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South-South and Trilateral Cooperation 1 South-South and Trilateral Cooperation 1

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Content 1. China and South-South Cooperation 2. South-South Research Cooperation 3. UNDP experiences working Content 1. China and South-South Cooperation 2. South-South Research Cooperation 3. UNDP experiences working with China on Trilateral Cooperation 3

1. China and South Cooperation Geographical Distribution of China’s Foreign Assistance Funds, 2010— 2012 1. China and South Cooperation Geographical Distribution of China’s Foreign Assistance Funds, 2010— 2012 Distribution of China’s Foreign Assistance Funds according to Projected Fields 2010— 2012 4

China and South Cooperation Bilateral channels 1. 2. 3. 4. 5. 6. 7. 8. China and South Cooperation Bilateral channels 1. 2. 3. 4. 5. 6. 7. 8. Complete projects (mainly infrastructure projects); goods and materials; technical cooperation; human resource development cooperation; medical teams; emergency humanitarian aid; overseas volunteer programmes debt relief. Recent announcements & trends q Strengthening linkages to SDGs q Increasingly detailed foreign assistance priorities q The “Belt and Road” initiative shapes much of China’s foreign engagements q Announcements q q q q US$ 100 mil. UN South-South Cooperation Aid Fund & South-South Climate Cooperation Fund Increase investment in the LDCs Increasing trade facilitation and industrialization support The “Six 100 s” initiative, 100 wildlife projects, 200 Happy Life Projects China-UN Peace and Development Fund Launch a Center for International Knowledge on Development and South Academy q MOFCOM q Establish program management mechanism and regulate project process q Build a project database system, connect with provincial-level departments in charge of commerce q Formulate mid- to long-term policy guidelines on Chinese foreign aid in 2015 5

“Belt and Road” Initiative and UNDP involvement • The “Belt and Road” initiative has “Belt and Road” Initiative and UNDP involvement • The “Belt and Road” initiative has two components: the “Silk Road Economic Belt” and the “ 21 st Century Maritime Silk Road”, covering not only the entire Central Asia but also Europe • Could serve as a powerful platform for economic growth and regional cooperation, involving more than 4 billion people living in 60 Eurasian and African countries • Potential areas to consider for dialogue, research or cooperation: • Practical project support • Social and Environmental Standards for infrastructure investments • Greening the Belt and Road • Sustainable business investments • Sustainable Urbanization • Enhancing cross-border cooperation • Disaster Risk Reduction 6

UNDPs Support Roles and Functions Development Needs Strategy 2017 Status Increase of multilateralism Increase UNDPs Support Roles and Functions Development Needs Strategy 2017 Status Increase of multilateralism Increase international cooperation Stronger alignment with the SDGs 7

South Research Cooperation With the Chinese Academy of International Trade and Economic Cooperation • South Research Cooperation With the Chinese Academy of International Trade and Economic Cooperation • E-book on the role of CSOs in foreign aid delivery; • Report on evaluation approaches of DAC and SSC providers; • Country strategies experience-sharing workshop • Report on development needs of Pacific island countries • Report on development cooperation modalities of DAC and SSC providers • Workshop on SSC providers and SDG 17 With the Department of Foreign Assistance of MOFCOM • Case studies on China’s agricultural aid projects in Mozambique and Guinea-Bissau Memoranda of Understanding (MOUs) signed with the Center for New Structural Economics and the National School of Development of Peking University 9

3. South-South Research Cooperation 2017 Poverty and Inequality Human Development Reports & SDGs Support 3. South-South Research Cooperation 2017 Poverty and Inequality Human Development Reports & SDGs Support • Finance for poverty alleviation/human development in China w NIFD § Belt and Road Initiative Report, along with CIKD and Si. LKS cooperation § SDG 17 Mapping § 2017/18 National Human Development Report, subnational Human Development Report § Sichuan City Sustainable Development Report 2017 as pipeline § Case study on Chinese Agricultural Aid in Africa § Communicate Development to Domestic Audience § Demand-Driven Data Report on reported Chinese Development aid in 2 nd GPEDC Effectiveness § Provincial Climate Public Expenditure Institutional & Finance Review § Mapping of blended financing instruments in China Sustainable Business Abroad Green Development • 2016 Report on Sustainable Development of Chinese Enterprises Overseas as pipeline MIAI SEZ analysis • China Green Buildings Development Report – Better Building for Better Life • China smart and green transportation development report as pipeline • South-South Cooperation • • • China’s South-South Cooperation with Pacific Island Countries under the SDGs Inclusive growth for BRICS II/Oxfam & BNU China-Africa capacity cooperation case analysis Ne. ST SSC assessment Tanzania Ne. ST Case Studies as pipeline Trilateral cooperation: lessons learnt and operational guidance 10

