MDG 8: Develop a Global Partnership for Development

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1 182 Key Indicators for Asia and the Pacific 2015 MDG 8: Develop a Global Partnership for Development Millennium Development Goal (MDG) 8 has six targets. The first three and last are the focus of this section. The first three targets deal with the provision of official development assistance (ODA), while the last is about the availability of new technologies. 8.A: Develop further an open, rule-based, predictable, nondiscriminatory trading and financial system. 8.B: Address the special needs of the least-developed countries. 8.C: Address the special needs of landlocked developing countries and small island developing states. 8.F: In cooperation with the private sector, make available the benefits of new technologies, especially information and communications. The related tables for the indicators of ICT are presented in Part III of the publication under the theme Transport and Communications Snapshots Net ODA as percentage of gross national income (GNI) exceeded 0.7% for only five OECD Development Assistance Committee countries in 2014 and net ODA to least-developed countries (LDCs) as a proportion of their GNI has declined in most landlocked and small island economies. Access to mobile-cellular phones has risen phenomenally in the Asia and Pacific region, with 3.7 billion mobile subscriptions in 2014 compared with 1.6 million in 1990 and 222 million in Internet access has also increased significantly in the region, but there are wide gaps across economies with more than one third of the economies in the Asia and Pacific region still having internet access below 20%. Progress Only five Organisation for Economic Cooperation and Development Development Assistance Committee donor countries exceeded the 0.7% mark of net ODA as percentage of GNI. Figure 8.1 illustrates net ODA as percentage of GNI for 2014 and net ODA to least-developed countries as percentage of GNI for The UN has suggested that donor countries devote 0.7% of GNI for ODA to the developing world. Only five countries exceeded this mark in 2014: Denmark, Luxembourg, Norway, Sweden, and the United Kingdom. While Denmark, Luxembourg, Norway, and Sweden have consistently exceeded 0.7% mark for more than two decades, the United Kingdom s net ODA to GNI reached 0.7% for the first time in Out of the total ODA, these countries also allocated 0.2% or more to the least-developed countries. All other countries allocation of total ODA was less than 0.7% of their GNI and less than 0.2% of their GNI to the least-developed countries.

2 Goal 8: Develop a Global Partnership for Development 183 Sweden Luxembourg Norway Denmark United Kingdom The Netherlands Finland Switzerland Belgium Germany Ireland France Australia New Zealand Austria Canada Japan Portugal United States Italy Spain Korea, Rep. of Greece Figure 8.1: Net ODA, 2014 and Net ODA to LDCs, 2013 (as % of OECD/DAC donors GNI) Net ODA to LDCs Net ODA Figure 8.2: Donor Allocation to Basic Social Services, 2013 (percentage of ODA) United States United Kingdom New Zealand Canada Luxembourg Ireland Spain Australia Norway Switzerland Sweden The Netherlands Italy Korea, Rep. of Finland Belgium Germany Denmark France Portugal Japan Austria Greece ODA = official development assistance. Source: Table 8.2. Millennium Development Goals DAC = Development Assistance Committee, GNI = gross national income, LDCs = least developed countries, ODA = official development assistance, OECD = Organisation for Economic Co-operation and Development. Sources: Table 8.1. Allocation of bilateral ODA to basic social services by most donors was below 20%. Figure 8.2 shows the proportion of ODA from donor economies that has been allocated to basic social services education, primary health care, nutrition, safe water, and sanitation. In 2013, most donor economies (16 out of 23) have allocated less than 20% of bilateral ODA to basic social services. The United States (42%) has led the other donors, viz., Canada (27.3%), Ireland (21.4%), Luxembourg (23.3%), New Zealand (28.0%), Spain (20.7%), and the United Kingdom (29.8%) whose allocation of ODA for basic social services exceeded 20% of total ODA. ODA as a proportion of GNI has been declining since 2000 in most landlocked and small island economies. The Asia and Pacific region includes 12 landlocked developing economies and 13 small island economies. Landlocked economies are often disadvantaged by high transport costs due to lack of direct access to port facilities. Small island economies usually face development challenges due to narrow resource bases, fragile natural environments, lack of economies of scale in production and domestic markets, and high transport costs in international trade. The ODA-to- GNI ratio indicates the importance of ODA relative to the size of the economy. Among the landlocked economies, Afghanistan continued to be the top recipient in terms of ODA as share of GNI. As of 2013, ODA was about a quarter of Afghanistan s GNI, which is a considerable decline from 40% to 50% during 2005 to 2010 (Figure 8.3). For the other landlocked economies receiving ODA, the ODA-to-GNI ratios are all below 10% in 2013, and these ratios have also fallen from their levels in Compared with landlocked economies, except for Afghanistan, small island economies generally

