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Dirk Niebel MdB, Federal Minister for Economic Cooperation and Development. Gudrun Kopp MdB, Parliamentary State Secretary to the Federal Minister for Economic Cooperation and Development. Hans J rgen Beerfeltz, State Secretary of the Federal Ministry for Economic Cooperation and Development. 3 BMZ STRATEGY PAPER 5 2013e,Table of contents,1 Introduction 4. 2 Definition and different forms 5, 3 Goals and significance for German development cooperation 7. 4 Opportunities and challenges for the partners involved 9. 5 Problems and potential solutions 11,Annex Further reading 13. 4 BMZ STRATEGY PAPER 5 2013e,1 Introduction, In international development debate triangular triangular cooperation can be deployed and the dif. or trilateral cooperation is increasingly regarded ferent models available This leads on to an outline of. as forming a useful link between South South and the risks and opportunities for all partners involved. North South cooperation 1 The DAC donors have the problems that may arise and the ways in which. also now largely acknowledged the special benefits they can be solved. of South South cooperation and the contribution, it can make to development The growing impor This position paper aims to provide help and guid. tance of South South Cooperation compared with ance to the German Federal Ministry for Economic. North South cooperation and the efforts being made Cooperation and Development BMZ and its im. to broaden the effectiveness debate are prompt plementing organisations in the implementation. ing development actors at various levels to discuss of triangular cooperation It is concerned only with. where they differ in their development policy and cooperation at government to government level and. where they share common ground 2 Within this con does not address triangular cooperation with civil. text triangular cooperation is frequently seen as an society. expression of many players desire to engage in very. practical forms of South South North cooperation, We reiterate our support for South South as well as. The international declarations of Doha Accra and triangular cooperation which provides much needed. Busan all express the hope that the instrument of resources to the implementation of development. triangular cooperation could help to promote dia programmes. logue and learning between the various partners Doha Declaration on Financing for Development. see box Paragraph 49,Whilst many development actors attach high hopes. to triangular cooperation it must be asked what We recognise the importance and particularities of. added value it can offer The German Federal Min South South cooperation and acknowledge that we. istry for Economic Cooperation and Development can learn from the experience of developing countries. BMZ has resolved to make more use of the many We encourage further development of triangular. opportunities for triangular cooperation work cooperation. ing together with its partners The inclusion of a Accra Agenda for Action Paragraph 19. third party in a development activity means that,triangular cooperation places complex demands. on political dialogue and on the planning and im South South and triangular cooperation have the. plementation process This position paper aims to potential to transform developing countries policies. provide an overview of the various ways in which and approaches to service delivery by bringing. effective locally owned solutions that are appropriate. Cf Federal Foreign Office Strategy paper Shaping globalization. expanding partnerships sharing responsibility 2012 and German. to country contexts, Federal Ministry for Economic Cooperation and Development BMZ Busan Declaration Paragraph 30. Strategy for Development Cooperation With Global Development. Partners 2011, e g within the G20 development working group working groups. within the context of Paris Accra Busan or within the context of the. UN Development Cooperation Forum DCF,5 BMZ STRATEGY PAPER 5 2013e. 2 Definition and different forms,In development policy debate triangular coopera. tion is defined in different ways Common to all the. beneficiary country, various definitions however is the emphasis on the. pooling by two or more players of their various re. sources in support of a beneficiary country Based,on studies into triangular cooperation conducted. by the German Development Institute and on the established. emerging economy, OECD DAD definition3 it is defined within German DAC donor. development policy as follows 4, Triangular cooperation is defined as a cooperation. project that is jointly planned financed and imple In triangular cooperation model A the established. mented by an established DAC donor industrialised donor Germany and the emerging economy. country an emerging economy and a beneficiary jointly mobilise transfers that will help a third. country partner in its development efforts see figure The. resources transferred by the two countries may take. According to this definition triangular coopera the form of personnel specialist sectoral knowledge. tion involves three different categories of country or knowledge of methodology or financial resources. including an established DAC donor country5 a A major aspect of model A type triangular coopera. second donor or provider recipient country6 and a tion is that as well as providing transfers to the third. beneficiary country 7 This is referred to as triangular country the established donor and the emerging. cooperation in the strict sense model A Of all the economy share their learning experiences Through. various instances of triangular cooperation to be dialogue and training the skills of the emerging. found in German development cooperation the vast economy as a Southern partner and provider of. majority fall within this category development