Covid-19: time to unleash the power of international co-operation

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By Mario Pezzini, Director, OECD Development Centre and Special Advisor to the OECD Secretary General on Development


This blog is part of a series on tackling the coronavirus (COVID-19) in developing countries. The OECD is compiling data, information, analysis and recommendations regarding the health, economic, financial and societal challenges posed by the impact of Coronavirus (COVID-19). Please visit our dedicated page for a full suite of coronavirus-related information.


Development co-operationThe rapid spread of the dire human, social and economic impacts of the coronavirus crisis shows just how interconnected we are. International co-operation has become –literally– vital.

A health crisis has set off a global economic crisis, where shocks on the demand and supply sides are combining in an unprecedented scenario. Many developing countries are bracing themselves. While Europe is struggling to contain and cope with a spiralling number of cases and fatalities, the effects in countries where health systems are already weak, economies are highly dependent on global demand, and strict containment policies are more difficult to implement, could be even more disastrous.

Major outbreaks in developing countries could cause the collapse of weak health systems and expose gaps in social protection programmes, especially in Africa, where so many schemes rely on official development assistance. A humanitarian crisis may be in the making: travel restrictions affect the delivery of humanitarian assistance, and infections in refugee camps – largely hosted in developing countries – will be difficult to fight. The ILO estimates that 25 million jobs could be lost worldwide, possibly more, as the majority of workers in developing countries are in the informal economy. Continue reading

Lessons from coronavirus for the future of ‘aid’

By Jonathan Glennie, Senior Fellow,  Joep Lange Institute


This blog is part of a series on tackling the coronavirus (COVID-19) in developing countries. The OECD is compiling data, information, analysis and recommendations regarding the health, economic, financial and societal challenges posed by the impact of Coronavirus (COVID-19). Please visit our dedicated page for a full suite of coronavirus-related information.


 

Beijing airport tarmac by Cory Doctorow
Beijing airport tarmac. Photo by Cory Doctorow

In December 2019 cases of a little-known disease called coronavirus were reported in Wuhan, a city in China with a population of about 11 million. As of 20 January 2020 there were 282 confirmed cases of the virus, 278 of which originated in China. Less than three months later, over 3,400 people in Italy were dead. Countries all over the world are gearing up for long periods of lockdown as a global pandemic takes hold. If ever proof were needed that health concerns in one country require a coordinated and well-funded global response, this is it.

What does this tell us about the future of global cooperation? The next chapter in the story of the China−Italy coronavirus relationship is equally relevant. On 13 March China sent a planeload of experts and medical supplies to Italy, including masks and respirators. Italy is one of the world’s richest countries (average income, US$34,480); despite rapid advance over the past decades, China is still much poorer (average income, US$9,770). Continue reading

Mind the SDG gap: don’t forget sustainable domestic financing

By Sebastian Nieto Parra, Head of Latin America and the Caribbean Unit, OECD Development Centre, Mario Pezzini, Director of the OECD Development Centre and special Advisor to the OECD Secretary General on Development, and Joseph Stead, Senior Policy Analyst, OECD Centre for Tax Policy and Administration

 

closing-gapThe “Decade of Delivery” for the 2030 Sustainable Development Goals (SDGs) calls for finding sustainable ways to finance development. Closing the financing gap by 2030 will require between USD5 and USD7 trillion annually, and between USD2.5 and USD3 trillion of that amount for developing countries alone. There are several approaches to financing the SDGs in low-income countries. External private financing and official development assistance both have a role to play but these are not the only options. We must take an in depth-look at all options, including taxes, local financing through domestic private banks or national development banks, and local public-private partnerships. Due to the colossal amount needed to finance the SDGs, they must all be taken into consideration. But some can be particularly costly. Experiences of public-private partnerships in developing and emerging economies for example, have often resulted in high fiscal costs and a high rate of renegotiations after only a few years of operation.
Continue reading

Least developed countries can become authors of their technological revolution

By Ratnakar Adhikari, Executive Director of the Enhanced Integrated Framework Executive Secretariat, World Trade Organization and Fabrice Lehmann, Associate, Enhanced Integrated Framework (EIF)

SIGI-Digital-Human-RightsThe fourth industrial revolution is charting a new and uncertain course for the world economy. Least developed countries must prepare for the opportunities and risks that it brings. It is characterised by the confluence of new technologies, fusing the digital, physical and biological spheres.

