Lessons Learned on how to Promote Innovation in Development Cooperation

 
How do non-governmental, bilateral and multilateral aid agencies promote innovation in development cooperation?

The International Fund for Agricultural Development (IFAD) has mandated a team in 2009/10 to undertake a corporate-level evaluation of IFAD’s capacity and experience in the promotion of replicable innovations.

In this context, Gerster Consulting has been asked to identify benchmarks in terms of good practices of how other comparable organisations promote innovation in development cooperation. The innovative policies and practices of the Humanist Institute for Development Cooperation (HIVOS) in the Netherlands, of Irish Aid, of the International Development Research Centre (IDRC) in Canada, of the United Nations Development Fund for Women (UNIFEM) and of the World Bank have been reviewed. In particular, the research approach covered

(1) the understanding of innovation,
(2) the strategic orientation,
(3) process and implementation issues,
(4) the institutional dimension,
(5) partnerships,
(6) scaling up and replication, and
(7) risks and mitigation.

Aid Effectiveness: What have we learnt?

 
The Swiss Parliament is about to decide on the future contribution of Switzerland to development cooperation. The NGO movement collected over 200’000 signatures of citizens urging the Government to increase spending to 0.7% of GDP.

The Swiss Government had proposed to continue with 0.4% of GDP, and despite the impressive NGO effort, the majority of the People’s chamber of Parliament followed the Government. Now it is up to the second chamber of parliament, the State Council, to approve the framework credits for development cooperation. In view of that decision the Foreign Policy Committee of the State Council of the Swiss Confederation held hearings on June 19, 2008.

Among other experts, the Foreign Policy Committee invited Richard Gerster to testify on the effectiveness of Swiss foreign aid. You can download his presentation as a PDF-file (in German only).

Partners in Development: India and Switzerland

The new book “Partners in Development: India and Switzerland” by Richard Gerster is not an evaluation but an independent review of experience of cooperation programmes supported by Switzerland (Government & NGOs) during the past 50 years.

It aims at answering questions such as „What characterises Swiss development cooperation in India?“, „What has been achieved?“ and „What are the lessons learned?“ The book is based on some 250 interviews with Indian partners, former and current Swiss employees, independent observers in both countries as well as on numerous documents and publications.

In spite of its small size Switzerland managed to become known as an influential niche player in India. Swiss contributions in areas such as animal husbandry or dairy farming, disaster prevention, rural housing, drinking water, microfinance or infrastructure financing have had an impact not only at the local level, but also at the state level – they even influenced national policies for 1,1 billion people. Experiences from development cooperation in India had reciprocal influences on Swiss programmes in other countries.

Overall, both the Government and NGOs have reached much more than could realistically be expected. These successes are those of the Indian partners.

Forewords by Micheline Calmy-Rey, Swiss Minister for Foreign Affairs, and M.S. Swaminathan, M.P. and President M.S.Swaminathan Research Foundation.

This timely publication is highly relevant for the forthcoming decisions by the Swiss Parliament to shape the future contribution of Switzerland to development cooperation. 

India – Developing Country or Superpower?

Public event (in German language) of the TagesAnzeiger in Zurich, 31 March 2008, with Micheline Calmy-Rey, Foreign Minister of Switzerland, and Richard Gerster, author, on the occasion of the launch of the new book on development cooperation between India and Switzerland (German edition Orell Füssli, Zurich).

Action Plan to Address Agrarian Distress in India

The agriculture sector in India has been witnessing low growth and productivity in spite of a robust overall economic growth. This poor performance leads to agrarian distress, manifested through migration and farmers’ suicides. In consultation with the Government of India, the National Bank for Agriculture and Rural Development (NABARD) has constituted an Expert Panel for preparing an action plan to mitigate agrarian distress in the affected districts with a short term horizon.

