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Development policy as future and peace policy


1 Development policy as future and peace policy 15. Development policy report of the Federal Government

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3 Development policy as future and peace policy 15. Development policy report of the Federal Government

4 15th Development Policy Report of the Federal Government 4 Foreword DEAR READERS, Dr. Gerd Müller visiting the solar power plant in Ouarzazate, Morocco we are living in a dynamic and exciting phase in world history. Our planet is over four billion years old and it was only four million years ago that humans first populated it from Africa. If the history of the earth were a day with 24 hours, then we humans would only have been on this planet for about two minutes. But in that short time we have changed the earth significantly. The world population is growing by people every day, 80 million a year. The weights are shifting, Europe is stagnating, Asia is growing and the population of Africa will double by the year 2050. Anyone born in Germany in 1950 experienced how the world population tripled, CO 2 emissions increased fivefold and global trade grew by more than two hundred times. For the global community, the question arises as to whether we can make the change to a sustainable and responsible way of life and economy worldwide. Only then can we solve challenges such as hunger and malnutrition, climate and environmental protection, education and equality, peace and justice, but also flight and migration. The other scenario is just keep it up. Then we could be the first generation on the planet to bring it to the edge of the abyss, because the earth's resources are finite. If our western style of consumption and economy became a growth model for all people on earth, then humanity would already need two or three planets. We must therefore think of development policy in completely new dimensions. Sustainable development is the task of all political fields from economic and trade policy to environmental and agricultural policy to foreign and security policy. We can only solve the great challenges through a new cooperation in the world community. In New York in 2015, the international community agreed on new sustainability goals with the 2030 Agenda and thus signed a global treaty for the future. The breakthrough to a future-oriented climate agreement was achieved in Paris. These are great political successes and at the same time they show us the way to the future. The decisive implementation of these requirements is now necessary. Because today we are also the first generation who are able to create a world without hunger. A world that brings rich and poor together and does not divide them further. In Germany, development policy has acquired a new status. Together with many committed people in civil society and our other partners in German and international development policy, great successes have been achieved. The number of people suffering from poverty and hunger has been reduced by more than half in the past 15 years. Around 90 percent of all children in developing countries go to school today. Diseases such as HIV, tuberculosis and malaria could be combated effectively. Polio is almost defeated.

5 Foreword by Federal Minister Dr. Gerd Müller 5 But these achievements still face enormous challenges today: 800 million people suffer from hunger and malnutrition. 700 million people continue to live in extreme poverty. Climate change, environmental degradation and species decline continue to advance. The death toll from wars and conflicts in 2014 was the highest in 20 years. Never before have so many people worldwide been on the run. Germany is facing up to these global challenges. We have massively increased the budget for development policy during this legislative period. With the partnership with Africa, the Federal Government is not only placing a special focus on this continent during the German G20 presidency. I am therefore also bringing my proposals for a Marshall Plan with Africa into the discussion. Here too, promoting and demanding is the principle of cooperation. None of us can be satisfied with the progress made so far on the African continent. Like our other partner countries, the African countries must take on more personal responsibility and determine their own path into the future. We have to move away from the donor-recipient relationship and towards a fair partnership. The work on the implementation of the 0.7% ODA target is just as urgent as new instruments to promote private investments and the conception of fair trade relations with developing countries. We have to make globalization fair. Our consumption and production patterns must become sustainable. Local value creation in developing countries and compliance with minimum social and ecological standards must be a prerequisite for global value chains. Investments in education and training and the development of agriculture must be strengthened in the long term. We stand for the observance of human rights. For us, human dignity is inviolable and universal. Everyone has the right to live in dignity. All countries must live up to this responsibility. The task now is to establish a new partnership of responsibility and jointly initiate changes: The European Union must play a much stronger role. Cooperation between donor countries and the efficiency of the measures can be further improved. The Federal Government's 15th Development Policy Report impressively shows the breadth and diversity of development policy work. Special thanks go to a committed civil society, the many great partner and implementing organizations, thousands of local experts on site and, last but not least, to our partners in 85 countries around the world. Together we continue to take responsibility for a life in dignity for all, a just and peaceful coexistence and the preservation of the natural foundations of life for future generations. Your dr. Gerd Müller, Member of the Federal Minister for Economic Cooperation and Development Dr. Gerd Müller attends an agricultural academy in Rukka, India

6 15th Development Policy Report of the Federal Government 6 Contents TABLE OF CONTENTS Foreword 4 List of Figures 9 1 DEVELOPMENT POLICY 2030: WORLD IN CHANGE WHY WE NEED MORE POLICY FOR DEVELOPMENT FUTURE QUESTIONS OF MANKIND: WHERE ARE WE TODAY? Protect the seas. Stop soil degradation Protect natural resources. Introduce a global circular economy. Manage the surge in urbanization. Shaping urban growth wisely. 45

7 Table of contents Setting the course 3 Promoting development opportunities, reducing the causes of flight and ensuring peace Preventing violent conflict and overcoming crises: Development prospects create peace Demand and promote good governance The challenge of flight and fragility: Protecting, respecting and ensuring human rights Setting the course 4 Shaping the global economy more equitably Enabling fair trade.

