the future sustainability of the current economic model. Improving Egypt’s economic prospects requires reducing the role of the state – especially the military – in the economy in terms of decreasing the number of associated enterprises and lightening the regulatory framework. However, this is nearly impossible to realise in sectors in which the military already has a dominant profile, such as construction and extractives, because its support is essential for al-Sisi to maintain power. A more promising alternative for European policy makers to consider is influencing the Egyptian government to limit military influence in sectors with growth potential where the military is largely absent, such as manufacturing and Information and Communications Technology (ICT). A government strategy that prevents further military involvement in these sectors, crafts a regulatory framework conducive to private investment and invites foreign funding, can help Egypt realise greater economic growth and higher fiscal revenues.
Topic:
Development, Political Economy, Economy, and Abdel Fattah el-Sisi
Political Geography:
Middle East and Egypt

40. Migration in the Context of Climate Foreign Policy

Author:
Kira Vinke, Hannes Einsporn, Dana Schirwon, and Mahalia Thomas
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Migration, displacement and resettlement in the context of climate change are not distant scenarios of the future, but are now materializing along increasingly severe extreme events and slow-onset degradation. In view of accelerating global warming and the danger of crossing tipping points in the Earth system, forward-looking climate foreign policy and development policy should increasingly focus on severe climate impacts.
Topic:
Foreign Policy, Climate Change, Development, and Migration
Political Geography:
Germany and Global Focus

41. Post-Disaster Aid in “Politically Estranged” Settings: Findings from Ten Years of Post-Nargis Social Research in Myanmar

Author:
Markus Kostner
Publication Date:
08-2023
Content Type:
Policy Brief
Institution:
Center on International Cooperation (CIC)
Abstract:
This paper aims to inform post-disaster relief and recovery efforts in situations where relations between major development donors and national authorities are estranged. It reflects on the “what” and the “how” of aid as well as on the challenges encountered, and created, by aid providers following the 2008 Cyclone Nargis in Myanmar. It thereby demonstrates the importance of giving agency to communities for both aid delivery and oversight in these settings. Longitudinal social impacts monitoring (SIM) in a panel of 40 villages following the 2008 Cyclone Nargis identified three interrelated, yet often neglected principles that help to determine the effectiveness of post-disaster aid: empowerment—communities not only participate in, but own decision-making throughout the project cycle; transparency—communities know what aid a provider intends to deliver, and how; and accountability—communities can seek redress for aid that risks harming them in some way. Had these principles been applied consistently during the post-Nargis period, the aid effort could have identified critical challenges and opportunities more easily, such as: the fact that communities are readily able to identify what they need, and to prioritize the types of assistance they wish to receive (particularly regarding livelihood recovery); the importance of anticipating longer-term, direct and indirect economic, social, and mental health impacts; the value of building flexibility into the aid effort as needs change throughout the recovery process; the need to differentiate between livelihood groups, consider their interdependence, and target aid accordingly and consistent with village social norms; the importance of including local formal and informal leaders in the decision-making process from the outset; the imperative of providing aid irrespective of identity markers such as ethnicity or religion; and the need to avoid overburdening or harming communities through the way aid is administered. The post-Nargis aid effort faced numerous political and logistical complexities of operating in a country that was facing international sanctions. These challenges notwithstanding, several aid providers demonstrated that adherence to the three principles was possible. The SIM series thus confirmed that, for aid in “politically estranged” post- disaster settings, community-driven approaches can be an effective delivery modality and community-based, participatory social research can be a powerful oversight mechanism.
Topic:
Development, Humanitarian Aid, International Cooperation, Natural Disasters, and Donors
Political Geography:
Southeast Asia and Myanmar

