South-South and Triangular Cooperation
Remarks by
Haruhiko Kuroda
President
Asian Development Bank
At the Third-High Level Forum on Aid Effectiveness
4 September 2008
Accra, Ghana
Panel Discussion on “The Unfinished Aid Effectiveness Agenda”
Good afternoon Ladies and Gentlemen.
Introduction
It is my pleasure to be here today and talk to you about a very important aspect of the aid
effectiveness agenda, namely South-South and Triangular Cooperation.
This form of cooperation refers to planned and formal cooperation between partner countries
with the assistance of donors.
This is an area of growing interest and of increasing importance.
Efforts to prepare for HLF 3
The Asian Development Bank, working closely with its development partners, organized an
Asian Regional Forum on Aid Effectiveness in 2006 in Manila and also organized regional
consultations earlier this year to ensure that key messages from our region related to the aid
effectiveness agenda were brought to HLF 3. Both the Regional Forum and the consultations
brought together partner countries, civil society and the donor communities to share
experiences, identify constraints and recommend actions to improve aid effectiveness.
The Relevance of South-South Cooperation to Partner Countries
One of the key messages that emerged from the discussions at these meetings was that South-
South Cooperation was of great relevance and importance in promoting aid effectiveness.
There was a determination on the part of the partner countries to take forward sub-regional
dialogue to advance the implementation of the Paris Declaration.
In this regard, several suggestions were made to develop mechanisms to promote dialogue
between partner countries, to learn from each other’s experience, and to jointly develop
solutions to common problems.
Partner countries expressed the view that such cooperation was more attuned to their needs
and demands, was more responsive to country priorities, and displayed better knowledge of
country and regional perspectives. It was also strongly advocated that donors can help in this
process by providing timely assistance and support.
Following on from these suggestions ADB has been actively promoting South-South
Cooperation. We have been assisting partner countries in promoting the sharing of their
experiences.
Some Examples of Efforts at Promoting South-South Cooperation
This has included the sharing of experiences in the localization of the Paris principles, as has
been done in Vietnam, Lao PDR and Cambodia; the adoption of the Pacific Principles on Aid
Effectiveness for the Pacific Island states; and efforts at capacity building for MfDR and in the
monitoring and evaluation of aid programs in South Asia.
The Community of Practice for MfDR, which is managed by partner countries with logistical and
financial support from the Asian Development Bank, provides an excellent example of South-South and Triangular Cooperation.
Two specific examples of cooperation that have resulted from the Community of Practice on
MfDR are i) between Afghanistan and Malaysia and ii) between Nepal, Pakistan and Sri Lanka
in helping build capacity for results management. (The latter example has also been displayed
in the adjoining Marketplace of Ideas.)
South-South Cooperation has also been demonstrated between Cambodia, Lao People’s
Democratic Republic and Vietnam in developing a joint approach on mutual accountability.
South-South Cooperation and Capacity Development
Looking beyond HLF-3, a priority for South-South Cooperation for promoting aid effectiveness
must be capacity development. Weak statistical and staff capacity are major constraints to
achieving aid and development effectiveness and one of the major benefits of South-South
Cooperation is in helping to develop capacity.
Learning best practices and experiences from one another including from emerging and new
donors is being regarded by many partner countries as the best way to nurture the capacity
building process.
Donors can assist in this process by making a concerted effort to support countries in assessing
capacity needs and promoting the exchange of information on best practices between partner
countries. ADB is very well placed to do so, and has a very strong record in promoting
cooperation between its partner countries.
Regional Cooperation as a Special Case of South-South Cooperation
Regional and sub-regional cooperation is one very particular form of South-South Cooperation
and ADB has been promoting such cooperation including in the Greater Mekong Subregion
(GMS), the Central Asia Regional Economic Cooperation (CAREC), and in sub-regional country
groupings in South Asia.
This assistance at present includes support for infrastructure, financial development, and
governance, but has also provided a means for countries within each grouping to learn from
each other’s experience and thereby promote capacity development and the upgrading and use
of country systems.
Regional cooperation initiatives are under strong country ownership. They expand the platform
for participating countries’ economic growth and poverty reduction. They also provide a unique
way of approaching and addressing some very key problems, such as cross border health
issues and environmental concerns, by allowing countries to share information and advice in a
relevant and timely manner.
The SARS epidemic was successfully addressed through sub-regional exchange of experiences
and research. Environmental problems such as the haze caused by large scale forest fires in
Southeast Asia have also been addressed through sub-regional efforts.
Conclusion
South-South and Triangular Cooperation is clearly a way forward for the aid effectiveness
agenda and donors can play a major role in helping partner countries come together and
address common problems. In addition, I would like to propose that regional and sub-regional
cooperation also be incorporated as an integral part of the aid effectiveness agenda to address
some of the key concerns facing partner countries including crosscutting issues such as
environment, health and gender.
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