8 15th Development Policy Report of the Federal Government CREATING PEACE AND STRENGTHENING HUMAN SECURITY. DEMAND AND PROMOTE GOOD GOVERNANCE. PROTECT HUMAN RIGHTS AND CULTURAL DIVERSITY Peace and security, cooperation with fragile states Good governance and promotion of democracy Flight and migration Human rights and equality Culture, religion and values ​​for development COMBINING SUSTAINABLE ECONOMIC GROWTH AND DECENT EMPLOYMENT. USING DIGITALIZATION FOR TRANSFORMATIVE CHANGE Global trade and sustainable supply chains Sustainable economic development and cooperation with the private sector Digital world STRENGTHENING PARTNERSHIPS FOR IMPLEMENTATION Bilateral development policy and regional priorities Implementing organizations and instruments of German development policy Cooperation with civil society, future charter and tour, development education cooperation with countries and municipalities International cooperation partners Knowledge cooperation, research and evaluation 194 Appendix APPENDIX 199 Statistics 200 Acronyms 212 List of sources 218

9 List of Figures 9 List of Figures LIST OF FIGURES GRAPHIC 1 Millennium Development Goals: What was achieved? 14 GRAPH 2 Number of active violent conflicts and fatalities 17 GRAPH 3 Global distribution of wealth 18 GRAPH 4 Historical CO 2 emissions by region 19 GRAPH 5 Lack of funding for selected SDGs compared to illegal financial flows 20 GRAPH 6 The goals of the agenda GRAPH 7 Where do the poorest 20 live % the human? 68 GRAPHIC 23 Patents submitted by country income category 69 GRAPHIC 24 The ten countries with the most new arrivals fleeing natural disasters (2015) 106 GRAPHIC 25 The three German core messages for sustainable urbanization 114 GRAPHIC 26 German Aid for Trade payments by category GRAPHIC 27 BMZ budget for cooperation with the private sector 156 GRAPHIC 28 Future Charter and Future Tour 180


11 Development policy 2030 Why we need more policy for development 11 Development policy 2030: The world is changing Why we need more policy for development Questions about the future of mankind: Where are we today? The starting point for implementing the 2030 Agenda for Sustainable Development. 1.2 The 2030 Agenda for Sustainable Development as an orientation framework and a global contract for the future: Sustainable development is the task and content of all policy fields. 1.3 Our world in 2030 Five directions for global sustainable development.

12 Development Policy 2030 Why we need more policy for development FUTURE QUESTIONS FOR MANKIND: WHERE ARE WE TODAY? THE STARTING POINT FOR IMPLEMENTING THE 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT. i LIGHTS AND SHADOWS IN DEVELOPMENTS IN THE LAST 25 YEARS The World Bank defines people as extremely poor when they have less than US $ 1.90 a day to spend. The $ 1.90 limit is considered the financial minimum a person needs to survive. The World Bank adjusted the absolute poverty line in 2015 based on purchasing power parities from 2011 to 1.90 US dollars per day (previously 1.25 US dollars per day). (1) WORLD BANK (2016a). (2) WORLD BANK (2016b). (3) Classification of the countries according to the Human Development Index (HDI); UNDP (2015). (4) According to the definition of KHARAS and GERTZ (2010): People with expenditures between 10 and 100 US $ per capita / day (PPP). (5) From 1.74 in 2020 to 3.23 billion people in (6) KHARAS and GERTZ (2010). (7) FREEDOM HOUSE (2016). SIGNIFICANT SUCCESSES Over the past 25 years, the economic situation in many developing and emerging countries and for large parts of the world's population has improved significantly. According to World Bank estimates, the number of people in the world who have to live on less than US $ 1.90 a day has fallen from a good 1.85 billion people (1990) to around 767 million (2013). (1) In sub-Saharan Africa, too, the proportion of the poorest fell from 56 percent to 43 percent between 1990 and 2012. (2) While 3.2 billion people lived in countries with low human development in 1990, it was only 1.2 billion in 2014. (3) These developments go hand in hand with a massive shift in balance in the world economy. In 1990 80 percent of the global middle classes (4) lived in the OECD countries and only 20 percent in the developing and emerging countries, this ratio will have reversed by 2030. The Asia-Pacific region will have the largest share with 3.2 billion people and will experience the highest growth. (5,6) The positive economic development of many developing and emerging countries was made possible primarily by advancing globalization and digitization. Global trade in goods and services, the industrialization of value chains and the increasing availability of knowledge and technologies via modern communication channels are central drivers of economic and social development. Development policy has helped developing countries to participate in the global growth of the last decades and to mitigate the negative effects of globalization. The Millennium Declaration with its eight Millennium Development Goals, which the international community agreed on in 2000, helped to draw political attention to development challenges. As a result, enormous successes have been achieved in the fight against poverty, in access to education, especially for girls, in reducing child mortality, in the fight against HIV / AIDS, malaria and other serious diseases, and in improving access to drinking water. Since the end of the Cold War, however, there has not only been economic and social progress, but also positive developments in terms of the political constitution of states. The number of democratically governed countries has risen sharply. While in 1990 30 percent of all states were classified as unfree, the proportion of autocracies decreased to 26 percent in the year (7)


14 Development Policy 2030 Why We Need More Policy for Development 14 i MILLENNIUM DEVELOPMENT GOALS: WHAT HAS BEEN ACHIEVED? Figure 1 While great progress was made in many areas, many goals remained unattainable in 2015. (Yellow marking corresponds to the MDG target value). Source: UN DESA (2015a); UNICEF (2017a); UNICEF (2017b); WHO (2015); WHO (2016c). MDG 1 FIGHTING EXTREME POVERTY AND HUNGER%% Percentage of people worldwide who live on less than $ 1.25 a day - 68% million 1,200 23.3% 1,000 19.7% 18.3%%, 9% malnutrition in developing countries MDG 2 REALIZE GENERAL PRIMARY EDUCATION% 100 million% 83% 91% million 57 million enrollment rate in% in developing countries early school leavers (in millions) during primary school MDG 3 PROMOTING GENDER EQUALITY AND STRENGTHENING THE ROLE OF WOMEN 50% 50%% % + 6% 22%% 2000 Share of women in% of the total number of employees in the non-agricultural sector Share of seats held by women in national parliaments (unicameral parliament or lower house) in% MDG 4 LOWER CHILD MORTALITY%%% Death rate of under five years of age (per live births) measles vaccine coverage worldwide in%