South-South Discussion Paper - To share experience and perspectives of SS&TC - To stimulate South-South Discussion Paper - To share experience and perspectives of SS&TC - To stimulate discussion based on practical lessons learned and development partner perspectives - To drive progress and development of SS&TC forward 11

Main trends and Tendencies for China include: • increasingly open to international cooperation and Main trends and Tendencies for China include: • increasingly open to international cooperation and multilateralism • Examples include: • • AIIB NDB, the South-South Cooperation Assistance Fund South-South Climate Change Fund • using multilateral approaches to tackling global and regional development challenges • Convening power, and strong country networks • Increasing financial support to UN Agencies 12

In China, Trilateral Cooperation supports • SSC partners to establish mechanisms for engagement • In China, Trilateral Cooperation supports • SSC partners to establish mechanisms for engagement • Increases effectiveness of South-South cooperation • Creates a learning platform for China and partners for improved SSC • China’s image as a responsible and cooperative partner • Upscaling, de-risking and a way to leverage initiatives 13

Key pointers for establishing partnerships with China What is China looking for? § § Key pointers for establishing partnerships with China What is China looking for? § § Gain experience Complement hard-ware approaches Visibility and image / multilateralism Increasing volume of support What are important elements for successful initiatives § Concrete yet impactful projects § Clearly demonstrate country and partner/UNDP added value § Consider where possible a role for China beyond financing (domestic expertise, knowledge sharing, research, private sector) § Quick idea development and pipeline management § Communication (English, Chinese) and relationship management (Chinese Embassies, ECCs, Beijing) Consider all partnership options available § § Full financing options may emerge, donors an alternative option Co-financing seen as country/UNDP buy-in (examples of GEF-like co-financing so far accepted) Tied financing (equipment, training) Complementary elements to China’s bilateral cooperation (social/env standards, community involvement, stakeholder involvement, de-risking, etc) 14

Three main models of trilateral cooperation Trilateral Cooperation 15 Three main models of trilateral cooperation Trilateral Cooperation 15

Who are the main players? • Ministry of Commerce (MOFCOM) • Department of International Who are the main players? • Ministry of Commerce (MOFCOM) • Department of International Trade and Economic Affairs • Department of Foreign Assistance • National Development and Reform Commission (NDRC) • Ministry of Foreign Affairs (MOFA) • Line Ministries • Ministry of Civil Affairs (Disaster Risk Reduction/Management) • Ministry of Science and Technology (Renewable Energy) • Ministry of Agriculture 16

3. UNDP’s Trilateral Cooperation with China Increasing trilateral partnership opportunities Evolved into full project 3. UNDP’s Trilateral Cooperation with China Increasing trilateral partnership opportunities Evolved into full project 2013 -15 (Cambodia) Increasing interest from other ministries (MOCA, MOST 2012 -2013) Increasing appetite from MOFCOM DITEA and DFA (2014 - ) 65 project proposals submitted in 2016 Started with an initial training 2011/12 (Cambodia) 17

Trilateral Cooperation with donor financing Ongoing: • Nepal and Bangladesh I and II • Trilateral Cooperation with donor financing Ongoing: • Nepal and Bangladesh I and II • Ghana and Zambia Country Sector Financing Status USD Bangladesh & Nepal Phase 1 Disaster Risk Reduction DFID Completed 4, 200, 000 Bangladesh & Nepal Phase 2 Disaster Risk Reduction DFID Commenced (2015 -2017) 6, 100, 000 Ghana & Zambia Renewable Energy Denmark Commenced (2014 -2018) 5, 300, 000 Opportunities • Strong interest in working with China under a SSC partnership 18

Trilateral Cooperation with China financing Ongoing: Country Sector Financing Status USD Cambodia Agro-Business DITEA Trilateral Cooperation with China financing Ongoing: Country Sector Financing Status USD Cambodia Agro-Business DITEA Completed 400, 000 Malawi Disaster risk reduction DITEA Commenced (2016 -2017) 900, 000 (500, 000 MOFCOM) Sri Lanka Biogas and Solar (RE) DITEA Full Project Document under review 1, 000 MOFCOM 1, 000 CO Ethiopia Biogas and Solar (RE) DITEA Full Project Document under review 1, 000 MOFCOM 1, 000 CO Pipeline: 19

