3. Strengthening national ecosystems to support triangular co-operation
This chapter explores the national ecosystems that can help support the use of triangular co-operation at country level. It presents a framework developed by the Islamic Development Bank that rests on seven key institutional pillars that can bolster the use of South-South and triangular co-operation. The chapter also highlights examples of how countries are establishing these pillars in their various national contexts. Looking ahead, it calls on partners to invest in building up their national ecosystems to scale up triangular co-operation.
The BAPA+40 Outcome Document, adopted at the Second High-level United Nations (UN) Conference on South-South Cooperation in 2019, acknowledges the growing importance and increasing complexity, scale and sophistication of South-South and triangular co-operation. The document calls for strengthening national policies and mechanisms around these modalities to improve policy co-ordination, knowledge sharing and evaluation, and learning.
In recognition of the need to strengthen national mechanisms, the Islamic Development Bank (IsDB) and South Centre (2019[1]) have developed a framework around seven key institutional pillars constituting national ecosystems that can bolster the use of South-South and triangular co-operation at the national level (Figure 3.1). The framework was designed primarily for providers of South-South co-operation and triangular co-operation, but is also relevant for providers of official development assistance (ODA).
Source: Islamic Development Bank and South Centre (2019[1]), Developing National Ecosystems for South-South and Triangular Cooperation to Achieve Agenda 2030 for Sustainable Development, https://www.isdb.org/reverse-linkage/developing-national-ecosystems-for-south-south-and-triangular-cooperation-to-achieve-agenda-2030-for-sustainable-development.
While there is no one-size-fits-all approach to delivering triangular co-operation, these pillars point to some institutional elements that can assist in its delivery. Given that ecosystems are complex and interconnected systems, the pillars should also be viewed as interlinked and mutually reinforcing individually. The seven pillars in the IsDB and South Centre framework briefly entail the following:
1. Political will at the highest governmental levels is vital to ensure that South-South and triangular co-operation are included in the national development strategy and mainstreamed into the national consciousness and relevant legislative and regulatory instruments.
2. National strategies that include South-South and triangular co-operation can help governments identify their priority areas as well as potential gaps and developmental needs that they could address, both as providers and beneficiaries, through South-South and triangular co-operation.
3. Information bases can assist countries to build up vital knowledge on the modality, helping to ensure South-South and triangular co-operation are used in a strategic manner. For example, mapping information on the expertise that countries have to offer to other countries (as pivotal partners) and the expertise that countries require for national progress (as beneficiary partners) can make it easier to engage in strategic triangular partnerships, particularly if this information is made easily accessible.
4. Connected actors are important to the functioning of such ecosystems. Bringing together the different stakeholders across government, civil society, academia and the private sector that engage in or are interested in engaging in triangular co-operation can help raise awareness, enhance co-ordination and strengthen a country’s ability to engage in the modality.
5. A national body (department or unit) for South-South and triangular co-operation can facilitate increased co-ordination of national stakeholders and facilitate co-operation among countries through institutional arrangements that guide national South-South and triangular co-operation efforts and mobilise external and internal resources.
6. Financing mechanisms can bring in more resources and domestic contributions, including in-kind contributions, for South-South and triangular co-operation activities. Contributions can also be raised at the regional and international levels.
7. Performance management processes can help leverage the experience gained and lessons learned and increase the efficiency and benefit of South-South and triangular co-operation for all stakeholders.
Pillar 1: Political will
Developing countries recognise that South-South and triangular co-operation have contributed to advancing economic and social development for their own citizens and have supported progress towards the Sustainable Development Goals (SDGs). However, for a country to fully engage in South-South and triangular co-operation, political will from the highest national authorities is also indispensable and key to turning policy commitments into action.
At the national level, governments have worked to promote political will in South-South and triangular co-operation through political declarations and statements that have then been translated into policies, and legal frameworks, and in turn can translate into actions and specific South-South and triangular co-operation initiatives. The government of Morocco is a good illustration of how political will can play a key role in a country’s engagement. The 2011 Moroccan constitution explicitly calls for reinforcing South-South with a strong focus on co-operating with African countries (Kingdom of Morocco, 2011[2]). King Mohammed VI is also supportive of the concept, and South-South co-operation is one of the main pillars of Morocco’s foreign policy.
Mexico is another good example of high-level political will. Its 2011 Law on International Co-operation for Development Engagement, which provides the legal basis and a comprehensive framework for Mexico’s development co-operation system, explicitly endorses engagement in triangular co-operation (OECD, 2019[3]).
