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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



                         International Cooperation Unit
I
Classification criteria for
    recipients official
development assistance.



               International Cooperation Unit
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.




                                    International Cooperation Unit
II
Costa Rica: Evolution of
 official development
       assistance




              International Cooperation Unit
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).




                                                                                                International Cooperation Unit
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.




                                                                                                    International Cooperation Unit
Loss of participation in ODA flows

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

                                In the sixties, the region received                                                          The region’s ODA went from
                                a 14% of the total of ODA                                                                    representing over 1% of the decade’s
                                destined to developing countries,                                                            INB in the sixties to a 0,22% nowadays
                                nowadays it’s about 8%.




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




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



350                                                                                                                                        The trend of non
                                                                                                                                           refundable
300       287,6                                                                                                                            cooperation,
                                                                                                                                           technical and
                250,0
250                                                                                                                                        grant aid, has
                                                                                                                                           mantained itself in
200
                      179,0                                                                                  179,8                         a constant
                           153,9                                                                                               144,2       decrease since
150
                                                                                                                                           1990.
100                                                                                    91,8 83,1
                                 73,1        81,5         78,2 72,2
                                                                                                   62,3                     88,3   101,4
                                                                      51,3                                           81,6
50
                                      53,2                                          46,3                  55,6
                                                                             43,3
                                                    8,6
  0
       1990 199 1 199 2 1993 1994 1995 1996 1997 1998 19 99 20 0 0 2 00 1 20 02 2 003 2004 2005 2006 2 00 7 200 8 200 9 2 010 20 11




      Source: Área de Cooperación Internacional-MIDEPLAN. 2012.




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


                                       18%




     82%
                                                                              20,5
 Cooperación Técnica y Financiera no Reembolsable

 Cooperación Financiera Reembolsable




                                                    79,5

                                                                           Bilateral   Multilateral




                                                           International Cooperation Unit
CR: distribution by sectors and/or development areas




                            International Cooperation Unit
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 million
4. United States of America US$65,2 million
5. Japan US$63,7 million
6. Germany US$63,3 million
7. BID US$ 40,5 million
8. European Union US$31,1 million



                                International Cooperation Unit
III
Costa Rica and South – South
  / Triangular Cooperation




               International Cooperation Unit
Costa Rica’s Técnica Cooperation Offer
Triangulation Program
Costa Rica - Spanish Agency for International Cooperation
                for Development (AECID)
Triangulation Fund Costa Rica-Germany
IV
    Conclusiones:

Preliminary considerations
        Strengths
      Opportunities
       Weaknesses
         Threats


              International Cooperation Unit
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.



                            International Cooperation Unit
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




                         International Cooperation Unit
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).



                      International Cooperation Unit
To achieve development is necessary to
          overcome more than one gap…
There are structural              Structural gaps reflect
development gaps that must be     obstacles to development and
taken into account in addition    long-term structural
to the concept of vulnerability   challenges that still exist in
and income per capita.            the countries of the region.

   Per capita income                     Education
       inequality                          Health
        poverty                           taxation
 Investment and saving                  Gender, and
    Productivity and                    environment
       Innovation
     infrastructure              Respect for democracy,
                                  human rights, and fighting
                                  corrpution


                                    International Cooperation Unit
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




                                       International Cooperation Unit
MICS and ODA: Strengths, weaknesses,
             obstacles and threats
Strenghts:                          • Weight in the world economy,
                                      and in key areas such as
• More than half of the               global public goods. Potential
  countries in the world belong       to benefit the rest of the
  to the middle-income                countries and underpin the
  category, and this group is         work aimed at achieving
  home to more than 70% of            global peace and stability.
  the world population.
                                    • The creation and transmission
• They are in all regions of the      of knowledge and the
  world and especially in LAC.        development cooperation
• Overall country, especially the     aimed at middle-income
  upper middle income, who            countries can lead to
  have a solid institutional base     significant positive
  rule of law and long-standing,      externalities.
  essential to the effectiveness
  of the ODA.




                                       International Cooperation Unit
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 countries
oThey 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.




