WHAT WILL MAKE AID MORE EFFECTIVE

1

WHAT WILL MAKE AID MORE
EFFECTIVE?

• By Charles Mutasa
• Ottawa, Canada
• 2nd February, 2008

2

• IN AFRICA THE CHINESE ARE MORE POPULAR THAN THE
  AID EFFECTIVENESS AGENDA

3
Outline of presentation

• What is the Paris declaration?.
• Paris Declaration and issues for deepening and
  advancing aid effectiveness.
• Civic Issues - Roles responsibilities
• An African scenario- Mozambique
• Proposals for Ghana and Doha

4
Key Events in ODA

• 2000 Millenium Declaration
• 2002 Monterry consensus 2003 Rome High level
  Forum 2004 Marrakech Roundtable on Managing for
  Results
• Paris Declaration of 2005 (HLF II)
• 2005 Gleneagles G8

5
What is the Paris Declaration?

• Outcome of the 2005 Paris High level forum of
  partner countries , donor countries and
  development agencies on aid effectiveness.
• Attended by 60 partner countries , 30 donor
  countries 30 developing agencies, including
  the World bank.
• The primary objective is to make joint progress
  towards enhanced Aid effectiveness

6
Paris Declaration Principles

• Ownership
• -National Development Strategies
• -IFMIS and MTEF
• Alignment (Capacity rqd) Instrument is JAS
• JAS regarded by some donors as non-binding
  document
• Donors to adhere to Partner Countries PFM
  Procurement Systems

7
Harmonization (Political will)

• -Donors become less burdensome to recipient Cs
• -Shared Analysis of field missions
• -Joint Diagnostic work
• Managing for Results(Database info lacking)
• -Results orientated Focus -Performance assessment
  that measures progress

8
Mutual Accountability

• Transparent accountable relations to each other
• Inclusion of citizens in the pol econ
  activities of the state-from initiation to
  implementation stages.
• Adequate information sharing.

9
Mozambique

• Population (million) 20 m (2007 est)
• GDP (per capita) US350 (2006)
• GDP growth rate 7.5 (1996-2006)
• Poverty 69.4(1997) to 54.1 (2003)
• Life expectancy (Years) 41.6 (2004)
• HDI rank 168 out of 177 (2006)
• Donor darling Share of ODA to Budget (about
  50)
• Post conflict, democratic and stable HIPC, and
  PRSP country
• Vulnerable to natural disasters

10
Moz Development Plans

• -Government Five Year Programme (2005-2009)
  -Plano de Accao para a Reducao da Pobreza
  Absoluta (PARPA II, PRSP II, 2006-2009).
  Cenario Fiscal de Medio Prazo (CFMP, MTEF)
• -More emphasis on Direct Budget support mechanism
  
• - 19 donors with Japan UN USA obervers.

11
Principles in practice

• Government at drivers seat- PARPA ? ? main
  operational framework of the Five Year Program
• MoU covering all aid modalities ? more aid on the
  budget Vs parallel systems
• Regular government-donor dialogue under
  Government leadership

12
Performance Assessment

• Gvt-donor Performance Assessment Framework (PAF)
  harmonized with the PD aligned with PARPA with
  clear indicators agreed ?Joint Reviews based on
  MoU
• G19 annual performance assessments that of
  individual donor
• GOM/G19 commissioned assessments
• Independent Consultancy

13
Problems

• Weak domestic acctability due to heavy reliance
  on external assistance.
• Predictability improved slightly, Project
  funding still huge esp. in Health Agric.
• Big donor grouping but no aid policy or strategy.
  
• Assessment bias what actions for donors who
  fail to meet their commitments?
• Unclear roles of CSOs in a DBS environt
• Poor quality or unavailability of statistical
  data e.g. Mozambique

14
General Lessons Learnt

• Public Expd. Fin accatability yet to be
  internalized domesticated
• Capacity constraints in human resources
  retention a serious constraint.
• Urgent need to consolidate these systems.
• Weak legal framework need to be strengthened to
  deter corruption

15
Lessons Learnt (contd)

• A national Aid policy strategy is key for the
  PDs success.
• Very few parliaments are involved in the AE
  agenda. (Most kept in the dark).

16
What's missing in the Paris Declaration?

• Too focused primarily on the state- Vs Stronger
  partnerships.
• Ignored the political role- Change is political
• Greater coherence (what to do with non-aid
  policies).

17
Development strategies are sustainable if they
are developed by recipient countries

• Good governance (sound policy environment)
• - Human rights gender issues missing.
• Building capacity (resource transfer- you need
  local capacity to sustain investments)
• Engaging civil society- ensures that aid
  investments reach the poor and marginalized

18
CSOs Demands

• An end to Conditionality Tied aid
• Accountability and participation of people
• UN as appropriate forum to address all issues
  under development effectiveness
• Human rights-based approach to development for
  the poor

19
Some of the current barriers

• One-way accountability Vs a system of genuine
  mutual accountability
• Resistance to CSOs as independent assessors and
  monitors.
• Donors numerous pledges to improve both aid
  quality and quantity not honoured over the past
  three decades.
• Double counting of debt relief

20
Proposals for Accra Doha

• Recognition of CSOs non-state actors outlining
  their clear roles in PD.
• Capacity devpt for domestication
  internalization of national systems.
• A revisit of Aid conditionality
• The need for national aid policies/strategies
• Sustainability Aid Exit plans domestic
  resource mobilization
• Coherence with non-aid policies.

21
Conclusion

• Development aid is meant to contribute to the
  economic development of poor countries
• The PD principles its implementation leaves a
  lot to be desired
• However one must acknowledge that there is
  progress towards change its expectations will
  be one day met.
• There is need to exit from donor dependency but
  avoid backtracking on the AE agenda.

22

• Discuss PD modification incorporation in UN
  system make it binding document.
• Incentive/punitive measures rqd for donors.

23
End of Presentation

• Thank you
• for your attention