3 184 Key Indicators for Asia and the Pacific Figure 8.3: ODA Received in Landlocked Developing Countries as Percentage of their GNIs (%) Figure 8.4: ODA Received in Small Island Developing States as Percentage of their GNIs (%) Afghanistan Armenia Azerbaijan Bhutan Kazakhstan Kyrgyz Republic Lao PDR Mongolia Nepal Tajikistan Turkmenistan Uzbekistan Fiji Kiribati Maldives FSM Palau Papua New Guinea Solomon Islands Timor-Leste Tonga Vanuatu Marshall Islands Samoa Tuvalu GNI = gross national income, Lao PDR = Lao People's Democratic Republic, ODA = official development assistance. Source: Table 8.3. FSM = Federated States of Micronesia, GNI = gross national income, ODA = official development assistance. Source: Table 8.3. have much higher ODA-to-GNI ratios (Figure 8.4). In 2013, ODA-to-GNI ratios are about two-fifths for the Marshall Islands (43.0%), Tuvalu (42.5%), and the Federated States of Micronesia (39.5%), while about a third for Solomon Islands (30.0%) and a quarter for Kiribati (25.5%). Among the 13 island economies, the Maldives (1.2%) and Fiji (2.4%) have the lowest dependence on ODA (Figure 8.4). Phenomenal growth in access to mobile-cellular phones and internet is transforming the lives of the people in developing Asia. Technological innovations and falling prices in growing networks have led to a tremendous expansion of mobile-cellular services and internet access. The mobile technology is transforming the lives of the people and changing the ways in which they interact, communicate, share information, and transact business. Figure 8.5 presents estimated number of mobile-cellular and fixed telephone subscriptions per 100 inhabitants for economies in the Asia and Pacific region. The number of mobile phone subscriptions at 3.7 billion in 2014 was almost 17 times of the subscription base in 2000 while fixed phone subscriptions have started to decline. Twenty-two economies had mobile-cellular phone subscriptions exceeding their population, meaning more than 1 mobile-cellular subscription per person. Figure 8.5 also shows that in Asia and the Pacific, mobile-cellular phone subscriptions have completely out-paced the number of fixed-telephone subscriptions. The three economies with the largest total number of mobile-cellular phone subscriptions in 2014 are also the three most populous economies namely, the People s Republic of China (PRC), with a total subscriptions of 1.3 billion in 2014 (up from 85.3 million in 2000), India with 944 million in 2014 (up from just 3.6 million in 2000), and Indonesia with 319 million (up from 3.7 million in 2000). The per 100 subscription rates in 2014 in these three economies were 92 for the PRC, 74 for India, and

