Challenges, constraints and
opportunities in development
cooperation
Lars Engberg-Pedersen
Head of research unit on Politics and governance
DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES
5 key contradictions in aid
 Coordination versus proliferation and
fragmentation
 Recipient ownership versus aid accountability
to tax payers
 The poverty reduction objective versus the
allocation of aid resources
 International versus national development
 Differentiation of low-income countries versus
across-the-board approaches to development
DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES
The ideal solution
1. Cutting the ‘gift economy’ relations between
donor and recipient countries by financing
development cooperation through, e.g.,
international taxation.
2. Significantly strengthening policy coherence
for development by integrating international
development, economic and environmental
policies.
3. Creating a multilateral framework for and
oversight of development cooperation.
DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES
The contemporary world (1)
 Emerging economies – the balance of economic
power is tilting slowly, but surely.
– How united are China, India, Brazil and South
Africa?
– For how long will the South-North divide
dominate international politics?
– How significant will the backlash in Europe and
North America be?
DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES
The contemporary world (2)
 International negotiations – from UN to G20.
– Will we get a multilateral climate change deal?
– When will international taxation become
significant?
– Will the WTO deadlock be broken?
– Will a rights-based normative framework for
international cooperation emerge?
DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES
The contemporary world (3)
 Crises – fundamental institutional innovation
takes place in response to crisis.
 Institutional innovation will be shaped by:
– The nature of the crisis
– The relative strength of different interests
(power)
– Recent experience with institutions
– Dominant ideas about how to move on
DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES
What to do in dev. cooperation?
 Prepare the ground for action when the
crisis hit.
 PCD, the Paris agenda, multilateral
cooperation and division of labour all point
in the right direction, but cannot be
implemented to the extent needed.
 Create linkages with Environmental Policy
Integration.
 Build trust.
DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES