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2023 | OriginalPaper | Chapter

26. Innovating International Cooperation for Development: A New Model for Partnerships Between Developed and Middle-Income Countries

Authors : José Antonio Zabalgoitia, Antonio Tenorio

Published in: The Palgrave Handbook of Diplomatic Reform and Innovation

Publisher: Springer International Publishing

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Abstract

Official development assistance (ODA) has experienced profound changes during the past two decades. These factors are signs that the traditional development assistance model is reaching its limits. The increasing number of middle-income countries is undoubtedly the result of their relative success and advances in their own development processes, but at the same time, it makes competition among them to obtain scarce ODA and other resources much more intense. This chapter analyzes how middle-income country diplomacy needs to be sufficiently creative and persuasive so as to attract interest in the projects of potential partners without their perceiving it either as a traditional aid request or as a mere business opportunity to sell technology. In this task, diplomats’ understanding of their own country’s strengths and resources, as well as being able to relay the shortcomings that potential partnerships may help to solve, is essential.

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Footnotes
1
The Millennium Declaration dedicates its third section to “Development and Poverty Eradication.” It categorically commits to “spare no effort to free our fellow men, women and children from the abject and dehumanizing conditions of extreme poverty” and to create an environment conducive to its elimination. It specifically focuses on Least Developed countries, rewarding those who make demonstrable commitments to poverty reduction with debt relief, and calling donors “To grant more generous development assistance, especially to countries that are genuinely making an effort to apply their resources to poverty reduction.”
 
2
The World Bank income classification categories are followed here as applied by the OECD in its Development Assistance Committee’s List of ODA Recipients for 2022 and 2023.
 
3
According to OECD’s DAC official ODA statistics, donors are still very far from achieving the UN benchmark of allocating 0.7 percent of Gross National Income (GNI) to foreign aid. DAC members donated an average of 0.33 percent of GDI in 2021. Despite that, total ODA to developing countries has grown since 2006.
 
4
Brazil, China, India, Mexico, Nigeria, South Africa, and Turkey.
 
5
To illustrate the magnitude of the challenge posed by poverty, we will rely on the U.S. Dollar $5.50/day (Purchasing Power Parity in 2011) threshold established by the World Bank poverty calculator on October 2017 based on poverty lines from upper middle-income economies. For India and Nigeria, the corresponding U.S. Dollar $3.20/day is applied (WBG 2022b).
 
6
The Gini index compares the degree in which an actual income distribution between individuals in an economy deviates from a theoretical perfect distribution curve for that economy. Perfect distribution is represented by “0” and total inequality is represented by “100.” The higher the index figure, the more unequal is a country (WBG 2022c).
 
7
Of the different alternatives provided by these authors, we have chosen the indicator built by combining Gross Fixed Capital Formation and Private Participation in Infrastructure data.
 
8
The ranking considers the number of engineering graduates per 10,000 inhabitants.
 
9
See Annex 1 for the list of Fortune 500 Companies incorporated in sample of seven middle-income countries.
 
10
Ibid.
 
Literature
go back to reference Alonso, J.A. 2013. Cooperación con países de renta media: un enfoque basado en incentivos. Madrid: AECID, Documentos de Trabajo No. 1. Alonso, J.A. 2013. Cooperación con países de renta media: un enfoque basado en incentivos. Madrid: AECID, Documentos de Trabajo No. 1.
go back to reference Dutta, S., et al. 2021. Global Innovation Index 2021; Tracking Innovation Through the COVID 19 Crisis. Geneva: World Intellectual Property Organization and Portulans Institute. Dutta, S., et al. 2021. Global Innovation Index 2021; Tracking Innovation Through the COVID 19 Crisis. Geneva: World Intellectual Property Organization and Portulans Institute.
go back to reference Etzkowitz, H. 2008. The Triple Helix: University-Industry-Government Innovation in Action. London and New York: Routledge.CrossRef Etzkowitz, H. 2008. The Triple Helix: University-Industry-Government Innovation in Action. London and New York: Routledge.CrossRef
go back to reference Fay, M., et al. 2019. Hitting the Trillion Mark; a Look at How Much Countries Are Spending on Infrastructure. Washington, D.C.: World Bank Group, Sustainable Development Practice Group, Policy Research Working Paper 8730. Fay, M., et al. 2019. Hitting the Trillion Mark; a Look at How Much Countries Are Spending on Infrastructure. Washington, D.C.: World Bank Group, Sustainable Development Practice Group, Policy Research Working Paper 8730.
go back to reference OECD Secretariat. 2001. Is It ODA? Paris: Official Document DCD/DAC/STAT. OECD Secretariat. 2001. Is It ODA? Paris: Official Document DCD/DAC/STAT.
Metadata
Title
Innovating International Cooperation for Development: A New Model for Partnerships Between Developed and Middle-Income Countries
Authors
José Antonio Zabalgoitia
Antonio Tenorio
Copyright Year
2023
DOI
https://doi.org/10.1007/978-3-031-10971-3_26