South-South and Triangular
Cooperation: Improving
Information and Data
Alison Johnson
Development Finance
International,
Consultant to DCF
November 2009
DCF High Level Symposium,
November 2009
1
Introduction
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South-South Cooperation (SSC) has a long and
proud history as an important form of solidarity
between countries.
For the international community to acknowledge
accurately its increasing role and importance,
there needs to be better and more
comprehensive information and data.
It is recognised that SSC has considerable
advantages and better information will benefit
partner countries in seeking most cost effective
and appropriate funding.
DCF High Level Symposium,
November 2009
2
Principles underlying SSC
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The principles of solidarity and mutual
cooperation underlie SSC and as such it is a
broader and deeper concept that Northern donor
aid. It encompasses financial flows (eg loans
and grants) as well as the sharing of
experiences, technology and skills transfers,
preferential market access and trade-oriented
support.
However for UN DCF to strengthen information
and data flows, the initial emphasis is to be
narrowed to focus on financial SSC and
triangular flows.
DCF High Level Symposium,
November 2009
3
Proposal for defining SSC -1
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The principle is that it represents a genuine
transfer of resources from the country offering
cooperation programmes into the economies of
partner countries.
It is defined to include grants and concessional
loans (including export credits) provided by one
Southern country to another to finance projects,
programmes, technical cooperation, debt relief
and humanitarian assistance.
DCF High Level Symposium,
November 2009
4
Proposal for defining SSC -2
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Southern actors offering SSC are Southern
governments and their agencies and Southern
multilateral institutions.
Southern actors receiving SSC are Southern
governments and their agencies, multilateral
development institutions (eg World Bank, UN),
regional development banks (eg AsDB, AfDB),
other multilateral institutions and CSOs.
The concessionality of SSC loans is to be
designed to measure the opportunity cost of the
funds to the lender.
DCF High Level Symposium,
November 2009
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Proposal for defining SSC -3
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Triangular cooperation is Northern donors,
multilateral institutions and Southern partners
providing cooperation to one Southern partner to
execute projects/programmes with the aim of
assisting a third Southern partner country.
Since Northern donors and multilateral
institutions account for their triangular flows as
Northern donor aid including these flows as part
of SSC would result in double-counting.
However Northern donors are to be encouraged
to provide better reporting on their triangular
flows.
DCF High Level Symposium,
November 2009
6
Proposal for data
compilation
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To have a comprehensive and consistent
overview of SSC, it is important to have the
following annual data:
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New commitments in aggregate and by concessionality, type
of cooperation, sector and receiving partner country
Gross and net disbursements in aggregate and by
concessionality, type of cooperation, sector and receiving
country.
These data will enable the computation of
benchmarks to better understand SSC and ways
to maximise its impact.
Data on SSC is to be collected on a voluntary
basis.
DCF High Level Symposium,
November 2009
7
Proposal for SSC database
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Voluntary reporting of SSC data would be a twostaged process:
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Compilation by Southern countries of national data on a
voluntary basis and on the basis of the agreed data
concepts and definitions for SSC.
Reporting of nationally compiled data in a standardised
Excel-format to the DCF, which will be used in the
overall reporting of SSC by the DCF.
Draft database format in Excel has been
prepared as part of the Study.
DCF High Level Symposium,
November 2009
8
Practical challenges for data
compilation
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One of the main challenges is lack of a single government
ministry or agency responsible for the country’s SSC
programmes. So there is no overarching institutional
structure for recording and monitoring SSC. On the other
hand, a number of Southern countries have taken steps to
strengthen institutional and data collection processes.
Proposal for the way forward:
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A senior Southern country official, knowledgeable of the
country’s cooperation programme, be nominated to facilitate
national data collection and its reporting to the DCF on a
voluntary basis,
Support to be provided by the UN including through missions
and email/telephone.
DCF High Level Symposium,
November 2009
9
Impact of SSC
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It is proposed to conduct analysis to learn and
share good practices of SSC and triangular
cooperation, for example an independent study
to evaluate triangular cooperation and a
repository of good practices in triangular
cooperation to garner more information on the
practical issues.
DCF High Level Symposium,
November 2009
10