The necessity for effective international cooperation in the interest of development has never been more pressing in this interconnected world. Despite the noble intentions behind international aid, the current system is riddled with fragmentation, inefficiencies, and short-term fixes that fail to address the underlying issues. What if we could redefine this landscape, drawing on successful historical precedents to create a cohesive, needs-oriented aid system that truly empowers recipient nations? It’s time to shift the paradigm to ensure that international aid is a catalyst for sustainable growth instead of something that perpetuates dependency.

Enhancing the duty to cooperate

International cooperation for development is identical to the realisation of economic, social and cultural rights and is a duty of all states. This is reinforced by various international treaties, including the Convention on the Rights of the Child (1989) and the Convention on the Rights of Persons with Disabilities (2006). The duty to cooperate for international development should be considered an international customary norm supported by state practice. However, this duty is defined in a general way without specifying what exactly states should do. How can we enhance the duty to cooperate in practice in order to ensure development. What are effective ways to implement the broad obligation to cooperate for development under international law?

Aligning aid with national priorities for sustainable growth

The cornerstone of any reform is recognising national leadership and ownership in development plans as this is central to the Monterrey Consensus on financing for development. When applied in practice, this principle necessitates a shift towards a needs-oriented approach. This requires donors to align aid flows with national development plans, guided by sustainable development strategies.

Obstacles

But there are obstacles in this process. First, a lack of long-term planning which means that the root causes behind a particular country’s development are often not addressed. Second, the sustainability of development plans need to be regularly tested with an Environmental Impact Assessment (EIA). Third, sustainability must ensure that the objectives, incentives, and taxpayers’ information are aligned with the recipient communities’ specific needs, cultural contexts, and local dynamics; this can lead to ineffective or counterproductive interventions. Finally, specific monitoring and impact measurement mechanisms must be created afterwards.

A needs-oriented system implies including the recipients when negotiating grants, projects and policies, which should be country-tailored rather than generic. Sustainability also implies developing internal capacity building to empower local communities, governments, and institutions to lead their development efforts. In many cases, it is essential not only to ‘teach something’, but also to help implement it. So not to just ‘give the money and then leave’ right afterwards.

The international development aid system is performing poorly because the resources are not seen as an investment in social cohesion and structural change or an opportunity to give governments the breathing space necessary to help difficult and often painful policies become a success.

Overcoming donor fragmentation

Donor fragmentation further weakens the current system architecture. The Organisation for Economic Co-operation and Development defines aid fragmentation as ‘aid that comes in too many small slices from too many donors, creating high transaction costs and making it difficult for partner countries to effectively manage’. One of the main strategies to address aid fragmentation is establishing a balanced relationship between resources invested and results obtained.

Tackling aid fragmentation requires enhanced coordination and improved distribution of tasks among the parties involved. It is necessary to establish a framework of global governance that ensures the redefinition of the purpose of international aid, ensuring its capacity to effectively address comprehensive development and its coherence with other regimes, such as trade or climate, to avoid the proliferation of funds pursuing similar objectives. A viable approach involves implementing advancements in mutual accountability, which are particularly crucial given the inherent inequality in the relationship between donors and partner countries. This can be remedied by establishing a direct link between donors and governments, ensuring accountability for their commitments. Without donor coordination mechanisms, the effectiveness of aid is compromised.

Recipient countries at the helm

All donors should accept and empower recipient countries to take the initiative to streamline donor operations in their economies. In general, what works most is the development of the recipient country’s internal capacities. It is, therefore, essential to fill the gap by establishing uniform criteria to assess whether internal capacity building reaches good levels.

Strategic reforms and innovative financing

Reform efforts should also align aid flows with other sources of development finance through trust funds. These can help simplify procedures and improve harmonisation, avoiding duplication of efforts. Furthermore, innovative new international levies, such as carbon taxes, a levy on international financial transactions or actions against tax evasion and illicit financial transfers, could help reduce the volatility of available aid flows and vulnerability to political opportunities.

This combination of actions could allow for a substantial funding increase for development, leading to a more efficient and effective international aid system.

Conclusion

The international development aid system can be a beacon of hope, drawing on a track record of success. Unfortunately, this international architecture is adapting slowly to the new world it has helped create. Now is the time to move forward and reconsider its architecture, drawing on lessons from past successes while focusing on addressing future challenges.

Photo: UN