balancing global public goods and development needs of developing countries uma lele, former senior...
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Balancing Global Public Goods and Balancing Global Public Goods and DevelopmentDevelopment
Needs of Developing countries Needs of Developing countries
Uma Lele, Former Senior Advisor, Uma Lele, Former Senior Advisor, Independent Evaluation Group, The Independent Evaluation Group, The
World Bank, World Bank,
Stockholm, August 21, 08Stockholm, August 21, 08
This Presentation Draws on This Presentation Draws on Evidence FromEvidence From
Evaluations of World Bank’s Evaluations of World Bank’s Implementation of the 1991 Forest Strategy—largest IEG Sector Implementation of the 1991 Forest Strategy—largest IEG Sector
Evaluation in 2000Evaluation in 2000 Global Partnership Portfolio Review in 2003 of 200 Partnerships of Global Partnership Portfolio Review in 2003 of 200 Partnerships of
which 70 Global Programs leading to Phase 1 Reportwhich 70 Global Programs leading to Phase 1 Report Meta Evaluation of the CGIARMeta Evaluation of the CGIAR The Bank’s Approach to Global Programs-Phase 2 Report includingThe Bank’s Approach to Global Programs-Phase 2 Report including
Global Health Programs of Communicable Diseases-GFATM, GAVI, Stop TB, Global Health Programs of Communicable Diseases-GFATM, GAVI, Stop TB, UNAIDSUNAIDS
Environmental Programs—GEF, MLF, PCFEnvironmental Programs—GEF, MLF, PCF Financial Sector Stability--FSAPFinancial Sector Stability--FSAP Integrated Trade FacilityIntegrated Trade Facility Others including –Cities AllianceOthers including –Cities Alliance
Climate Change Initiatives of Reduced Deforestation and the Bank’s Climate Change Initiatives of Reduced Deforestation and the Bank’s 2002 Forest Strategy Implementation in 20092002 Forest Strategy Implementation in 2009
Regional Public Goods Dimension of Program on TB Control in AfricaRegional Public Goods Dimension of Program on TB Control in Africa FAO Evaluation—Panel Member Responsible for all of FAO’s FAO Evaluation—Panel Member Responsible for all of FAO’s
Technical workTechnical work Recent Global Program Reviews Carried out by WB IEGRecent Global Program Reviews Carried out by WB IEG
Questions AddressedQuestions Addressed
What are public goods?What are public goods? Why have global and regional Why have global and regional
programs become important?programs become important? What ingredients are needed to What ingredients are needed to
produce GPGs and RPGs?produce GPGs and RPGs? What Implications for Donors—What Implications for Donors—
bilateral and multilateral bilateral and multilateral organizations?organizations?
Public Goods—National, Regional and Public Goods—National, Regional and Increasingly GlobalIncreasingly Global
Their non-rivalry and non-excludability spill Their non-rivalry and non-excludability spill across national boundariesacross national boundaries Non-rivalryNon-rivalry --many can consume, use, or enjoy a --many can consume, use, or enjoy a
public good at the same time: public good at the same time: one’s consumption does one’s consumption does not reduce benefits others can derive from consuming not reduce benefits others can derive from consuming the same good at the same time. the same good at the same time.
Non-excludabilityNon-excludability--it is difficult to exclude from --it is difficult to exclude from consumption those who do not pay for, or otherwise consumption those who do not pay for, or otherwise contribute to, the cost of supplying the goodcontribute to, the cost of supplying the good
Importance of Synergetic Relationship AmongImportance of Synergetic Relationship Among National Public Goods-National Public Goods- Regional Public Goods-focus covering one regionRegional Public Goods-focus covering one region Global Public Goods--Covering several regionsGlobal Public Goods--Covering several regions
Reasons for Growth of Global ProgramsReasons for Growth of Global Programs
1.1. Growing Global Agenda in Absence of a Global Government leading Growing Global Agenda in Absence of a Global Government leading to changing “flavor of the month”—from MDGs to Climate Changeto changing “flavor of the month”—from MDGs to Climate Change
2.2. Acting Alone is not a solutionActing Alone is not a solution3.3. Economies of Scale in Delivering Technologies– CGIAR, Vaccine Economies of Scale in Delivering Technologies– CGIAR, Vaccine
ResearchResearch4.4. Increased donor expectation that IOs should promote compliance of Increased donor expectation that IOs should promote compliance of
international norms and standards, capture and share global international norms and standards, capture and share global experience and good practice with developing country member experience and good practice with developing country member countries.countries.
