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Begin New Search Topic International Cooperation Content Type Working Paper Publishing Institution Center for Global Development Publication Year within 5 Years

1. Climate Finance Effectiveness: Six Challenging Trends

Author:
Beata Cichocka and Ian Mitchell
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper identifies and explores a number of challenges in using international public climate finance effectively towards contributing to low-carbon and resilient growth in lower- and middle-income countries. We explore key quantitative and qualitative trends in the climate finance architecture, including predictability of disbursements, affordability and concessionality of funding, provider proliferation and project fragmentation, implementation via modalities supporting recipient ownership, and the degree to which climate-related interventions are evaluated. Our research considers these trends against globally agreed principles of development effectiveness, with the aim of improving understandings of both the common and the climate-specific challenges within development finance. Ultimately, we find that climate-related development finance faces a number of challenges relative to other official development flows, including significantly lower disbursement ratios, a higher share of finance provided through debt instruments—and a rising share of loans to lower-income countries assessed as being at high risk of debt distress, a faster pace in proliferation of providers and shrinking project sizes, and fewer efforts to systematically evaluate impacts of interventions. Each of these areas will need to be tackled by public climate finance providers to ensure that the available funding is used towards climate objectives effectively. These and other issues related to the quality of climate finance should also be considered during the design of the new quantitative climate finance target under the UNFCCC to ensure that the structure of the goal promotes accountability and increases recipients’ ability to trust in the climate finance architecture.
Topic:
Climate Change, Environment, International Cooperation, and Resilience
Political Geography:
Global Focus

2. A Global Development Paradigm for a World in Crisis

Author:
Rachael Calleja, Beata Cichocka, Mikaela Gavas, and Samuel Pleeck
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper explores how and whether responses to COVID-19, particularly from non-DAC actors, have deepened the transition from an “international” to a “global” development paradigm, and it considers implications for the future of development cooperation. To do so, we map international responses to COVID-19—financial and beyond—to understand the changing nature of development challenges and cooperation as well as the growing role of non-DAC actors as part of this shift. Our analysis shows that while a diversity of actors contributed to international COVID-19 responses, the transition towards a global development paradigm has yet to materialize. Instead, responses to COVID-19 demonstrated clear tensions between the imperative for collaboration and the national interest, with the latter trumping the former.
Topic:
Development, International Cooperation, Pandemic, and COVID-19
Political Geography:
Global Focus

3. What’s the Best Way to Bolster the IMF’s Capacity to Lend to Low-Income Countries?

Author:
David Andrews
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The IMF’s concessional lending to low-income countries through its Poverty Reduction and Growth Trust (PRGT) has risen dramatically since the start of the pandemic and demand for the PRGT resources is expected to remain above pre-pandemic levels for quite some time. But the surge in lending has strained the PRGT's finances—loan resources have dwindled, subsidy costs have risen sharply, and reserves need bolstering. Projections show the risks to PRGT financing are accentuated given the Russian invasion of Ukraine and rising global interest rates. A multi-pronged decade-long effort is needed to ensure sound PRGT financing: (1) reinforce current fundraising efforts for loan and subsidy resources; (2) promote the use of the PRGT's deposit investment account; (3) terminate the reimbursement of PRGT administrative resources to the IMF's General Resources Account and (4) begin a discussion on IMF gold sales to take place in the out years. Each prong of the effort should start immediately, given the time lags involved in reaching consensus and implementation.
Topic:
Development, International Cooperation, Finance, and IMF
Political Geography:
Global Focus