4 Goal 8: Develop a Global Partnership for Development 185 Figure 8.5: Fixed-Telephone and Mobile-Cellular Subscriptions per 100 Inhabitants, 2014 Hong Kong, China Maldives Kazakhstan Singapore Cambodia Malaysia Viet Nam Thailand Turkmenistan Kyrgyz Republic Australia Indonesia Georgia Japan Armenia Korea, Rep. of New Zealand Philippines Azerbaijan Brunei Darussalam Mongolia Sri Lanka Fiji Tajikistan PRC Palau Nepal Bhutan Bangladesh Afghanistan India Uzbekistan Pakistan Nauru Lao PDR Solomon Islands Tonga Vanuatu Timor-Leste Cook Islands Samoa Myanmar Papua New Guinea Tuvalu FSM Marshall Islands Kiribati Mobile-cellular Fixed-telephone 126 for Indonesia. Cambodia, with a subscription rate of 155 per 100 persons is among the top five along with Hong Kong, China; Kazakhstan; the Maldives; and Singapore. At the bottom of the graph mainly are the Pacific island economies, indicating the constraints in expanding mobile-cellular technology in these island economies. Likewise, the number of internet users has grown rapidly, but the gaps in access rates between the rich and the poor economies are still wide. Figure 8.6 shows the internet access per 100 population with the richer economies at the top of the graph having internet users exceeding 80 per 100 population while poorer countries at the bottom of the graph having access rates below 10 per 100 population. More than one third (17) of the 47 economies in the Asia and Pacific region still have internet access below 20%. Data issues and comparability Data on ODA are collected and verified by the Secretariat of the Development Assistance Committee of the Organisation for Economic Co-operation and Development from its members. Part of the difficulty in monitoring MDG 8 is the lack of quantitative targets in some areas. For the proportion of ODA allocated to basic social services, data are compiled on a project basis according to the most relevant sectors hence basic social services expenditures in other sectors are not captured. Most data on mobile, landline, and internet subscriptions come from questionnaires of the International Telecommunications Union (ITU) that are being sent to participating countries. Other information and reports are sourced from the ministries in-charge of telecommunications and ITU estimates. Millennium Development Goals FSM = Federated States of Micronesia, Lao PDR = Lao People's Democratic Republic, PRC = People's Republic of China. Source: Regional Table 5.9.

5 186 Key Indicators for Asia and the Pacific 2015 Figure 8.6: Internet Users per 100 Inhabitants, 2014 Japan New Zealand Australia Korea, Rep. of Singapore Hong Kong, China Brunei Darussalam Malaysia Azerbaijan Kazakhstan Nauru PRC Maldives Georgia Viet Nam Cook Islands Armenia Uzbekistan Fiji Tonga Philippines Tuvalu Thailand Bhutan FSM Kyrgyz Republic Mongolia Palau Sri Lanka Samoa Vanuatu India Tajikistan Indonesia Marshall Islands Nepal Lao PDR Pakistan Kiribati Turkmenistan Bangladesh Papua New Guinea Solomon Islands Cambodia Afghanistan Myanmar Timor-Leste Post 2015 agenda While the MDGs have provided an agenda for partnerships, the post-2015 development agenda is quite ambitious and will require even more challenges to meeting funding needs. Although the significance of ODA for middle-income economies has diminished, the role of ODA will undoubtedly be important for low-income economies in the post-2015 era given their limited capacities to raise public resources domestically. ODA could be catalytic in crowding-in other sources and building capacities. South-South ODA flows are also likely to increase in the coming years. ODA can provide a key role to improve public policies for social inclusion, sustainable development, and lessening the digital divide. Partnerships will have to be harnessed and the sustainable development agenda will have to be financed from more innovative and a diverse range of sources combining public, private, and joint financing that raise funds both internally and externally. FSM = Federated States of Micronesia, Lao PDR = Lao People's Democratic Republic, PRC = People's Republic of China. Source: Regional Table 5.9.

