Transcript Slide 1

Climate change and development cooperation
Joyeeta Gupta
Messages
 Development and climate change are closely linked;
 However, the politics in both arenas are highly charged on a
North-South basis;
 Linking climate change to development cooperation is possible,
but mainstreaming is a problem.
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Climate change and development
 Mitigation
• Development generally coupled
with increased emissions; wise
policy can change that especially
in sectors that are less productive
and less efficient. Beyond that
there are trade-offs
• Mitigation can have ancillary
benefits for development
 Adaptation
• Development can exacerbate
adaptation through (mal)
development
• Development may have synergies
with enhancing resilience
• Adaptation activities can have
ancillary benefits for development
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The Evolution of the Right to Development
Year
1948
Event
Universal Declaration on Human Rights
1960s
Developing countries seeking NIEO
1966
1960s
Covenant on Political Rights Rights
Covenant on Social-Economic Rights
1970s
1981
Articulation of the concept by developing and
developed country experts
Banjul Charter
1986
UN Declaration on the Right to Development
1993
Vienna Declaration and Programme of Action
(#10)
Working group on the Right to Development
Millennium Declaration (#11)
Durban Declaration and Programme of Action
(#19, 28)
UN Human Rights Council
1998
2000
2001
2008
Item
Sets the stage for human rights issues (western perspective)
Sets the stage for demanding a change in the global order (southern, non-aligned movement perspective)
Legally binding, first generation rights (western demand)
Legally binding, second generation rights (Communist
and developing countries)
Articulation of the Right to Development – third generation rights
Adoption of the Right as the right of peoples by African
countries
Adoption by UN Human Rights Commission, Opposed
by US, 8 states abstained from voting; mentions NIEO
Adopted by 172 countries at World Conference on Human Rights
Monitors progress made at UN level on this right.
Adopted by 147 countries
Discussed the right to development in the context of racism and
Establishment of a process to study the human right with
respect to climate change, water and sanitation.
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Global governance: The evolution of the 0.7% target
Year
1958
1960
1964
1965/8
1967
1968
Venue/Proposer
World Council of Churches
General Assembly Resolution
UNCTAD meeting
OECD DAC reaffirm support for UNCTAD target
G-77 asks for separate minimum target for official flows
Tinbergen, chair UN Committee on Development Planning
proposal
1969
World Bank - Pearson Commission Report: Partners in
Development, based on new OECD definitions, methods and
data:
International Development Strategy for the Second United
Nations Development Decade
UNGA 2626
UNGA 3517
International Conference on Financing for Development
World Summit on Sustainable Development
EU-15 agreed
Gleneagles
UN Summit
G20
1970
1970
1975
2002
2002
2005
2005
2008
2009
Percent of national income
1% (included private income)
1%
1%;
1%
0.75% (including only official concessional and non-concessional
flows) by 1972
0.7% (including only official concessional flows (ODA)) by 1975 –1980
1%/ 0.7% (although DCs kept arguing for 1%)
1%
0.7%
0.7%
0.7%
0.7% by 2015.
0.7%
0.7%
Respective ODA commitments
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Development cooperation
 The Right to Development:
• Accepted but under-emphasized
 The 0.7 percent target:
• Accepted, emphasized but not achieved
 The link between the right to development and the 0.7 percent
target:
• Contested
 The MDGs and development cooperation:
• New emphasis on achieving MDGs; but resources have to double if
these are to be achieved.
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Period
Context
2000
Environmental
crises
Development theory
Solutions
Government important
Develop infrastructure
Economies of scale
Import substitution
Increase GDP &
Pricing policy,
employment; promote
Balanced growth
balance of payment
Export promotion
equilibrium
Regional integration
Sectoral plans
Increase per capita GDP
Improve entrepreneurship
Minimize governments
Integrated rural devp.
Employment strategies
Redistribution of wealth
Governments and markets
Increase macroeconomic
Improve policies and
stability and fiscal discipline instruments
Privatisation & liberalisation
Enhance human
Enhance social capital
development & reduce
Improve institutions
poverty
Promote good governance
Increase entitlements and
Stakeholder participation
capability
Improve markets
Enhance freedom
Deregulate
Promote sustainable
Generate ideas
development
No simple solutions
2008
Credit crises
?
1950s
Post-war
reconstruction
1960s
UNDP, IDA,
OECD/DAC
1970s
North South
dialogue
1980s
Debt crises of
developing
countries
Fall of the Berlin
Wall
1990s
Goals
Increase GDP
?
