Chapter II.C International development cooperation
1. Introduction ration in 2000. However, at 0.3 per cent of donor The 2030 Agenda for Sustainable Development will gross national income (GNI), it falls short of the place significant demands on public budgets and commitment by many donors to achieve the target capacities, which require scaled up and more effec- of 0.7 per cent of ODA/GNI. In the Addis Agenda, tive international support, including both conces- developed countries reaffirm their respective ODA sional and non-concessional financing. To mobilize commitments, and urge all those that have not met this support, the Addis Agenda contains a range of their targets to make additional concrete efforts. commitments and actions on official development ODA providers further commit to reverse the declin- assistance (ODA). It also contains commitments ing trend of ODA to the least developed countries and actions on South-South cooperation, lending by (LDCs) and other countries most in need, many of multilateral development banks (MDBs) and other whom will continue to rely on concessional finance international development cooperation efforts. to meet sustainable development needs. Yet, in 2014, ODA reached an all time high in 2014, at ODA to LDCs decreased by 9.3 per cent in real US$137.2 billion, and has increased by nearly 70 per terms compared to 2013, and aid to other priority cent since the adoption of the Millennium Decla- groups fell as well (see Figure 4). Given increasing Figure 2C Net ODA received by priority groups of countries from Development Assistance Committee donors, 2000 – 2014 (Billions of of 2013 dollars) 40 Africa
35 LDCs
30 LLDCs
SIDS 25
20
15
10
5
0 0 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 1 0 1 1 2 1 3 1 4 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0
Source: OECD/DAC data. 70 Addis Ababa Action Agenda — Monitoring commitments and actions demands on ODA, for example from in-country ages them to support country-driven priorities and refugee costs, there is a risk that ODA to LDCs will strategies. continue to fall. The Addis Agenda also encourages develop- 2. Official development assistance ing countries to strengthen South-South coopera- The Addis Agenda reaffirms ODA commitments. It tion. South-South cooperation has been increas- further commits to prioritizing the allocation of con- ing in recent years according to various estimates, cessional international public finance to those with along with growing South-South trade, investment the greatest needs and least ability to mobilize other and regional integration. Different approaches and resources. The Addis Agenda goes beyond earlier modalities of South-South development cooperation international agreements to include a commitment render reporting on broad global trends challeng- to reverse the recent decline in ODA to LDCs, to ing, but the availability of information about South- encourage ODA of 0.2 per cent of GNI to LDCs, South cooperation is increasing and efforts are under and to recognize those countries that allocate at least way, including within the United Nations System, to 50 per cent of ODA to LDCs. It also highlights the further improve estimates. importance of ODA for the poorest and most vul- Beyond increasing the magnitude of conces- nerable countries. Specifically, the Addis Agenda: sional finance, all providers also commit to increas- Reaffirms existing ODA commitments (0.7 ing the quality, impact and effectiveness of their per cent of GNI to developing countries and development cooperation, including the adherence 0. 15-0.20 per cent of GNI to LDCs) (51, to agreed development cooperation effectiveness MoI 17. 2) principles. They further commit to take into account Commits to reverse decline in ODA to the the three dimensions of sustainable development in LDCs (52); Encourages ODA of 0.2 per cent of all international public finance, and to share knowl- GNI to LDCs (51); is encouraged by coun- edge about their respective efforts. tries that allocate at least 50 per cent of ODA In recognition of their significant potential to to LDCs (51) finance sustainable development, MDBs are encour- Commits to open, inclusive and transparent aged to adapt and be fully responsive to the sus- discussions on the modernization of ODA tainable development agenda. In response, MDBs measurement (55) announced their intention to extend financing for sustainable development at the sidelines of the Third The data to track these commitments can be International Conference on Financing for Develop- drawn from Organization for Economic Coopera- ment, held in Addis Ababa, by making better use of tion and Development (OECD) ODA data, which their balance sheets, among other measures. New covers bilateral flows from the 29 OECD Develop- development finance institutions, recently set up ment Assistance Committee (DAC) members, disag- and welcomed in the Addis Agenda, will provide an gregated by recipient and donor countries on both additional source of international public finance for a commitments and disbursements basis. Progress sustainable development investments, in particular made by members to these commitments is tracked in sustainable infrastructure. and presented on the OECD website. This data will Additional sources of international public be used for sustainable development goal (SDG) finance — including climate finance, humanitarian indicator 17. 2. 1 (net official development assistance, finance, and innovative sources of finance — further total and to least developed countries, as a percentage add to the international public financing landscape of OECD/Development Assistance Committee donors’ for sustainable development. The Addis Agenda gross national income), which will also support the emphasizes both the importance of meeting all exist- work of the Inter-agency Task Force. ing commitments and of achieving greater coherence Reporting on ODA commitments by the Mil- in all development financing. The Addis Agenda also lennium Development Goals (MDG) Gap Task acknowledges the role played by multi-stakeholder Force aggregated this data for LDCs and other partnerships in financing certain sectors and encour- groups of countries most in need and deserving International development cooperation 71 special attention, and this Task Force will continue tion as an increasingly important element thereof. this practice. In particular, it will follow trends in The Addis Agenda welcomes the increased contri- ODA to LDCs to assess whether the decline in ODA bution of South-South cooperation and specifically: to LDCs is reversed. The Task Force, building on Encourages developing countries to voluntarily analysis by the OECD, will also monitor additional step up their efforts to strengthen South-South concrete measures by DAC members to target sup- cooperation (57) port to countries most in need, as foreseen by the Commits to strengthening triangular coop- December 2014 DAC High-Level Meeting (HLM) eration (57) and reaffirmed by the February 2016 HLM. This information will be regularly updated on the HLM South-South cooperation is also an important follow-up site and will be reported by the Task Force. element of SDG 17 on the global partnership and In paragraph 50, the Addis Agenda highlights means of implementation (MoI), but commitments that international public finance is important in par- in SDG 17 are focused specifically on science, ticular in the poorest and most vulnerable countries. technology and innovation (17.6) and capacity As such, the Task Force should also report ODA building (17.9). Two indicators to monitor these flows to other groups of countries, such as land- MoI targets can support the work of the Task Force: locked developing countries (LLDCs), small island 17.6.1 (number of science and/or technology cooperation developing States and African countries (SIDS), agreements and programmes between countries, by type alongside LDCs. In addition, the OECD monitors of cooperation) and 17.9.1 (dollar value of financial and country programmable aid (CPA) from 46 provid- technical assistance (including through North-South, ers of development assistance through the Survey on South-South and triangular cooperation) committed Donors’ Forward Spending Plans. CPA is considered to developing countries). However, calculating dollar to be a good a proxy for aid recorded at the country values is subject to methodological challenges, in level and effectively received by recipient countries part due to the way technical assistance is carried out from different country groups. in the context of South-South cooperation. Southern With regard to the modernization of ODA, 1 experts are usually dispatched by their governments OECD DAC members agreed at the December 2014 to provide technical assistance and their service DAC HLM to introduce a grant equivalent system is rarely procured in an open market. Moreover, for the reporting of ODA loans to more accurately reporting currently is only partial. Nonetheless, compare the effort involved in providing ODA loans these indicators could, in future years, serve to with that of providing grants. Reporting and pub- capture commitments contained in this subsection. lishing of the current headline figure of ODA loans The Task Force will also go further to assess on a cash-flow basis will continue alongside the new trends in South-South cooperation more broadly. grant equivalent based reporting system for trans- Southern partners embrace different approaches parency purposes, and the grant-equivalent system and modalities in South-South cooperation and do will become the standard of reporting of data from not document their cooperation in a comparable way, 2018. Consultation and outreach on ODA moderni- which will render reporting on broad global trends zation included discussions with a wide range of rel- challenging. However, the availability of informa- evant stakeholders, including partner countries and tion about South-South cooperation has improved providers beyond the DAC. in recent years. Some southern partners already 3. South-South and triangular have a reporting system in place at the country level, which allows for systematic reporting on a regular cooperation basis. For example, India, Mexico, Qatar and Tur- In the Addis Agenda, governments express their key report on their development cooperation on a determination to increase all forms of international yearly basis. Other countries choose to publish their public finance and recognize South-South coopera- development cooperation through other channels
