EADI Panel at GDN Conference

18 January 2010

New Crises - New Policy Responses?   Rethinking European Development Cooperation (EDC)

The European Union is seeking a greater voice in global debates amid numerous calls for a new development narrative/paradigm from developing countries, international civil society organizations and development agencies.

The global economic crisis itself marks the end of a relatively benign period for development cooperation of buoyant aid budgets in the OECD-countries (“the North”) and strong commitments to public expenditures on social sectors in the South, reasonable economic growth in many developing countries, relative stability and a consensus on policy parameters and instruments in the Millennium Development Goals (MDGs) and Poverty Reduction Strategy Papers (PRSPs).

The forthcoming period is likely to be far less certain as development cooperation faces multiple and inter-connected crises in climate, and energy, the end of an oligopolistic market with the emergence of new donors and (the as yet) uncertainty on a post-MDG architecture. Such uncertainties not only have the potential to impact adversely on levels of poverty, but also change the context for doing development cooperation.

There is already emerging evidence that the economic crisis itself is leading to significant changes in the context for development cooperation such as in:

Global governance: The G8 to G20 shift means more representation and power for large developing nations but changes in the IMF and World Bank will be crucial for wider changes in governance;

New economic policies: There is likely to be a greater tendency for developing countries to explore new development models; approaches from China, the ‘Beijing Consensus’ are more likely to be taken up than Western prescriptions;

Greater social protection: The scale of food and financial crises has made a powerful case for better social protections systems.  But building ownership in governments and civil societies remains a challenge in securing long term budget allocations;

A green(er) economy: There is a strategic opportunity to use the fiscal stimuli to promote a shift to lower carbon development but political pressure to implement such measures as quickly as possible, and to protect or create as many jobs as possible in the process may mitigate this.

What do these and other changes to the context for development cooperation imply for the European Union and its partner countries? How should EDC respond to these challenges?

Format: Roundtable. The panelists will get to make a 5 to 10 minute statement before engaging in a debate led by Nanna Hvidt. The remaining half hour of the session will be open to questions from the floor.

Session Chair:

Nanna Hvidt, Director, Danish Institute for International Studies / Denmark

Panelists

Alison Evans, Director, Overseas Development Institute / United Kingdom

Alfred Nhema, Director, Pan African Development Center / Ethiopia

Nadarajah Shanmuguratnam, NORAGRIC, Univ of Life Sciences /Norway (tbc)

11th Annual Global Development Conference
Regional and Global Integration: Quo Vadis?

GDN conference website