42. Climate Adaptation in Africa: Locally Led and Nature Based Solutions

Author:
Jamal Saghir and Ede Jorge Ijjasz-Vasquez
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Institute for the Study of International Development, McGill University (ISID)
Abstract:
Climate change continues to cause damage in Africa. It triggers food insecurity, poverty and displacement. The impacts of climate change are being exacerbated by rapid urbanization, geopolitical tensions, headwinds caused by the invasion of Ukraine and its impacts on agricultural exports and fertilizers. Equally important, inflationary pressures, risks of global and regional economic recession, and unsustainable debt levels for many countries are amplifying the impacts of climate shocks on African economies and communities. Our recent analysis by the Global Center for Adaptation (GCA)1 shows that Africa is ground zero for the climate emergency. The climate is changing, and Africa needs to adapt. It must adapt to rising temperatures, more extreme storms, and floods, rising sea levels, more intense heatwaves, and longer and more severe droughts. However, an enormous funding gap on adaptation is holding Africa back. This policy brief analyses climate adaptation financial flows to Africa and argues that the limited resources available to Africa for adaptation need to be used in the most efficient and productive manner to dampen the combined impacts of climate shocks and economic downturns. Nature-based solutions (NbS) and Locally Led Adaptation programs (LLA) are critical in this respect. Moreover, multilateralism and collaboration between governments, international organizations, international financial institutions, civil society, and the private sector are critical to ensure more support for adaptation in Africa.
Topic:
Climate Change, Development, Food Security, Nature, and Adaptation
Political Geography:
Africa

43. Evaluating The Social and Economic Consequences of Global Warming On African Women

Author:
Eyesiere-Hope Essien
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Women of Color Advancing Peace, Security and Conflict Transformation (WCAPS)
Abstract:
By Eyesiere-Hope Essien of the Climate Change Working Group Global warming is significantly impacting developing countries and the effects are far-reaching which is having a devastating impact on African women and their communities, leading to adverse social and economic consequences. Climate change has resulted in an increase in temperature, more extreme weather events, rising sea levels, and a decrease in water availability. As a result, African women are facing a growing number of challenges related to food insecurity, water scarcity, and healthcare access. They are at greater risk of poverty, displacement, and exploitation. These issues can be further exacerbated by a lack of access to education and employment opportunities. It is essential to understand the nature of these impacts and to take action to mitigate them and ensure African women have the resources and skills to adapt to the changing environment.
Topic:
Climate Change, Development, Health, Water, Women, and Food Security
Political Geography:
Africa

44. Strategies to future-proof Zambia: Debt relief and beyond

Author:
Vincent Obisie-Orlu
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Good Governance Africa (GGA)
Abstract:
Debt relief negotiations are currently taking place, with Zambia expected to be the first country to receive debt relief under the newly created G20 Common Framework. However, the process faces challenges, with China and the United States trading accusations of impeding the process. Some of Zambia's creditors have also been unwilling to agree to write off some of the country's debt. Positively, innovative approaches to debt relief have been proposed that would support Zambia's net-zero ambitions and promote sustainable development, such as debt for nature swaps. The integration of Zambia into the European Union's Critical Minerals framework could further support and assist Zambia in attaining a deal. Without a deal, Zambia risks being plunged into further macroeconomic uncertainty at a time when the country needs investment to capitalise on opportunities presented by political stability and structurally higher prices for copper and other critical minerals with which Zambi a is endowed.
Topic:
Debt, Development, Natural Resources, Political stability, Mining, and Macroeconomics
Political Geography:
Africa and Zambia

45. Green Jobs and the City: Towards a Just Transition in Developing Countries

Author:
Alexander Kleibrink, Anna Pegels, Michael Fink, and Wolfgang Scholz
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This policy brief examines actions for a just transition of local job markets in developing countries. We identify building blocks for shifting from carbon-intensive towards green jobs in this transition. Green jobs in cities are key to ensure a just transition of local employment markets, both formal and informal, and make cities function more sustainably. They are part of a wider inclusive green economy aiming at carbon-neutrality and resource efficiency with a focus on human well-being and social equity while paying special attention to local nature-based solutions. The transition will create winners and losers. Both need to be managed if the process and outcomes are to be just.
Topic:
Climate Change, Development, Economy, and Green Jobs
Political Geography:
Global Focus