1 Total official support for sustainable development is a separate process, and is discussed later in this chapter. 72 Addis Ababa Action Agenda — Monitoring commitments and actions rather than annual reporting. For example, China In response to General Assembly resolution has published two White Papers on its foreign aid. 50/119 of 20 December 1995, the United Nations There have also been efforts to document bilat- Office for South-South Cooperation also prepares eral South-South cooperation at the regional level. an annual report on “the State of South-South Ibero-American countries publish an annual report Cooperation”, which focuses on the United Nations on South-South cooperation since 2007. The report system’s support for South-South cooperation. has developed a comprehensive framework to docu- The OECD collects data from 20 countries ment the quantity and quality of Ibero-American and territories beyond the DAC on their develop- and bilateral South-South cooperation. In addition, ment cooperation programmes, and estimates devel- southern multilateral institutions provide detailed opment cooperation for another ten countries, cov- and disaggregated information about their opera- ering the main southern providers of development tions in their corporate reporting. For example, the cooperation. Although the OECD does not usually India, Brazil and South Africa (IBSA) Fund Sec- refer to these countries as South-South cooperation retariat prepares an annual report, which includes partners, several of them describe themselves as such. both financial and qualitative information. The A report covering 2013 figures was published 3 and Islamic Development Bank and the Organization of 2014 figures are available online. These are regularly Petroleum Exporting Countries (OPEC) Fund for updated. 4 Southern partners also engage in volun- International Development report on their opera- tary reporting on their aid-for-trade support at the tions in their annual reports. World Trade Organization’s (WTO) biennial Global At the global level, and in response to the Reviews of Aid for Trade. mandate of the Development Cooperation Forum There are also efforts under way to further (DCF) to review trends and progress in interna- improve estimates of South-South cooperation at tional development cooperation, the United Nations the global level. The ultimate goal of a global review Department of Economic and Social Affairs (DESA) of South-South cooperation should be to help those submits a biennial report to the DCF that provides engaged in South-South cooperation better learn an estimate of the scale of global South-South and from each other, better match the support and the triangular cooperation, its geographical and sectorial needs as well as better support sustainable develop- distribution, and its effectiveness and impact. More ment. Under the auspices of the DCF, a group of elaborated analysis is contained in DESA’s Interna- Southern partners undertake dialogues on issues of tional Development Cooperation Report. In quan- common interest on South-South cooperation. They titative terms, DESA estimated total South-South have initiated discussions on how to better reflect cooperation at between US$16. 1 billion and US$19 the contribution of South-South cooperation at the billion in 2011, accounting for some 10 per cent of global level. Some think tanks are also working to total development cooperation, based on aggregat- propose frameworks to capture South-South coop- ing official concessional resources (concessional eration at the global level. For example, the United loans and grants as well as debt relief and technical Nations Conference on Trade and Development cooperation) that are provided within the South for (UNCTAD) is working with the Network of South- development purposes. 2 Estimates based on partial ern Think-Tanks to try and harmonize definitions data available show that such South-South develop- and approaches to the measurement of South-South ment cooperation may have reached US$20 billion cooperation. in 2013 as a result of a major increase in contribu- To monitor the commitment to strengthen tri- tions from some Arab countries. angular cooperation, the Task Force will be able to
2 UN, 2014, Trends and progress in international development cooperation, Report of the Secretary-General E/2014/77. 3 Development cooperation by countries beyond the DAC, available from http://www.oecd.org/dac/dac-global- relations/Development%20Co-operation%20by%20Countries%20beyond%20the%20DAC.pdf. 4 Regular updates are available from http://www. oecd. org/dac/stats/non-dac-reporting.htm. International development cooperation 73
them to adapt and be fully responsive to the draw on OECD efforts, which will monitor triangu- sustainable development agenda (70) lar cooperation in two ways. First, it has conducted Welcomes efforts by new development banks to two surveys on triangular cooperation which include develop safeguard systems in open consultation information on the number of projects, duration and with stakeholders on the basis of established (for some of the projects) amounts. A total of 67 gov- international standards, and encourages all ernments and international organizations responded development banks to establish or maintain to the 2015 survey, which will be published in 2016, social and environmental safeguard systems that and provided detailed information on over 300 pro- are transparent, effective, efficient and time- jects and activities. Initial findings, based on the sensitive (75) responses received, show that the most active coun- Encourages multilateral development banks tries in triangular cooperation were Brazil, Chile, to further develop instruments to channel the Colombia, Germany, Guatemala, Japan, Mexico resources of long-term investors towards sustain- and Norway. The Pan-American Health Organiza- able development, including through long-term tion (PAHO), the International Labour Organiza- infrastructure and green bonds (75) tion (ILO) and the World Food Programme (WFP) were the most involved international organizations. Second, the OECD has also developed a method- To assess the provision of long-term stable ology for tracking triangular cooperation activities financing by MDBs, the Task Force will monitor the through DAC statistics, which was approved in 2015. amount and purpose of concessional and non-con- Information is collected on an annual basis on the cessional financing provided by MDBs to developing size, sectors and instruments related to each trian- countries annually. Such data could be monitored in gular cooperation project. Concrete examples and aggregate or broken down by regions or by category case studies of triangular cooperation projects can of countries. The MDBs define country categories as further complement this section. low-income, middle-income and high-income, and 4. Multilateral development banks do not generally categorize countries as LDCs, a cat- egory of particular importance in the Addis Agenda The Addis Agenda recognizes the significant poten- and 2030 Agenda. Nonetheless, it will be possible for tial of MDBs and other international development the Task Force to aggregate data for the LDC group banks, including in countercyclical lending and pro- and other relevant groups, based on MDB report- viding both concessional and non-concessional sta- ing on a country basis. OECD statistical data for ble, long-term development finance. In this context, the MDBs are standardised, and categorized on the the Addis Agenda: same basis as the data for bilateral donors, which can provide a good starting point for such efforts. Invites multilateral development banks to The Addis Agenda also encourages MDBs provide concessional and non-concessional stable to make optimal use of their resources and bal- long-term finance(70) ance sheets. Following Addis, the G20 put forth a Encourages MDBs to make optimal use of similar call in their Antalya Summit Leaders’ Com- their resources and balance sheets, consistent muniqué in November 2015. In this context, the with maintaining their financial integrity; MDBs will report to the G20 on progress in this (70) encourages MDBs to make use of all risk area in July 2016, and the Task Force will provide management tools, including through diversifi- an update in its 2017 report. In addition, in an cation (44) effort to better manage risks across the World Bank Encourages MDBs to update and develop poli- Group, the African Development Bank, the Inter- cies in support of 2030 agenda and SDGs (70) American Development Bank and the World Bank Encourages multilateral development finance Group’s International Bank for Reconstruction and institutions to establish a process to examine Development approved a framework agreement for their own role, scale and functioning to enable an exchange of sovereign exposures in December 2015, and approved the first three bilateral exposure 74 Addis Ababa Action Agenda — Monitoring commitments and actions
