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1. What Does It Mean for Agencies to Be Effective in a Changing Development Landscape?

Author:
Rachael Calleja, Sara Casadevall Bellés, and Beata Cichocka
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
For official bilateral development agencies, the realities of providing effective development cooperation are increasingly complex, as competing demands and changing international and domestic contexts are raising fundamental questions around what it means to be an effective agency. This paper explores the concept of agency effectiveness to demonstrate why agencies – and their leadership – should consider how their structures and processes interact with the changing landscape as part of their efforts to remain relevant and resilient. To do so, we consider how the current challenges facing agencies – including the need to respond to climate change, global instability, and changing domestic political environments – affect why agencies act, what they do, and how they do it. We then explore dominant understandings of agency effectiveness, which provide a lens for thinking about what it may mean for agencies to be effective in the years ahead. Overall, we suggest that the challenges facing development agencies in the changing landscape raise key issues for agencies to consider, particularly around what they prioritise, how they are structured, and the capabilities or ways of working needed to respond to complex demands. While there is unlikely to be a single approach for agencies looking to adapt to changing contexts, considering the implications of new – and future – pressures for the work of development agencies will be a necessary first step towards supporting their resilience and relevance in the years ahead.
Topic:
Development, Humanitarian Aid, and Economic Development
Political Geography:
Global Focus

2. The Future of Official Development Assistance: Incremental Improvements or Radical Reform?

Author:
Masood Ahmed, Rachael Calleja, and Pierre Jacquet
Publication Date:
01-2025
Content Type:
Special Report
Institution:
Center for Global Development (CGD)
Abstract:
Over the last decade, donor country governments have faced new and additional demands for financing international challenges, including providing global public goods (GPGs) and addressing historically high numbers of refugees and humanitarian crises. They have partly done so by re-allocating their official development assistance (ODA) away from its original aim: to support poverty reduction and growth in developing countries. This has led to questions about the integrity and credibility of ODA. These questions are only likely to grow more pertinent in the coming decade because the pressures on ODA—and on public finances more broadly—are here to stay. ODA budgets are being cut in a number of traditional donor countries and what remains is increasingly being deployed to meet emerging needs beyond traditional development and to reflect a more national security perspective on development cooperation. The time is right, therefore, to ask whether the concept and accounting for ODA need to be modified to ensure that the needy and vulnerable it was designed to serve continue to be protected in the face of fiscal constraints and changing geopolitical circumstances. This report, a compendium on the future of ODA, aims to provide fresh thinking and inspire the action needed for ODA to remain relevant and effective. It brings together reflections and proposals from leading experts and practitioners, including the under-secretary-general and executive director of UNOPS to a former DAC chair, to inform policymakers. In this executive summary, we will introduce the key arguments from the compendium contributors. The contributions are organised into four key areas of discussion that reflect the main themes raised in this compendium: the rationale for ODA reform, the political and institutional realities shaping reform, using ODA for climate and leveraging private finance, and forward-looking proposals for reimagining ODA’s role and purpose.
Topic:
Development, Finance, Humanitarian Crisis, Donors, and Foreign Assistance
Political Geography:
Global Focus

3. Planned Relocation of Climate-Vulnerable Communities: Preparing Multilateral Development Banks

Author:
Steven Goldfinch and Samuel Huckstep
Publication Date:
02-2025
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
Planned relocation of highly climate-vulnerable communities is becoming increasingly necessary as climate shocks become more frequent and intense. It is also becoming more feasible as modelling of future scenarios improves and adaptation limits become clearer. Despite this, many governments are underprepared for planning and implementing planned relocation projects. In the absence of an intergovernmentally agreed framework or set of principles on planned relocation, development finance, and specifically climate finance, is not well positioned to respond to this emerging demand from countries. This is heightened by a widespread absence of coherent domestic policies, and by institutional gaps in international assistance. Multilateral development banks, in particular, could be well-placed to fill this gap. They have extensive experience in undertaking relocation projects, including in contexts of climate adaptation. Multilateral development banks will increasingly field borrower country demand for both technical and financial assistance. They are, however, not yet prepared to meet this demand, nor are countries adequately equipped to make applications for support. This paper outlines emerging public policy regarding planned relocation, draws from existing standards on development-forced displacement and resettlement, and explores entry points for development financiers in providing technical assistance and finance. The paper proposes recommendations to multilateral development banks and the global climate funds on engaging in this emerging area.
Topic:
Climate Change, Development, Refugees, Displacement, Resettlement, and Banking
Political Geography:
Global Focus

