Transcript ED: Development Assistance and Capacity Development

Economic Development <Lecture Note 6> 13.5.10
ED: Development Assistance and Capacity
Development
* Some parts of this note are borrowed from the references for teaching purpose
only.
Semester: Spring 2013
Time: Friday 9:00~12:00 am
Class Room: No. 322
Professor: Yoo Soo Hong
Office Hour: By appointment
Mobile: 010-4001-8060
E-mail: [email protected]
Home P.: //yoosoohong.weebly.com
1
Development Assistance
- Development assistance would include multilateral governmental (or “ODA”),
NGO, and private grants plus highly concessional loans (grant
component)
- “Official Development Assistance”: Net disbursements of loans (on
concessional terms) or grants by governmental agencies for
development purposes
- All aimed at transferring resources in currency or In kind
- All “ pro-developmental” or emergency relief, not “welfare” oriented
- Non-commercial from donor perspective
2
History of Development Assistance
 Marshall Plan
 Cold war impetus
 Gradual expansion to the1990s, decline then renewal
 Citizen, “Faith-based” and NGO Initiatives
 UN and the Millennium Development Goals
 Reflection and Redirection of aid effectiveness
3
The Poverty Trap
Basic needs
Impoverished
household
ZERO tax
payments
ZERO
Household
savings
Negative
economic
growth
Decline in
capital per
person
(Negative)
ZERO public
investment
budget
Population
growth and
depreciation
4
The Role of ODA in Breaking the Poverty Trap
Basic needs
Impoverished
household
Household
savings
Humanitarian
relief
Official
development
assistance
Economic
growth
Public
investment
Budget
support
Public budget
Economic
growth
(Negative)
Population
growth and
depreciation
5
Forms of ODA

Development Assistance (ODA) may be:
- bilateral: given from one country directly to another;
- multilateral: given by the donor to an international organisation or EU

The proportion is about 70% bilateral and 30% multilateral.

About 80-85% of total developmental aid comes from government
sources as official development assistance (ODA). Germany and the
European Union are major DC players.

