Coherence in Global Policy Making for Sustainable Economic Development and Poverty Reduction Michele Ruiters, PhD Institute for Global Dialogue (IGD)

Michele Ruiters, IGD - UNCTAD XII Civil Society2 Partnerships for Development MDG 8 commits governments to ‘develop a global partnership for development’ Policy coherence for development – issues beyond aid: trade, migration, investment, climate change, arms exports, organised crime, etc. Assumption that trade leads to development Open developing markets to developed partners

Michele Ruiters, IGD - UNCTAD XII Civil Society3 Global policy Cancún – symmetry in global governance architecture, improve negotiating processes, increase political will and public support to address issues, where policies clash, focus on development rationale Doha Development Agenda (2001) – reform and liberalisation of trade policy for growth, development and recovery World Summit on Sustainable Development (2002) Beijing Platform for Action Millennium Development Goals

Michele Ruiters, IGD - UNCTAD XII Civil Society4 Singapore Issues (1996) Investment Competition Policy Transparency in Government Procurement Trade facilitation Linked to: Aid for Trade – how to contribute most effectively to development agenda

Michele Ruiters, IGD - UNCTAD XII Civil Society5 What is Policy Coherence for Development? Coined by OECD-DAC 1991 UN Millennium Declaration (2000) – developed countries to ensure adequate resources and policy coherence, and to balance the responsibilities of developing and developed countries when reporting on development progress.

Michele Ruiters, IGD - UNCTAD XII Civil Society6 Monterrey Consensus (2002) International Conference on Finance for Development Commitment to support development in developing countries. Responsibility of: Developing nations – good governance, good policies and conflict resolution Developed countries – increased and more effective aid and policy coherence

Michele Ruiters, IGD - UNCTAD XII Civil Society7 Characteristics of Policy Coherence Combination of local, national, regional and international policy decisions aimed at resolving particular challenges Development policies interact with informal institutions – norms, practices, codes of conduct International organisations and donors are well placed to create policy coherence across their aid packages e.g. DFID, EU, European Economic Commission, OECD policies that support specific efforts to help and sustain the development process (OECD)

Michele Ruiters, IGD - UNCTAD XII Civil Society8 Policy Incoherence Actions that reduce current income and growth prospects in developing countries and thus run counter to aid policies that work to develop their competitiveness, i.e. their capacity to capture the benefits of globalisation – OECD, 2003.

Michele Ruiters, IGD - UNCTAD XII Civil Society9 Benefits of Policy Coherence Benefits of globalisation to be more equitably distributed and shared Build political agreement among stakeholders Combine and harmonise efforts and resources to address areas of need (human security issues) Policy synergies across a range of issues (trade, security, health, education) support the achievement of development objectives Policy coherence saves time, money and effort and targets neediest communities Policy coherence could be achieved through policy impact assessments and sharing of best practices

Michele Ruiters, IGD - UNCTAD XII Civil Society10 Policy Coherence Initiatives Recommendation of the ILO World Commission on the Social Dimension of Globalisation (2004) Poverty reduction, full employment, provision of decent work and reducing growing inequality Progressively develop integrated proposals in order to balance economic, social and developmental policies

Michele Ruiters, IGD - UNCTAD XII Civil Society11 Role of Developed Nations Challenge incoherence Play to common interests Help build capacity Should ensure policy coherence mutually reinforcing Evaluate projects from partner country perspective Conditionalities?

Michele Ruiters, IGD - UNCTAD XII Civil Society12 Regional approaches to policy coherence SADC Regional Poverty Framework South East Asia NEPAD ACP – Cotonou Agreement South-South agreements (IBSA, IBSA+China) Bi- and multilateral trade agreements for development (EPAs)

Michele Ruiters, IGD - UNCTAD XII Civil Society13 Recommendations Separate policy coherence from coherence with neo-liberal policies Define what coherence means and whose concept of coherence is dominant Policy coherence should take into account the specificities of a national economy in relation to its development needs Demystify the link between trade, growth, development and poverty eradication

Michele Ruiters, IGD - UNCTAD XII Civil Society14 And…. Institutions need to be overhauled to increase policy coherence Seek mechanisms to increase communication, negotiation and consensus among communities Enhanced partnerships between recipient and donor countries to identify policy targets Finding alternative ways to enhance development and more equitable trade.

Michele Ruiters, IGD - UNCTAD XII Civil Society15 Some Alternatives There cannot be a successful globalisation without a successful localisation – Secretary General Coherence between economic and social objectives ‘Societal Coherence’ – impact on well-being, poverty eradication, human security and sustainability of combined activities of government, business, consumers and civil society – Worldconnectors Inclusive democratic practice – reform of the international financial architecture and global governance institutions