Part of larger Chinese program or announcement Opportunities: • MOFCOM (DFA / DITEA / Part of larger Chinese program or announcement Opportunities: • MOFCOM (DFA / DITEA / South Aid Fund($2 Bn) • Equipment/parallel implementation • NDRC –South Climate Fund ($3. 2 Bn) • Equipment • Training • MOFA (Peace and Development Fund) • Other announcements (FOCAC, UNGA, COP 21) • 600 projects • 100 wildlife/etc projects • 200 happy life projects • Range of training opportunities • China-Africa Production Capacity Support 20

Emerging China Financed TRCs Projects with UNDP Countries No. of Projects Sectors Status Projects Emerging China Financed TRCs Projects with UNDP Countries No. of Projects Sectors Status Projects size USD Fiji, Kenya, Bangladesh 3 Community Solar systems (RE), Bamboo and Rattan (NRM), Resilient Housing (DRM) MOFCOM/DFA 3, 000 Albania, Azerbaijina, Cambodia, Maldives, Mozambique, Tanzania 6 PS use of Solar PV systems (RE), Energy Efficiency in Port (RE), Strengthening education syst. Disaster risk reduction Wildlife Protection DFA/SSTF 11, 800, 000 Afghanistan Bangladesh Cambodia Laos Myanmar Nepal 10 Climate Change Induced Disaster Risk Management Agriculture and Renewable Energy , Public Administration Reform, Drinking water, Disaster Management , Professional Skills Training and Capacity Development for investment , Energy Access, Gender and Poverty Alleviation MOFA/PDF 21, 300, 000 Sri Lanka, Ethiopia 2 Renewable Energy transfer for agriculture (biogas/SPV) MOFCOM/DITEA 4, 000 (2 m cofinance) Afghanistan, Bangladesh, Myanmar, Indonesia, Nepal, Philipines, Pakistan, and Sri Lanka 18 Job Creation, cross border business-2 -business, livelihoods, renewable Energy, poverty reduction, water management, solid waste Belt and Road Initiative (MOFCOM/DFA) Approx 36, 000 Ecuador, Jamaica, Guinea, Zimbabwe, Tanzania, Seychelles, Sri Lanka, Bangladesh, Mongolia 9 Renewable Energy Technology Transfer NDRC/SSCCCF 27, 000 21

Trilateral Cooperation Project in Ghana/Zambia • Aimed at increasing access to energy for the Trilateral Cooperation Project in Ghana/Zambia • Aimed at increasing access to energy for the rural poor in Ghana and Zambia in cooperation with China (started 2015) • Key for Chinese renewable energy technologies to be deployed to optimally respond to priorities and needs in the two countries. • Denmark provided funding, technical know-how and strong Ministerial buy-in • China’s Ministry of Science and Technology playing a key role in facilitating knowledge exchange while building SSC capacity. 22

Ghana Zambia China Renewable Energy Technology Transfer Project • China support to Ghana • Ghana Zambia China Renewable Energy Technology Transfer Project • China support to Ghana • Criteria for technology selection – which technologies are good for Ghana • Develop business models for demonstration centres • Renewable Energy Master Plan • Technical Skills training in Zambia • Zambia relies on foreign capacity to do preparatory work for mini-hydro construction • ICSHP and KGRTC enter Mo. U • As part of the process of constructing a MH, KGRTC will learn how to conduct site selection and participate in feasibility study 23

Common Issues and Challenges • cultural differences complicates communication and planning • Language barriers, Common Issues and Challenges • cultural differences complicates communication and planning • Language barriers, time zones, national holidays and bureaucratic processes delay implementation • Lack budget for building cultural understanding and exchange • Limited budget for face-2 -face coordination for IPs • trainings and courses are assumed to develop capacity • Quality of training and preparedness of beneficiaries • Lack of mechanisms to ensure 1) inclusive, participatory and demand driven approaches • How to package and deliver “development experience” 21

Lessons learnt • Cultural differences complicates communication and planning • Time and patience is Lessons learnt • Cultural differences complicates communication and planning • Time and patience is required for preparation of activities incl. capacity development (workshop, study tour, field visit, TORs, demosites) • Managing expectations of donors, implementing partners requires understanding of the complexities of TRCs • Stakeholders must use opportunities that arise through TC platforms to improve SSC: (inclusive, participatory, capacity development) • Transaction costs are higher than “normal” 21

Questions for Discussion • Does a transfer of knowledge, experience and technology actually take Questions for Discussion • Does a transfer of knowledge, experience and technology actually take place in SS/TC projects? • How can transfer of technology and knowledge be sustainable and avoid being “just” one-off grants and donations • To what extent are increased transaction costs justified in terms of positive impact for beneficiaries? 21

谢谢 - Thanks 27 谢谢 - Thanks 27