Post 2015: Global Action for an Inclusive and Sustainable Future

CHApTER TEn
As sources of
development
finance expand
and diversify,
it will be vital
to ensure
complementarity
and effective
coordination
between different
approaches.
212
have a responsibility mitigating the negative effects
of labour mobility, refer to the links between
migration and other important development issues
(e.g. climate change and employment), and stress the
importance of collecting better data on migration
and monitoring compliance with labour rights. the
framework should point to the need to overcome the
resistance among migrant-receiving governments
to establishing an international regime to govern
temporary migration for low-skilled workers,
which could make a significant contribution to the
ambition to eradicate global poverty.
10.4.4 Managing diversity in development
finance
as argued in chapter 7, any post-2015 global
development framework will call for more financial
resources, and yet only a small handful of donors have
met their existing oDa commitments. Widening
the goals of the international development agenda
will increase the pressure to provide the necessary
finance and to ensure its development impact. the
cost of adaptation to climate change in developing
countries alone is expected to between $70 billion
and $100 billion a year between 2010 and 2050 (World
bank, 2010). a wider global public goods approach
to development could attract more development
finance (Severino, 2012), although it relegates the
eradication of poverty to one goal among other
competing claims on resources. adding new and
broader goals to the global development agenda will
inevitably mean reallocating existing development
finance, and resolving tensions between different
goals (e.g. economic growth versus environmental
protection). From this perspective, two of the
principal challenges regarding development finance
post-2015 are complementarity and additionality.
as sources of development finance expand and
diversify, it will be vital to ensure complementarity
and effective coordination between different
EuropEan rEport on DEvElopmEnt 2013
approaches. there is a risk that an increasingly
fragmented development landscape may result in
too many new structures and systems, which would
make it far harder to harmonise development finance.
a lack of coordination would lead to duplication,
inefficiency and higher transaction costs. It will
also be important to determine how new sources of
development finance should be ‘counted’ in order to
reduce the risk of substitution and ‘double-counting’
and ensure additionality. although many forms
of external finance have more than one objective,
such as development and climate, they need to be
counted and assessed separately next to different
international commitments 147 .
these challenges have to be addressed across the
full spectrum of development finance in order
to optimise the use of resources and achieve the
greatest impact. Key points on development finance
in the post-2015 context include:
• Domestic resources should be the main source of
development finance as it is the best guarantee of
policy space. In order for governments to establish
efficient and better performing tax systems their
efforts need to be supported by international
regimes that address issues of transparency, illicit
capital flows and capital flight.
• ODA will remain an important source of finance
for the poorest countries. although it is unlikely
that oDa levels will be increased in the near
future (oEcD/Dac, 2012b), the commitment
to do so still stands. there is still significant
scope to increase the impact of oDa through
the aid effectiveness agenda, including using it
to leverage other forms of development finance.
European donors have a real opportunity to
prevent aid fragmentation through closely
harmonised and even unified approaches (joint
programming, division of labour etc.).
147 the unFccc agreement is that resources provided for climate change adaptation and mitigation should be ‘new and additional’ to existing
oDa commitments (unFccc, 2009, Decision -/cp.15). the G77 defend this position strongly arguing that the oDa commitments are needed
to fund development and climate change is an additional factor on top of the development challenges.