Policy coherence for development (PCD) is an approach and policy tool for integrating the economic, social, environmental and governance dimensions of sustainable development at all stages of domestic and international policy making. It is the aim of Policy Coherence for Development to make foreign relations to be as ecologically, economically and socially coherent as possible and thereby to make international co-operation for international development more effective.[1]
Commitments on achieving greater policy coherence to promote development have also been promoted by the Organisation of Economic Cooperation and Development (OECD) (which has a specific department, Policy Coherence for Development Unit)[2] as well as in the 2011 Busan Partnership for Effective Development Cooperation, the UN Millennium Declaration and the 2010 UN Millennium Development Goals Summit. In an era when development assistance is likely to come under more pressure, Policy Coherence for Development (PCD) should become more rather than less important, including in the post 2015 framework as is increasingly becoming recognised. An example of such recognition is the target of the United Nations Sustainable Development Goal 17 which aims to enhance policy coherence for sustainable development as part of the 2030 Agenda.[3]
The origins of the concept go back to successful European NGO campaigns of the 1990s that put a spotlight on 'dumping' of European products in developing countries, and which in 1992 led to an article in the Treaty on European Community that required EU policy makers to take account of developing country interests when drawing up new policies. Depending on the translation, this Treaty article was referred to as promoting coherence (e.g. German version) or consistency (e.g. English version). Later that same decade the OECD added 'for development' so as to clarify that 'PCD' was about ensuring that policies do not harm and where possible contribute to international development objectives. Examples of PCD definitions clarifying this impact focus can be found in the 2005 European Consensus on Development and the 2008 outcome document of the UN MDG summit, both of which link to the MDGs.
Under the principles of Policy Coherence for Development (PCD) potential conflicts of objectives and interests between international co-operation and other sectoral policies of the various federal departments should be identified and resolved as far as possible. These may be in the following policy areas: Migration policy, agricultural policy, environmental policy, health policy, financial sector policy, security policy, education, research and cultural policy.[1]
The concept of policy coherence for development (PCD) first emerged in discussions among international aid donors in the early 1990s. The term Policy Coherence for Development (PCD) originally emerged from the realisation that non-aid policies of donors affect developing countries and should not distract but rather be supportive of international development goals. The PCD concept initially emphasised the responsibility of developed countries to take into account the effect on developing countries when formulating domestic policies across different sectors (trade, finance, migration, security, technology, science). It thus originates from a north-south paradigm with responsibilities for better PCD placed on developed countries to the benefit of developing countries. As the concept evolved, PCD has been understood to go beyond a 'do no harm' approach, also with a requirement to seek synergies between development co-operation and other policies as well as to correct existing incoherencies. The debates taking place in the EU and the OECD on promoting PCD have also fostered the understanding that PCD should be enhanced at different levels. These were commonly referred to as internal, intra-governmental, inter-governmental, multilateral, multi stakeholder and developing country coherence.[4]
PCD operates in a multi-polar global economy in which all countries are playing a role in driving global growth and enabling sustainable development. A rapidly changing global economic landscape means every country is facing more complex and interlinked economic, social and environmental challenges. A better understanding of the linkages of the emerging global trends and their implications is critical for countries as they craft strategies for sustainable development.[5]
The European Union and policy coherence for development
The European Union has translated this idea into a legal commitment as most recently stated in the Treaty of Lisbon in 2009 and has highlighted the concept in political declarations and communications, including the position on the post-2015 agenda ‘A decent life for all’. The OECD expressed political will to ensure PCD as noted its 2008 Ministerial Declaration and in the following 2010 Council Recommendations on PCD. The OECD Strategy for Development also assigns key importance to PCD. Both OECD and EU have put in place systems and tools define overall ambition and targets, facilitate decision-making and monitor progress, which include institutional mechanisms, monitoring tools, e.g. peer reviews, indicators and reporting, as well as policy tool-kits presented as practical measures to achieve progress. Some OECD Member states, for example Finland, the Netherlands, have currently developed and piloted self-assessment PCD toolkits. Finland and Switzerland are also testing developing country-level impact assessments in the area of food security.[4]
The European Centre for Development Policy Management (ECDPM) a think tank focused on development co-operation that is based in Maastricht, The Netherlands, argue that Policy Coherence for Development (PCD) is fundamentally a matter of politics. A key dilemma for the countries is how to develop and sustain a level of political interest in and support for PCD, how to put PCD on the political agenda, and to retain momentum and make commitments towards promoting PCD meaningful at both the national and EU level. Although the potential benefits of effective PCD remain unquestioned, ECDPM argues that political leadership, sponsorship and focus have waned in recent years in the several countries, even if many of these are considered global leaders in PCD.[6]