15 Starting position Where are we today?

16 Development Policy 2030 Why we need more policy for development 16 UNSOLVED AND NEW PROBLEMS i The UN designates a group of currently 48 countries, 34 of them in Africa, with the term Least Developed Countries. Among other things, various indicators on economic and social development as well as average income determine whether a country is considered an LDC. The rapid economic rise of many countries enabled considerable advances in human development and security. However, other development problems remained unsolved or worsened, and new challenges arose. The poorest and least developed countries in particular continue to suffer from insufficient and slow development progress. The number of Least Developed Countries (LDCs) has remained almost the same over the past 24 years with 47 countries in 1991 (8) and 48 countries in 2015 (9). Each year 1.1 million people continue to die of HIV / AIDS (10), over 260 million children are denied schooling (11) and in sub-Saharan Africa the probability of a child dying before their fifth birthday is 14 times as high as in an industrialized country (12). In addition, epidemics like Ebola threaten to destroy what has already been achieved in many places. Fragility also threatens sustainable development. Compared to other developing countries, the group of fragile states is considerably behind in achieving the Millennium Development Goals: the vast majority of the states currently considered fragile had not achieved the goal of halving poverty by the end of 2015. This trend threatens to continue. State structures are disintegrating in many places. According to the Bertelsmann Transformation Index from 2016, the governments in 24 of a total of 129 countries examined do not have a monopoly of force across the entire national territory; In a further 57 states the monopoly of force exists in principle, but is challenged by rebel groups and similar groups. (13) Almost two-thirds of all extremely poor people could live in fragile states in 2030 if more investment is not made in peacebuilding and institution building. (14) RISE IN VICTIMS FROM VIOLENCE AGAIN, INCREASE IN STATE REPRESSIONS Although the number of armed conflicts fell overall after the end of the Cold War, in 2014 the world recorded the highest death toll from conflict and violence since the genocide in Rwanda in Year The number of people working worldwide

17 Starting position Where are we today? 17 NUMBER OF ACTIVE VIOLENT CONFLICTS AND DEATH VICTIMS 63 active violent conflicts active violent conflicts active violent conflicts active violent conflicts 2014 i graphic more people died in violent conflicts than in any other year since the genocide in Rwanda Source: IISS (2015), UCDP (2015) fatalities fatalities fatalities Fatalities had to flee their homeland rose to a total of over 65 million people.(15) The high number of internal conflicts makes it clear that the social contract no longer works in many regions: Social and political actors have no confidence in peaceful, constructive and inclusive decision-making and development. From a European perspective, the development in the MENA region (Middle-East-North-Africa) is particularly important. The hope for political liberalization through the Arab Spring was followed by a resurgence of authoritarian governments as well as social fragmentation, wars and Islamist terror. The number of war deaths in the region has risen dramatically since 2010. Refugee crises within the MENA region and refugee movements to Europe were the result. The lessons of the Arab Spring show that social and political problems in particular, such as social inequality and human rights violations, are the main causes of conflict and fragility. These must be combated more intensely if one wants to counteract fragility in the long term and stabilize states over the long term. Because fragile and crumbling states not only pose an increasing security risk for entire regions, but also act as a starting point for globally operating organized crime and terror networks. Where poverty and violence come together, it is particularly difficult to support and sustainably secure human development and the observance of human rights. Even in countries where there are no open violent conflicts, development successes are increasingly threatened by autocratic tendencies in many places. The Bertelsmann Transformation Index 2016 shows both an alarming new level of repression in authoritarian states and noticeable setbacks in democratically governed countries, including with regard to freedom of organization, assembly and expression as well as the political separation of powers and civil rights. In many states that have made progress towards democratization since the 1990s, there is currently a risk of a relapse into old structures: NGOs are being massively prevented from doing their work, the press is being censored and democratic institutions are being eroded. (8) UNESCO (1992). (9) UN DESA (2015b). (10) WHO (2016a). (11) UNESCO (2016). (12) WHO (2016b). (13) BERTELSMANN FOUNDATION (2016). (14) OECD (2015). (15) This includes 21.3 million refugees, 40.8 million internally displaced persons and 3.2 million asylum seekers. UNHCR (2016).

18 Development Policy 2030 Why we need more policy for development 18 i According to the World Bank, high-income countries are countries with a GNI per capita of over US dollars, while middle-income countries are countries with GNI per capita between US dollars and US dollars, countries with a low income (low income countries) have a GNI per capita of less than US dollars. RISING INEQUALITY DESPITE ECONOMIC GROWTH The strong economic growth of the past decades has contributed to the fact that over a billion fewer people live in absolute poverty than since 2002, inequality between countries has been falling slightly, partly due to the economic growth of the populous emerging countries, especially China . (16) However, if one looks at the absolute income inequality between countries without weighting according to population size, it becomes apparent that the income gaps between rich and poor countries have increased overall. The average gap in per capita income (17) between high-income and low-income countries increased from around US dollars in 1990 to over US dollars a year. The gap between low-income and middle-income countries increased from 1990 to 2015 more than doubled approximately to US dollars. (18) Within individual countries, inequality has increased over the past 25 years. In 2015, 75 percent of all people in developing countries lived in societies in which income was distributed more unequally than in (19) If you look at the global distribution of wealth (20), the poorest 73 percent of the world's population had around 2 in 2016 , 4 percent, the richest 0.7 percent 45.6 percent of all assets. With a total wealth (21) of US dollars, in 2016 you belonged to the richest 10 percent of the world's population. Not only can high inequality affect social cohesion, it can also dampen economic outcomes. i WORLDWIDE ASSET DISTRIBUTION Chart 3 Global prosperity is extremely unevenly distributed 0.7% of humanity own over 45% of all assets. The bottom 73%, however, only 2.4%. Source: DAVIES, LLUBERAS and SHORROCKS (2016). 73.2% (3.546 billion) people (over 18 years old), asset per capita <$, 5% (897 million) people (over 18 years old), asset per capita: $, 5% (365 million) people (18+) Asset Per Capita: $ 0.7M (33M) of People (18+) Asset Per Capita:> $ 1M

