Annual Ambassadors’ Conference

Annual Ambassadors’ Conference

The Hague, The Netherlands

4 September 2008

How serious are we about ownership?

Javier SantisoDirector and Chief Economist

OECD Development Centre


Overview: How Serious are We About Ownership?

ANNUAL AMBASSADORS’ CONFERENCE

11 The Principle of Ownership in 2008: Home Grown SolutionsThe Principle of Ownership in 2008: Home Grown Solutions

The Obstacles to Home-Grown Development KnowledgeThe Obstacles to Home-Grown Development Knowledge22

33 Broader Ownership Beyond 2008Broader Ownership Beyond 2008

2


A series of Declarations highlight the importance of Ownership

• Monterrey Consensus 2002– “Effective partnerships among donors and recipients are based on the

recognition of national leadership and ownership of development plans”.

• Paris Declaration 2005– Recipient countries must “exercise effective leadership over their

development policies” and “coordinate development actions”.– The target: 75% of countries have “operational development strategies” by

2010 (evaluated by World Bank on the basis of Poverty Reduction Strategy Papers).

1. The Principle of Ownership in 2008: Home-Grown Solutions


Some progress has been made

• 8 of 62 recipient countries surveyed have “largely developed” operational development strategies.

• Most countries (67 %) have “taken action” in putting one together.

Source: Progress Report on Implementing the Paris Declaration, prepared for the Accra High-Level Forum on Aid Effectiveness, 2008.



But the Paris Declaration’s take on ownership is shaky1. Ownership is a long-term process and requires actors outside central

government to be engaged.

2. Ownership requires home-grown solutions.

So: ownership cannot be measured only (or mostly) through PRSPs, which are drafted by central government and negotiated with strong donor input.

Source: Discussions at our “Ownership in Practice” Workshop, led by more than 30 experts from developing countries (September 2007).



Three obstacles

1. The development finance “non-system” strains weak capacities to take ownership.

2. Donors dominate development knowledge: knowledge is power.

3. Governance structures often prevent local policy debate.

2. The Obstacles to Home-Grown Solutions


The international “non-system” is expanding

Global Programmes

World Bank

UNDP

GFATM

GAVI

Global Environment

Facility

Fast Track Initiative/

Education for All

…

Others, e.g. Islamic Dev.

Bank

NGOs

InternationalNGOs

Regionaldev. banks &

agencies

UN SpecialisedAgencies

National NGOsin donor countries

National NGOsin developing

countries

MultilateralDonors

IMF

Public Private

Other private

non profit

Private for profit

DAC donors

Incl. bilateral development banks and agencies

Other OECDdonors

(non-DAC)

Emerging donors

BilateralDonors

Foundations

Households (e.g. remittances and other private

transfers)

Firms

Commercial Banks

Private Investors

Observer status in DAC

EC

23

47

4

2

5

1297

325



Financing mechanisms are multiplying

Source: Financing Development 2008: Whose Ownership? OECD Development Centre

Based on Kaul and Conceicao (2006)



Private donors are matching official aid budgets


Source: Koch, D. J., in Financing Development 2008: Whose Ownership?



Development knowledge remains donor-driven

“Northern donors and think tanks and Northern-controlled multilateral organizations dominate the development knowledge industry. In so doing they exert a major influence on the policies and decisions of governments in the South.”

by Norman Girvan (University of the West Indies) from “Home-grown Solutions and Ownership”

prepared for our Workshop on “Ownership in Practice” (27-28 Sep 2007)See: www.oecd.org/development/globalforum


http://www.oecd.org/development/globalforum


Donors continue to use ineffective policy conditions

Conditions :

• have not been applied consistently• are often inappropriate to local circumstances• undermine local accountability structures


Source: Mold, A., and F. Zimmermann,

A Farewell to Policy Conditionality, August 2008 OECD Development Centre


Donors fail to invest in Southern-based knowledge centres

Of the annual $1.3 billion of ODA spent on development research, only 6 per cent goes to developing countries.

Source: An Initiative to Strengthen Policy Analysis in Developing Countries, Rationale Paper for IDRC-Hewlett Think Tanks Initiative, 2006, based on OECD Creditor Reporting System.



Are NGOs better at fostering Southern views?

Source: Koch DJ, in Financing Development 2008: Whose Ownership?


Only 6 per cent of NGO Board members are from developing countries.



Private banks could also base more analysts in the South



Developing countries lack think tanks


More than 70 per cent of the world’s 5000 think tanks are based in OECD countries.

Source: Foreign Policy Research Institute’s Think Tanks and Civil Societies Program

(2007)


Southern think tanks lack resources


Source: Santiso, J. and Whitehead, L. (2006), Ulysses, the Sirens and the Art of Navigation:

Political and Technical Rationality in Latin America,Working Paper No. 256, OECD Development Centre


But local thinking is vital for governance…and ownership!


Source: OECD Development Centre, 2008, based on World Bank Governance Indicators (2007) and data from the Foreign Policy Research Institute’s Think Tanks and Civil Societies Program (2007).


Governments must broaden the policy debate

Broader ownership means (also) engaging with parliaments, local authorities, civil society and the media.

This requires:– Guaranteeing democracy and freedom of information– Reinforcing the role of national democratic institutions– Capacity development for non-state actors

3. Broader Ownership Beyond 2008


Donors should foster local knowledge production

This means:• Reviewing conditionality

– Can performance-based conditions replace policy conditions?• Supporting local research and think tanks

– Endowments & core funding provide resources and promote independence.

– Showing the way: Hewlett Foundation and IDRC Think Tank Initiative.

3. Broader Ownership beyond 2008


www.oecd.org/dev/publications/finance/2008

Financing Development 2008: Whose Ownership?

http://www.oecd.org/dev/publications/finance/2008


www.oecd.org/dev/aeo

• Comprehensive, country-by-country analysis of economic, social, political development• Covers 35 countries: 87% of continent’s population; 95% of economic output• Produced with African Development Bank, UNECA and 5 African thinks tanks• OECD transferred leadership to African Development Bank with 2008 edition

African Economic Outlook 2008: Technical Skills Development


African Economic Outlook impact

Seminar on Capitol Hill Washington D.C, June 2008

International Forum on African PerspectivesParis, June 2008

EU-Africa Summit Lisbon, December 2007 TICAD

Tokyo, May 2008

AfDB Annual MeetingMaputo, May 2008

• International launch at AfDB Annual Assembly: 11th May 2008• European launch: 13th May 2008• Over 40 presentations on 4 continents within 3 months of publication


Thank you !

Further information:

www.oecd.org/dev

www.oecd.org/development/globalforum

[email protected]

http://www.oecd.org/dev

http://www.oecd.org/development/globalforum

mailto:[email protected]

Documents

Annual Ambassadors’ Conference