cooperation are strengthened and its. structures for engaging in development cooperation. can be developed One hallmark of triangular coop, OECD DAC definition Presented at the OECD DAC Policy Dialogue eration is that transfers are provided by the estab. on Development Cooperation Mexico City 2829 September 2009. www oecd org dac mexicodialogue this paper defines triangu. lished donor and the emerging economy jointly This. lar cooperation as partnerships between DAC donors and pivotal is in contrast to regional projects for example These. countries providers of South South Cooperation to implement. development cooperation programmes projects in beneficiary coun. may also involve global cooperation partners and, tries recipients of development aid neighbouring third countries In triangular coopera. tion however the emerging economy is the main co, Altenburg T Weikert J Trilateral development cooperation with. New Donors Bonn German Development Institute Briefing paper financer and or knowledge provider. Often operating as mediator moderator and financier Apart from this kind of bilateral cooperation. between an established DAC donor and an emerging, The emerging economy is a key partner and generally a country that. is not a DAC donor It is generally a country from the South that economy there are two other ways in which trian. has a dual role which is both a donor and a recipient of develop. ment cooperation Emerging economies fall within the World Bank. gular cooperation can be instigated a South South, category of middle income country cooperation activities to which a DAC donor lends its. support in the form of advice training networking, Normally a country classified as least developed low income or. developing opportunities or funding or b instances of bilateral. 6 BMZ STRATEGY PAPER 5 2013e, cooperation between a traditional DAC donor and a International debate on triangular cooperation is. developing country to which an emerging economy almost exclusively focused on Technical Cooperation. contributes advice and funding instruments capacity development The German. Federal Ministry for Economic Cooperation and, Already however a number of special forms of tri Development BMZ is of the opinion that triangular. angular cooperation are emerging which we term cooperation can encompass Financial Coopera. triangular cooperation in the broader sense model tion as well as Technical Cooperation This can take. B These include for example development coop the form of joint investment projects in developing. eration between two beneficiary countries8 and an countries undertaken in partnership with emerg. established DAC donor cooperation between two ing economies As well as advancing its development. emerging economies and an established DAC donor policy agenda Germany is able to assess to what. or cooperation between a beneficiary country an extent the Southern partners procedures generally. emerging economy and two established donors 9 regarded as rapid and flexible and their develop. With model B type triangular cooperation the focus ment policy know how can be drawn on for German. in many instances is on pooling the financial and development cooperation. human resources of the established DAC donor and, another country in support of the beneficiary coun. try The sharing of learning experiences between, partners tends to play a less significant role than in. model A type triangular cooperation This paper will. concentrate on model A type cooperation This is the. type of cooperation on which the efforts of the BMZ. to increase triangular cooperation are focused,Especially LDC. There is no clear distinction between this and other aid modalities. such as co financing etc,7 BMZ STRATEGY PAPER 5 2013e. 3 Goals and significance for German,development cooperation. Triangular cooperation is not a new topic in German 5 Fostering South South cooperation regional. development policy Pilot initiatives were already development dialogue and networking. launched in the 1980s 10 However the topic has, grown greatly in significance as a result of the search Internationally Germany is actively involved in. for new and innovative forms of cooperation with various multilateral bodies Within these bodies. emerging economies Over recent years Germany Germany is keen to communicate the following. has engaged in a number of triangular cooperation key messages. projects each of which pursued different goals, see box at page 8 Triangular cooperation is an additional. instrument of development cooperation,Generally speaking Germany s goals in engaging in. triangular cooperation are as follows 11 Triangular cooperation arrangements create. an opportunity to make global development, 1 Improving the effectiveness of development cooperation more effective in practice. measures in the beneficiary countries through, the complementary use and dovetailing of Triangular cooperation is a very promising. knowledge experience and financial resources instrument for facilitating cooperation between. from emerging economies and from Germany countries from both within and outside the. OECD DAC framework,2 Establishing worldwide development partner. ships for sustainable development and exerting German supported triangular cooperation is boom. a positive impact on regionalisation ing in Latin America in particular The major part. ners there are Brazil Mexico and Chile In future, 3 Jointly setting global development agendas and more efforts should be made to use the potential. promoting the sharing of learning and experi for triangular cooperation in Asia and Africa Along. ence on the principles of development coopera with Japan und Spain Germany is one of the leading. tion and the ways in which it can impact players and largest DAC donors in the field 12. 