Presentation by Costa Rican speakers

Costa Rica: Official Development Assistance (ODA) and Middle

Income Countries, comprehensive elements.

High Level Conference of Middle-Income Countries

1st Consultative Meeting

Working Group on Overall Concepts Definition

05-06 February 2013, Vienna International Center.

International Cooperation Unit

Structure• I Classification criteria for recipients of

official development assistance. • II Costa Rica: Evolution of official

development assistance• III Costa Rica and South – South /

Triangular Cooperation• IV Conclusions


I Classification criteria for

recipients official development assistance.



Classification criteria for the assignment of ODA

• Development Assitance Comittee (DAC)-OCDE, by income level

• World Bank, by income level• UNDP- countries stratified by level of human development

(HDI)• The World Bank has used an alternative criteria for the

classification of middle income countries, related to their access to official financing provided (loans)

• Fragile and post conflict countries (states in a deteriorating situation, with slowed development, post-conflict transition and early recovery) and that do not respond well to traditional assistance strategies.

II Costa Rica: Evolution of

official development assistance


COUNTRIES PARTICIPATION IN TOTAL FLOWS OF OFFICIAL DEVELOPMENT ASSISTANCE’S, ACCORDING TO INCOME CATEGORY,

1990-2010 (IN PERCENTAGES).

In 2010 middle income and in development countries received over 65% of total flows of ODA

Source: Comisión Económica para América Latina y el Caribe (CEPAL), sobre la base de información de la Organización de Cooperación y Desarrollo Económicos (OCDE).


Latin America and the Caribbean is predominantly a middle income region; 85% of its countries fall in this

category.

PERCENTAGE OF THE REGION’S COUNSTRIES THAT ARE CLASSIFIED AS MIDDLE INCOME COUNTRIES

Only 5 of the region’s 35 countries are not classified as middle income countries: 1 is classified as low income, and 4 are classified as high income.

Source: Comisión Económica para América Latina y el Caribe (CEPAL), sobre la base de la última clasificación disponible del Banco Mundial.


Loss of participation in ODA flows

REGIONS PARTICIPATION IN ODA ODA FOR LATIN AMERICA AND THE CARIBBEAN.

In the sixties, the region received a 14% of the total of ODA destined to developing countries, nowadays it’s about 8%.

The region’s ODA went from representing over 1% of the decade’s INB in the sixties to a 0,22% nowadays

Source: Comisión Económica para América Latina y el Caribe (CEPAL), sobre la base de información de la Organización de Cooperación y Desarrollo Económicos (OCDE).


287,6

250,0

179,0

153,9

73,1

53,2

81,5

8,6

78,2 72,251,3

43,346,3

91,8 83,162,3

55,6

179,8

81,688,3

144,2

101,4

0

50

100

150

200

250

300

350

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

COSTA RICA: NON REFUNDABLE COOPERATION’S TENDENCY, 1990-2011.

Source: Área de Cooperación Internacional-MIDEPLAN. 2012.

The trend of non refundable cooperation, technical and grant aid, has mantained itself in a constant decrease since 1990.


Origin and distribution of international cooperation in Costa Rica, 2006-2011

18%

82%

Cooperación Técnica y Financiera no Reembolsable

Cooperación Financiera Reembolsable

20,5

79,5

Bilateral Multilateral


CR: distribution by sectors and/or development areas


CR: Main inputs for technical cooperation and grant aid, 2006-2011.

1. The Popular Republic of China was Costa Rica’s main donor with US$140,0 million,

2. Spain (inluiding Andalusia) US$83,4 million, 3. UNDP US$69,7 million4. United States of America US$65,2 million5. Japan US$63,7 million6. Germany US$63,3 million7. BID US$ 40,5 million8. European Union US$31,1 million


III Costa Rica and South – South

/ Triangular Cooperation


Costa Rica’s Técnica Cooperation Offer

Triangulation ProgramCosta Rica - Spanish Agency for International Cooperation

for Development (AECID)

Triangulation Fund Costa Rica-Germany

http://es.wikipedia.org/wiki/Archivo:Flag_of_Costa_Rica_(state).svg

http://es.wikipedia.org/wiki/Archivo:Flag_of_Germany_(state).svg

IV Conclusiones:

Preliminary considerationsStrengths

OpportunitiesWeaknesses

Threats


The gaze focused on per capita income does not include the broad and

multifacetic nature of the development process

• No income level can be assimilated with level of development

• Middle income countries are a very heterogeneous group in terms of poverty, social inclusion and productive, institutional and financial capacity.