6 Goal 8: Develop a Global Partnership for Development Goal 8 Targets and Indicators 187 Table 8.1: Target 8.A Develop further an open, rule-based, predictable, non-discriminatory trading and financial system Development Assistance Committee Members Development Assistance Committee Members 8.1 Net ODA Total, as percentage of OECD/DAC donors gross national income Australia Austria Belgium Canada Denmark Finland France Germany Greece a Ireland Italy Japan Korea, Rep. of Luxembourg The Netherlands New Zealand Norway Portugal Spain Sweden Switzerland United Kingdom United States Net ODA to the least developed countries, as percentage of OECD/DAC donors gross national income Australia Austria Belgium Canada Denmark Finland France Germany Greece a Ireland Italy Japan Korea, Rep. of Luxembourg The Netherlands New Zealand Norway Portugal Spain Sweden Switzerland United Kingdom United States = data not available at cutoff date, = magnitude equals zero, DAC = Development Assistance Committee, ODA = official development assistance, OECD = Organisation for Economic Co-operation and Development. Millennium Development Goals a Greece is not an ADB member economy. Source: United Nations. Millennium Development Goals Indicators Database. (accessed 7 July 2015).

7 188 Key Indicators for Asia and the Pacific 2015 Goal 8 Targets and Indicators Table 8.2: Target 8.B Address the special needs of least developed countries Development Assistance Committee Members 8.2 Proportion of total bilateral, sector-allocable ODA of OECD/DAC donors to basic social services (basic education, primary health care, nutrition, safe water, and sanitation) Australia Austria Belgium Canada Denmark Finland France Germany Greece a Ireland Italy Japan Korea, Rep. of Luxembourg The Netherlands New Zealand Norway Portugal Spain Sweden Switzerland United Kingdom United States = data not available at cutoff date, = magnitude equals zero, DAC = Development Assistance Committee, ODA = official development assistance, OECD = Organisation for Economic Co-operation and Development. a Greece is not an ADB member economy. Source: United Nations. Millennium Development Goals Indicators Database. (accessed 7 July 2015).

8 Goal 8: Develop a Global Partnership for Development Goal 8 Targets and Indicators 189 Table 8.2: Target 8.B Address the special needs of least developed countries Development Assistance Committee Members 8.3 Proportion of bilateral official development assistance of OECD/DAC donors that is untied a Australia Austria Belgium Canada Denmark Finland France Germany Greece b Ireland Italy Japan Korea, Rep. of Luxembourg The Netherlands New Zealand Norway Portugal Spain Sweden Switzerland United Kingdom United States = data not available at cutoff date, DAC = Development Assistance Committee, OECD = Organisation for Economic Co-operation and Development. Millennium Development Goals a Data for exclude technical cooperation and administrative costs. Data for exclude administrative costs and in-donor refugee costs. b Greece is not an ADB member economy. Source: For : OECD (2015), Detailed aid statistics: Tying status of bilateral ODA, OECD International Development Statistics Database. org/ /data en. For : OECD (2015), Creditor Reporting System: Aid activities, OECD International Development Statistics Database.

9 190 Key Indicators for Asia and the Pacific 2015 Goal 8 Targets and Indicators Table 8.3: Target 8.C Address the special needs of landlocked developing countries and small island developing states ADB Regional Members 8.4 ODA received in landlocked developing countries and in small island developing states as a proportion of their gross national incomes Landlocked Developing Economies Afghanistan Armenia 0.13 (1991) Azerbaijan 0.60 (1993) Bhutan Kazakhstan 0.07 (1993) Kyrgyz Republic 0.91 (1992) Lao PDR Mongolia Nepal Tajikistan 0.62 (1992) Turkmenistan 0.97 (1993) Uzbekistan 0.01 (1992) Small Island Developing Economies Fiji Kiribati Maldives Marshall Islands Micronesia, Fed. States of (1993) Palau 0.01 (1992) Papua New Guinea Samoa Singapore Solomon Islands Timor-Leste Tonga Tuvalu Vanuatu = data not available at cutoff date, Lao PDR = Lao People s Democratic Republic, ODA = official development assistance. Source: United Nations. Millennium Development Goals Indicators Database. (accessed 7 July 2015).

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