Development cooperation Focus
Reconstruction
Technical assistance
Community Development
To fill trade and investment gaps
Development assistance
Bridge savings investment and
balance of payment gap
Basic human needs
Conditional aid: Structural
adjustment & debt relief;
“Washington consensus”
Humanitarian assistance
Democratic governance
Good governance
Greening of aid
Country ownership of policies
emphasised
Aid only to countries with good
governance;
Aid for developmental &
environmental issues
Reduced resources for aid
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Development and development cooperation
 Donors have had multiple objectives;
 Delivery was often based on simple theoretical formulae
 Aid recipient do not respond in predictable manners (e.g.
conditionality);
 Aid evaluation through quantitative indicators is questionable
 Aid coordination has been donor driven.
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Challenges in the aid process
Donor recipient process
Donor:
Partner:
decision-making,
instrumental,
planned
Poor governance
Substitution effect
Policy substitution
Mismatch between priorities and partners
Poor diagnosis
Technical assistance
Administrative burden
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Development and Development Cooperation
 Lessons from aid:
•
•
•
•
•
•
•
•
•
•
Goal: broaden objective
Nature of aid: Not necessarily catalytic
Indicators: not just macro, but also micro
Aid aligned to country type
Aid should be demand driven and not lead to distortions: Not
conditional
Form of assistance should match need
Aid to NGOs subject to caveats
Quantity of aid: avoid dependency
Balanced aid: poor and other sectors
Donors need to take partnership seriously
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Development and Development Cooperation
 Lessons from aid:
•
•
•
•
•
•
•
•
•
•
Goal: broaden objective
Nature of aid: Not necessarily catalytic
Indicators: not just macro, but also micro
Aid aligned to country type
Aid should be demand driven and not lead to distortions: Not
conditional
Form of assistance should match need
Aid to NGOs subject to caveats
Quantity of aid: avoid dependency
Balanced aid: poor and other sectors
Donors need to take partnership seriously
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Linking climate change to other issues
Gender mainstreaming
Including
mainstreaming
disasters
Environmental
destruction
Environmental
mainstreaming
Gender neglect
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Climate change: Classical North-South issue
 Formal divisions in Convention that both recognizes differences
and fosters differences
 Structural differences:
• In emission levels between average Northern and average Southern
country especially in the past – and this is the most serious
determining factor for climate impacts until 2050.
• If emission levels are to be kept within safe levels – the world budget
for the 21st century is over by 2032.
• Impacts more severe in the South – both location wise; and because
vulnerability is the greatest.
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Climate change: The North-South deal
Leadership
paradigm
Conditional
leadership
Pollution
N
N
S
EU
US
S
S
Development
Inverted U-curve may
be a zig-zag curve
Leadership competition
Leadership sans US
CEITS
US
JSCaNZ
EU
US
S
N helps S via CDM
N mainstreams cc help in development
cooperation
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The context of the North-South deal
 1992: North reduces emissions and helps developing countries
(tech transfer and aid) with new and additional resources (above
existing aid)
 1997: North reduces emissions partly via help to developing
countries (new and additional?)
 1997: Adaptation funding comes from a tax on North-South
cooperation
 2007: North reduces emissions partly via help and climate change
is mainstreamed in ODA
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CDM and ODA
Ideological level
Organization level
Project level
+ ODA leverages
SD; synergy
- ODA diverted
+ ODA helps
cap. building
esp. in poorest
countries;
- ODA diverted
from DC
priorities to
help IC
purchases
- ODA
subsidizes
market mech.
- ODA levels
below 0.7%;
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CDM and SD: An Illusion?
 An illusion
• When SD is dependent on host
country approval and there is
competition between host
countries;
• When contract success is not
based on achievement of the SD
component;
• When SD component is not
verified:
• When IC buy CERs without
checking SD component;
• When SD component is vague and
all-encompassing
 A fact:
• When SD is translated into
quantitative goals that can be
measured??
• When contract success and CER
approval is based also on
achievement of SD component;
• When ICs purchase CERs that
have a clear SD component;
• When a percentage of the project
costs are used for the SD
component;
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Climate Change Regime: Paradigm Shift
 1990s
•
•
•
•
Abstract
Global
Future issue
Economic and technical issue
 2000s
• Real, interfering with daily
activities and needs (MDGs)
• Multi-level
• Current issue
• Development issue: Climate
change is the defining
development issue of our
generation (UNDP 2007)
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Policy evolution towards mainstreaming
 Development
•
•
•
•
•
2002: Donor report
2005: Gleneagles plan
2005: EU
2006: World Bank- CEIDF
2007: OECD Declaration
 Climate change regime
• 1995: AIJ includes national
priorities
• 1997: CDM includes sustainable
development
• 2000: IPCC links cc with sd
• 2007: IPCC links cc with sd
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Mainstreaming: Driving Converging Forces
Aid
agencies
EU
Devp.
