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181. Are Development Finance Institutions Good Value for Money?

Author:
Paddy Carter
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
Finance institutions take money from foreign aid budgets to invest in private enterprises. How much should they be given? We can make some progress on that question by looking at the return on investment in the form of higher real incomes for workers and customers, and comparing that to a cash transfer benchmark. There is considerable uncertainty, but what evidence we have suggests returns on investment are in a range that compares well to that benchmark. There is also a diversification argument that because we don’t know which of the things that aid can finance will ultimately prove most important for poverty eradication, aid allocation should hedge its bets. A low single digit percentage of aid allocated to increase the quantity and quality of private investment in low- and middle-income countries seems reasonable.
Topic:
Development, Foreign Aid, Finance, Investment, and Institutions
Political Geography:
Global Focus

182. Some Unpleasant ODA Arithmetic

Author:
Ranil Dissanayake and Atousa Tahmasebi
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
Official development assistance is supposed to be designed to prioritise the economic development and welfare of developing countries. The OECD’s Development Assistance Committee is a club of wealthy donor countries which collaborate to set rules and norms to this effect. However, digging into the official data submitted by donors to the OECD reveals some unpleasant truths. We use data on every funding line reported by donors to the OECD between 2006 and 2019 to investigate the pattern and distribution of commitments and disbursements of ODA to developing countries, and discover that ODA is targeted poorly within the group of eligible developing countries; that this group of eligible countries is gradually expanding to include more relatively wealthy places; that aggregate ODA flows are organized and structured sub-optimally; and that ODA responds more to arbitrary income classifications than it should. We suggest informational and incentive reforms in response. These findings also suggest limits to what realistic reform of ODA can achieve, and, consequently, the importance of non-aid development policy for outcomes in developing countries.
Topic:
Development, International Cooperation, Foreign Aid, and Welfare
Political Geography:
Global Focus

183. Rethinking Humanitarian Reform: What Will it Take to Truly Change the System?

Author:
Patrick Saez, Jeremy Konyndyk, and Rose Worden
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
This brief summarizes three years of research under the project, “Rethinking Humanitarian Reform,” led by Jeremy Konyndyk, Patrick Saez, and Rose Worden, and funded by the aid departments of the United Kingdom and Australia. The project aimed to understand the incentives behind the humanitarian system and shift them to better prioritize the needs of affected populations.
Topic:
Development, Humanitarian Aid, Reform, and Institutionalism
Political Geography:
United Kingdom, Europe, Australia, and Global Focus

184. The Commitment to Development Index 2021

Author:
Ian Mitchell, Lee Robinson, Beata Cichocka, and Euan Ritchie
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
The Commitment to Development Index (CDI) ranks 40 of the world’s most powerful countries on policies that affect more than five billion people living in poorer nations. Because development is about more than foreign aid, the CDI covers eight distinct policy areas: Development Finance Investment Migration Trade Health Environment Security Technology
Topic:
Security, Development, Environment, Health, Migration, Science and Technology, Finance, Investment, and Trade
Political Geography:
Global Focus

185. A Review of Multilateral Development Banks’ Investments in Childcare

Author:
Megan O'Donnell, Kelsey Ross, and Shelby Bourgault
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
The COVID-19 pandemic has led to an unprecedented increase in unpaid care work all over the world, causing women to leave the workforce, reversing decades of progress on gender equality, and resulting in increased focus and empathy around the global childcare crisis. Recognizing a gap in the evidence regarding multilateral development banks’ current (and historical) investments in childcare solutions, in this paper we seek to establish a baseline, exploring the extent to which MDBs have invested in childcare over time, across geographies, and through various sectors and activities. Using project data from eight multilateral development banks’ project databases, we compiled all projects with a childcare component from 2000 to June 2021. Our analysis explores best practices across institutions, identifies gaps and areas for improvement, and makes recommendations for how MDBs can increase and improve investments in childcare.
Topic:
Development, Multilateralism, Banks, Pandemic, COVID-19, and Childcare
Political Geography:
Global Focus

186. Do Evolving Digital Trade Rules Create an Uneven Playing Field? Understanding Global Perspectives

Author:
Michael Pisa and Ugonma Nwankwo
Publication Date:
08-2021
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
This brief is based on a roundtable hosted by CGD as part of the Governing Data for Development project, which explores how governments can use data to support innovation, development, and inclusive growth while protecting citizens and communities against harm.
Topic:
Development, Economics, International Trade and Finance, and Digital Economy
Political Geography:
Global Focus

187. Are Current Models of Data Protection Fit for Purpose? Understanding the Consequences for Economic Development

Author:
Michael Pisa and Ugonma Nwankwo
Publication Date:
08-2021
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
This brief is based on a roundtable hosted by CGD as part of the Governing Data for Development project, which explores how governments can use data to support innovation, development, and inclusive growth while protecting citizens and communities against harm.
Topic:
Development, Economics, Privacy, and Models
Political Geography:
Global Focus