A recent report from the European Commission states that the European Union has made good progress on Policy Coherence for Development (PCD) at both European and Member State level, a fact recognised by the OECD in the most recent (2012) OECD DAC peer review. It argues that the EU has cemented its position as a global leader in implementing PCD commitments in policy-making. It does however acknowledge that there is still room for progress in terms of using mechanisms such as impact assessments, evaluation and/or measuring, monitoring progress and reporting on implementation. The Commission argues that the EU remains the lead actor for PCD internationally, ahead of its main partners, with the highest levels of political and legal commitment. More recently, PCD issues have benefited from sustained high-level political attention in the EU and featured more prominently on the agenda of the EU Foreign Affairs Council.[7]
The United States and policy coherence for development
Policy coherence for development is among the many criteria for the OECD Development Assistance Committee Peer Review Process. The 2011 DAC Peer Review of the United States stated that "The OECD/DAC describes progress towards policy coherence for development (PCD) as involving three building blocks: (i) a political commitment that clearly specifies policy objectives; (ii) policy co-ordination mechanisms that can resolve conflicts or inconsistencies between policies and maximise synergies; and (iii) monitoring, analysis and reporting systems to provide the evidence base for accountability and for well- informed policy making and politics (OECD, 2008a). The 2006 peer review encouraged the US government to develop a more explicit policy on the role of policy coherence for development and to put in place the resources needed to carry out analysis and effectively manage the policy coherence agenda. Five years on, the US has achieved mixed progress in implementing these recommendations and the three PCD pillars"[8]
The OECD argue that national security strategy cannot substitute for a policy coherence for development agenda. After the passing of the FY14 State and Foreign Operations Appropriations bill in 2013, Kate Almquist Knopf, a former assistant administrator for USAID, blogged that "There is a fundamental mismatch between the United States’ foreign aid architecture, resources, and objectives" and that the bill was a "stinging reminder of the low esteem in which many members of Congress hold global development and the US Agency for International Development (USAID), the primary federal agency charged with delivering US foreign assistance worldwide." She called for the USAID administrator to be a standing member of the National Security Council, and the US Secretary of State could return actual budget and planning authority to USAID by restoring the USAID administrator as the dual-hatted director of US foreign assistance.[9]
Policy coherence for food security
Food security is a major development challenge and to address this, the EU amongst others has effectively put global food security high among its development priorities for the years to come. However, while the European Union is the world's major development actor on food security, as ECDPM argues some of its other policies are still contested as harmful to global food security and agricultural development.
An analysis of EU policy-making processes related to agriculture, fisheries, energy and trade shows that some tangible efforts have been made to strengthen policy coherence 'for food security'. However, these are tentative steps. Other concerns and interests dominate the debates and shape the outcomes, while global food security considerations play a very marginal to no role, or the food security rationale used is at odds with the logic of the EU's own food security policy framework.[10]
Policy coherence for development in the post-2015 development goals debate
United Nations Summit on the Millennium Development Goals
Amid international reflection on the form and content of a post-2015 framework, among many other issues, PCD was highlighted as being a key component of the 'beyond-aid' debate. The post-2015 agenda discussions emphasise the need for a universal development agenda that is relevant to the needs of all countries and which is based on shared responsibilities. This is against the background of a changing global development landscape and shared development and 'global public goods' challenges, such as climate change, widening income inequalities, resource scarcity and environmental degradation. The original PCD concept focusing on 'beyond-aid' policies of OECD DAC donor countries does not easily fit such a new 'universal' logic. For this reason, the OECD has reconceptualised PCD and now promotes a wider universal approach and definition of PCD in the context of the post-2015 agenda.[5]
The Eighth Millennium Development Goal (MDG8) was designed "to create an environment – at the national and global levels alike – conducive to development and to the elimination of poverty." The OECD argue that progress in achieving the MDG8 has been limited and in fact the MDG8 downplayed the importance of domestic policies and domestic resource mobilisation in financing the MDGs and fostering development. They also argue that discussions on PCD have mainly taken place among donors, having focused on coherence between aid and non-aid policies and on a sector-by-sector basis. This has meant focusing on issues with important cross-border dimensions, such as trade, agriculture, investment, health and migration, amongst others, but without giving attention to the multi-dimensionality of development challenges. At the same time, an approach to "naming and shaming" has succeeded only in highlighting the failures and negative effects of non-aid policies. This has been counterproductive for engaging other policy communities and key actors beyond those in development.