19 Starting position Where are we today? 19 HISTORICAL CO 2 EMISSIONS * BY REGION () Latin America & Caribbean Oceania North America Middle East Europe Africa Asia i Figure 4 North America and Europe have been responsible for the majority of CO 2 emissions since the beginning of the Industrial Revolution. However, Asia is now the world's largest emitter of CO 2. * Through the use of fossil fuels, cement production, flaring of gases. Source: MARLAND, BODEN and ANDRES (2016) GLOBAL WARMING AND ENVIRONMENTAL DESTRUCTION: THE CHALLENGE OF EARTH CHANGE AND PLANETARY BORDERS At the latest since the World Conference on Development and Environment in Rio in 1992, there has been a growing global awareness that the established growth paths and resource consumption of the OECD Countries and the wealthy classes in developing and emerging countries exceed the planetary limits. In 2009 the Stockholm Resilience Center defined ten guard rails that attempt to scientifically describe the ecological limits of the planet. These must not be exceeded, otherwise global environmental crises threaten. Some of the limits have already been reached or are about to be exceeded. Above all, the decline in biodiversity, water scarcity, deforestation, nitrogen deposition in soils and bodies of water and global warming have already reached critical proportions. Reducing excessive inequality is not just morally and politically correct, but it is good economics. Christine Lagarde, Director of the IMF Scientific findings show that crossing these guard rails threatens tipping points in the earth system where abrupt changes with incalculable risks for the human (16) MILANOVIC (2012). (17) Gross domestic product per capita according to purchasing power parity (constant international dollars). (18) WORLD BANK (no year). (19) UNDP (2013). (20) DAVIES, LLUBERAS and SHORROCKS (2016). (21) Sum of all financial assets plus tangible assets (especially real estate) minus your debts.

20 Development Policy 2030 Why we need more policy for development 20 i Chart 5 Estimates suggest that the volume of illegal financial flows * from developing and emerging countries is more than ten times as high as the total of all development cooperation funds. * The term illegal financial flows refers to money that 1. is unlawfully earned and / or 2. is used illegally and, in any case, 3. is moved abroad. These include, among other things, money from tax evasion, criminal activities such as drug trafficking or funds generated through corruption. Source: GREENHILL and ALI (2013); UNGA (2014); KAR and SPANJERS (2015). LACK OF FINANCIAL FUNDS FOR SELECTED SDGS COMPARED TO ILLEGAL FINANCIAL FLOWS Estimated illegal financial flows from developing and emerging countries * per year, in billions of US dollars Ending hunger worldwide 50.2 Universal health coverage for all people 37 Access to primary education for all children worldwide 38 Abolition of the extreme poverty 66 civilization. One of the greatest threats is climate change. If it is not possible to reduce greenhouse gas emissions to such an extent that global warming can be kept well below 2 degrees, or to take steps towards limiting it to below 1.5 degrees Celsius, the consequences would be devastating. Dramatic environmental changes such as the melting of the Greenland Ice Sheet, the reversal of ocean currents in the North Atlantic or the erosion of the driving forces behind the monsoon system in Asia could result. Depending on the scenario, this could mean a rise in sea level of up to one meter (22) by the end of the century, but it could also lead to the drying up of entire stretches of land and a sharp decline in food production. Many developing countries, especially the poorest countries, are already confronted with the inevitable consequences of climate change, even though these have contributed the least to climate change. They need support in adapting to the changed conditions. In order to enable the nearly 10 billion people in 2050 to have a good and humane life within the planetary limits, sustainable production and prosperity patterns must be developed over the next three decades. If this does not succeed, climate and environmental changes would inevitably lead to massive migration movements and ultimately to civilization crises. The current and the next generation therefore bear great responsibility for the future of the entire planet and humanity.

21 Starting position Where are we today? 21 GROWING CITIES In order to adhere to the planetary capacity limits, the future development of cities must also be designed to be sustainable. By 2050, the world will experience the greatest surge in urbanization in human history. 70 percent of energy-related greenhouse gas emissions are already generated in cities, 40 percent alone from heating and cooling buildings. Since the emergence of cities a good few years ago, the urban population has grown to 4 billion people. By 2050 there will be another 2.5 billion city dwellers. Over two thirds of the then 9.8 billion people will therefore live in cities. (23) Urban infrastructures, buildings, adequate housing, road and transport systems, supply and disposal systems for water, waste and energy are required to a considerable extent for the growing population. According to estimates by the OECD (Organization for Economic Co-operation and Development), the maintenance and new construction of urban infrastructures will require investments totaling 40 trillion US dollars for the period from 2005 to 2030 alone. (24) There is also a need to create educational and employment opportunities for the growing urban population. In the time frame of the next 35 years it will be decided whether the cities of the next centuries will be resilient, ecologically and socially sustainable or follow the old city patterns of the 20th century. For this, cities need clear municipal responsibilities and capacities, which are defined and promoted by national policies and laws. The mere continuation of existing concepts would have foreseeable catastrophic effects on the global ecological balance and the stability of societies. (22) MELILLO, RICHMOND and YOHE (2014). (23) UN DESA (2015c). (24) OTTESEN (2011).