Pillar 2: National strategies
By ensuring that national strategies recognise triangular co-operation (TrC) as a key modality for supporting sustainable development and creating specific policies and guidelines for using TrC, countries can better identify where it might best be deployed and also raise key stakeholders’ awareness of the modality. National strategies can inform stakeholders where TrC might be best used and identify partners they may want to engage with (all three types of partners), the issues they may want to support (as facilitator partners), the expertise they have to share (as pivotal partners), and where external expertise is needed to tackle national development challenges (as beneficiary partners).
Indonesia is a good example. The president’s nine goals national development agenda, Nawa Cita, recognises South-South and triangular co-operation as important modalities for achieving national objectives. The country’s 2020-24 National Medium-Term Development Plan also references it as a modality to enhance development co-operation (Government of Indonesia, 2020[4]).
Botswana also has an explicit South-South and triangular co-operation strategy that identifies the country’s political governance, macroeconomic management, beef production, animal health, tourism and mining as areas where its experiences could be shared with others. The Botswana's Ministry of International Affairs and Cooperation, its primary co-ordinating agency, manages the strategy (OECD, 2022[5]). Likewise, Brazil has issued a specific guideline for the design, co-ordination and management of triangular co-operation initiatives (Brazilian Cooperation Agency, 2019[6]).
As part of its foreign policy of regional integration and development, Argentina also has a specific strategy for South-South and triangular co-operation that recognises the principle of horizontality and non-interference. The guidelines for its General Directorate for International Cooperation also include South-South co-operation and triangular co-operation (Argentine Fund For Horizontal Cooperation, 2010[7]).
The Palestinian Authority has developed a framework of international co-operation for development. The Palestinian International Cooperation Agency (PICA) co-ordinates and organises the Palestinian development process, which includes the implementation of co-operation programmes in line with South-South co-operation principles and the 2030 Agenda (Giner, 2018[8]). According to the UN Office for South-South Cooperation, “all PICA working areas aim to contribute to the global development agenda; each field is committed to accomplish one or more SDGs” (Giner, 2018[8]).
While some countries include triangular co-operation in their national strategies or develop specific guidelines, many still do not. A 2018 study by the UN Economic and Social Commission for Asia and the Pacific found that some countries in the region have developed international co-operation strategies covering South-South and triangular co-operation, but few have incorporated stand-alone policies or regulations exclusively dedicated to South-South and triangular co-operation (UNESCAP, 2018[9]).
Similarly, some DAC providers of ODA mention triangular co-operation in their international development co-operation strategies as does, for instance, the European Union in its New European Consensus for Development (European Union, 2017[10]). Very few, however, have dedicated policies or strategies on triangular co-operation to guide their efforts. Germany is an exception: It published a strategy in 2013 that was updated in 2022 after a comprehensive evaluation of Germany’s triangular co-operation portfolio (BMZ, 2022[11]). (Annex A provides more detail)
Pillar 3: Information bases
A solid information base can help countries build up vital knowledge on South-South and triangular co-operation and ensure the modality is deployed in strategic manner. A solid knowledge management system should bring together information on the county’s national capabilities and expertise that it could share with others as a pivotal partner and on critical issues within the country that could benefit from external expertise from others (as beneficiary). Such a system could also bring together all existing policies and guidelines on triangular co-operation; information on any programmes and funds that deploy triangular co-operation; and key data on the resources disbursed, partners engaged, issues addressed, and results delivered by the modality (Pillar 7: Performance management). (Chapter 2 discusses the need for improved monitoring and reporting of triangular co-operation activities.) This information can help build knowledge on how best to strategically deploy the modality and be used to raise awareness of South-South and triangular co-operation among a wider set of stakeholders.
Information provided by developing countries regarding the existence of a policy or regulatory framework guiding South-South co-operation and triangular co-operation activities is often limited, as noted in a UN working paper (UNESCAP, 2018[9]). A recent OECD study of triangular co-operation in Africa also found that despite positive trends in the use of TrC on the continent, stakeholders had limited knowledge on the size, use and impact of triangular co-operation (OECD, 2022[5]). The reasons for this limited knowledge base, according to the study, include unclear understanding of triangular co-operation projects, limited reporting on country cases and a lack of policy literature on triangular co-operation. The report suggested greater awareness raising to improve knowledge on the modality at the regional level.
