Shaping an Inclusive and
Comprehensive Approach to
Development: Towards an OECD Development: Towards an OECD Strategy on Development
Kyung Wook Hur
Ambassador and Permanent Representative of Korea to the OECD and Co- chair of the OECD Development Strategy Informal Working Group
Why a Development Strategy?
Why a Development Strategy?
A. Changing global landscape – emerging poles of growth
Why a Development Strategy?
Why a Development Strategy?
Changing global landscape – emerging poles of growth
Non-OECD economies have strengthened their voice, demanding to be treated as equal partners
Changing global landscape – new sources of finance and knowledge
Why a Development Strategy?
Why a Development Strategy?
7000 8000 9000
Official Development Assistance from and to Non-DAC Members, net disbursements (2009 USD millions)
0 1000 2000 3000 4000 5000 6000 7000
2003 2004 2005 2006 2007 2008 2009
Donor Recipient
Why a Development Strategy?
Why a Development Strategy?
Changing global landscape – changing geography of poverty.
More heterogeneity in the developing world = No “one-size-fits-all” development strategies
1990s 2000-2007
B. The globalisation of development challenges calls for collective action
(e.g.on climate change, food and energy security, water governance, illicit financial payments).
• Climate change threatens all countries, with developing countries the most vulnerable. A 2°C warming, the minimum expected, could reduce GDP 4-5% in Africa and South Asia (World Development Report 2010).
Why a Development Strategy?
Why a Development Strategy?
Africa and South Asia (World Development Report 2010).
• Between 2007 and 2008, the number of undernourished increased by 8% in Africa (The State of Food Insecurity in the World 2011).
• Total illicit flows from developing countries have been estimated to be between USD 850 billion to USD 1 trillion per year, far exceeding inflows from Official
Development Assistance and Foreign Direct Investment (Better Policies for Better Development) .
C. OECD’s work is increasingly in demand by developing countries, as the OECD is seen as a house of good practices and policy
“pathfinder”.
OECD work with Developing Countries
Why a Development Strategy?
Why a Development Strategy?
18%
14% 36%
19%
13% Africa
Asia
Eastern Europe
Latin America and the Caribbean
Middle East and Northern Africa
OECD work with Developing Countries
D. Need for continuous knowledge sharing
to enrich our tools and instruments and make them more relevant to members and non-members.The OECD offers developing countries:
• Policy sharing and dialogue platforms (WP-EFF, APF, SWAC, Global Forum, DAC Networks, Enhanced Engagement programmes)
Why a Development Strategy?
Why a Development Strategy?
Networks, Enhanced Engagement programmes)
• Facilitating a space for developing countries to share knowledge and create a
“network of influence”
OECD’s Commitment to PCD
Conceptual Phase:
recognition of the need for coherence
• DAC Strategy Shaping the 21stCentury (1996)
• DAC Guidelines on Poverty Reduction (2001)
Learning phase: Analysis and Monitoring
• PCD chapter in DAC Peer Reviews (since 2002)
• Analysis, case studies and workshops
Increased Coordination and Political
Commitment
• Dedicated PCD unit in the SG’s office (2007)
• Ministerial Declaration (2008)
Reduction (2001)
• Paris Declaration (2005)
workshops
• Building Blocks
(2008)
• OECD Council
Recommendation on good practices (2010)
• Policy Framework for PCD:
Testing phase (2011)
• Towards an OECD Strategy on Development
What is the OECD’s comparative advantage?
What is the OECD’s comparative advantage?
• Arm’s length diagnostics, the OECD as an ‘honest broker’, multidisciplinary analysis and integrated approaches
• Combining our development expertise with thematic experience across the OECD in areas that are important to development
• A variety of tools and approaches (peer reviews, policy reviews,
• A variety of tools and approaches (peer reviews, policy reviews, standards and data)
• Access to a network of policy communities and in house analytical
expertise
Informal Working Group
(Co-chaired by an Ambassador and the DSG in charge of Development)
MCM MINISTERS
OECD Secretariat
OECD Strategy on Development (Roles and division of labour)
Mandate
Direction and Coordination
Members
(including DAC and DEV chairs)
Partner Countries
(EE5, Russia)
Priority Areas
in charge of Development)
INNOVATIVE AND SUSTAINABLE
SOURCES OF GROWTH
MOBILISATION OF RESOURCES
FOR DEVELOPMENT
GOVERNANCE FOR DEVELOPMENT
MEASURING PROGRESS FOR DEVELOPMENT
PCD Unit (facilitator)
and DEV chairs) (EE5, Russia)
Cross-Directorate task teams
DevHeads+
Implementation
The Strategy: Four main areas of focus The Strategy: Four main areas of focus
1. Innovative and sustainable sources of growth
2. Mobilising resources for development 3. The options to improve governance for 3. The options to improve governance for
development
4. The new ways to measure progress for
development
1. Innovative and Sustainable Sources of Growth 1. Innovative and Sustainable Sources of Growth
Different development paths and phases...
Economic development requires countries transit through different phases in their development process. The trajectory that they follow through different stages is idiosyncratic to the country and to the policies that it implements.
…will require different factors to ignite and sustain economic development Factors that ignite and help sustain economic development often differ
Factors that ignite and help sustain economic development often differ according to the stages and trajectories of the development process.
Consequently, countries need specific policies, institutions and framework conditions to transition successfully through the different phases.
