South–South cooperation and the future of development assistance: mapping actors and options

International development cooperation is undergoing fundamental changes. New – or often re-emerging – actors have gained importance during the past two decades, and are increasingly challenging the traditional approach to development cooperation associated with the members of the Development Assistance Committee of the oecd. Their supposedly alternative paradigm, ‘South–South cooperation’ (ssc), has been recognised as an important cooperation modality, but faces contradictions that are not too different from those of its North–South counterpart. ssc providers are highly heterogeneous in terms of policies, institutional arrangements, and engagement with international forums and initiatives. This article contributes to current debates on ssc by mapping the diversity of its actors – based on illustrative case studies from the first and second ‘wave’ of providers – and by presenting and discussing some possible scenarios for the future of ssc within the international aid system.     

Emerging powers as normative agents: Brazil and China within the UN development system

Institutions are frequently thought of as ‘socialising’ member states into pre-established norms. However, this influence is not necessarily a one-way street; members can also affect institutions, whether individually or collectively. This article analyses the behaviour of two emerging powers – Brazil and China – within the field of international development. What roles have these two states played in shaping global development norms? The article examines the key motivations, positions, and initiatives taken by Brazil and China, with special reference to the UN development system (unds). Whereas Brazil and China’s early behaviour within the unds diverged significantly, in the post-cold war period both have become increasingly interested in – and capable of – influencing UN norms. However, despite greater involvement in UN development negotiations, these countries’ leverage in normative debates originates outside of the unds, through their South–South cooperation programmes. The current diversification of platforms through which the norms of international development are negotiated may enhance the influence of emerging powers, although their ability to channel this influence effectively will depend on their capacity for norm entrepreneurship, rather than mere norm blocking.     

The oecd’s discourse on fragile states: expertise and the normalisation of knowledge production

The concept of legitimacy has been highly influential in policy recommendations concerning state building in ‘fragile states’. Indeed, depending on how ‘legitimacy’ is conceived, the actions and practices of state builders can differ substantially. This article discusses what is at stake in the conceptualisation of ‘legitimacy’ by comparing the academic literature with the normative production of the oecd. Looking at two approaches to legitimacy – the institutionalist or neo-Weberian approach focusing on institutional reconstruction, and the social legitimacy approach emphasising the importance of social cohesion for successful state building – the article shows that both these conceptions are present in most reports, but also that the neo-Weberian approach tends to prevail over the social legitimacy perspective. Through a series of interviews with oecd officials and scholar-practitioners who have participated in the writing process of oecd reports, we hint, finally, at future research avenues on the social conditions of knowledge production and its normalisation.     

The Resource Curse - What Have We Learned from Two Decades of Intensive Research: Introduction to the Special Issue

Abstract

There has been increasing interest in the so-called ‘resource curse’, that is the tendency of resource-rich countries to underperform in several development outcomes. This has generated a mountain of (often contradictory) evidence leaving many floundering in the flood of information. This special issue compiles eight papers from some of the most prominent contributors to this literature, combining original research with critical reflection on the current stock of knowledge. The studies collectively emphasise the complexities and conditionalities of the ‘curse’ – its presence/intensity is largely context-specific, depending on the type of resources, socio-political institutions and linkages with the rest of the economy.     

International Organisations and the Production of Hegemonic Knowledge: how the World Bank and the oecd helped invent the Fragile State Concept

This article examines the role of the World Bank and the oecd in the emergence and circulation of the ‘fragile state’ concept. These organisations were critical to the early development of the concept and in the consolidation of a knowledge-based agenda set out by Western aid donors to justify international assistance to poor and conflict-ridden countries. Attention is focused on three normative processes affecting the production of transnational knowledge: normalisation, fragmentation and assimilation. ‘Normalisation’ is the process by which influential knowledge producers help to transform a rough concept into a widely accepted transnational norm based on expert knowledge, detailed definitions and statistical exercises. Once the concept has been appropriated by several international actors, it undergoes normative ‘fragmentation’ as it is subjected to various interpretations across time and space. ‘Assimilation’ is the process by which the overarching concept is renewed, enriched and gradually adapted through the incorporation of additional insights. The article argues that the World Bank and oecd have functioned as central knowledge hubs, facilitating the circulation of new and controversial ideas on fragile states and their integration into the prevailing policies of the most powerful aid donors. The two organisations have thus taken an active role in the consolidation and perpetuation of the aid donors’ policy doctrine, ultimately protecting it from major normative dissent.     