Malaysia is a good example of a country that has built a solid information base on the expertise it has to offer to other countries as a pivotal partner in triangular co-operation. Malaysia’s multitude of relevant resource centres have a wealth of expertise and knowledge to share with other countries around Malaysia’s key economic sectors. With the support of the IsDB, Malaysia has mapped these resources, which include competent institutions with proven and transferable knowledge and expertise and experience in international collaborations and partnerships. This mapping makes it easy for triangular co-operation partners – either potential facilitators or beneficiaries – to engage with Malaysia as it gives them knowledge of what the country has to offer in expertise to share (Box A.6. in Annex A).
IsDB, through its mapping of Resource Centers program, supported seven of its member countries namely Indonesia, Malaysia, Morocco, Pakistan, Palestinian Authority, Tunisia and Türkiye to identify institutions that have accumulated expertise and transferable developmental solutions. So far, the IsDB mapped more than 250 providers of expertise from public, private and non-governmental sectors in the seven countries.
Pillar 4: Connected actors
There is a multiplicity of actors who come together to undertake South-South and triangular co-operation initiatives starting from their conceptualisation and design and then their implementation and follow-up. These actors may include governments, government policy makers, national implementing and co-ordination agencies, local communities, the private sector, and academia. As noted in Chapter 2, a large share of triangular co-operation projects involve non-state actors. Enabling these actors to come together can help to co-ordinate and harmonise their engagement in triangular co-operation and greatly augment the ability of countries to engage in this modality as both providers and beneficiaries.
The United States and India, for example, jointly support the Self-Employed Women's Association, an eminent women’s organisation in India to share its expertise and knowledge to contribute to women’s economic empowerment in Afghanistan. Similarly, Portugal has supported Brazil’s research institutes to work with the government of Mozambique and research institutes in Mozambique to identify potential impacts of climate change on coffee production and to seek innovative solutions to sustainable agricultural production (Box A.1. in Annex A).
Another example is Cuba. For its health aid programmes, Cuba utilises a host of connected actors. It usually enters into a bilateral agreement with partners that includes agreeing on the number of Cuban doctors to be deployed and the number of medical scholarships to be offered. The Cuban doctors generally work on two-year contracts. The host country usually provides accommodation, food, the workplace and a monthly allowance, and the Cuban government maintains the doctors’ regular salaries. Following this model, countries across Latin America, Africa and Asia have greatly benefited from Cuban collaboration over the decades.
Keeping stakeholders regularly informed of triangular co-operation opportunities through communication and dialogue is key. Building a network of potential partners to engage in triangular co-operation, particularly in pivotal and beneficiary partner countries, can also help to map out the expertise within a country that could be shared. This pillar of connected actors is closely linked to ensuring information bases are in place (Pillar 3: Information bases.
Pillar 5: A national body, agency, department or unit
The existence of an institutional set-up is a very important pillar for the proper functioning of national ecosystems for South-South and triangular co-operation. Establishing a national body, department or unit for these activities or in the case of official development co-operation providers, assigning responsibility for triangular co-operation to a department or unit can help facilitate triangular co-operation. Such a body, department or unit can provide policy guidance and co-ordination for all stakeholders engaged in both domestic and external triangular co-operation. It can also collect and disseminate important data (Pillar 4: Connected actors) relating to triangular co-operation and promote awareness about triangular initiatives.
A good example of such a national body is the Tunisian Agency for Technical Cooperation (ATCT), which was created in 1972 as the government institution responsible for implementing the national policy of technical co-operation to respond to the needs of developing countries. One of the agency’s four key missions is the promotion of South-South technical co-operation and trilateral co-operation. ATCT has consistently worked since its inception to build win-win partnerships with different countries (especially Arab and African countries) and with regional and international organisations to engage in South-South and triangular co-operation activities.
In Brazil, two of the Brazilian Cooperation Agency’s seven divisions are responsible for triangular co-operation, one with bilateral partners and the other with multilateral organisations (Annex A). The Indonesia government has established a National Coordination Team for South-South and Triangular co-operation1 (Annex A). India’s Development Partnership Administration (DPA) is situated within the Ministry of External Affairs and co-ordinates India’s bilateral, regional and triangular development co-operation. Comprised of three sections, each with a specific focus area, the DPA is tasked with streamlining the delivery of India’s South-South and triangular co-operation projects from conception to launch, execution and completion, which leads to efficient implementation of projects in close co-operation with and the facilitation of its partner countries.
The configuration of national bodies for South-South co-operation and triangular co-operation varies across countries (Figure 3.2). This is also true across providers of ODA, which have differing organisational set-ups. Some countries opt for a hierarchical approach to institution building by designating a particular ministry to be the directorate for South-South co-operation and triangular co-operation while other states have developed a less-centralised approach that incorporates all connected actors in the decision-making processes under the guidance of a department or agency that may or may not be dependent on a nodal ministry. Still others have chosen to establish autonomous agencies for the development of South-South and triangular co-operation activities.