The remaining 15-20% comes from private organisations such as NGOs,
foundations and other development charities.
6
Considerations for Development Assistance
7
Donor Motives for Providing ODA
 Political
- e.g. Commonwealth connections
- Win friend countries and influence people
 Strategic/military
 Commercial
 Humanitarian
 Ethical
- Ethical Justification: Should high income countries provide aid to lowincome countries?
8
ODA (Official Development Assistance)
□ ODAs are official flows of resources to or for developing countries that are
provided:
•
for developmental purposes
•
by the official sector (government, public funds)
•
as grants or
•
as “soft loans”
9
Examples of ODA Activities
•
•
•
•
•
•
•
10
Development projects – schools, clinics, water supply systems, etc.
Emergency aid for natural or mkan-made disasters
Contributions to multilateral development agencies
Food aid, emergency and developmental
Aid to refugees
Debt relief outlined by Paris Club Agreement
Officially financed Ssholarships for students in developing countries
Non-Eligible ODA Activities
•
•
•
•
•
•
•
11
Military or security assistance
Cultural programmes for the donor’s nationals resident in other countries
Aid from NGOs financed from private sources
Foreign direct investment
Official export credits or other commercially motivated transactions
Guarantees on private export credits or investments
Reduced tariffs or other concessions on imports from developing countries
What is the DAC?
•
Development Assistance Committee (DAC) of the OECD
•
23 Bilateral Donors, plus European Commission (EC)
•
•
12
Objective: improve development assistance through coordination
and collaboration with major stakeholder.
Collect and synthesize data on aid and foreign assistance and deliver
the data to the public
DAC Subsidiary Bodies
•
Working Party on Statistics
•
Working Party on Aid Effectiveness
•
Network on Development Evaluation
•
Network on Gender Equality (GENDERNET)
•
Network on Environment and Development Co-operation (ENVIRONET)
•
Network on Poverty Reduction (POVNET)
•
Network on Governance (GOVNET)
•
Network on Conflict, Peace and Development Co-operation
•
Fragile States Group
13
Current DAC Members
14
Australia
France
Luxembourg
Sweden
Austria
Germany
Netherlands
Switzerland
Belgium
Greece
New Zealand
United Kingdom
Canada
Ireland
Norway
United States
Denmark
Italy
Portugal
European Commission
(Multilateral)
Finland
Japan
Spain
Korea
OECD DAC and BRICs
Development financing provided by BRICs can help LIC(low income
country)s alleviate some key bottlenecks to domestic economic activity.
Despite its still relatively small volumes compared to financing by OECD
DAC members, BRIC financing is highly significant in some areas and in
some countries.
In the area of infrastructure financing—a key BRIC focus—it is now
comparable to that from OECD DAC donors, and is expected to contribute
significantly to electricity generation capacity and the construction of roads
and railways in many LICs.
15
From a Receiver to a Donner of ODA
 Korea’s Received Aid
-- Korea was an aid recipient up until the late 1990s. Since entering the
new millennium, Korea has become a donor. According to the OECD,
Korea’s official development assistance (ODA) was $264 million in 2001.
It increased to $672 million in 2007, 0.07 percent of its GNI, but is
still far below major donors, whose average donations in 2007
accounted for 0.3 percent of GNI.
– Korea, which received $33.1 billion in assistance from advanced
countries and international organizations since liberalization from Japan
in 1945, is an example of the miracle that outside help can create
when combined with good development strategies.
– It only took about a half century for Korea to become the world’s 15th
largest economy. In the process, Korea had a lot of help from the United
Nations.
– The money was spent on building highways and factories, turning the
$70 per capita income country into an industrial powerhouse.
16
 ODA Strategies of Korea, Japan, and China
– On top of humanitarian needs, developed countries around the world are
using ODA to strengthen ties with recipient countries to build up their
influence and reputation, considering it a form of long-term investment. ODA
helps Korean firms find business opportunities in the recipient country.
– Japan is the third largest donor in the world after the United States and the
United Kingdom, but was one of the top two for a long time before the
weaker yen pulled it down in the rankings.
– It is also the second largest contributor to the regular U.N. budget after the
United States, as it continues its bid for a permanent seat on the U.N.
Security Council.
– Japan's ODA strategies are serving to promote national interests on top of
fulfilling humanitarian needs.
17
– Japan is spending around 25 times more than Korea, and is
concentrating on Asia and reaping the benefits. From Southeast Asia to
Central Asia, Japanese firms are outrivaling others in getting major infra
projects and gaining strong footholds in local markets.
– If Japan was a traditional big hand in ODA, China has lately risen as a
guru in the field ― securing resources is its basic motif.
– As the demand for resources rises with global economic expansion, keeping
close ties with the government has become crucial to secure resources.
Now donor countries are vying to provide ODA to resource rich
countries.
– China, rapidly industrializing, has been the most aggressive player in
the energy war. Though it never officially announces how much it spends
on ODA, it is estimated to spend billions of dollars each year on such
projects.
– Korea’s efforts to become an active donor are in line with its plan to
raise its international status commensurate with its economic power.
18
– China pledged to double its aid to Africa, and to provide $3 billion in
preferential loans at the Forum on China-Africa Cooperation held in 2008,
to which leaders from 48 African countries were invited.
– It imports over a quarter of its oil from African countries such as
Angola and Sudan. While China provided $3 billion in loans to Angola,
Korea's ODA totaled only $30 million. Though China is also criticized for
giving ODA to undemocratic governments, its strenuous search for energy
sources and new markets draws the attention of rivals.
19
20
Official Development Assistance, 1998-2008
(Net Disbursements, in billions of US Dollars)
By All Donors
Source: OECD Database
21
ODA, Net Disbursements, 1980-2008
(billions of US dollars)
Source: OECD-DAC Data base.
22
ODA by Recipient (from All Donors)
(Mill US Dollars)
23
Official Development Assistance by Recipient
24
25
Contributions of Assistance

Gap-Filling Role: Foreign exchange, tax revenues, technological,
managerial or entrepreneurial gap, etc.

Direct Basic Human Needs or MDG Filling Role

Emergency Relief: Regional flood, famine, military, and political
crisis relief

Reconstruction Role: Promote re-construction of war-torn lands

An Investment in Shared Security as well as Prosperity

Capacity-Building Role
26
Negative Impacts of ODA
 May permit recipients to pursue counter-productive or foolish policies
- May support an ineffective, counter-developmental and corrupt
government
- May support dictatorial regimes that violate human rights
 May Promote a “Dependency Welfare Syndrome”
- Leadership and responsibility may be abdicated.
 May deform domestic policies to accommodate priorities of donors
 May permit donor to exercise inappropriate influence on recipient
 May permit recipient country to shift resources to other undesirable areas
 Volatility of aid flows may be hurtful to recipient
27
Criticism on Development Assistance
 Aid to developing countries is strongly criticized.
- Scholars and policymakers increasingly express doubt that
aid will
• Increase economic growth
• Alleviate poverty
• Promote social development
• Foster democratic regimes
• Have a positive sustainable impact
development
 On Balance
- Aid alone can not achieve sustainable development
- A useful support for domestic or national effort
- Responsibility may more rest with developing countries themselves, not aid
donors.
- Perhaps neither “sufficient” nor “necessary” but “useful”
28
Desirable Factors

