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1. 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

2. 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

3. Expanding Legal Migration Pathways from Nigeria to Europe: From Brain Drain to Brain Gain

Author:
Samik Adhikari, Michael Clemens, Helen Dempster, and Nkechi Linda Ekeator
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The youth population within Nigeria is rapidly increasing, but despite their high levels of education and skills, many are struggling to find meaningful work opportunities at home. At the same time, Europe’s working-age population is declining, resulting in employers in these countries facing large and persistent skill shortages within a range of mid-skill professions. Despite the large benefits that facilitating migration between Nigeria and Europe could bring, and despite the overtures of both European governments and the European Union, few mutually beneficial migration partnerships exist. This report, a joint production between the World Bank and the Center for Global Development (CGD), outlines how the Global Skill Partnership model could be used to meet needs on both sides. It explores the growing youth unemployment rate in Nigeria, the increasing emigration pressure, and the structures that have been set up to manage this movement. It also explores the large skill shortages persistent within Europe, its migration management relationship with Africa, and the potential positive impacts of opening new legal migration pathways. It creates a framework with which to explore potential sectors and partner countries for the implementation of the Global Skill Partnership model, providing practical steps that governments can follow. And finally, it applies this framework to three sectors and partner countries: a health care partnership between Nigeria and the UK, a construction partnership between Nigeria and Germany, and an information and communications technology (ICT) partnership with various European states.
Topic:
International Cooperation, Labor Issues, Intellectual History, Immigration Policy, and Migrants
Political Geography:
Africa, Europe, and Nigeria

4. A Post-Brexit Trade Policy for Development and a More Integrated Africa

Author:
Kimberly Ann Elliott
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
The United Kingdom will confirm its departure from the European Union on 31st January 2020. As part of its independent trade policy, the government has committed to improve access to UK mar- kets for the poorest countries. This note sets out three ways it can do so: expanding duty-free market access while avoiding piecemeal trade agreements that undermine Africa’s own trade integration ef- forts; using an alternative framework for those trade agreements it does negotiate with developing countries; and supporting a “back-to-basics” multilateral negotiation at the World Trade Organiza- tion that could help to rebuild confidence in that institution and thus protect the interests of small and vulnerable countries. After a brief review of the background and context, it sets out specific pro- posals in each of these areas.
Topic:
Development, International Cooperation, International Trade and Finance, European Union, and Brexit
Political Geography:
Africa, United Kingdom, and Europe

5. Building an EU-Africa Partnership of Equals: A Roadmap for the New European Leadership

Author:
Anita Kappeli
Publication Date:
09-2019
Content Type:
Special Report
Institution:
Center for Global Development
Abstract:
The arrival of a new leadership team in Brussels provides an opportunity for Europe to reinvigorate its role as a global development power and to build a true partnership with its continental neighbour, Africa. These tasks have never been more urgent. With only 10 years to go, the world is far from achieving the Sustainable Development Goals (SDGs) by 2030. A confluence of well-documented global trends, including accelerating climate change, declining multilateralism, and the erosion of democratic norms, is only increasing the challenge.
Topic:
Development, Diplomacy, International Cooperation, European Union, Sustainability, and African Union
Political Geography:
Africa and Europe

6. When Does “What Works” Work? And What Does that Mean for UK Aid R&D Spend?

Author:
Charles Kenny, Euan Ritchie, and G. Lee Robinson
Publication Date:
10-2019
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
The UK’s Secretary of State for International Development[1] oversees an aid-financed R&D[2] budget that is larger than that of the next 15 biggest donors combined. [3] At the moment, a considerable proportion of that UK R&D spend goes towards solving global technological challenges related to neglected tropical diseases including malaria, and a considerable proportion again towards local evaluation of aid-financed development interventions. Much of the rest is somewhat opaquely distributed to British universities for research supposedly related to development. As well as reform of this last category, the range of more legitimate activities benefiting from ODA “research and development” calls for innovation in approaches to deliver outcomes. This paper will argue there is a (fuzzy) spectrum of development procedures, for some of which global innovation, evaluation, or “best practice” can be informative, for some of which local evaluation or experimentation can be useful, and for some of which perhaps only practical experience and local wisdom can help. That there is a spectrum of intervention types and research opportunities, and that local evidence is often required, has implications for the kind of research that UK aid can usefully support as part of its R&D program and where that research should happen. In turn, that suggests a reform agenda for the way UK ODA for R&D is currently spent.
Topic:
Development, International Cooperation, Foreign Aid, and Research
Political Geography:
United Kingdom and Europe

