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11. Financing Loss and Damage at Scale: Toward a Mosaic Approach

Author:
Michael Franczak
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
International Peace Institute
Abstract:
The historic decision on loss and damage (L&D) at the 2022 UN Climate Change Conference (COP27) calls for a new fund and funding arrangements focused on addressing L&D. It also tasks a Transitional Committee to prepare recommendations on the new fund and funding arrangements for adoption at the 2023 UN Climate Change Conference (COP28) in Dubai. This decision reflects a recognition that existing funding arrangements are grossly inadequate to address the escalating scale of L&D. Addressing L&D will require both enhancing these existing arrangements and creating a new fund and funding arrangements, forming a mosaic of solutions across countries, institutions, and markets. This paper aims to aid the Transitional Committee and other stakeholders by providing an initial sketch of that mosaic. First, it examines existing arrangements, modalities, and sources of funding for addressing L&D from UN humanitarian agencies, multilateral development banks and international financial institutions, and insurance and bond markets. Second, it proposes reforms to existing arrangements that would address key finance gaps and bottlenecks. Third, it identifies elements of a new L&D fund that would complement existing arrangements and make use of innovative finance (including levies and bond issuances) to operate at scale. With roughly six months left until COP28, the Transitional Committee will need to work efficiently to achieve its mandate, which includes determining the fund’s institutional arrangements, modalities, structure, governance, sources of funding, and coordination and complementarity with existing funding arrangements. To this end, the paper recommends that it should: Begin securing financing before COP28, particularly innovative financing, which takes longer to secure than traditional donor contributions; Consult with the private sector to determine its role, including in the use of insurance mechanisms and risk pools, frontloading, and connections between L&D and jobs; Determine the form and role of triggers, including for slow-onset events; Consider how to address noneconomic losses, including displacement and forced migration; and Identify the actions, mechanisms, and institutions required to operationalize the fund, including an internal or external coordination mechanism.
Topic:
Climate Change, Development, United Nations, and Finance
Political Geography:
Global Focus

12. Global Inequality in Well‐​Being Has Decreased across Many Dimensions: Introducing the Inequality of Human Progress Index

Author:
Chelsea Follett and Vincent Geloso
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The world has seen dramatic, global human progress across a broad range of indicators in recent decades, but have those gains been widely shared? The Inequality of Human Progress Index (IHPI) measures relative gaps in global development. It surveys international inequality across a greater number of dimensions than any prior index. By analyzing inequality in a multidimensional way, the IHPI takes inequality more seriously than those indexes that focus on income inequality alone. The IHPI considers material well‐​being and seven additional metrics: lifespan, infant mortality, adequate nutrition, environmental safety, access to opportunity (as measured by education), access to information (as measured by internet access), and political freedom. Across all but two of those dimensions, the world has become more equal since 1990. Globalization and market liberalization over the past few decades have not only raised absolute living standards but also reduced overall inequality.
Topic:
Development, Inequality, Economy, and Well-Being
Political Geography:
Global Focus

13. What Works in Conflict Prevention?

Author:
David Steven and Gizem Sucoglu
Publication Date:
03-2023
Content Type:
Special Report
Institution:
Center on International Cooperation
Abstract:
This paper compares examples of collaborations that have aimed to prevent violence and conflict. The focus is primarily on ‘at risk’ and ‘acute’ settings, but with a recognition of the need to access a broader range of universal approaches to prevention where possible.
Topic:
Conflict Prevention, Security, Development, Diplomacy, and Collaboration
Political Geography:
Global Focus