Governmental commitment to development objectives

Reasonably incorrupt government

Equity orientation of public policy

Sound economic policies to strengthen and sustain an indigenous
economic foundation

An “enabling environment” so that people can improve their own
situations for themselves
29
Africa’s Aid Dependency
Proportion of Total World Aid to SSA
40
35
30
25
20
15
10
5
0
US$9.2b
40%
US$77.5b
35%
30%
%
25%
20%
15%
10%
5%
World
0
6
20
0
2
19
9
8
19
9
4
19
8
0
19
8
6
19
8
2
19
7
8
19
7
4
19
6
19
6
19
6
0
00
20
96
19
92
19
88
19
84
19
80
19
76
19
72
19
68
19
19
64
0%
60
19
US $
Aid Per Capita
SSA
– World aid per capita has increased over the years – from about US$1.4
to in 1960 to about US$12.3 in 2003
– The level of aid per capita to SSA has increased even more – from
about US$2.6 to about $34.3 over the same period
– The result is that by 2003, almost one-third of all aid comes to SSA,
compared to about 15% in 1960
30
Trends of ODA, Non-aid Official Flows and
Private Flows to Africa, 1993 - 2003
US$ billion
25
25
20
20
15
15
Emergency
aid
Bilateral
debt
forgiveness
other ODA
10
10
5
5
0
0
-5
1993
-5
1994
1995
1996
1997
1998
1999
2000
2001
2002
Private
flows
Non-aid
official flows
2003
31
The Tale of Two SSA Countries-Foreign Aid
Ghana
20
00
19
96
19
92
19
88
19
84
19
80
19
76
19
72
19
64
19
68
Highest aid to Botswana in
1989 was about $160m
compared to $717 for Ghana
1000
900
800
700
600
500
400
300
200
100
0
19
60
US$ Million
Foreign Aid Flows
Botswana
- Aid to Ghana has been consistently and significantly higher than that to
Botswana.
• Aid to Botswana averaged about US$ 66 million annually compared to US$ 303
million for Ghana.
32
The Tale of Two SSA Countries–Per Capita GDP
Ghana
20
00
96
19
92
19
88
19
84
19
80
19
76
19
72
19
19
68
Botswana’s
GDPPC of over
$3500 is about 13
times that of
Ghana which is
about $276
64
19
60
Ghana’s GDP of
$280 is marginally
higher than that of
Botswana of $253
4000
3500
3000
2500
2000
1500
1000
500
0
19
US$
GDP Per Capita (Constant 2000 prices)
Botswana
- It is not too difficult to see which country has performed better in terms of
growth.
33
The Evidence
• SSA countries have received almost a third of total world aid.
• SSA’s growth and development have been anything but impressive.
• Ghana has been significantly more reliant on aid compared to
Botswana.
• Botswana has performed significantly better than Ghana.
34
Fundamental Questions
 Can More Aid be “Absorbed” or Used Effectively?
– Would high levels of aid institutionalize dependence?
– Would it lead to a collapse of domestic effort (e.g. taxation,foreign
exchange earnings, etc.)?
– Would it promote “Dutch Disease”
– Would it sap indigenous efforts and initiatives
– Could it be used effectively?
– Would donor priorities take over?
35
Improvement of Development Assistance
 Increase the Quantity of Development Assistance
- More grants and fewer loans
- Link aid more directly to need
- Further debt service reductions?
 Recipients:
- Pursue wise, equitable and effective development strategies
- Make a major domestic effort
- “Take Charge” and “Own” the Program
- Improve budget management and accountability; combat corruption;
- Ensure effective management;
- Avoid currency appreciation due to aid inflows (“Dutch Disease”)
36
 Donors: Improve the “Quality” of Aid
- A “Partnership” philosophy and approach
- Orchestrate programs to avoid chaos; Use a “consortium” approach
- Reduce administrative burdens placed on recipient governments
- Minimize aid volatility and unpredictability
- Reduce the tying of aid to donor suppliers
- Increase untied budget support? Increased “Program Aid not Project
Aid”
- Emphasize capacity building
37
The Paris Declaration “Pyramid”
•
56 Action-Oriented Commitments
38
12 Indicators to Monitor Progress
INDICATORS
SURVEY
REVIEWS
Ownership
1
National development strategies

Alignment
2
Quality of country systems

3
Alignment: aid is on budget

4
Coordinated support for capacity
development

5
Use of country systems

6
Parallel PIUs

7
In-year predictability of aid

8
Aid is untied
9
Programme-based approaches

10
Joint missions & analytic work

Managing for
Results
11
Results-oriented frameworks
Mutual
Accountability
12
Reviews of mutual performance
Harmonisation



