Select Committee on International Development First Report


5 Towards a Global Partnership for Development

The limits to policy coherence for development

47. Advocates of the Policy Coherence for Development agenda believe that it will result in developed countries adopting policies which are more development-friendly. On this view, the force of evidence-based rational argument will result in sound, coherent policies, which support development. Sceptics believe that developed countries' decisions about whether to adopt more development-friendly policies will not be influenced by the Policy Coherence for Development agenda. In their view, policies and priorities emerge from the jostling of interests, rather than as a result of the careful balancing of evidence-based arguments. The reality, no doubt, is somewhere in the middle.

48. Policy coherence for development is not a magic bullet which, in one shot, will transform the priorities of the developed world, making international development the primary focus. Policy-making will always be about weighing and prioritising different and sometimes incompatible interests and goals, including development goals. Nevertheless, policy coherence for development does provide an opportunity for governments to improve the policy process, by opening it up; by drawing attention to policy overlaps; by emphasising that policies must be evidence-based if they are to be effective; by making more transparent the ways in which interests and priorities are traded-off; by promoting mechanisms to enhance policy coherence; and, by pushing or enabling governments to be more accountable for the ways in which they weigh different interests and formulate policy. By nudging the policy-making process in these ways, the Policy Coherence for Development agenda may lead governments to design policies which are more development-friendly, and which—by improving governance in the developed world—provide stronger foundations on which to build a global partnership for development.

A global partnership for development

49. The developing world may be wary of the policy coherence for development agenda, fearing that it will become a way of the developed world promoting its own ideas about what is good for development and developing countries.[57] Such fears are not without foundation. At first glance the policy coherence for development agenda might seem to suggest that there is consensus about what is good for development and that all that is needed is for governments to ensure that their policies are driving in the right direction. For some issues, this is clearly not the case. On trade for instance, the EU and many of its Member States argued prior to the Cancún Ministerial that including the "new issues" on the WTO agenda was in the interests of developing countries. Many developing countries disagreed vehemently. If the developed world had pressed successfully for "coherence" around the inclusion of the new issues in the WTO's agenda—perhaps demanding their inclusion in return for reducing agricultural subsidies—this would not, in the view of most developing countries, have been a good thing. But on other issues—including the harm caused to most developing countries by agricultural export subsidies, the need to better regulate the export of small arms, and the need to tackle corruption and increase transparency in the extractive industries and beyond—there is near-consensus.

50. For instance, it is clear to us that Africa needs more financial assistance. There are legitimate concerns about the ability of some countries to spend more aid effectively, but the appropriate response to such concerns is to work harder to increase such countries' absorptive capacity rather than to hold back aid indefinitely. If the G8 and the EU are serious about helping Africa to develop, they need to double aid as well as increasing its effectiveness. Also clear to us is the necessity of rapidly increasing the funding for the Global Fund for HIV/AIDS, tuberculosis and malaria. As regards putting our own house in order, our reports have made recommendations about many issues (see Annex 1); some are worth reiterating. The developed world needs to make more rapid progress as regards: developing a treaty to prevent the transport of small arms and light weapons to conflict regions; improving banking transparency, preventing money laundering, and tracing the proceeds of corruption; and, controlling the activities of mercenaries from G8 and EU countries.

51. To re-state an obvious but important point; coherence in support of misguided policies, or in support of policies around which there is no consensus, is counter-productive. Policy coherence must not become a way of depriving developing countries of their policy space, their right to formulate laws and regulations suited to their own contexts and needs, based on their analysis of the evidence. This risk can best be avoided by ensuring that developing countries have an equal role in shaping the agenda, and ensuring that policy-design is driven by evidence, rather than by ideology.

52. Enhancing the voice(s) of developing countries in agenda-setting and global governance, and building a global partnership for development, requires action by the G8, as the Commission for Africa rightly recognises.[58] The Commission for Africa should encourage the G8 to design mechanisms of mutual accountability, so that not only do developing countries have to show that they are making good use of the aid they receive, but so that the developed world also has to show that it is working hard to ensure that its development objectives and policies are not undermined by policies relating to other issues. This might be done through an extension of peer review processes, to peer-and-partner review processes, assessing the development impact of policies across the board. Or, starting from the recipient end of the aid relationship, it might be done through joint monitoring and evaluation by aid donors and recipients.[59] More emphasis too might be put on the role of parliaments in developing, as well as developed, countries. Parliamentary scrutiny can play an important role in monitoring and enhancing policy coherence for development, and in ensuring that the coherence promoted is supportive of locally-owned development strategies.

53. The Commission for Africa has the opportunity to make an important contribution to building a global partnership for development. For this emerging partnership to be one which works, and which improves over time, each partner must be accountable to the other for its actions. Policy coherence for development offers a way of pushing and enabling the developed world to be more accountable for its actions and inactions. The Commission for Africa can do much to shame and encourage the G8 to take more seriously the issue of policy coherence for development; to ensure that the rich countries' policies are truly supportive of development goals; and, to amplify the demands of developing countries that the developed world keeps its promises. If the Commission for Africa can promote this agenda, and put pressure on the G8 to change the policies which undermine Africa's ability to prosper in the global economy, then 2005 may be a turning point. The opportunity must not be missed.


57   Bretton Woods Project, Harmonisation and coherence: White knights or Trojan horses? Available at http://www.brettonwoodsproject.org/topic/knowledgebank/coherence.pdf Back

58   Commission for Africa, Action for a strong and prosperous Africa, Consultation Document, November 2004, section 9 - see footnote 6 for web-site Back

59   IDC, Fourth Report of Session 2003-04, Kenya: DFID's Country Assistance Plan 2004-07 and Progress Towards the MDGs, HC 494, para 33 - http://www.publications.parliament.uk/pa/cm200304/cmselect/cmintdev/494/494.pdf Back


 
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Prepared 16 December 2004