5.5. IOs should deliver global public goodsIOs should deliver global public goods 6.6. Growing skepticism about IO’s performance in delivering on Growing skepticism about IO’s performance in delivering on
economic development at the national leveleconomic development at the national level7.7. Declining In-House Capacity of Bilateral DonorsDeclining In-House Capacity of Bilateral Donors8.8. Growing Role of Civil SocietyGrowing Role of Civil Society9.9. World Bank and IMF in search of new missions as their traditional World Bank and IMF in search of new missions as their traditional
lending role declines together with confidence in the ability of UN lending role declines together with confidence in the ability of UN agencies to deliver????agencies to deliver????
Global Programs As Vehicles to Global Programs As Vehicles to Deliver Global Public GoodsDeliver Global Public Goods
Agreed objectivesAgreed objectives Partners contribute resources (financial, Partners contribute resources (financial,
technical, staff, reputational, etc.)technical, staff, reputational, etc.) Program Activities at global, regional, or multi-Program Activities at global, regional, or multi-
country (not single country) levelscountry (not single country) levels New organization with a governance structure New organization with a governance structure
and management unit to conduct activities and and management unit to conduct activities and deliver on objectivesdeliver on objectives
Global Programs either in Existing Organizations Global Programs either in Existing Organizations or in Newly established organizations—Global or in Newly established organizations—Global Fund for ATM, Gates Program for Green Fund for ATM, Gates Program for Green Revoluation in AfricaRevoluation in Africa
Rapidly Expanding Global Programs to Deliver Rapidly Expanding Global Programs to Deliver Global Publc Goods?Global Publc Goods?
World Bank Participation in Global Programs increased from World Bank Participation in Global Programs increased from 70 in 2004 to 106 in 200870 in 2004 to 106 in 2008
World Bank Participation in 55 Regional programs in 2008World Bank Participation in 55 Regional programs in 2008 Together Global Programs spent $5.0 billion in FY 2007Together Global Programs spent $5.0 billion in FY 2007
4 percent4 percent from the World Bank – $175 million from the from the World Bank – $175 million from the Development Grant Facility (DGF) and $25 million from the Development Grant Facility (DGF) and $25 million from the Bank’s administrative budgetBank’s administrative budget
Additional 50 percentAdditional 50 percent – $2.5 billion – from Bank- – $2.5 billion – from Bank-administered trust fundsadministered trust funds
Global programs add $100 million (???) a year to the Bank’s Global programs add $100 million (???) a year to the Bank’s administrative budget according to IEGadministrative budget according to IEG
The Bank’s Sustainable Development Network manages The Bank’s Sustainable Development Network manages more trust funds than it manages the World Bank’s more trust funds than it manages the World Bank’s administrative budgetadministrative budget
Bank’s Indonesia office manages larger trust funds than the Bank’s Indonesia office manages larger trust funds than the Bank’s administrative budget for IndonesiaBank’s administrative budget for Indonesia
World Bank Role in Delivering GPGs World Bank Role in Delivering GPGs Through Country Assistance Is Also Through Country Assistance Is Also
IncreasingIncreasing
FY02 Bank's Core LEN - GPGs ($Mil, %) /a
467, 2.4%
104, 0.5%
76, 0.4%
18,667, 95.1%
322, 1.6%
Communicable Diseases
Environmental Commons
IFA
Trade
Other Themes
FY07 Bank's Core LEN - GPGs ($Mil, %) /a
879, 3.6%
51, 0.2%
988, 4.0%
22,203, 89.9%
574, 2.3%
Communicable Diseases
Environmental Commons
IFA
Trade
Other Themes
GPGs also received growing support through Bank-managed/implemented trust funds GPGs also received growing support through Bank-managed/implemented trust funds (about $100 million committed in FY02, reaching $350 million in FY07)(about $100 million committed in FY02, reaching $350 million in FY07)
Types of Global Public Goods-1Types of Global Public Goods-1
World Bank’s focus on Four GPGs:World Bank’s focus on Four GPGs: Communicable Diseases (Malaria, Tb, Communicable Diseases (Malaria, Tb,
