The final mission of the HIPC Debt Strategy and Analysis Capacity-Building Programme (see www.hipc-cbp.org was conducted by DFI and a Zambian expert, fittingly to Ethiopia which made major strides in improving its debt strategy capacity under the CBP. The mission agreed with the Government on a debt strategy and analysis capacity-building programme for potential donor funding.

DFI co-wrote a report with Action Aid on REAL AID which argues that Developing countries are getting less dependent on aid and that real Aid is transforming lives. The report also argues that the key to reduce aid dependence is strong leadership by recipient country rather than by the donors. It also discusses what is and is not REAL AID, recommendations to Busan and beyond.

DFI conducted the final mission of the Uganda Partnership Policy project funded by DfID. The mission achieved its three aims: to draft targets for development partners to improve their aid to Uganda; to redraft a MoU to be signed by Uganda and its partners to implement the policy; and to make recommendations for capacity-building support to be provided to government, parliament and civil society in order to ensure the policy is successfully implemented. The policy is currently being approved by Cabinet and will begin to be implemented in 2012.

As part of its ongoing collaboration with the Commonwealth Secretariat, DFI prepared a background paper on south-south cooperation amongst Commonwealth countries to support discussion by Senior Officials at the 2011 Commonwealth Finance Ministers Meeting in September. The study is available here.

In the last six months, the DFI Group has assisted more than 20 countries to build capacity to manage debt and new financing (including the final HIPC CBP events with its regional partners). In particular, it helped Sudan to decide that its US$38 billion external debt will not be split with South Sudan, allowing Sudan to get more potential debt relief. In the build-up to the Busan High Level Forum, it also completed many studies on aid, including reducing aid dependence, the role of foundations, South-South Commonwealth cooperation, aid to Least Developed Countries, and mutual accountability between donors and recipients... Read more.

The World Investment Report 2011 forecasts FDI flows to recover to pre-crisis levels within two years. The challenge is to make this impact on efforts to achieve the MDGs. In 2010 developing economies absorbed almost half of global FDI inflows, and generated record FDI outflows (much of them South-South). TNCs are engaging with developing and transition economies via a broadening array of production and investment models. DFI contributed to the production of this report.

We are pleased to announce Wilson Phiri's recent graduation under MEFMI's Programme, having successfully presented his findings to assessors on FDI and economic diversification in Zambia. Wilson has been mentored by DFI during this process, and his work draws on a wide range of sources including work Zambia and other countries have done under the FPC CBP. He will now advance to the accreditation stage, which would involve providing capacity building in the region, followed by preparation and presentation of a technical paper.

DFI was funded by the Joint Donor Capacity Building Trust Fund for South Sudan to help the Government of the newly-independent Republic of South Sudan to examine policy options for post-independence development financing – especially borrowing on concessional terms – and the institutional and capacity-building measures required to establish a debt management unit well coordinated with wider economic policymaking. To read more on South Sudan’s debt, click here.

As one of the last missions of the HIPC Debt Strategy and Analysis Capacity Building Programme, Development Finance International conducted a mission to Nouakchott to help the Government examine options for diversifying sources of development financing away from concessional OECD aid. The mission designed a plan for diversification and for reinforcing Mauritania's institutional structures to manage all development financing, which will be finalized with Government by the end of Q3.