22 Development Policy 2030 Why We Need More Policy for Development 22 GLOBAL FINANCIAL AND ECONOMIC CRISES The financial crisis of 2008/9 made it clear that the inadequate regulation and supervision of international financial markets can throw the entire world economy into trouble. The World Bank estimates that the crisis wiped out a total of $ 50 trillion in assets. Global economic growth slowed from 3.9 percent in 2007 to 2 percent a year. Raw material exporting countries such as Brazil, Nigeria and Venezuela were particularly hard hit. The slump in demand and prices on the raw material markets led to significant budget holes, with the result that state benefits had to be cut and important investments could not be made. Foreign investment in low-income and middle-income countries also fell from $ 541 billion in 2008 to $ 385 billion in (25) Overall, post-crisis growth in most developing and emerging countries has increased stabilized at a higher level than in the OECD countries. However, it remains to be seen to what extent rising interest rates in the industrialized countries will influence investments and the refinancing options of public budgets in the developing and emerging countries. If there were a greater outflow of capital, the problem of many developing countries, which are already struggling with rising debts and underinvestment, would be exacerbated. In general, the monetary and fiscal policy leeway in industrialized countries, but also in emerging and developing countries, is limited in order to take countercyclical measures in crisis situations. The stability of an increasingly globalized financial system is therefore of great relevance, especially for developing and emerging countries. In addition, attention must be paid to the regulation of financial flows, because a globalized financial system also increases the extent to which money laundering, corruption, as well as tax avoidance and tax evasion are possible. It is estimated that African countries lose between 50 and 148 billion US dollars in tax revenue every year through capital flight and illicit financial flows. (26) This exceeds the total of all ODA (Official Development Assistance) funds paid to Africa, which amounted to around 38.6 billion euros in 2015. (27) At the same time, when enforcing stricter rules to curb money laundering and terrorist financing, it is important not to disproportionately hinder legal financial flows and thus unintentionally restrict economic development. (25) WORLD BANK (no year). (26) UN ECA (2014). (27) Unless otherwise stated, the ODA figures given in the report refer to the year OECD (2016a).

23 Starting position Where are we today? 23 CENTRAL STARTING POINT FOR FUTURE DEVELOPMENT POLICY Since the 1990s, absolute poverty has decreased enormously; the proportion of the middle classes in developing and emerging countries is growing. The OECD countries are relatively less important in the world economy. Despite much progress, key challenges such as HIV / AIDS, lack of access to education or high child mortality rates remain in developing countries. A large number of states remain dependent on global economic development. Income and wealth inequality has increased significantly over the past 20 years, particularly within countries. Over the past few years there have been worrying setbacks in the quality of governance around the world: there is increasing repression in autocratic regimes and deterioration in democratically governed countries. Over 1.4 billion people live in countries affected by war, violence and the lack of a state monopoly on violence. Long-lasting and complex crises, fragile states and international terror are increasingly presenting global security problems. Global and cross-border systemic risks are gaining in importance: international financial and economic crises, climate change and environmental destruction, epidemics and terrorism. The world population has grown from 5.3 billion people in 1990 to 7.4 billion people in 2015. In all probability, 8.5 billion people will live on earth in 2030, and 8 billion a year.

24 Development Policy 2030 Why we need more policy for development THE 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT AS A FRAMEWORK AND WORLD FUTURE TREATY: SUSTAINABLE DEVELOPMENT IS THE TASK AND CONTENT OF ALL POLICY AREAS. For a long time, development policy was primarily aimed at overcoming specific problems in developing countries. But the challenges of the 21st century do not stop at national or European borders. The list of cross-border problems that make intergovernmental and global cooperation necessary is growing: In addition to climate change and environmental destruction, state collapse and violence, as well as opaque and volatile financial and economic systems, epidemics such as Ebola and the return of authoritarian regimes threaten sustainable human development. Security and prosperity in Germany and Europe ultimately also depend on overcoming global challenges. Awareness is growing worldwide that the great questions of human development and the challenges of climate and environmental issues can only be solved through collective action by the global community. German development policy is part of the policy of the entire federal government to deal with these global challenges. The contribution of development policy to the Federal Government's international cooperation takes place in close cooperation with the departments responsible for the various policy areas as well as with civil society actors and the economy. The close coordination of sectoral policies creates synergies on the way to adapting development policy to the challenges of the 21st century. Various federal ministries make important contributions to the implementation of measures in the context of official development cooperation.Specific collaborations between the federal ministries and developing and emerging countries complement the development policy measures of the Federal Ministry for Economic Cooperation and Development (BMZ), which for its part increasingly involves the other federal ministries in its measures. We can't talk our way out of it. Because we know about the need to follow the principle of sustainability like a navigation device. We know the goals of the 2030 Agenda and we think they are right. So there is nothing else but to set off and do what is our responsibility. Federal Chancellor Dr. Angela Merkel at the conference of the Council for Sustainable Development 2016

25 2030 Agenda for Sustainable Development 25 The 2030 Agenda for Sustainable Development adopted by the international community in September 2015 is a key milestone on the way to a sustainable future for everyone. It combines the poverty and development strand of the Millennium Development Goals with the sustainability strand of the Rio Process and is an action plan, a kind of world future treaty for people and the planet. The Paris Climate Agreement was also passed at the end of 2015. Together, the 2030 Agenda and the climate agreement form the central pillars of the global framework that sets the direction for all countries. The 2030 Agenda is universal: with its 17 Sustainable Development Goals (SDGs), it applies to every country, including industrialized countries, and across all policy areas. In doing so, the different national circumstances, skills and development levels must be taken into account, the national policy approaches and priorities must be observed. All countries define their respective national contributions to the global goals according to their resources, capacities and national ambition level. The 2030 Agenda is therefore not just a system of development goals, but a frame of reference for sustainable development in an emerging global society of almost 10 billion people. The 2030 Agenda takes all dimensions of sustainability into account equally: social, economic and ecological. A good and humane life is only possible for everyone within the planetary guard rails. The 2030 Agenda is transformative: it stands for a new global and comprehensive understanding of prosperity that goes beyond the narrow view of per capita income. The 2030 Agenda focuses on people who are disadvantaged: With the overriding principle of Leave no one behind, the 2030 Agenda explicitly calls for the people who are most discriminated to be put at the center. Your success will also be measured by the extent to which the most vulnerable groups have made progress with regard to sustainable development. The 2030 Agenda lays the foundation for a new global partnership: It overcomes traditional north-south thinking, because all countries must jointly take responsibility for the global common good. For a successful implementation of the goals, the participation of all actors from politics, business, science and civil society down to each individual as well as a new global culture of cooperation are indispensable. The 2030 Agenda calls for transparency and accountability: any plan is only as good as its implementation. Therefore, all countries are called upon to report regularly on their efforts and progress, both to their population and at regional and global level. Climate policy and sustainable development, which since the Brundtland Report 1987 has always included the fight against poverty, are inextricably linked. In the Paris Climate Agreement there are numerous references to the contents of the 2030 Agenda: the central goals are to take global warming to well below 2 degrees or steps towards a limit to 1.5 degrees Celsius, to increase adaptive capacities and to redirect international financial flows in a climate-friendly way In the context of sustainable development. This also means that both the 2030 Agenda and the long-term goals of the Paris Climate Agreement are the focus of the Federal Government's policy. The One World Charter for the Future, which was drawn up jointly by numerous actors and adopted in November 2014, has contributed to raising awareness of the new content and requirements of the 2030 Agenda in Germany as early as the negotiation phase of the 2030 Agenda, and

