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Roberto Pasca di Magliano Fondazione Roma Sapienza-Cooperazione Internazionale

GROWTH ECONOMICS and Fund-raising in international cooperation SECS-P01, CFU 9 Development Economics academic year 2018-19. 10. POLICIES FOR DEVELOPMENT AND GROWTH. Roberto Pasca di Magliano Fondazione Roma Sapienza-Cooperazione Internazionale roberto.pasca@uniroma1.it.

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Roberto Pasca di Magliano Fondazione Roma Sapienza-Cooperazione Internazionale

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  1. GROWTH ECONOMICSand Fund-raising in international cooperationSECS-P01, CFU 9Development Economicsacademic year 2018-19 10. POLICIES FOR DEVELOPMENT AND GROWTH Roberto Pasca di Magliano Fondazione Roma Sapienza-Cooperazione Internazionale roberto.pasca@uniroma1.it

  2. Official Development Aid (ODA) evolution and global context More aid and new global actors 2015: Higher peak reached by OCSE-DAC with 135 bln$ Net ODA (+6,1% respect to 2012)  UK: 0,7% GDP ODA in the 2015CPA: fonte: OCSE DAC, 2012 fonte: OCSE DAC 2013 Titolo Presentazione Roberto Pasca di Magliano 23/05/14 Pagina 2

  3. Bilateral and multilateral ODA Roberto Pasca di Magliano

  4. Aideffectiveness International focus on effectiveness and monitoring • Global Partnership forEffective Development Cooperation • Monterrey Consensus 2002 • High-level Forum on Harmonization - Rome 2003 • Paris Declaration 2005 • Accra Agenda for Action 2008 (International Aid Transparency Initiative) • Busan document 2011 (Fouth High Level Forum on Aid Effectiveness), South Corea “Global Partnership for Effective Development Cooperation”: • Forum of bilateral and multilateral donors, beneficiary and donor emerging economies, beneficiary countries, NGOs, civil society • Monitoring based on indicators selected in the 2005 Paris Forum • Reduction/fragmentation of aid • Predictability of aid flows TPresentazione Pasca di Magliano

  5. ODA ineffectiveness in literature • Short, medium, long period • Conditional effectiveness (quality of institutions...) or non-conditional • Linear and non-linear models • Non-significant impact on GDP per capita growth Roberto Pasca di Magliano

  6. Italian engagement and reform Peer Review OECD2015 fonte: OCSE DAC 2014 • DEF engagement from 2013 +10% APS/year • Guidelines annually updated • Reform of the old law n.49/1987 -> 2015 law fonte: OECD DAC 2014 Titolo Presentazione Roberto Pasca di Magliano 23/05/14 Pagina 6

  7. Post-2015 debate: What to do? Millennium Development Goals  only two have been reached within 2015 (1 e 2) Titolo Presentazione Roberto Pasca di Magliano /14 Pagina 7

  8. New finalized objectives • Involvement of beneficiarycountries in the developmentprojects • Movement from donor-centered to recipient-centered • Improvement ofpartnership instead of one-way • Taking care of the coherency of aidpolicies • Increasing the coordinationbetweendonors(avoidingduplicates) • ONU Open Working Group for Sustainable Development, with the followingSustainable Development Goals: • Officialnegotiations in September 2014 • identify 17/19 focus areas Titolo Presentazione Roberto Pasca di Magliano /14 Pagina 8 Pasca di Magliano

  9. EU and Italy in the post-2015 debate • → EC communication February 2013 “A decent life for all” (COM 2013.92) • → Council Conclusions June 2013 «An overarching Post-2015 Agenda» • → EC Communication concerning the role of the private sector, 13 May 2014 • → EC Communication to be held on 3 June 2014 • Italian EU Presidency Priorities: • Promotes shared positions within the EU • Food security • Sinergies Expo and II International Conference on Nutrition • Southern Neighborhood (North Africa and Middle East) Presentazione 23/05/14 Pagina 9 Pasca di Magliano

  10. ODA and International Capital Flows Flows of international capitals to the developing countries (1 trill.US$): FDI flows overcome the APS Titolo Pagina 10 Pasca di Magliano

  11. ODA and public-private partnership (PPP) • WB and UN Agencies are studing a partecipation to the private sector in order to create development sinergies through PPP • EU external cooperation (Blending-> miscela) • 168 projects since 2007 • €1,2 bln EU funds; €32 bln investments • GAVI Alliance: Italy is the main contributor Titolo Presentazione Roberto Pasca di Magliano Pagina 11

  12. New mechanisms of financing Pull mechanisms Roberto Pasca di Magliano 23/05/14 Pagina 12

  13. Pull mechanism in agriculture Centrality of Food security • Development Goals – Post 2015 • EXPO Miland 2015 • International Year of Family Farming (FAO) • Public-Private-Producers Partnership (PPPP) in agriculture • (G20 Summit Toronto 2010 - Canada, US, UK, Australia, Gates Foundation, Mexico, Italy, France) • Effects • → growing global demand (+60% 2050) • → pressures of climate change • → structure of global agricultural production (smallholders) Roberto Pasca di Magliano 23/05/14 Pagina 13

  14. Pull mechanism examples from Africa • → GAVI in Africa: 140 immunization campaigns 2000-2012 • → ImmuniseAfrica 2020 Leader's Declaration – 8 May 2014 (+US$ 700 millions co-financing GAVI of African governments) • → PPPP IFAD 2006 in Uganda for palm oil • → African Agriculture Fund (€150 mn, €10 mn from EU) • → SMEs Agribusiness Fund (€30mn, €15mn EDF) • → PPPP Results – Pilot projects: • Kenya, stocking in loco • Zambia, Bio strengthening • Nigeria, Aflatoxin control [etc…] GAVI fund 2001 - 2013 Roberto Pasca di Magliano 23/05/14 Pagina 14

  15. Conclusions: how to improve ODA in the future • Catalyzing role of the beneficiary country as a development promotor • Promote capacity building in potential beneficiary countries (transparent, credible and efficient institutional assets) through a precise finalization of transfers to international organs • Support programs of local human capital improvement (access to basic needs as fundamental living standards such as fundamental rights, access to food, potable water, basic education and health) • Introduce measures devoted to promote bottom-up development and to improve individual’s resposability (e.g. microfinance) rather the less efficient top-down policies • Open to positive relations with the private sector • Promote public-private partnership through subsidized project financing,in function of the level of backwardness of the beneficiary country • Extend counter trade projects to gather additional resources for local development projects • Promote social investment funds with the support of international fundations as well multinational companies • Promote investment funds based on immigrant saving to support development projects in the countries of origin TPasca di Magliano Presntazione 23/05/14 Pagina 15

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