In this initiative, NABARD has been supported by the Swiss Agency for Development and Cooperation (SDC). NABARD nominated as members of the expert panel M.S. Sriram, IIM Ahmedabad; P.K. Joshi, NCAP Delhi; Satish Chander, Ministry of Agriculture; Malcolm Harper, UK; Konrad Matter, Switzerland; Richard Gerster, Switzerland. The panel focuses on the issues of finance, risk mitigation, social support mechanisms, and farm practices. The panel report can be found at NABARD’s website or can be downloaded on the right.

Lessons Learned about Field Presence Arrangements

In the international debate on aid effectiveness the influence of internal arrangements on the donor side is often neglected. The International Fund for Agricultural Development (IFAD) has mandated a team to undertake a corporate-level evaluation of IFAD’s Field Presence Pilot Programme (FPPP) in 2006/07 (download PDF here).

In this context, Gerster Consulting has been asked to identify good practices of field presence arrangements by other comparable organisations as an instrument for learning. The headquarters – field relations of Action Aid International (AAI), the Asian Development Bank (AsDB), the Food and Agriculture Organisation of the United Nations (FAO), the International Food Policy Research Institute (IFPRI), the Swiss Agency for Development and Cooperation (SDC), and occasionally other organisations have been reviewed.

In particular, the research approach covered four strategic dimensions of field presence:

(1) implementation support,

(2) policy dialogue,

(3) partnership building, and

(4) knowledge management.

As cross-cutting concerns the study pays attention to:

(1) the cost-effectiveness of the headquarters – field arrangement,

(2) capacity development, and

(3) innovation, replication and up-scaling. The study can be downloaded on the right.

Poverty Observatory in Mozambique

The Poverty Observatory in Mozambique was launched in 2003 to enhance citizen participation and social accountability processes in implementing and monitoring Poverty Reduction Strategies. The Swiss Agency for Development and Cooperation (SDC) and the Participation and Civic Engagement Team in the Social Development Department of the World Bank have mandated Gerster Consulting to prepare an assessment of its strengths and weaknesses.

The authors Konrad Matter (Switzerland) and Antonio Francisco (Mozambique) provide a detailed description and analysis of the Poverty Observatory in Mozambique. Besides being a very informative piece of work, a relevant feature in the report is its clear identification of different perspectives on participatory mechanisms, as well as the potential of the Poverty Observatory in the future. The study can be downloaded here.

New Sources of Development Financing

Abstract:

In 2000, a collective commitment was taken by all nations to meet the Millennium Development Goals (MDGs) by 2015. Goal Eight requires all countries to enter a global partnership for development to implement the MDGs, including the provision of adequate resources in support of the developing countries' own efforts. After the Monterrey conference in 2002, a consensus emerged that the financing gap to reach the MDGs is around US$ 50 billion and that another US$ 20 billion is required to address unmet Global Public Goods (GPGs).

These estimates suggest roughly a doubling of Official Development Assistance (ODA). It is not only the amounts that matter, time also counts: reaching the MDGs by 2015 calls for rapid increases of public finance for development. This working paper of the Swiss Agency for Development and Cooperation (SDC) examines the options of resource mobilisation beyond ODA. In particular global taxes (Tobin Tax, carbon tax, etc.) and financial engineering proposals (International Financial Facility, Special Drawing Rights) are discussed, highlighting their strengths and weaknesses, and presenting Swiss perspectives.

Private sector development in the context of poverty reduction strategy papers

Abstract:

Despite the broadly shared view that economic growth matters for poverty reduction, many interactions between economic policies and poverty are still not well known. This paper, written as a desk study on behalf of the Swiss State Secretariat for Economic Affairs (seco), aims to provide an overview on: the significance of economic and, in particular, private sector development for poverty reduction; and the role of the private sector in current PRSPs.

There are concrete opportunities for donor action in: promoting effective participation of all stakeholders in elaborating PSD strategies; supporting local governments in improving enabling conditions for PSD; and directly promoting SME development. Furthermore, ways of improving the representation of PSD in PRSPs need to be investigated.

