The Next Decade of South-South Development Cooperation

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Transcript The Next Decade of South-South Development Cooperation

After the Honeymoon? The Next Decade of South-South Development Cooperation

Emma Mawdsley [email protected]

Gillian Hart, 2009 One history of development 2

Development history with the South as agent

Asian Tigers/NICs Bandung Conference Non-Aligned Movement Demand for a New International Economic Order (NIEO)

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South-South Development Cooperation

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Paradigm shift with the South as (an) agent

Asian Tigers/NICs Global financial crisis; Eurozone crisis Bandung Conference Non-Aligned Movement Demand for a New International Economic Order (NIEO)

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South-South Development Cooperation Emerging markets; rising powers; visible and expanding SSDC

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BRICS; G20; ‘reform’ of the WB, IMF etc

Busan, Korea, 2011

Where were the Southern development partners in 2000?

• Contributing approximately 5% global ODA • Almost entirely invisible in academic debate, textbooks, ‘development’ courses, media discussion, policy analysis … • Represented only as recipients in global development governance

The (International Development) world in 2000 DAC: The Development Assistance Committee of the OECD (2000) 9

Early responses to the (re-)emerging rising powers as development partners

• Overwhelming focus on China • Range of responses, but much highly sceptical, and some extremely critical – E.g. Moises Naim (2007): ‘toxic aid’ and ‘rogue donors’ • Expectations of ‘socialising’ the non-DAC donors – E.g. DAC ‘outreach’

China is prowling the globe in search of energy sources (The Guardian, Nov. 2005)

The ‘rise of the South’

MATERIAL

development financing

ONTOLOGICA L

development identity

IDEATIONAL

development norms

1) Material: development means

A rise in the absolute amount and relative share of ODA/’ODA-like’ and broader development financing

The ‘global’ financial crisis and ‘traditional’ donors • http://devpolicy.org/end-of-the-aid-boom-the-impact-of-austerity-on-aid-budgets-and-implications-for-australia/

Punching above their weight

• Purchasing Power Parity (PPP) and the relative price of Southern goods and services

Punching above their weight

• • Purchasing Power Parity (PPP) and the relative price of Southern goods and services Particular importance in some sectors and places http://aiddata.org/blog/how important-are-private-and-non-dac sources-of-global-development finance

Punching above their weight

• • • PPP and relative price of Southern goods and services Particular importance in some sectors and places Much more substantial contributions to wider ‘development financing’

http://eurodad.org/1543461/

Indian Lines of Credit Indian Development Cooperation Research, Centre for Policy Research http://idcr.cprindia.org/blog/lines-credit

Punching above their weight

• • • • PPP and relative price of Southern goods and services Particular importance in some sectors and places Much more substantial contributions to wider ‘development financing’ Above all, offering choice in development financing for partner countries

2) Ontological: development identities

• Kapoor (2008): national virility, donor identity • Caring at a distance presumes: – “the construction of Northern actors as carers who are active and generous and of Southern actors as cared for, passive and grateful” (Silk, 2004: 230).

29 After Hurricane Katrina …Sri Lanka offered aid to the US. Even though it was only a small amount of money, this symbolic act was important for Sri Lanka to regain dignity and to escape from the status of a ‘pure’ recipient country, as a victim country. Now Sri Lanka had become a donor country. It also showed how Sri Lanka could feel compassionate to Westerners, being generous, within their capabilities, to the distant needy, but also able to rebalance the asymmetric relations that had developed after the tsunami, where Westerners were always donors and generous, and Asians were always recipients and forced to be grateful (Korf 2007: 370-1)

First Co-Chairs of the Global Partnership for Development Cooperation:

Ngozi Okonjo-Iweala, Minister of Finance, Nigeria. Armida Alisjahbana, Minister of State for National Development Planning, Indonesia. Justine Greening, DFID, United Kindgom.

Western donors Southern development cooperation partners

Charity Moral obligation to the unfortunate Expertise based on superior knowledge, institutions, science and technology

Opportunity Solidarity with other Third World countries Expertise based on direct experience of pursuing development in poor country circumstances

Sympathy for different and distant Others The virtue of suspended obligation, a lack of reciprocation

Empathy based on a shared identity and experience The virtue of mutual benefit and recognition of reciprocity

Mawdsley 2012

3) Ideational: development norms

• Ability to set or lead the agenda in a particular field or realm • Ability to ignore or resist dominant ‘rules’ or expectations • From ‘norm/rule takers’ to ‘norm/rule makers’

Paragraph 2 of the Busan Outcome Document (2011): The nature, modalities and responsibilities that apply to South-South cooperation differ from those that apply to North‐South cooperation. At the same time, we recognise that we are all part of a development agenda in which we participate on the basis of common goals and shared principles. In this context, we encourage increased efforts to support effective cooperation based on our specific country situations. The principles, commitments

and actions agreed in the outcome document in Busan shall be the reference for South‐South partners on a voluntary basis.