4. The IMF, Africa, and Climate Change—Making Sense of an Implausible Trilogy

Author:
Daniel Citrin and Daouda Sembene
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Evidence suggests that Africa is the most vulnerable continent to climate change. While African countries contribute relatively little to global emissions, they remain significantly vulnerable to the devastating economic effects of this phenomenon. This paper reviews IMF activities and explores how best the IMF could support efforts by African countries to cope with macroeconomic policy and structural challenges associated with climate change. To this end, while recognizing the relative significance of the overall IMF contribution to addressing this global challenge, we make several recommendations about potential ways to strengthen the role of IMF surveillance, capacity development and financing. First, IMF staff should ensure that policy advice in the context of global, regional and country surveillance fit specific circumstances and institutional capacity of African countries as well as their economic vulnerabilities to climate change. To enable timely response to climate-related crises, staff teams should also be prepared to provide advice on a flexible basis, without being tied to formal periodic work schedules. Additionally, the IMF could facilitate adaptation and mitigation by engaging in intensive outreach activities about the economic impact of climate change. Second, there is merit in developing comprehensive IMF capacity development strategies in close collaboration with the authorities in climate-vulnerable countries. For effective implementation, the IMF will need to identify and actively seek adequate financing for capacity development activities on climate issues. Finally, while the Resilience and Sustainability Trust (RST) is a welcome addition to the IMF toolkit and represents a potentially significant source of financing for some sub-Saharan African countries, specific amendments could be considered notably with a view to limiting the potential cost for low-income borrowers to access its resources. Moreover, successful operationalization of the RST hinges on careful and flexible design of conditionality and how programs under the new facility will be linked to concurrent upper-credit tranche programs.
Topic:
Climate Change, International Cooperation, Finance, and IMF
Political Geography:
Africa

5. Development Effectiveness in the “New Normal”: What Do the Changing Roles and Purposes of ODA Mean for the Effectiveness Agenda?

Author:
Rachael Calleja and Beata Cichocka
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper explores how the roles and purposes of official development assistance (ODA) are changing and what these shifts mean for the future of the development effectiveness agenda. Using data obtained through a survey of officials working in development agencies and partner countries, this paper maps perspectives on the changing role and purposes of ODA as well as perceptions of the continued relevance of the effectiveness agenda and the Busan principles in this changing development landscape. Our results show that providers are increasingly prioritizing global challenges and private sector development as main purposes of ODA, and that the catalytic role of ODA is becoming increasingly important. In spite of substantive changes to the development landscape, survey respondents overwhelmingly thought that the current effectiveness agenda remains relevant – however, they also expressed the need to revise or renew the effectiveness principles to keep pace with changing demands. Working from our survey responses, we propose a basic framework for considering options for the future of the effectiveness agenda and conclude by proposing four possible paths forward.
Topic:
Security, Development, International Cooperation, and Development Assistance
Political Geography:
Global Focus

6. Country Platforms and Delivery of Global Public Goods

Author:
Daouda Sembene, Nancy Lee, and Mark Plant
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper discusses three potential requirements for country platforms to facilitate effective delivery of GPGs. We propose that existing country platforms be repurposed to coordinate the contribution of domestic and external stakeholders to GPG delivery efforts at the country level. For this proposed approach to be successful, an explicit link must be introduced between country-level efforts and global initiatives to provide GPGs. There is also merit in setting up country and global coordination mechanisms, with relevant agencies assigned to operate them both at the national and international levels. Using relevant country platforms, we suggest that international financial institutions (IFIs) such as the IMF and multilateral development banks (MDBs) be mandated with helping developing countries meet the financing needs associated with the provision of GPGs. In addition, technical support from the IFIs should be put on the table to improve the effectiveness of developing countries’ contribution to GPG delivery. In this regard, MDBs can and must play a central role in developing capacities in these countries as part of their own contribution to GPG delivery. At the same time, securing the contribution of civil society and the private sector to GPG delivery efforts is essential given the magnitude of potential financing needs.
Topic:
International Cooperation, Finance, Multilateralism, IMF, and Public Goods
Political Geography:
Global Focus

7. Two Birds, One Budget: Using ODA for Influence and Development in the Indo-Pacific?

Author:
Rachael Calleja, Sam Hughes, and Beata Cichocka
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper explores the UK’s proposed “Indo-Pacific tilt” from a development perspective. In light of recent cuts to the UK’s official development assistance (ODA), we ask how the UK can use scarce development resources in the Indo-Pacific more effectively to capitalise on opportunities to support strategic objectives while ensuring that ODA remains squarely focused on development priorities. Our analysis seeks to understand both how the UK is positioned within the Indo-Pacific, which is an already-crowded development landscape, as well as where the UK’s strategic and developmental priorities in the region might meaningfully overlap. We find that while there are some opportunities for the UK to support both development objectives and strategic interests concurrently in the Indo-Pacific—such as in the provision of regional and global public goods—the countries with the greatest strategic value to the UK are not those where additional ODA could contribute most clearly to poverty reduction. We conclude the paper with six policy recommendations. Among others, we propose that the UK should consider partnering with other like-minded providers to maximise its presence in the region.
Topic:
Development, International Cooperation, Infrastructure, and Influence
Political Geography:
United Kingdom, Europe, and Indo-Pacific

