Global Public Policy Institute
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04 January 2010
GPPi sketches out core principles for reforming German development assistance
GPPi Director Wolfgang Reinicke published an article entitled "Gegen den Strich- Entwicklungspolitik" in the January/February 2010 issue of "Internationale Politik", Germany's premier foreign affairs journal.
While the appointment of Dirk Niebel as the new German Minister for Economic Cooperation and Development has bewildered many observers, Reinicke argues that the coming to office of an outsider provides a unique opportunity to push for reforms in German development cooperation that are long overdue. In particular, Reinicke calls for more coherence in German foreign policy, with the objective to ensure that development policy, international security policy and foreign economic policy are aligned and do not work at cross-purposes. That requires closer cooperation between the various Ministries that are frequently locked into bureaucratic turf battles.
In addition, Reinicke points to the importance of human rights as the normative basis for German development cooperation. In that context, he writes that it is crucial to be realistic about the potential of development cooperation to instil political change in developing countries. Development cooperation is often viewed as a political "carrot" that can be used effectively to foster positive political reform. In practice, according to Reinicke, that formula often does not work. Germany should cease cooperation with governments of countries that do not respect fundamental human rights.
Reinicke also warns that throwing more money at international development will not be the silver bullet for the massive challenges the international community is confronted with. Additional resources are crucial where they can be spent wisely. However, forcing an arbitrary numerical target on development cooperation (such as the commitment to increase development assistance to 0.7% of GDP) without ensuring that additional funds can be allocated in productive ways simply fosters corruption and results in massive waste.
Finally, Reinicke makes the case for a comprehensive reform of the institutional setup of German development cooperation. Currently, dozens of organizations are mandated to implement German ODA-Euros programmed by the German Ministry for Economic Cooperation and Development (BMZ). The existing system is marked by gross inefficiencies. In particular, Reinicke renews the long-standing call to break down the artificial barriers between financial and technical cooperation (currently organized in two competing organizations, the GTZ and the Kreditanstalt für Wiederaufbau). Any reform, Reinicke posits, should also include a strengthening of the BMZ's ability to plan and manage German development cooperation, especially at the country-level.
The article is available in German and can be viewed here.