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31. The Development Policy System under Pressure: Acknowledging Limitations, Sourcing Advantages and Moving towards a Broader Perspective

Author:
Victoria Gonsior and Stephan Klingebiel
Publication Date:
01-2019
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This paper uses the development policy system as an entry point assuming that various fundamental changes along three dimensions – narratives (why?), strategies (what?) and operational approaches (how?) – can be observed over recent years. Changes are diverse, ranging from new narratives translated to the development policy context (such as the migration narrative) to strategic considerations (for instance, developing countries’ graduation implications), new instruments (in form of development finance at the interface with the private sector), and concepts for project implementation (including frontier technology). We discuss the implications and effects of these trends in terms of holistic changes to the wider development policy system itself. Do these changes go hand-in-hand with and ultimately build on and re-inform each other? Or are we actually observing a disconnect between the narratives that frame the engagement of actors in development policy, their strategies for delivery, and operational approaches in partner countries? Based on a consultation of the appropriate literature and information gathered during a number of expert interviews and brainstorming sessions, this paper sheds light on these questions by exploring current trends and by highlighting continuing disconnections between the “why”, “what” and “how” in the development policy system. Further, we argue that the importance of such disconnections is increasing. In particular, the persistent or even increasing disconnections in the development policy system can be more problematic in the face of a universal agenda and the need to upscale delivery to achieve the Sustainable Development Goals (SDGs)
Topic:
Development, Science and Technology, United Nations, Sustainable Development Goals, and Public Policy
Political Geography:
Germany and Global Focus

32. The Treaty of Aachen: Opportunities and Challenges for Franco-German Cooperation in Development Policy and Beyond

Author:
Laura-Theresa Krüger and Julie Vaillé
Publication Date:
01-2019
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
On 22 January 2019, France and Germany signed the Treaty of Aachen, which – among other things – foresees a stronger coordination and cooperation in the field of development policy. Against the backdrop of the Agenda 2030, the need for collective action has rarely been higher. Yet, although formal agreements on Franco-German cooperation were initially made in the 1963 Élysée Treaty, preliminary research insights point to the fact that cooperation has so far been driven more by opportunity than by strategy. That is why this study seeks to analyse the main obstacles to Franco-German cooperation in global development and how these play out in practice. To this end, it provides an assessment of Franco-German cooperation in support of global sustainable development in general, as well as in two particular cases. These are the Sahel Alliance, founded on a French initiative and confirmed by France, Germany and the European Union in 2017 with a view to increasing coordination and effectiveness to the benefit of development and security in five Sahel countries; and a second initiative providing assistance to developing and emerging countries in conceiving and implementing their nationally determined contributions (NDCs), the NDC Partnership. The NDC Partnership was launched at the 22nd Conference of the Parties of the United Nations Framework Convention on Climate Change (COP22) in Marrakesh in 2016 on an initiative by Germany, Morocco and the World Resources Institute (WRI). Against this backdrop, the study formulates policy recommendations as to how Franco-German cooperation could be enhanced to the benefit of global development.
Topic:
Security, Development, International Cooperation, and Treaties and Agreements
Political Geography:
Europe, France, Germany, and North Africa

33. Literature Review: Drivers of Migration

Author:
Jana Kuhnt
Publication Date:
01-2019
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Why do people leave their homes? This seemingly easy question requires a more complex answer. What ultimately prompts a person to leave if it is impossible to find a job due to a conflict that has destroyed all economic opportunities? Evidence suggests that the migration decision is a complex process that is dependent on a multitude of factors, such as migration governance regimes, migration and smuggler networks, access to technology, or individual characteristics such as age, gender and educational background. I use a theoretical framework to present the variety of determinants that have been put forward as influencing migration decisions at the macro-, meso-, and micro-level. This structured overview discusses their importance for different forms of migration and subsequently helps to identify gaps for further research.
Topic:
Migration, Immigration, Refugees, and Economic Development
Political Geography:
Germany and Global Focus

