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1. The New Development Bank’s Contribution to the Energy Transition Process in the BRICS Countries (2016-2023)

Author:
Maria Elena Rodriguez, Rafaela Mello Rodrigues de Sá, Octávio Henrique Alves Costa de Oliveira, and Renan Guimarães Canellas de Oliveira
Publication Date:
12-2026
Content Type:
Policy Brief
Institution:
BRICS Policy Center
Abstract:
Considering the growing relevance of the Multilateral Development Banks (MDBs) in the task of financing the global energy transition process, it is important to understand the efforts of these institutions to establish projects aimed at reducing carbon emissions in the most diverse sectors of the economy, and especially in the energy sector. This document looks specifically at the role that the New Development Bank (NDB) plays in this process, presenting an overview of its loan portfolio and targets in terms of contributions to the energy transition process. The NDB, also known as the BRICS Bank, stands out in its institutional strategies in the area of Clean Energy, one of its operational objectives, setting a target for the year 2026 of directing 40% of all its financing to projects aimed at climate change, including operations that contribute to the energy transition (NDB, 2022a, p. 28).
Topic:
Development, Banks, BRICS, Energy Transition, and Multilateral Development Banks (MDBs)
Political Geography:
Russia, China, Iran, Indonesia, India, South Africa, Brazil, Ethiopia, Egypt, and United Arab Emirates

2. Asia’s Growing Global Influence: A Study of India’s Africa Policy

Author:
Hamdy A. Hassan
Publication Date:
09-2025
Content Type:
Journal Article
Journal:
Brazilian Journal of African Studies
Institution:
Brazilian Journal of African Studies
Abstract:
The 21st century could become an Asian and African century, which will result in a radical global transformation of the world. Thus, the past decade has witnessed a large Asian presence in Africa, especially, China, India, Japan, and South Korea. Not surprisingly that the rise of Asia in global politics has worried the traditional Western powers. Analyzing contemporary Asian approaches to Africa should be performed through their historical contexts, in particular the history of competition and rivalry between Asian rising powers. It is no secret that this point has not been adequately addres-sed in previous studies on African-Asian relations (Iwata 2019). This state of rivalry is reflected in the African policies of major Asian countries. For example, the Sino-Indian conflict and the Sino-Japanese conflict, in addition to the Taiwan issue, have definitely affected these countries’ interactions with Africa. In contrast to European policies towards Africa after the founding of the European Union, there is no consensus framework for Asian international relations. The experience of struggle against colonialism and engagement in the Non-Aligned Movement represented the most prominent components of the mutual relations between Asia and Africa, especially since the Ban-dung Conference in 1955 (Adem 2017). When the Cold War ended, Asian countries began to achieve high and rapid rates of economic development. Hence, the Asian countries that previously received development aid have become among the most important international donors. This means that the concept of “donor powers” has undergone a major change that it is not limited to Western industrialized countries (including Japan). Perhaps all of this requires studying and analyzing Asian-African relations.
Topic:
Foreign Policy, Development, Global South, Donors, and Foreign Influence
Political Geography:
Africa and India

3. What Does It Mean for Agencies to Be Effective in a Changing Development Landscape?

Author:
Rachael Calleja, Sara Casadevall Bellés, and Beata Cichocka
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
For official bilateral development agencies, the realities of providing effective development cooperation are increasingly complex, as competing demands and changing international and domestic contexts are raising fundamental questions around what it means to be an effective agency. This paper explores the concept of agency effectiveness to demonstrate why agencies – and their leadership – should consider how their structures and processes interact with the changing landscape as part of their efforts to remain relevant and resilient. To do so, we consider how the current challenges facing agencies – including the need to respond to climate change, global instability, and changing domestic political environments – affect why agencies act, what they do, and how they do it. We then explore dominant understandings of agency effectiveness, which provide a lens for thinking about what it may mean for agencies to be effective in the years ahead. Overall, we suggest that the challenges facing development agencies in the changing landscape raise key issues for agencies to consider, particularly around what they prioritise, how they are structured, and the capabilities or ways of working needed to respond to complex demands. While there is unlikely to be a single approach for agencies looking to adapt to changing contexts, considering the implications of new – and future – pressures for the work of development agencies will be a necessary first step towards supporting their resilience and relevance in the years ahead.
Topic:
Development, Humanitarian Aid, and Economic Development
Political Geography:
Global Focus