Private Sector Development in PRSPs: Stimulating Market Forces or Increasing State Interventions? The Case of Tanzania

Abstract:

This paper, written on behalf of the Swiss State Secretariat for Economic Affairs (seco), analyses the questions of to what extent Private Sector Development has been integrated into the Poverty Reduction Strategy Paper (PRSP) of Tanzania as one of seco's main partner countries for general budget support, and of whether the poverty reduction strategies tend towards a withdrawal of the State from the market - through stimulating market forces, enabling framework conditions and improving the business environment - or whether they are accompanied by directive State interventions, guidance of the private sector and the creation of additional parastatal institutions.

An outline of donor-financed PSD activities throws light on the orientation of international donors in this regard.

Informal Sector Support and Poverty Reduction

Abstract:

There are millions of people in transition and developing countries who are excluded from the political and economic system and are living in poverty. A glaring symptom is the growing number of entrepreneurs engaged in low-income and low-growth business activities in the informal sector. Roughly a third of the GDP of emerging markets is produced informally.

This paper, written as a desk study on behalf of the Swiss State Secretariat for Economic Affairs (seco), provides a deeper insight into the relevant causes of informal sectors, the macro-level interventions needed to promote the formalisation of the informal economy, and the steps required to assist informal sector entrepreneurs within the informal sector.

Two Worlds: 2010 vs. 2004 (English & German)

Abstract:

Development agencies are increasingly confronted with new challenges. In the name of aid effectiveness donors are asked to analyse and improve the coherence of their policies, the priorities of their international cooperation, the harmonisation of procedures, the modes of implementation, and the mechanisms of accountability.

The Swiss Agency for Development and Cooperation (SDC) invited Gerster Consulting to present a critical assessment of the agency's behaviour. In the mood of fortune telling, we portray the contrast between the situation in the year 2010 and the past in 2004. The Power Point Presentation can be downloaded in English and German.

Sri Lanka: An Independent Assessment of the Comprehensive Social Development Programme of the Sarvodaya Movement

Abstract:

Widespread poverty and the conflict between the Sinhala and Tamil populations are the key challenges of development in Sri Lanka. Economic liberalisation is increasing social disparities between rich and poor. The response by the Sarvodaya Movement to these challenges is deeply rooted in the culture of the villages. Sarvodaya offers a comprehensive vision – an alternative to mainstream values – and a corresponding life cycle chain of activities from the children to elderly people.

Sarvodaya has a country-wide network. No other organisation on the island can even dream of being so well linked to the people all over Sri Lanka. The Comprehensive Social Development Programme (CSDP) targets 1032 villages in a multi-ethnic environment of 12 Sarvodaya districts.

This assessment was done on the joint request of the Sarvodaya Movement and Novartis Foundation for Sustainable Development. Novartis Foundation is co-financing the CSDP from 2000 to 2005.

Services for the Poor? A Comment on the World Development report 2004

Abstract:

The State Secretariat for Economic Affairs (seco) and the Swiss Agency for Development and Cooperation (SDC) hosted a workshop in Berne (Switzerland) on 30 September 2003, on the occasion of the launch of the World Development Report 2004. Ritva Reinikka, Head of the authoring team of the World Bank, described the findings of the report.

Richard Gerster was invited to present a critical appraisal of the results. A panel then discussed the relevance and conclusions of the WDR 2004 and related them to experiences of Swiss Development Cooperation in Peru and Tajikistan. Is good governance the key to improved services for the poor? How far does the history of industrialised countries matter? What alternatives for reform exist? Is there a convincing case for privatisation of basic services? Such and other questions are dealt with in the presentation made by Richard Gerster.