39
The Number of Donors Per Country
Donor programmes cover many countries
(EC, France & Germany: over 100 countries each).
37 countries host more than 24 donors.
Quartile distribution of number of DAC and
major multilateral donors by country
40
Capacity Development
 What is capacity?
- Capacity is the ability of a human system to perform, sustain itself and
self-renew.
• Capacity development is:
• the activities, approaches, strategies, and methodologies which help
organizations, groups and individuals to improve their performance,
generate development benefits and achieve their objectives
 This definition makes clear that capacity is not a static state or quality. It is
about:
• Creating some form of added value for members and the outside world
(perform);
• Staying alive and active (sustain);
• Adjusting and developing over time (self-renew) on the basis of external
pressures and internal drivers.
41
Capacity Development
 Which capacities need to be developed?
-The capacity to engage with stakeholders and create consensus
around a policy, a bill or a plan
-The capacity to articulate the mandate of the institution or to vision
the trajectory of an organization or even a society
-The capacity to develop a strategy, translate it into a plan and prepare
a budget
-The capacity to implement a program or a policy and the capacity to
monitor its implementation and evaluate results
These are all fundamental capacities that organizations, institutions
and societies need in order to be effective and function well.
42
Capacity Development Process
43
Capacity Development
• Concept to put emphasis on holistic approach to capacity building
and technical assistance
• Four drivers of change to yield significant and lasting gains on
capacity
– Institutional – creating capable institutions
– Leadership – building smart leadership
– Knowledge – increasing technical knowledge
– Performance – tools for measurable improvement
44
Capacity Development vs. Capacity Building
Capacity building:
• process that supports only the initial stages of building or creating capacities;
• is based on an assumption that there are no existing capacities to start from;
• less comprehensive than capacity development;
• can be relevant to crisis or immediate post‐conflict situations
OECD/DAC
– ‘suggests a process starting with a plain surface and involving the
step‐by‐step erection of a new structure, based on a preconceived
design.
– Experience suggests that capacity is not successfully enhanced in
this way.’
(UNDP Capacity Development – June 2009)
Capacity development
• process of creating and building capacities and their (subsequent) use,
management and retention;
• driven from the inside and starts from existing capacity assets;
• living process, multi-dimensional, relational, adaptive.
45
Evolution of Development Assistance
• Technical Assistance
– 1970s and 1980s
• Capacity Building
– 1990s – early 2000s
• Capacity Development
– Current approach
46
Capacity Development - Analogy
Lao Tzu - "Give a Man a Fish, Feed Him For a Day. Teach a Man
to Fish, Feed Him For a Lifetime.“
Assistance
Give a Man a Fish
Capacity
Building
Teach a Man to Fish
Capacity Development Sustainable fishing industry meeting
societal needs
47
A Case of Manila
48
Growing consensus on aid effectiveness and
capacity
The 2005 Paris Declaration
on Aid Effectiveness
Calls for capacity
development to be an explicit
objective of national
development & poverty
reduction strategies
The UN Millennium
Project and the
Commission for Africa
Challenges the world to
treat capacity development
with greater urgency
The New Partnership for
Africa’s Development
(NEPAD)
Identified capacity
constraints as a major
obstacle to sustainable
development
Capacity Development:
One of the
most important
elements of
aid effectiveness
Without sufficient capacity, development efforts will not succeed
49
Importance of Capacity Development
Country
capacity
is the key
to
Development
Performance
Two
connected observations
Country
Ownership
is the cornerstone
of aid and
development
effectiveness
50
Challenge
•
In recent years more than US$15 billion (1/4th of donor aid) went to
“Technical Cooperation”, most of which dealt with capacity development
•
Despite these investments, development of sustainable capacity
development remains one of the most difficult areas of international
development practice
•
Capacity Development one of the least responsive targets of donor
assistance
•
2004 Global Monitoring Report for MDGs reveals that public sector capacity
lagged behind all other MDG benchmarks
51
Basic Understandings
•
Capacity – the ability of people, organizations and society as a
whole to manage their affairs successfully
•
Generic capacities – the ability to plan & manage organizational
changes & service improvements
•
Specific capacities – for e.g., public financial management or trade
negotiations
 Capacity Development
•
The process whereby people, organizations and society as a whole
unleash, strengthens, creates, adapts and maintain capacity over
time
•
Not the same as capacity “building” which suggests a process
starting with a plain surface and involving the step-by-step erection of
a new structure, based on preconceived designed
52
•
The process whereby people, organizations and society as a whole unleash,