26 Development policy 2030 Why we need more policy for development 26 for its implementation. In order to meet the changed requirements for a universal policy for sustainable development in the sense of the 2030 Agenda, German development policy will make contributions to the implementation of the 2030 Agenda on three levels. i The individual departments commission the implementing organizations with the concrete implementation of the federal government's development policy projects. While KfW Development Bank and the German Investment and Development Company (DEG) are active in the area of ​​financial cooperation, the Society for International Cooperation (GIZ) is responsible for technical cooperation. There are also other implementing organizations for technical cooperation that specialize in individual tasks, such as the Federal Institute for Geosciences and Natural Resources (BGR) or the Physikalisch-Technische Bundesanstalt (PTB). 1. At home, the German Sustainability Strategy, adopted by the Federal Government on January 11, 2017, forms the essential framework for the national implementation of the Agenda It takes up the global goals for sustainable development, prioritizes the respective action requirements for each SDG and contains national indicators and goals (usually for the target year 2030). The strategy was developed by the entire department under the leadership of the Federal Chancellery (BKAmt); Independent analyzes by the Federal Statistical Office regularly show the status of target achievement. German development policy makes its contribution to this by working to emphasize the importance of sustainable development in Germany and to raise awareness of the cross-border effects of one's own actions. 2. German development policy supports other countries in aligning their strategies and policies with the 2030 Agenda and implementing them. To this end, German development policy uses the full range of its instruments, from bilateral cooperation with the implementing organizations to cooperation with civil society and multilateral contributions. At the same time, however, it also demands that its partners make their own efforts and assume responsibility for achieving the goals. The extent to which existing development policy instruments need to be adapted and new instruments developed is continuously checked. The principles, goals and indicators of the 2030 Agenda are taken into account in the entire work of the BMZ (planning processes, implementation, monitoring and reporting). Development policy also cooperates closely with developing countries and especially with emerging countries in order to protect so-called global common goods such as health, climate or peace and security worldwide. 3. At the international level, the Federal Government advocates a global institutional and normative implementation framework that enables and promotes sustainable development within the meaning of the 2030 Agenda. At the international level, Germany supports the central role of the High-Level Political Forum (HLPF) of the United Nations (UN) in reviewing the agenda. The Federal Government advocates that the existing systems for monitoring success align their contributions to the HLPF and that the HLPF is strengthened in its role as a World Sustainability Council. In July 2016, Germany was one of the first countries to report on its implementation steps as part of the HLPF. Through the Chancellor, Germany is also a member of the high-level support group for the 2030 Agenda, which, under the leadership of Sweden, advocates an ambitious implementation of the agenda internationally. German development policy supports reforms at European and international level that promote the implementation of the 2030 Agenda in developing countries and promote it worldwide. The German G20 Presidency 2017 under the motto Shaping an interconnected world Shaping an interconnected world will use the international momentum to bring the universal and transformative character of the 2030 Agenda into the world. With this, Germany is building on its G7 presidency in 2015.


28 Development Policy 2030 Why we need more policy for development OUR WORLD IN 2030 FIVE DIRECTIONS FOR GLOBAL SUSTAINABLE DEVELOPMENT. The 2030 Agenda for Sustainable Development is an ambitious program for global development. It affects all policy areas. The guiding principles for German development policy are five course settings: Course setting 1 ONE WORLD without poverty and hunger is possible. Setting the course 2 The new global imperative: fight climate change and adhere to the ecological limits of the planet. Setting the course 3 Promote development opportunities, reduce the causes of flight and ensure peace. Setting the course 4 Making the global economy fairer. Setting the course 5 Global partnerships for the agenda Setting the course Setting the course 1 ONE WORLD WITHOUT POVERTY AND HUNGER IS POSSIBLE (28) WHES (2016). Fighting poverty and hunger remain central tasks of development policy. 700 million people lived on less than 1.90 US dollars a day. About 2 billion people have to get by on less than US $ 3.10 a day. Almost 800 million people around the world are still starving. (28) The 2030 Agenda formulates ambitious goals: by 2030, extreme poverty is to be eradicated, access to sufficient food is to be ensured for all, and inequality within and between countries is to be reduced. Tremendous efforts have to be made to achieve this. There is no automatic mechanism to achieve this central goal of international development policy.