A paper by ECDPM argues that the various of the ideas and principles of PCD can be mainstreamed in the post-2015 framework without using strong PCD jargon. These include i) targets for Means of Implementation in thematic areas that effectively require strengthened PCD efforts, ii) targets in relation to capacity building for more integrated and evidence-based policy-making and iii) efforts to build a strong accountability framework. The paper further concludes that independent from whether a universal PCD concept will explicitly be part of the language of a new framework, real progress on PCD will have to remain a major, if not the most, important component of OECD and EU MS action in achievement of post-2015 commitments.[4]
Policy coherence for development index
The Policy Coherence for Sustainable Development Index (PCSDI) is an index elaborated by the Non Governmental Organisation Coordinator in cooperation with the Spanish Network for Development Studies REEDES.[11] PCSDI analyses both the policies that make a positive contribution to sustainable development in a country and those that impact negatively, not only on that country, but also on third countries or on the whole planet.[12]
In 2019 PCSDI 148 countries are ranked from 26.76 (the worst, India) to 79.02 (the best, Denmark). The PCSDI has 5 components: economic, social, environmental, global and productive.[13]
A critique of policy coherence for development
In 2013, the high-profile development blogger Owen Barder wrote a critique of the concept of 'Policy Coherence for Development' entitled 'Policy Coherence Is a Hobgoblin'. He argued that "The term PCD has given us an industry of reports and conferences focussing on whether countries have policies which are consistent with each other, and institutions thought likely to make them so, instead of focusing on whether and how those policies are individually supportive of, or inimical to, development." He argued that the PCD concept has "perhaps subconsciously, altered the country’s policy objectives away from impact to consistency."[14]
Extreme poverty, deep poverty, abject poverty, absolute poverty, destitution, or penury, is the most severe type of poverty, defined by the United Nations (UN) as "a condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to services" Historically, other definitions have been proposed within the United Nations.
The United States Agency for International Development (USAID) is an independent agency of the United States federal government that is primarily responsible for administering civilian foreign aid and development assistance. With a budget of over $27 billion, USAID is one of the largest official aid agencies in the world, and accounts for more than half of all U.S. foreign assistance—the highest in the world in absolute dollar terms.
International development or global development is a broad concept denoting the idea that societies and countries have differing levels of "development" on an international scale. It is the basis for international classifications such as developed country, developing country and least developed country, and for a field of practice and research that in various ways engages with international development processes. There are, however, many schools of thought and conventions regarding which are the exact features constituting the "development" of a country.
The Millennium Development Goals (MDGs) were eight international development goals for the year 2015 that had been established following the Millennium Summit of the United Nations in 2000, following the adoption of the United Nations Millennium Declaration. The Sustainable Development Goals (SDGs) succeeded the MDGs in 2016.
The Cotonou Agreement is a treaty between the European Union and the African, Caribbean and Pacific Group of States. It was signed in June 2000 in Cotonou, Benin's largest city, by 78 ACP countries and the then fifteen Member States of the European Union. It entered into force in 2003 and was subsequently revised in 2005 and 2010.
Official development assistance (ODA) is a term coined by the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD) to measure aid. The DAC first used the term in 1969. It is widely used as an indicator of international aid flow. It includes some loans.
Development aid or development cooperation is a financial aid given by governments and other agencies to support the economic, environmental, social, and political development of developing countries. It can be further defined as "aid expended in a manner that is anticipated to promote development, whether achieved through economic growth or other means". It is distinguished from humanitarian aid by focusing on alleviating poverty in the long term, rather than a short term response.
Aid effectiveness is the effectiveness of development aid in achieving economic or human development. Following the Cold War in the late 1990s, donor governments and aid agencies began to realize that their many different approaches and requirements for conditioning aid were imposing huge costs on developing countries and making aid less effective. They began working with each other, and with developing countries, to harmonize their work to improve its effect. Aid agencies are always looking for new ways to improve aid effectiveness, including conditionality, capacity building and support for improved governance.
In international relations, aid is – from the perspective of governments – a voluntary transfer of resources from one country to another.