strengthens, creates, adapts and maintain capacity over time
•
Not the same as capacity “building” which suggests a process starting with
a plain surface and involving the step-by-step erection of a new structure,
based on preconceived designed
53
Capacities by Entity
• Recipient government
– Capacity to own, manage and implement.
• Donor agencies
– Human and institutional capacity to deliver assistance in an
effective manner.
• Other key stakeholders (e.g. civil society, private sector)
– Capacity to complement government; advocate for effective
use of aid, and exert ownership over development
processes.
54
Relationship between Technical Assistance
and Capacity Development
Facilitating access
to knowledge
Brokering multistake-holder
agreements
Technical
Assistance
Participating in
policy dialogue &
advocacy
Capacity
Development
Providing
incremental
resources
Creating space for
learning by doing
55
Level of Analysis
Individual level
(experience, knowledge & technical skills)
Systemic
factors, i.e.,
relationships
between the
enabling
environment,
organizations
and individuals
Organizational level
(systems, procedures & rules)
Influences by
means of
incentives it
creates
Enabling environment
(institutional framework, power structure & influence)
- Successful capacity development requires not only skills and
organizational procedures, but also incentives and good governance
56
History
•
Capacity and capacity development issues on the development agenda
for ages, starting in the early 1950s
•
Seen primarily as a technical process, involving transfer of knowledge
from the North to the South
•
Overestimated the ability of development cooperation to build capacity in
the absence of national commitment
•
LESSON LEARNED: To be effective capacity development must be part
of an endogenous process of change, with national ownership and
leadership as the critical factors
•
One of the most important element of the new consensus:
Capacity Development is primarily the responsibility of partner
countries with donors playing a supportive role
57
Agreement on DAC
Principles for
Effective Aid
(1992)
Paris Declaration
(2005)
Rome Declaration
(2003)
The New Consensus
Capacity development
is the prime responsibility of
partner countries,
with donors playing
a supporting role
Poverty Reduction
Strategy Paper (PRSP)
Initiative
(1998)
“Shaping the 21st Century”
OECD DAC paper
outlining a new paradigm
(1996)
Comprehensive Development
Framework (CDF)
(1998)
58
Role of Partner Countries and Donors in Capacity
Development
Partner Countries
• Lead the process
• Set specific
objectives in
national
development
plans
• Implementation
through country-led
strategies
Donor Countries
• Mobilize financial &
analytical support around
partner country’s objectives,
plans & strategies
• Make full use of
existing capacities
• Harmonize support
for capacity development
59
Forces Influencing Capacity Development
BLOCKING FACTORS - NEGATIVE FORCES
Systemic
factors, i.e.,
relationships
between the
enabling
environment,
organizations
and
individuals
FACTORS FAVOURING - POSITIVE FORCES
60
Conditions that Make Public Sector Capacity Difficult
to Develop
Lack of a broadly enabling environment
•
Lack of human security & presence of armed conflict
•
Poor economic policies discouraging pro-poor growth
•
Weak scrutiny of the legislative branch on the executive branch
•
Lack of effective voice of the intended beneficiaries
•
Entrenched corruption
•
Entrenched and widespread clientelism or partimonialism
61
Aspects of government ineffectiveness environment
•
Fragmented government with poor overall capacity
•
Absent, non-credible and/or rapidly changing policies
•
Unpredictable, unbalanced or inflexible funding and staffing
•
Poor public service conditions
•
Segmented & compartmentalized organizations
•
Only a formal commitment to performance-oriented culture
62
Conditions Favoring Capacity Development in
Organizations
•
•
•
•
•
•
•
Strong pressures from outside
Top management provides visible leadership for change, promotes a clear
sense of mission, encourages participation, established explicit
expectations about performance & rewards
Change management is approached in an integrated manner
A critical mass of staff is involved
Organizational innovations are tried, tested & adapted
Quick wins are celebrated
Change process is strategically & proactively managed
63
Lessons
•
Capacity development involves three levels - individuals, organizational and
enabling environment - which are interdependent.
•
Capacity development goes well beyond technical cooperation and training
approaches.
•
Incentives generated by organizations and the overall environment is critical
for using skilled personnel.
•
Capacity development is necessarily an endogenous process of change.
•
Focusing on capacity building of organizations make success more likely.
64
Understanding the International and Country Contexts
•
A good understanding of context is fundamental.
•
Country political economy studies provide a valuable first step.
•
Important to get beneath the surface of the organization, looking for
both forma land informal, hidden aspects
•
Identify the relevant stakeholders.
•
Donors should consider whether their own government’s policies are
