Both the development agenda and the variety of actors that promote it through international cooperation have evolved remarkably in recent decades. As a result, many of the countries around us have embarked on reforming their cooperation models in order to adapt them to this new context and make them more effective when it comes to contributing to commitments such as the Development Goals Sustainable.
So has Spain. The new Cooperation Law Project, approved by the Council of Ministers on May 31, was born with the aim of modernizing the sector. However, despite the fact that it undoubtedly incorporates improvements, it still has not resized the sector sufficiently to crystallize the considerable potential with which the country could contribute to development objectives.
This takes place in a context that should be taken into account. The reform comes much later than in the rest of the European countries, and while the strategy pursued by countries such as Germany or France has sought to unite a wide variety of national actors to maximize the achievement of objectives and reposition the country on the new map of cooperation, Spain shows that it knows how to compartmentalize much more than to add and unite efforts.
Proof of this is the marginal role given to the private sector. This is striking because it reflects how, through this law, Spain does not choose to live up to what the cooperation of the coming years requires, but to submit to the continuity of what came before. Why is the private sector much more important in this foreign policy of the present and the future? We explain it through two very different examples, of great magnitude, but that answer that question in a simple way and well illustrate both the nature of the challenges and the solutions.
To accompany the process of generating economic activity and employment, the private sector is in an unbeatable position
The first refers to Africa. Today, more than 60% of the African population is under 25 years of age. The lack of work, particularly among the youngest and women, continues to be one of the most obvious causes of poverty, insecurity and migration. From all this, a series of needs emerge that we must attend to because they allude directly to a framework of human values in which we believe and to which we are committed. But doing it well implies going far beyond the role that aid has so often played. It involves knowing how to identify training needs consistent with the labor market; promote the conditions to generate decent jobs; encourage business initiatives; formalize social dialogue, and develop plans to encourage companies and associations.
To accompany this process of generating economic activity and employment, the private sector is in an unbeatable position. This is the logic that, furthermore, is shared by the European Commission, which says: “The private sector is an important engine of growth, job creation and poverty reduction in partner countries, which is why we involve it increasingly in our development efforts.”
The second example looks at the Global Gateway, the great European commitment presented in December 2021 to promote genuinely transformative foreign action, through the investment of up to 300,000 million euros in areas such as digital, transport and energy, health , education and research around the world. This initiative is consistent both with the global agenda and with that of giving the EU a greater role, including its member countries. This mechanism proposes an unprecedented global wiring effort to address challenges ranging from climate change to security in supply chains.
Both examples illustrate well why the role of the private sector in development cooperation is not an occurrence or a fad, but rather a real need that derives from the evolution of the development agenda itself and includes issues in which its knowledge and experience is simply irreplaceable.
This, moreover, is critical to address two of the great weaknesses of the Spanish cooperation model: its lack of structure and the limited capacity to manage funds. How could the private sector add value?
Regarding the first we know two things. That we are not going to become Germany or France in terms of availability of resources and institutional experience accumulated over more than 60 years of development cooperation, but that we should at least have a greater presence at a global, European and, without a doubt, , in partner countries. Despite the fact that this is a central aspect recognized by the new law, seeking to reinforce, through a new Statute, the functions and capacities of coordination, programming and dialogue of the AECID to turn it into a much more effective institution, we would gain even more by taking advantage of the knowledge of Spanish consultants specialized in this sector with extensive experience. They could have a great multiplier impact, for example, through capacity building and process streamlining tasks, providing technical responses, supporting harmonization with EU standards and tools, generating solutions and promoting best practices of the Spanish model. in partner countries.
It would be extremely useful to include a representative of the private sector in the Higher Council for Cooperation for Sustainable Development and Global Solidarity
With regard to the second – fund management – Spain should also have a greater role. European delegated cooperation is a good example. Although the country has increased the use of this type of funds, it is still very far from other European agencies (mainly France and Germany). This example, a priori of little relevance, is enormously explanatory regarding the (wasted) potential of what should be a great ecosystem in which Spanish foreign action participates, with the capacity to manage financing, identify specific areas and projects, and contribute in a much more proactive and effective way to development.
That is why it would be extremely useful to include a representative from the private sector in the Superior Council for Cooperation for Sustainable Development and Global Solidarity, able to guide on specific aspects in which he is especially well trained. Let us not forget that the bulk of technological and technical capacity and experience in the areas in which third countries could benefit from our development cooperation (renewable energy, water management, agricultural development), resides in the highly professional and efficient private sector.
We are concerned that Spain moves away from the reformed models of European cooperation and does not play the global role that we believe it should play in that new map that we referred to at the beginning of this article. Moreover, that the new law is orphaned of the necessary ambition to promote great solidarity in fact, not just in words.
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