climate change and development cooperation
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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; - PowerPoint PPT PresentationTRANSCRIPT
Joyeeta Gupta
Climate change and development cooperation
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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 Event Item 1948 Universal Declaration on Human Rights Sets the stage for human rights issues (western perspec-
tive) 1960s Developing countries seeking NIEO Sets the stage for demanding a change in the global or-
der (southern, non-aligned movement perspective) 1966 Covenant on Political Rights Rights Legally binding, first generation rights (western demand) 1960s Covenant on Social-Economic Rights Legally binding, second generation rights (Communist
and developing countries) 1970s Articulation of the concept by developing and
developed country experts Articulation of the Right to Development – third genera-tion rights
1981 Banjul Charter Adoption of the Right as the right of peoples by African countries
1986 UN Declaration on the Right to Development Adoption by UN Human Rights Commission, Opposed by US, 8 states abstained from voting; mentions NIEO
1993 Vienna Declaration and Programme of Action (#10)
Adopted by 172 countries at World Conference on Hu-man Rights
1998 Working group on the Right to Development Monitors progress made at UN level on this right. 2000 Millennium Declaration (#11) Adopted by 147 countries 2001 Durban Declaration and Programme of Action
(#19, 28) Discussed the right to development in the context of ra-cism and
2008 UN Human Rights Council 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 Venue/Proposer Percent of national income 1958 World Council of Churches 1% (included private income) 1960 General Assembly Resolution 1% 1964 UNCTAD meeting 1%; 1965/8 OECD DAC reaffirm support for UNCTAD target 1% 1967 G-77 asks for separate minimum target for official flows 1968 Tinbergen, chair UN Committee on Development Planning
proposal 0.75% (including only official con-cessional and non-concessional flows) by 1972
1969 World Bank - Pearson Commission Report: Partners in Development, based on new OECD definitions, methods and data:
0.7% (including only official conces-sional flows (ODA)) by 1975 –1980
1970 International Development Strategy for the Second United Nations Development Decade
1%/ 0.7% (although DCs kept argu-ing for 1%)
1970 UNGA 2626 1% 1975 UNGA 3517 0.7% 2002 International Conference on Financing for Development 0.7% 2002 World Summit on Sustainable Development 0.7% 2005 EU-15 agreed 0.7% by 2015. 2005 Gleneagles 0.7% 2008 UN Summit 0.7% 2009 G20 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 Development theory Goals Solutions
Development cooperation Focus
1950s Post-war reconstruction
Increase GDP Government important Develop infrastructure Economies of scale Import substitution
Reconstruction Technical assistance Community Development
1960s UNDP, IDA, OECD/DAC
Increase GDP & employment; promote balance of payment equilibrium
Pricing policy, Balanced growth Export promotion Regional integration Sectoral plans
To fill trade and investment gaps
1970s North South dialogue
Increase per capita GDP Improve entrepreneurship Minimize governments Integrated rural devp. Employment strategies Redistribution of wealth Governments and markets
Development assistance Bridge savings investment and balance of payment gap Basic human needs
1980s Debt crises of developing countries
Increase macroeconomic stability and fiscal discipline
Improve policies and instruments Privatisation & liberalisation
Conditional aid: Structural adjustment & debt relief; “Washington consensus”
1990s Fall of the Berlin Wall
Enhance human development & reduce poverty Increase entitlements and capability Enhance freedom
Enhance social capital Improve institutions Promote good governance Stakeholder participation Improve markets Deregulate
Humanitarian assistance Democratic governance Good governance Greening of aid
2000 Environmental crises
Promote sustainable development
Generate ideas No simple solutions
Country ownership of policies emphasised Aid only to countries with good governance; Aid for developmental & environmental issues
2008 Credit crises ? ? 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: decision-making, instrumental,planned
Partner:Poor governanceSubstitution effectPolicy substitution
Donor recipient process
Mismatch between priorities and partnersPoor diagnosisTechnical assistanceAdministrative 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
Environmental mainstreaming
Environmentaldestruction
Gender mainstreaming
Gender neglect
Includingmainstreaming
disasters
Environmental mainstreaming
Environmentaldestruction
Gender mainstreaming
Gender neglect
Includingmainstreaming
disasters
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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
Leadershipparadigm
NS
N helps S via CDM
Leadership sans US
EU
S
CEITS
USJSCaNZ
Development
N
S
Pollutio
nInverted U-curve may
be a zig-zag curve
Conditional leadership
US EU
S
N mainstreams cc help in development cooperation
US
Leadership competition
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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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Ideological level
- ODA subsidizesmarket mech.- ODA levels below 0.7%;
Organization level
+ ODA helpscap. buildingesp. in poorestcountries;- ODA diverted from DCpriorities to help ICpurchases
CDM and ODA
Project level
+ ODA leveragesSD; synergy- ODA diverted
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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
Mainstreaming CCIn devp. coop
Academics
NGOs UNDAF
OECD
EUAid
agencies
Devp. Banks
DCs
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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
Ad hoc -------------------------------------------------- fullFrom ad approaches to mainstreaming
Inte-gration
Focus onwin win
Climate proofing
Ad hoc projects
Politically Easy Difficult
Climate change taken into account
Climate change ignored
Dev
elop
men
tag
enda
----------------------------------------------------
Main-streaming
Climate change taken into account
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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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The link between development paradigms and development aid
Pollu
tion p
er c
apita
GDP per capita
DC
IC
Pollu
tion p
er c
apita
GDP per capita
DCDC
ICIC
Pollu
tion p
er c
apita
GDP per capita
DC
IC
Pollu
tion p
er c
apita
GDP per capita
DCDC
ICIC
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The link between development paradigms and development aid
Pollu
tion p
er c
apita
GDP per capita
DC
ICPo
llution p
er c
apita
GDP per capita
DCDC
ICIC
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2
3
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Resources needed
Current ODA
Additional ODA needed for MDGs
ODA needed for Agenda 21
Aid for climate 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
Tim
eMainstreaming
Actual climate assistance
Expectations/ needsActual assistance
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Diverging beneficiaries of assistance
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Mainstreaming: the stages of mainstreaming
Ad hoc -------------------------------------------------- fullThe stages of mainstreaming
Inte-gration
Focus onwin win
Climate proofing
Ad hoc projects
Politically Easy Difficult
Climate change taken into account
Climate change ignored
Dev
elop
men
tag
enda
----------------------------------------------------
Main-streaming
Climate change taken into accountUS aid OECD EU
PL IT DK, NL UK
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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 Nature Conditions of success Political Will mainstreaming avoid the new
and additional argument? 1. Additionality: Increase ODA to 0.7% and raise new and additional re-
sources above this amount and mainstream all assistance subject to conditions below
Who controls the aid? 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 cli-mate change funds.
Development economics
If ODA does not reach the poor, will mainstreaming do so?
5. Prioritise the poorest: In recent years, development cooperation has tried to focus on helping the poorest.
Will mainstreaming in ODA distort markets and create perverse in-centives?
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 possi-ble.
Sustainability Will mainstreaming make aid de-pendency worse?
8. Limit ODA dependency: Ensure that ODA to countries is below a cer-tain % of partner GNI;
9. Climate aid should be seen independent of this. Will mainstreaming within existing
development paradigm create structural sustainability problems?
10. Ensure tripartite decision-making between stakeholders, private parties and governments of both ODA countries and partners to design con-text relevant, locally owned policies. Avoid focus on formulae, effi-ciency, rationality and conditionality and accept clumsy solutions.