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S e p t e m b e r 1 52 0 1 5

Country Ownership in an Interconnected World

No Longer at Ease

Patrick C. FineChief Executive Officer, FHI 360

@pfinefine

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Ownership matters

Results matter

Policy matters

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S e p t e m b e r 1 52 0 1 5

Country Ownership in an Interconnected World

No Longer at Ease

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Bottom Line Up Front (BLUF)

Where ODA remains a major source of funding, countries need strategies to:

• Expand their access to non-concessional funding and raise their own resources

• Deepen their connectivity with the rest of the world.

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Agenda

• The concept of country ownership

• A changed landscape from postcolonial to post-global

• Ownership in an interconnected world

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The Western ruling groups are conceited, full of themselves, ignorant of our conditions, and they make other people’s business their business

Yoweri Museveni2006

“”

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10August 21, 1972

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Key

Practice into policy: Country ownership as a development doctrine

2002 Rome

2002 Monterrey Conference

2005 Paris

2008 Accra

2008 Doha

Conference

2011 Busan

2015 Addis Ababa Conference

International Conferences on Financing for Development

High Level Fora on Aid Effectiveness

“The key element that will guide this work is a country-based approach that emphasizes

country ownership and government leadership”

“Each country has primary responsibility for its own economic and social development, and the

role of national policies and development strategies cannot be overemphasized.”

“Partner countries commit to… exercise leadership in developing and implementing their national development strategies through broad

consultative processes.”

“Developing country governments will take stronger leadership of their own development

policies, and will engage with their parliaments and citizens in shaping those policies.”

“We reaffirm that national ownership and leadership of development strategies and good

governance are important…”

“Partnerships for development can only succeed if they are led by developing countries,

implementing approaches that are tailored to country-specific situations and needs.”

“Private business activity, investment and innovation are major drivers of

productivity, inclusive economic growth and job creation.”

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Donor vs. developing country perspectives

DONOR DEVELOPING COUNTRY

OwnershipPartnership and co-ownership

“partnership, not patronage”- President Obama

…partnership

…mutual accountability …participatory processes

broad-based participation“

”- Millennium Challenge Corporation’s Principles into Practice

“bottom-up, participatorychange in opposition to the

top-down reforms”- David Booth, Overseas Development Institute

“…Africa can control its own destiny by taking greater ownership of our continent's development agenda.” - Nelson Sewankambo, President of the Uganda National Academy of Sciences

“We in the developing countries must own the development agenda, and our partners have to align their support to our agenda, our priorities and the sequencing we have set for ourselves... Development cannot be imposed, it can only be facilitated.”- President Benjamin Mkapa of Tanzania

“Despite their good intentions, their perspective is often predicated on paternalism not on partnership, on charity not on self-reliance, and on promises unfulfilled rather than real change on the ground.” - Rwandan President Paul Kagame

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Global Financing

Facility

Millennium Challenge

Corporation

Global Partnership

for Education

Global Fund to Fight

AIDS, Tuberculosis and Malaria

Fixed Obligation

Grants

USAID Local Solutions

Rollback Malaria

Sector-Wide

Approaches

Policy into practice: new funding mechanisms

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An interconnected world is fundamentally different

Urbanization

Infrastructure Development

Entrepreneurship

Global Equity Markets

Labor Market/ Employment

Trade Development

Currency Valuation

Social Media

Economic

Technology

Environment

Government

Mobile Phones

MOOCsIdentity Security

Legal Registration

Political Stability

Corruption/ Transparency

Public Services

Financial Transactions

Food Security

Water Security

Solar Energy

Population Migration Natural

Resource Development

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…And Uganda is transforming with it

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Population has grown around the world

1980 2015 21002050

4.4 billion 7.3 billion 9.7 billion 11+ billion

• Developing countries accounted for 97% of the growth

• Africa’s current population is 1.2 billion (16%)

• The global population growth will be largely driven by Africa• Africa’s population is expected to triple or quadruple over the next 85 years

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…And Uganda is a key contributor

1992 2015 21002050

18 million 38 million 102 million 205 million

By 2100, Uganda’s population will increase fivefold and become one of the top 10 most populated countries

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A world connected through the internet

0

5

10

15

20

25

30

35

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Internet users per 100 people

