Transcript
A (0:07)
Hello and welcome again to the CGD podcast with me, Rajesh Merchandani. My guest today sits on the President's Global Development Council, which is supposed to advise the administration on how best to do development. And he's one of the authors of its annual report, which has just been published. John Norris, also from the Centre for American Progress. Welcome.
B (0:28)
Thanks for having me.
A (0:29)
There's an obvious theme running through this report which I have right here. Engaging the private sector in development. Why is that so important?
B (0:38)
You know, I think that the evidence at this point is pretty overwhelming that ODA alone is not going to lift everyone out of extreme poverty and get us where we want to be in development.
A (0:48)
This is traditional aid.
B (0:49)
Yeah. And I think traditional aid still has a very central part in development and I think it still has really important catalytic role to play in a lot of places. But I think that the enormous resources the private sector to bear brings to bear has been grossly underutilized. And I think the thrust of our recommendations is trying to improve ways that the U.S. government and others can help lead and really use what is the largest channel of finance to transform developing economies.
A (1:18)
And a focal point for the idea of development finance, of course, is the Addis Conference, which is happening in less than two months time now. What do you think is going to come out of that? Do you think governments that take part are actually going to bring deliverable commitments? Is the US Government going to bring a deliverable commitment or is it just going to talk about the importance of engaging the private sector?
B (1:41)
You know, I think it's some of both. I think it's really unique moment for development, for finance, because you've got this major Financing for Development conference at the same time as the Sustainable Development Goals are reaching something of a crescendo as you've got climate negotiations nearing their hopeful conclusion General assembly in September. It's a very crowded docket internationally right now. But along with that emphasis on encouraging private finance is a recognition that there's a lot more partners around the table, that it's private sector, it's philanthropy, it's governments, it's NGOs, it's civil society in developing countries, it's developing country governments themselves. And I think that means that to really do things that are effective, we're getting a little bit away from the traditional all government deliverable of showing up. We pledge to do X or Y government, X or Y over a period of time. It means more actors agreeing to do more things and having some shared sense of responsibility. So I think if we look at Addis, I think we'll see things like a strong emphasis on domestic resource mobilization. The Africans have made clear that's a real priority for them, recognizing that they need to do a better job getting a handle on revenue to drive their own development, but also in partnership with the traditional Global north. And I think partnering things like domestic resource mobilization with a commitment to combat illicit financial flows and tax avoidance by international corporations, I think that shows that putting an emphasis on something like DRM isn't just the developed world telling the developing world to kind of pull up its bootstraps, that you need to work harder, you need to raise more money, that we're getting out of official development assistance. Because that's not the case. I think it's more saying that we're willing to take steps. If you're willing to take steps, we can work together in partnership and we can bring a lot more people to the table. So I think Addis will probably feel a little bit different and probably substantially different. If you go all the way back to Monterey where you had things like the creation of the Money and Challenge Corporation and then PEPFAR not long afterwards. I don't think we're in the kind of budget environment where you're going to see that. We're certainly not in a legislative environment where you're going to see that. But I think you will see some real commitments by the US Government and others, and hopefully those commitments loop in as broad a cross section of other governments and other actors as possible.