188. The Quality of Official Development Assistance

Author:
Ian Mitchell, Rachael Calleja, and Sam Hughes
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
The Quality of Official Development Assistance (QuODA) measures and compares providers of official development assistance (ODA) on quantitative indicators that matter most to development effectiveness and quality. It aims to encourage improvements to the quality of ODA by highlighting and assessing providers’ performance. QuODA considers the agency-level measures and characteristics in areas that evidence suggest matters to development and where providers have made commitments. It is a dashboard of key indicators rather than a full assessment of how effective ODA has been, which depends on a wider set of actors and factors. This is the fifth edition of QuODA; it has been substantially revised since the last iteration. The indicators are based on the evidence of what matters to ODA impact and the principles agreed by 161 counties following a series of international meetings leading up to Busan in 2011 and taken forward by the Global Partnership for Effective Development Cooperation.
Topic:
Development, International Cooperation, Humanitarian Intervention, and Development Assistance
Political Geography:
Global Focus

189. How Do Development Agencies Support Climate Action?

Author:
Rachael Calleja
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
This paper explores how development agencies are integrating climate action into development portfolios in response to calls to scale-up climate engagements in alignment with both the Sustainable Development Goals and the Paris Agreement. Using data compiled on all 30 members of the Organisation for Economic Co-operation and Development’s Development Assistance Committee (OECD-DAC), this paper maps and analyzes trends in both the scale and usage of official development assistance allocated to support climate activities and the tools and approaches used to integrate climate across development activities. This paper shows that while climate has become a key priority for development agencies, there remains scope for deepening integration by improving monitoring and reporting of climate and development results, integrating climate considerations across the life cycle of projects, and searching for complementarities across agencies.
Topic:
Climate Change, Development, Environment, and Green Transition
Political Geography:
Global Focus

190. Comparison Between the IPCC Reporting Framework and Country Practice

Author:
Jiarui Chen and Martin Dietrich Brauch
Publication Date:
07-2021
Content Type:
Special Report
Institution:
Columbia Center on Sustainable Investment
Abstract:
The 2006 Intergovernmental Panel on Climate Change (IPCC) Guidelines (IPCC 2008) for National Greenhouse Gas Inventories (IPCC Guidelines) provide a recommend- ed (but not mandatory) methodology for preparing Na- tional Inventory Reports (NIR), which all Annex I Parties2 to the United Nations Framework Convention on Climate Change (UNFCCC) must submit every year (Romijn et al. 2019). In practice, however, many countries apply modi- fied methodologies in their NIRs to reflect country-specif- ic situations better. While helpful in addressing country specificities, those modified methodologies may result in emission data that is less standardized and therefore harder to compare and consolidate. Also, the IPCC recom- mends that countries adopt higher tier methods and use more granular data. Since different emissions categorized by the IPCC3 can be calculated by multiple methods, and the granularity and quality of country emissions databas- es vary, different countries adopt different granularity lev- els and tier methods (IPCC 2008). The 160 Non-Annex I Parties to the UNFCCC (most of them developing countries) are not required to submit NIRs every year, but must submit Biennial Update Re- ports (BURs), including a national inventory report and information on mitigation actions, needs, and support re- ceived (Kainou 2016). Following the same IPCC Guidelines as NIRs, BURs are different from NIRs mainly in terms of reporting scope. The IPCC Guidelines require countries to report greenhouse gas (GHG) emissions in NIRs from 1980 to the latest reporting period, while for BURs they merely encourage countries to submit summary informa- tion tables of inventories for previous submission years.4 Besides the required BURs, more Non-Annex I Parties have been submitting NIRs and Technical Annexes on REDD+ in recent years (Romijn et al. 2019). In 2020, 23 Non-Annex I Parties submitted NIRs (UNFCCC 2020). We recommend that the IPCC adopt, based on a man- date from the Conference of the Parties to the UNFCCC, a consolidated framework to indicate best practice for each emissions category. A consolidated framework would help unify the granularity levels and standards across all coun- tries’ NIRs. It could also be extended to countries that have not adopted the IPCC Guidelines or published NIRs. Since an increasing number of Non-Annex I Parties are submit- ting NIRs to the UNFCCC, it is crucial to have a widely appli- cable framework that developing countries can also use. A consolidated framework would also make it easier for countries to communicate their emissions reductions goals in their Nationally Determined Contributions (NDCs) under the Paris Agreement on Climate Change. With the Paris Agreement, countries established an enhanced transparency framework (ETF): starting in 2024, countries will report transparently on actions taken and progress in climate change mitigation, adaptation measures, and support provided or received. It also provides for interna- tional procedures for the review of the submitted NIRs. A standardized reporting framework for NIRs would comply with the requirement of transparency framework under Paris Agreement (Winkler et al. 2017). To exemplify how a consolidated framework would work, after a background note on scopes and approaches in greenhouse gas reporting (section 1), we present the re- sults of our empirical research on the NIRs of Australia, Germany, Japan, and the United States, focusing on the differences in the choice of methodology (section 2) and emission factors (section 3). Then we conduct a case study on the German iron and steel industry, exploring the dif- ferences in emission reporting under different methods (section 4). Finally, we study the case of China, which has submitted BURs but not yet published annual NIRs, to understand how the IPCC Guidelines could be applied to more countries (section 5). We outline our findings and recommendations in section 6.
Topic:
Climate Change, Development, Environment, and International Cooperation
Political Geography:
Global Focus