These examples illustrate the range of specialised institutions, bodies and agencies dealing with South-South co-operation and triangular co-operation. They support developing countries’ efforts to streamline their co-operation activities, and their role in aligning co-operation with countries’ national development priorities and the development needs of partner countries. Regardless of how they are designed, however, developing countries would benefit from having comprehensive institutional frameworks for South-South co-operation and triangular co-operation initiatives aligned with their national strategies, including for regional and subregional co-operation.
Source: Islamic Development Bank and South Centre (2019[1]), Developing National Ecosystems for South-South and Triangular Cooperation to Achieve Agenda 2030 for Sustainable Development, https://www.isdb.org/reverse-linkage/developing-national-ecosystems-for-south-south-and-triangular-cooperation-to-achieve-agenda-2030-for-sustainable-development.
Pillar 6: Financing mechanisms
Triangular co-operation draws on an array of different types of resources, often from all partners engaged in the programme or project. Establishing financing mechanisms that are transparent and flexible and can co-ordinate different types of resources from multiple actors is vital to enabling triangular co-operation to function well and be well resourced.
Indonesia’s South-South and triangular co-operation activities, for example, are funded through several different mechanisms including state budget funding; specific triangular partnership funds and international development partners; cost sharing with the beneficiary countries; partnership with the private sector; and trust funds such as the World Bank Group’s South-South Facility. Governments can also provide financial incentives rather than explicit financing mechanisms to encourage national stakeholders to engage in South-South and triangular co-operation, these can include providing tax incentives for engagement.
Evidence on financing mechanisms for triangular co-operation is scarce, but recent research by the OECD and the IsDB has identified four common funding mechanisms used in triangular co-operation initiatives. These are:
Parallel funding. A facilitator/s, pivotal partner/s and in some cases beneficiaries provide resources to the same programme or project. Partners work along an agreed set of project objectives and deliver on components of the project or programme. No financing is transferred between any of the partners.
Co-funding. A single facilitator transfers funds directly to a pivotal partner/s for a given project or programme and/or beneficiary. Pivotal partners (and in some cases beneficiaries) then contribute their own share of resources to the project via parallel funding (financing or in-kind contributions).
Joint funding. A facilitator/s and pivotal partner/s (and beneficiaries in some cases) all contribute financial resources to a joint fund that is governed by one or all of the partners. The joint fund then distributes funds according to the project requirements.
Pooled funding. Multiple facilitators pool resources via either one of the facilitators or via another additional partner that then distributes the funds to a pivotal/s and/or beneficiary partner/s. Pivotal partners and beneficiaries can contribute their own share of resources to the project via parallel funding (financial or in-kind contributions).
This list of mechanisms is not exhaustive, and some partners in TrC arrangements deploy more than one funding mechanism for a given programme and fund. Chile provides a good example of joint funding. The Chile-Mexico Fund supports triangular co-operation projects and is also open to bilateral co-operation projects. The fund has a fixed cost sharing model, with Chile and Mexico providing USD 1 million each annually into the fund. Funding is allocated to projects via an annual call for proposals that takes place at the same time in Chile and Mexico. Bilateral and triangular co-operation projects are selected, and the projects receive the joint funding. A joint commission including representatives of the Chilean and Mexican co-operation agencies is responsible for the fund’s governance (AGCID, 2022[12]). The fund is part of a wider strategic partnership agreement that Chile and Mexico signed in 2006 (Table 3.1).
Another financing mechanism example is provided by Germany. Its Regional Fund for Triangular Cooperation with Partners in Latin America and the Caribbean (LAC Fund) and its Regional Fund for Triangular Cooperation with Asia employ co-funding and parallel funding. The LAC Fund has a fixed cost sharing model whereby the German contribution to a project’s funding is limited to no more than 50%. Experience over the past ten years has shown that on average, Germany provided 40% of the funding and the pivotal and beneficiary countries provided 60% of TrC projects and programmes (BMZ, 2022[11]). The fund for Asia does not have a fixed cost sharing model, but administrators indicate that preference is given to projects that anticipate nearly equal contributions. Portugal recently established a facility for triangular co-operation projects between Latin America and Africa that has dedicated funding mechanism.
