{RE-}EMERGING AS DONOR Russia’s Participation In Global Development Cooperation : {RE-}EMERGING AS DONOR Russia’s Participation In Global Development Cooperation Alexander Alimov
Department of International Organizations
Ministry of Foreign Affairs
of the Russian Federation
Russia: long history of engagement: Russia: long history of engagement . Russia being the Soviet Union successor has a long history of engagement in development cooperation
USSR: one of the world’s major donor states and creditors
considerable amounts of external assistance
aid policy largely determined by ideological considerations, granted to countries, which declared their “socialist orientation”
significant contribution to development of many countries
necessary institutional arrangements in place
1990s Russia: transformation to a recipient of international aid
“exodus” from recipient countries
no new conceptual policy framework for international assistance
no special decision-making body set up to ensure implementation of such a policy
USSR legacy, including debt assets and liabilities
financial and technical support from international financial organizations, UN system, bilateral pertners
2000s: back to a donor
Back to donor status : Back to donor status graduation from the role of a recipient of international assistance, attainment of the MDGs domestically through own efforts and at own expense
search for an optimum balance between the need to address domestic issues and the need to increase participation in international efforts to support development
commitment to the global partnership for development as set out in the Millennium Declaration, the Monterrey Consensus, the Johannesburg Plan of Implementation and the 2005 World Summit Outcome
recognition of the centrality of mobilizing financial resources and their effective use to a global partnership for development in support of the achievement of the internationally agreed development goals, including the MDGs
strong support of multilateralism and the United Nations
UN Security Council Permanent Member
Group of Eight member and President in 2006
Development assistance activity restarted
Slide4: Federal Budget factual expenditures for development assistance 2005 - USD 97 million 2006 – to USD 100 million. Total amount of commitments taken in 2006 for the next 3-4 years - USD 250 million
Debt relief: Russia has cancelled or committed to cancel USD 11,3 billion of debt of African countries, including USD 2,2 billion of the outstanding debt of eligible heavily indebted poor countries under HIPC initiative
Financial support to international initiatives:
Global Fund to Fight AIDS, Tuberculosis and Malaria: USD 40 million pledged for 2002-2008, USD 217 million, which would be distributed to fund projects in Russian Federation, will be reimbursed to the Fund
Global Polio Eradication Initiative: USD 18 million pledged for 2003-2008
Global Plan of Action to Fight the Bird Flu and Pandemic Flu: USD 44,7 million pledged
International Energy Partnership Fund “Global village”: USD 30 million pledged
“Education for All” Initiative: USD 7,2 million pledged Russia as Development Assistance Donor
Factual Situation
Russia as Development Assistance Donor Factual Situation : Russia as Development Assistance Donor Factual Situation Voluntary contributions to UN funds, programmes and specialized agencies have been increased, in some instances doubled (WFP – USD 11 million, UNHCR – USD 2 million, UNDP – USD 1,1 million, UNICEF - 1 million, UN-Habitat - USD 0,4 million, UNFPA – 0,3 million,)
Contribution to IDA replenishment for 2003-2014 – USD 80 million
Contribution to several IMF programmes – around USD 50 million
Work is underway to make contributions to the Central Emergency Relief Fund (CERF) and the Peace-Building Fund
Innovative sources of financing:
Advance Market Commitments (AMCs) on vaccines
Slide6: Russia as Development Assistance Donor Factual Situation Emergency humanitarian assistance to countries, which have been victims of natural and man-made disasters: over USD 55 million for last five years
USD 30 million of targeted humanitarian, technical and medical aid in the beginning of 2005 to Asian and South-East Asian countries affected by the catastrophic tsunami
Iran, Pakistan, Lebanon, Algeria, Angola, Mali, Sudan, Cuba, Bolivia, Mexico, Ecuador
Training of specialists for CIS countries and developing states: about 8 thousand foreign students in Russian higher education institutions
Target for future – USD 500 million per year
Russia as Development Assistance Donor: Profile: Russia as Development Assistance Donor: Profile In absolute amounts Russia is far behind developed donor-countries
Russia is not OECD DAC member
Debt relief dominates over all other assistance flows
Multilateral channels: more emphasis on the BWI than on UN development system
Russia - both donor and recipient
Russia – a higher middle-income country with GNI per capita USD 4,650 in 2005
Significant regional disparities – challenges to achieve the MDGs in some regions: HDI in Russian regions that are lagging behind is comparable to that of developing countries
Russia has its own debt obligations
Gradual phasing out of international assistance
Enhancing its own development cooperation
Slide8: Enhancing development cooperation: Challenges Need for a comprehensive and coherent system:
Responsibilities are spread across different ministries
Steps taken are fragmented
Absence of a National Development Assistance Agency
Lack of conceptual basis and well-designed long-term strategy
Legal and regulatory frameworks need to be improved
The concept of ‘international development assistance’ including the term ‘ODA’, is still not included in the Budget code of the Russian Federation, other federal laws and the federal budget
Cumbersome Budgeting Process
Specific Government ordinance/regulation is needed for every budget expenditure
Hard-to-get approval of the Finance Ministry
Insufficient institutional capacity of relevant ministries
Infrastructure for providing bilateral assistance still to be developed
Slide9: Ensuring political will at the highest level
In May 2005 the President of the Russian Federation set the task of creating an effective development assistance mechanism.