part o the problem.
•
Consider the role of the diasporas.
65
Identifying and Supporting Sources of Country-owned
Change
•
Country ownership needs to be treated as a process.
•
The interaction between donors and domestic actors can generate
either vicious or virtuous circles of change.
•
Donors should encourage the “effective demand” for public sector
capacity.
•
Modalities of donor support should encourage and strengthen
initiatives benefiting from country commitment.
•
Capacity needs assessment a useful entry point.
•
Choosing the right organizational cope is as important as selecting the
right organization.
•
Some organizations are more crucial than others.
66
Delivering Support
•
The enabling environment is still relevant when specific design issues
are considered.
•
Technical cooperation is effective when pooled and coordinated.
•
Donor-instigated Project Implementation Units (PIUs) should be
avoided whenever possible.
•
Agreeing the desired outcomes of capacity development is crucial.
•
South-South learning should be encouraged.
•
Large new investments in training capacity may be justified.
67
Lessons Learned about Capacity Development through
Long-term Training
•
Better to aim at institutional changes in key organizations than focus on
improving the capacity of individuals
•
The gains in long-term training includes work attitudes, critical thinking, selfconfidence, etc.
•
Having a critical mass of staff in the same organization trained abroad in the
same country make changes more possible
•
Costs and benefits of different training options must be determined
•
Follow up support in organizations essential
•
Long-term commitment by donors is critical
68
Learning from Experience and Sharing Lessons
•
Capacity development initiatives should maximize learning.
•
Further lessons must be extracted about what works and what does
not in terms of changing the enabling environment.
•
Monitoring should also look into whether donor support is delivered in
a way that assist country ownership.
•
An independent form of monitoring, capable of generating objective
judgments is required.
•
Select and apply measures of achievement.
•
Collect the views of intended clients or end-users.
•
Individual assessment is not just about skill enhancement.
69
Fragile States
•
Most difficult aid environments that are being neglected by the international
community.
•
Countries recovering from conflict
•
Regimes that are chronically weak or in decline.
•
Capacity development must prioritize on reducing fragility.
70
General Principles for Working in Fragile Development
Environments
•
Development partners need to be highly selective in the instruments they
use for capacity development.
•
Must understand the country context and focus on an approach
suitable in the specific circumstances.
•
Must be realistic about their expectations.
•
Donors need to identify likely partners and work with them consistently over
the short, medium and longer term.s
71
Lessons Learned from Working on Capacity
Development in Fragile States
•
Capacity development efforts must selectively focus on core state
functions, so that they can effectively provide for their people.
•
Planning tools developed for post-conflict environments may be useful.
•
Respect the principle of endogenous change and foster country
leadership.
•
New capacity development initiatives must not erode or duplicate existing
capacities in individual, organizational or enabling environment terms.
•
Sectoral selectivity or “partial alignment” can deliver strategic pay-offs.
•
Modest capacity development can be achieved even in states with acute
governance challenges.
72
Experiences of the Past Five Decades
•
Donors must align with and support country-driven approaches and systems
for capacity development.
•
Significant efforts are required.
•
More creative thinking is needed.
•
Moving from “right answers” to a “best fit” implies a better understanding of
country contexts, identifying sources of country-owned change, designing
appropriate forms of support and sharing lessons learned.
73
Unfinished Business of Capacity Development
•
Consolidating consensus on capacity development as an endogenous
process of unleashing, strengthening, creating and maintaining capacity
over time.
•
Identifying and addressing the systemic factors that discourage countryowned efforts
•
Donors provide support which encourages, strengthens and do not replace
initiatives by leaders and managers in partner countries
•
Integrating human capital formation and technical cooperation with
institutional changes and organizational reforms
•
Developing policy-relevant disaggregated technical cooperation statistics
74
Vicious Cycle of Empowerment
… see bad results as
confirming weak capacity
and commitment
DONORS …
… perceive
standards as
… suspicious; establish unrealistic,
evaluation standards, irrelevant
emphasize quantity
… fail to claim
ownership; refuse
responsibility;
entitlement attitude
… fill leadership
gap, set
boundaries and
logic
RECIPIENTS …
… lack of control;
perceive inequities,
friction & mistrust
… control
implementatio
n, staff &
procurement
… the get-mostout-of-thesystem attitude
… advocate and set
priorities
… inability
to question
or refuse
logic
… perceives
disconnect with needs
and preferences