4 Replicating disseminating experience jointly,gained through bilateral development coopera. tion with global partners and in other develop,ing countries. e g regarding triangular cooperation based on agricultural technology. China Mali Germany 1986, These goals are based on the development policy and foreign policy. goals of the German government which determine its actions in. those fields Federal Foreign Office Strategy paper Shaping globali 12. OECD Triangular Co operation What do we know about it. zation expanding partnerships sharing responsibility 2012 and http www oecd org dac 44652734 pdf and OECD Triangular. BMZ Strategy for Development Cooperation With Global Develop Co operation What can we learn from a survey of actors involved. ment Partners 2011 Advance Copy 2012,8 BMZ STRATEGY PAPER 5 2013e. The Latin America Triangular Cooperation human resource capacities of the Brazilian. Fund is used to support various projects deal organisation for development cooperation. ing with a number of issues in Latin America, but also in Africa e g between Peru Germany In our triangular cooperation with Mexico. and Guatemala concerning democracy civil the aim is to pass on the experience gained. society and public administration between from bilateral German Mexican development. Brazil Germany and Mozambique concerning cooperation so as to help develop other coun. the development of a sustainable economy and tries and also help Mexico develop its role as. between Chile Germany and Colombia con a donor in the region and make use of existing. cerning drinking water water management capacities e g wastewater management with. sewage waste management Bolivia The Triangular Cooperation Fund. with South Africa also supports specific pro, Beyond the Triangular Cooperation Fund jects in third countries e g in Kenya Tanzania. a number of other triangular cooperation and DR Congo dealing with issues such as. projects are being conducted with Brazil in anti corruption post conflict reconstruc. Mozambique on such issues as meteorology tion and fire management as well as capacity. and the strengthening of risk management development of the South African Development. for rivers and coastal regions The focus is on Partnership Agency and the strengthening of. results and on building the institutional and South Africa as a regional donor. For many emerging countries and beneficiary direct bilateral development cooperation In finan. countries the concept of triangular cooperation is cial terms triangular cooperation is also a relatively. still new and unfamiliar One apparent obstacle to insignificant form of cooperation at international. triangular cooperation is the increased coordina level although it is increasingly gaining political. tion required between the partners compared to prominence. 9 BMZ STRATEGY PAPER 5 2013e,4 Opportunities and challenges for. the partners involved, The partners in triangular cooperation generally either a neighbour or comes from within the region. have different motives and are pursuing different can be politically sensitive If cooperation partners. interests Yet triangular cooperation offers them all have interests that are not in line with development. a number of opportunities Ideally these should be interests or in fact run counter to them this can. combined to achieve a win win win situation The pose a risk to the beneficiary country Triangular. possible risks that triangular cooperation may pose cooperation that is not based on equal partnership. for the partners or that can arise from its involve can further strain relations between the beneficiary. ment should however also be considered country and the Southern player if these relations are. already tainted by political or historical issues,OPPOrtuNities fOr tHe BeNeficiary. cOuNtry OPPOrtuNities fOr tHe eMerGiNG,By pooling financial and human resources from an. emerging economy and Germany as an established In triangular cooperation an emerging economy. DAC donor it is possible to offer a mix of funding can demonstrate to the donor community that it is. and knowledge that would not otherwise be avail taking on responsibility for development thereby. able on the market Triangular initiatives can open cultivating its international reputation It can gain. up new opportunities for cooperation In case of political influence in the region and by working. relations are not burdened by historical cultural or with the DAC donor it can also mobilise additional. political problems the beneficiary country could resources funding knowledge technology which. receive support from a partner with a similar socio enables it to establish or expand its own coopera. cultural background e g common language values tion structures and implement projects that would. history etc The Southern partner is also available to otherwise have exceeded its capacities Overall the. contribute the experience it has gained in the course emerging economy gains skills as a donor provider. of its own development Advice and other services of development cooperation with regard for exam. can be provided by the Southern partner or the DAC ple to monitoring and evaluation systems or boost. donor to the beneficiary country more rapidly and ing the effectiveness and efficiency of development. cheaply and also in a more sustainable way 13 cooperation. cHalleNGes fOr tHe BeNeficiary cHalleNGes fOr tHe eMerGiNG. cOuNtry ecONOMy, Poor coordination between partners in a triangular Triangular cooperation can place a considerable. cooperation activity can place a considerable addi additional burden on the country and involve high. tional strain on structures in the third country and transaction costs If triangular cooperation is un. can lead to further fragmentation of donor efforts evenly balanced and the various partners do not. on the ground For the beneficiary country triangu operate as equals the emerging economy may find its. lar cooperation with an emerging economy that is opportunities to contribute and influence the project. being limited by the other donor If the triangular. cf triangular cooperation between Brazil Germany and Mozambique cooperation is not of a high quality the emerging. 