34. Integrated Policymaking: Choosing an Institutional Design for Implementing the Sustainable Development Goals (SDGs)

Author:
Anita Breuer, Julia Leininger, and Jale Tosun
Publication Date:
01-2019
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Implementing the 2030 Agenda in an integrated way poses new challenges to political institutions and processes. In order to exploit synergies and to mitigate trade-offs between the Sustainable Development Goals (SDGs), innovative governance approaches are needed. National bodies to coordinate SDG implementation were being created as of late 2015. As a basis for future analyses on effectiveness, it is important to know if, and which, institutional designs are in place to implement the SDGs and why they were chosen. Against this background, this Discussion Paper analyses how political factors influence institutional design choices when it comes to implementing the SDGs. The aim of this paper is twofold: First, it seeks to assess governments’ proposals for institutional designs for SDG implementation at the national level and to identify patterns of institutional designs. It does so by analysing and coding the Voluntary National Reviews from 2016 and 2017 of 62 signatory states, including OECD and none-OECD countries from all world regions and income groups. Second, it aims to explain which political and socio-economic factors shaped these institutional designs. The empirical analysis shows that the majority of countries have opted for a design that promotes political support at the highest level and cross-sectoral, horizontal integration, but has significant shortcomings in terms of social inclusiveness and vertical coordination across different levels of government. When asking which determinants shape these patterns, our findings reveal that horizontal integration becomes more likely with higher socio-economic development. Moreover, we find that vertical integration and societal integration are interdependent and mutually enforcing. Based on our findings, we formulate policy recommendations regarding the institutional requirements for integrated SDG implementation.
Topic:
Development, Sustainable Development Goals, and Institutions
Political Geography:
Germany and Global Focus

35. Freshwater as a Global Commons: International Governance and the Role of Germany

Author:
Elke Herrfahrdt-Pähle, Waltina Scheumann, Annabelle Houdret, and Ines Dombrowsky
Publication Date:
01-2019
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Water is essential for all life on earth and is a key prerequisite for attaining many of the Sustainable Development Goals (SDGs). Many countries, however, suffer from physical water scarcity, a lack of access to a safe water supply and sanitation, water pollution or hydrological extremes (droughts and floods) due to climate change. The generality and severity of water problems lead many to speak of a global water crisis. While this crisis mostly manifests at the local or in some cases transboundary level, two global issues are often overlooked. First, global trends such as climate change and the spread of water-intensive consumption and trade patterns are key triggers that cannot be addressed at the local level alone. Second, the aggregation of local or regional water problems may add up to a universal threat to sustainable development. In the face of current challenges, (fresh) water should be conceptualised as a global common good, and global water governance should contribute to improving its protection. This study reveals that the current global water governance architecture is a highly fragmented and incoherent regime consisting of numerous norms, paradigms and actors, each covering single aspects of global water governance. Given the diversity of issues, a “classical” formation of one comprehensive international water regime in the form of a framework convention, and equipped with a specific global governance institution (such as for climate stability, biological diversity or the prevention of desertification) has so far not emerged. The authors suggest a global water governance regime that could evolve from the improved interplay of the existing elements of global water governance (i.e. norms, targets, paradigms and actors). This could be complemented by two innovations at UN level: installing an Intergovernmental Body on Water allowing for mandated decisions on water in the UN system, and a Scientific and Practice Panel on Water improving the science-policy interface. Such an approach that combines global norms and joint guidelines to be adapted to local contexts and needs may be able to increase urgently needed political support for governing water as a global commons, beyond the nation-state interests and their perception of water resources as sovereign goods.
Topic:
Environment, Water, Governance, and Sustainable Development Goals
Political Geography:
Europe, Germany, and Global Focus

36. What Do We Know about Post-Conflict Transitional Justice from Academic Research: Key Insights for Practitioners

Author:
Charlotte Fiedler and Karina Mross
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Societies that have experienced violent conflict face considerable challenges in building sustainable peace. One crucial question they need to address is how to deal with their violent past and atrocities that were committed – for example, whether perpetrators should be held accountable by judicial means, or whether the focus should be laid on truth telling and the compensation of victims. Transitional justice (TJ) offers a range of instruments that aim to help societies come to terms with their history of violent conflict. Systematic, empirical analyses of TJ instruments have been emerging over the last years. This Briefing Paper summarises the policy-relevant insights they provide regarding the main TJ instruments: trials; truth commissions; reparations for victims; and amnesties.
Topic:
Conflict Resolution, Transitional Justice, Political Science, Peace, and Justice
Political Geography:
Colombia, Germany, and Global Focus