4. The Future of Official Development Assistance: Incremental Improvements or Radical Reform?

Author:
Masood Ahmed, Rachael Calleja, and Pierre Jacquet
Publication Date:
01-2025
Content Type:
Special Report
Institution:
Center for Global Development (CGD)
Abstract:
Over the last decade, donor country governments have faced new and additional demands for financing international challenges, including providing global public goods (GPGs) and addressing historically high numbers of refugees and humanitarian crises. They have partly done so by re-allocating their official development assistance (ODA) away from its original aim: to support poverty reduction and growth in developing countries. This has led to questions about the integrity and credibility of ODA. These questions are only likely to grow more pertinent in the coming decade because the pressures on ODA—and on public finances more broadly—are here to stay. ODA budgets are being cut in a number of traditional donor countries and what remains is increasingly being deployed to meet emerging needs beyond traditional development and to reflect a more national security perspective on development cooperation. The time is right, therefore, to ask whether the concept and accounting for ODA need to be modified to ensure that the needy and vulnerable it was designed to serve continue to be protected in the face of fiscal constraints and changing geopolitical circumstances. This report, a compendium on the future of ODA, aims to provide fresh thinking and inspire the action needed for ODA to remain relevant and effective. It brings together reflections and proposals from leading experts and practitioners, including the under-secretary-general and executive director of UNOPS to a former DAC chair, to inform policymakers. In this executive summary, we will introduce the key arguments from the compendium contributors. The contributions are organised into four key areas of discussion that reflect the main themes raised in this compendium: the rationale for ODA reform, the political and institutional realities shaping reform, using ODA for climate and leveraging private finance, and forward-looking proposals for reimagining ODA’s role and purpose.
Topic:
Development, Finance, Humanitarian Crisis, Donors, and Foreign Assistance
Political Geography:
Global Focus

5. Planned Relocation of Climate-Vulnerable Communities: Preparing Multilateral Development Banks

Author:
Steven Goldfinch and Samuel Huckstep
Publication Date:
02-2025
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
Planned relocation of highly climate-vulnerable communities is becoming increasingly necessary as climate shocks become more frequent and intense. It is also becoming more feasible as modelling of future scenarios improves and adaptation limits become clearer. Despite this, many governments are underprepared for planning and implementing planned relocation projects. In the absence of an intergovernmentally agreed framework or set of principles on planned relocation, development finance, and specifically climate finance, is not well positioned to respond to this emerging demand from countries. This is heightened by a widespread absence of coherent domestic policies, and by institutional gaps in international assistance. Multilateral development banks, in particular, could be well-placed to fill this gap. They have extensive experience in undertaking relocation projects, including in contexts of climate adaptation. Multilateral development banks will increasingly field borrower country demand for both technical and financial assistance. They are, however, not yet prepared to meet this demand, nor are countries adequately equipped to make applications for support. This paper outlines emerging public policy regarding planned relocation, draws from existing standards on development-forced displacement and resettlement, and explores entry points for development financiers in providing technical assistance and finance. The paper proposes recommendations to multilateral development banks and the global climate funds on engaging in this emerging area.
Topic:
Climate Change, Development, Refugees, Displacement, Resettlement, and Banking
Political Geography:
Global Focus

6. The Mattei Plan One Year On

Author:
Filippo Simonelli
Publication Date:
02-2025
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
On 28-29 January 2024, the Italian Senate hosted the Italy-Africa Summit, bringing together 21 heads of state and government from African countries, along with other representatives of African, European and global organisations. The African representatives were gathered by the announcement that Prime Minister Giorgia Meloni would publicly present the Mattei Plan, a project with which the Italian government wants to redesign relations with the continent based on “equal-to-equal” collaboration. A year later, it is possible to take a first stock of announcements, projects and weaknesses that have emerged so far.
Topic:
Foreign Policy, Development, Public-Private Partnership, Collaboration, and Mattei Plan
Political Geography:
Africa, Italy, and North America

7. Building Ambition in the Run-up to Belém: Italy’s G7 Presidency on Climate and Energy

Author:
Margherita Bianchi and Chiara Scissa
Publication Date:
02-2025
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
A main priority of the 2024 Italian G7 presidency was to build stronger partnerships with African countries across a number of policy areas, including climate and energy. Italy pushed forward several G7 initiatives to tackle the adverse effects of climate change and resource scarcity in developing regions as well as to enhance energy access in Africa. Despite the relevance of these pledges, it is still unclear how these initiatives can align with, and maximise the impact of, existing climate- and energy-related projects set out in other fora. Still, the Italian G7 was successful in shedding light on the need for stronger intersectionality in G7 processes – finance, climate, infrastructure, food – and in advancing synergies with parallel G20 and climate conferences of the parties (COP) discussions. Canada, South Africa and Brazil, respectively holding the 2025 G7, G20 and COP30 Presidencies, can build on the lesson of the Italian G7 presidency, especially in light of the decreasing attention that major powers such as the United States are paying to multilateral governance regimes.
Topic:
Climate Change, Development, G20, G7, and Energy
Political Geography:
Africa and Italy

