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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
22
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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
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