DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES Challenges, constraints and opportunities in development cooperation Lars Engberg-Pedersen Head of research unit on Politics and governance

DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES 5 key contradictions in aid  Coordination versus proliferation and fragmentation  Recipient ownership versus aid accountability to tax payers  The poverty reduction objective versus the allocation of aid resources  International versus national development  Differentiation of low-income countries versus across-the-board approaches to development

DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES The ideal solution 1.Cutting the ‘gift economy’ relations between donor and recipient countries by financing development cooperation through, e.g., international taxation. 2.Significantly strengthening policy coherence for development by integrating international development, economic and environmental policies. 3.Creating a multilateral framework for and oversight of development cooperation.

DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES The contemporary world (1)  Emerging economies – the balance of economic power is tilting slowly, but surely. –How united are China, India, Brazil and South Africa? –For how long will the South-North divide dominate international politics? –How significant will the backlash in Europe and North America be?

DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES The contemporary world (2)  International negotiations – from UN to G20. –Will we get a multilateral climate change deal? –When will international taxation become significant? –Will the WTO deadlock be broken? –Will a rights-based normative framework for international cooperation emerge?

DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES The contemporary world (3)  Crises – fundamental institutional innovation takes place in response to crisis.  Institutional innovation will be shaped by: –The nature of the crisis –The relative strength of different interests (power) –Recent experience with institutions –Dominant ideas about how to move on

DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES What to do in dev. cooperation?  Prepare the ground for action when the crisis hit.  PCD, the Paris agenda, multilateral cooperation and division of labour all point in the right direction, but cannot be implemented to the extent needed.  Create linkages with Environmental Policy Integration.  Build trust.