7. Redesigning the External Investment Plan to be a Game-Changer for Africa

Author:
Mikaela Gavas
Publication Date:
10-2019
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
Despite their potential to achieve high development impact, projects in the poorest and most fragile countries, most in sub-Saharan Africa, are chronically underfinanced by Euro- pean development finance institutions and private investors owing to real or perceived low risk-adjusted returns. The External Investment Plan and its risk-mitigation tools, if struc- tured right, have the potential to mobilise investment where the need is greatest. To make this happen, the new European Commission should n clarify the strategic objectives of external investment and steer it towards leveraging high-risk capital for underserved markets; n explicitly focus assistance on the poorest countries through clear project selection criteria; n provide demand-driven technical assistance and oper- ationalise policy dialogue to improve the business envi- ronment; and n federate the development finance institutions focusing on steering policy, encouraging best practice, and har- monising procedures and results amongst the develop- ment finance institutions and multilateral development banks.
Topic:
Diplomacy, International Cooperation, European Union, and Investment
Political Geography:
Africa, Europe, and Sub-Saharan Africa

8. Reforming EU Trade Policy to Accelerate Economic Transformation in Africa

Author:
Hannah Timmis and Ian Mitchell
Publication Date:
10-2019
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
As the rest of the developing world has reaped the benefits of rapid globalisation, Africa has remained marginalised in international trade. The new European Commission has an opportunity to accelerate export-led growth on the continent by introducing a bolder, more coherent policy on trade, agriculture, and aid.
Topic:
Development, Diplomacy, International Cooperation, European Union, Economic Development, and Economic Transformation
Political Geography:
Africa and Europe

9. A Smoother Trade Transition for Graduating LDCs

Author:
Kimberly Ann Elliott
Publication Date:
11-2019
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
For nearly 50 years, the world’s “least developed countries” have received extra financial support and preferential trade treatment to help them grow and develop. In the first three decades after the Unit- ed Nations (UN) created the LDC category in 1971, only one country—diamond-rich Botswana—out- grew that status. Since then, four more countries have graduated, and the pace is set to accelerate over the coming decade. Moreover, the countries approaching graduation in the next decade will pose different adjustment challenges than those that preceded them. When a country successfully graduates, it loses access to the special finance and trade programs that come with LDC status. In the case of trade, that can mean the graduating country’s exporters sudden- ly face the higher tariffs that their more advanced competitors face, so-called most-favored nation (MFN) tariffs. Even if these countries remain eligible for the Generalized System of Preferences (GSP) that is available to developing countries, those programs are typically much less generous than the duty-free, quota-free market access that most advanced economies provide for LDCs.1 Moreover, out- side the European Union (EU), few countries provide transition measures for graduating LDCs (see Annex A). Nor does there appear to be much planning to prepare for the coming wave of graduations. The United Kingdom has already committed to provide barrier-free market access for LDCs, similar to the EU’s Everything But Arms (EBA) program.2 But British policymakers have a unique opportunity to improve on that model as part of post-Brexit trade and development planning, including to ad- dress the coming wave of graduations. And if the UK remains in the customs union, it can work with EU policymakers to improve the graduation process as part of the review of the GSP regulation that expires in 2023.
Topic:
Development, International Cooperation, European Union, Trade, and Transition
Political Geography:
Europe and Global Focus

10. UK Aid Quality Indicators

Author:
Caitlin McKee, Ian Mitchell, and Arthur Baker
Publication Date:
12-2018
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper discusses the United Kingdom’s foreign aid quality based on an updated assessment of the Quality of Official Development Assistance (QuODA) published by the Center for Global Development. QuODA uses 24 quantitative indicators based on how aid is given, grouped into four themes: maximizing efficiency, fostering institutions, reducing the burden on recipient countries, and transparency and learning. These are based on principles which donor and recipient countries agreed to in a series of high-level meetings on aid effectiveness. We find UK aid quality has decreased from 2012 to 2016 and now ranks 15th out of the 27 countries assessed. The quality of its multilateral aid is relatively strong with significant contributions to EU institutions who score in the top half of multilateral agencies, and well-above the UK’s bilateral aid. We analyse the UK’s bilateral aid in detail, identifying areas of relative strength but also four recommendations for the UK Government to improve aid effectiveness
Topic:
Development, International Cooperation, Foreign Aid, and Multilateralism
Political Geography:
United Kingdom and Europe