exchange agreements within this new framework for private resources to meet the large financing needs a total of about US $6.5 billion. associated with sustainable development. The Addis In addition, the World Bank Group expects to Agenda recognizes the potential of using interna- increase its lending in areas that support the 2030 tional public finance to catalyse additional public Agenda for Sustainable Development and the SDGs. and private investment, while also recognizing the In particular, it will expect to increase its commit- importance of sharing risks and returns fairly and ments to 30 to 50 per cent of total lending in infra- including clear accountability (48; see the section on structure, including energy, information and com- public private partnerships in chapter I on cross-cut- munications technology, transport and water and ting issues). The Addis Agenda also commits to inclu- sanitation, with an additional 5 to 10 per cent in sive and transparent discussions on the measurement social infrastructure of health and education. Sub- of a broader set of financing flows for sustainable ject to market conditions, the World Bank Group development. Specifically, the Addis Agenda: also expects mobilization across the International Recognizes the important use of international Finance Corporation (IFC) and Multilateral Invest- public finance, including ODA, to catalyse ment Guarantee Agency (MIGA) to at least double additional resource mobilization from other the current private financing totals, over the next sources, public and private … [including three years, among other measures. Many of the through] unlocking additional finance through MDBs are working on deepening their ability to blended or pooled financing and risk miti- mobilize additional sources of finance, in line with gation (54) commitments made in the lead up to the Addis Commits to open, inclusive and transparent Ababa conference highlighted in the Joint MDB and discussions on the … proposed measure of “total International Monetary Fund “Billions to Trillions: official support for sustainable development;” Transforming Development Finance” April 2015 reaffirms that the measure will not dilute com- Development Committee paper. The Task Force will mitments already made (55) report on these efforts. With regard to the development and/or main- To quantify other official flows, the Task Force taining of social and environmental safeguard will be able to draw on OECD DAC data on Other systems, the World Bank Group is carrying out Official Flows (OOF) and Official Development extensive stakeholder consultations to update its Finance (ODF). OOF is defined as official sector safeguards policies. The World Bank’s new Environ- transactions with ODA-eligible countries that do mental and Social Standards Framework is envisaged not meet ODA criteria. It includes grants to devel- to be finalised in 2016. The Task Force will report on oping countries for representational or commercial this and related efforts by existing and new MDBs, purposes; official bilateral transactions that do not including on the effectiveness, efficiency, transpar- meet the concessionality grant element threshold; ency and time-sensitivity of the measures. and official bilateral transactions that are primarily 5. Other official flows and export-facilitating in purpose. ODF is a composite measure, which includes concessional and non-con- catalysing additional resources cessional resources from bilateral and multilateral Other official flows generally refer to international development partners. It includes OOF, as defined public finance that does not qualify as concessional above, as well as bilateral ODA, grants, guaran- lending. It thus includes non-concessional loans, tees and concessional and non-concessional devel- which are particularly important for countries that opment lending by multilateral financial institutions. have graduated to middle income status, but still Measuring the contribution of development have difficulties accessing affordable financing from partners to catalysing private investment is chal- private markets. It also includes instruments that lenging. There is no agreed on methodology, in can leverage private finance, such as guarantees. In part because there is no clear-cut definition of what this regard, there has been an increasing focus on catalysing private investment means. In this regard, using public funds to leverage additional public and there are two different approaches currently being International development cooperation 75
explored. The first focuses on resources mobilized age and the broader policy environment, making it from the private sector through specific projects or difficult to imply a causal relationship to any par- mechanisms such as guarantees (direct mobilization). ticular international assistance. Country case stud- The second takes a much broader view, and attempts ies can provide further insights. The World Bank to measure the effect of aid on catalysing resources Group is also currently investigating the potential to through indirect measures (indirect mobilization). use multipliers to estimate private investment cata- This method attempts to estimate investment mobi- lysed, and the Task Force will report on these efforts. lized through assistance that aims to strengthen the The OECD has taken a narrower approach. It domestic enabling environment, build essential pub- has been working on methodologies to measure the lic services or support tax collection. As noted in the amounts mobilized directly from the private sector Addis Agenda, many forms of aid help to catalyse through three leveraging mechanisms: guarantees, other resources in this way. Indeed, institutions like syndicated loans and shares in collective investment MDBs have their main catalytic impact by mak- vehicles. In 2015, the OECD carried out a data ing economic activities more attractive to investors. survey aimed at piloting the proposed methodolo- Nonetheless, this type of definition can help inform gies and collecting comprehensive data on amounts discussions about the impact of official interventions. mobilized through these mechanisms over the To address the question of how to measure period from 2012 to 2014. The OECD statistical mobilization of other resources, the MDBs set system is being amended to include this information up a Joint MDB task force earlier this year. The in its regular reporting from 2017. Work is underway MDBs are developing measures using both of the to elaborate methodologies for other instruments, approaches described above. As one example, the including project finance and direct investment in World Bank Group assesses private capital mobilized companies, with a view to collecting data in 2016. and private investment catalysed in its corporate One challenge in this exercise is that it is sometimes scorecards. Private capital mobilized is defined as difficult to identify whether private finance would financing from private entities other than the World have been invested without public support, and, for Bank that becomes available to a client as a result example, whether the full value of an investment of the World Bank Group’s direct involvement in should be included, or only the portion guaranteed raising resources. A complementary measure — pri- directly by a public entity. As a member of this Task vate investment catalysed — is defined more broadly Force, the OECD will continue to report on progress as private sector investment resulting from World in work carried out in this area. Bank Group’s involvement, regardless of whether Total Official Support for Sustainable the entity was directly involved in raising financing Development or soliciting investors. This definition attempts to capture the impact from helping the public sector In addition to the OECD DAC discussions on the improve the underlying conditions for private sector modernization of ODA referred to above, OECD activity and investment. It thus includes both private DAC Members also agreed at the 2014 DAC High- capital mobilized directly and investments made as a Level Meeting to develop a new measurement result of an operation after it is completed. framework, Total Official Support for Sustainable Private investment related to a specific transac- Development (TOSSD). The new measure is meant tion can be monitored directly, for example by esti- to capture both official and officially supported sus- mating the amount of co-financing in a project. The tainable development activities above and beyond “after-project” impact (private investment resulting ODA and concessional finance, including from pro- from the development impact of an operation, such viders beyond the DAC — that is, all available finan- as through an improved investment climate, better cial and non-financial instruments. This includes all infrastructure, improved business environment, or development cooperation modalities and multilat- similar social changes) is much more difficult to eral arrangements, including instruments measured measure. For example, improvements in the invest- in ODF, as defined above. The extent of the scope ment climate are generally due to a full policy pack- that will be covered is, however, still being explored. 76 Addis Ababa Action Agenda — Monitoring commitments and actions
