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Triangular Cooperation Summary

Core Content

Triangular cooperation is a new form of development cooperation that involves a traditional donor (from the OECD's Development Assistance Committee), an emerging donor from the South, and a beneficiary country from the South. It is seen as a potential mechanism to enhance the effectiveness and efficiency of international development cooperation by leveraging the strengths of emerging donors and aligning aid with the needs of beneficiary countries.

Main Actors and Factors

• Traditional Donors: Comprise about two-thirds of the DAC membership, with Japan leading, followed by Germany, Spain, Canada, and others. Some multilateral institutions like the Asian Development Bank and UNDP also participate.
• Emerging Donors: Found in Africa, Asia, and Latin America, including countries like Egypt, China, Brazil, and Mexico. These donors bring new resources and experiences to the table.
• Beneficiary Countries: Typically less developed nations that have historically benefited from South-South cooperation. They gain from the involvement of emerging donors through cost reduction, cultural relevance, and continuity of expertise.

Opportunities

Triangular cooperation offers several opportunities for all parties involved:

• Traditional Donors:

  • Increase aid effectiveness by scaling up successful aid experiences.
  • Improve aid efficiency by using experts from emerging donors.
  • Create synergies through the comparative advantages of emerging donors.
  • Substitute aid programs with those from emerging donors.
  • Phase out cooperation with emerging countries in an orderly manner.
  • Build the capacity of emerging donor countries’ aid agencies.
  • Sensitize new donors on effective aid principles.

• Emerging Donors:

  • Scale up South-South cooperation by involving traditional donors.
  • Improve the quality of South-South cooperation through experience transfer.
  • Build their own capacity with the support of traditional donors.
  • Increase their visibility as donors.
  • Promote regional cooperation and integration.

• Beneficiary Countries:

  • Increase value for money by using less expensive experts.
  • Benefit from the similarity of development challenges with emerging donors.
  • Gain from linguistic and cultural affinities with emerging donors.
  • Maintain easier contact with emerging donor experts post-project.
  • Promote regional cooperation and integration.

Risks

Despite its potential, triangular cooperation carries several risks:

• Lowering quality standards: If emerging donors lack experience or capacity, the quality of assistance may decline.
• Neglecting beneficiary needs: If the cooperation is not aligned with the needs, priorities, and strategies of the beneficiary countries, it may not be effective.
• Rising transaction costs: Involving three actors increases the complexity of coordination, requiring common standards and procedures.
• Fragmentation of the aid architecture: The growing number of actors may complicate harmonization of approaches and practices.

Ensuring Effectiveness

To promote triangular cooperation and ensure its effectiveness, the following strategies are recommended:

• Identify shared interests: Triangular cooperation should be based on mutual goals and commitments.
• Apply aid effectiveness principles: The Paris Declaration and Accra Action Plan principles, particularly ownership by beneficiary countries and managing for results, should be applied.
• Leverage complementarities: Projects should reflect the comparative advantages of all three actors and build on previous successful cooperation.
• Ensure management capacity: All actors, especially emerging donors, need to develop the capacity to manage the project cycle.
• Evaluate and exchange experiences: Continuous evaluation and learning are essential to address risks and improve practices.

Conclusion

While triangular cooperation is not yet a major force in international development cooperation, it represents a significant shift in the dynamics of aid and development. It has the potential to enrich the international development system if properly managed and aligned with the principles of aid effectiveness. The process is still evolving, and its success depends on the willingness of all parties to learn, adapt, and collaborate.

References

• Altenburg, Tilman and Jochen Weikert. "Trilateral Development Cooperation with 'New Donors'." German Development Institute Briefing Paper, 5/2007.
• Ashoff, Guido. "Cooperation triangular de Alemania en América Latina con enfeisis en México-Contexto, enfoque, perfil y conclusiones." Revista Española de Desarrollo y Cooperación (número especial) (forthcoming).
• Bogota Statement-Towards Effective and Inclusive Development Partnerships, Bogotá, 2010.
• ECOSOC (United Nations Economic and Social Council). Trends in South-South and Triangular Development Cooperation. Background study for the Development Cooperation Forum. New York, 2008.
• Schulz, Nils-Sjard. Triangular cooperation in the context of aid effectiveness-Experiences and views from European donors, Concept Note and Workshop Report for the Spanish EU presidency, Madrid, 2010.
• SEGIB (Secretaría General Iberoamericana). Report on South-South Cooperation in Ibero-America 2009. Madrid, 2009.
• Task Team on South-South Cooperation. Boosting South-South Cooperation in the Context of Aid Effectiveness, Telling the Story of Partners Involved in more than 110 Cases of South-South and Triangular Cooperation. Paris: OECD, 2010.
• UNDP (United Nations Development Program). Enhancing South-South and Triangular Cooperation. Study of the Current Situation and Existing Good Practices in Policy, Institutions, and Operations of South-South and Triangular Cooperation. New York, 2009.
• Yamashiro Fordelone, Talita. "Triangular Cooperation and Aid Effectiveness." Paper presented at the OECD/DAC Policy Dialogue on Development Cooperation, Mexico City, 28-29 September 2009.