10 BMZ STRATEGY PAPER 5 2013e, economy can jeopardise its reputation To a certain It can have a particularly great impact when the. extent the emerging economy has to open up to the partners succeed in jointly addressing sensitive top. established DAC donor and may be confronted with ics within a particular country such as protection. questions about the quality and design of its coopera of global public goods that none of them could have. tion and instruments and also about its motivation tackled alone Triangular cooperation can lend a new. dimension to the cooperation with the global devel. opment partner,OPPOrtuNities fOr GerMaN,DevelOPMeNt cOOPeratiON. cHalleNGes fOr GerMaN DevelOPMeNt, The instrument of triangular cooperation offers cOOPeratiON. Germany the opportunity to take the development, experience it has gained through its bilateral co Triangular cooperation can also present challenges. operation with the Southern partner and replicate for German development cooperation It can be more. it in another country This can extend the reach of demanding in terms of coordination and time than. German development cooperation By working with bilateral development cooperation and thus entail. the emerging economy and discussing with it inter higher transaction costs Questions may also arise. national processes e g within the UN or G20 context regarding how to ensure ownership on the part of. or with regard to the Global Partnership of Effective the beneficiary country or how to deal with an am. Development Cooperation founded in Busan we bitious emerging economy for which development. are able to arrive at a firmer shared understanding of policy interests may not have top priority It is often. what development policy means Germany can learn more difficult to implement projects dealing with. lessons for its development cooperation from both strategic or political issues than projects of a purely. partners particularly when it comes to the flexible technical nature In such cases it is necessary to first. and relatively rapid procedures used by the Southern find a common language and to agree on common. partners To some extent there may be no need to values and interests. establish or expand our own advisory capacities in. the beneficiary country Instead we can make use, of the existing capacities of the Southern partner. Triangular cooperation is a sufficiently flexible instru. ment that allows several goals to be combined,11 BMZ STRATEGY PAPER 5 2013e. 5 Problems and potential solutions, traNsactiON cOsts cOOrDiNatiON government negotiations or consultations at. aND excessive BurDeN ON PartNer meetings or at workshops with those work. structures ing at implementation level The details of the. implementation of the triangular cooperation, Many observers see high transaction costs as the should be recorded in writing e g through. biggest obstacle to greater use of triangular coopera special provisions and framework agreements. tion The main aspects are the relatively high costs of It may also prove necessary to coordinate on. gathering information as a result of the multitude of the ground with other OECD DAC donors and. partners e g searching for information on potential emerging economies so as to avoid any duplica. partners in triangular cooperation and of reaching tion of efforts and minimise the risks. an agreement between the partners e g negotiations. formulation of a contract signing of the contract The costs of preparing the ground for co. For triangular cooperation to succeed it is important operation between several partners and the. that Germany has a constant development presence coordination between them can be reduced by. in the cooperation countries and as far as possible introducing a rigorous system of managing and. a long history of close bilateral cooperation This is sharing knowledge and also by Germany tak. important both at the planning and the implementa ing appropriate organisational precautions e g. tion stage The fact that some triangular initiatives developing routine procedures maintaining. so far have been of limited financial scope also systematic contact and dialogue with the part. contributes to the problem of high transaction costs ners etc. The following measures offer a way of lowering the. transaction costs that triangular cooperation entails Where triangular cooperation is of greater. financial scope fixed costs make up a compara, By taking procedures instruments and prod tively smaller proportion of overall costs thus. ucts that have already been tested with the also comparatively reducing transaction costs. emerging economy and adopting them to the, beneficiary country transaction costs can be Wherever possible monitoring and evalua. lowered Building on existing projects being tion should be based on uniform standards and. conducted by the beneficiary country and the drawing on established and reliable instru. emerging economy i e using existing struc ments and methods. tures can also considerably reduce the cost of, preparing the ground for triangular coopera Ensuring that a beneficiary country takes on own. tion and reaching agreement on it The emerg ership and leadership within a trilateral partnership. ing economies should be supported through the can be a great challenge It is not uncommon for. process of project appraisal particularly when an emerging economy and an established donor to. they have no procedures of their own agree in principle to engage in triangular coopera. tion without the beneficiary country actually having. The processes and coordination involved