… conceive, write and
present plan
Source: UNDP, “Ownership, Leadership and
Transformation”, New York (2003), p.42/43
75
Virtuous Cycle of Empowerment
… perceive growing
assertiveness & capacity
development
DONORS …
… perceive
agreed
standards as
relevant &
draw lessons
… help improve
evaluation
standards
… claim
ownership;
assume
responsibility
… exercise
respect, restraint &
listen
RECIPIENTS …
… develop evaluation
standards; growing
partnership & trust
… take some
risk & provide
support on
demand
… control
implementation, staff
& procurement
Source: UNDP, “Ownership, Leadership and
Transformation”, New York (2003), p.42/43
… Reform
system that
works for
development
… support national
efforts, priorities,
systems & processes
… conceive, write &
present plan
… constructive critique and long-term
commitment based on agreed conditions
76
Capacities for Utilizing AID
Institutional
Capacities
Human Capacities
Policies, strategies and
implementing tools are in
place to ensure efficient
coordination and
management of aid.
Skilled, trained personnel
are in place to implement
policies and strategies,
and to maintain the
government-donor
interface.
“Capacities”
Structural / Economic Capacities
Capacity of the recipient country’s economy
to absorb additional aid with minimal
distortion (“Dutch disease”) etc.
77
Capacity Building Dimensions
 National policy institutions
 S&T organizations - universities, public and private R&D
institutes/technology diffusion institutions
 Enterprises - both users of knowledge and creators of new knowledge
 Labor Force
78
Technological Capability
 Definition of TC:
– Technological progress is often (misleadingly) identified with major
breakthroughs and movement of the frontier in the conventional neoclassical literature. This highly restrictive view has come under serious
attack on grounds that it ignores that minor (as opposed to major)
innovations are more likely to occur and act as a vital and continuous
source of productivity gains in practically all industries.
– Define technological capability in developing (TC) countries as their
capacity to select, assimilate, adapt and improve given technologies.
79
S&T Capacity Building: Strategic Policy Options
 Creation of new knowledge vs. import adaptation, diffusion, and adoption of
knowledge created elsewhere
 Enhance supply of knowledge vs. stimulate demand for knowledge
 Hardware vs. software
 Horizontal policies vs. vertical policies
80
Levels of Innovation
Frontier Innovation
Technology
Improvement
and Monitoring
Significant Adaptation
Basic Production–use technology
81
Levels of S&T Capacity Building
Science
Development
and Creation
R&D
Design &
Engineering
Technician & Craft
Skills & Capabilities
Science
Use, Operation
and Maintenance
Basic Operators
Skills and Capabilities
-These all need human capacity.
82
Five Dimensions of STI Capacity
National (and local)
government capacity to
formulate and
implement coherent
S&T programs and policies
Production of new
knowledge via R&D
Import, adapt, and
adopt knowledge
produced outside the
country
Source: Ansu, Yaw, 2007
Enterprise capacity to
utilize knowledge to
innovate and produce
higher value added,
globally competitive
goods and services
Technologically and
scientifically skilled
workforce trained to
equipment and
production processes
83
Dimensions of STI Capacity
Import, adapt, and adopt
knowledge produced
outside the country
Produce and use new
knowledge via R&D
National (and local)
government capacity to
formulate and implement
coherent S&T programs
and policies
Technologically and
scientifically skilled
workforce trained to
work with modern
equipment and
production processes
Enterprise capacity to
utilize knowledge to
innovate and produce
higher value added,
globally competitive
goods and services
Education, vocational
training, and R&D
institutes
84
STI Capacity Development Stages
Creation
Improvement
Assimilation
Acquisition
STI Capacity
Focus
Development
Stages
Imitation
internalization
generation
Developing
Newly-Industrializing
Advanced
Country
Country
Country
85
Korea Patent Trends (1965-2006)
7000
6000
5000
4000
3000
2000
1000
19
67
19
69
19
71
19
73
19
75
19
77
19
79
19
81
19
83
19
85
19
87
19
89
19
91
19
93
19
95
19
97
19
99
20
01
20
03
20
05
19
65
0
Source: United States Patent and Trademark Office (USPTO), 2007
86
Capacity for technology absorption and diffusion
Removing Barriers is Necessary But Does Not
Automatically Build STI Capacity
Low Barriers
High Capacity
Low Barriers
Low Capacity
High Barriers
High Capacity
High Barriers
Low Capacity
Sub Saharan Africa
Barriers to technology absorption and diffusion
87
High Tech Does Not
Always Equal High Income
8,000
Argentina
7,000
GDP Per Capita (Contant USD)
Mexico
6,000
Chile
5,000
Costa Rica
Malaysia
Brazil
4,000
3,000
Thailand
Fiji
2,000
Colom bia
Philippines
China
Sri Lanka
1,000
0
Pakistan
India
B'desh
Cam bodia
0
Indonesia
Vietnam
10
20
30
40
50
60
70
Hi Tech (% of Manufacturing Exports)
Source: World Development Indicators, 2007
88
Enterprise-based model of STI Capacity Building:
PPP Options
Farmers and
Outgrowers
Farmers and
Outgrowers
Entrepreneur
(Diaspora, FDI, Expat, Local, NGO)
Uses and invests in welltrained manpower through
•On-the-job-training
•Vocation schools
•Universities
Strives for product and