8. A silver lining? The US aid freeze should spur Nigeria to greater self-reliance

Author:
Julia Bello-Schunemann
Publication Date:
03-2025
Content Type:
Policy Brief
Institution:
Good Governance Africa (GGA)
Abstract:
Foreign aid has never been the solution to Nigeria’s multiple development challenges. However, the halt to US development assistance1 and the de facto shutdown of the United States Agency for International Development (USAID) will cause additional hardship for Nigeria’s most vulnerable. Modelling based on the International Futures model (IFs)2 , a forecasting platform housed at the University of Denver, suggests that the decision could push approximately 700 000 additional Nigerians into extreme poverty by 2030. The health sector is disproportionately affected by the freeze as it depends excessively on US aid, primarily for the fight against HIV/AIDS and other infectious diseases. Nigeria is one of 10 countries globally that are most reliant on US funding3 for HIV medicines. The US policy shift is a wake-up call for the Tinubu administration to rise to the task of mobilising domestic funds to provide essential services to the population.
Topic:
Development, Foreign Aid, USAID, and Health Sector
Political Geography:
Africa, North America, Nigeria, and United States of America

9. IMF, Structural Adjustment, and Poverty: A Cross-National Difference-in-Differences Analysis, 1980-2018

Author:
Shih-Yen Pan, Lawrence P. King, and Elias Nosrati
Publication Date:
01-2025
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
The International Monetary Fund (IMF) has been one of the world’s most powerful international organizations in setting the parameters for economic reforms in the developing world. In this study, using data from 1980-2018 from 57 countries, we test competing hypotheses surrounding the impact of the IMF’s lending programs on poverty incidence in participant countries. Departing from the prevailing practice of relying on instrumental variables, we employ a novel difference-in-differences approach that ensures clean comparisons between “treatment” and “control” units based on their program participation histories. Besides providing a quantitative estimate of the average program effect, we evaluate whether the IMF’s alleged anti-poverty focus in recent decades has made any difference. We find that IMF program participation leads to large increases (3.6-5.7 percentage points) in the proportion of a country’s population living under the $3.65/day and $6.85/day international poverty lines (2017 PPP) and the countryspecific Societal Poverty Line. We also find that the poverty reduction measures incorporated by the IMF into its programs have not been effective in mitigating the poverty-increasing program effects. Overall, our findings show that IMF programs have been detrimental to the welfare of vulnerable populations in participant countries.
Topic:
Development, Economics, International Organization, and IMF
Political Geography:
Global Focus

10. The Distribution of Climate Finance among Annex-II Countries: A CBDR-RC Approach for Partial Funding of the Developing Countries

Author:
Shouvik Chakraborty
Publication Date:
01-2025
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Developing nations face the significant challenge of reconciling their efforts in climate change mitigation with the urgent need for financial resources to adapt to climate-related disasters, achieve sustainable development, and stabilize their economies. The financial requirements for addressing climate impacts span various sectors, including energy transition, energy efficiency, transportation, agriculture, forestry, other land use (AFOLU), and adaptation strategies. Estimates provided by reputable international organizations, such as the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), and the Intergovernmental Panel on Climate Change (IPCC), suggest that the annual global climate finance needs may range from $4.2 trillion to $5.7 trillion. Within this framework, the share allocated to developing countries is estimated to constitute approximately $1.9 trillion to $2.0 trillion annually, mainly to support mitigation efforts. It is widely acknowledged that developing countries are unlikely to meet these financial demands independently. Consequently, it is projected that around $1 trillion must be sourced from advanced economies, particularly the AnnexII countries. This paper introduces a methodology grounded in the principles of common but differentiated responsibility and respective capability (CBDR-RC). It facilitates a structured distribution of financing responsibilities among Annex II nations. The methodology incorporates the notion of historical responsibility, quantified as carbon debt, while also measuring capability through a balanced consideration of the wealth and gross domestic product (GDP) of the AnnexII countries. The analysis conducted reveals that the United States of America (USA) is required to contribute nearly half of the total financial obligations among the AnnexII countries, with the remaining funds to be apportioned among other nations within this group.
Topic:
Development, Finance, Climate Finance, and Burden Sharing
Political Geography:
Global Focus

