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ESCWA’S ODA TRENDS AND CHALLENGES

ESCWA’S ODA TRENDS AND CHALLENGES. a presentation at the ESCWA regional consultation on finance for development by Talaat Abdel-Malek Doha, 29 th April 2008. Major Trends. ESCWA has been a major recipient as well as a major source of ODA for the past 30 years

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ESCWA’S ODA TRENDS AND CHALLENGES

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  1. ESCWA’S ODA TRENDS AND CHALLENGES a presentation at the ESCWA regional consultation on finance for development by Talaat Abdel-Malek Doha, 29th April 2008

  2. Major Trends • ESCWA has been a major recipient as well as a major source of ODA for the past 30 years • Without referring to many figures, ODA flows have been characterized by the following: • Substantial variability of flows over time:$16 b in 1977 > $6 b in 2000 > $12 b+ in 2004 • Wide differences among recipient countries by all indicators (per capita, etc)

  3. Trends (Cont.) • Sharp differences in ODA management • Main reasons for variability of flows: • From Arab sources: oil revenues – geopolitical factors (Peace Treaty with Israel, Palestine, Iraq, etc) – recent tendency to focus on domestic infrastructure • From non-Arab sources: shifting priorities to LDCs vs. middle income countries, increased influence of human rights, governance & gender in ODA allocations

  4. Impact of ODA • Positive: support of physical infrastructure, education, health and (to a lesser extent, environment) • Contribution to improved life expectancy and growth rates • Negative: persistent weak national capacities, dominant role of donors and geopolitical factors, threats of Dutch disease • Overall: a very mixed outcome, with variances among countries

  5. Key Challenges • ESCWA member countries face enormous challenges (again, noting country variances): • Out-of-date education system (Including vocational education) • Inadequate public health system • Increasingly polluted environment, and scarce water resources • Ailing civil service bureaucracy • Loss of qualified talents “Brain Drain”

  6. Challenges (Cont.) • Slow (regressed?) gender development • Widening gap in science & technology in the knowledge Century • High unemployment and youth exclusion • Risk of failing to meet MDG targets

  7. Progress? • Are we making progress? • Yes, definitely: • But at what pace? • How sustainable? and • What role should ODA play in addressing our challenges? • Once again, country differences must be noted

  8. Focus on ODA Issues • Issues arising from Monterrey Consensus, Paris Declaration and forthcoming Accra Summit • 1. How well does ESCWA countries MANAGE ODA flows (donors and recipients)? • 2. What is the status of “national ownership”? • 3. Do we have sound national development plans/strategies? How are they implemented?

  9. Focus on ODA (Cont.) • 4. How many countries have an “ODA policy” with clear priorities? • 5. To what extent are these aligned with development plans? • 6. Are we making good use of South-South cooperation? • 6. What mechanisms exist for M&E of aid? • 7. What to do about ODA variability and the failure of donors to meet Monterrey pledges? • 8. Is it time to consider aid exit strategies?

  10. Capacity Building • Twin pillars of development: • Capacity building/development at various levels, and • National (not merely government) ownership of development and ODA management • Without these two prerequisites, ODA will continue to be far less effective and overall national development less sustainable than otherwise

  11. Capacity Building (Cont.) • Money (national or foreign) does not BUY development .. It is a lubricant.. Not a cause of development • What does capacity building mean/require?: • The three sides of the Capacity Pyramid: • Institutions • Human resource skills & knowledge • Operating systems

  12. Capacity Pyramid HUMAN OPERATING RESOURCES SYSTEMS INSTITUTIONS

  13. Enabling Environment Within the Institution: • Sound management/leadership • Right person in the right job – no room for nepotism • Adequate incentives based on performance • Flexibility to cope with changes

  14. Enabling Environment (Cont.) External Setting: • Rule of law • Efficient judicial system • Dynamic, competitive, environment • Rewards for innovation & achievements • De-politicization of decision-making The enabling environment is a national responsibility – donors can provide “best practice” & policy advice & training, but cannot/should not manage it.

  15. ODA & Capacity • What has been ODA’s contribution? • Training, training, and more training • Donor-driven and donor incentives • Little institutional development • Little interest/action by national authorities to sustain and strengthen “capacities” built through ODA • False notion of “Technical assistance” in donor-funded projects (cost of consultants, lack of counterpart involvement and “ownership”)

  16. Accra Summit • What position should we take at the Summit? • 1. Try to reverse the donor-driven process, or at least get more involved as equal partners • 2. Put our house in order (ODA policy, serious attention to building capacities) • 3. Think ahead: trade more than aid. The time for this has come. We must not be left behind • 4. Adopt the “participatory approach” to development. Our goal is sustainable development, not merely growth.

  17. THANK YOU

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