In particular, work is ongoing to determine whether and other vulnerable countries. In addition, the TOSSD should only capture official resources in the Addis Agenda recognizes the importance of address- comprehensive monitoring framework, or whether it ing the financing gap that many countries experi- should also include private flows mobilized by offi- ence when they graduate to middle income country cial interventions. (MICs) status. Specifically, the Addis Agenda: The TOSSD framework is foreseen to include Recognizes the importance of focusing the most both a provider and a recipient perspective. The concessional resources on those with greatest recipient perspective, which would monitor cross- needs and the least ability to mobilize other border flows to developing countries, is expected to resources (52, MoI 10.b) enhance visibility of financing packages mobilized Commits to take into account level of devel- for developing countries, as well as the interplay of opment of recipients, including income level concessional and non-concessional finance. and vulnerability, as well as the nature of the The OECD proposes to work with the Task project being funded, (when determining the) Force to conduct consultations to develop TOSSD level of concessionality (73) and address outstanding questions. The OECD is Commits to consider appropriately the specific also reaching out to external stakeholders, including development needs of MICs; Acknowledges that developing countries, providers beyond the OECD ODA and other concessional finance remain DAC, multilateral organizations such as the United important for MICs (71) Nations, regional commissions, and the World Bank Encourages shareholders in multilateral devel- Group, as well as civil society, academic institutions opment banks to develop graduation policies and the private sector. Discussions on the scope that are sequenced, phased and gradual (72); of TOSSD will contribute to shaping the defini- Commits to couple graduation process of least tion of TOSSD, which is to be developed by the developed countries with appropriate measures end of 2016, in order to initiate data collection in to not jeopardize development progress (73) 2017. The working definition, building blocks and principles will be compiled into a TOSSD com- As discussed above, OECD DAC data can be pendium. All stakeholders will be able to provide used to monitor ODA and OOF flows to countries comments through a web-based platform available with the greatest needs, including LDCs in particu- as of April 2016. The technical and outreach work lar, as well as other groups of vulnerable countries to develop TOSSD will continue through 2016, such as LLDCs, SIDS and African countries. The including through expert workshops, pilot case Task Force can also monitor ODA flows to MICs. studies in both provider and recipient countries, SDG means of implementation indicator 10.b.1 and existing dialogue platforms such as the United (total resource flows for development, by recipient and Nations Regional Commission, the United Nations donor countries and type of flow (e.g. ODA, FDI and Development Cooperation Forum and the Global other flows)) can also be used as an input to assess a Partnership for Effective Development Cooperation, broader set of financing flows to countries in need. and could also be discussed in the Financing for The Task Force will also report on trends in the Development Forum. level of concessionality of ODA and OOF to these countries. 6. Country allocation, levels of In addition to monitoring trends for groups of concessionality and graduation vulnerable countries, the Task Force could also use issues other measures — such as the Human Development Index (HDI), the multidimensional poverty index, The Addis Agenda recognizes that the allocation of the United Nations Human Asset Index (HAI) and concessional public finance should take into account the Environmental Vulnerability Index — to report a recipient country’s needs and ability to mobilize on the extent to which bilateral and multilateral resources. The Addis Agenda focuses on the special donors are providing finance to countries ‘with needs of different country groups, particularly LDCs greatest needs’, as well as the level of concessional- International development cooperation 77
ity. The Task Force will further track criteria that 7. Development effectiveness both bilateral and multilateral donors use in their allocation decisions. For example, the World Bank The Addis Agenda contains a range of commit- Group’s International Development Association ments to enhance the quality, impact and effective- (IDA), the largest multilateral source of concessional ness of international development cooperation. The financing, recently revised its resource allocation Addis Agenda: framework to more effectively respond to the specific Commits to make development more effec- challenges facing fragile and conflict-affected states tive and predictable by providing developing and small states. countries with regular and timely indicative To evaluate the impact of graduation from low information on planned support in the medium to middle income status on country borrowing, the term (58); Encourages the publication of Task Force can track changes in total public finance, forward-looking plans which increase clar- including as a proportion to national income. This ity, predictability and transparency of future could be done by tracking changes in ODA and development cooperation (53) OOF, in conjunction with trends in sovereign debt Welcomes efforts to improve the quality, impact and domestic resource mobilization, particularly tax and effectiveness of development cooperation; revenues. The average cost of financing should also welcomes adherence to agreed development be monitored to give a full picture of the impact of cooperation effectiveness principle (58) graduation on country borrowing. The OECD will Commits to: align activities with national contribute to this analysis by unpacking the prac- priorities, including by reducing fragmentation, tices of bilateral providers in this context. The Task accelerating the untying of aid, particularly for Force will also draw on reporting by the World Bank, least developed countries and countries most in which uses a coordinated approach to assist prospec- need; promote country ownership and results tive IDA graduates for a smoother transition to Inter- orientation; strengthen country systems; using national Bank for Reconstruction and Development programme-based approaches where appropri- (IBRD) only status. An internal World Bank Group ate; reduce transaction costs; increase transpar- task force provides advice to country authorities ency and mutual accountability (58) when an IDA-only country becomes creditworthy Urges countries to track and report resource for IBRD lending, as well as for when current ‘blend allocations for gender equality and women’s countries’ graduate to IBRD-only status. empowerment (53) Monitoring support measures for the gradu- ation process of LDCs will be based on report- The Addis Agenda notes that efforts to pursue ing by the Office of the High Representative for effective development cooperation will be addressed Least Developed Countries, Landlocked Develop- in the Development Cooperation Forum (DCF) ing Countries and Small Island Developing States of the Economic and Social Council (ECOSOC), (OHRLLS). OHRLLS is entrusted with continuing while also taking into account the efforts of other to harness its substantive activities and operational relevant forums, such as the Global Partnership for programmes in support of graduation and smooth Effective Development Cooperation (GPEDC), in a transition in LDCs (A/RES/67/221). Building on complementary manner. With its inclusive, multi- this mandate, the office will follow up on the above stakeholder format, the DCF maps and analyses commitment, drawing on its annual Secretary- progress in monitoring, review and accountability General’s report on the implementation of the Pro- of development cooperation. It aims to promote gramme of Action for the LDCs. OHRLLS will also policy dialogue for knowledge building and shar- draw on the Secretary-General’s report on gradua- ing; strengthen normative and operational links of tion and smooth transition, which the office prepares development cooperation interventions to ensure the on an ad hoc basis, as well as on other reports and effective translation of principles into actions at all knowledge products, including those generated by levels; and promotes greater policy coherence and the Committee for Development Policy Secretariat. synergies towards achieving the SDGs. In generating 78 Addis Ababa Action Agenda — Monitoring commitments and actions