11. Understanding the Impact of Remittances on Mexico’s Economy and Safeguarding Their Future Impact

Author:
Ryan C. Berg, Rubi Bledsoe, and Michael Ferguson
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Beyond providing supplemental income for Mexican households, remittances—funds sent by migrants to friends and families in their home country—provide a stable flow of developmental finance to the poorest subregions of the country, which have not historically benefited from international capital flows, such as development aid or foreign direct investment. Mexico, the world’s second-largest recipient of remittances, has seen a steady increase in the total volume of remittances received, primarily due to the strength of the U.S. labor market and concurrent wage growth among Mexican workers in the United States. Mechanisms to keep remittances secure are not impermeable to criminal organizations, which have been known to use small-increment deposits to launder gains from illicit economic activity, including drug trafficking. However, through increased U.S.-Mexico cooperation, both countries can strike the delicate balance between facilitating flows of remittances to promote development and financial inclusion and securing those funds from exploitation by illicit actors.
Topic:
Development, Economy, Trade, Economic Security, and Remittances
Political Geography:
North America and Mexico

12. Allocating international loss and damage finance through national climate funds: prospects for African LDCs

Author:
Mariya Aleksandrova, Washington Onyango Kanyangi, Assouhan Jonas Atchadé, Joanes Atela, and Charles Tonui
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The new loss and damage funding framework under the United Nations Framework Convention on Climate Change (UNFCCC) emphasises the importance of channelling support through national systems and mechanisms. This approach could prove particularly challenging for African least developed ountries (LDCs), which have been prioritised for support. These countries remain confronted with major challenges to access and utilise international climate finance, especially through direct access. National climate funds (NCFs) can have a potential role in delivering international loss and damage finance to African LDCs that is in line with their national priorities. NCFs can be defined as entities mandated to finance the implementation of national climate strategies and to manage and/or coordinate domestic and international sources of climate finance. NCFs can enhance the institutional capacities of countries by supporting the development of loss and damage strategies, facilitating access to international funding, aligning resource allocation with local priorities, and ensuring the effective tracking of loss and damage finance. This Policy Brief explores the role of NCFs in the evolving global loss and damage finance architecture with a focus on African LDCs. We examine the design features of five NCFs against criteria for assessing their relevance to support measures that address loss and damage. The studied NCFs are: the Benin National Fund for Environment and Climate, Ethiopia’s Climate-Resilient Green Economy Facility, Burkina Faso’s Intervention Fund for the Environment, the Mali Climate Fund and the Rwanda Green Climate Fund. Key policy messages • Despite that only a limited number of African LDCs have established NCFs, these demonstrate their potential to channel loss and damage funding, especially for environmental rehabilitation and climate-resilient recovery efforts. Particular strengths relate to their role in priority sectors for climate change adaptation and in relation to biodiversity loss, drought, land degradation and desertification. • Existing NCFs in African LDCs have inadequate mandates and capacities to manage the complex funding needed for loss and damage. An emerging issue is their presently limited role in linking climate and disaster risk finance. • The NCFs of African LDCs can be instrumental to promote coherence and complementarity with other funding sources at the national level. Countries must establish comprehensive legislative, policy and regulatory frameworks to define the institutional roles of NCFs in loss and damage response, supported by international funding to strengthen their institutional capacities.
Topic:
Climate Change, Development, Climate Finance, and Sustainability
Political Geography:
Africa

13. Global health at a crossroads: policy recommendations in light of the Lancet Global Health 2050 Report

Author:
Christoph Strupat, Marco Schäferhoff, Martin Siegel, and Anna-Katharina Hornidge
Publication Date:
01-2025
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
At a time of global crisis and competing priorities, investing in health is among the most impactful and cost-effective decisions governments and stakeholders can make. Beyond being a fundamental right, health is a catalyst for growth, stability and resilience – particularly in uncertain times. The new Global Health 2050: the path to halving premature death by mid-century (Global Health 2050) report (Jamison et al., 2024) of the Lancet Commission on Investing in Health (the Commission) builds on a legacy of evidence-driven reports to provide strategies for making health a cross-cutting enabler of the Sustainable Development Goals (SDGs). Global Health 2050 provides a roadmap for further health improvements in all countries by mid-century, arguing that by 2050 countries can reduce by 50% the probability of premature death (PPD) in their populations. The Commission calls this goal “50 by 50”. Germany has solidified its role in global health through significant investments in the health sector and by designating global health as a political priority, as demonstrated by its Global Health Strategy and the inclusion of global health as one of the core themes of the Federal Ministry for Economic Cooperation and Development (BMZ). Given this political priority, it is essential to assess the implications of the Global Health 2050 report for Germany’s global health agenda, especially as global health stands at a crossroads following the withdrawal of the United States (US) from the World Health Organization (WHO) and cuts to its global health programmes. Therefore, the aim of this policy brief is to build upon the Commission’s findings and draw from scientific evidence to provide key recommendations for Germany’s global health agenda. Five recommendations have been synthesised that align with Germany’s global health engagement and offer promising strategies to help achieve the 50 by 50 goal: 1. Sustain or ideally increase funding for the Gavi, The Vaccine Alliance, and the Global Fund to Fight AIDS, Tuberculosis and Malaria at the upcoming replenishment conferences and strengthen Germany’s global health leadership through strong bilateral support, investments in pandemic preparedness and response (PPR) and better interministerial coordination. 2. Reconsider non-communicable diseases (NCDs) in future strategic direction of German international cooperation by reducing financial and geo-graphical barriers to access to medicines and addressing key NCD risk factors. 3. Promote health taxes on tobacco, alcohol, and sugar-sweetened beverages that can serve as an effective strategy to improve public health and generate domestic revenue. 4. Increase funding for R&D in neglected diseases. Expand regional manufacturing, and enhance global health innovation coordination to strength-en global health security and reduce dependence on external supply chains. 5. Nepal serves as a good example of Germany’s bilateral health and social protection support: advancing the 50 by 50 goal could be achieved by strengthening national health insurance, addressing climate risks, expanding health taxes and enhancing pharmaceutical access through the Arrow mechanism.
Topic:
Development, Investment, Public Health, Global Health, and Disease
Political Geography:
Global Focus