46. Strengthening Social Cohesion in Conflict-Affected Societies: Potential, Patterns and Pitfalls

Author:
Fletcher D. Cox, Charlotte Fiedler, and Karina Mross
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Bilateral and multilateral donors are increasingly focusing on strengthening social cohesion in efforts to build and sustain peace in conflict-affected societies. What does promoting social cohesion mean with respect to inter­national engagement? This policy brief provides an overview of the “social cohesion” approach, explains how it applies to conflict-affected and fragile contexts, and intro­duces a typology of common interventions. It discusses the added value of taking a social cohesion approach to development and peacebuilding practice, as well as challenges policymakers and practitioners may encounter when using it. Social cohesion can be understood as positive relations among individuals and groups (the horizontal dimension) and between society and the state (the vertical dimension). While fostering, rebuilding or sustaining cohesion are challenges for any society, they are particularly difficult in conflict settings where divisions fuel violence and violence reinforces divisions. We argue that taking a social cohesion approach in divided, conflict-affected societies offers several advantages. First, it has the potential to focus intervention on less tangible aspects of conflict – drawing attention to overlooked grievances and bringing tensions between groups and the state into focus. Second, it helps integrate a peacebuilding lens in a broad variety of policy spaces. Third, it helps policymakers to integrate citizen perspectives into develop­ment strategies and to focus on the provision of quality peace for all citizens. Taking a social cohesion approach, however, also brings challenges. It may be sensitive for external actors to address social grievances, identity-based divisions and power relations. Dominant groups may feel threatened in their position of power and push back against these attempts, or tensions among historically marginalised groups may cause friction. Donors may experience backlash against programmes that directly address sensitive topics. At the same time, if the intent is to take a transformative approach to building social cohesion, it may be difficult for donors to maintain a neutral stance. Social cohesion programmes may risk increasing tension in the short term, but to restore inter-group trust and state legitimacy over the long term, it might be necessary to confront and accept tension.
Topic:
Development, Engagement, Social Cohesion, Donors, and Development Policy
Political Geography:
Global Focus

47. Cotton Made in Africa: A Case Study of Sustainable Production through Responsible Consumption

Author:
Roger Peltzer and Michael Brüntrup
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Responsible consumption and production are key to sustainable development, and are therefore a Sustainable Development Goal (SDG 12) in their own right. Consumption and production patterns also need to be socially responsible and economically viable. Private-sector requirements and state supply chain regulations, which have become more widespread in recent years, are designed to ensure that products consumed in high-income countries but manufactured (at least partially) in low-income countries are produced in line with certain social and environmental standards. Although progress has been made, many questions remain, particularly regarding whether the local social and economic impacts are sufficient. Cotton made in Africa (CmiA) is a certification initiative within the textile industry. Established 18 years ago as part of one of the largest public-private partnerships of German Development Cooperation with private foundations and private companies around an agriculture-based supply chain, CmiA – like its sister scheme the Better Cotton Initiative (BCI) – seeks to ensure compliance with specific environmental and social conditions in the cotton production process. Wherever it is implemented and monitored, the CmiA-standard provides retailers and consumers with the assurance that the cotton in the textiles and garments in question has been produced in line with CmiA-requirements. Up to now, about one million smallholder households with six to seven million family members in Africa produce under the label. This Policy Brief reflects on the impact that the introduction of CmiA has had on certified farmers, as well as on the challenges facing this standard following its successful market launch, and draws broader lessons learned for sustainability standards. The key findings are as follows: • CmiA shows that sustainability standards do not only work for high-priced niche markets but can also be implemented in the mass market. • While cotton is a non-food cash crop, the revenues it generates can boost food security among smallholders via the income channel and can also promote local food production through a number of other impact channels. • Standard-setting must be accompanied by support for farmers so that they are able to comply and activate impact channels. It remains a huge challenge not only to guarantee social and ecological standards but also to achieve a “living income” for smallholder farmers. • For all the benefits of publicly funding the start-up phase of implementing sustainability standards, it must be ensured that these standards are subsequently financed from the value chain itself. Textile retailers and consumers ultimately have to pay for the goods they consume and which have been manufactured under sustainable conditions. • As the mass-market implementation of sustainability standards takes time and patience, we cannot expect to see dramatic improvements in the local living conditions and incomes of the farmers in the short to medium term. Instead, this will require continuous investment in smallholder production and in the local environments over many years. • Transitioning from pesticide-intensive production to a system that does not use such products without major productivity losses is challenging but seems feasible. • In order to determine whether, and to what extent, the wellbeing of smallholder farmers is increased by complying with sustainability standards, good and continuous impact assessment is needed and this must be adapted to the especially complex conditions of African smallholder agriculture.
Topic:
Development, Sustainability, Production, Consumption, and Cotton
Political Geography:
Africa

