Seeking Help to Finance Projects in Government: International Cooperation

Welcome to a new year with a very interesting topic: The financing methods of Government institutions. I mean, not so much for its content, but the distance between what the common people believe and what it really is. For this article we have the help of one of the greatest specialists in International Cooperation in Argentina, Dr. Raquel Deas.

Introduction

When it comes to implementing changes in Government structures, financial resources determine almost all of the scope, since if funds are scarce or are not stable over time they will simply make the project unfeasible. In this sense, we can indicate that there are different forms of financing, for example International Cooperation, which will be discussed in this post.

International Cooperation

In many cases, in jurisdictions that qualify for this type of funding, international cooperation entities (or donors) will provide non-reimbursable funds for Goverment Modernization and improvement.

In this sense, it is necessary to point out that these "non-reimbursable funds" translate into the transfer of knowledge and technologies between countries and/or multilateral organizations, generally through inputs (consulting, equipment, and/or technical material and training).

A simplified classification of the international cooperation sources can be determined on the actors involved:

1. Governmental
   1. Bilateral
      1. North-South: developed countries to less developed countries (colloquially coined ads "first to third world" funding).
      2. South-South: countries of similar or equal relative development.
   2. Multilateral
      1. Global Organizations, mostly part of the UN, including UNDP, UNOPS and UNIDO.
      2. Regional Organizations, such as the OAS and regional tax organizations such as IOTA and CATA.
2. Non-Governmental
   1. It is executed by Organisms, Associations, Foundations (collectively called NGOs).
   2. This type of cooperation also obeys political, social, economic, environmental, religious, and cultural interests, among others.

International cooperation scenarios are very dynamic at a global level in terms of objectives, volumes, beneficiaries and modalities, all of them subject to the conditionality of the different providers (economic, political, environmental and other priority criteria). This conditionality must be observed by the receiving States at the time of negotiation, making their priorities compatible with their feasibility in the global framework.

These scenarios must be observed by the receiving States when searching for sources in accordance with national priorities and their feasibility in the global framework.

Pros and cons of international cooperation

This and other principles are available in the book Principios de Administración Tributaria published by Thomson Reuters - La Ley.