policy recommendations, the DCF also reflects on ation (financial assistance, technical cooperation and the functioning of government-led and other inde- others), priority sectors and projects of South-South pendent monitoring mechanisms for development cooperation, their conditionalities, procedures and cooperation, including regional monitoring and concessionality, value for money, speed of delivery, review processes. predictability and coordination. These parameters Since 2008, the DCF has reviewed the effec- are to be updated and informed by the discussions tiveness of mutual accountability mechanisms and among Southern partners under the auspices of transparency initiatives at national, regional and the DCF. In addition, the Task Force’s monitoring global levels. To support this effort, DESA has con- efforts can draw on voluntary reports published by ducted four global surveys in close collaboration South-South development cooperation providers on with the United Nations Development Programme the nature and types of assistance they are providing. (UNDP). The survey results are then unpacked in The GPEDC Monitoring Framework, led by comprehensive studies, with an emphasis on results OECD and UNDP, is currently being reviewed and transparency to inform global monitoring by an independent Monitoring Advisory Group efforts, knowledge sharing and mutual learning. The to strengthen its framework in light of the SDGs, results of the Fourth Survey, which was rolled out drawing on lessons from the second monitoring pro- in low-income and low middle-income countries in cess. A revised monitoring framework is expected to 2015-2016, will be presented in advance of the high- be agreed to at the Second High-Level Meeting of level meeting of the DCF from 21–22 July 2016. the GPEDC taking place in Nairobi on 28 Novem- DCF surveys have provided evidence on the ber – 1 December 2016. state of play of development cooperation on the The current framework includes ten indicators ground and helped to structure their assessment that provide information on progress on adherence around a number of “mutual accountability ena- to the principles of effective development coop- blers” — such as national development cooperation eration (country ownership, results focus, inclusive policies, results frameworks guided by country pri- partnerships, and transparency and accountabil- orities, clear institutional structures and inclusive ity). Eight out of ten indicators are monitored at dialogue forums, and transparent and independent the country level, with two indicators relying on information. The surveys assess both the effective- globally sourced data. The scope of this monitor- ness of cooperation efforts of programme country ing exercise includes ODA and, for countries where actors, and the progress made against national tar- non-concessional flows are relevant, also OOF. In gets by individual donors. practice, countries engage traditional and non-tra- In consultation with stakeholders and experts, ditional providers of development cooperation as DESA updated the survey design in 2015 to ensure well as civil society organizations and private sec- assessment of areas and issues increasingly relevant tor actors in data reporting. The second monitor- in the SDG era. Governments with weak finance ing exercise is currently underway in 80 countries. and budgeting systems will need particular support The data is expected by the end of May 2016, with to monitor and review development cooperation the progress report to be published in October 2016. commitments and results in the context of the 2030 The monitoring framework generates a combination Agenda for Sustainable Development. In this regard, of quantitative and qualitative data. mutual accountability enablers could be useful GPEDC Indicator 1 assesses extent of use tools to help integrate and track progress and results of country-owned results frameworks by providers against development cooperation commitments, of development cooperation, and can thus serve and will be drawn on by the Task Force. to monitor the commitment to align activities The Secretary-General’s report to the DCF also with national priorities. GPEDC Indicator 10 also reports on the effectiveness of South-South and tri- assesses progress on untying aid based on this data. angular cooperation. The report captures channels of Several countries have developed their own per- cooperation (such as bilateral and multilateral coop- formance assessment in the area of fragmentation. eration and philanthropy), different types of cooper- Fragmentation can be measured through progress International development cooperation 79 made on division of labour (i.e., the number of sec- The OECD Survey on Donors’ Forward tors development cooperation providers are engaged Spending Plans projects future aid receipts by in; the average size of their intervention; etc.). developing countries. The 2015 Survey will capture Indicators 1 (use of country results frame- providers’ most recent and future plans of Country work), 6 (percentage of development aid scheduled Programmable Aid (CPA), also known as “core” aid, for disbursement that is recorded in the annual or the portion of aid that donors programme for budgets approved by the legislatures of developing individual countries, over which partner countries countries), 9a (quality of developing country public could have a greater say. The figures for 2014 are financial management system) and 9b (use of coun- provisional spending figures. For 2015 and beyond, try public financial management and procurement these are providers’ current indicative planning fig- systems) support promotion of country ownership ures and do not represent firm commitments, but and results orientation. In addition, GPEDC Indi- rather providers’ best estimates of future aid efforts. cator 2 (civil society organization enabling environ- The IATI is a voluntary, multi-stakeholder ment and development effectiveness) and GPEDC initiative that seeks to improve the transparency of Indicator 3 (public-private dialogue) recognize the development cooperation and humanitarian assis- critical importance of civil society organizations tance. IATI has developed an open data standard and the private sector in development planning pro- that enables a wide range of organizations to publish cesses. The GPEDC monitoring process does not information on their development cooperation activ- assess the use of programme-based approaches, but ities in a common, open, electronic format. IATI, several countries monitor this through assessing the via the IATI Dashboard, publishes assessments on percentage of development cooperation that uses a timely, comprehensive and forward-looking infor- programme-based approach (including budget sup- mation that is publically available and that meet the port, sector-wide approaches, etc.). needs of developing countries’ planning processes. In relation to gender, GPEDC Indicator 8 The 2015 assessment is currently available at the assesses the percentage of countries with systems IATI Dashboard. OECD and IATI data can also that track and make public allocations for gender serve to monitor the commitment to reduce transac- equality and women’s empowerment. This is moni- tion costs. In addition, the Center for Global Devel- tored at the country level, with the data collected opment publishes an annual brief on the quality of from ministries of finance at the country level. Its ODA, which analyses OECD DAC data to measure methodology has been developed by UN Women in the administrative costs of major providers. collaboration with OECD Gender Net. In addition to the above commitments, in GPEDC Indicator 5 tracks the predictability Addis, Governments also committed to: of development cooperation. Specifically, GPEDC Consider not requesting tax exemptions on Indicator 5b assesses the proportion of development goods and services delivered as government-to- cooperation funding covered by indicative forward government aid, beginning with renouncing expenditure and/or implementation plans provided repayments of value-added taxes and import at country level for one, two and three years ahead. levies (58) Data is collected at the country level (reported by Work to strengthen national ownership and developing country governments based on the avail- leadership over the operational activities for ability of forward plans by each provider). GPEDC development of the United Nations system in Indicator 4 on transparency tracks the status of programme countries; United Nations coher- development cooperation providers in publishing ence, relevance, effectiveness and efficiency, to timely, comprehensive and forward-looking infor- improve coordination and results, including mation in an electronic format. This assessment is through achieving further progress on the based on data from the OECD Creditor Reporting “Delivering as one” voluntary approach (74) System (CRS), OECD Survey on Donors’ Forward Spending Plans, and the International Aid Transpar- The OECD Task Force on Tax and Develop- ency Initiative (IATI). ment monitors the debate on the tax treatment of 80 Addis Ababa Action Agenda — Monitoring commitments and actions