Rapid technological change is expected to have a profound impact on economic and social development in countries at all levels of income. Opportunities include harnessing the possibilities of digitalisation for sustainable development and social empowerment. Risks involve marginalisation and a widening chasm between poor nations and their emerging and industrialised partners.

Can countries in the early stages of development reap the benefits and become authors of their technological revolution? Continue reading

Helping Cities and Regions achieve the SDGs: Partnering for Decentralised Development Co-operation

By Jorge Moreira da Silva, Director, OECD Development Co-operation Directorate and Lamia Kamal-Chaoui, Director, Centre for Entrepreneurship, SMEs, Regions and Cities (CFE)

 

UrbanisationAll too often international aid is viewed through the traditional lens of nation states. A rich-poor relationship of a developed country providing a one-way flow of financial assistance to a developing country to address crucial development issues, whether they are societal, economic or environmental in nature. However, the impact of these problems is acutely felt at the local level and requires global collaborative responses at the subnational level. Decentralised development co-operation (DDC) – the exchange of resources between subnational governments in developed and developing countries – offers a pragmatic and effective approach to addressing the most critical issues and to achieving the sustainable development goals.

Following the onset of the Syrian crisis, Lebanon has had to provide adequate housing and basic services to over one million refugees, or nearly 20% of the world’s total Syrian refugee population.[1] At the forefront of this daunting task are municipalities, which in most instances critically lack the resources and funding to deliver. Continue reading

How do Nations Learn? Why Development is First and Foremost About Learning

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By Dr Arkebe Oqubay, Senior Minister and Special Advisor to the Prime Minister of Ethiopia 


This blog is part of a series marking the upcoming 
19th International Economic Forum on Africa 


Photo-by-Nathan-Dumlao-Unsplash
Photo by Nathan Dumlao on Unsplash

Policy makers and academics alike puzzle over why some countries achieve economic ‘growth miracles’ while others lag behind. Of the 100 middle-income economies in 1960, fewer than a dozen transitioned into high-income economies. Economic history and empirical observations show that progress is linked to how nations learn and more specifically to the processes of technological learning, industrial policy, and catch-up. By looking at the cases of Japan, the United States, China and Ethiopia, I argue that commitment to learning by governments and dynamic technological learning by firms are key to economic catch-up. How these and other nations learn can provide valuable insight for African countries.

How did Japan overtake Europe in the mid-20th century?

The key driver of catch-up in Japan was technological learning and an active industrial policy. Japan’s learning experience involved the transfer of skills and knowledge, the importation of equipment and the acquisition of turnkey projects to develop technological capability. Japan also developed industrial infrastructure, including railways and the telegraph, by deploying state-owned enterprises. Continue reading

Et si la crise sécuritaire du Sahel était aussi (voire avant tout) économique ?

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Par Maman Sambo Sidikou, Secrétaire permanent du G5 Sahel[1]


Ce blog fait partie d’une série marquant
le 19e Forum économique international sur l’Afrique


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Femme tirant de l’eau d’un puits en Natriguel, Mauritanie. Photo: Pablo Tosco/Oxfam/Flickr

Le Sahel vit un tournant, une accélération de l’histoire dont le coût humain est élevé. Nos jeunes pays connaissent une croissance démographique sans précédent. Notre population est de plus en plus jeune et de plus en plus urbaine. Même si elle est élevée, la croissance économique ne permet pas de répondre aux attentes des habitants de plus en plus nombreux. Sur nos vastes territoires, certaines interrogations se font aujourd’hui pressantes. Pourquoi, alors que la « frontière » est la marque de l’État, sa présence y est-elle si discrète ? Quelle attention est accordée aux citoyens vivant loin des capitales ? Comment, lorsque l’on est absent, être perçu comme « légitime », digne de confiance et capable de changer le cours des choses ? C’est à ces questions que nos États et sociétés doivent répondre. Continue reading