48. Implementation of the WTO Investment Facilitation for Development Agreement: Identification of Reform Needs and Development Policy Measures

Author:
Axel Berger, Ann Margret Bolmer, Florian Gitt, Zoryana Olekseyuk, and Marius Metz
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
More than 110 Members of the World Trade Organization (WTO), many of them developing countries and least-developed countries (LDCs), are negotiating a plurilateral Agreement on Investment Facilitation for Development (IFD). In contract to existing bilateral investment treaties that establish sweeping rules on investment protection and liberalisation, the IFD Agreement aims at increasing the transparency, predictability and efficiency of investment frameworks as well as improving inter-governmental coordination and international cooperation on investment matters. In view of the fact that WTO Members aim at concluding the negotiations by mid-2023, discussions are under way on how the IFD Agreement can successfully be implemented in developing countries, and LDCs in particular. The IFD Agreement includes a comprehensive section on Special and Differential Treatment, which grants developing countries and LDCs longer timeframes as well as technical assistance and capacity development to support implementation. The Agreement also foresees so-called needs assessments at the country level to evaluate countries’ readiness and support needs to implement the IFD Agreement. While such needs assessments have been extensively used in the context of the WTO Trade Facilitation Agreement (TFA), we lack insights into how such needs assessments can be operationalised in the context of investment facilitation and what kind of imple¬mentation challenges are prevalent, in particular in LDCs. To assess implementation gaps, barriers to successful implementation as well as national and international support actions, we conducted pilot needs assessments covering a selected group of IFD Agreement measures with a broad range of stakeholders in three LDCs, namely Lao People’s Democratic Republic (Lao PDR), Togo and Zambia. Our pilots indicate that 13 selected provisions of the IFD Agreement have not been sufficiently implemented across the three LDCs. In particular, 64 per cent of analysed provisions have only partially been implement, while the rest have not been implemented at all. These findings underline that, in order to benefit from the IFD Agreement, LDCs need substantial implementation support from the international community. The most striking, commonly identified barriers hindering the full implementation are lack of cooperation and coordination among investment-competent agencies, poor information management for investors as well as limited digitalisation and automatisation. To overcome these barriers, nationally identified actions may focus mainly on the creation of a single information portal for foreign investors and a single-window system to improve authorisation procedures, as well as a clarification of mandates and functions of relevant ministries and institutions. Our research also underlines the importance of a whole-of-government and multi-stakeholder approach. The establishment of a National Investment Facilitation Committee may prove to be an effective instrument to ensure coordination and communication between involved stakeholders. International support should complement national actions with technical assistance and capacity development in investment-related topics, improving information and communication technology (ICT) infrastructures and digitalised processes, as well as fostering the international exchange of best practices. Our pilot needs assessments emphasise that the WTO Secretariat and the negotiating Members should strengthen outreach activities to promote knowledge about the WTO IFD Agreement among national-level stakeholders. In general, our pilots underline that needs assessments are an important instrument for identifying persistent implementation gaps and tailoring technical assistance and capacity development to the demands of Members, especially LDCs.
Topic:
Development, Reform, Investment, WTO, and Development Policy
Political Geography:
Global Focus