process innovation through
•Technology Searching
•Technology Acquisition
•Technology Adaptation
Meets Standards and
Quality through
•Engineering
•Production techniques
•Field and lab testing
Produces Saleable products and services
Information from market
research and from buyers
Market
(Local, Regional, Global)
89
Network Objectives
Training Africans (In Africa?
In network partner institutions?)
Joint R&D
Programs
Technology
Diffusion
Building Faculty Capacity
at African Universities
90
ODA Principles, Suggested
 ODA should contribute to a sustainable, human development conducive to
the improvement of people‘s living conditions
 ODA should contribute to a national and international enabling environment
(capacity building and (women’s) empowerment, good governance, fair
trade)
 ODA should „do no harm“* (Latin: primum non nocere)
 ODA should be an incentive for „good performers“ (performance-based
allocation)
 Sometimes it is better to „stay engaged“ instead of “let them fail”**
* Mary B. Anderson (1999): Do No Harm: How Aid Can Support Peace - or War, Boulder/London
** Tobias Debiel et al. (2007): „Stay Engaged“ statt „Let Them Fail“ (INEF-Report 90/2007 http://inef.uni-due.de/cms/files/report90.pdf
91
References
Holtz, Uwe. 2011. “Official Development Assistance-Development
Coopreation by Germany and EU” in MBA Modul: International politics
(Google, PPT).
Sawada, Yasyuki. 2010.”Official Development Assistance” Views from
Japan and East Asia”
Spire Research and Consulting. 2007.“The Rising Tide of Asian
Investment in Asia”. (Google)
Todo, Yasuyuki. 2010. “Is Foreign Aid a Vanguard of FDI?” The
University of Tokyo and RIETI.
Watkins, Alfred. 2008. “Building STI Capacity for Sustainable
Development and Poverty Reduction” (Google, PPT).
WMO. “Capacity Development Strategy and Preparation of Guidance
Document” (Google, PPT).
Zimmermann, Felix. 2008. “The Paris Declaration on Aid Effectiveness…”
(Google, PPT).
92
Appendix. Emerging
Consensus to Better Practice
for CD
UNDP
93
A framework for capacity development
Not a single,
once-only
sequence
STEPS
LEVELS
Individual
Organizational
Enabling
environment
Understanding the
international and
country contexts
Identifying &
supporting sources
of country-owned
change
Delivering support
A flexible, “best fit”
search for supporting
capacity development
Learning from
experiences and
sharing lessons
94
Individual level
STEPS
Understanding the
international and
country contexts
• How is the availability of skilled & committed individuals shaped by global
& local push & pull factors?
• Under what conditions could diasporas contribute more strongly to
capacity development at home?
Identifying &
supporting sources of
country-owned change
• Are individual professionals able to be mobilize?
• Are donor sufficiently responsive to restoring salary levels in key posts?
Delivering support
• Do training components take full advantage of the potential of ICT?
• Are the training components linked to increasing organizational
effectiveness and putting new skills to use?
Learning from
experiences and
sharing lessons
• Does the follow u goes beyond knowledge & livelihood benefits?
• Is it tracking the effects on organizational capacity & performance?
95
Organizational level
STEPS
Understanding the
international and
country contexts
• How are capacities currently shaped by the informal & “political” aspects
of organizations?
• Are these features generalized or variable across organizations or
organizational spheres?
• Are there private-sector pressures & resources that can be mobilized?
Identifying &
supporting sources of
country-owned change
• Is capacity development an explicit objective of a plan or policy benefiting
from country ownership?
• Is there effective ownership initiatives within particular organizations or
organizational spheres?
Delivering support
• Have the objectives been clearly defined in terms of desired capacity
development outcomes?
• Have the inputs & service providers selected with the view to cost &
effectiveness or the decisions been supply-driven?
Learning from
experiences and
sharing lessons
• Is the achievement of outcomes effectively monitored & fed back into the
process?
• Do the monitoring arrangements include proxy measures with appropriate
involvement of clients or service users?
96
Enabling environment
STEPS
Understanding the
international and
country contexts
• What are the historical & contemporary factors underlying weak “political
will”?
• How are power structures & formal & informal institutions changing and
with what effects on politicians’ incentives?
Identifying &
supporting sources of
country-owned change
• Does the interaction between donors and country actors form a “virtuous
circle” or a “vicious” circle?
• Are there ways donors can encourage effective demand within the
country for capacity development?
Delivering support
• Are the donors promoting changes in the institutional environment for
capacity development?
• Is support being delivered in ways that enhance, or undermine, the
possibility of organizations’ learning y doing?
Learning from
experiences and
sharing lessons
• Is there monitoring of changes in institutional rules & how it has come
about?
• Is there independent, objective monitoring pf the mode of delivery?
97