Environmental policy is the commitment of an organization or government to the laws, regulations, and other policy mechanisms concerning environmental issues. These issues generally include air and water pollution, waste management, ecosystem management, maintenance of biodiversity, the management of natural resources, wildlife and endangered species. For example, concerning environmental policy, the implementation of an eco-energy-oriented policy at a global level to address the issues of global warming and climate changes could be addressed. Policies concerning energy or regulation of toxic substances including pesticides and many types of industrial waste are part of the topic of environmental policy. This policy can be deliberately taken to influence human activities and thereby prevent undesirable effects on the biophysical environment and natural resources, as well as to make sure that changes in the environment do not have unacceptable effects on humans.
The Agreement on Agriculture (AoA) is an international treaty of the World Trade Organization. It was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade, and entered into force with the establishment of the WTO on January 1, 1995.
The European Development Fund (EDF) is the main instrument for European Union (EU) aid for development cooperation in Africa, the Caribbean, and Pacific countries and the Overseas Countries and Territories (OCT). Funding is provided by voluntary donations by EU member states. The EDF is subject to its own financial rules and procedures, and is managed by the European Commission (EC) and the European Investment Bank.
The Organisation for Economic Co-operation and Development's (OECD) Development Assistance Committee (DAC) is a forum to discuss issues surrounding aid, development and poverty reduction in developing countries. It describes itself as being the "venue and voice" of the world's major donor countries.
CONCORD is the European NGO confederation for Relief and Development. It was founded in 2003 and is the main NGO interlocutor with the EU institutions on development policy. As of 2011 it has 28 national associations, 18 international networks and 2 associate member representing 1,800 NGOs which are supported by millions of citizens across Europe. Its members are national NGO platforms and international NGO networks. Its secretariat is based in Brussels.
The German Advisory Council on Global Change is an independent, scientific advisory body to the German Federal Government, established in 1992 in the run-up to the Rio Earth Summit (UNCED). The Council's principal tasks are to:
Action for Global Health
The Sustainable Development Goals (SDGs) or Global Goals are a collection of 17 interlinked goals designed to be a "blueprint to achieve a better and more sustainable future for all". The SDGs, set in 2015 by the United Nations General Assembly and intended to be achieved by the year 2030, are part of a UN Resolution called the "2030 Agenda".
Various high level forums on aid effectiveness were held throughout the progression of the aid effectiveness movement following the 2003 High Level Forum on Harmonization in Rome. It was at this forum where donor agencies agreed to better coordinate their aid activities with developing countries, as well as periodically discuss any concrete progress at different high level forums of aid effectiveness. These meetings served for the advancement towards better aid while they show how countries built towards better ways of doing business together through the results of their meetings.
Sustainable Development Goal 17 is about "partnerships for the goals" it is one of the 17 Sustainable Development Goals established by the United Nations in 2015. Its official wording is to "Strengthen the means of implementation and revitalize the global partnership for sustainable development". The Goal has 17 targets to be achieved by 2030. These 17 targets are broken down into five categories namely finance, technology, capacity building, trade and systemic issues. Each target has a number of indicators. Progress towards targets will be measured by 25 indicators.
Aid for Trade is an initiative by the World Trade Organization (WTO), as well as a policy concept in international economic and trade development, concerned with helping developing countries and particularly the least developed countries build trade capacity and infrastructure.
1 2 3 Knoll, A. 2014. Bringing Policy Coherence for Development into the Post-2015 Agenda – Challenges and Prospects. ECDPM Discussion Paper 163. Maastricht: ECDPM.
1 2 OECD (2014), Better Policies for Development 2014: Policy Coherence and Illicit Financial Flows, OECD
↑ Galeazzi, G., Knoll, A., Krätke, F., Lein, B. Rosengren, A., Sherriff, A. 2013. Insights from development in national policy coherence for development systems: Key cross cutting issues and dilemmas. (ECDPM Discussion Paper 144)
↑ European Commission; Commission Staff Working Document 'EU 2013 Report on Policy Coherence for Development'; 2013; "Archived copy"(PDF). Archived from the original(PDF) on 29 July 2014. Retrieved 24 July 2014.CS1 maint: archived copy as title (link)
↑ DAC PEER REVIEW OF THE UNITED STATES; OECD; 2011
↑ Engel, P., Lein, B., Seters, J. van, Helden, B. van. 2013. EU Policy Coherence for Food Security: Aligning parallel agendas. (ECDPM Discussion Paper 153). Maastricht: ECDPM
↑ "Our Team". PCSDI The Alternative GDP. Retrieved 29 June 2020.
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