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Development Cooperation and Emerging Powers

Development Cooperation and Emerging Powers

Sachin Chaturvedi | Thomas Fues | Elizabeth Sidiropoulos | Manmohan Agarwal | Ross Herbert | James Mackie | Enrique Saravia | Zhou Hong | Maximo Romero | Adolfo Kloke-Lesch

(2012)

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Abstract

The current framework of development cooperation is dominated by the experiences of industrialized countries. But emerging economies have begun to accelerate their own development programmes, and attempts to bring them into existing aid models have been met with caution and reservation. This expert, topical volume explores the development policies of Brazil, China, India, Mexico and South Africa, analysing how South-South cooperation has evolved and where it differs from traditional development cooperation. This vital new collection brings together first-hand experience from these countries to provide a forward-looking analysis of the current global architecture of development cooperation and of the possible convergence of traditional and emerging development actors.
Elizabeth Sidiropoulos is the national director of the South African Institute of International Affairs (SAIIA) and the editor-in-chief of the South African Journal of International Affairs. Thomas Fues, trained as an economist, has been with the German Development Institute (DIE) as senior fellow since 2004. Since 2009 he has headed the training department at DIE and he has worked for the German parliament, the Institute of Peace and Development (University Duisburg-Essen), the government of North Rhine Westphalia and the German Advisory Council on Global Change, as well as acting as a freelance consultant. Dr Sachin Chaturvedi is a senior fellow at the Research and Information System for Developing Countries, a think tank sponsored by the Indian Ministry of External Affairs. Until recently he was Global Justice Fellow at the MacMillan Center for International Affairs at Yale University.
'This is a fascinating and informative book: nothing less than a new guide to modern development cooperation. It shows us how the fight against poverty works in a world barreling towards multipolarity. It foretells a new paradigm based on the experiences of the old and the new approaches of the emerging economies in the world Provocative and challenging.' Bert Koenders, UN Undersecretary General and former Minister of Development Cooperation, The Netherlands 'With some large emerging economies assuming an active role alongside traditional 'donors', global development discourse has become more contentious. Featuring top experts from seven countries, this excellent collection reflects these debates. It also explores what values and institutions might realistically coordinate the development efforts of disparate partners which might otherwise impede, cancel or duplicate one another.' Thomas Pogge, Leitner Professor of Philosophy and International Affairs, Yale University 'This book describes the political vision changing the lives of millions in Latin America. It is a manual of thrilling example for us all.' John Pilger