How representative are brics?

The five countries known as brics, while not homogeneous in interests, values, and policy preferences, do have a common interest in checking US/Western power and influence through collaboration with non-Western powers. They vary considerably but all are ahead of other developing countries on population, military power, economic weight, geopolitical clout, and global reach and engagement. They are unrepresentative of the typical developing country in terms of interest, capacity, and resources, but they can represent the interests and goals of developing countries as a group on those issues for which the North–South division is salient. The diversity within brics, their differences from other developing countries, and their potential to reflect and represent the global South are explored with respect to climate change, finance, trade, aid, human rights and intervention, and development. It remains unclear whether brics can morph from a countervailing economic grouping to a powerful political alternative.     

Assessing the G77: 50 years after unctad and 40 years after the nieo

This article views the history of the Group of 77 through the lens of its relations with unctad’s establishment in 1964, its unsuccessful struggle for the nieo in the 1970s, and the subsequent loosening of ties. The debt crisis of the 1980s, the Uruguay Round negotiations, and the arrival of the wto are seen as crucial forces unravelling the previously close links. Growing differentiation among developing countries and the changing leadership of the G77 are also cited as important influences on its current relationship with unctad.     

The ‘girl effect’: liberalism,empowerment and the contradictions of development

The ‘girl effect’ – the idea that investment in the skills and labour of young women is the key to stimulating economic growth and reducing poverty in the global South – has recently become a key development strategy of the World Bank, the imf, usaid and dfid, in partnership with corporations such as Nike and Goldman Sachs. This paper examines the logic of this discourse and its stance towards kinship in the global South, situating it within the broader rise of ‘gender equality’ and ‘women’s empowerment’ as development objectives over the past two decades. Empowerment discourse, and the ‘capability’ approach on which it is based, has become popular because it taps into ideals of individual freedom that are central to the Western liberal tradition. But this project shifts attention away from more substantive drivers of poverty – structural adjustment, debt, tax evasion, labour exploitation, financial crisis, etc – as it casts blame for underdevelopment on local forms of personhood and kinship. As a result, women and girls are made to bear the responsibility for bootstrapping themselves out of poverty that is caused by external institutions – and often the very ones that purport to save them.     

‘Fragile States’: introducing a political concept

The special issue ‘Fragile States: A Political Concept’ investigates the emergence, dissemination and reception of the notion of ‘state fragility’. It analyses the process of conceptualisation, examining how the ‘fragile states’ concept was framed by policy makers to describe reality in accordance with their priorities in the fields of development and security. The contributors to the issue investigate the instrumental use of the ‘state fragility’ label in the legitimisation of Western policy interventions in countries facing violence and profound poverty. They also emphasise the agency of actors ‘on the receiving end’, describing how the elites and governments in so-called ‘fragile states’ have incorporated and reinterpreted the concept to fit their own political agendas. A first set of articles examines the role played by the World Bank, the oecd, the European Union and the g7+ coalition of ‘fragile states’ in the transnational diffusion of the concept, which is understood as a critical element in the new discourse on international aid and security. A second set of papers employs three case studies (Sudan, Indonesia and Uganda) to explore the processes of appropriation, reinterpretation and the strategic use of the ‘fragile state’ concept.     

Feature review Corruption eruption: Development and the international community

Abstract

‘Tied’ or ‘in-kind’ international food aid has been criticised as an implicit form of export subsidy that governments use to circumvent export subsidy restrictions. In addition to displacing agricultural exports, food aid is less efficient than untied aid and depresses local agricultural production in recipient countries. I argue that tied food aid is not protected by the Uruguay Round Agreement on Agriculture and could consequently be challenged under the World Trade Organization's dispute settlement mechanism as a prohibited or actionable subsidy contrary to the Subsidies and Countervailing Measures (scm) Agreement. As the USA is both the largest donor of international food aid and most consistently ties its food aid to domestic agricultural producers, this paper focuses on US policy to describe the challenge that might be advanced under the scm Agreement.     