aid-funded goods and services. It is a regular agenda Reaffirms existing climate finance commitments item during Task Force on Tax and Development (US $100 billion annually from a wide variety Plenaries. At the Tax and Development donor meet- of sources) by 2020 (60, MoI 13.a) ing in December 2014 the Development Coop- Commits to support the most vulnerable in eration Directorate (DCD) Director called on the addressing and adapting to climate change (65, Members to review their policy on tax exemptions SDG 1.5, 13.b) of aid-funded goods and services. At the moment Recognizes the need for transparent methodolo- only Denmark, the Netherlands, Poland and Swe- gies for reporting climate finance(60) den are reviewing their policies and are taking steps Welcomes GCF board decision to aim for a toward these exemptions. The Task Force will report 50:50 balance between mitigation and adapta- on developments. tion over time and floor of 50 per cent of adap- The review of the effectiveness of the United tation activities for LDCs, SIDS and African Nations system can draw on existing reporting of countries (61) the Secretary-General. The effectiveness of United Nations system operational activities for development These commitments are partly reflected in is reviewed by the General Assembly and ECOSOC SDG 13 to take urgent action to combat climate through the Quadrennial Comprehensive Policy change and its impacts, and in particular MoI target Review of the United Nations System Operational 13.a. At the 21st session of the Conference of the Activities for Development (QCPR). Every four Parties (COP 21) in December 2015, Member States years, the General Assembly adopts a resolution to further decided that developed countries intend to guide, monitor and assess the operational activities continue their existing collective mobilization goal of the United Nations development system with the through 2025 in the context of meaningful mitiga- aim to improve its effectiveness, efficiency, coherence tion actions and transparency on implementation; and impact. ECOSOC reviews the implementation and that prior to 2025, the Conference of the Parties of the QCPR on an annual basis, which is informed shall set a new collective quantified goal from a floor by an annual report of the Secretary-General pre- of US $100 billion per year, taking into account the pared by DESA. Included in the report of the Secre- needs and priorities of developing countries. tary-General is a review and monitoring framework, The Task Force will be able to draw on indica- which monitors progress of the implementation of tor 13.a.1 from the SDG monitoring process, which the mandates contained in the QCPR resolution will measure the mobilized amount of US dollars per through a set of indicators. The report and moni- year starting in 2020 accountable toward the US $100 toring framework draw on surveys, analytical stud- billion commitment and 13.b.1 (number of least devel- ies, consultations and desk reviews. Member States oped countries and small island developing States that will negotiate the next cycle of the QCPR in the lat- are receiving specialized support, and amount of support, ter part of 2016 and will guide the United Nations including finance, technology and capacity building, for development system according to their assessment. mechanisms for raising capacities for effective climate change-related planning and management, including 8. Climate finance, disaster risk and focusing on women, youth, local and marginalized environmental resilience communities). Monitoring in this area will be based on information and data collected in the context of 8.1. Climate finance the UNFCCC. The UNFCCC Secretariat publishes national reports of developed country Parties that The Addis Agenda reaffirms decisions and agree- include information on support provided to devel- ments on climate finance made in the context of the oping countries, including National Communica- United Nations Framework Convention on Climate tions of Annex I Parties, submitted every four years Change (UNFCCC). It also calls for transparent and containing information on support provided, methodologies in reporting climate finance. Spe- as well as biennial reports which include informa- cifically, it: tion on financial support, technology transfer, and International development cooperation 81
capacity building. Developing countries also report both mitigation and adaptation actions under the under the Convention, albeit on a voluntary basis. Paris Agreement. Furthermore, the Standing Committee on Finance Given their role enshrined in the Paris agree- has been mandated by the Conference of the Par- ment within the Financial Mechanism of the UNF- ties at its seventeenth session to prepare a biennial CCC, the Task Force will also monitor resource assessment and overview of climate finance flows, mobilization and funding decisions of the Green drawing, among others, from the national reports Climate Fund and the Global Environment Facility, under the Convention mentioned above. The first including the Least Developed Countries Fund and biennial assessment was prepared in 2014, with the Special Climate Change Fund, particularly as they second due in 2016. relate to the balance between adaptation and mitiga- COP 21 also addressed the need for transpar- tion activities, country allocations (including coun- ent methodologies for reporting climate finance, as try groups such as the LDCs and SIDS), and levels recognized in paragraph 60 of the Addis Agenda. It of concessionality. This effort can draw on the UNF- established an enhanced transparency framework for CCC Climate Finance Data Portal, which aims to action and support, with a view to provide clarity on assist Parties in tracking the financial mechanism the support provided and received, and to provide of the Convention, with the Green Climate Fund a full overview of aggregate financial support. The and the Global Environment Facility as its operating Framework will also inform the global stocktaking entities. This information can be complemented by under Article 14. The Task Force will report on pro- country level case studies and expenditure reviews as gress in the implementation of this framework. carried out by the UNDP. To enhance the provision of ex-ante informa- 8.2. Disaster risk and environmental tion, developed country Parties agreed to biennially resilience communicate indicative quantitative and qualitative information in COP 21, including, as available, pro- The commitments in the Addis Agenda on disaster jected levels of public financial resources to be pro- risk and environmental resilience are largely covered vided to developing country Parties. Other Parties in a dedicated section on ecosystems in chapter I on providing resources were encouraged to communi- cross-cutting issues. In addition, the Addis Agenda: cate such information biennially and on a voluntary Encourages consideration of climate and disas- basis. In addition, a process was set up to identify the ter resilience in development financing to ensure information to be provided by the Parties. the sustainability of development results (62) Other sources of climate finance include Cli- mate Funds Update, an initiative of the Heinrich- The Task Force will be able to draw on the Böll Stiftung and the Overseas Development Insti- findings of a working group set up by the MDBs tute, which provides quantitative information on and development finance institutions to develop and international climate finance initiatives designed implement principles for mainstreaming climate and to help developing countries address the challenges resilience into their work. The working group, estab- of climate change. The Climate Policy Initiative lished at COP 21 in Paris, can report back through has devised a method to track climate and land the Task Force on any monitoring mechanism it may use finance from all sources. The OECD statisti- establish in this regard. cal system will continue to provide consistent data 9. Humanitarian finance and on climate-related development assistance and, in collaboration with the OECD-hosted Research peacebuilding Collaborative, develop improved methodologies. The Addis Agenda acknowledges that development The OECD/International Energy Agency Climate finance can contribute to reducing vulnerabilities Change Expert Group, which brings together and enable countries to prevent or combat situations experts from both developed and developing coun- of crisis related to conflict or natural disasters. In tries, will work on improving the transparency of this context, it: 82 Addis Ababa Action Agenda — Monitoring commitments and actions
Recognizes the need for coherence of develop- the resource base and increased cost-efficiency. These mental and humanitarian finance(66) recommendations were brought together with the Commits to promoting innovative financing aim of not only meeting, but also reducing needs in mechanisms to allow countries to better prevent protracted crises, where humanitarian action alone and manage risks and develop mitigation is not sufficient. Discussions on the humanitarian/ plans (66) development divide and possible actions will be at Steps up efforts to assist countries in accessing the heart of the Summit, and the Task Force will financing for peacebuilding and development in report on progress in this area. the post-conflict context and recognizes role of Financing mechanisms and instruments can Peacebuilding Fund (67) play a key role in reducing the financial burden on governments from disasters, particularly when sup- The main reporting systems for international ported by policy reform and collaboration across humanitarian assistance are the United Nations partners to use risk-informed financial planning. Office for the Coordination of Humanitarian Affairs The commitment to promote innovative financing (OCHA) Financial Tracking Service (FTS) and the mechanisms in this area can be partially monitored OECD, which reports on humanitarian and devel- through resources committed to disaster risk reduc- opment finance. OECD data can serve to report on tion programming, which is reported under the official humanitarian financing flows, while data humanitarian codes in OECD statistics. However, from the FTS, which records all reported interna- prevention and mitigation should be part of nor- tional humanitarian aid contributions, includes con- mal development programming. In addition, risk tributions of nongovernmental organizations, the reduction should not be seen as stand alone projects Red Cross/Red Crescent Movement, bilateral aid, that require additional finance — good risk reduc- in-kind aid and private donations. Analytical reports tion occurs when all development projects are sys- such as the annual Global Humanitarian Assistance tematically