On 11 July, the UAE’s Ministry of Foreign Affairs and International Co-operation (MoFAIC), with support from the Global Partnership for Effective Development Co-operation (GPEDC), led a two-day technical workshop for 26 regional countries and development partners, training them for the GPEDC 2018 monitoring round.
A country-led process, the GPEDC’s biennial monitoring exercise brings together bilateral and multilateral organisations, the private sector, civil society and parliaments, among others, to monitor effective development co-operation commitments at the country level, tracking progress against ten indicators to ensure that all development efforts are in line with four internationally-agreed principles for effective co-operation.
The workshop provided an opportunity to i. establish a dialogue between countries and development partners on ways to strengthen their joint collaboration, ii.discuss the tools and guidance that both would need to successfully engage in the monitoring process, and iii. understand the usefulness of the monitoring results.
Participants realised that concerted efforts by all at the country level was crucial in making development co-operation effective and using limited resources efficiently. To this end, multi-stakeholder platforms and dialogues are an important aspect of working together. In this context, the monitoring process was seen as a useful entry point to strengthen platforms for multi-stakeholder dialogue.
Regional countries and development partners were keen to share ideas on how they could strengthen their co-operation to monitor and deliver on development projects more effectively together. Government representatives from Afghanistan, Bangladesh, Egypt, Jordan, Mauritania, Pakistan, Sudan, and Yemen shared their experiences in implementing and monitoring effective development co-operation efforts. At the same time, the Arab funds and donors present shared their successful partnerships in delivering complex infrastructure projects in the region. The Islamic Development Bank also shared Multi-Development Banks’ joint efforts in assessing and improving the quality of countries’ procurement systems.
National and peer development partners present included representatives from UAE’s development cooperation system and the Gulf Coordination Council, namely the Abu Dhabi Fund for Development, Abu Dhabi’s Department of Health, Arab Bank for Economic Development in Africa, Arab Monetary Fund, Dubai Cares, Emirates Red Crescent, Etisalat UAE, Ewa’a Shelters for Victims of Human Trafficking, Islamic Development Bank, Khalifa Bin Zayed Al Nahyan Foundation, Kuwait Fund for Arab Economic Development, Noor Dubai, OPEC Fund for International Development, Saudi Fund for Development , UAE General Civil Aviation Authority, United Arab Emirates University and Yahsat – Al Yah Satellite Communications Company.
Click here to find out more about the Global Partnership’s 2018 monitoring round.
The Global Partnership is updating its monitoring framework to better respond to the needs of countries, to better reflect the challenges of the 2030 Agenda and better track the effectiveness of all types of development co-operation.
An online, public consultations platform has been launched and all development co-operation stakeholders are invited to provide feedback on the eight indicators that have are being revised. Participants are invited to provide general comments or annotated comments on the proposed refinements. To participate, click here.
The Global Partnership monitoring is a biennial, country-led, multi-stakeholder monitoring of effective development co-operation commitments, supporting accountability among all development partners by measuring progress on 10 indicators.
Tied aid also holds back the long-term development of communities in the global south, because it goes against the fundamental principle that effective development should be led by local priorities, and channelled where possible through country systems. In particular, this type of aid makes it impossible to support local producers – even though doing so could bring a “double dividend”, delivering both project results and building up the local economy for the long term.
Yet despite these promising commitments, tying persists. The latest data from the Organisation for Economic Co-operation and Development’s Development Assistance Committee (OECD DAC) reports a figure of around US $16.8 billion – more than the entire ODA budgets of Italy, the Netherlands and Norway combined.
That’s just the tip of the iceberg. Those US $16.8 billion relate to aid that is ‘formally’ tied – where the contract explicitly states that goods or services must be bought from the country providing the aid.
Even more worrying is the level of aid that is tied informally – where the contract doesn’t specify a particular supplier country, but in practice barriers in the procurement process stop companies from outside competing – for example, if tenders are only advertised in the donor country language.
In some donor countries the share of contract spending with domestic firms was higher still – even in countries reporting very low levels of aid as formally tied aid (Figure 1).
Most attempts to monitor donor progress on untying aid have only told half the story. The OECD DAC Development Cooperation Report; OECD DAC peer reviews; as well as a range of donor rankings produced by third parties all focus on formal tying. While the OECD DAC does report regularly on the distribution of contract awards, this is a technical document that attracts only limited attention beyond specialist circles.
However, the current review of the indicators for the Global Partnership for Effective Development Co-operation’s (GPEDC) monitoring report, offers hope that this pattern will change. Through its wide-ranging coverage and diverse global participation, the GPEDC monitoring exercise attracts worldwide attention. Indicator 10 deals with untying aid. Eurodad is calling for the indicator to include systematic reporting on the values of contracts awarded to companies in different countries, in addition to data on formal tying.
This could have a powerful influence on how donors approach untying. The more untying aid is seen to be about where the money actually goes, the more pressure there will be for donors to remove barriers that prevent companies in the global south from competing.
Getting a comprehensive picture of informal tying will take time. A complete view would require not only full data on contract awards, but also information on sub-contracts, on who really benefits from companies located in the global south (‘beneficial ownership’) and on the tied aid implications of more aid being channelled through so-called private sector instruments.
For now, basic data exists, and could in the short term be supplemented by case studies. In the longer term, the drive for better data on aid procurement could encourage the use of country procurement systems (part of GPEDC indicator 9b), and boost the drive for transparency of over beneficial ownership – potentially contributing to a virtuous circle for effective development cooperation.
It would be an exaggeration to say that better monitoring of informal tying is enough to cut the Gordian knot of tied aid. As a recent Eurodad briefing set out, a whole sequence of actions is needed – from stamping out formal tying, through changes in procurement procedures, to pro-active policies to procure in favour of the poorest. But an increase in emphasis on informal tying in the GPEDC monitoring report could tilt the balance towards a new way of approaching aid procurement – a way that does work, for the poorest people, not just for the commercial interests of multinationals in the global north.