37. Potential of Blockchain Technology for Trade Integration of Developing Countries

Author:
Jakob Schwab and Jan Ohnesorge
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Blockchain technology (BT), famous due to its use in digital currencies, also offers new opportunities in other fields, one of which is trade integration. Developing countries especially could benefit from greater trade integration with BT, as the technology can, for example, remedy deficiencies with regard to financial system access, intellectual property protection and tax administration. BT allows virtually tamper-proof storage of transactions and other data on decentralised computer networks. In fact, it is possible to store not only data, but also entire programmes this securely: Smart contracts enable the automation of private transactions and administrative processes. This article summarises the latest research on the use of BT in trade integration by examining in more detail five key and, in some cases, linked fields of application. The first is trade finance, where BT could deliver direct cost savings for exporters and importers by removing the need for credit-lending intermediaries. Second, tamper-proof storage of information on the origin and composition of goods could enhance supply chain documentation. This makes it possible to more reliably verify compliance with sustainability standards, particularly for globally produced goods. However, for the information in blockchains to be truthful, it must be entered correctly (it is then tamperproof), a process that therefore requires monitoring. Third, BT could deliver improvements in the field of trade facilitation by making it easier for border authorities to access information on goods and thus easing reporting requirements for exporting firms. By reducing dependence on central database operators, BT could help bring about a breakthrough with existing digital technology in the area of trade. Fourth, facilitating access to information on goods could also simplify customs and taxation procedures and make them less vulnerable to corruption and fraud. This goes hand in hand with cost reductions for exporters and better mobilisation of domestic resources for public budgets. Fifth, in the field of digital trade, BT also facilitates management of digital file rights in environments where, for institutional reasons, there is little intellectual property protection. This could help to promote digital industries in developing countries. However, when it comes to using BT in border and customs systems in particular, it is essential to involve the relevant authorities at an early stage. At the same time, it is necessary to promote uniform technical standards for supply chain documentation in order to safeguard interoperability between the different systems across actors and national borders and thus fully leverage the cost advantages. If these guidelines are taken into account, then BT could effectively support sustainable trade integration of developing countries.
Topic:
Science and Technology, Currency, Trade, Integration, and Blockchain
Political Geography:
Germany and Global Focus

38. Investment Facilitation for Development: A New Route to Global Investment Governance

Author:
Axel Berger, Sebastian Gsell, and Zoryana Olekseyuk
Publication Date:
01-2019
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
While global investment needs are enormous in order to bolster the implementation of the 2030 Agenda for Sustainable Development, developing countries are often excluded from global foreign direct investment (FDI) flows. Beyond economic fundamentals like market size, infra¬structure and labour, the impediments to FDI in developing countries relate to the predictability, transparency and ease of the regulatory environment. In contrast, tax incentives and international investment agreements (IIAs) have been found to be less important (World Bank, 2018). To harness the advantages of FDI, it is critical that governments have policies and regulations in place that help to attract and retain FDI and enhance its contribution to sustainable development. The 2030 Agenda and the Addis Ababa Action Agenda, thus, call for appropriate international frameworks to support investments in developing countries. In this context, the Joint Ministerial Statement on Investment Facilitation for Development adopted at the 11th Ministerial Conference of the World Trade Organization (WTO) in December 2017 called for the start of “structured discussions with the aim of developing a multilateral framework on investment facilitation”. Investment facilitation refers to a set of practical measures concerned with improving the transparency and predict¬ability of investment frameworks, streamlining procedures related to foreign investors, and enhancing coordination and cooperation between stakeholders, such as host and home country government, foreign investors and domestic corporations, as well as societal actors. Despite the deadlock in the WTO’s 17-year-old Doha Round negotiations, the structured discussions on investment facilitation, which have been under way since March 2018, show that the members of the WTO take a strong interest in using the WTO as a platform to negotiate new international rules at the interface of trade and investment. In contrast to previous attempts by developed countries to establish multilateral rules for investment, the structured discussions are mainly driven by emerging and developing countries. Most of them have evolved over the past years into FDI host and home countries reflecting the changing geography of economic power in the world. Their increased role has led to a shift of policy agendas, focusing on practical measures to promote FDI in developing countries while excluding contentious issues such as investment liberali¬sation and protection, and investor–state dispute settlement (ISDS). This policy brief provides an overview of the emerging policy debate about investment facilitation. We highlight that four key challenges need to be tackled in order to negotiate an investment facilitation framework (IFF) in the WTO that supports sustainable development.
Topic:
Development, World Trade Organization, Sustainable Development Goals, and Investment
Political Geography:
Germany and Global Focus

