Chairman’s Summary – The Moscow Process

Over the past two days, we have had a rich discussion about both the global scene and country experiences with new development finance partnerships. As more countries have begun or increased their provision of development finance, the global aid architecture has been enhanced. As Russian Federation Deputy Prime Minister Alexey Kudrin and World Bank President Robert Zoellick suggested in a recent joint article., the broadening of the global development community is an opportunity to “modernize multilateralism.”

Conference participants represented both new and longstanding development partners as well as partner countries and international organizations. Hence, we have heard different views from different vantage points, and it is clear that development finance has diverse modalities, strategies and motivations, and a realistic understanding of this process is needed. Yet, there is a strong consensus among all partners on the need for country ownership and managing for results to ensure aid effectiveness.

In particular, conference participants highlighted three areas where concrete progress can be made.

  1. More information sharing on development finance flows. A number of new development partners presented their recent activities. More availability of information about the role of new development partners would bring greater visibility to the positive role they play. We all recognize the OECD-DAC’s long experience with collecting, reporting and analyzing aid statistics. Many new development partners who are not members of the DAC are open to sharing more information but would benefit from practical technical support. On behalf of the Russian Federation, we propose to other new development partners that we join together and ask the OECD-DAC to work with us in a special group that will focus initially on building capacity for aid statistics and reporting, and other aid management concerns. In addition, we would propose that new development partners observe and learn from the DAC peer review process.
  2. Continuing a consultative process for sharing experience and knowledge among development finance partners. Conference participants found it helpful to share knowledge and experience among the wider development finance community. We can learn from each others' successes and challenges. The participants agreed to continue their dialogue through existing fora, such as the ongoing process on Aid Effectiveness that will culminate in the High Level Forum in Korea in 2011; the Task Team on South-South Cooperation which will meet next month in Bogota, Colombia, and other important discussions within the OECD, United Nations and World Bank. In particular, we propose that new development partners join with the DevCom Network to exchange experiences about development communications and strengthen public support for development cooperation. .
  3. Providing support for multilateral funding channels. Partners saw incentives to expand their involvement through the multilateral organizations. They saw advantages in the additionality these channels bring to their bilateral resources, the ability to deploy accumulated knowledge and experience, and convening power. They are seen as strong in in implementing results-oriented, multi-sectoral approaches, and the ability to flexibly respond to country circumstances. In our discussion, we heard several multilaterals present their specific approaches, such as inclusive governance structures or equitable rules-based allocation mechanisms. Yet, they also emphasized the need to continuously revise their business models.

Participants discussed the need for different channels of funding to complement rather than compete; provide true additionality; and above all, to avoid fragmentation of the overall global funding effort, particularly at the country level. New development partners should be pro-active participants in setting the policy framework for multilateral channels, through participation in replenishment processes and in the ongoing governance of these organizations.

Finally, participants emphasized the relevance of new development finance partnerships to addressing pressing concerns on the global development agenda. They expressed their continued support for achieving the Millennium Development Goals, delivering global public goods, and responding to crises. As the OECD-DAC Chair, Eckhard Deutscher reported, overall ODA flows rose to unprecedented levels in 2008, but stronger efforts are required to ensure that aid promises made by DAC donors are fulfilled.

In conclusion, and on behalf of the Russian Federation, we would like to thank all delegates for your participation in this conference. We would like to thank the World Bank and the OECD for their support of the conference. We anticipate the continuation of this process of exchange and dialogue at the international and country levels.