Is conditionality dead?

1. Is conditionality dead? Ownership, good governance and new aspects of conditionality Priyanthi Fernando Centre for Poverty Analysis, Colombo ODI Workshop “Southern Voices for Change in the Aid System” November 2005, London

2. Conditionality is NOT dead! • Framework within which the aid system operates and conditionality is articulated • Importance of conditionality in expanding (rather than constricting) democratic space • Importance of ‘good governance’ in donor countries and organisations

3. Framework of Aid • Articulated in the ‘North’ • Serves the interests of donor countries • Southern governments buy in • Choices limited • Safeguarding rights of citizens difficult • “ [must help] deprive terrorists of popular support and addressing the conditions that terrorist leaders feed on and exploit” • OECD 2003 policy statement on development cooperation

4. Characteristics of the Framework • “Can-opener” approach • System of knowledge production • “blue print approach” – specific interventions for specific problems irrespective of context • “scientific truths or measures” – depoliticising poverty (e.g. MDGs, poverty indicators) • Institutionalising the development discourse – binding actors to certain behaviours and rationalities “poverty, illiteracy and hunger became the basis of an industry for planners, experts and civil servants.. since the industry never stops producing goods in the form of new projects and reports, but actually achieves its targets only rarely, it justifies its own continued existence” (Arturo Escobar)

5. Expanding democratic space • Narrowness of “can-opener” approach • Marginalises local expertise, needs and priorities • Governments lose ‘ownership’ • Corrodes ordinary peoples’ control over their lives, their communities and their representation in government • Governments more accountable to donors • Policies easily appropriated by governing élites • Lack of transparency of government-donor negotiations • Does not ensure that governments meet their obligations to protect citizens’ rights

6. Good governance among donors • “good governance” almost always focused on recipients • “mutual accountability” focused on the aid relationship • Donors must consider own ‘good governance’ • Contradictions between trade vs aid • Flaws in IFI policies • “Corruption” in international agencies • Greater representation of developing countries in international aid organisations, particularly IFIs “broadening and strengthening of participation of developing countries….in international decision-making and norm-setting” Monterrey Consensus

7. Issues for the Forum For Aid • Develop a southern, civil society platform for debate on the Aid System • Set the agenda for the debate • Make alliances with other southern thinkers, social movements and champions in the north Thank you!