The hares,the hounds and the African National Congress: on joining the Third World in post-apartheid South Africa

The utility of framing questions of global inequality in relation to a ‘First World’ and a ‘Third World’, a North and a South, or developed countries and developing (or underdeveloped) countries, has been much debated since the end of the Cold War. This article addresses the issue of the perceived weaknesses and possible continued strengths of the notion of the ‘Third World’ in general terms, and then grounds such a discussion through an analysis of the way that the African National Congress (anc) government in post-apartheid South Africa has approached the question of global inequality. Since its election in 1994, and more particularly since Thabo Mbeki succeeded Nelson Mandela as president, the anc has presented itself as having an especially important leadership role on behalf of the Third World. The profound contradictions inherent in the anc's effort both to retain its Third Worldist credentials and to present itself as a reliable client to the Bretton Woods institutions and foreign investors provides insights into how to design alternative strategies for overcoming world-wide poverty, strategies which might be more effective than those chosen by the anc. Since the anc was elected to government in 1994 it has pursued a brand of deeply compromised quasi-reformism, analysed here, that serves primarily to deflect consideration away from the options presented by other, much more meaningfully radical international and South African labour organisations, environmental groups and social movements. At the present juncture a range of increasingly well-organised grassroots movements in South Africa find that they have no choice but to mobilise in active resistance to the bankrupt policies of the anc. The increasing significance of these efforts points to the possibility that they might eventually be able to push South Africa—either through a transformation of the anc itself or through the creation of some new, potentially hegemonic, political project in that country—back into the ranks of those governments and groups that seek to use innovative and appropriately revolutionary approaches to challenge the geographical, racial and class-based hierarchies of global inequality.     

The Real Exchange Rate,Foreign Aid and Macroeconomic Transmission Mechanisms in Tanzania and Ghana

Abstract

A recent study of 36 sub-Saharan African countries found a positive impact of aid in the majority of these countries. However, for Tanzania and Ghana, two major aid recipients, aid did not seem to have been equally beneficial. This study singles out these two countries for a more detailed empirical investigation. The focus is on the effect of aid when allowing external and nominal factors to play a role in the macroeconomic transmission mechanism. We conclude that when monetary and external factors are properly accounted for, then aid has been pivotal to growth in both real GDP and investment.     

South–South cooperation and the international development battlefield: between the oecd and the UN

This article discusses the transformation in development architecture, focusing on the role of emerging powers and the growing relevance of South–South cooperation (ssc). Drawing on a conceptual toolkit based on the work of Pierre Bourdieu, it aims to approach ssc as a narrative and to understand the processes of contestation that have turned international development into a battlefield since the end of the 1990s. The article argues that the emergence of ssc has contributed to decentring the field of international development, both in terms of the agents authorised to play and the practices considered legitimate. Within this process the Global Partnership for Effective Development Cooperation, led by the oecd’s Development Assistance Committee, and the United Nations Development Cooperation Forum have become two sites on the battlefield on which the borders of international development are being redrawn.     

Book reviews

Economic relations between China and Latin America have grown rapidly over the past decade. This paper documents the growth of trade, foreign direct investment (fdi) and other financial flows between China and Latin America and identifies the interests of China in the region as a source of raw materials, a market for exports of manufactured goods and an area of diplomatic competition with Taiwan. It points to the asymmetric nature of the relationship in terms of the relative importance of bilateral trade to each partner, the composition of trade flows, and the balance of fdi flows. It shows that these show many of the characteristics of centre–periphery relations. However, China is far from becoming a new hegemonic power in Latin America and the latter's relations with the USA and Europe continue to be more significant than those with China.     

The State Elite,PRSPs and Policy Implementation in Aid-dependent Ghana

This article describes and explains the impact of the donor-driven Poverty Reduction Strategy Paper (PRSP) and the aid modalities surrounding it in Ghana. It focuses on the period in which the New Patriotic Party (NPP) government was in power from 2001 until 2008, but places this within the broader context of aid dependence in Ghana since the 1980s. It is argued that the PRSP documents produced by the government had little impact on implementing policy actions, but rather their function was to secure debt relief and the continuation of foreign aid from official donors. The article examines what was actually implemented during the NPP government and the factors that influenced those actions. More generally it highlights the constraints Ghanaian governments have faced in pursuing economic transformation within contemporary domestic and international contexts.     

Globalisation and Power in Weak States

Both academic literature and popular ideas focus on the ways in which globalisation might be leading to convergence in the ways in which societies are governed. This is misleading. There are marked differentiation processes. Patterns of governance are diverging. These divergences are concentrated in smaller, poorer countries outside the ranks of the oecd and bric/emerging economies category. This article focuses on the ways in which these divergences are driven by changes in sources of government and elite revenues (‘political revenues’). As a result of late 20th century globalisation, fewer governments are funded by broad general taxation, and elites in poor countries face increased incentives to use their power for personal profit rather than the collective good. The emergence of ‘failing’ or ‘weak’ states is not an isolated or random phenomenon, but an aspect of a broader shift in the character of public authority. That understanding has direct implications for the policies employed to combat the problem.     

