Enhancing Concessional Assistance for a Post-2015 Development Agenda

Abstract

"This paper seeks to empirically estimate the aggregate volume of concessional financing flows (comprising of traditional ODA, concessional flows from emerging donors, and private philanthropic flows) to all developing countries, as well as the share going to developing Asia and the Pacific. Empirical evidence shows that aggregate concessional financing flows to developing countries were at least $220 billion in 2012, of which at least $76 billion went to developing Asia and the Pacific. Traditional ODA still remains the single most important reported source of concessional financing for developing countries in general, although estimated private philanthropic flows appear to be more important in the Asian context. ODA-like financing flows from emerging economies remain relatively small. The paper examines mechanisms whereby different types of concessional flows—with diverse objectives and motivations—might be directed to effectively support a common post-2015 development agenda. Concessional flows are sensitive to poverty and MDGs, but much remains to be done to focus these on national and international development priorities. Common measures that can help channelize these flows toward a post-2015 agenda include continued sensitization of aid providers through wide-ranging consultations, establishment of objective and transparent indicators measuring developing countries’ need for and capacity to use assistance, and improvement in data and information (particularly for flows from private philanthropists and emerging bilaterals). In addition, the international development community and national governments can take specific actions. Providers of ODA flows must maintain a focus on vulnerable countries. International forums can encourage developed countries deliver on their ODA commitments. Measures must be adopted to ensure that south–south concessional flows do not crowd out traditional financing, including through triangular cooperation between northern and southern donors and developing country partners. Private philanthropy can be directed toward a post-2015 agenda mainly by national governments through appropriate policies, better promotion of targeted causes, and demonstration of social impacts of specific programs that need support. "