Development Resources Beyond the Current Reach of the Paris Declaration Evaluation of the Paris Declaration e-ISBN English: 978-87-7605-423-6 © Danish Institute for International Studies Suggested citation: Prada, F.; Casabonne, U.; Bezanson, K. Supplementary study on “Development resources beyond the current reach of the Paris Declaration”, Copenhagen, October 2010. Photocopies of all or part of this publication may be made providing the source is acknowledged. This report represents the views of the authors only. They are not necessarily the views of the participating coun- tries and agencies. Graphic design: ph7 kommunikation. www.ph7.dk The report can be downloaded from www.oecd.org/dac/evaluationnetwork/pde Supplementary study on “Development resources beyond the current reach of the Paris Declaration” Submitted by: FORO Nacional Internacional* September 2010 • This report has been prepared by Fernando Prada, Ursula Casabonne and Keith Bezanson, with the collaboration of Nestor Aquiño, Fernando Romero, Mario Bazán and Carlos Eduardo Aramburú. Francisco Sagasti provided general advice and suggestions. PREFACE This independent study was commissioned by the Secretariat for the Evaluation of the Paris Declaration as a background contribution to the work of the second phase and the Synthesis of the Evaluation. Comments on draft versions were offered by the Evaluation Core Team and the Secretariat, but the final contents remain the responsibility of the authors and do not necessarily represent the views of the Secretariat, the Core Team or the Evaluation’s sponsors. As the report shows, the subject is highly complex and often poorly documented. Clarifications and comments are thus invited to [email protected] and to [email protected] Acronyms AAA Accra Agenda for Action ADFD Abu Dhabi Fund for Development ARF African Renaissance Fund AsDB Asian Development Bank BCIE Central American Bank for Economic Integration CAF Andean development Corporation CGIAR Consultative Group on International Agricultural Research CRS Creditor Reporting System CSR Corporate Social Responsibility DAC Development Assistance Committee EADB East African Development Bank EC European Commission EIB European Investment Bank EU European Union FDI Foreign Direct Investment FLAR Latin American Reserve Fund FOCAC Forum on China-Africa Cooperation EFA - FTI Education for All Fast Track Initiative GAVI Global Alliance for Vaccines and Immunization GCF Gross Capital Formation GDF Global Development Finance GEF Global Environment Facility GFATM Global Fund to Fight AIDS, Tuberculosis and Malaria GNI Gross National Income HIPC High indebted poor countries IADB Inter-American Development Bank IDA International Development Assistance IFAD International Fund for Agricultural Development IFF International Financial Facility IMF International Monetary Fund IsDB Islamic Development Bank KFAED Kuwait Fund for Arab Economic Development LAC Latin America and the Caribbean LDC Least Developed Countries MDB Multilateral Development Banks MFIMP Multilateral Fund for the Implementation of the Montreal Protocol MOFCOM Chinese Ministry of Commerce NEPAD New Partnership for Africa’s Development NDBs Non-DAC bilateral donors NGO Non-Government Organizations OAS Organization of American States ODA Official Development Assistance OECD Organization for Economic Co-operation and Development OFID OPEC Fund for International Development OOF Other official flows OPEC Organization of Petroleum Exporting Countries PD Paris Declaration PDVSA Petróleos de Venezuela PPI Private Participation in Infrastructure PPP Public Private Partnership RDB Regional Development Banks SDR Special Drawing Rights SFD Saudi Fund for Development SRDB Sub-regional Development Banks SRI Social Responsible Investment SSC South-South Cooperation UAE United Arab Emirates US PEPFAR U.S. President's Emergency Plan for AIDS Relief WB World Bank WFP World Food Program TABLE OF CONTENTS EXECUTIVE SUMMARY....................................................................................................................... 1 INTRODUCTION .................................................................................................................................. 5 I. SITUATING NON-PD RESOURCES IN THE CONTEXT OF THE INTERNATIONAL DEVELOPMENT FINANCING SYSTEM................................................................................................... 7 1. An institutional overview: the international developing financing system............................. 7 2. Defining the scope of the study and non-PD resources ......................................................... 9 3. Estimating non-PD resources from a recipient perspective ................................................ 11 II. CATEGORIES OF NON-PD RESOURCES: ASSESSING THEIR SCOPE, AMOUNTS AND MODALITIES..................................................................................................................................... 14 1. Bilateral non-DAC donors................................................................................................... 14 2. Multilateral assistance providers: growing complexity at the sub-regional level ............... 24 3. Private sector: Diversity, innovation and growing development role ................................. 30 III. FINDINGS AND CONCLUSIONS.................................................................................................. 39 BIBLIOGRAPHY ................................................................................................................................ 43 ANNEX 1. COUNTRIES, TERRITORIES AND ORGANIZATIONS ADHERING TO THE PD AND AAA PER CATEGORY AND SUBCATEGORIES.................................................................................... 52 ANNEX 2. SELECTED INDICATORS ON NON-DAC DONORS REPORTING TO THE DAC.................... 56 ANNEX 3. EXAMPLES OF TRIANGULAR COOPERATION ................................................................. 57 ANNEX 4. DESCRIPTION OF THE MAIN GLOBAL FUNDS AND MULTI-DONOR ORGANIZATIONS .............................................................................................................................. 58 ANNEX 5. LIST OF FINANCIAL INSTRUMENTS BY FUNCTIONAL CATEGORIES AND ACTORS ........... 60 ANNEX 6. GRANT ELEMENT OF DIFFERENT INSTITUTIONS ............................................................ 63 Supplementary study on “Development resources beyond the current reach of the Paris Declaration” Executive summary While recent suggestions of annual international aid flows that are not classified as Official Development Assistance (ODA) include figures as high as US$60 billion (i.e. over 50 percent of the ODA figure), few studies have examined this issue systematically. This study is an attempt to do so, but with limitations. It is a synthesis study —a desk study— based entirely on existing data sources. It involves no new or original research. Within those constrains, it examines “ODA-like assistance” to developing countries from sources beyond the current reach of the Paris Declaration (“non-PD resources”) with the aim of better delineating sources, magnitude and implications of current and emerging trends. OECD/DAC defines ODA as flows of official financing administered with the promotion of the economic development and welfare of developing countries as the main objective, and which are concessional in character with a grant element of at least 25 percent (using a fixed 10 percent rate of discount).For the purposes of this paper, ODA-like assistance must meet the criteria set out in this definition. The methodology of the study involves first a macro analysis of all financial flows to developing countries, in order to situate the scope of the resources covered by the PDrelative to all development assistance andnon-aid financial flows. This is followed by a wide-ranging examination of information from multiple sources (international data bases, national reporting statistics, empirical literature and a wide range of reports, including press reports), with a view to providing an assessment as detailed as possible of non-PD development assistance flows to developing countries. The providers of non-PD resources fall into three categories: (i) bilateral non-DAC donors; (ii) multilateral channels that do not adhere formally to the Paris Declaration; and (iii) “private” development assistance providers, including foundations, corporate foundations, hybrid actors —such as the corporate special responsibility activities of business organizations, NGOs, advocacy and rights based organizations, networks of civil society organizations, trade unions, faith based organizations and small community based associations. Data from all available sources on the aid activities of bilateral non-DAC donorsare rather inconsistentand incomplete. This explains the wide variations in estimates of the magnitude of such activities. One data set puts flows from non-DAC donors that might be considered ODA-like in the range of US$12,300-US$14,140 million for 2008. While this is at least in the general range of US$9.5 billion and US$12.1 billion suggested in a United Nations commissioned study in 2006, it is about 300 percent larger than the OECD estimate of just under US$5 billion for 2005. For bilateral non-DAC donors this study shows that: • Available data suffer from large gaps with regard to modalities, allocation patterns and use of specific instruments and conditions. There are major problems of transparency in reporting and