The Stop Climate Chaos Coalition: climate change as a development issue

After the Working Group on Climate Change and Development recognised the challenge that climate change poses to development, a number of environmental and aid, trade and development organisations formed a new politically active coalition, Stop Climate Chaos (SCC), to demand that stronger climate laws be adopted in the UK. The coalition now frames the issue of climate change as a ‘global climate justice’ one, emphasising the severity of the issue for people in poor countries, who will suffer the worst consequences, but have contributed least to it. The extent to which SCC member organisations address climate change as a global justice issue is explored through a content analysis of their websites, and a survey of participants in the SCC I-Count march, London, 3 November 2006. There is certainly evidence that environmental organisations are ‘facing South’, just as aid, trade and development organisations are ‘turning green’.     

Global and Local Health Governance: Civil society,human rights and hiv/aids

From the outset in the mid-1980s the international response to hiv/aids has been characterised by an emphasis on the human rights aspects of the pandemic, and on recognition of the pivotal role of civil society actors (csos). But how the rights-based conception of hiv/aids and the international legitimation of csos play out at the local level depends not only on the vertical coordination between global and local levels but also on government–cso relations and the understanding of the pandemic in individual countries. South Africa and Cambodia provide comparative examples of ‘glocalised’ responses to hiv/aids. Both countries were among the hardest hit in their respective regions. But, while the South African government was slow to acknowledge the severity of epidemic, the Cambodian leadership quickly initiated a comprehensive response to it. The two cases illustrate how opportunity structures at the international and national levels created different local responses to hiv/aids, with significant consequences for the epidemic over time.     

American empire and ‘excluded states’: the millennium challenge account and the shift to pre-emptive development

In March 2002 President George W Bush announced the creation of what many insiders have heralded as a revolutionary development initiative: the Millennium Challenge Account (mca). The latter seeks to provide assistance to 79 of the world's poorest countries—many of which have been often equated with the term ‘failed states’—so that they may reap the benefits of neoliberal-led globalisation. One of the most novel, and coercive, features of this development compact is the ‘pre-emptive’ method in which it will administer aid. Under the mca, only countries that govern justly, invest in their people, and open their economies to foreign enterprise and entrepreneurship will qualify for funding. To this end the Bush administration has devised 16 eligibility criteria—ranging from civil liberties to ‘days to start a business’—that each country must successfully pass before receiving aid. Despite its impact on normalising, and thus legitimating, the tendency towards the privatisation of aid and militarisation of development, there has been very little critical work on the mca. This paper sets out to fill this gap in the literature by attempting to understand historically the mca as a moment of American empire.1 This article builds on the wider arguments developed in my forthcoming book, Contesting Global Governance: Empire, Class, and the New Common Sense in Managing Globalisation, London: Pluto Press. View all notes In doing so, I suggest that, while the form of the mca represents an unabashed articulation of US-led imperialism vis-a`-vis the poorest regions in the South, the content of this allegedly novel strategy reflects the same goals and interests that underlie the neoliberal agenda, namely, that the path to increased growth and prosperity lies in countries' willingness and ability to adopt policies that promote economic freedom and the rule of law.     

State rules: Oil companies and armed conflict in Sudan

The strategic behaviour of international oil companies in war-torn Sudan was overwhelmingly driven by political pressure from governments. After almost 20 years of operating in Sudan, the US giant Chevron was pushed to withdraw as a result of deteriorating relations between Washington and Khartoum. The Canadian flagship oil company, Talisman, which helped kick-start oil development after Chevron's exit also fell victim to Washington's ire. On the other hand, the European junior oil companies, Lundin and omv, protected by the European Union's political standpoint of ‘constructive engagement’ in Sudan, were free to profit. Finally, the eastern parastatals, led by a surging China, eager to capture international energy resources to fuel their budding economies and supported by the plural relationships fostered between their respective governments and the ruling, riverine elite in Khartoum, tactfully established a dominating presence. While fervent international human rights advocacy alone seemingly drove susceptible Western firms out of Sudan, the real power behind corporate movements came from the rules dictated by states.