14. Alternative Aid Modalities: Community development

Author:
Scott Guggenheim and Charles Petrie
Publication Date:
04-2023
Content Type:
Special Report
Institution:
Center on International Cooperation
Abstract:
Economic sanctions and restrictions on development aid in fragile and conflict-affected states have become an increasingly prominent part of the international toolkit for dealing with regimes that violate international norms and rules or are beset by conflict. However, there is a well-known problem: sanctions and cessations of development aid often end up hurting the poor more than the rich, particularly the political elites who the sanctions are most meant to target. Donors try to limit the impact of sanctions on the poor through humanitarian assistance, usually run by United Nations (UN) agencies and non-governmental organizations (NGOs). However, in all but the smallest countries, this is extremely expensive as well as a major organizational and logistical challenge. Most recently, situations such as those in Myanmar and Afghanistan have thrown the spotlight on the complexity of the discussion. In a world of no first-best solutions, a close look at empirical experience will show (provided certain pre-conditions can be met) that donors can partially bridge the challenge of simultaneously upholding human rights values and protecting the poorest from the economic fallout caused by sanctions. These solutions require close attention to unpacking complex environments and using a difficult-to-wield set of tools spread over diplomacy, economic power, and development aid. While not all risks can be eliminated, a variety of flexible tools already exists so that donors can help the poor in sanctioned and conflict-affected countries without undermining diplomatic goals of shunning the government elites or inadvertently financing insurgencies. With a growing number of donor-funded community programs in fragile or conflict-affected states, there are also donor concerns about legitimating national authorities, risks of financial diversion, and capture by armed combatants or local elites (full list of major concerns listed below). This paper highlights and addresses these concerns in detail and offers a series of recommendations, which in addition to good donor program design and management could mitigate some of the risks (but not fully eliminate them). This paper aims to present a case on how to use one tool—community-based approaches for delivering and monitoring aid—in fragile or sanctioned contexts, as community-based local governance type development models have been used successfully in a variety of fragile, conflict, and sanctioned countries. Additionally, this paper will extract real-world illustrations of how these approaches can address donor concerns on providing post-humanitarian aid to poor people without unintentionally undermining sanctions on illegitimate regimes. Because the case literature on delivering aid under sanctions is small, the brief includes illustrations taken from aid delivery in conflict-affected countries, where governments may not be under sanction, but deep concerns remain about aid capture or aid further fueling conflict. Finally, in addition to selections from the literature, the report draws from the personal and professional experiences of the two authors, who have overseen or managed large-scale community-type humanitarian, peacebuilding, and development programs in Afghanistan, Burundi, East Timor, Gaza, Indonesia (including Aceh and West Papua), Myanmar, Rwanda, Sri Lanka, and Syria, and have been part of discussions over development options for countries under sanction in Ethiopia and Sudan. In this paper, authors propose ten recommendations for donors coming out of this research on how they can incorporate community-driven approaches for aid in sanctioned and fragile states situations.
Topic:
Development, Humanitarian Aid, Sanctions, and Community
Political Geography:
Afghanistan, Myanmar, and Global Focus

15. The UN General Assembly 2023: The urgency of compromise on financing for development

Author:
Natalie Briggs, Symphony Chau, Sarah Cliffe, Faiza Shaheen, and Betty N. Wainaina
Publication Date:
09-2023
Content Type:
Commentary and Analysis
Institution:
Center on International Cooperation
Abstract:
New York will gear up this month to receive over 100 heads of state and government at the United Nations General Assembly. Behind the scenes, rising geopolitical tensions caused by structural competition, by the invasion of Ukraine and by the internationalization of other conflicts and coups d’etats (notably in West and Central Africa) will dominate. The world faces the prospect of more frequent interstate conflict and economic confrontation, which would have devastating consequences for international cooperation on socio-economic prosperity, conflict, and climate. We expect China, Russia, and Western countries to seek to build out their respective alliances—as previously analyzed, there have been moves from the West to make concessions to the Global South and a heating up of development competition between China and the West. In this CIC Perspective piece, authors examine the “state of play” at this year’s United Nations General Assembly (UNGA78), and discuss what success would look like at the Sustainable Development Goal (SDG) Summit taking place, along with how we can create the necessary means for action.
Topic:
Development, International Cooperation, United Nations, and Finance
Political Geography:
Global Focus

16. EXAMINATION OF DECISION-MAKING STRUCTURES’ PERCEPTIONS OF COMPONENTS ON THE INFLUENCES OF SME SUCCESS

Author:
Muhamet Spahiu and Esat A. Durguti
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Journal of Liberty and International Affairs
Institution:
Institute for Research and European Studies (IRES)
Abstract:
Small and medium-sized enterprises (SMEs) have succeeded in being the main and dynamic pillar of national and international economies. Education and work experience is essential in increasing SMEs’ efficiency and competitiveness. The changing business environment has created fierce competitiveness among SMEs, requiring active interaction between managers/owners and stakeholders. As a result, this study aims to explore the influence of education, experience, using a business plan, and barriers on the success of small and medium-sized businesses. This research employed an online questionnaire for scientific research. Through ordered logistic modeling, we observed 336 answers from businesses using the qualitative approach. The study’s findings reveal that education and work experience have a statistically favorable influence on the performance of SMEs, whereas barriers have a substantial adverse influence. Findings on barriers are noteworthy in the context of this study since the governing institutions throughout the pandemic and later situations experimented with the measures adopted. The study also benefits SMEs and legislation authorities in understanding the critical concerns that are perceived as barriers to the growth and expansion of SMEs, resulting in the creation of even more sophisticated infrastructures to support sustainable development.
Topic:
Development, Education, Economy, Business, and Competition
Political Geography:
Global Focus