49. The BEPS Project: Achievements and Remaining Challenges

Author:
Sabine Laudage Teles
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The Base Erosion and Profit Shifting (BEPS) Project of the Organisation for Economic Co-operation and Development (OECD) and the G20 aims to reduce harmful tax avoidance and evasion by multinational enterprises (MNEs), which creates large losses in governments’ revenues. In times of multiple crises, many governments urgently seek additional revenue sources to finance public expenditures for sustainable development. In particular, many low- and lower-middle-income countries have tax-to-GDP ratios of less than 15 per cent, which is insufficient to provide basic public goods such as health, education and infrastructure for their populations. This policy brief evaluates the achievements and remaining challenges of the BEPS Project to mobilise more domestic revenues, in particular in low- and middle-income countries (LMICs). After the financial crisis of 2009, the G20 mandated the OECD with the design and implementation of the BEPS Project. The goal was to identify and tackle the most pressing issues that led to the erosion of corporate tax bases in their member countries. A key issue is the phenomenon that MNEs avoid large amounts of tax by shifting their profits from affiliates in high-tax countries to affiliates in low-tax countries. In 2013, the OECD presented its 15-point agenda to tackle BEPS in OECD member states. However, global tax avoidance and profit shifting can only be effectively addressed if a large number of countries is on board. Thus, in 2016, the Project opened for non-OECD/G20 countries to join the Inclusive Framework on BEPS and the implementation process of the BEPS Action Plan. However, tax administrations of many LMICs complain about the highly complex rules designed under the BEPS Action Plan that are not adapted to their context-specific capacities and needs. Today, the Inclusive Framework on BEPS has 145 member countries, and the implementation of the BEPS Action Plan is almost finished. Preliminary academic evidence shows that the overall impact of the BEPS Project in reducing global tax avoidance and profit shifting is indeed limited. According to recent estimates, tax revenue losses due to profit shifting even increased from 9 to 10 per cent in the first years when anti-BEPS measures were implemented (see Wier & Zucman, 2022). Since there is no counterfactual world in which the BEPS Project did not take place, we can only assume that tax avoidance would have increased even more in the absence of the Project. However, the BEPS Project is still considered the biggest overhaul of global tax rules since the last century. Positive achievements include increased awareness of MNEs’ profit shifting behaviour, as well as the agreement on a global minimum tax.
Topic:
Development, G20, Tax Systems, and OECD
Political Geography:
Global Focus

50. Relational Contracts in the Rwandan Coffee Chain

Author:
Kasper Vrolijk
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Businesses often engage in long-term relationships with firms and people they trust and know, in which they informally sell and exchange information and services (Baker, Gibbons, & Murphy, 2002). As postulated by Arrow (1972, p. 357), “virtually every commercial trans-action has within itself an element of trust”. Within these relations, trust is defined as the belief that market actors adhere to informal contract arrangements. Particularly in lower-income countries, which are often described by distortions – such as inefficient institutions (e.g., contract enforcement), imperfect markets (e.g., access to credit), and market distortions created by firms (e.g., lobbying) (Atkin & Khandelwal, 2020) – such relational contracts are important for commercial interactions locally and internationally and are an important complement to formal contracts. In low-income economies, how are relational contracts used to foster economic activity? What policy measures can be used to aid trust-based relational contracts, or to address its inefficiencies? This Policy Brief presents the results from a study on the Rwandan coffee chain, which surveyed coffee mills, farmers and exporters on their performance and relational contracts. The main findings are that relational contracts are an important component at two levels of the chain: (a) between cooperatives, washing stations and mills, and its members, and (b) between mills and buyers. Mills, for example, offer informal provisions to its farmers to ensure timely delivery of high-quality beans. Exporters and mills invest in trust-based relationships with buyers by spending on getting market access and productivity-increasing activities (e.g., investing in new machinery) in anticipation of future buyer demand and prior to formal contracting. Buyers likewise invest in creating and maintaining relational contracts to local firms by providing informal technical and financial support. With the exception of certification programmes, few of the activities that both mills and buyers undertake are formally enforced through contracts but instead are done at the discretion of producers and buyers. Such informal relations are important and necessary because in low-income countries there can be market risks (e.g., limited access to inputs for farmers) that, if not addressed, affect the coffee supply and quality. The coffee sector in Rwanda is to a large extent com-parable to the coffee sector in other countries and other agricultural supply chains in low-income countries (like labour- and quality-intensive products, such as tea and cocoa). Therefore, this study may offer some valuable lessons to policy makers: 1. Promote brokerage services to support trust-based relationships between local firms and international buyers. Brokerage services include programmes (either by governments of international organisations) that bring together and facilitate buyer-supplier linkages. These services have proven successful in creating long-term buyer-supplier relationships, while also facilitating financial and technical support for local firms and market access. There is a role for both international organisations and national governments to provide financing or facilitate such services. 2. Use certification to formalise quality upgrading and market access. Certification programmes include credible, internationally recognised standards and evaluation protocols that are used across multiple commodities. Certification can help formalise some of the quality upgrading and market access activities that firms and farmers otherwise would receive informally through relational contracts. There are roles for national governments to promote and subsidise certification practices and for international organisations and certification providers to expand such services.
Topic:
Development, Markets, Business, and Contracts
Political Geography:
Africa and Rwanda