Development Assistance Must Move from Being One-Way Street to Form of Partnership, Speakers Underscore at Conference’s Third Round-Table Discussion

SEVILLA, SPAIN (1 July) — Development assistance must be reframed as a partnership, rather than a one-way street, speakers at this afternoon’s round table at the fourth International Conference on Financing for Development underscored.

The multi-stakeholder round table — the third held this week on the sidelines of the high-level debate — brought together representatives of Governments and development institutions around the theme: “Revitalizing international development cooperation”.  It was moderated by Haoliang Xu, Acting Administrator of United Nations Development Programme (UNDP).

In his opening remarks, Pedro Sánchez, President of Spain, noting the lack of progress towards the Sustainable Development Goals, said:  “People usually talk of seeing the glass half full or half empty.  Well, the reality is that we’ve barely filled it one third.”  Stressing that it is necessary to increase official development assistance (ODA) rather than reduce it, he noted that his country has set a timeline to reach 0.7 per cent of gross national income (GNI) in ODA contribution by 2030.  But, “ODA alone won’t solve all problems”, he warned, calling for innovative sources of financing, debt relief initiatives and fairer tax systems.

Partnerships of Equal Responsibility, Ambition 

“The world needs more development, not less,” Jozef Síkela, Commissioner of International Partnership of the European Commission, underscored.  He highlighted the shared responsibility for global stability — the world is more fragmented but its people are more connected, and a crisis in one region can cause instability elsewhere.  Stressing the importance of making the most of every euro, every dollar, he noted that the European Union provides 42 per cent of global development assistance.  It is essential to redefine how partnerships work, he added, stressing both partners must be equal in responsibility and ambition.  He highlighted Global Gateways, the Union’s new aid strategy, which supports a wide range of projects, from vaccine production in Africa to clean energy in Asia.

Public financing cannot do this work alone, he said, adding that, to support private capital mobilization, the European Union is creating funds that investors can join.  Country-owned instruments and domestic mobilization are also crucial.  International development is not just about solidarity, he said, adding that the cost of inaction is conflict and despair.  “Europe stands ready.  We have the tools, our partners have the talents, let’s turn it into sustainable, meaningful development,” he said.

Time to Move Past Outdated Narratives of Donors and Beneficiaries

Thorgerdur Katrín Gunnarsdóttir, Minister for Foreign Affairs of Iceland, said it is time to move beyond the “outdated narrative of donors and beneficiaries”.  Partner country Governments must be in the driver’s seat, she said, noting that her country’s bilateral cooperation places a strong emphasis on local ownership. Locally led development is more likely to succeed and be cost-effective, she said, also underscoring the need to use ODA strategically to mobilize private capital.  Developing countries have become far better integrated into the global financial system, and this must continue, she emphasized, also highlighting the need to strengthen the role of multilateral development banks.

Developing countries must also strengthen domestic resource mobilization and enhance efforts to improve governance and tackle corruption, she went on to say, noting that domestic resource mobilization is a deliverable according to the Sevilla Commitment.  However, she expressed regret, that the document’s language on gender equality and climate action were not stronger.  Fifty years ago, Iceland was a developing country, she said, adding that gender equality goes hand in hand with economic development.  Investing in sexual health and sexual and reproductive rights not only empowers women but fuels growth.  “Every dollar invested in family planning returns more than $8,” she said.

Merits of Public-Private Dialogue, Partnerships

Henry-Claude Oyima, Minister of State, Ministry of the Economy, Finance and Debt of Gabon, said he is wearing two hats at the Conference:  he represents the private sector where he works on financing issues, but he was also recently appointed to Gabon’s Government.  The experience has strengthened his conviction that public-private dialogue is vital, he said, adding:  “We need to take back our fiscal space.”  For years, foreign direct investment (FDI) has not brought about expected results, he said, calling for concessional financing invested in local sectors.

Gabon has taken on reforms and bold ideas on board because “we want to be able to count on ourselves”, he stated.  The country wants to set its own priorities and respect its own traditions, he said, adding that the reforms have been difficult and necessary.  It is clear that Gabon’s transformation will not happen due to external sources.  “We do need partners who believe in us,” he clarified, but they should respect national choices.

Importance of National Ownership 

Also stressing the importance of national ownership, Maropene Ramokgopa, Minister in the Presidency responsible for Planning, Monitoring and Evaluation of South Africa, said the most effective partnerships are inclusive partnerships.  Improving the quality of development assistance means alignment with national priorities.  Interventions that do not have the buy-ins of recipient countries will not be sustainable or successful, she said.  Turning to domestic resource mobilization, she called for support for fair taxation and tackling illicit financial flows.

Expressing concern that many traditional donor countries have announced reductions in their assistance budgets, she reminded delegates that the commitments donor countries have made are underpinned by the widely respected principle of common but differentiated responsibilities.  The quantity of development assistance matters just as much as quality, she said, adding that the long-standing target of 0.7 per cent remains valid.  And while all partner countries must contribute to sustainable development, those with greater historic advantages and financial strengths are expected to play a leading role.

While welcoming the development of new instruments and modalities, she stressed that these cannot replace traditional development assistance, which has lifted millions out of poverty.  For instance, concessional financing that ends up increasing the debt burden of developing countries is not sustainable.  “Let us, of course. engage with private sector,” she said, cautioning, however, that, since that sector will go where there is profit, the priorities of the social sector may not always fit the bill.

Role of Multilateral Development Banks

Ilan Goldfajn, President of Inter-American Development Bank, who served as a lead discussant, highlighted the crucial role of multilateral development banks and noted reforms at his institution to ensure that “every dollar delivers measurable impact”.  “We are becoming a truly private sector [multilateral development bank],” he said, adding that public resources are not enough, it is vital to unlock private sector at scale.

Liqun Jin, President of the Asian Infrastructure Investment Bank, said it is crucial that “we work together to improve how we work together”. He highlighted the Group of 20’s Roadmap Towards Better, Bigger and More Effective Multilateral Development Banks.  Stressing the need for robust monitoring and reporting frameworks, he reaffirmed his bank’s commitment to revitalize international development cooperation for a more equitable future.

The panel was co-chaired by KP Sharma Oli, Prime Minister of Nepal, and Ana Isabel Xavier, Secretary of State for Foreign Affairs and Cooperation of Portugal.  Andrzej Duda, President of the Republic of Poland, and Hồ Đức Phớc, Deputy Prime Minister of Viet Nam, offered additional remarks.