The Future of Development Cooperation Coalition Newsletter #2

While tumult continues on the international stage, the future of development cooperation has only become more important, not less. And while today’s headlines offer little reassurance, I was struck during the last month, including at the Munich Security Conference and with colleagues from the Ubuntu Commission, by the seriousness of the conversations taking place. Across countries of all income levels – from the poorest to the diverse group referred to as “middle powers” and others committed to development, there was a quiet but unmistakable determination to think beyond short-term disruption and chart a more durable path forward.

We aim to make a meaningful contribution to that effort. The Coalition is now moving into direct consultations on our work, starting this month in Mexico City, advancing its research agenda, and leaning into the hard questions.

Warmly,

Alexia  

Co-chair Yemi Osinbajo recently addressed the Africa Business Forum about the Future of Development Cooperation Coalition and the threats and challenges of the moment. As he put it, “The coalition is asking a simple but urgent question: how must development cooperation evolve so that countries can achieve economic transformation at scale?” Well worth a watch:

The Munich Security Conference was a hotbed of activity this year with conversations and occasionally sharp disagreements on everything from the future of the transatlantic relationship to international trade and international development, and a great deal in-between. The official report of the conference put all of this in refreshingly frank language, saying that we have entered an era when “wrecking ball politics” is now “the order of the day.”

The report’s discussion of development is noteworthy in that it observes that increasingly transactional approach by donors led Ghanaian President John Mahama to observe, “This is not merely a funding gap. It is a crisis of imagination, a vacuum of solidarity, and a deep failure of shared responsibility.”

But as the coalition has repeatedly argued, development is about much more than donor assistance, and while aid cuts are as regrettable as they are short-sighted, LMIC’s are forging ahead.

Here is Alexia Latortue in Munich making the case that development is not the aid industry. Instead, it is the hard work of building sound macroeconomic frameworks, strong institutions, credible policy environments, and mobilizing finance from many different sources to accelerate progress.

Here is a brief write-up from the Hamburg Sustainability Conference on the two side events that they hosted in Munich, and a hat tip to them for pulling these important sessions together. Also, and very much apropos to the Munich conversation, here is an interesting new paper from Nicole Goldin and Irfana Khatoon published by UN University on “Understanding Middle Powers in Development Cooperation.”  And Devex has a good roundup from Munich as well.

Amina Mohammed, the Deputy Secretary-General of the United Nations, Bärbel Kofler, the German Minister for Economic Cooperation and Development, and Mark Suzman, the CEO of the Gates Foundation all share their thoughts on the coalition and the challenges it faces.

Our colleague Clémence Landers of the Center for Global Development recently participated in a two-day gathering of researchers, policymakers, and practitioners convened by the UK government at Wilton Park, England. The closed-door meeting focused on identifying practical, actionable ideas to help place low-income countries on a more sustainable debt footing.

The challenge is stark. For many countries—particularly in sub-Saharan Africa—more external finance is leaving their economies than entering. A significant share of development resources is being diverted away from investment in growth and development and toward servicing external debt in ways that are increasingly untenable.

Addressing the burgeoning debt crisis will require sustained attention and concerted action from donors, creditor countries, and international institutions alike.

Watch this space—this is an issue to which we will be returning.

Alexia Latortue and John Norris of the coalition secretariat make the case that we are “On the Cusp of a New Era of Development.”

Mavis Owusu-Gyamfi of the African Center for Economic Transformation on “What We’ll be Watching for at the 39^th Annual African Union Summit.” The piece includes some terrific data including this: “ACET’s analysis has shown that if debt servicing were capped at a more manageable 10% in just 21 African countries, they could unlock over $230 billion…”

Lastly, the Partnership for International Politics and Diplomacy for Health offers “Insights on Global Health Reform Discussions, Trends and Perspectives.”