HIV/AIDS, etc.) – But there are more than HIV/AIDS, etc.) – But there are more than 100 initiatives in global initiatives in 100 initiatives in global initiatives in healthhealth
Environmental Commons (Climate Environmental Commons (Climate Change, Ecosystems, Shared Nat. Res.)—Change, Ecosystems, Shared Nat. Res.)—carbon funds are proliferating carbon funds are proliferating
International Financial ArchitectureInternational Financial Architecture International TradeInternational Trade
Crucial Role of International Agreements In Crucial Role of International Agreements In Global Public Goods-2Global Public Goods-2
UNFCCC’s Central Role in Climate Change Agreement beyond UNFCCC’s Central Role in Climate Change Agreement beyond 20122012
UN Agencies as depository of hundreds of formal and informal UN Agencies as depository of hundreds of formal and informal agreements. Of global importance e.g., Fishing on the high agreements. Of global importance e.g., Fishing on the high seas, Codex Alimentarius plant genetic resources (ITPGR), seas, Codex Alimentarius plant genetic resources (ITPGR), plant protection (IPPC),plant protection (IPPC),
Trade RulesTrade Rules Environmental Standards and Rules, Food safety standards, Environmental Standards and Rules, Food safety standards,
safe uses of pesticidessafe uses of pesticides Information and Knowledge as GPG– international statisticsInformation and Knowledge as GPG– international statistics Policy As Good Practice and Policy Assistance as GPG—Policy As Good Practice and Policy Assistance as GPG—
Financial and Trade IssuesFinancial and Trade Issues Standards For Treatment of Communicable diseases with cross Standards For Treatment of Communicable diseases with cross
border spill overs—HIV AIDs, TB, Avian Flu border spill overs—HIV AIDs, TB, Avian Flu Other crucial agreements which make the world tick-e.g. Other crucial agreements which make the world tick-e.g.
international air, oceanic navigational/ traffic and postal rulesinternational air, oceanic navigational/ traffic and postal rules Regional Agreements on water, fisheriesRegional Agreements on water, fisheries
Informal Agreements Gaining Greater Informal Agreements Gaining Greater Legitimacy- Global Public Goods-3Legitimacy- Global Public Goods-3
Increasing Role of informal international Increasing Role of informal international standards being turned into de facto binding standards being turned into de facto binding standards—e.g., various forest certification standards—e.g., various forest certification standards, various food safety standards, trade standards, various food safety standards, trade rules, e.g, with regard to trade in engendered rules, e.g, with regard to trade in engendered species of plants and animalsspecies of plants and animals
Bilateral Donors Provide Funds and Bilateral Donors Provide Funds and Participate in GovernanceParticipate in Governance
0 10 20 30 40 50 60 70
Number of Programs (Global & Regional)
Canada
U.K.
U.S.A.
Netherlands
France
Norway
EU
Switzerland
Japan
Sweden
Germany
Denmark
Italy
Australia
of >than 15 World Bank Supported Programsof >than 15 World Bank Supported Programs
International Organizations Contribute International Organizations Contribute Legitimacy and Expertise to Global Programs-Legitimacy and Expertise to Global Programs-those participating in > 6 WB supported global programsthose participating in > 6 WB supported global programs
0 10 20 30 40 50
Number of Programs (Global & Regional)
UNDP
WHO
OECD
FAO
UNEP
UNICEF
IFAD
UNESCO
ILO
UNCTAD
UNFPA
UN-Habitat
Growing Role of Private PhilanthropyGrowing Role of Private PhilanthropyFoundations participating in more than 3 programsFoundations participating in more than 3 programs
0 2 4 6 8 10 12 14
Number of Programs (Global & Regional)
Gates
Rockefeller
Ford
ConservationInternational
McArthur
Declining Budget of UN Agencies: And Declining Budget of UN Agencies: And Competition for ResourcesCompetition for ResourcesFAO’s Budget As of 2005FAO’s Budget As of 2005
(in USD 1,000 at 1994 prices )(in USD 1,000 at 1994 prices )(in USD 1,000 at 1994 prices)
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
94 - 95 96 - 97 98 - 99 00 - 01 02 - 03 04 - 05
Biennium
Available Funds
RegularProgram
Extra-Budget.Non-Em.