disaster proofed. OECD members are Report, published by Development Initiatives, pro- also developing innovative forms of finance for risk vide an additional source for data and information. reduction, such as Japan’s SECURE, which gives Coherence of humanitarian and development governments immediate access to funds after a natu- finance can also be monitored at the country level, ral disaster. by assessing OECD data at the regional or country The Task Force could also track the use of level, or through the UNDP Multi-Partner Trust financial tools that support better prevention and Fund Office, which provides a gateway and overview management of risk at the country level, such as of all humanitarian and development funding for sovereign insurance regimes or gross domestic prod- a country. In addition, informal mechanisms such uct-linked lending instruments (see chapter II.E), as Development Initiatives’ Development DataHub the number of programmes and/or countries that aggregate and analyse funding flows from both are actively engaged in efforts to improve financial humanitarian and development streams, together planning and risk-sharing across governments, bilat- with some national-level expenditures, to build a eral donors, humanitarian agencies, development comprehensive picture of aid at the country level. partners, and private sector actors, and the number The need for coherence of development and of countries working to strengthen financial resil- humanitarian finance was also recognized by the ience to disasters. The Task Force could draw on the Secretary-General in his recent report “One Human- World Bank Group’s advisory support to countries ity: Shared Responsibility” for the World Humanitar- in this area. ian Summit in 2016. From the financing perspective, With regard to assisting countries to access it calls for greater investment in local capacities and financing for peacebuilding and development, there conflict prevention, investing according to risk of are several well-established methodologies that could humanitarian crises, financing collective outcomes be used to assess the proportion of funds directed rather than individual projects through sophisticated to peacebuilding activities, which are all based on financing instruments, and urging diversification of development partner expenditure reported to the International development cooperation 83
OECD Creditor Reporting System (CRS). First, the There is no uniformly agreed definition of OECD has monitored resource flows to fragile states innovative financing. Nonetheless, the Task Force since 2008. In its 2015 report, it uses the Peacebuild- will be able to report on activities carried out under ing and Statebuilding Goals (PSGs) to monitor the auspices of the Leading Group on Innovative financing in five areas and using CRS proxy codes Financing for Development, and will monitor and for each of the PSGs. Second, resources allocated report on new initiatives and mechanisms such as by the United Nations Peacebuilding Fund (PBF) green bonds, vaccine bonds, carbon pricing mecha- are also ODA eligible and captured in the OECD nisms and others mentioned in paragraph 69. CRS, and can thus be monitored. Third, the United The Leading Group describes innovative devel- Nations Peacebuilding Support Office, in collabo- opment finance as ‘comprising mechanisms for rais- ration with the Institute for Economics and Peace ing funds for development that are complementary (IEP), has defined 17 categories, based on three to ODA, predictable and stable, and closely linked to the idea of global public goods. Most prominently, peacebuilding priority areas identified by the 2009 the international solidarity levy for airline tickets Report of the Secretary General on Peacebuilding. has raised resources for UNITAID. More recently, Finally, the World Bank Group financed research at the Third International Conference on Financ- on the current state of peacebuilding programming ing for Development in Addis Ababa, the Leading and evidence (April 2015) and defined a framework Group launched UNITLIFE, an innovative financ- with 25 intervention categories. ing mechanism that seeks to generate new resource However, one key challenge is that the uni- flows from extractive industries to address malnutri- verse of countries to which this applies is not clearly tion in sub-Saharan Africa. defined. “Conflict-affected countries” have been The Task Force will report on these and related used in a United Nations context for countries with initiatives, such as new public insurance programmes, multidimensional peacekeeping operations, special annual issuance of green bonds and long-term infra- political missions and/or that are PBF-eligible (31 structure bonds (see the discussion on infrastructure countries in 2016). Nonetheless, there is no clear-cut in chapter 1 on cross-cutting issues), as well as the United Nations categorization that can be readily annual volume of projects developed and financed used. The World Bank Group, African Development through MDB project preparation facilities. It can Bank and Asian Development Bank have issued a also follow innovative private initiatives, such as Harmonized List of Fragile Situations. The World catastrophe bonds, social impact bonds and private Bank Group is currently reviewing the way to assess sector green bonds. fragile situations to recognize a broader set of situa- In addition to mechanisms focused on mobi- tions. The current ODA system contains a “fragile lizing resources, many innovative mechanisms are states” grouping, which allows for measurement of aimed at intermediating existing resources, such as OECD member targets, such as the United King- the International Finance Facility for Immunization. dom’s recent commitment to spend 50 per cent of These mechanisms aim at restructuring existing its ODA in fragile states. flows to better match financing with needs, reduce risk, pool philanthropic funds with official resources, 10. Innovative development finance or leverage official flows with private resources. To Addis welcomes the progress in developing and encourage replication of existing mechanisms, the mobilizing support for innovative sources and mech- Task Force can provide an overview of such initia- anisms of additional financing since Monterrey, and: tives and case studies of successful examples, draw- ing for example on KPMG’s SDG Matrix, which Invites more countries to join in implementing showcases industry-specific innovative examples. innovative mechanisms (69) The Task Force will report on indicative volumes Encourages consideration of replicating existing raised, number of countries involved in different mechanisms and exploring additional mech- schemes, as well as the extent to which they have anisms (69) mobilized additional resources for the SDGs. 84 Addis Ababa Action Agenda — Monitoring commitments and actions
11. Additional partnerships Alliance are supportive of health systems strength- ening (HSS) investments. For example, The Global The Addis Agenda emphasizes the importance of Fund Strategy (GFS) 2017–2022: Investing to End international development cooperation and part- Epidemics includes, under Strategic Objective 2, nerships in the health and education sectors in Build Resilient and Sustainable Systems for Health, particular. two operational objectives: (i) Leverage critical 11.1. Health investments in human resources for health, and (ii) Strengthen and align robust national health strategies In the area of health, Addis: and national disease-specific strategic plans. Simi- larly, the GAVI Alliance under its new Strategic Encourages better alignment between multi- Goal 2 commits to increase effectiveness and effi- stakeholder partnerships in health and to ciency of immunization delivery as an integrated improve contributions to strengthening health part of strengthened health systems. Both also systems (77) have associated indicators that assess investments Commits to enhanced international coordina- in specific technical areas. For example, Gavi has tion and enabling environments to strengthen included HSS grant specific indicators within each national health systems (77) individual country monitoring and accountability Commits to substantially increase health framework. financing and the recruitment, development, The multi-stakeholder Universal Health Cov- training and retention of the health workforce erage (UHC) 2030 Alliance, advocated for by the in developing countries, especially LDCs and G7, the World Health Organization (WHO) and SIDS (77, MoI 3.c) development partners, could also serve to inform Commits to strengthening implementation of the Task Force’s monitoring in this area. It aims the WHO Framework Convention on Tobacco to expand the IHP+ to maintain political commit- Control (77, MoI 3.a) ment, advocate for resources, and strengthen com- The leading example for facilitating better munication and accountability that accelerates alignment between multi-stakeholder partner- progress towards UHC. To guarantee transparent ships to strengthen health systems in developing monitoring, the alliance will include an independ- countries is the International Health Partnership ent review mechanism, a civil society engagement Plus (IHP+). International organizations, bilateral mechanism on accountability and advocacy for agencies and country governments all sign the UHC, and a monitoring mechanism producing an IHP+ Global Compact, in which they commit to annual progress report on UHC (supported by the putting internationally agreed principles for effec- Health Data Collaborative). In addition, SDG 3. 