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1. The Future of EU Blended Finance and Guarantees: An Assessment of Cooperation Strategies with Least Developed Countries in Africa

Author:
Erik Lundsgaarde
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The European Fund for Sustainable Development Plus (EFSD+) is a core element of EU development cooperation and reflects the EU’s strong commitment to deploying blended finance and guarantees as development financing tools. This discussion paper examines the EU’s intentions concerning how the EFSD+ will be integrated into geographic programmes, focussing on the least developed countries (LDCs) in Africa. Based on a review of the Multiannual Indicative Programmes (MIPs) for 30 African LDCs as well as the regional MIP for Sub-Saharan Africa covering the period 2021-2027, the paper provides an overview of funding reserved for EFSD+ implementation in geographic programmes, identifies the expected EFSD+ sectoral priorities and summarises references to development finance institutions (DFIs) as EFSD+ implementation partners. This descriptive review highlights issues for the future monitoring and assessment of the EFSD+. The paper points to uncertainty about the magnitude of the management challenge that EU institutions face in EFSD+ implementation given the difficulties of predicting the scale of guarantee-backed operations in individual countries, the lack of information on the expected volume of blended finance operations, and the limited analysis of how EFSD+ tools relate to other EU funding approaches. The paper also notes that EU institutions should be more explicit about the criteria shaping EFSD+ resource commitments to clarify relevant prerequisites for the effective deployment of EFSD+ tools. Finally, the broad thematic scope for EFSD+ use implies that knowledge about how blended finance and guarantees function and how the financing approaches interact with other interventions needs to increase throughout the EU system.
Topic:
Development, European Union, Finance, Sustainability, and Cooperation
Political Geography:
Africa and Europe

2. The EU-UNDP Partnership and Added Value in EU Development Cooperation

Author:
Erik Lundsgaarde
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
European Union (EU) funding for United Nations (UN) organisations has expanded significantly over the last two decades. The EU’s partnership with the United Nations Development Programme (UNDP) is an important example of EU-UN cooperation, and UNDP was the fourth-largest UN recipient of European Commission funds in 2018. Against the backdrop of UN and EU reforms that aim to strengthen multilateralism and promote more integrated development cooperation approaches, this paper outlines priority areas in EU-UNDP cooperation and modes of cooperation. The term “added value” provides an entry point for identifying the rationales for EU funding to UNDP. In EU budgetary discussions, added value is a concept used to inform decisions such as whether to take action at the EU or member state levels or which means of implementation to select. These choices extend to the development cooperation arena, where the term relates to the division of labour agenda and features in assessments of effectiveness. The paper explores three perspectives to consider the added value of funding choices within the EU-UNDP partnership relating to the division of labour between EU institutions and member states, the characteristics of UNDP as an implementation channel and the qualities of the EU as a funder. On the first dimension, the large scale of EU funding for UNDP sets it apart from most member states, though EU funding priorities display elements of specialisation as well as similar emphases to member states. On the second dimension, UNDP’s large scope of work, its implementation capacities and accountability standards are attractive to the EU, but additional criteria – including organisational cost effectiveness – can alter the perception of added value. Finally, the scale of EU funding and the possibility to engage in difficult country contexts are key elements of the added value of the EU as a funder. However, the EU’s non-core funding emphasis presents a challenge for the UN resource mobilisation agenda calling for greater flexibility in organisational funding. Attention to these multiple dimensions of added value can inform future EU choices on how to orient engagement with UNDP to reinforce strengths of the organisation and enable adaptations envisaged in UN reform processes.
Topic:
Development, United Nations, Reform, European Union, Partnerships, and Funding
Political Geography:
Global Focus

3. Earmarked Funding for Multilateral Development Cooperation: Asset and Impediment

Author:
Max Otto Baumann and Erik Lundsgaarde
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The United Nations development system and other multilateral organizations have increasingly been funded through earmarked contributions. This has implications for their ability to effectively and independently perform the functions member states’ expect of them.
Topic:
Development, International Cooperation, United Nations, Multilateralism, Development Aid, and Funding
Political Geography:
Global Focus

4. Germany’s Funding to the UNDS: Towards a Better Mix for Stronger Multilateralism

Author:
Silke Weinlich, Max Otto Baumann, and Erik Lundsgaarde
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Germany has become the second-largest funder of UN humanitarian and development work, but its funding is rather fragmented and restricted. To be an effective supporter of multilateralism, the German Government should adopt a coordinated, strategically informed approach to funding UN organizations.
Topic:
Development, Humanitarian Aid, United Nations, and Multilateralism
Political Geography:
Europe and Germany

5. The Aid Effectiveness Agenda: Past experiences and future prospects

Author:
Erik Lundsgaarde and Lars Engberg-Pedersen
Publication Date:
06-2019
Content Type:
Special Report
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The 2005 Paris Declaration on Aid Effectiveness provided an important framework for encouraging donor and partner countries to adapt aid management practices to make development cooperation more effective. The agenda it advanced has since lost visibility, even among aid providers that were once its strongest advocates. This DIIS report, written by Senior Researcher Erik Lundsgaarde and Senior Researcher Lars Engberg-Pedersen, indicates that there are several explanations for the declining attention to Paris Declaration principles. Implementation of the agenda was challenging from the outset due to different starting points among countries, the tension between a universal approach and the need to adapt cooperation approaches to varied contexts, and the tradeoffs involved in implementing prescriptions such as increasing partner ownership, strengthening donor coordination, and improving results management. In spite of these challenges, the authors argue that core ideas from the Paris Declaration remain valid today. In particular, the importance of fostering partner ownership and measuring results has not faded. Improving the consistency of how donors pursue these objectives in practice is essential in carrying lessons from decades of development cooperation experience forward.
Topic:
Development, Diplomacy, Environment, International Organization, Treaties and Agreements, Natural Resources, and Global Political Economy
Political Geography:
Global Focus

6. Has the Paris Declaration Disappeared? Revisiting the Aid Effectiveness Agenda

Author:
Erik Lundsgaarde and Lars Engberg-Pederesen
Publication Date:
07-2019
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The 2005 Paris Declaration on Aid Effectiveness has lost visibility. However, core emphases such as ownership and managing for results remain important if progress is to be made with the Sustainable Development Goals. Recommendations ■ Explanations for the lost momentum on aid effectiveness should have a central place in future dialogue. ■ Development partners should reengage with the principles of ownership and managing for results as the central ideas in the effectiveness agenda. ■ Donors should analyse tensions between ownership and results in their approaches to ensure longterm development effectiveness. • The SDGs should be emphasized as a basis for creating a legitimate framework for ownership and directing the focus on results.
Topic:
Development, Treaties and Agreements, United Nations, Sustainable Development Goals, and Paris Agreement
Political Geography:
Global Focus

7. The Future of European Development Cooperation: Seeking Global Solutions or Retracing a Niche by 2020?

Author:
Sven Grimm and Erik Lundsgaarde
Publication Date:
11-2009
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This article discusses the future prospects for European Development Cooperation. The authors argue that the way EU policy for global development will look in the future will depend on how the organization manages two key challenges. The first challenge relates to the changing political dynamics within an enlarged EU and the need to accommodate a diverse set of preferences concerning development policy priorities. The second challenge stems from an evolving external environment characterized by an increasing emphasis on global public goods and the multiplication of global development players. While both of these challenges place pressure on the existing European development consensus, they also offer an impetus for strengthened coordination in the development policy sphere at the European level.
Topic:
Development and Globalization
Political Geography:
Europe