29 Setting the course 1 ONE WORLD without poverty and hunger 29 WHERE DO THE POOREST 20% OF PEOPLE LIVE? 35% Sub-Saharan Africa 33% India 11% Rest of South Asia 10% China 4% Others% 8% Rest of East Asia & Pacific i Figure 7 Poverty is multidimensional. At the moment, however, data are mainly available that focus on the income poverty dimension. In the future, more data will have to be collected that capture the various dimensions of poverty. Source: DEVELOPMENT INITIATIVES (2015). 1. FAIR GROWTH AND EQUAL PROSPERITY ENABLE TO FIGHT EXTREME INEQUALITY. Goal 1 of the 2030 Agenda is to end extreme poverty by 2030. Studies by the World Bank show that this goal cannot be achieved through growth alone, even on the condition that developing and emerging countries would grow at a rate similar to that after the end of the Cold War by 2030. In order to combat poverty effectively, future growth must disproportionately benefit the poorest 40 percent of people in developing and emerging countries. (29) Economic growth must be accompanied by investments in education, health and the development of social security systems. In addition, the target gross domestic product should be supplemented by other indicators to measure economic development and prosperity. In addition to quantity, new strategies must be found for high-quality, i.e. sustainable, inclusive and poverty-reducing economic growth. In order to enable the group of the poorest developing countries to catch up with global development and to counteract the extreme inequality between countries, Germany aims to provide 0.7 percent of gross national income (GNI) for development cooperation. In addition, the European Union (EU) has undertaken to collectively spend 0.15 percent of GNI within a short period of time and, within the timeframe of the Agenda, 20 percent of GNI on development cooperation with the least developed countries (LDCs). These commitments were confirmed in the 2030 Agenda on the basis of the Addis Ababa Financing Conference in 2015. It is also important that all countries work together to create equal opportunities. In this way, the poorest must also be given access to inclusive and high-quality education. German development policy will invest more in the implementation of the right to education around the world and, in doing so, support disadvantaged groups in particular. Primary and secondary education must be promoted more strongly than before, both in and outside of school, and German experience in the field of vocational training must be incorporated. Joint initiatives with German business are being expanded. With the World Bank and the regional development banks, innovative incentives are being developed to promote vocational training. (29) WORLD BANK (2014).

30 Development Policy 2030 Why we need more policy for development 30 (30) UNDP (2013). (31) ILO (2008). In addition to education, health is also a key element of equal opportunities. Germany will work to ensure that international actors contribute more effectively to strengthening health systems in the future. This is also an essential component in preventing health crises. The Federal Government's roadmap for strengthening the health system, Healthy Systems Healthy Lives, serves as a political framework for implementation. Income generated by work is the main source of income for the majority of households in developing countries. (30) German development policy therefore focuses on inclusive employment that takes into account social and human rights standards and the economic empowerment of women. This was confirmed by the initiative for the economic empowerment of women, which was resolved in Elmau in 2015 under the German G7 presidency. In order to better meet the demands of every individual on health, education and work and to be able to support people if necessary, the establishment of social security systems in partner countries must be given greater importance. Providing basic social protection to all people worldwide who currently have no social security would cost six percent of the world's gross domestic product. (31) A minimum level of social security can therefore be financed. In addition to social security systems, a stable and inclusive financial system is also the basis for growth and employment. However, around two billion people currently have no access to the formal financial sector. The federal government has committed itself to the financial inclusion goals and supports access to needs-based financial services at various levels, especially for poorer population groups and micro, small and medium-sized enterprises (MSMEs). At the international level, Germany is involved in the context of the G7 and G20 (in particular through the Global Partnership for Financial Inclusion) as well as with other international partners for financial inclusion and the mobilization of private investments that have a social and / or ecological impact.

31 Setting the course 1 ONE WORLD without poverty and hunger EXPAND FOOD SECURITY POLICIES TAKE CARE OF CLIMATE CHANGE. In theory, enough food is currently being produced to feed the world's population. Despite this initial situation, around 800 million people suffer from hunger. Around two billion suffer from hidden hunger, a lack of essential nutrients. (32) At the same time, 1.9 billion people are overweight, 600 million of whom are obese. The pressure on rural areas in developing and emerging countries, and especially small-scale agriculture, is increasing. Today's world agriculture and food production is unlikely to be enough to feed the growing world population. In order to meet the increasing demand, agricultural production would have to increase by 60 percent by 2050. (33) A world without hunger and malnutrition (SDG 2) can only succeed if investments and the use of sustainable technologies and innovations in agricultural production and food security are significantly increased. At the same time, there is a need to significantly improve the access to and availability of high quality and diverse food. The environmentally friendly increase in agricultural production and access to food for large sections of the population are a necessary, but not sufficient, condition for a sustainable improvement in the nutritional situation.The prerequisite for the adequate utilization of the available food is knowledge of how food can be grown, stored and preserved in a sustainable manner. Knowledge of hygiene measures and access to improved water and sanitation are also elementary: diarrheal diseases are not only the second most common cause of death for children under five in developing countries, they also exacerbate the nutritional situation of people who already suffer from a lack of nutrition. It is also crucial how food production will take place in the future. An increase in global agricultural production using current cultivation and processing methods would significantly increase the consumption of resources for food and lead to massive water shortages in large parts of Sub-Saharan Africa, India and Central America by 2025 at the latest. The desiccation of soils and the extensive destruction of forests would also be unavoidable consequences. A location-adapted, resource-saving and at the same time productivity-increasing agricultural policy as well as the support of corresponding investments and research activities are therefore necessary in order to ensure the permanent stabilization of global agricultural areas. This can only be achieved in cooperation with other sectors, for example within the framework of the water, energy and food security nexus. It is also crucial that such a global agricultural turnaround must succeed in the context of global warming. This leads to three important conclusions: Firstly, adapted and resilient food security strategies must be developed. Second, insurance solutions for climate-related risks must be implemented, and thirdly, the agricultural sector as a whole must contribute to reducing greenhouse gases. Climate change is immediately causing global hunger problems. At the same time, agriculture itself is a major contributor to global warming, together with forestry and land use changes, it is responsible for 25 percent of annual greenhouse gas emissions. (34) This trend is driven by the continuing meat consumption in industrialized countries, the increasing meat consumption and the corresponding intensification of livestock (32) IFPRI (2016). (33) ALEXANDRATOS and BRUINSMA (2012). (34) IPCC (2014b).

