8 Rania A Mashat2

From principle to practice, Egypt's minister of international co-operation outlines how to design a common agenda to deliver an effective model for inclusive partnerships.

The Covid-19 pandemic has imposed a new reality that has pushed the international community to both reflect on the present and rethink the future, factoring in growing global disparities, climatic upheavals and technological advancements, as well as calling for a more inclusive and integrated engagement of various stakeholders in the international development process to deliver effective and sustainable people-centric results.

To address this changing global dynamic at the national level in Egypt, a country-led multi-stakeholder engagement framework was developed, recognising that sustainable development is only attainable through a collective, integrated effort, in keeping with the UN 2030 Agenda’s inclusive mandate to “leave no one behind”. This approach is detailed in the book Stakeholder Engagement Through Economic Diplomacy, published by the London School of Economics in 2021, which underscores Egypt’s experience in fostering multilateralism and international co-operation, all built on enhanced coordination, transparency, accountability and communication.

The groundwork in the book is tied to three key principles of economic diplomacy: regularly hosting multi-stakeholder platforms to engage different stakeholders in consistent and conducive dialogues to ensure alignment and complementarity; mapping official development assistance to the UN’s Sustainable Development Goals (SDGs) to enhance development co-operation policies; and adopting a consistent global partnerships narrative that puts people at the core, projects in action and purpose as the driver.

Against this backdrop, and with the wider accessibility of Covid vaccines and easing of travel restrictions, Egypt organised the first edition of the Egypt–International Co-operation Forum (Egypt–ICF) in September 2021, with the theme ‘Engaging for Impact’. The forum convened the global community in Cairo to stimulate much-needed engagement on highlighting the pathways and modalities of the future development trajectory.

The forum identified three core themes for inclusive, sustainable and green recovery, namely: reinvigorating multilateralism by bringing all stakeholders into the development process; promoting a smooth and just transition to a green economy; and harnessing the potential of digital transformation.

The Egypt–ICF concluded with the Cairo Communiqué, reflecting Egypt’s commitment, alongside development stakeholders, to pave the way towards common goals and deliver value-centric results through harmonised, integrated and sustainable practices.

Reinvigorating multilateralism

Since the launch of the UN 2030 Agenda, the idea of leaving no one behind has been the catalyst for international co-operation. Now, more than ever, developing an inclusive, agile and effective multilateral co-operation framework is central to realising this agenda and to addressing emerging global challenges, and more importantly addressing the growing financing gap to pave the way to an inclusive and green recovery.

Development co-operation financing, as well as government budgets, have become strained with the onset of the pandemic and its aftermath, resulting in fiscal retrenchment in many developed countries, instilling uncertainties regarding future flows that, in turn, exacerbate the SDG financing gap, which is currently estimated at $3.7tn.

Private-sector engagement in development has thus become essential to align more global finance in support of the [UN] 2030 Agenda

Private-sector engagement in development has thus become essential to align more global finance in support of the 2030 Agenda. Increasing awareness of the role of the private sector has the potential to unlock valuable resources that can be directed towards sustainable development and bridge the financing gap. Therefore, innovative and blended finance are needed to mobilise new forms of capital to achieve the SDGs.

Meanwhile, the growing role of the ‘global south’ makes its voice more prominent on the international stage and opens gateways for impactful partnerships. In Africa, for example, the introduction of the African Continental Free Trade Agreement (AfCFTA) has the potential to bring $450bn in estimated income gains — enough to lift 30 million people out of extreme poverty. To realise that prospect, robust digital connectivity, effective policies and quality infrastructure are needed to enable access to cross-border trade.

It is in that spirit that during the discussions at the Egypt–ICF, participants called for strengthened multilateralism, especially through encouraging private sector engagement in development and enhancing south–south and triangular co-operation to leverage and upscale innovations to help meet the SDGs.

A smooth and just transition

The paradigm shift in the global agenda over the past two years has helped rearrange priorities, especially with regards to climate change mitigation and adaptation efforts. This was evident during the UN Climate Change Conference (COP26) in Glasgow in November, when voices calling for joint action towards a common future were more prominent and effective.

Egypt has been a key player in the global efforts to combat climate change. It has demonstrated a strong commitment to partaking in climate action and has always been an adamant advocate of the principles of equity and common but differentiated responsibilities.

In that regard, Egypt has adopted a range of strategies to address climate change, the most prominent being the recently launched National Climate Change Strategy 2050. Egypt is also one of only a few countries in the Middle East and north Africa that has issued green bonds to help catalyse investments for a green transition. Additionally, the country developed an Integrated Sustainable Energy Strategy in 2015 and is working towards increasing the share of renewables in the energy mix to 42% by 2035.

However, climate change poses a two-fold challenge, as was outlined during Egypt–ICF and highlighted in the communiqué. It requires immediate adaptation and mitigation interventions, while imposing higher costs on developing and transition economies. Unlocking investments to support development efforts is therefore pivotal for a gradual and just green transition.

In the lead up to COP27, the Egyptian government is committed to: fostering partnerships and dialogue that prioritise green recovery; emphasising the importance of meeting the targets for green financing, as specified in the Paris Agreement; and noting the differentiated responsibilities considering countries’ divergent circumstances and level of contribution to climate change.

Harnessing digital’s potential 

Digital transformation was also at the centre of discussions during the forum, since the architecture of power of global co-operation today is based on access to scientific and expert knowledge. Emerging and developing economies need to bridge this widening gap by promoting innovative solutions, especially those led by youth and women.

Recent figures show that the global digital economy is valued at around $11.5tn; this is equivalent to 15.5% of the world’s overall gross domestic product, but expected to reach 25% in less than a decade. This fast-growing momentum of digital technologies is reshaping business models, with important implications for the productivity of labour and capital, lowering transaction costs and increasing access to global markets. As such, the rise of the digital economy offers a unique opportunity to unlock new pathways for economic diversification and job creation, attracting new investments in various sectors and improving the welfare of citizens.

As part of Egypt’s digital transformation, significant investments have been deployed to enhance the country’s IT infrastructure and encourage innovation to increase the private sector’s contribution to sustainable development. The government has launched the ‘Digital Egypt’ plan, which aims to promote a knowledge-based economy that is strengthened by a highly skilled workforce. To that end, the private sector plays a vital role in reinforcing the government’s digital transformation and upskilling women and youth in areas of artificial intelligence and e-commerce, among others.

Digital transformation undoubtedly opens unlimited possibilities to reinforce social cohesion and inclusion, as well as sustainable production patterns and practices.

Looking ahead

Embracing an ethos of renewed multilateralism requires collective action on effective mechanisms to mobilise the additional $3.7tn a year needed to achieve the SDGs. It is evident that the new development trajectory, with climate action and digital transformation at the forefront, calls for leveraging the comparative advantage of different stakeholders to deliver on effective results towards realising the UN 2030 Agenda.

An effective model for inclusive partnerships is for each stakeholder to ensure the optimal utilisation of available resources, strengthen mutual accountability and aspire for sustainable impact. This new form of multilateralism facilitates knowledge sharing, promotes agility and flexibility, and denotes inclusive governance and sustainable recovery.

Rania Al-Mashat is minister of international co-operation, Egypt. 

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