Extra-Budget.Emergency
Extra-Budget.Total
TOTAL
Growing Role of Extra Budgetary Resources Growing Role of Extra Budgetary Resources At FAO and Other UN OrganizationsAt FAO and Other UN Organizations
Figure 3 Average Resources Available by Source 1994 - 2005
RegularProgram Funds
57%Extra-Budgetary(Non-emergency)
25%
Extra BudgetaryEmergency (Emergency)
18%
Challenges in Generation Of Global Challenges in Generation Of Global Public GoodsPublic Goods
Divergence In Global and Local PrioritiesDivergence In Global and Local Priorities
Divergence in Global and Local costs and Divergence in Global and Local costs and benefitsbenefits
Generation of Most Generation of Most GlobalGlobal Public Goods requires Public Goods requires strong collaboration with developing countriesstrong collaboration with developing countries
And GPGs Need A COMBINATION OF INPUTSAnd GPGs Need A COMBINATION OF INPUTS
GPGs Need: Advocacy, Knowledge GPGs Need: Advocacy, Knowledge Management, Investment, Capacity Building Management, Investment, Capacity Building
Dissemination of information and Dissemination of information and knowledge knowledge
A Neutral platform for international A Neutral platform for international dialogue and agreementsdialogue and agreements
Advocacy to generate political Advocacy to generate political commitment on issues at various levels. commitment on issues at various levels.
Investible resources Investible resources Technical expertiseTechnical expertise Institutional and human Capacity BuildingInstitutional and human Capacity Building
IEG FindingsIEG Findings
Most finance networking, advocacy or TA Most finance networking, advocacy or TA Only few finance investments:Only few finance investments:
GFATM: About US$1.5 billionGFATM: About US$1.5 billion GEF: About US$500 millionGEF: About US$500 million CGIAR: About US$500 millionCGIAR: About US$500 million GAVI: About US$400 milllionGAVI: About US$400 milllion EFA – Fast Track Initiative: About $150 millionEFA – Fast Track Initiative: About $150 million MLF: About US$100 millionMLF: About US$100 million
IEG Findings: Examples of GPGs IEG Findings: Examples of GPGs With Demonstrated Results With Demonstrated Results
CGIAR’s Plant Breeding ResearchCGIAR’s Plant Breeding Research TDRTDR Stop TBStop TB Gates Funded GAVIGates Funded GAVI International Agreement on Fishing on the High seasInternational Agreement on Fishing on the High seas Agreement on Plant Genetic ResourcesAgreement on Plant Genetic Resources A multi stakeholder approach to handling of hazardous A multi stakeholder approach to handling of hazardous
pesticidespesticides Avian Flu InitiativeAvian Flu Initiative Development of soil mapsDevelopment of soil maps But Wide Range In Complexity of Global Programs A Huge But Wide Range In Complexity of Global Programs A Huge
Challenge to Achieve ResultsChallenge to Achieve Results ——e.g., ranging from research in laboratories and delivery of e.g., ranging from research in laboratories and delivery of
services vs. complex resource management on the groundservices vs. complex resource management on the ground—e.g. on climate change, biodiversity or water or —e.g. on climate change, biodiversity or water or behavioral Changes in HIV AIDSbehavioral Changes in HIV AIDS
IEG Findings: Well Intentioned but Ill Conceived Partnerships IEG Findings: Well Intentioned but Ill Conceived Partnerships Pose significant Risks of Non-Delivery of ResultsPose significant Risks of Non-Delivery of Results
““Letting a thousand flowers bloom” ApproachLetting a thousand flowers bloom” Approach Weak Selectivity and oversight Weak Selectivity and oversight Most are donor-drivenMost are donor-driven Weak Global-country linkages Weak Global-country linkages Weak incentives to foster global-country linkagesWeak incentives to foster global-country linkages Weak Voice of Developing CountriesWeak Voice of Developing Countries Variable Quality of GovernanceVariable Quality of Governance Unclear and Diffused Accountability of Global Unclear and Diffused Accountability of Global
Programs for ResultsPrograms for Results Weak Monitoring and EvaluationWeak Monitoring and Evaluation Difficulties in measuring impacts of advocacy and Difficulties in measuring impacts of advocacy and
TATA IEG’s Efforts to Develop M and E standardsIEG’s Efforts to Develop M and E standards
ConsequencesConsequences
Rapidly Expanding Global and Rapidly Expanding Global and Regional Agenda Regional Agenda
Most International Organizations Most International Organizations pulled in opposite directions: GPGs pulled in opposite directions: GPGs and “demand driven” country needsand “demand driven” country needs