14. Enhancing public works programmes: sustainable impact through participatory asset creation and digitalisation

Author:
Francesco Burchi and Tekalign Gutu Sakketa
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Public works programmes (PWPs) are widely used social protection instruments in low- and middle-income countries. Participants carry out temporary, labour-intensive works in exchange for cash or in-kind compensation. The available empirical evidence indicates that these programmes are usually effective in improving outcomes such as food security and earnings in the short term, but these positive effects rarely persist in the long term. Our knowledge of PWPs’ effectiveness is, however, incomplete as scholars have mostly examined programme impacts through the wage channel, largely neglecting the skill-development and, especially, the asset channels. PWP participants engage in the construction of assets, such as roads, check dams and sewage systems, that could provide important benefits for the whole community. Without assessing these effects, it is normal to arrive at the general (biased) conclusion that cash transfers (CTs) are always more cost-effective than PWPs. Moreover, the effectiveness of PWPs largely depends on programme design, implementation and context. Based on the existing empirical evidence and our recent fieldwork to analyse Malawi’s PWP, this policy brief provides the following policy recommendations for how to enhance the potential of these programmes. • Policy-makers should design PWPs to guarantee stable, reliable employment; set wages not higher than market levels but high enough to incentivise participation; ensure transparency in the targeting, possibly by involving communities and at the sametime avoiding elite capture; align the timing of work cycles with local agricultural calendars; and assign tasks in a way that reduces travel burdens,especially for women. • Policy-makers should promote active community participation in the identification and maintenance of the assets created through PWPs. Evidence points to the importance of community participation for the implementation of higher quality infrastructure and better long-term maintenance. Only in this way, can these assets provide sustainable benefits not just for programme participants, but for the entire community. Approaches like those used in Ethiopia and Malawi can serve as models to enhance active community participation in the programme cycle. • Digitalisation of PWPs (and social protection ingeneral) should be promoted as it offers great advantages, but specific measures should be adopted to avoid their negative consequences: 1. The construction of a digital registry of beneficiaries is a great tool to reach the intended beneficiaries and coordinate the various schemes. Development cooperation actors should provide technical support for the creation and updating of these databases, then leave them in the hands of national institutions. 2. The digitalisation of reporting systems for work activities is likely to improve the accuracy and efficiency of the information reported. To achieve this, it is essential to provide the “digitisers” withproper training. 3. It is important to move from physical cash payments to e-payments, but it is firstly necessary to ensure adequate digital literacy through training. Moreover, to compensate for the impossibility to interact with programme officials at the time of payment, PWPs should include complaint handling points, as is done in India.
Topic:
Development, Digitalization, Assets, and Social Protection
Political Geography:
Global Focus