Pillar 7: Performance management
To assess whether triangular co-operation is delivering results and meeting its objectives, triangular projects and programmes must be regularly monitored and evaluated. In 2018, the UN Secretary-General said that “many United Nations entities encounter difficulties in monitoring and evaluating their support for South-South initiatives, but some have designed methodologies to assess performance and measure the impact of their various interventions” (UN, 2018, p. 13[14]). These methodologies are “based on their common vision and complementary approaches for delivering on the Sustainable Development Goals” (UN, 2018, p. 13[14]). Developing countries face similar challenges in their efforts to identify the overall contribution of South-South and triangular co-operation to meeting their development objectives.
Many countries have developed considerable project-based expertise on performance management and continue to develop their national practices in line with their identified priorities. But given developing countries’ different national circumstances and development priorities, there is a need to explore new and innovative means for performance management at the national level.
A number of countries have engaged in various strategies for South-South and triangular co-operation by categorising financial or in-kind contributions such as inputs, outputs and outcomes of certain projects (Di Ciommo, 2017[15]). The Brazilian Cooperation Agency’s (2017[16]) Manual of South-South Technical Cooperation Management is a good example of guidance and processes for assessing the performance of triangular co-operation. The manual offers detailed guidance on how to appraise and monitor Brazil’s projects and programmes and recommends that all partners be directly involved in the planning of operations and monitoring and evaluation of results. Such co-ordination allows challenges and difficulties to be identified at every stage of a project. Brazil also established the Project Steering Committee as one of the main mechanisms for managing and co-ordinating its South-South and triangular partnerships. The committee generally includes a focal point from each partner country and discusses performance and actions to take for project co-ordination, technical implementation, and financial and administrative execution (Brazilian Coopearation Agency, 2017[16]).
India also monitors and reviews projects and programmes, including triangular co-operation. For example, its Future India Triangular Training programme, supported by the United States Agency for International Development, was reviewed to assess the impact of the programme (Nandi and Kallur, 2018[17]). The Ministry of External Affairs manages the reviews, and partners are also engaged in the reviews. For instance, Bangladesh recently sent a multi-ministerial delegation to India to review South-South co-operation projects in Bangladesh, where exchanges happen regularly.
As illustrated by India and Brazil, engaging all partners in the monitoring and evaluation is a key element in the performance management pillar of a strong national ecosystem for triangular co-operation. The OECD Toolkit for Identifying, Monitoring and Evaluating the Value Added of Triangular Co-operation also provides useful guidance on the process and potential indicators for evaluating triangular co-operation (OECD, 2018[18]). The toolkit includes guidance on how to capture results that contribute towards a programme’s development objectives as well as the results that contribute towards the programme’s partnership objectives as the desire to build partnerships is an explicit part of engaging in triangular co-operation.
The seven pillars discussed in this chapter underpin an ecosystem that can help to strengthen the delivery of triangular co-operation at the national level. Some pillars may be more relevant for some countries than others depending on the national context, and the way the pillars are implemented will also vary according to context.
To operationalize the framework of national ecosystems for South-South and triangular co-operation, the IsDB formulated the ”Capacity Development Program for Enhancing National Ecosystems for South South and Triangular Co-operation (SSTrC) in IsDB Member Countries”, which was approved in December 2019 (UNOSSC, 2020[19]). This was followed by developing the “Assessment Framework for National Ecosystems for SSTrC”, which was released in September 2020 (IsDB, 2020[20]). A number of IsDB member countries are benefitting from the Bank’s supporting to develop their ecosystems such as Cameroun, Guinea, Pakistan or Tunisia.
Looking ahead, it is vital that countries invest in strengthening their national ecosystems to support triangular co-operation. Investing in the seven pillars can provide high-level political support for the modality and help ensure that South-South and triangular co-operation are deployed strategically in support of national and international development priorities. Such investment can also help ensure that triangular co-operation draws on the full wealth of expertise within a country, leverages all partners resources and has a high impact.
Establishing a South-South and triangular co-operation ecosystem entails two clusters of interventions: carrying out activities that establish the system itself (such as enhancing the capacity of a South-South and triangular co-operation agency, building information bases, training South-South and triangular co-operation actors) and undertaking specific South-South and triangular co-operation transactions between the country concerned and other countries.
References
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[7] Argentine Fund For Horizontal Cooperation (2010), South-South and Triangular Cooperation of Argentina, https://www.cbd.int/financial/southsouth/argentina-2010.pdf.
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Note
← 1. The team is comprised of the Ministry of National Development Planning (Bappenas), the Ministry of Foreign Affairs, the Ministry of Finance and the State Secretariat.