• Need for country-specific growth strategies
Country-specific growth strategies that adapt to the current development phase and the institutional context could make successful transitions more likely.
1. Innovative and Sustainable Sources of Growth 1. Innovative and Sustainable Sources of Growth
•Taking in to account OECD’s deep knowledge in different policy domains and its experience in the use of knowledge sharing
methods:
a.Policy support for Individual Countries.
a.Policy support for Individual Countries.
b.Policy support for countries that share common challenges
and spillovers.
1. Innovative and Sustainable Sources of Growth 1. Innovative and Sustainable Sources of Growth
a. Policy support for Individual Countries:
– Phase 1: Diagnostic to identify constraints to growth.
– Phase 2: Policy support, based on the diagnostic, considers in depth policy support in a – subset of critical areas, by thematic directorates ( Review of Innovation Policies (DSTI), – Policy Framework for Investment (DAF), Territorial Reviews (GOV), etc.)
b. Policy Support for Countries sharing similar challenges/spillovers:
– Groups of countries work together with the OECD in the identification of policy solutions to a agreed set of challenges on the basis of evidence-based analysis and knowledge sharing.
– Examples: Countries rich in natural resources
– Countries with significant presence in integrated value chains – Countries affected by significant migration flows.
1. Innovative and Sustainable Sources of Growth 1. Innovative and Sustainable Sources of Growth
c. Global “upscaling” of outputs.
• This category would include a small group of selected currently available outcomes that can be expanded at the global level with an incremental effort.
effort.
• Examples: PISA, The Green Growth Knowledge Platform, Perspectives on
Global Development.
The Strategy: Four main areas of focus The Strategy: Four main areas of focus
1. Innovative and sustainable sources of growth 2. Mobilising resources for development
3. The options to improve governance for 3. The options to improve governance for
development
4. The new ways to measure progress for
development
2.
2. Mobilisation Mobilisation of Resources for Development of Resources for Development
• Monterrey Consensus : what matters is the combination of tax investment, private sector, aid, remittances, debt etc.
• Monterrey still valid but context has changed : shifting wealth, the crisis, illicit flows.
• More and more countries are simultaneously both the source and destination of development financing.
• Dangerous to prescribe one formula for the type and level of resources needed in each case.
• Ultimately, it’s the domestic that matters most : taxation, savings and
investment that are key to effective and resilient states and economies.
2.
2. Mobilisation Mobilisation of Resources for Development of Resources for Development
OECD Added Value
• Deep experience in taxation, investment and aid/development cooperation.
• Policy coherence : cross border issues where developing
• Policy coherence : cross border issues where developing countries acting alone cannot solve their problems.
• Analysis on the interaction between different financial flows
for development.
2.
2. Mobilisation Mobilisation of Resources for Development of Resources for Development
Engaging Developing Countries
• Committees/Boards (e.g. Development Centre Board membership and networks; adherents to the OECD Declaration on International Investment).
• Forums and partnerships (e.g. Global Forum on Tax Transparency, 100+ members; Working Party on Aid Effectiveness).
• New models (e.g. multi stakeholder Tax and Development
Task Force).
2.
2. Mobilisation Mobilisation of Resources for Development of Resources for Development
Illustrative Proposals
• Preceded by health warnings: on interpreting ‘demand’ and on avoiding ‘silos’.
• Policy Coherence (e.g. roll out support on transfer pricing to developing countries or extend Due Diligence Guidance on developing countries or extend Due Diligence Guidance on Supply Chains beyond Africa).
• New Tools/Instruments (e.g. a tax statistics data base or a new DAC Recommendation on Good Pledging Practice).
• Flagship Reports (e.g. a series on combined development
finance : aid as a catalyst for trade, tax, innovative finance).
The Strategy: Four main areas of focus The Strategy: Four main areas of focus
1. Innovative and sustainable sources of growth 2. Mobilising resources for development
3. The options to improve governance for 3. The options to improve governance for
development
4. The new ways to measure progress for
development
3. Governance for Development 3. Governance for Development
• Why governance for development?
– Link between governance and growth – Governance as development
• Contextual challenges
– Heterogeneity of developing and emerging countries – Heterogeneity of developing and emerging countries
– Global economic crisis and need for agile effective state institutions
– Emerging middle class and demands for transparency and accountability – Demographic transition (e.g. autonomy of women, youth bulge)
– Global challenges (e.g. climate change) and rise of technology
– Governance gaps
3. Governance for Development 3. Governance for Development
OECD strength in Governance
• Content
– Horizontal governance frameworks
– Specific governance areas such as integrity in the public sector, regulatory frameworks
– Governance issues in specific sectors, such as natural resource management and corporate governance.
• Process
– Policy expertise, networking, dialogue and access to information – Capacity to access networks of governance practitioners
– Platforms for global, regional and local dialogue
– Ability to bring together a wide-range of partnering countries
3. Governance for Development 3. Governance for Development
OECD-wide proposals for action on Governance for Development
– Country and regional work to address governance challenges
– Increase value-added of country-specific approaches
– Pursue regional dialogues and knowledge sharing through partnerships
– New tools and instruments (e.g. public sector metrics)
– Develop focused indicators, tools, briefs, and benchmarks – Apply political economy analysis
– Committeees & Global Fora for dialogue, consultation on tools
– Seize near-term opportunities (HLF4 Busan, Global Fora on Development and later, Public Governance )