15. Can guarantees effectively leverage financing for SMEs in low- and middle-income countries?

Author:
Bao-We-Wal Bambe
Publication Date:
01-2025
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Achieving the Sustainable Development Goals (SDGs) will require significant financing and investment, particularly as growing challenges from climate events highlight the insufficiency of public funds to meet the 2030 Agenda (World Economic Forum 2024). Private capital for low- and middle-income countries (LMICs) surged in recent years, with significant commitments from multilateral development banks (MDBs). However, the financing gap to achieve the SDGs remains sizable, highlighting the need for greater effort to mobilise much larger private capital for sustainable development. In recent years, guarantees have emerged as a key leveraging mechanism. They are designed to mitigate high investment risks to support private capital mobilisation in LMICs. However, despite some progress, guarantees are used sparingly, suggesting considerable scope for increasing their scale, as highlighted by the G20 Independent Expert Group (IEG). This Policy Brief examines whether guarantees can serve as an effective leveraging mechanism for small and medium-sized enterprises (SMEs) in low- and middle-income countries (LMICs). This is especially so because SMEs remain largely hampered by poor access to finance, despite their key role in providing jobs for the local population and contributing to economic growth. Moreover, in the face of climate change, SME adaptation requires new investments in climate-resistant technologies and clean energies, highlighting the need for additional financing amid severe constraints on access to capital. Guarantees can complement other leveraging mechanisms, further easing financing constraints for SMEs in LMICs. Guarantees can absorb some of the risks associated with investment, offering financial institutions greater security. This added security can, in turn, help improve access to capital for SMEs. On the other hand, they can also help catalyse private sector investment in LMICs. Recognising both the potential benefits and short-comings of guarantees, this Policy Brief provides the following policy recommendations on how guarantees could be extended efficiently to the SME sector in LMICs. • Guarantees should be directed at financial institu-tions to mitigate portfolio risk and actively promote lending to small projects or SMEs in high-risk sectors, particularly those with the potential to generate substantial economic, environmental, or social benefits. • Complement guarantees with additional measures to improve SMEs’ financial management, enhance risk assessment, and strengthen technical capacity through professional training and advisory services. • Implement partial credit guarantees to require financial institutions to retain a share of the risk, thereby reducing moral hazard and promoting rigorous analyses of borrowers’ creditworthiness. Complement these guarantees with conditionalities and monitoring criteria, such as regular reporting, to ensure the incrementality and additionality of guaranteed financing. Enhance the harmonisation of guarantees with other leveraging mechanisms, improve coordination among MDBs and DFIs, and streamline guarantee frameworks to achieve greater efficiency. • Recognise that guarantees alone cannot address structural vulnerabilities and institutional weakness in LMICs; a long-term commitment from decision-makers is essential to improve institutional and economic performance.
Topic:
Development, Finance, Sustainable Development Goals, and Investment
Political Geography:
Global Focus

16. Securing a development-friendly US trade policy: the urgent need for an AGOA revamp

Author:
Wolfgang Britz, Zoryana Olekseyuk, and Tim Vogel
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
In times of heightened uncertainty surrounding US trade policy, it is increasingly vital to secure a development-friendly approach toward African countries. They are among the most vulnerable to climate change, conflicts and pandemics, yet are also gaining geo-economic significance. Given the expiry of the US Generalized System of Preferences (GSP) in 2020 and the upcoming expiry of the African Growth and Opportunity Act (AGOA) in September 2025, Sub-Saharan African (SSA) countries urge policymakers to timely reauthorise and upgrade the non-reciprocal trade programme to improve market access to the US and ensure long-term support for sustainable development across the African continent. While the AGOA Renewal and Improvement Act of 2024 was introduced to Congress with bipartisan support, the election of Donald Trump and his “America First” approach have increased doubts about a swift extension of AGOA. This policy brief examines the potential effects of the expirations of GSP and AGOA using a multi-region Computable General Equilibrium (CGE) model. By simulating the shift from duty-free to Most Favoured Nation (MFN) treatment, we find the following: All in all, aggregated effects over all countries are rather muted while some specific countries face strong losses. Whereas bilateral exports of AGOA-eligible countries to the US decline by 3.7%, their total exports fall by only 0.1%, with real GDP remaining almost unaffected. Looking more closely, specific SSA countries would face high bilateral losses: The most substantial reduction of exports to the US occurs in Lesotho (-35%), Malawi (-25%) and Kenya (-16%), while welfare decline is the highest in Lesotho and Mauritius. The most affected sectors are sugar, wearing apparel, leather, dairy products, and beverages and tobacco. The limited aggregate effects of a loss in trade preferences are mainly driven by relatively weak ties of SSA to the US and rather low US MFN tariff rates. This highlights the limited effectiveness of the AGOA preference scheme, indicating that its renewal should go hand in hand with a comprehensive modernisation of the programme. While the AGOA Renewal and Improvement Act of 2024 acknowledges this, it still falls short of modernising the programme in some key areas. To ensure long-term benefits for SSA economies, we recommend: • A swift reauthorisation for a longer period, incorporating continuation provisions to reduce future uncertainty. • More transparent and predictable eligibility reviews, with a possibility of partial exclusion for non-compliance, would also help mitigate uncertainty. • Expansion of rules of origin, which is crucial for stimulating intra-continental trade and enhancing value addition within SSA. • Widening the programme’s scope by addressing, for example, digital trade, services, non-tariff measures, regulatory cooperation and investment facilitation.
Topic:
Development, Exports, and Trade Policy
Political Geography:
Africa and United States of America