Banks
DCs
Mainstreaming CC
In devp. coop
Acade
mics
OECD
NGOs
UNDAF
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Mainstreaming defined
 “Mainstreaming of climate change into development cooperation
is the process by which existing development processes are
redesigned and reorganized, improved, developed and evaluated
from the perspective of climate change mitigation and adaptation.
Mainstreaming implies involving all social actors – government,
civil society, industry, local communities - into the process.
Mainstreaming calls for changes in policy as far upstream as
possible.”
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From Ad hoc approaches to mainstreaming
Politically
Easy ---------------------------------------------------- Difficult
Climate change ignored
Climate change taken into account
Ad hoc
projects
Focus on
win win
Climate
proofing
Integration
Mainstreaming
Ad hoc -------------------------------------------------- full
From ad approaches to mainstreaming
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Climate change and international cooperation
 International cooperation is needed to help developing countries:
• Adopt modern technologies and policies to avoid taking the past
emission route of the North;
• Adopt measures that will enhance the ability of the South to adapt to
the impacts of climate change
 International cooperation includes:
• Climate cooperation
• Development cooperation
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Practical arguments in favour of mainstreaming cc in aid
 Efficiency of use of development resources enhanced since
climate change affects development and development affects
climate change
 There is aid fatigue and no extra money is politically very feasible
 Money is clearly needed for climate change and it is more easily
justified to spend developed countries on climate change than on
development per se
 Transaction costs lower if mainstreamed
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IC
DC
GDP per capita
Pollution per capita
Pollution per capita
The link between development paradigms and
development aid
IC
DC
GDP per capita
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Pollution per capita
The link between development paradigms and
development aid
IC
1
1
2
DC
3
GDP per capita
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Resources needed
Current ODA Additional ODA ODA needed for Aid for climate
needed for MDGs Agenda 21
change
Total
USD billion
100
60-135
125
40-250
315-611
Comment
<0.4% of
donor GNI
Clemens et al.
2007
Ch. 33, Agenda
21
Lit.
Overlaps
Assump-tions
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Political sensitivities
Development cooperation
Climate assistance
1.0% of GNI
0.7% of GNI
Actual assistance
Expectations/ needs
Actual climate assistance
Mainstreaming
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Diverging beneficiaries of assistance
Rich
Poor
Development
cooperation
Climate
Mitigation
Climate
Adaptation
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Mainstreaming: the stages of mainstreaming
Politically
Easy ---------------------------------------------------- Difficult
Climate change ignored
PL
IT
DK, NL UK
US aid
Ad hoc
projects
Focus on
win win
OECD
EU
Climate
Climate change
change taken
taken into
into account
account
Climate
proofing
Integration
Mainstreaming
Ad hoc -------------------------------------------------- full
The stages of mainstreaming
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Conclusion - 1
 Mainstreaming of climate change in development cooperation
does not make sense; it will lead to a diversion of resources.
However, mainstreaming of climate change in development does
make sense!
 Instead, a search for win win options, climate proofing and climate
integration make more sense in relation to development
cooperation. This is not the case for development.
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Conclusion – 2: If Mainstreaming is inevitable ….
Concern
Political
Nature
Will mainstreaming avoid the new
and additional argument?
Who controls the aid?
Development
economics
If ODA does not reach the poor,
will mainstreaming do so?
Will mainstreaming in ODA distort
markets and create perverse incentives?
Sustainability
Will mainstreaming make aid dependency worse?
Will mainstreaming within existing
development paradigm create
structural sustainability problems?
Conditions of success
1. Additionality: Increase ODA to 0.7% and raise new and additional resources above this amount and mainstream all assistance subject to
conditions below
2. Partnership between OECD DAC countries and partners in all relevant
forums – UNDG, OECD/DAC, EU, in C&D decision-making processes
3. Ownership by developing countries of C&D agenda at programme and
project level.
4. Joint accountability of partners: The system should promote mutual
accountability in terms of both appropriate provisions and use of climate change funds.
5. Prioritise the poorest: In recent years, development cooperation has
tried to focus on helping the poorest.
6. Avoid market distortion where appropriate, consider cash transfers to
compensate for climate impacts as a substitute for mainstreamed ODA
projects
7. Design mainstreamed projects with as little market distortion as possible.
8. Limit ODA dependency: Ensure that ODA to countries is below a certain % of partner GNI;
9. Climate aid should be seen independent of this.
10. Ensure tripartite decision-making between stakeholders, private parties
and governments of both ODA countries and partners to design context relevant, locally owned policies. Avoid focus on formulae, efficiency,
rationality and conditionality and accept clumsy solutions.
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