Emerging economies are becoming increasingly important providers of development cooperation to other developing countries. Their contributions to development are well-rooted in their own historical experiences of international cooperation, and inspired by broader economic and political linkages and cooperation rather than an aid-based donor–recipient model. The strength of the economic and political relationships developed during the past two decades and the increase of emerging-developing country flows is new.
As this development cooperation changes the development landscape, it has the potential to challenge or complement official development assistance (ODA) from OECD DAC donors.
But better information on this development engagement is needed. Current data sources outlined here are at best difficult to access and at worst non-existent. Developing country partners will only be able to gain the maximum benefit from these expanding flows with high quality information on them, enabling them to fully support the post-2015 agenda of the broader international community.
We recommend that improving the transparency of and increasing information on development cooperation from these providers is vital to allow these governments, their partners and the broader international community to make the most of these expanding contributions and support the post-2015 development agenda.
- Non-DAC development cooperation is on the rise: it increased fourfold between 2000 and 2011, while DAC ODA doubled.
- Larger providers focus on neighbours or countries of strategic importance: available data suggest that larger providers focus on neighbouring or strategic countries and poverty is not a key driver for allocation.
- The composition of development cooperation changes according to the provider: most providers give few details on the exact composition of their development finance flows (with notable exceptions of the United Arab Emirates and Brazil)
- Transparency is essential to have greater impact: transparency is a precondition for good and effective development cooperation.
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