Uganda Middle income Least developed countries

World Development Indicators

African Undersea Cables Map 2014 Monthly Broadband Prices

Across Africa

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A world connected through cell phones

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20102013

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A world connected through education2011-2016 E-Learning Aggregate Growth

Rates by Region

Source: E-Learning Market Trends & Forecast 2014 - 2016 Report and 2011-2016 Growth rates by region (Ambient Insight 2012)

2014 E-Learning Global Market

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A world connected through trade

Bank of Uganda

0

500

1,000

1,500

2,000

2,500

97/9

898

/99

99/0

000

/01

01/0

202

/03

03/0

404

/05

05/0

606

/07

07/0

808

/09

09/1

010

/11

11/1

212

/13

13/1

414

/15

Uganda exports by market(US$ millions)

COMESA European Union Middle East

Asia Rest of Africa Rest of Europe

The Americas Unclassified

2015

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The changing landscape

Education and training

Communication and

information

Transportation and migration

Trade and industry

DEVELOPMENT FINANCING

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-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

US$

bill

ion

DomesticexpenditureShort term debt

Long term debt

Remittances

Portfolio Equity

FDI

Gross OOFs

Source: ODA and OOFs (OECD); FDI (UNCTAD); portfolio equity and remittances (World Bank); loans data (World Bank’s International Debt Statistics); government expenditure (IMF).

The evolution of financing for development

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LDCs still dependent on aid

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2004 2005 2006 2007 2008 2009 2010 2011 2012

US

Mill

ions

Global Total Resource Flows

ODA OOF Export CreditsFDI Other Securities Private GrantsRemittances

Increased private sector investment at the global level has not translated into significant increases in private flows to LDCs

Source Data: OECD Data; http://public.tableausoftware.com/views/Non-ODAbyrecipient/ResourceReceipts?amp;:embed=y&:display_count=no&:showVizHome=no

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

2004 2005 2006 2007 2008 2009 2010 2011 2012

US

Mill

ions

LDC Resource Flows

ODA OOF Export CreditsFDI Other Securities Private Grants

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Country upward mobilityLI

C 20

00AfghanistanAngolaArmeniaAzerbaijanBangladeshBeninBhutanBurkina FasoBurundiCambodiaCameroonCentral African RepublicChadChinaComorosCongo, Dem. Rep.

Congo, Rep.Côte d'IvoireEritreaEthiopiaGambia, TheGhanaGuineaGuinea-BissauHaitiHondurasIndiaIndonesiaKenyaKorea, Dem. Rep.Kyrgyz RepublicLao PDR

LesothoLiberiaMadagascarMalawiMaliMauritaniaMoldovaMongoliaMozambiqueMyanmarNepalNicaraguaNigerNigeriaPakistanRwanda

São Tomé and PrincipeSenegalSierra LeoneSolomon IslandsSomaliaSudanTajikistanTanzaniaTogoTurkmenistanUgandaVietnamYemen, Rep.ZambiaZimbabwe

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Country upward mobilityAfghanistanAngolaArmeniaAzerbaijanBangladeshBeninBhutanBurkina FasoBurundiCambodiaCameroonCentral African RepublicChadChinaComorosCongo, Dem. Rep.

Congo, Rep.Côte d'IvoireEritreaEthiopiaGambia, TheGhanaGuineaGuinea-BissauHaitiHondurasIndiaIndonesiaKenyaKorea, Dem. Rep.Kyrgyz RepublicLao PDR

LesothoLiberiaMadagascarMalawiMaliMauritaniaMoldovaMongoliaMozambiqueMyanmarNepalNicaraguaNigerNigeriaPakistanRwanda

São Tomé and PrincipeSenegalSierra LeoneSolomon IslandsSomaliaSudanTajikistanTanzaniaTogoTurkmenistanUgandaVietnamYemen, Rep.ZambiaZimbabwe

LMIC

ArmeniaBangladeshBhutanCameroonCongo, Rep.Côte d'IvoireGhanaHondurasIndiaIndonesiaKenyaKyrgyz RepublicLao PDRLesothoMauritaniaMoldovaMyanmarNicaragua

NigeriaPakistanSão Tomé and PrincipeSenegalSolomon IslandsSudanTajikistanVietnamYemen, Rep.Zambia

