Apresentação de Márcio Corrêa, Coordenador Geral de Cooperação Técnica Multilateral da Agência Brasileira de Cooperação (ABC). sobre "Measurement of non-financial Flows of South-South Cooperation ", proferida no Seminário Cooperação Internacional: Financiamento para o Desenvolvimento, realizado em 12 e 13 de dezembro de 2018, em Brasília.

1. Brazilian Cooperation Agency (ABC/MRE)
Measurement of non-financial Flows
of South-South Cooperation

2. Current views on the subject of measuring South-South cooperation
= There is no common view among developing countries on the very concept
of “South-South cooperation”. As a consequence, no common metric on
what and how to measure SSC is available.
= In the specific case of Brazil, all modalities of international cooperation
between developing countries could be considered eligible for reporting
as “SSC”.
= ODA measurement is based in monetization of inputs provided by donor
countries that can be associated with development cooperation. The new
TOSSD methodology follows the same path. However, at the same time,
there is a growing understanding among developing countries that
monetization does not fit the measurement of South-South cooperation.
= The monetization of all(*) SSC flows would understimate their actual
contribution to development. (*) Some modalities of South-South
cooperation can be monetized, due to its nature: concessional loans, debt
relief, economic cooperation, etc.
= The core narrative of South-South cooperation as a drive for development
has to be preserved, in opposition to the idea that this modality is solely
an additional source of development funding, and “more funds equals to
more development” automatically.

3. Cont...
= Measuring South-South cooperation should not be limited to collecting
data on financial resources mobilized by its operators. Such view diverts
our attention from pursuing development in structural terms (better
development-related policies, better human and institutional capacities,
and better means).
= Financial/Economic cooperation and foreign direct investment among
developing countries are obviously important means to promote
development. However, low-cost initiatives carried out in the context of
SSC (e.g. capacity building; knowledge sharing; joint research;
scholarships; etc.) can lead to structural changes in developing countries,
with direct impact in poverty eradication, education, innovation, more
effective public policies, among other achievements. Such results are no
less important than growing the GDP.

4. The problem with the monetization of South-South cooperation:
Hypothetical case:
“Improvement of the Health sector in Developing Country "X“ (technical cooperation)”
Partners Inputs Monetary quantification:
Developed Country “Y“
(donor country) 10 Health experts (*) 10 X US$ 30,000 = 300,000
Develoment cooperation
Partner "Z“, from a
developing country 10 Health experts (*) 10 X US$ 5,000 = 50,000
(*) the Experts from both
partners having the same
qualifications.
Conclusion: With the same amount of
inputs and knowledge, in the same
recipient country, the cooperation to be
reported by the developed country will
be 6 times higher than the cooperation
provided by the partner developing
country.

5. Elements for debating the measurement of non-financial
flows in South-South cooperation
There is increasing interest of governments from developing countries, academia and
civil society in widening the access to data on the implementation and results of the
cooperation flows among developing countries.
Transparency (“Open Government”) and accountability of the public administration
demand more than financial reports for auditing: public managers must demonstrate
the outputs and outcomes of the inputs (human resources, budget, infrastructure)
invested in development cooperation with foreign counterparts.
The monitoring of the SDG 17 will demand data and analytical work on the
contribution of South-South cooperation to the 2030 Agenda.
Unlike traditional donor countries under the DAC/OECD, developing countries do not
count with an specific inter-governmental body to discuss the measurement of South-
South partnerships. As a consequence, developing countries have been witnessing
other international actors trying to quantify South-South flows based on criteria
conceived for other realities. The consequences of this process are: under-accounting
of SSC, unilateral segregation of data, and inaccurate profiling of SSC.

6. Conclusion
• Non-financial cooperation between developing countries has many
modalities, and is expanding at a fast pace.
• This dimension of the exchanges between developing countries
deserves a “tailor-made” metric for its measurement.
• ABC has circulated, in 2015, a proposal for the measurement of
non-financial modalities of SSC, structured on the concept of
“immediate outputs” of SSC projects and activities, which would
comprise data to be collected through units of measurement
associated with output indicators. Basic aspects of the proposal:
- Data to be collected on immediate outputs from all modalities of SSC;
- No relationship with impact (outcome) indicators;
- The model must be able to be used by the two or more developing
countries involved in the specific SSC project or activity.

7. Thank You!
Marcio L. Correa
(marcio.correa@abc.gov.br)