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Making Global Partnership Work

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Abstract

Sustainable development requires a global partnership, the topic of SDG 17; but how can partnership work within economic structures characterized by deep-rooted imbalances? Global partnership can only be achieved through negotiations and dialogue; however, different stakeholders have very unequal political and economic powers. Re-balancing the negotiating powers is a leading principle of a global partnership; ownership requires that developing countries should have a stronger voice than in the past and more policy space in development policies. In the case of trade, re-balancing requires developing countries to be allowed to protect their manufacturing sectors. The separation of development finance from the speculative financial markets would also help long-run investments in developing countries. Section 6.6 focuses on social protection systems and on the challenges of development with dignity.

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Notes

  1. 1.

    Vaggi (2016: 48) organizes the 17 goals and their targets into four clusters.

  2. 2.

    This goal seems to advocate major social and economic transformations, but the targets focus mainly on environmental issues: reduce food losses (target 12.3), public procurement strategies (12.7) and inefficient fossil fuel subsidies (12.c).

  3. 3.

    SDG 10 about reducing inequality represents a very important step forward with respect to MDGs.

  4. 4.

    Most of the targets of the first 16 goals have to do with negotiations and require a dialogue among all the stakeholders.

  5. 5.

    The last of the Millennium Goals, number 8, had a similar theme.

  6. 6.

    Some developing countries are undertaking experiments of devolution, but it is hard to imagine how they could skip the policies of the central government.

  7. 7.

    On the BRICS development bank see Griffith-Jones (2014). Agenda 2030 emphasizes Public, Private Partnership, PPP; the collaboration between the public and private sectors and the civil society organizations (UN 2015: 10–11). The World Bank Doing Business reports emphasize the role of the private sector in fostering economic growth and development.

  8. 8.

    The need for countervailing forces and a balance of power is found in Atkinson (2015: 123–125, 131, 237). Rodrik asks for a rebalancing of globalization (Rodrik 2017a).

  9. 9.

    The need for the policy space of developing countries is found in target 17.15 (UN 2015: 27). The UNCTAD (2014) Trade and Development Report is entirely dedicated to the problem of policy space.

  10. 10.

    Most SDGs depend on choices about technology , which are interconnected with decisions about trade and finance.

  11. 11.

    The fiscal system is an important dimension of the policy space (UNCTAD 2014: 161–162; Mackie and Williams 2015: 7).

  12. 12.

    The support of manufacturing has been widely adopted in the past in all OECD countries (Chang 2002). Rodrik (2008) discusses the role of industrial policies in a world in which ‘late comers’ developing countries also face the growing powers of Asian economies and of China in particular.

  13. 13.

    EBA provided for duty and quota-free access to EU markets for the products—except arms and ammunitions—of the Least Developed Countries (LDCs), most of which are in Sub-Saharan Africa (Vaggi and Evans 2007). This is an example of Special and Differential Treatment.

  14. 14.

    The impact of more trade openness on economic growth depends on the elasticity of demand of both imports and exports (Thirlwall 2013: 9).

  15. 15.

    On the different types of finance for the different development goals, see Kharas et al. (2014: 7) and the 2014 UN Report (UN-ICESDF 2014: 8, 18). A longer analysis of development finance is found in (Vaggi 2018: Sects. 5 and 6).

  16. 16.

    In 1997–1998 the depreciation of the South Korean won worked well because the export composition of the country was fit to take advantage of its competitiveness (see Sect. 3.2).

  17. 17.

    On the importance of the productive structure in the classification of developing countries , Tezanos and Sumner (2013: 1733, 1737–1738).

  18. 18.

    Resource-poor countries receive very little FDIs and often remittances compensate for the negative current accounts (Vaggi and Capelli 2016). In many resource-rich countries, FDIs generate profit repatriation, which has a negative impact on the current account (ibid.).

  19. 19.

    In early 2014, when the US Federal Reserve announced an increase in interest rates , ‘tapering’, Ghana, Kenya, Tanzania and Ethiopia had either to delay or to cancel some issuances because of expectations about interest rate increases. Simulations suggest a 0.8% negative impact of ‘tapering’ on GDP growth in SSA (ERD 2015: 139).

  20. 20.

    There is a considerable body of literature which shows that the impact of FDI and portfolio flows on growth is dubious (Te Velde 2014: 4).

  21. 21.

    Indexed bonds can also produce significantly positive welfare effects, mainly by reducing default risks (Barr et al. 2014).

  22. 22.

    GDP indexed bonds have been indicated as a tool for restructuring the Greek debt (Goodhart 2015).

  23. 23.

    There are a number of reasons why investors might not like to buy indexed bonds (Griffith Jones and Sharma 2006).

  24. 24.

    In the December 2015 version of the same document, indicator 10.5.1 stated: ‘Adoption of a financial transaction tax (Tobin tax) at the global level’. An asterisk pointed out that the final text had not yet been agreed.

  25. 25.

    Target 8.D of the Millenium Goals was more detailed on the issue of debt sustainability. On the improvement of the processes of debt restructuring, see IMF (2014: 4–5).

  26. 26.

    A softened version of the rule came into effect on 21 July 2015. On the difficulty of taming finance, see UNCTAD (2017: 157–159). A more limited financial sector could provide services more effectively directed at the real economy and at sustaining the real needs of households and firms (Kay 2015). This is all the more so in the case of long-term development finance .

  27. 27.

    A comprehensive system of social protection is already part of the commitment of the UN member states (Eurodad-Ibis 2015: 6). On the role of welfare systems in development, see Zupi (2015: 7, 19).

  28. 28.

    The need for better sets of data for development is found in target 17.18 and in point 48 of Agenda 2030 (UN 2015: 12); see also Sachs (2015).

  29. 29.

    UNCTAD asks for a global new deal on development (UNCTAD 2017: 152).

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Authors and Affiliations

  1. Department of Economics and Business, University of Pavia, Pavia, Italy

    Gianni Vaggi

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  1. Gianni Vaggi
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Vaggi, G. (2018). Making Global Partnership Work. In: Development. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-54879-1_6

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  • DOI: https://doi.org/10.1007/978-3-319-54879-1_6

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