17. A new development paradigm and strategy for the OECD (and beyond): what should the ‘D’ of OECD stand for?

Author:
Andy Sumner, Stephan Klingebiel, and Arief Anshory Yusuf
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This paper examines the evolving role of the Organisation for Economic Co-operation and Development (OECD) in addressing global development challenges in the mid-2020s. At a time when a new development strategy is being drafted for the OECD, we provide a fresh perspective by exploring the tensions inherent in the definition of “development” and asking whose development the OECD seeks to support. Historically, the OECD extended its remit beyond its membership through mechanisms such as Official Development Assistance (ODA). However, considering the increasing prominence of South–South cooperation, private sector investment and intensifying geopolitical competition, ODA alone is insufficient for sustainable development needs, and for many countries of the Global South ODA no longer matters as much as it used to due to the growth of domestic resources. One of the most significant shifts within the OECD itself in recent years is in its identity, largely as a result of its expanding membership. This now totals 38 countries, including some from the Global South, and this trend is set to continue, with a set of Southern countries currently in the accession process. While this enlargement may strengthen the OECD’s relevance in a multipolar world, it also challenges the organisation’s traditional identity as a “club of mostly rich countries”, as The Economist has often referred to it. Employing a novel 2x2 matrix framework, we delineate four strategic scenarios for OECD development strategy: (i) “traditional development” within OECD member states (D-within), (ii) traditional development beyond OECD membership (D-beyond), (iii) “frontier development” within OECD member states, and (iv) frontier development beyond the organisation’s membership. The use of the term “traditional development” refers to an aggregate growth orientation of development without reference to inclusivity or sustainability. “Frontier development” is then the converse. The authors argue for an OECD development strategy that bridges “D-within” and “D-beyond”, by acknowledging the transnational spillover effects of the domestic policies of OECD countries on the Global South. Further, across the matrix framework, we advocate for the OECD to strengthen its engagement with the analysis and promotion of policy coherence for sustainable development (PCSD) as a means of providing global leadership in sustainable development. In theory, promoting PCSD necessitates the integration of economic, social and environmental dimensions across all policy areas, alongside a commitment to addressing long-term and transboundary impacts. Further, we highlight the imperative of engaging non-member states to enhance the inclusivity and relevance of the OECD’s development strategy within an increasingly multipolar global order. In sum, we argue that the OECD is at a pivotal juncture. Its capacity to adapt and redefine its developmental mandate will determine its future relevance in the global governance architecture. By prioritising leadership on global sustainable development, PSCD and an inclusive approach to non-OECD members, the OECD has the potential to serve as a transformative force.
Topic:
Development, International Cooperation, and OECD
Political Geography:
Global Focus

18. Overcoming silos for One Health: key determinants of One Health governance platforms in low- and lower middle-income countries

Author:
Christoph Strupat
Publication Date:
01-2025
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This study addresses a critical gap in One Health governance literature by providing a comprehensive review of cross-sectoral One Health governance platforms in low- and lower-middle-income countries across Asia and Africa. These platforms are pivotal for building resilience and improving governance at the human–animal–environment interface. Using a scoping review methodology, the study identifies 34 One Health platforms established across 52% of these countries, with a primary focus on zoonotic diseases and a growing emphasis on antimicrobial resistance and food safety. A polycentric governance lens was applied to analyse the interplay of authority, resources and information in shaping platform functionality. Key findings highlight that authority imbalances and single-sector dominance undermine stakeholder engagement, insufficient financial and human resources hinder operational capacity. Further­more, weak data-sharing protocols limit timely coordination and evidence-based decision-making. The review identifies critical entry points for enhancing platform efficacy: clarifying governance frameworks, investing in cross-sectoral human capacity-building and strengthening data-sharing infrastructures with robust protocols and interoperable platforms.
Topic:
Development, Governance, and Public Health
Political Geography:
Africa and Asia