17. COMBATING CROSS-BORDER ORGANIZED CRIME IN THE BORDER REGION OF THE STATE: STRATEGY DEVELOPMENT METHODOLOGY

Author:
Oleh Farion, Dmytro Kupriyenko, Yurii Demianiuk, and Andrii Nikitiuk
Publication Date:
07-2023
Content Type:
Journal Article
Journal:
Journal of Liberty and International Affairs
Institution:
Institute for Research and European Studies (IRES)
Abstract:
The article describes the methodology for the following successive stages: data collection on cross-border organized crime; analysis of the impact of PEST factors of the border region on the number of cross-border crimes committed by organized criminal groups; generalization and analysis of parameters for assessing the capabilities of organized criminal groups; assessment of the level of capabilities of organized criminal groups to commit cross-border crimes; passporting of organized criminal groups specializing in cross-border crimes; modeling of scenarios of the development of organized criminal groups illegal activities by types of cross-border crimes; selection of options for fighting cross-border organized crime by the targeted impact on organized criminal groups. The strategy envisages a complex of the following measures: rapid (operational) interventions in critical situations; anti-crisis measures of the border guard operation to neutralize threats; other regime and control measures to strengthen the protection of the state border; standard planned and preventive measures; measures of sustainable development of the border security system. Implementing the methodology in practice enables the development of a strategic approach to effectively utilize the resources of state law enforcement agencies in combating cross-border crime.
Topic:
Crime, Development, Law Enforcement, Borders, and Organized Crime
Political Geography:
Ukraine and Global Focus

18. Export impact on dividend policy for big Colombian exporting firms, 2006–2014

Author:
Federico Merchan
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper studies the impact of exogenous export demand shocks on firms’ dividend policy using firm specific real exchange rate variation as instrumental variable. IV exclusion restriction is plausibly satisfied because real exchange rate shocks were unanticipated -partly explained because of international oil price fluctuation-, and first stage results confirm relevance condition fulfillment. The results indicate that big private Colombian exporting firms decree dividends as a way to mitigate the agency cost generated by exogeneous exports variation via higher free cash flow and cash flow volatility, especially in poor managerial quality firms. Evidence supports agency cost theory and denies signaling.
Topic:
Development, Emerging Markets, Globalization, International Trade and Finance, and Exports
Political Geography:
Global Focus

19. Mapping Pathways for Peace through the Composition of Official Development Assistance

Author:
Jannie Lilja and Gary Milante
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Stockholm International Peace Research Institute
Abstract:
Mapping the changing composition of official development assistance (ODA) against peace and conflict patterns in recipient countries over time can enhance the understanding of how pathways to peace look like in practice. This working paper presents empirical findings from more comprehensive research into the composition of ODA across aid recipient countries in the period 1990–2020. ODA is broken down into humanitarian, development and peacebuilding aid components. While development assistance is found to dominate across all types of country contexts, and the humanitarian share tends to be larger during conflict, peacebuilding assistance varies by conditions in countries. Post-conflict countries that avoid conflict relapse receive significantly higher shares of peacebuilding aid compared to post-conflict countries that relapse. A ternary graph is introduced to strategically track the composition of the total ODA envelope at the country level during different time periods. The findings suggest that a more effective future deployment of ODA for the advancement of peace and stability is possible.
Topic:
Foreign Policy, Development, Conflict, and Peace
Political Geography:
Global Focus

20. Towards an Intersectional Feminist Development Policy for Germany

Author:
Aïssa Boodhoo and Damjan Denkovski
Publication Date:
06-2023
Content Type:
Special Report
Institution:
Centre for Feminist Foreign Policy
Abstract:
In the development of Germany’s Feminist Development Policy Strategy, the Federal Ministry for Economic Cooperation and Development (BMZ) conducted a consultative process which included online consultations, a high-level conference, and civil society dialogues. While the broadest consultative process by the German government to date, the BMZ process had limitations in terms of Global South participation and language accessibility. To complement the official BMZ-led process, the Centre for Feminist Foreign Policy (CFFP) initiated a comprehensive co-creation process involving diverse feminist civil society organisations from the Global South, Germany, and other Global North countries. Guided by position papers from various perspectives, desk research, and interviews, the CFFP feminist convenings process involved over 100 feminists from diverse backgrounds, spanned over 25 countries, provided compensation to small and Global South organisations, and incorporated intersectional perspectives. The process consisted of in-person and online convenings held in multiple languages, ensuring broad accessibility. This report is a summary of the rich discussions and recommendations of feminists. It aims to influence policymakers and initiate action in shaping Germany's Feminist Development Policy. This report opens by discussing five action areas in chapter 1, which serve as comprehensive guidelines for immediate transformative action across policy areas. The second chapter discusses feminist reflections in six thematic areas: economic justice, climate justice, food sovereignty and agriculture, sexual and reproductive health and rights, protecting minority rights, and education.
Topic:
Foreign Policy, Agriculture, Climate Change, Development, Economics, Education, Minorities, Partnerships, Feminism, Reproductive Rights, Digitalization, Funding, and Food Sovereignty
Political Geography:
Germany and Global Focus