4. Mind the Gap: Bridging the Divide between Cooperation Providers

Author:
Beata Cichocka, Rachael Calleja, Sara Casadevall Bellés, and Emma Mawdsley
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
Despite the increasing imperative for cross-provider collaboration, the quest for a truly “global” development paradigm remains elusive, marked by persistent divides between different types of development providers’ normative frameworks, models, experiences, capacities, and institutional allegiances. This paper explores the potential role of countries to act as bridges across these varying institutional, normative, or technical “distances” between providers. We begin by examining why, when, and under what conditions countries choose to act as bridges, given their differing capacities, credibility, knowledge, and willingness to act in the role. We then identify some common types and illustrative examples of bridging countries, including “dual donors,” “development experience” bridges, “political” bridges, and “geographic or cultural” bridges, and explore some of the most common types of actions that they can undertake. While all of these actions—whether joint project implementation, hosting forums, brokering agreements, or contributing to the creation of more inclusive norms and multilateral spaces— require some level of both political and technical commitment, they vary in terms of the level of ambition and mutual trust required to undertake action and therefore provide a broad range of options suited to a variety of contexts, agendas, and actors wishing to play a bridging role. Following a brief examination of the benefits and risks associated with bridging, the paper concludes with some policy recommendations for bridging countries that wish to approach this ambitious challenge more strategically.
Topic:
Development, Government, Donors, and Collaboration
Political Geography:
Global Focus

5. Maximising EU Concessional Finance for Greater Leverage and Impact: An Options Spread

Author:
Mikaela Gavas, Samuel Pleeck, Andrew Rogerson, San Bilal, and Karim Karaki
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
Already constrained by the economic aftershocks of COVID-19, the impact of the war in Ukraine, and the food and climate crisis, low-income countries and lower-middle-income countries now face a combination of soaring debt and high interest rates. Confronted with insufficient liquidity to respond to these challenges and unable to access capital markets, they need additional concessional finance, in the form of grants and soft loans. The European Union (EU) already provides concessional finance, but it is not nearly enough to respond to their growing needs. With European budgets under more strain than ever, this paper puts forward the case for finding ways to maximise the overall efficiency and impact of European concessional finance and in doing so, better articulating and combining grants and concessional loans in its support and investment toolbox. To remain relevant and maintain relationships and influence with partner countries–even more in a world characterised by the polycrisis and geopolitical fragmentation–the EU will have to step up its game when it comes to providing more strategic concessional finance. The paper sets out six complementary and non-mutually exclusive options for maximising EU concessional finance with a view to a strategic set of decisions to be made for the next EU Multiannual Financial Framework.
Topic:
Development, European Union, Financial Institutions, and Sustainable Development
Political Geography:
Europe

6. Disinvesting from Low-Value Health Technologies in Low- and Middle-Income Countries: Between a Solution to the Current Fiscal Crises and a Costly Mirage?

Author:
Adrian Gheorghe and Pete Baker
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
In this policy paper we summarise what is known about healthcare disinvestment and outline documented experiences in low- and middle-income countries (LMICs) to draw insights on what has worked, to what extent, and under what conditions. We reviewed the published literature on documented experiences of attempted healthcare disinvestment in LMICs. We identified two common scenarios when disinvestment initiatives were attempted, namely “one-off” and “systematic” initiatives, and characterised them in terms of objectives, resources and political will. We found four documented examples of one-off disinvestment initiatives—Iran, Malaysia, Romania, and Vietnam, two documented examples of systematic disinvestment initiatives by health technology assessment (HTA) agencies in LMICs—Brazil and China, as well as a range of countries like Thailand, India, and Ghana that carry out systematic disinvestment through routine HTA processes. We conclude that disinvestment is costly, time-consuming, and rarely as successful as policymakers intend. Key considerations to improve the chances of success include whether strong pre-existing health prioritisation systems exist (such as an HTA agency) and whether the design of initiatives are tightly matched to the level of political will, the policy objective, and available resources.
Topic:
Development, Science and Technology, Global Health, and Fiscal Crisis
Political Geography:
Global Focus

