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Policy coherence for inclusive and sustainable development

Policy coherence for inclusive and sustainable development

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Published by OECD Publications
With the OECD Strategy on Development, the organisation and its members have taken an important step forward on how to approach policy coherence for development in a rapidly changing and more complex global context. The OECD can make full use of its multidisciplinary expertise, evidence-based approaches to policy making, and peer learning working methods. This will contribute to better informed policies and provide decision makers with the necessary tools and instruments for achieving greater policy coherence for development in the post-2015 development agenda and framework.
http://www.oecd.org/dac/post-2015.htm
With the OECD Strategy on Development, the organisation and its members have taken an important step forward on how to approach policy coherence for development in a rapidly changing and more complex global context. The OECD can make full use of its multidisciplinary expertise, evidence-based approaches to policy making, and peer learning working methods. This will contribute to better informed policies and provide decision makers with the necessary tools and instruments for achieving greater policy coherence for development in the post-2015 development agenda and framework.
http://www.oecd.org/dac/post-2015.htm

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Published by: OECD Publications on Sep 12, 2013
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03/13/2014

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Policy coherence for inclusive andsustainable development
In today’s multipolar and interconnected global economy, all countries play a role in drivinggrowth and enabling sustainable development.The development agenda that replaces the Millennium Development Goals ater 2015 is likelyto consist o “a truly international ramework o policies to achieve sustainable development”implemented through a new global partnership and guided by a single set o universal goals thatapply to all countries.The process o policy coherence or development (PCD) – which has evolved in the OECD overthe last two decades – has much potential as a global tool or creating the enabling environmentsand policy processes required by the post-2015 ramework. An updated and broader approach to PCD, based on collective action, common but dierentiatedresponsibilities and mutual benets, and seeking coherent policies at global, regional andnational levels (including advanced, emerging and developing countries) is now needed.Through its multidisciplinary expertise, and close links with governments, internationalorganisations, the business community and civil society, the OECD already has signicantexperience o developing the policies, methodologies and tools required or improving coherenceor development. The organisation stands ready to support the international community inbroadening policy coherence approaches to tackle more complex and interrelated developmentchallenges.
OECD AND POST-2015 REFLECTIONS
Why focus on policy coherence in the post-2015 agenda?
It is widely accepted that achieving inclusive and sustainable development will require more thanaid. The prospects or countries are shaped by a wide range o issues. Domestic questions ogovernance, institutional capacities and politics matter, but a number o externally-driven issues arealso important. Aid is one, but there are many more. In today’s increasingly interconnected globaleconomy, domestic policies implemented by advanced and emerging economies are especiallylikely to have a global reach and infuence the growth and development prospects o lower-incomecountries. Neglecting the international spillovers o domestic policies can undermine developmentobjectives, as well as the eectiveness o international development co-operation eorts (OECD,2013b). According to the High-Level Panel o Eminent Persons on the Post-2015 Development Agenda (HLPor short), what is needed is “a truly international ramework o policies to achieve sustainabledevelopment” (HLP, 2013). A single, universal post-2015 agenda applicable to all countries can
Element 8, PAPER 1
 
POLICY COHERENCE FOR INCLUSIVE AND SUSTAINABLE DEVELOPMENT
2
Box 1. What is policy coherence for development?
To meet the challenge o achieving sustainable development, governments need to design more eective policiesthat avoid impacts that adversely aect the development prospects o other countries. At the same time, theyneed to enhance their capacities to exploit synergies across dierent policy areas with important cross-borderdimensions, such as trade, investment, agriculture, health, education, environment, migration and developmentco-operation to create environments conducive to development.From this perspective a coherent policy would be one which enables developing country exports to have greateraccess to markets, while also helping them boost their export supply capacity. Conversely, an incoherentpolicy would be one which provides ocial development assistance (ODA) to support a country’s agriculturaldevelopment, while simultaneously blocking their exports and pushing their armers to compete with subsidisedagricultural production.The OECD now sees PCD as a
process 
or integrating the multiple dimensions o development at all stages opolicy making. Its main objectives are to:1) exploit the potential o positive synergies across policies to support development, pursuing win-winsituations and mutual benets;2) increase governments’ capacities to balance divergent policy objectives, and help them to reconciledomestic policy objectives with broader international or global objectives; and3) avoid or minimise the negative side-eects and impacts o policies on development.PCD entails:
ensuring that the interactions among various policies in the economic, social, environmental, legal andpolitical domains support countries on their pathway towards inclusive sustainable growth;
putting in place institutional mechanisms, processes, and tools to produce eective, ecient, sustainableand coherent policies in all sectors;
developing evidence-based analysis, sound data and reliable indicators to inorm decision making andhelp translate political commitments into practice; and
ostering multi-stakeholder policy dialogue to identiy the barriers to, and the catalysts or, change.
be achieved through a new global partnership which “should engage all countries, local authorities,international organisations, businesses, civil society, oundations and other philanthropists, andpeople” (HLP, 2013).
1
 Since the early 1990s, the OECD has played a pivotal role in promoting an approach known as “policycoherence or development” (PCD, see Box 1 or the latest denition
2
and Figure 1 or how the concepthas evolved). While PCD has traditionally been seen as the main responsibility o donor countries, thepost-2015 development agenda that will replace the Millennium Development Goals (MDGs) calls ora broader and more proactive approach, bringing in many more actors. This brochure outlines theOECD’s refections on what this broader approach could look like, and how OECD expertise couldcontribute.
3
 
3
2002
Monterrey ConsensusII HLF (Paris) Paris Declaration2008 OECD Ministerial Declaration on PCDIV HLF(Busan)2010 OECD Council Recommendation onGood Institutional Practices in Promoting PCD1996 –DAC Strategy “Shaping the 21st Century”
2002 OECD Action for a Shared Development AgendaPCD in DAC peer reviews
OECD Strategyon DevelopmentOECD-PCD Programme and Unit2000 UN Millennium Declaration MDG 8
2003
Commitment to Development Index (CDI)
200520072008201020112012
POST-2015
Towards an inclusive andBroader Approach to PCD
2014
Progress on policy coherence under the MDGs
The Millennium Development Goals included a goal or coherent policies in the orm o MDG8: a globalpartnership or development. It clearly identied the areas that stakeholders thought the world shouldocus on in order to create an external environment avourable to helping developing countries reachtheir development aspirations: these included aid, trade, debt relie and increased access to essentialmedicines and new technologies. However, it did not oster a true global partnership and did not moveaway rom the traditional “donor-recipient paradigm”. One problem was that the targets and indicatorso MDG 8 lacked precise benchmarks against which progress could be assessed (UN System Task Team on the Post-2015 UN Development Agenda, 2013). According to the HLP, progress towards achieving the MDG8 is limited in several areas. Many countrieshave reduced taris, but the Doha Development Round is not concluded. Debt burdens have beenreduced, but many countries are still nancially exposed. Substantial progress has been made inimproving the aordability o medicines, yet many people still lack access to aordable essentialdrugs. Despite these shortcomings, the HLP considers MDG8 as central to the new global developmentagenda. It has underlined the need to develop targets that are universal (HLP, 2013). This will requirea broader approach to policy coherence or development as a means to guide consistent national,regional and global action.
Towards a broader approach to PCD
Discussions on PCD have requently taken place among donors on a sector-by-sector basis and basedon the need or coherence between aid and non-aid policies. But proound changes in today’s worldcall or a new approach:
Figure 1:
Policy coherence or development: a concept in evolution

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