                                        International Cooperation Unit
•   Weaknesses, threats and               •   Both middle-income countries
    obstacles:                                such as the high-income levels in
•   By 2008 the number of poor totaled        Latin America can be found at
    957 million, of which 72% lived in        both ends of the spectrum of
    middle-income countries.                  inequality.
•   Countries with higher incomes may     •   For example, in the case of Costa
    have significant pockets of poverty       Rica upper middle income country
    more than those of lower income.          with a GDP per capita of USD USD
                                              8,876,6 (2011), with a life
•   In fact, considering the total            expectancy at birth of 79.3 years,
    number of poor, almost 50% of the         with a 69 in the HDI (2011), has
    183.5 million poor in Latin America       a Gini index of 5.7.
    live in just two countries: Brazil
    (26%) and Mexico (23%), both          •   Some of these countries also have
    classified as income medium-high.         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
    Países vulnerables:                       and human capital
    •Ante fenómenos antrópicos
    (desastres naturales, crísis
    financieras, etc.)
    •Por creciente desigualdad


                                              International Cooperation Unit
Cumplimiento cantonal del Objetivo 7:
               Garantizar la sostenibilidad del medio ambiente

En el 42% de los cantones se               Escala de cumplimiento
espera que se alcance la meta                      0%-59%
                                                  60%-79%
para el 2015, abrigando el                        80%-100%
49,6% de la población del
país considerados:
Temas considerados:
 Temas

•Población que utiliza fuentes de
 •Población que utiliza fuentes de
abastecimiento de agua potable
 abastecimiento de agua potable
mejoradas
 mejoradas
•Población que utiliza servicios de
 •Población que utiliza servicios de
saneamiento mejorados
 saneamiento mejorados
•Población urbana que vive en
 •Población urbana que vive en
barrios de tugurios
 barrios de tugurios
•Viviendas en mal estado, regular,
 •Viviendas en mal estado, regular,
con hacinamiento
 con hacinamiento
•Población en vivienda propia
 •Población en vivienda propia
Dual role of HMICs



                      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.

                              International Cooperation Unit
www.mideplan.go.cr



          International Cooperation Unit

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Presentación vienna, 5 6 febrero 2013ingles