7. Why and How Multilateral Development Banks Support Improved Outcomes for Economic Migrants and Refugees

Author:
Helen Dempster, Martha Guerrero Ble, and Stephanie López Villamil
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
Economic migrants and refugees can bring both benefits and costs to their hosting countries. If well-integrated, they can support themselves, their families, and their hosting countries as producers and consumers. Both economic migration and forced displacement are therefore integrally linked with development outcomes. Recognizing this, multilateral development banks (MDBs) are supporting their beneficiary member countries to improve outcomes for economic migrants and refugees, in the form of billions of dollars in grants and loans, as well as technical assistance, policy dialogues, and knowledge exchanges. This paper provides an introductory snapshot of some of the financing instruments, projects, and strategies used; particularly innovative approaches; and challenges MDBs face in expanding their engagement. It is hoped this paper will be useful to anyone who engages with MDBs and wants to understand how they engage on economic migration and forced displacement, particularly as these issues continue to grow in importance.
Topic:
Development, Migration, World Bank, Refugees, and Banking
Political Geography:
Global Focus

8. ABCs of the IFIs: Understanding the World Bank’s IDA21 Replenishment

Author:
Erin Collinson, Clemence Landers, Justin Hurley, and Grace Miner
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
The International Development Association (IDA)—the World Bank’s arm that works in low- and lower-middle-income countries—is one of the largest sources of development assistance for the world’s poorest countries. It is also a crucial tool for resource-constrained governments to borrow on affordable terms compared to other creditors, including Chinese entities. IDA supports eligible countries whose annual per capita incomes fall below an established line (currently $1,315 in FY2024). Because IDA provides grants and highly subsidized loans to its client countries, its funds need to be replenished by donors every three years. Replenishments are year-long negotiations where the World Bank’s shareholding countries, of which the US is the largest, negotiate a policy and financing package for the next three-year cycle. This year, 2024, is an IDA replenishment year for the institution’s twenty-first round of funding (“IDA21”), culminating with a pledging session in December to finalize IDA21’s financing envelope.
Topic:
Development, World Bank, and International Development Association (IDA)
Political Geography:
Global Focus

9. The EU’s Global Role: A Third Node of Power

Author:
Mikaela Gavas and W. Gyude Moore
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
In recent years, a quest for economic security and strategic autonomy have come to define the European Union (EU)’s politics. The need to compete globally for the finite resources required for the green and digital transitions, and rivalries between the US and China for global dominance, are all driving this agenda. And while the COVID-19 pandemic and the war in Ukraine highlighted countries’ global dependencies, deepening geopolitical tensions have brought national security considerations to the fore. At the same time, the rise of populist parties across Europe is fuelling calls for countries’ national interests to play the defining role in development cooperation. This presents a challenging environment for EU development cooperation. Caught up in this new paradigm, development cooperation is increasingly viewed as a lever of hard power and an instrument of influence which can be used to reinforce Europe’s strategic autonomy and economic security. With European interests central to EU development cooperation strategy, the climate of distrust between Europe and its partners is being heightened, given the not-so-distant memory of European vaccine “nationalism” during the COVID-19 pandemic, the different standards some Europeans apply with regards to fossil fuel exploration and the negative repercussions the Green Deal will have on African countries’ growth and development. However, shaping EU development policy in this fashion, with geostrategic interests at its forefront will be more detrimental than helpful for the EU in the medium to long-term, and carries the risk of fuelling conflicts of interest with partners. Geo-economic fragmentation and a trust deficit when it comes to governments and societal institutions are threatening our ability to address pressing global challenges. In Africa, this fracturing is evident in the plethora of Africa plus-one summits, for example, the first ever Korea-Africa summit. Instead of using multilateral vehicles to address development cooperation, this new environment has spawned a diversion of resources toward more bilateral initiatives, where the geopolitical returns are direct and attributable. In this piece, we propose a reset of the EU’s international relations narrative and “third way” for the EU to position itself as a global development player.
Topic:
International Relations, Development, European Union, and Green Transition
Political Geography:
Europe

10. Displacement as a Development Issue: Enabling Public Policy to Unlock Climate Finance in Asia and the Pacific

Author:
Steven Goldfinch
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
Internal displacement in the context of climate change and disasters is now recognized as a development issue with humanitarian consequences. As countries gain a greater understanding of the underlying drivers of displacement, and the corrosive effect it has on development outcomes, re-positioning public policy will be critical in prevention and solutions. To implement these responses, greater volumes of development financing is required. In the absence of dedicated instruments or resources to respond to displacement, utilizing existing sources of development finance, including climate adaptation finance, offers an important stream. This paper looks at the current public policy approaches to displacement across Asia and the Pacific, provides insights into selected country approaches, and explores the role of existing development finance, including the role of climate financial intermediary funds, in reducing the drivers of displacement.
Topic:
Climate Change, Development, Displacement, and Public Policy
Political Geography:
Asia-Pacific