Part #2: Learning from peers: How are Brazil and Indonesia structuring institutional and operational models for South-South cooperation?

(excerpt of book chapter forthcoming @ Ottawa University Press - adapted)


The Brazilian case: structural impact projects

The expansion of Brazilian South-South Cooperation and Knowledge Exchange has fostered the development of innovative models of program design. One of these innovations is the “Structural Impact Project" - large, long-term projects with significant multiplier effect in the beneficiary country. 

A typical structural impact project engages multiple stakeholders in both provider and beneficiary country throughout the project life. Each partner has clear and complementary roles from the design to the implementation of the project, ensuring a multidimensional approach to complex development challenges. 

Structural impact projects often combine more than one modality of South-South Cooperation such as knowledge exchange, humanitarian cooperation, and financial cooperation, among others. 

The concept stems from Brazil’s experience with smaller, activity-based projects and the understanding that these types of initiatives are less likely to deliver the expected results in the partner country. 

Structural impact projects innovate in two aspects. First, by integrating human resources training, capacity building and institutional development, these projects stop the passive transfer of knowledge and technology. Second, by exploring the endogenous capacities and capabilities in the beneficiary country, these projects contribute to the strengthening of local institutions, foster local capacity and knowledge, promote dialogue and empower local actors to lead the development process of their own countries.

Structural impact projects have been gaining momentum in Brazil, with over 12 ongoing initiatives totaling more than $500 million over the next 20 years. The main Brazilian cooperation projects in Africa and South America today follow this model and combine training of human resources; and capacity building in research, teaching and services to strengthen (or create) the "institutional infrastructure" in the partner country. This institutional infrastructure often includes health systems, ministries of justice, schools of public administration, universities or technical courses (medicine, dentistry, nursing, etc.), among others.

The Pro-Savannah project, based on a regional development program in Mozambique with a twenty-year timeframe, is an example of structural impact project. The Pro-Savannah is similar to that undertaken in Brazil in the 1970s to boost the productivity of the "Cerrado” region, which has characteristics resembling those of African savannahs. From roughly 1970 to 2000, technical cooperation and funding from Japan helped Brazil adapt the soybean to the “Cerrado”, - the most extensive woodland-savannah in South America, with a pronounced dry season – to become one of the world’s largest producers of soybeans. Now both Brazil and Japan are helping Mozambican small farmers in much the same way. 

What lessons can Brazil and Indonesia learn form each other? 

As Brazilian and Indonesian cooperation programs reach maturity, the two countries have much to learn from each other’s experiences in order to scale up their contribution in international development. 

The Brazilian and the Indonesian South-South cooperation programs have their roots in a time when these countries were recipients of development aid. However, the Brazilian cooperation program was set up within the Ministry of Foreign Affairs and there remained, making it easier to evolve with the country’s international profile. The Indonesian program in turn depended on a complex coordination mosaic among four Ministries since its early stages. Without a robust policy framework, it would possibly be even more challenging to keep the program bound together throughout the years.


The policy frameworks were not as relevant to the Brazilian cooperation as they were in the Indonesian case. At least not until now. South-South cooperation in Brazil has many different institutional layers, a complex operational structure and few coordination mechanisms. As Brazilian cooperation reaches maturity, the development of a policy framework that sets common goals for the different implementing entities and that leverages the knowledge within the country becomes even more relevant. 


A policy framework for Brazilian South-South cooperation could also help solve other institutional and operational bottlenecks in the Brazilian cooperation system, such as the limitations to program set-up and implementation imposed by an outdated regulatory framework, human resources constraints, poor monitoring and evaluation tools, among others. 


Likewise in Indonesia, more robust program designs involving partners within and beyond government could not flourish amid a scenario of fragmentation and lack of coordination. Having bold policy frameworks in place were an imperative to advance the country’s South-South cooperation program.


The maturation process of the country’s South-South cooperation program is closely linked to the establishment of a central agency with management and oversight functions. Similar to the Brazilian case, this central agency can play a pivotal role in developing partnerships with the private sector and strengthening economic cooperation through trade and investment. Technical and economic cooperation is expected to complement each other, leverage partnerships and achieve more ambitious results. North-South Cooperation, in turn, can be channeled to more strategic interventions, and/or to support partnerships on global issues such as aid effectiveness, human rights, climate change and green economics. 

Brazil has reached a stage in its South-South Cooperation program that requires the structures Indonesia has developed in order to advance; so has Indonesia to draw upon the Brazilian experience. This is how the two countries can learn from each other’s experiences in innovating and scaling up South-South cooperation.

READ ALSO:

Part #1: Learning from peers: How are Brazil and Indonesia structuring institutional and operational models for South-South Cooperation?