Collective Action Challenge At International Level-- Collective Action Challenge At International Level-- Identifying Specific Comparative Advantages of Individual Identifying Specific Comparative Advantages of Individual
IOs in GPG ProvisionIOs in GPG Provision
Intergovernmental nature and mandate, Intergovernmental nature and mandate, Convening PowerConvening Power Neutrality-Perception and RealityNeutrality-Perception and Reality In-house disciplinary expertise and global/member country In-house disciplinary expertise and global/member country
knowledgeknowledge Leadership in established global networks Leadership in established global networks Generation and Assembly of Global Data SetsGeneration and Assembly of Global Data Sets Unique advantages: the multi-sectoral nature of the World Unique advantages: the multi-sectoral nature of the World
Bank, WTO’s expertise on trade related matters FAO’s in Bank, WTO’s expertise on trade related matters FAO’s in agriculture and and natural resource management, WHO’s agriculture and and natural resource management, WHO’s in Health and UNEP’s in Environment. in Health and UNEP’s in Environment.
Secretariats promotion or facilitation of international Secretariats promotion or facilitation of international agreementsagreements
Collective Action Challenges For Collective Action Challenges For Donors and RecipientsDonors and Recipients
Divergent interests and priorities Divergent interests and priorities amongamong member countries with regard to specific member countries with regard to specific GPGS. GPGS.
Different capacities Different capacities amongamong developing developing country member countriescountry member countries
to participate and exercise voice in defining to participate and exercise voice in defining agreementsagreements
To implement agreements To implement agreements Divergent views among government Divergent views among government
ministries ministries withinwithin countries countries Free-riding, under-funding, lack of voice in Free-riding, under-funding, lack of voice in
the design, and implementation of the design, and implementation of agreementsagreements
Challenges in Developing and Challenges in Developing and Implementing International AgreementsImplementing International Agreements
Too many international entities leading to turf Too many international entities leading to turf problems and lack of coordination, e.g., the problems and lack of coordination, e.g., the Convention on Bio-Diversity (CBD), UNEP, Convention on Bio-Diversity (CBD), UNEP, UNCCD and other UN agencies and programs. UNCCD and other UN agencies and programs.
Overlapping mandates. E.g., WTO on TRIPS, Overlapping mandates. E.g., WTO on TRIPS, SPS, and WIPO on intellectual property. SPS, and WIPO on intellectual property.
GPGs, Millennium Development Goals (MDGs) GPGs, Millennium Development Goals (MDGs) and poverty reduction issuesand poverty reduction issues
Stakeholder perception of limited weight in the Stakeholder perception of limited weight in the international development framework. international development framework.
International Organizations Insufficient links in International Organizations Insufficient links in member countries with influential stakeholdersmember countries with influential stakeholders
Overarching ConclusionsOverarching ConclusionsInternational Organizations Do not. But Need: to International Organizations Do not. But Need: to Play up to their knowledge base and legitimacyPlay up to their knowledge base and legitimacy Establish clear priorities Establish clear priorities
between and among global agendas and local agendas between and among global agendas and local agendas
Move Upstream away from a large number of small non-Move Upstream away from a large number of small non-strategic demand driven activitiesstrategic demand driven activities
Aim for larger impacts and adopt results based frameworksAim for larger impacts and adopt results based frameworks Generate Systematic evidence of impacts—e.g. of the high Generate Systematic evidence of impacts—e.g. of the high
profile international agreements, norms and standards and profile international agreements, norms and standards and good practice manuals are being implemented, orgood practice manuals are being implemented, or
Improve coherence between headquarter and country Improve coherence between headquarter and country linkages within International Organizationslinkages within International Organizations
Improve partnerships with external actors on a selective Improve partnerships with external actors on a selective basisbasis