UM

IC

AngolaAzerbaijanChinaMongoliaTurkmenistan

LIC

AfghanistanBeninBurkina FasoBurundiCambodiaCentral African RepublicChadComorosCongo, Dem. Rep.EritreaEthiopiaGambia, TheGuineaGuinea-BissauHaiti

Korea, Dem. Rep.LiberiaMadagascarMalawiMaliMozambiqueNepalNigerRwandaSierra LeoneSomaliaTanzaniaTogoUgandaZimbabwe

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Common themes in graduated countriesAfghanistanAngolaArmeniaAzerbaijanBangladeshBeninBhutanBurkina FasoBurundiCambodiaCameroonCentral African RepublicChadChinaComorosCongo, Dem. Rep.Congo, Rep.

Côte d'IvoireEritreaEthiopiaGambia, TheGhanaGuineaGuinea-BissauHaitiHondurasIndiaIndonesiaKenyaKorea, Dem. Rep.Kyrgyz RepublicLao PDRLesothoLiberia

MadagascarMalawiMaliMauritaniaMoldovaMongoliaMozambiqueMyanmarNepalNicaraguaNigerNigeriaPakistanRwandaSão Tomé and PrincipeSenegalSierra Leone

Solomon IslandsSomaliaSudanTajikistanTanzaniaTogoTurkmenistanUgandaVietnamYemen, Rep.ZambiaZimbabwe

LMIC

UM

IC

Policies to enable connectivity:a) Allow private

enterpriseb) Protect private

propertyc) Control corruptiond) Macro-economic

management

1.

Raise their own development finance2.

ArmeniaBangladeshBhutanCameroonCongo, Rep.Côte d'IvoireGhanaHondurasIndiaIndonesiaKenyaKyrgyz RepublicLao PDRLesothoMauritaniaMoldovaMyanmarNicaragua

NigeriaPakistanSão Tomé and PrincipeSenegalSolomon IslandsSudanTajikistanVietnamYemen, Rep.Zambia

AngolaAzerbaijanChinaMongoliaTurkmenistan

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Creating an enabling environment: LMICs outperform LICs

2.3

2.4

2.5

2.6

2.7

2.8

2.9

3

3.1

3.2

3.3

3.4

3.5

3.6

Equity of publicresource use

Property rights andrule-based governance

Quality of budgetaryand financialmanagement

Efficiency of revenuemobilization

Transparency,accountability, and

corruption in the publicsector

Low income countries (27) Graduated countries (26)

World Bank CPIA

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Country ownership in the 21st century:

1980 - 2000 2015

Donor funding is… Dominant source Complementary source

Job creation and technology transfer mainly from…

Donor programs Businesses, research institutes, entrepreneurs

International financing relationships predominately with…

Donor governments, multilateral institutions

banks, businesses and educational and scientific organizations

Venue for asserting primacy of national priorities is…

international donor conferences national institutions

Development narrative is about country ownership achieving national objectives

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Ownership matters

Results matter

Policy matters

Connectivitymatters

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Samra wastewater treatment plant in Jordan

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Sustainable Development Goal 17

“Strengthen the means of implementation and revitalize the global partnership for

sustainable development finance.”

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What does this mean for Uganda?

Tax reform to increase domestic resource mobilization

Private property protections and transparent regulations to improve business conditions

More effective control of corruption

Continue to deepen international connections

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But people cannot be developed, they can only develop themselves.

Julius NyerereFreedom and Development, 1973

“ ”

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But could still improve on ease of tradeIndicator Uganda Sub-Saharan

Africa Botswana OECD

Documents to export (number) 7 8 6 4Time to export (days) 28.0 30.5 27.0 10.5Cost to export (US$ per container) 2,800.0 2,200.7 3,145.0 1,080.3Cost to export (deflated US$ per container) 2,800.0 2,200.7 3,145.0 1,080.3

Documents to import (number) 10 9 6 4Time to import (days) 31.0 37.6 35.0 9.6Cost to import (US$ per container) 3,375.0 2,930.9 3,710.0 1,100.4Cost to import (deflated US$ per container) 3,375.0 2,930.9 3,710.0 1,100.4

Doing Business Report, 2015