  • 1. 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
  • 2. 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 International Cooperation Unit
  • 3. I Classification criteria for recipients official development assistance. International Cooperation Unit
  • 4. 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. International Cooperation Unit
  • 5. II Costa Rica: Evolution of official development assistance International Cooperation Unit
  • 6. 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). International Cooperation Unit
  • 7. 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. International Cooperation Unit
  • 8. Loss of participation in ODA flows REGIONS PARTICIPATION IN ODA ODA FOR LATIN AMERICA AND THE CARIBBEAN. In the sixties, the region received The region’s ODA went from a 14% of the total of ODA representing over 1% of the decade’s destined to developing countries, INB in the sixties to a 0,22% nowadays nowadays it’s about 8%. Source: Comisión Económica para América Latina y el Caribe (CEPAL), sobre la base de información de la Organización de Cooperación y Desarrollo Económicos (OCDE). International Cooperation Unit
  • 9. COSTA RICA: NON REFUNDABLE COOPERATION’S TENDENCY, 1990-2011. 350 The trend of non refundable 300 287,6 cooperation, technical and 250,0 250 grant aid, has mantained itself in 200 179,0 179,8 a constant 153,9 144,2 decrease since 150 1990. 100 91,8 83,1 73,1 81,5 78,2 72,2 62,3 88,3 101,4 51,3 81,6 50 53,2 46,3 55,6 43,3 8,6 0 1990 199 1 199 2 1993 1994 1995 1996 1997 1998 19 99 20 0 0 2 00 1 20 02 2 003 2004 2005 2006 2 00 7 200 8 200 9 2 010 20 11 Source: Área de Cooperación Internacional-MIDEPLAN. 2012. International Cooperation Unit
  • 10. Origin and distribution of international cooperation in Costa Rica, 2006-2011 18% 82% 20,5 Cooperación Técnica y Financiera no Reembolsable Cooperación Financiera Reembolsable 79,5 Bilateral Multilateral International Cooperation Unit
  • 11. CR: distribution by sectors and/or development areas International Cooperation Unit
  • 12. 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 million 4. United States of America US$65,2 million 5. Japan US$63,7 million 6. Germany US$63,3 million 7. BID US$ 40,5 million 8. European Union US$31,1 million International Cooperation Unit
  • 13. III Costa Rica and South – South / Triangular Cooperation International Cooperation Unit
  • 14. Costa Rica’s Técnica Cooperation Offer
  • 15. Triangulation Program Costa Rica - Spanish Agency for International Cooperation for Development (AECID)
  • 16. Triangulation Fund Costa Rica-Germany
  • 17. IV Conclusiones: Preliminary considerations Strengths Opportunities Weaknesses Threats International Cooperation Unit
  • 18. 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. International Cooperation Unit
  • 19. 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 International Cooperation Unit
  • 20. 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). International Cooperation Unit
  • 21. To achieve development is necessary to overcome more than one gap… There are structural Structural gaps reflect development gaps that must be obstacles to development and taken into account in addition long-term structural to the concept of vulnerability challenges that still exist in and income per capita. the countries of the region. Per capita income Education inequality Health poverty taxation Investment and saving Gender, and Productivity and environment Innovation infrastructure Respect for democracy, human rights, and fighting corrpution International Cooperation Unit
  • 22. 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 International Cooperation Unit
  • 23. MICS and ODA: Strengths, weaknesses, obstacles and threats Strenghts: • Weight in the world economy, and in key areas such as • More than half of the global public goods. Potential countries in the world belong to benefit the rest of the to the middle-income countries and underpin the category, and this group is work aimed at achieving home to more than 70% of global peace and stability. the world population. • The creation and transmission • They are in all regions of the of knowledge and the world and especially in LAC. development cooperation • Overall country, especially the aimed at middle-income upper middle income, who countries can lead to have a solid institutional base significant positive rule of law and long-standing, externalities. essential to the effectiveness of the ODA. International Cooperation Unit
  • 24. 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 countries oThey 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. International Cooperation Unit
  • 25. Weaknesses, threats and • Both middle-income countries obstacles: such as the high-income levels in • By 2008 the number of poor totaled Latin America can be found at 957 million, of which 72% lived in both ends of the spectrum of middle-income countries. inequality. • Countries with higher incomes may • For example, in the case of Costa have significant pockets of poverty Rica upper middle income country more than those of lower income. with a GDP per capita of USD USD 8,876,6 (2011), with a life • In fact, considering the total expectancy at birth of 79.3 years, number of poor, almost 50% of the with a 69 in the HDI (2011), has 183.5 million poor in Latin America a Gini index of 5.7. live in just two countries: Brazil (26%) and Mexico (23%), both • Some of these countries also have classified as income medium-high. 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 Países vulnerables: and human capital •Ante fenómenos antrópicos (desastres naturales, crísis financieras, etc.) •Por creciente desigualdad International Cooperation Unit
  • 26. Cumplimiento cantonal del Objetivo 7: Garantizar la sostenibilidad del medio ambiente En el 42% de los cantones se Escala de cumplimiento espera que se alcance la meta 0%-59% 60%-79% para el 2015, abrigando el 80%-100% 49,6% de la población del país considerados: Temas considerados: Temas •Población que utiliza fuentes de •Población que utiliza fuentes de abastecimiento de agua potable abastecimiento de agua potable mejoradas mejoradas •Población que utiliza servicios de •Población que utiliza servicios de saneamiento mejorados saneamiento mejorados •Población urbana que vive en •Población urbana que vive en barrios de tugurios barrios de tugurios •Viviendas en mal estado, regular, •Viviendas en mal estado, regular, con hacinamiento con hacinamiento •Población en vivienda propia •Población en vivienda propia
  • 27. Dual role of HMICs 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. International Cooperation Unit
  • 28. www.mideplan.go.cr International Cooperation Unit

Notas del editor

  1. COLOR VERDE: Flores Belén San Pablo Montes de Oca Moravia Barva San Isidro Santo Domingo San Rafael Santa Bárbara Vázquez de Coronado Cartago Heredia Escazú Palmares El Guarco Oreamuno Santa Ana Atenas Mora Tibás Puriscal Curridabat Paraíso La Unión Goicoechea Acosta Desamparados Valverde Vega San Ramón Alajuela Grecia Aserrí Montes de Oro COLOR ROJO: Tarrazú San Mateo Dota León Cortes Orotina Esparza Turrubares San Carlos Nandayure Abangares Cañas Coto Brus Guatuso Puntarenas Bagaces Guácimo Parrita Siquirres Aguirre Osa Pococí Corredores Golfito Garabito Upala Matina La Cruz Buenos Aires Sarapiquí Los Chiles Talamanca