[emphasis added]

3) Ideational: development norms

• From ‘ODA’ to Other Official Finance (widening the construct of ‘development finance’), and blurring/blending of aid with other tools

3) Ideational: development norms

• From ‘ODA’ to Other Official Finance (widening the construct of ‘development finance’), and blurring/blending of aid with other tools • From poverty reduction to (again) economic growth as the central analytic of ‘development’ • From social sector (health, gender, education) and ‘soft wiring’ (good governance) to financialisation, infrastructure and productivity

3) Ideational: development norms

The last decade or so

• Ongoing concerns and criticisms, but overall … • • • • Consolidation, expansion and growing capacity of South-South Development Cooperation partners Clear signs of approval (and sometimes preference) within partner countries Growing real and apparent respect from ‘traditional’ donor community (e.g. rhetorics, partnerships) Changing international development ideas, institutions, and governance

After the honeymoon ..?

New/growing/inherent/specific issues for SSDC: • • • • • • Domestic factors Financial risk Protest and resistance in partner countries Squaring ‘non-interference’ with strategic imperatives and ground realities Changing identities and interests The North fights back

1) Domestic factors

Dilma and Lula Narendra Modi Park Geun-hye

“Even India has started giving Billions of dollars of aid to Afghanistan, Bangladesh, far away African countries yet we are accepting aid from western countries. It’s a real puzzle. Will someone throw some light about this mystery?” ‘Satish’, posted 5 Dec 2012, The Hindu, online

http://www.eco

nomist.com/new s/briefing/21582 257-most dramatic-and disruptive period emerging market-growth world-has-ever seen

2) Financial risks

• Fuelling unsustainable sovereign, public and private debt?

2) Financial risks

• • Fuelling unsustainable sovereign, commercial and private debt?

Badly performing loans/defaults

2) Financial risks

• • • Fuelling unsustainable sovereign, commercial and private debt?

Badly performing loans/defaults Corruption Goodluck Jonathan firing Central Bank Governor, Lamido Sanusi http://www.economist.com/new s/middle-east-and africa/21597896-presidents decision-get-rid-central-bank governor-bad-news-now

3) Agency and resistance in partner countries

May 2014: one Chinese worker killed and 10 others taken hostage in Cameroon by Boko Haram.

It is naïve to think that there is no danger of imperialism from the East. In world power politics the East has as much design on us as the West and would like us to serve their own interests.

(Jomo Kenyatta, 1965, quoted in Larkin 1971, 138).

4) Non-interference?

5) Changing identities and interests

For the emerging economies, G20 membership mainly challenges their previous understandings of their role as countries and representatives of the (poor) global South. Their economic and geopolitical interests which brought them into the G20 only converge with the [Lower Income Countries] to a limited extent. … A genuinely new joint development agenda based on equality is therefore very unlikely to emerge within the G20 without more transparency in relation to these realities and without the demystification of SSC. Gleichmann (2010: 14-15)

6) The North fights back

• • • Redefining ODA; expansion of ‘development financing’ vehicles; more open credit and loans for domestic firms and consultancies; (stronger) turn to financial and ‘productive’ sectors • Mawdsley (in progress); Banks et al (in progress) Resistance to reform of global architecture and governance • Vestergaard and Wade (2013) Coopting Southern partners • Abdenur and Fonseca (2014)

Looking back, looking forward

MATERIAL

development financing

ONTOLOGICA L

development identity

IDEATIONAL

development norms

MATERIAL

Can development grants and loans be sustained?

ONTOLOGICAL

Can Southern identity claim be sustained?

IDEATIONAL

Can traditional SSDC narrative and modalities be sustained?

MATERIAL Can development grants and loans be sustained?

ONTOLOGICAL Can Southern identity claim be sustained?

IDEATIONAL Can traditional SSDC narrative and modalities be sustained?

In who’s interests? Will evolving SSDC contribute to just, progressive, equitable sustainable development ? Where and how does this align with/depart from different Southern and Northern development interests, agendas and practices?