32 Development Policy 2030 Why we need more policy for development 32 i It is estimated that up to 40 percent of the food bought in OECD countries is thrown away by consumers. FAO (2011). economy in emerging countries as well as through the increasing use of mineral fertilizers. Other important factors are rice cultivation and biomass burning. At the same time, however, the agricultural sector can make an important contribution to climate protection. A reduction in emissions can result from sustainable intensification on existing areas, sustainable soil and water management and efficient use of nutrients and fertilizers as well as changes in animal husbandry. Storing carbon dioxide in biomass and soil offers another option. Replacing fossil fuels with sustainably obtained biomass in energy production can reduce the macroeconomic emissions of greenhouse gases. The further expansion of agricultural areas at the expense of forests, savannas, steppes and marshland is to be avoided in order to prevent further greenhouse gas emissions. Cities are also important sales markets for agricultural products. However, due to their area growth and their use of resources, they also endanger fertile soils and water resources, which are essential for agriculture. Therefore, an integrated spatial development that takes into account the needs of urban and rural areas equally is important for long-term food security. In addition, the reduction of food waste, i.e. the waste of food in production, processing and consumption, plays an important role. In developing countries, the main concern is that food does not spoil on the way from producer to consumer. Therefore, when fighting hunger and malnutrition, the entire food system from the field to the plate must be considered. In emerging and industrialized countries, the focus is on reducing avoidable food waste and consumer losses. German development policy advocates the following goals in the area of ​​food security: A) SECURING FOOD INCREASING PRODUCTION. With the special initiative ONE WORLD WITHOUT Hunger, the BMZ has made the fight against hunger and malnutrition a key issue. German development policy will continue to expand this focus by anchoring food security as a cross-cutting issue in as many programs as possible. Especially during natural disasters and wars, people can no longer feed themselves. A decent food supply must be ensured here. At the same time, the resilience of people and communities must be increased in order to avoid or at least mitigate future food crises. Both are important and sufficient funds must be invested in the responsible ministries for both. The special initiative allows the BMZ to expand a large number of topics: In addition to innovation and increasing value creation, these are above all the fight against malnutrition, the protection and restoration of fertile soils as well as access to land, agricultural finance and vocational training. In total, the BMZ is now spending 1.5 billion euros annually on rural development, agriculture and food security. Market life in Rangoon, Myanmar

33 Setting the course 1 ONE WORLD without poverty and hunger 33 With the Green Innovation Centers, the BMZ has successfully initiated and disseminated innovations in the cultivation, storage, transport, processing and marketing of food. The sustainable change in cultivation techniques and organizational forms takes time: For this reason, the term of the innovation centers has been extended from originally three years to now seven years until 2021; a further extension is planned from the 2017 budget. The creation and dissemination of knowledge on issues of international food policy is also the subject of extensive research activities. Securing global nutrition is a central field of action of the National Research Strategy BioEconomy 2030. This has launched numerous funding initiatives, including the GlobE global food security measure. With this measure, the Federal Ministry of Education and Research (BMBF) and the BMZ are jointly supporting the establishment and consolidation of partnerships between German and African agricultural research institutions. In order to achieve a world without hunger, different approaches are necessary for the different target groups: Marginalized groups must be addressed as well as small farmers on the verge of marketability or processing companies. Since agriculture in developing countries is largely carried out by women, but these are mostly disadvantaged, targeted offers to women that address their problems and special challenges are central. Access to adequate financial services is also an important prerequisite for increasing production. Many (family) farms and other actors in agricultural value chains, such as suppliers and processing companies, cannot make meaningful investments, such as in quality seeds, adapted mechanization, storage, etc. The capital resources of the farms are weak and suitable financial services are hardly available. The BMZ is therefore promoting better access to financial services in partner countries, for example by setting up specialized agricultural funds, introducing sustainable structural change thanks to nut cultivation and processing in Benin of new, adapted financial products, or by promoting microfinance institutions. In addition to the implementation of projects in the partner countries and the networking of knowledge, the coherence of EU agricultural, development and trade policies is also of great importance for food security. In the future, German development policy must support developing and emerging countries even more actively in structuring their agricultural and trade policies to promote development. This also means that politics, science and civil society in the partner countries are better able to carry out policy impact assessments for their own trade and agricultural policy strategies. The area of ​​international agricultural research is a good example of joint commitment by the international donor community. Here the BMZ contributes 20 million euros per year to the financing of 17 international agricultural research centers. In addition, bilateral collaborations also make an important contribution to international agricultural research. For example, the Federal Ministry of Food and

34 Development Policy 2030 Why we need more policy for development 34 Agriculture (BMEL) cooperation and exchange between various partner countries, the BMEL research institutions and university research with 5 million euros per year. The aim of the research cooperation for world food funding instrument is to establish and expand high-performance agriculture in developing countries through the direct use of German agricultural research. B) PROTECT NATURAL RESOURCES FOR AGRICULTURE, ENSURE EQUAL ACCESS TO LAND FOR ALL AND PROMOTE TRANSPARENCY. The agriculture of the future must be designed in a way that conserves resources and is climate-intelligent. German development policy will make its agricultural funding in partner countries deforestation-free and at least 70 percent climate-intelligent and make concrete contributions to adaptation and mitigation in the agricultural sector. The nationally determined contributions (NDCs) and the national adaptation plans (NAPs) of the partner countries are good guidelines here. In cooperation with the United Nations Convention to Combat Desertification (UNCCD) and other partners, German development policy is pursuing soil protection as a specific goal. On the one hand, sustainable soil management can help reduce climate change by storing carbon dioxide in soils. On the other hand, healthy soils enable cultivation systems to be more climate-resilient thanks to a large number of organic matter. The BMZ is therefore using a targeted approach within the framework of the special initiative ONE WORLD without Hunger in five partner countries to additionally protect and rehabilitate up to hectares of land. Greater involvement of the private sector in developing countries also makes sense in the agricultural sector. The benchmark for all governments and investors must be the Voluntary Guidelines on the Responsible Governance of Tenure of Land (VGGT) for land-based investments. Capacities landscape with a terraced irrigation system in Alaga, Ethiopia