19. Financing for development: from Monterrey to Seville

Author:
Stephan Klingebiel, Jorge A. Pérez-Pineda, and Kathrin Berensmann
Publication Date:
01-2025
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The United Nations financing for development process, including the Fourth International Conference on Financing for Development (FfD4) in Seville in 2025, is an important building block to foster global cooperation amid the current geopolitical tensions and multiple crises that have led to increased development financing needs on the one hand, and increased spending on the other, with the OECD estimating that the financing gap in funding required for developing countries to achieve the Sustainable Development Goals is $3.9 trillion per year. Against this backdrop, a coordinated international effort is essential to increase the scale and effectiveness of development financing and promote sustainable development globally, particularly in line with the 2030 Agenda. The overarching goal of the FfD process, including FfD4, is to mobilise adequate financial resources for the sustainable development of countries in the Global South, and to design appropriate architectures for development and sustainable finance. The FfD process is unique in that it takes a holistic approach, involving all sources of development finance and all public and private stakeholders. In this respect, the FfD process has an extraordinary convening power. The purpose of this Discussion Paper is to provide meaningful input to the preparatory process of FfD4 by offering insights into key challenges, opportunities and innovative approaches. The paper aims to contribute to the broader dialogue on financing for sustainable development and support informed decision-making for a robust and inclusive development agenda beyond 2030. Topics range from reforms of official development assistance, innovative approaches to private-sector and sustainable finance, and innovative reforms of multilateral development banks.
Topic:
Development, United Nations, Finance, Sustainable Development Goals, and OECD
Political Geography:
Global Focus and Global South

20. How to deal with the current debt crisis of developing countries?

Author:
Jürgen K. Zattler
Publication Date:
01-2025
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Many countries are still struggling with high and rising debt levels. The economic impact of the pandemic, as well as some longer-term structural factors, explain this situation. The key problem is the high level of debt service relative to government revenues, which makes it difficult to address growing development, social and climate challenges. As this is a particular problem for low-income countries (LICs) and lower-middle-income countries (LMICs), the focus should be on these countries. But even within this group, the situation is not uniform. A differentiated approach with different components is therefore needed, depending on countries’ individual situations and their own priorities and choices. There have been many contributions to this debate and proposals on how to address the current problems. This paper builds on some of those contributions presenting a practical and coherent approach to address the current debt crisis which focuses as far as possible on incentives for debtor countries and private creditors. Importantly, a distinction should be made between countries with high debt levels that are at risk of debt distress and those with liquidity problems. Therefore, debt sustainability assessments (DSAs) are needed to decide which countries (a) are not in debt distress, (b) have an insolvency problem, and (c) have a liquidity problem. The International Monetary Fund (IMF) and World Bank should be asked to classify all LICs and LMICs accordingly, based on updated DSAs, using a prudent approach with conservative projections. These DSAs must emphasise debt service indicators. For countries with liquidity problems, they need to identify those countries where the problem is of a longer-term nature, with a risk that the liquidity squeeze will turn into acute debt distress. All LICs and LMICs facing insolvency or liquidity problems should be offered a moratorium similar to the Debt Service Suspension Initiative (DSSI) to give them breathing space (of 2-3 years). The expectation is that this would help countries with liquidity problems to maintain basic social and economic services until market conditions improve or debt relief is implemented. In cases where debt service remains high after the moratorium expires, the country would be expected to request debt relief. Countries at risk of default would be expected to use the period of the moratorium to engage promptly in restructuring discussions and to prepare negotiations with creditors on a debt relief programme. The IMF would make its resources conditional on a suspension of debt service payments. The question is whether private creditors, including sovereign bondholders, should be required to participate. It is suggested that a distinction be made between two categories of countries. For countries at risk of insolvency, including those with longer-term liquidity problems, the moratorium should be conditional on private participation on comparable terms, as their creditworthiness is likely to be affected anyway. In contrast, with countries facing short-term liquidity problems the approach should be more flexible. While pressure on private creditors to join a standstill should be maximised, this should be complemented by strong incentives. Countries with unsustainable debt would request treatment under a reformed G20 Common Framework for Debt Treatment (CF) with the option of a more comprehensive debt relief arrangement (“CF+”), including the following enhanced or new components: • At the beginning of the process, countries would have to present a “Just Green Transition Programme” (JGTP), monitored by the IMF and the World Bank. • The CF+ would be accompanied by more comprehensive debt relief, thus creating more fiscal space to allow the country to finance transformational and social investments. Debt service after rescheduling should be based on DSAs, which pay greater attention to Sustainable Development Goal (SDG) investments and countries’ particular circumstances, leaving countries with substantial room to absorb shocks. The objective would be to limit the debt burden to external creditors as a share of revenue after rescheduling to around 10-15 per cent. • For those countries where a large part of the debt service will be due to multilateral creditors, the involvement of multilateral institutions should be considered. This should be the case for those multilateral creditors which are not willing, or able, to provide positive net flows at highly concessional terms. • The issuance of “Brady-like” bonds could be considered for specific country cases. The issuance of Brady-like bonds could be an incentive to maximise private creditor participation in exchanging old debt for new bonds with a significant discount or “haircut”.
Topic:
Debt, Development, Sustainability, and COVID-19
Political Geography:
Global Focus