8. How Can Multilateral Organizations Strengthen Global Data Governance Practices? Roundtable Summary

Author:
Michael Pisa and Ugonma Nwankwo
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This brief is based on a roundtable hosted by CGD as part of the Governing Data for Development project, which explores how governments can use data to support innovation, development, and inclusive growth while protecting citizens and communities against harm. The views expressed here are those of the participants and do not necessarily represent the views of CGD staff. For other briefs in the series, as well as more on the project, visit cgdev.org/governing-data. Cross-border data flows are governed through a patchwork of complex, overlapping arrangements and trade agreements. The absence of a more systematic approach to data governance at the global level may make it harder for low- and middle-income countries to participate in the global digital economy and develop their own frameworks for governing the use of data in a responsible manner. It also leaves them with limited leverage in negotiations with both Big Tech companies and wealthier jurisdictions. This meeting is the third in a series of private roundtables convened by the Center for Global Development aimed at exploring the relationship between data governance and economic development. The first event examined whether current approaches to data protection and privacy are a good fit for resource-constrained countries. The second explored whether evolving digital trade rules support or hinder economic development. This third roundtable explored the role and limitations of multilaterals in promoting better data governance. This document summarizes key takeaways from the meeting, including the remarks of four keynote speakers and themes raised in a discussion among 30 experts, who are listed in the appendix. The roundtable was moderated by Pam Dixon, founder and executive director of the World Privacy Forum, and co-chair of the working group for CGD’s Governing Data for Development project.
Topic:
International Cooperation, Governance, Digital Economy, and Multilateralism
Political Geography:
Global Focus

9. Mapping China’s Multilateralism: A Data Survey of China’s Participation in Multilateral Development Institutions and Funds

Author:
Scott Morris, Rowan Rockafellow, and Sarah Rose
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
A considerable body of recent research attempts to shed light on China’s bilateral aid and finance flows, but there have been fewer efforts focused on China’s participation in multilateral development channels. As a result, China’s role across the landscape of multilateral institutions and funds is poorly understood, even as China has emerged as a leading donor within many of these entities. Part of China’s increased multilateral engagement reflects its economic growth, with shareholding and assessed contributions based largely on economic size. But the government of China’s policy choices are also revealed, in part, through its patterns of voluntary funding, cooperation agreements, and influence through personnel instated in leadership positions. By collating data on China’s financial and non-financial engagement with multilateral development banks and other financial institutions, sector-based vertical funds, and the development entities of the United Nations, among others, this paper seeks to provide a clear picture of China’s role in the multilateral development system and the evolution of that role over the past decade. This assessment brings to light the weight of China’s voting power across the multilateral development banks, the extent to which Chinese firms benefit from procurement opportunities in multilateral institutions, and the degree to which China has achieved a singular position of being a large-scale donor and recipient in the multilateral system.
Topic:
Development, International Cooperation, Hegemony, and Multilateralism
Political Geography:
China and Asia

10. Translating Results-Based Financing from Theory to Operational Reality: Lessons from the Practical Application of RBF at the European Commission

Author:
Rachel Silverman
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
esults-based financing (RBF) is one of several broad approaches to finance official development assistance (ODA) “that attempt[s] to connect at least a portion of payment to the verified achievement of results.” Despite some relatively high-profile programs and pilots—and broad interest and curiosity—RBF approaches have yet to penetrate the routine operations of large institutional grant- and contract-based funders, many of which are governed by complex bureaucracies, restrictive financial regulations, and deeply entrenched, risk-averse corporate cultures. The European Commission (EC) is one large and influential donor that has shown a long-standing interest in RBF approaches but is still in initial phases of implementation. Informed by a research partnership between the Center for Global Development (CGD) and EC Commission Directorate-General for International Partnerships (INTPA), this Policy Paper reflects on the experience and lessons learned in attempting to operationalize RBF at scale within a large funder of ODA, with important implications for the broader international development community. Starting at the macro level, it considers the institutional prerequisites for adoption of RBF within a donor agency—in this case, the European Commission/INTPA. It then zooms into the project-level design and negotiation process, including the choice of implementing partner (in this case a United Nations agency) and political and technical stumbling blocks. It concludes with a discussion of remaining challenges for broader use.
Topic:
Development, International Cooperation, Regional Cooperation, and Finance
Political Geography:
Europe