Further elaboration of the conceptual as well as regulatory and legal framework
Concept of Russian Federation’s International Development Assistance
Amendment of the Budget code of the Russian Federation
Institution building, improving operational effectiveness and efficiency
Improving coordination among relevant Government agencies
Creating a working inter-ministerial mechanism for project approval and formulating proposals for budget allocations
Involving non-government stakeholders, including private sector
Involving regional authorities – long term perspective
Mobilizing public support
Seeking for further increase in volume of assistance
Increased contributions to UN funds and programmes
Way ahead: National Development Assistance Mechanism
Concept of Participation in International Development Cooperation : Concept of Participation in International Development Cooperation Prepared by MFA and Ministry of Finance
Main elements agreed by the Government in November 2006
To be presented to the President of the Russian Federation
Sets the principles, goals, forms and priority areas of Russia’s international development assistance
Outlines conceptual, regulatory and legislative basis of the national system of international development assistance and of the mechanism for planning and managing the external aid
Role of UNDP: RUSAID Project : Role of UNDP: RUSAID Project 2004-2005 – joint UNDP Russia and MFA preparatory assistance project “Russia as Emerging Donor. Strategic Research, Consultations and Training”
2006 – full fledged project aimed at providing practical assistance to the process of building up Russia’ s ODA agency/mechanism, including through:
Provision of advisory services to the appropriate government ministries, involved in the preparation of the concept on Russian development cooperation policy and establishment of a national development assistance mechanism;
Enhancing coordination and interaction between the relevant Russian government agencies and establishing partnership with the non-government stakeholders, including academic institutions, civil society and the corporate sector;
Establishing the information exchange and cooperation channels with other ODA agencies or structures worldwide
Support to the specific pilot initiatives aimed at realization of Russia’s donor capacity;
Elaboration of the basic principles, main elements and structure of Russian development assistance agency/mechanism and working out concrete proposals related to the establishment of the national ODA agency for the Government’s consideration.
Role of UNDP : Role of UNDP The Ministry of Foreign Affairs is the Executing Agency of the project on behalf of the Russian Government
Government expectations for the project:
Enhanced institutional, staffing and technical capacity within the respective Government entities to support the establishing of the national TA agency/mechanism;
Establishing a mechanism for funding JPOs and other national experts for assignment within the UN System elsewhere;
Exploring links between the ODA agenda and Russia’s G-8 chairmanship in 2006;
Learning, adapting and replicating international best practices and lessons learned;
Joint resource mobilization efforts including close collaboration with the corporate sector;
Transparent resources and results management;
Access to the international fora and events and communications with ODA agencies worldwide.
Role of UNDP : Role of UNDP Mainstream the activity to support emerging donors’ efforts into UNDP’s major strategic planning documents
No appropriate service line in the MYFF for 2004-2007
Mechanisms and regulations governing resource mobilizations should be conducive to increased contributions from the emerging donors
Possibility for tied-up contributions
More active promotion of the thematic trust funds
Attractive recovery rates
Active domestic resources mobilization for UNDP country programmes
Concrete project proposals to be presented regularly to interested Governments
Quick impact MDG related projects within and beyond region
Provide platform for regular information exchange and enhanced cooperation among emerging donors
Thank you : Thank you