39. Democracy Support and Peaceful Democratisation after Civil War

Author:
Karina Mross
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Evidence exists that democracies are particularly stable, yet also that processes of democratisation are highly susceptible to conflict, especially if democratisation occurs in the aftermath of violent conflict. New research from the German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE) indicates that external democracy support can help mitigate the destabilising effects of post-conflict democratisation. Since the 1990s, democracy support has been integral to most peacebuilding efforts. Supporting free and fair elections or a vibrant media seems well-suited for fostering peace: Democratic institutions can actively deal with societal conflicts, in sharp contrast to authoritarian regimes, which often rely on repression. However, altering power relations through more political competition can also trigger power struggles, which newly emerging democratic institutions may have difficulty containing. Therefore, questions arise regarding countries that have embarked on a process of democratisation after civil war: Can democracy support help to mitigate destabilising effects, or does it reinforce them? If it can foster peace, how should it be designed in order to avoid renewed violence? The wisdom or folly of supporting democracy to build peace after civil war has caused controversy, yet has rarely been tested empirically. This briefing paper summarises findings from DIE research that addresses this gap.
Topic:
Civil War, Democratization, Conflict, Institutions, and Peace
Political Geography:
Germany and Global Focus

40. Dismantling the Myth of the Growth–Inequality Trade-Off

Author:
Mario Negre, Jose Cuesta, Ana Revenga, and Prescott J. Morley
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Conventional economic wisdom has long maintained that there is a necessary trade-off between pursuit of the efficiency of a system and any attempts to improve equity between participants within that system. Economist Robert Lucas demonstrated the implications of this common economic axiom when he wrote: “Of the tendencies that are harmful to sound economics, the most seductive, and in my opinion the most poisonous, is to focus on questions of distribution [...] the potential for improving the lives of poor people by finding different ways of distributing current production is nothing compared to the apparently limitless potential of increasing production.” (Lucas, 2004) Indeed, many economists have suggested that too little inequality or too generous a distribution of benefits may undermine the individual’s incentive to work hard and take risks. Setting aside the harsh rhetoric used by Lucas, the practical and ethical acceptability of such a trade-off is debatable. Moreover, evidence from recent decades suggests that the trade-off itself is, in many cases, entirely avoidable. A large body of research has shown that improved competition and economic efficiency are indeed compatible with government efforts to address inequality and reduce poverty, as assessed in a World Bank report (World Bank, 2016). Contrary to another common belief about economic interventions, this research indicates that such policy interventions can be tailored to succeed in all countries and at all times; even low- and middle-income countries in times of economic crisis can successfully pursue policies to improve economic distribution, with negligible negative impacts on efficiency and, in many cases, even positive ones. Some examples of such pro-equity and pro-efficiency measures include those promoting early childhood development, universal health care, quality education, conditional cash transfers, rural infra-structure investment, and well-designed tax policy. Overall, four critical policy points stand out: 1. A trade-off is not inevitable. Policymakers do not need to give up on reducing inequality for the sake of growth. A good choice of policies can achieve both. 2. In the last two decades, research has generated substantive evidence about which policies work to foster growth and reduce inequalities. 3. Policies can redress the inequalities children are born into while fostering growth. But the wrong sets of policies can magnify inequalities early in life and thereafter. 4. All countries can, under most circumstances, implement policies that are both pro-equity and pro-efficiency.
Topic:
Governance, Inequality, Economic Growth, and Economic Policy
Political Geography:
Germany and Global Focus