Synthesis Report on Switzerland's Involvement in the Poverty Reduction Strategy Paper (PRSP) Processes

Abstract:

The Swiss Development Cooperation (SDC) has commissioned an independent evaluation of its bilateral engagement in PRSPs. This evaluation was carried out jointly by Development Initiatives (UK) and Gerster Consulting (Switzerland). The evaluation comprised:

(1) an SDC-wide survey of SDC´s experience of PRSPs to date;

(2) case studies in four SDC partner countries (Kyrgyz Republic, Burkina Faso, Nicaragua, Vietnam) to look in detail at the interactions in PRSP processes;

(3) a synthesis report, based on the survey and the case studies, analysing the findings and making recommendations to SDC on how to improve its role in the PRSP processes.

Not only the synthesis, but also the earlier case studies on Burkina Faso and Kyrgyz Republic, as well as the initial SDC-wide survey can be downloaded on the right.

Burkina Faso: The Involvement of Swiss Cooperation in the Development of the Poverty Reduction Strategy Paper (PRSP)

Abstract:

The Swiss Development Cooperation (SDC) has commissioned an independent evaluation of its bilateral engagement in PRSPs. This evaluation was carried out jointly by Development Initiatives (UK) and Gerster Consulting (Switzerland).

The evaluation comprised:

(1) an SDC-wide survey of SDC´s experience of PRSPs to date;

(2) case studies in four SDC partner countries (Kyrgyz Republic, Burkina Faso, Nicaragua, Vietnam) to look in detail at the interactions in PRSP processes;

(3) a synthesis report, based on the survey and the case studies, analysing the findings and making recommendations to SDC on how to improve its role in the PRSP processes.

Not only the synthesis, but also the earlier case studies on Burkina Faso and Kyrgyz Republic, as well as the initial SDC-wide survey can be downloaded on the right.

Kyrgyz Republic: The Involvement of Swiss Cooperation in the Development of the National Poverty Reduction Strategy

Abstract:

This case study on Switzerland's involvement in the Poverty Reduction Strategy Paper (PRSP) process of the Kyrgyz Republic is part of a larger evaluation effort (see above Burkina Faso case study).

A Survey on the Involvement of Swiss Cooperation in the Development of Poverty Reduction Strategy Papers (PRSPs)

Abstract:

This comprehensive survey is based on a large number of interviews and the examination of 300 documents. It maps the Swiss perception and handling of PRSPs. The results are observations but not yet recommendations. The survey is part one of a larger research effort (see above Burkina Faso case study).

Poverty Reduction Strategy Papers (PRSP) at a Glance

Abstract:

This brochure presents an illustrated overview of the core issues related to PRSPs. The introduction covers the emerging consensus on poverty reduction as a priority during the 1990s. The PRSPs are one of the concrete results of the trend to put poverty reduction first.

For poor countries, the PRSPs are one of the keys to gaining access to World Bank and International Monetary Fund resources. The process provides both opportunities and risks. Is the PRSP-process flexible enough to respect differing perspectives on growth, distribution and structural policies? Ten elements of the Swiss position towards PRSPs are presented.

Employment to Fight Poverty

Abstract:

It is only through the creation of new jobs that a lasting reduction of poverty can be achieved. For that reason, Swiss Development Cooperation supports through numerous projects and programmes the creation and safeguarding of jobs as well as the improvement of working conditions.

"Employment to fight poverty" portrays Swiss supported activities regarding vocational training, the promotion of small enterprises, microcredits, agriculture and forestry as major employers in Africa, Asia and Latin America. An illustrative research done in view of the World Social Summit +5 in Geneva 2000.

Alternative Approaches to Poverty Reduction Strategies. A Review of the World Bank Compared to Other Donors

Abstract:

The purpose of this review was to search for alternative strategies, ways of implementation and mechanisms of delivery in poverty reduction. The review is based on a comparison of the poverty reduction strategies of nine selected donors (six bilateral donors: Canada, Germany, Norway, Sweden, Switzerland, United Kingdom; two multilateral agencies: IFAD and UNDP; and one NGO: Oxfam) and relevant scientific research.

In particular, the study looks at the World Bank's poverty reduction strategy in the light of what other donors are doing. The review served as background to an evaluation by the Operations Evaluations Department (OED) of the World Bank of the effectiveness of the strategy