SDG G 17: Revitalize the Global Partnership for Dev velopment in LDCss
H. Reviewing conditionality and respecting policy autonomy
Main relevant SDG targets:
17.9: Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals, including through North-South, South-South and triangular cooperation
17.15: Respect each country’s policy space and leadership to establish and implement policies for poverty eradication and sustainable development
17.18: By 2020, enhance capacity-building support to developing countries, including for least developed countries and small island developing States, to increase significantly the availability of high-quality, timely and reliable data disaggregated by income, gender, age, race, ethnicity, migratory status, disability, geographic location and other characteristics relevant in national contexts
LDCs’ accession to the WTO should be facilitated and accelerated while fully respecting each country’s policy space and leadership to establish and implement policies for poverty eradication and sustainable development (LDCR 2014: ch.6). LDC Governments face major constraints in exercising effective management in the design and implementation of their national development strategies, with associated consequences for country ownership and aid effectiveness. This is due in part to weak technical capacities, in part because of high levels of dependence on donor finance in combination with policy conditionality. As a result, aid often remains weakly aligned with country plans and budgets, with negative consequences for governance as well as for aid effectiveness (LDCR 2008: ch.3). Better alignment of ODA, international trade support measures, and technology transfer policies with recipient countries’ development strategies, rather than donor concerns, is decisive for national-ownership of the development agenda (LDCR 2015: ch.5). It is also vital that aid modalities are oriented towards supporting domestic businesses and facilitating the formation of growth coalitions (LDCR 2009: ch.1).
To enable LDCs to increase aid effectiveness and assume country ownership, there is a need to review ODA conditionality (LDCR 2015: ch.5). LDC governments require sufficient policy space with regard to the management of external trade, the protection of their agricultural production, and the promotion of their emerging industrial sectors.
This is necessary for policy pluralism and experimentation in the pursuit of the SDGs.
Enhanced policy space for LDC governments can also enhance the strategic integration of LDCs into the global economy (LDCR 2010: ch.5; LDCR 2014: ch.6).
Compliance with international agreements, policy conditionalities attached to aid, and guidance by donors should not undermine the policy learning that is critical for building developmental state capabilities. To increase country ownership of development policies, it is also necessary to help LDCs build local research and policy analysis capacities, which can support the generation of policy alternatives and in particular “homegrown”
solutions (LDCR 2008: ch.3).
I. International support measures in response to climate change
Main relevant SDG targets:
9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities
11.b: By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, and develop and implement, in line with the Sendai Framework for Disaster Risk Reduction 2015–2030, holistic disaster risk management at all levels
13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries
13.a: Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible 13.b: Promote mechanisms for raising capacity for effective climate change-related planning and management in least developed countries and small island developing States, including focusing on women, youth and local and marginalized communities
1. International financing
LDCs have very little responsibility for climate change, but they are particularly vulnerable to its impacts. The United Nations Framework Convention on Climate Change (UNFCCC) recognizes the necessity of financial and technical support for LDCs in their efforts to strengthen resilience to the impacts of climate change. However, while
numerous climate change funds have been established for adaptation, this has given rise to a complex architecture of bilateral and multilateral agencies. Some of the funds which exist remain seriously underfunded, and accessing funds is complex and time-consuming, particularly for countries, such as LDCs, with limited institutional capacity (LDCR 2016: ch.5).
The Least Developed Country Fund (LDCF) was established in 2001 to meet the particularly acute adaptation needs of LDCs. It has financed the preparation of national adaptation programmes of action (NAPAs), identifying priority activities for countries to address their urgent and immediate adaptation needs. Although climate finance has increased overall, the financing of this LDC-specific Fund is inadequate and insecure, and contributions to the LDCF fall far short of the cost of implementing the NAPAs (LDCR 2016: ch.5). Sustained and sufficient refunding of the climate funds, especially the LDCF, is essential for LDCs to achieve the climate-change-related targets of the SDGs.
Overall, major climate-finance reforms are needed to mobilize financing at a much larger scale. Funding should be commensurate with the adaptation and mitigation needs of LDCs. International efforts should also be made to enhance the access of LDCs to the existing funds, and to increase the effectiveness of delivery. It would be appropriate for international financial support to focus on providing the resources needed for the diversification of the economy away from sectors affected by climate change.
International support should also include funds for productive domestic investment (LDCR 2014: ch.6).
2. Technology transfer
When building productive capacities for future growth, LDCs must minimize CO2 emissions. However, their climate-change-relevant emissions will remain extremely low in international comparison. Therefore, LDCs should not be subject to CO2 emission limits that could impede the use of existing productive capacities. It should be emphasized that international support to LDCs should be primarily focussed on strengthening the resilience of these economies to the inevitable impacts of climate change (LDCR 2014:
ch.6).
For both mitigation and adaptation in LDCs, technology transfer plays a central role (LDCR 2016: ch.3). The Clean Development Mechanism (CDM) is a major instrument for climate-relevant technology transfer. It allows developed countries to meet their emissions-reduction obligations, in part by financing emissions-reducing projects in developing countries by using technologies unavailable in the host country. So far, such
projects have been overwhelmingly located in more advanced developing countries, and technology transfer was only involved in a minority of these projects (LDCR 2016:
ch.3). One of the reasons why the benefits of the CDM for LDCs have been very limited is that this mechanism is primarily focussed on mitigation measures. The CDM should be modified to be more relevant for technology transfer, specifically for the climate-change adaptation needs of LDCs. Moreover, LDCs need technical assistance to strengthen their institutional capabilities to access this mechanism.
Under the 2001 Marrakesh Technology Framework of the UNFCCC, LDCs are invited to submit externally funded assessments of their technology needs assessments (TNAs) for mitigation and adaptation. Additionally, a Climate Technology Centre and Network (CTCN) has been created to respond to requests based on TNAs. So far, however, not all LDCs have submitted a TNA, and only few countries have prepared related technology action plans. Technology programmes for LDCs under the UNFCCC should be strengthened through increased funding and additional technical assistance for the elaboration of TNAs and proposals for technology-related activities to the CTCN, as well as for climate-related institutional capacity building.