8 tive aid and development cooperation into practice on universal health coverage will provide informa- in the health sector. There have been four rounds tion on the level of financial protection (and service of monitoring IHP+ since 2009, with the fifth coverage) in countries, and thus on the outcomes of round to take place during 2016. It will track seven efforts to strengthen health systems. In this context, effective development cooperation practices using a first global monitoring report on tracking univer- indicators for both governments and development sal health coverage was published in 2015. partners, and through collecting quantitative and To monitor health financing, the System of qualitative information, as part of a monitoring Health Accounts (SHA) 2011 is the global standard framework that is closely aligned with the Global for reporting health expenditures. SHA 2011 reports Partnership on Effective Development Cooperation on health expenditures from the financing, provi- monitoring. Findings can serve to inform the Task sion and consumption perspectives. Health accounts Force’s monitoring effort in this area. are done in many countries, and it is anticipated that The major development partners in health with institutionalization, health accounts will be also recognize the importance of strengthening produced yearly and will demonstrate trends in the health systems. The Global Fund and the GAVI volumes and shares of different financing streams. International development cooperation 85
Health accounts data is available at the global health education outcomes. They are partly covered in the expenditure database of the WHO. indicators for SDG means of implementation tar- To monitor the health work force commit- gets 4.a (proportion of schools with access to electricity, ment, the Task Force will be able to draw on the internet, computers, infrastructure and materials for indicator for MoI target 3.c (health worker density students with disabilities, single-sex basic sanitation and distribution). In addition, the World Health facilities, and basic handwashing facilities) and 4.c Assembly will consider the WHO Global Strategy (proportion of teachers in different school types who on Human Resources for Health: Workforce 2030 have received at least the minimum organized teacher in May 2016. This strategy includes an account- training required for teaching at the relevant level ability framework that outlines policy options for in a given country). Indicators from the Education WHO Member States and responsibilities of the 2030 Framework for Action can provide additional Secretariat in monitoring and reporting, and can inputs to the Task Force. Specifically, indicator serve as a source of additional data for the Task 37 (percentage of teachers qualified according to Force’s monitoring efforts in this area. In particular, national standards by education level and type of the strategy encourages WHO Member States to institution), indicator 38 (pupil/qualified teacher invest in analytical capacity for human resources ratio by education level) and indicator 40 (pupil/ for health and health system data and invites trained teacher ratio by education level) are rel- development partners to support national Human evant. All of these indicators are regularly produced Resources for Health data collection and analysis by the United Nations Educational, Scientific and systems for improved planning and accountability. Cultural Organization’s (UNESCO) Institute of Lastly, strengthened implementation of the Tobacco Statistics (UIS). Convention can be monitored with the indica- However, the above indicators focus on educa- tor for MoI target 3.a (age-standardized prevalence tion outcomes, while the Addis Agenda’s primary of current tobacco use among persons aged 15 years focus is on investments or enhanced cooperation. and older). This data is obtained from household The Task Force will therefore complement the SDG or specific surveys and is reported in the WHO’s indicators by monitoring data and qualitative devel- Global Infobase. opments on resources and cooperation mobilized for 11.2. Education education. For domestic spending, the 2016 Global Edu- In the area of education, the Addis Agenda: cation Monitoring Report, published by UNESCO, will present data collected by UIS on national Commits to scale up investments and inter- spending on education by country. SDG means of national cooperation to allow all children to implementation indicator 1.a.2 (proportion of total complete free, equitable, inclusive and qual- government spending on essential services (education, ity early childhood, primary and secondary health and social protection)) will provide additional education (78) relevant data. The Task Force will also follow up on Commits to scale up and strengthen (of part- the Addis Agenda’s encouraging of countries to con- nership initiatives in education), such as the sider setting nationally appropriate spending targets Global Partnership for Education (77) for quality investments in essential public services Commits to upgrading education facilities, for all, including in the area of education (see section acknowledging the importance of providing safe, on Delivering social protection and essential public non-violent, inclusive and effective learning services). environments for all; (MoI 4.a) Commits to To monitor the commitment on scaling up increasing the percentage of qualified teachers investments and international cooperation for in developing countries (78, MoI 4.c) schooling, global data on ODA to education by the The Addis Agenda commitments on education OECD DAC and by the Global Education Monitor- focus on mobilizing investments and resources and ing Report could be used. The IATI database can strengthening international cooperation to improve help to further assess global efforts towards specific 86 Addis Ababa Action Agenda — Monitoring commitments and actions
areas such as early childhood, primary and second- Commits to strengthen international coopera- ary education. tion to support efforts to build capacity [in tax The scaling up and strengthening of the administration] in developing countries, includ- Global Partnership for Education (GPE) can be ing through enhanced ODA (22) monitored by drawing on the indicators from GPE’s Strategic Plan 2016–2020. The GPE will monitor Overall monitoring of capacity building activi- cumulative donor contributions to the GPE Fund for ties will be carried out in the context of Action Area 2015–2018 (indicator 1.3.1 in its theory of change G on science, technology, innovation and capacity and results framework) and the amount of funding building. Monitoring of capacity building activities to GPE from non-traditional donors (private sector on tax administration and related areas will be car- and those who are first time donors to the GPE) for ried out in the context of Action Area A on domestic 2015–2020 (indicator 1.5). Beyond monetary contri- resource mobilization. The specific commitments on butions, the GPE will also assess the percentage of (i) capacity building for managing and financing dis- developing country partners and (ii) other partners aster risks and responding to shocks can partially be reporting strengthened clarity of roles and responsi- monitored through reporting by the Global Facil- bilities in GPE country processes (indicator 2.1) and ity for Disaster Reduction and Recovery (GFDRR). the percentage of GPE partner countries organizing GFDRR is a global partnership that helps develop- Joint Sector Reviews (2.1.1). ing countries better understand and reduce their 12. International cooperation and vulnerabilities to natural hazards and adapt to cli- mate change. capacity building The Global Environment Facility (GEF) pro- The Addis Agenda contains commitments and vides grant and concessional resources to countries action items on capacity building throughout its to protect and conserve the global environmen- Action Areas. In the area of international develop- tal commons. In order to develop the capacity of ment cooperation, the Addis Agenda: these countries to access GEF funding and develop effective and transformative projects, the GEF has Calls for capacity building of local and national held a number of regional meetings and supported actors in the areas of managing and financing national level activities, including annual Expanded disaster risk (62) Constituency Workshops for government officials Calls for capacity building for LDCs, LLDCs and civil society organizations in every region in and SIDS responding to various kinds of shocks which it works. Since 2014, it further supported including financial crisis, natural disasters, and about 35 National Dialogues and National Portfo- public health emergencies (68) lio Formulation Exercises to promote consultation, Supports building capacity in accessing identify synergies for greater impact, and take a stra- available funds of the Global Environment tegic approach to the use of GEF resources. In the Facility (76) current funding cycle, the GEF has also provided Commits to strengthen country capacity for eight Cross-Cutting Capacity Development grants early warning, risk reduction and manage- based on the results of the National Capacity Self- ment of national and global health risks; in Assessments to improve the ability of countries to particular in LDCs, LLDCs and SIDS, and implement their commitments under the Rio Con- in conflict-affected and post-conflict States ventions. As part of the Task Force, the GEF Secre- (77, MoI 3.d) tariat can continue to report on such efforts.