It is necessary to review the logic governing the international

cooperation agenda:

•A new approach that allows refine the look of development

•An approach based on a new consensus

•Without excluding anyone from the development


In collaboration with other international and regional organizations, should develop a broader set of indicators that reflect the reality of each country and to detect their main needs, so that the average income cireteria ceases to be an impediment to a priori participate in official development assistance (ODA).


To achieve development is necessary to overcome more than one gap…

There are structural development gaps that must be taken into account in addition to the concept of vulnerability and income per capita.

Structural gaps reflect obstacles to development and long-term structural challenges that still exist in the countries of the region.

Per capita incomeinequalitypoverty

Investment and savingProductivity and

Innovationinfrastructure

EducationHealth

taxationGender, andenvironment

Respect for democracy, human rights, and fighting corrpution


EXPANDING POLITICAL DIALOGUE IN THREE

• Global level – Defining the framework of inclusive development agenda

– Enlarge multilateral dialogue in the field of development finance: funding sources and allocation criteria

• Regional level: – Deepening regional integration– Increased participation of the region in global governance

• National level: – Prioritization of gaps– Inclusive dialogue with civil society actors and the private

sector


MICS and ODA: Strengths, weaknesses, obstacles and threats

Strenghts:• More than half of the

countries in the world belong to the middle-income category, and this group is home to more than 70% of the world population.

• They are in all regions of the world and especially in LAC.

• Overall country, especially the upper middle income, who have a solid institutional base rule of law and long-standing, essential to the effectiveness of the ODA.

• Weight in the world economy, and in key areas such as global public goods. Potential to benefit the rest of the countries and underpin the work aimed at achieving global peace and stability.

• The creation and transmission of knowledge and the development cooperation aimed at middle-income countries can lead to significant positive externalities.


The MICS, but particularly HMICs, are those with the best foundation to implement the principles of "efficiency and

quality of aid" Statements approved by Rome, Marrakech and Paris.

o They favor the identification and deepening of common interests between MICs;oThey open areas of collaboration with high-income countriesoThey stimulate the growing expectations of the CI of PRBs.

oIn political terms, they can be key pieces when their commitments associated with the SSC with the need for their participation and influence in global politics of development cooperation.


• Weaknesses, threats and obstacles:

• By 2008 the number of poor totaled 957 million, of which 72% lived in middle-income countries.

• Countries with higher incomes may have significant pockets of poverty more than those of lower income.

• In fact, considering the total number of poor, almost 50% of the 183.5 million poor in Latin America live in just two countries: Brazil (26%) and Mexico (23%), both classified as income medium-high.

• Both middle-income countries such as the high-income levels in Latin America can be found at both ends of the spectrum of inequality.

• For example, in the case of Costa Rica upper middle income country with a GDP per capita of USD USD 8,876,6 (2011), with a life expectancy at birth of 79.3 years, with a 69 in the HDI (2011), has a Gini index of 5.7.

• Some of these countries also have a tax burden insufficient to meet the demand development investments, CR has a tax burden of 13.3% to 2011.

• CR: extreme poverty, 6.4%, 15.2% non-extreme poverty

• Insufficient investment in R & D and human capitalPaíses vulnerables:Países vulnerables:

•Ante fenómenos antrópicos (desastres naturales, crísis financieras, etc.)

•Por creciente desigualdad


Cumplimiento cantonal del Objetivo 7:Garantizar la sostenibilidad del medio ambiente

En el 42% de los cantones se espera que se alcance la meta para el 2015, abrigando el 49,6% de la población del país

Escala de cumplimiento 0%-59%

60%-79% 80%-100%

Temas considerados:

•Población que utiliza fuentes de abastecimiento de agua potable mejoradas

•Población que utiliza servicios de saneamiento mejorados

•Población urbana que vive en barrios de tugurios

•Viviendas en mal estado, regular, con hacinamiento

•Población en vivienda propia

Temas considerados:

•Población que utiliza fuentes de abastecimiento de agua potable mejoradas

•Población que utiliza servicios de saneamiento mejorados

•Población urbana que vive en barrios de tugurios

•Viviendas en mal estado, regular, con hacinamiento

•Población en vivienda propia

Harmonize

The chances of being a "rising economy, or pop, or in progress" that enables him to direct their cooperation to other

Receivers of cooperation in terms of certain weaknesses in the institutional processes and incomplete socioeconomic and social cohesion issues.

Dual role of HMICs


www.mideplan.go.cr


http://www.mideplan.go.cr/

Presentation by Costa Rican speakers

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