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.
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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 


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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

Nigeria’s border closure: Why it will not pay off

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By Léopold Ghins and Philipp Heinrigs, OECD Sahel and West Africa Club Secretariat


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


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Men offload rice at Bodija market, Ibadan, Nigeria. Flickr/IITA

It has been three months since Nigeria closed its land borders and to date there are few indications as to when they will open again. The country said it wants to reduce the smuggling of goods and stop illegal inflows of Asian rice and outflows of subsidised fuel. More fundamentally, Nigerian authorities justify the closure by the need to support the domestic agricultural sector and accelerate national productivity growth.

The closure is badly affecting livelihoods in local border economies. In Benin, communities in areas close to the Seme border near the sea, or further up north near the Owode border, largely depend on Nigerian markets for their sustenance. The sudden shutdown has caused thousands of smallholder farmers to lose their produce and default on credits. In the Dendi region (an area that spans across northern Benin, Niger and Nigeria), economic networks are strongly integrated across borders. Small traders that live on these networks have lost their principal sources of income. Continue reading

The food economy can create more jobs for West African youth

By Léopold Ghins and Koffi Zougbédé, OECD Sahel and West Africa Club Secretariat 

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Muhammad Sanyang, General Manager of MBK Farms, Banjul, Gambia.
© SWAC/OECD

Youth employment and job creation loom high on development agendas in West Africa. The issue is also a priority at the continental and international levels: decent work and youth empowerment are priority areas within the African Union’s Agenda 2063, and ‘youth and jobs in the Sahel’ will figure prominently amongst talks at the G7 Summit which begins this Saturday in Biarritz.

Such policy focus is necessary in view of the demographic realities in the region. Although unemployment is low overall, informality remains prevalent, and growing numbers of young people struggle to access attractive training or sources of income. West African economies need to create more and better jobs. Yet, from a policy perspective, how to support decent and inclusive job creation is not always clear. Trade-offs in public resource allocations across sectors and information gaps abound.

In this context, what and where are the opportunities for policymakers willing to address the challenge of decent job creation? Continue reading

The Case for Gender-Smart Work Policies: Key to Equality, Good for Business

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By Sandie Okoro, Senior Vice President and World Bank Group General Counsel


This blog is part of a special series exploring subjects at the core of the Human-Centred Business Model (HCBM). The HCBM seeks to develop an innovative – human-centred – business model based on a common, holistic and integrated set of economic, social, environmental and ethical rights-based principles. Read more about the HCBM here, and check out an event about it here

The HCBM project originated in 2015 within the World Bank’s Global Forum on Law, Justice and Development and is now based at the OECD’s Development Centre

This blog is also part of a special series marking the launch of the updated
2019 Social Institutions and Gender Index (SIGI)


We have witnessed numerous efforts to enhance gender equality throughout the past decade. Legal reforms are taking place worldwide, and discriminatory laws are slowly being struck down in favour of parity.[1] But despite developments in employment laws, inequality persists. Women’s labour participation has been stagnant, and last year, the already low number of female CEOs tumbled even further.[2] As the provider of 90% of jobs worldwide,[3] the private sector plays a significant role in the push for gender equality in employment. By adopting gender-smart policies, companies may be able to fill the gaps unaddressed by laws and minimise the impacts of inequality in the workplace. Although not all women work in these institutions, such policies are nonetheless impactful for those who do and could set in motion a new and replicable culture of work – one that is both business-smart and more gender-inclusive. Continue reading

The Sahel: responding to emergencies with efficiency

By Abdoul Salam Bello, Senior Fellow, Africa Center, Atlantic Council

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Image by Anton Wagner/Pixabay

The situation in the Sahel is concerning as community conflicts add to existing security, humanitarian and development challenges. What is now at hand is an emergency requiring the Sahel countries to respond with a sense of urgency. And not only is a greater and effective State presence necessary, but also improved synergies and coordination amongst stakeholders, including beneficiary communities and the private sector whose role is often overshadowed and underleveraged.

Here’s what we know: security challenges in the Sahel region put additional pressure on governments’ budget. This consequently generates significant macroeconomic and fiscal costs. Mali, for example, almost quadrupled its military spending from USD 132 million to USD 495 million from 2013 to 2018 according to figures from the Stockholm International Peace Research Institute (SIPRI). Over the same period, Niger increased its military spending by 2.5-fold, from USD 91.6 million to USD 230 million, while Burkina Faso doubled its expenditures from USD 142 million to USD 312 million. Mauritania spent 4.1% of its GDP on security spending in 2016, while Chad spent the equivalent of 5.6% in 2013. Such security expenditures often crowd out social investments. In 2018, for instance, Niger spent 17% of its total budget on security compared to 11% on health. If this trend persists, it would hinder the States’ ability to implement critical social programmes needed to achieve the Sustainable Development Goals (SDGs). Continue reading

Tackling Employer-Supported Childcare: A journey from why to how

By Rudaba Zehra Nasir, Global Lead for Tackling Childcare and Women’s Employment, IFC Gender Secretariat [@RudabaNasir]


The OECD Policy Dialogue on Women’s Economic Empowerment aims to generate evidence and guidance for policy makers and development partners on how to unlock women’s economic potential. The latest publication, “Enabling Women’s Economic Empowerment: New approaches to unpaid care work in developing countries”, presents evidence-based analysis and policy guidance on what works to recognise, reduce and redistribute women’s unpaid care work and achieve SDG 5.4 as an entry point for promoting women’s economic empowerment in developing countries. Accessible quality childcare is one solution where both governments and the private sector can contribute, as explored further in this blog.

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My son calls me ‘Aunty’

Shazia, a mother to a toddler, migrated to Dhaka to work at a garment factory. “When I visit my village, my son calls me ‘Aunty,’” she says, with tears in her eyes. Separated from his mother for long periods of time, the son barely knows her.

I met Shazia last year at the factory where she works. She feels conflicted about leaving her son in her mother-in-law’s care. “Sometimes I think about quitting my job and going back to raise him myself.”

Shazia is not alone. The more parents we talk to in focus groups, interviews and surveys from Bangladesh to Fiji, the more it becomes clear that they share similar stories. Parents report feeling stressed and guilty, taking time off from work or being present but not productive, quitting due to lack of family-friendly workplace support, and low levels of awareness and trust in available childcare options.

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