in indicated a definite interest in such cooperation The. planning and implementing triangular co following measures can be used to strengthen own. operation are complex It is therefore good to ership within triangular cooperation. clarify early on what the respective partners,expect from cooperation This can be done at. 12 BMZ STRATEGY PAPER 5 2013e, Launching triangular cooperation in response cONflicts Of iNterest. to a clearly articulated expression of interest, on the part of the beneficiary country e g a In recent years many emerging economies have. written request to at least one of the partners in become much more involved in international and. the triangular cooperation regional processes Yet how should we react if within. a potential triangular cooperation the Southern, Working together from an early stage to iden player is regarded by the beneficiary country as an. tify the issues that could be addressed by the aspiring regional power with hegemonic ambitions. planned triangular cooperation is one way of, ensuring that it really is geared towards the A precondition for triangular cooperation is. beneficiary country s own priorities that the beneficiary country has given its con. sent and has a clear interest in what the project, Once a consensus has been reached on the focus is offering If a third country is extremely dis. of the triangular cooperation and its goals trustful of a Southern player and suspects it of. the partners should agree on the results to be seeking to exert regional influence triangular. achieved and formulate them as specific as pos cooperation should not be embarked upon. sible There should be a clear added value for all, the partners particularly the beneficiary coun Each proposed triangular cooperation activ. try the triangular cooperation should not be an ity should be judged on its merits There is no. end in itself mechanism whereby an emerging economy. automatically becomes a partner in triangular, Steps should also be taken to strengthen the cooperation. ownership of the emerging economy for exam,ple by having it make an appropriate contribu. tion of its own in the form of expertise staff or,13 BMZ STRATEGY PAPER 5 2013e. Annex Further reading, Altenburg T J Weikert M glichkeiten und Gren OECD Triangular Co operation and Aid Effective. zen entwicklungspolitischer Dreieckskooperationen ness Paper presented at the OECD DAC Policy. mit Ankerl ndern Bonn Deutsches Institut f r Dialogue on Development Co operation Mexico. Entwicklungspolitik Discussion Paper 15 2006 City 28 29 September 2009. Ashoff G Cooperaci n triangular de Alemania en OECD Perspectives on Global Development 2010. Am rica Latina contexto enfoque perfil y experi Shifting Wealth 2010. encias Presentation at the conference Cooperaci n, Sur Sur regionalizando la agenda del desarrollo OECD Triangular Co operation What can we learn. de Am rica Latina organised by FRIDE Universi from a survey of actors involved Report Advance. dad Nacional de Colombia and Enlaza Colombia in Copy 2012. Bogota Colombia 6 March 2009,OECD Triangular Co Operation What s the Litera. BMZ Triangular cooperation to bridge South South ture Telling Us Advance Copy Literature Review. and North South Development Cooperation in prepared by the OECD Development Co operation. South South in Action Spring 2009 S 7 Directorate 2012. BMZ Strategy for Development Cooperation With SEGIB Ibero American General Secretariat Report. Global Development Partners 2011 on South South Cooperation in Ibero America 2012. November 2012,BMZ GTZ Triangular Cooperation New Partner. ships for Development 2010 Stiftung Wissenschaft und Politik SWP Dreieck. skooperationen als neues Instrument der Entwick, BMZ GTZ Triangular Cooperation Institutional and lungszusammenarbeit Chancen und Risiken neuer. Technical Strengthening of Mozambique s National Kooperationen Die F lle Brasilien Indien und. Institute of Standardization and Quality INNOQ China 2012. Case story in the framework of the Task Team on, South South Cooperation 2010 Task Team on South South Cooperation South. South cooperation in the context of aid effectiveness. BMZ GTZ Triangular Cooperation GIRESOL Telling the story of partners in 110 cases of South. Network Developing capacities in integrated solid South and triangular cooperation 2010. waste management by forming a network of envi, ronmental promoters in Guatemala Case story in UN ECOSOC South South and Triangular Coopera. the framework of the Task Team on South South tion Improving Information and Data Support to. Cooperation 2010 UN Development Cooperation Forum 2010 Novem. Federal Foreign Office Shaping Globalization,Expanding Partnerships Sharing Responsibility. A strategy paper by the German Government 2012,IFAD South South cooperation in IFADS s Business. model September 2011,Published by the, Federal Ministry for Economic Cooperation and Development BMZ. Division for public relations information and education. Edited by the, BMZ Division 210 Policies regarding cooperation with countries and regions. Design and layout,BLOCK DESIGN Kommunikation Werbung Berlin. February 2013,Addresses of the BMZ offices,BMZ Bonn BMZ Berlin. Dahlmannstra e 4 Stresemannstra e 94,53113 Bonn 10963 Berlin. Germany Germany,Tel 49 0 228 99 535 0 Tel 49 0 30 18 535 0. Fax 49 0 228 99 535 3500 Fax 49 0 30 18 535 2501,poststelle bmz bund de. www bmz de,The priorities of,German development policy. More effectiveness,More visibility,More commitment. More private sector,More education,More democracy,Dirk Niebel Gudrun Kopp Hans J rgen Beerfeltz. Federal Minister for Economic Parliamentary State Secretary to State Secretary of the Federal. Cooperation and Development the Federal Minister for Economic Ministry for Economic Cooperation. Cooperation and Development and Development,www bmz de.
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