Table of Contents

Section Title Page Action Price
About the editors i
Figures and tables\r vii
Figures vii
6.1 China’s foreign aid management at the beginning of reform 148
6.2 China’s foreign aid policy-making and execution processes afterthe reforms 149
6.3 China’s foreign aid fund appropriation after reform 150
7.1 EXIM Bank’s operative lines of credit as of 1 September 2010 182
8.1 Distribution of cooperation initiatives executed by Mexico 197
8.2 Participation in triangular cooperation by new donors, 2008 198
8.3 Bilateral horizontal South–South cooperation projects, 2009 199
8.4 Mexico, Guatemala and Costa Rica 200
Tables vii
1.1 Comparison of North–South and South–South development partnerships 24
1.2 DAC concepts of development aid 25
2.1 Growth of GDP 39
2.2 Growth in developing countries 39
2.3 Investment rate in developing countries 40
2.4 Exports of goods and services 41
2.5a Inward flows of FDI 42
2.5b Outward flows of FDI 43
2.6 Rates of growth in trade between regions, 1997–2007 46
2.7 Imports supplied by developing countries 46
2.8 Total exports from specified regions to developing countries 47
2.9 FDI and portfolio flows to developing countries (% GDP) 49
2.10 FDI flows from and to developing countries (% of global) 49
5.1 Brazil: technical cooperation agreements with developing countries 129
7.1 Newly established Indian institutes in developing countries 176
7.2 Outflow of India’s development assistance 1990–2011 178
8.1 Cost and economic value of Mexico’s technical and scientific cooperation, 2009 196
9.1 Trends in SACU revenue shares among member states, 2005/06–2008/09 223
9.2 African Renaissance and International Cooperation Fund 228
10.1 Key components of UNCTAD ’s new international developmentarchitecture 258
Abbreviations viii
Foreword x
Introduction 1
Note 10
References 10
Part One: South–South Cooperation 11
1 | Development Cooperation: Contours, Evolution and Scope 13
Introduction 13
SSC and its evolution 16
Theoretical framework 18
Development cooperation 20
Altruism and ‘win-win’: differences between NSC and SSC 22
Table 1.1 Comparison of North–South and South–South development partnerships 24
Table 1.2 DAC concepts of development aid 25
Box 1.1 DAC guidelines for evaluation of development assistance 26
Emerging dynamics of triangular cooperation 29
Overcoming SS C limitations 30
Notes 32
References 33
2 | South–South Economic Cooperation for a Better Future 37
Introduction 37
Recent economic performance 38
Table 2.1 Growth of GDP 39
Table 2.2 Growth in developing countries 39
Table 2.3 Investment rate in developing countries 40
Table 2.4 Exports of goods and services 41
Table 2.5a Inward flows of FDI 42
Table 2.5b Outward flows of FDI 43
South–South trade and investment flows 44
Table 2.6 Rates of growth in trade between regions, 1997–2007 46
Table 2.7 Imports supplied by developing countries 46
Table 2.8 Total exports from specified regions to developing countries 47
Table 2.9 FDI and portfolio flows to developing countries 49
Table 2.10 FDI flows from and to developing countries 49
The future of South–South cooperation 50
South–South involvement in institutional change 56
Conclusions 59
Notes 61
References 61
Part Two: Lessons from the Experiences of Traditional Aid Policies 65
3 | Sixty Years of Development Aid: Shifting Goals and Perverse Incentives 67
Purposes 68
Processes contributing to aid effectiveness 72
Incentives 78
Donor incentives and their signals to recipients 82
Lessons for new donors? 87
Notes 90
References 91
4 | Aid Effectiveness and Emerging Donors: Lessons from the EU Experience 95
Origins of concerns with aid effectiveness 96
Box 4.1 OECD-DAC definition of ODA (Official Development Assistance) 96
Some key issues in effectiveness 102
Why should EU donors continue to be concerned by aid quality? 105
Lessons to be drawn 107
Notes 109
References 110
Part Three: New Actors, New Innovations 113
5 | Brazil: Towards Innovation in Development Cooperation 115
Brazil’s foreign policy drivers 115
Brazil’s international technical cooperation 118
Brazilian technical cooperation framework 120
Brazilian technical cooperation initiatives 124
Table 5.1 Brazil: technical cooperation agreements with developing countries 129
Conclusion 131
Notes 132
References 132
6 | China’s Evolving Aid Landscape: Crossing the River by Feeling the Stones 134
Introduction 134
First period: beginnings of China’s foreign aid – internationalism and patriotism 135
Second period: Deng Xiaoping and foreign aid reform 139
Figure 6.1 China’s foreign aid management at the beginning of reform 148
Figure 6.2 China’s foreign aid policy-making and execution processes after the reforms 149
figure 6.3 China’s foreign aid fund appropriation after reform 150
Third phase: China’s foreign aid in the new age 151
A continual reform process 152
Foreign aid reform and its implications for China’s foreign relations 153
Conclusion 162
Notes 163
References 164
7 | India and Development Cooperation: Expressing Southern Solidarity 169
Introduction 169
Historical evolution 171
Table 7.1 Newly established Indian institutes in developing countries 176
Institutional framework and channels of assistance 177
Table 7.2 Outflow of India’s development assistance 1990–2011 178
Figure 7.1 EXIM Bank’s operative lines of credit as of 1 September 2010 182
Emerging policy options and the way forward 183
Notes 187
References 187
8 | Mexico: Linking Mesoamerica 190
Introduction 190
Mexico’s current international development cooperation activities: an overview 191
A new policy of international development cooperation 194
Statistics on Mexico–South cooperation 195
Table 8.1 Cost and economic value of Mexico’s technical and scientific cooperation, 2009 196
Figure 8.1 Distribution of cooperation initiatives executed by Mexico 197
Figure 8.2 Participation in triangular cooperation by new donors, 2008 198
Figure 8.3 Bilateral horizontal South–South cooperation projects, 2009 199
Figure 8.4 Mexico, Guatemala and Costa Rica 200
Other cooperation projects effected by Mexico 208
Conclusion 212
Notes 213
9 | South Africa : development, international cooperation and soft power 216
Development cooperation in diplomacy 218
South Africa’s development cooperation pre-1994 220
Development partnership in the democratic state 221
Table 9.1 Trends in SACU revenue shares among member states (in billion rands), 2005/06–2008/09 223
Table 9.2 African Renaissance and International Cooperation Fund 228
Conforming with international criteria 236
Challenges for South Africa’s regional development cooperation 238
Notes 239
References 240
10 | Conclusion: Towards a Global Consensus on Development Cooperation 243
Introduction 243
Divergent positions of traditional and Southern providers 245
International platforms 247
A new international framework for development cooperation 254
South–South cooperation 255
New international development architecture 257
Table 10.1 Key components of UNCTAD’s new international development architecture 258
Conclusions and outlook 259
References 261
Afterword 263
About the Contributors 266
Index 268