DIVISION OF LABOUR

1
DIVISION OF LABOUR

• European Commission

2
Division of Labour EU Code of Conduct

• Political commitment
• EU as driving force for complementarity and
  division of labour
• Promote wide discussions with partner country and
  other donors under leadership of partner
  government

3
Division of Labour EU Code of Conduct

• Apply to present, future and additional ODA
  (scaling up) no prejudice to existing
  obligations
• Open to all donors
• Not at cost of global aid volumes and
  predictability
• Based on country needs long term perspective
• Address imbalances of aid darlings and
  orphans
• Self-assess respective areas of strength before
  Accra
• Added value of EU diversity of expertise
• Commission to report annually on implementation
  (EDF and Budget) undertake self assessment of
  comparative advantage

4
EU Code of Conduct Guiding Principles

• 1 Maximum of three sectors in-country plus GBS
  if applicable, support for civil society,
  research, education scholarships, etc
• Comparative advantage of each donor self
  assessed, endorsed by partner government and
  recognised by other donors
• Partner countries to identify areas for
  increased or reduced support and which donor to
  remain engaged in sector
• Donors to work with governments to identify
  sectors in which to remain and propose sectors
  from which they will withdraw
• Long term engagement in sectors

5
EU Code of ConductGuiding Principles

• 2 Redeploy funds in country based on local
  negotiations
• Where donors are in more than three sectors,
  either use delegated cooperation, or redeploy
  into GBS, or exit responsibly redeploying funds
  in 3 priority sectors
• 3 In each sector establish lead donor for all
  donor coordination to reduce transaction cost of
  government
• 4 Even within 3 sectors of engagement or in
  additional sectors enter into delegated
  cooperation arrangements
• 5 In priority sectors relevant to poverty
  reduction ensure adequate donor support
• 6 Apply principles to regional level

6
EU Code of ConductGuiding principles

• 7 Establish limited number of priority countries
  and in non-priority countries consider delegated
  authority
• 8 Address orphans gap often fragile states
• 9 Analyse and expand areas of strength
  Commission to further develop expertise in areas
  of comparative advantage and, particularly at
  country level in line with de-concentration and
  ownership of partner countries
• 10 Other dimensions of complementarity vertical
  complementarity, joint/coordinated programmes
• 11 Deepen reform decentralised structure,
  institutional incentives and redeployment of
  financial and human resources

7
Division of Labour EU Code of Conduct

• Current situation research state of play best
  practises
• EU Donor Atlas 2007
• Compendium on Division of labour (EC- OECD/DAC)
• Study on EU Co-financing
• EU Atlas on Response to situations of fragility
• OECD/DAC Study on Aid fragmentation

8
Country example TANZANIA Donor Matrix today
9
Country example TANZANIA the way it could
be EU division of labour

• Tanzania (2) fictive scenario based on EU
  division of labour

10
Country example TANZANIA the way it could
be donor wide division of labour

• Tanzania (3) fictive scenario based on donor
  wide division of labour

11
Country example TANZANIA Clear need for
division of labour

• 40-plus donors, high transaction cost, Government
  with low capacity
• Government enthusiasm at high level
• Multi-stakeholder ownership of 2nd generation PRS
  (the source document)
• Move towards enhanced budget support (hence PFM,
  budget procedures, procurement etc..)

12
Country example Tanzania the process so far

• Comprehensive process for all donors
• Joint Assistance Strategy Tanzania (JAST) is
  meant to be a comprehensive process, should
  integrate EU harmonisation and one-UN
  harmonisation
• Joint country analysis, joint risk analysis,
  joint response strategy and donor-specific
  annexes
• Results based joint monitoring and evaluation
• Consensus document
• Acceptance of JAS joint programming document for
  own Commission programming document

13
Country example TanzaniaKey issues for next
steps

• Refining, deepening Division of Labour
• Lead and active donor status (small agencies,
  strong agencies, natural chair ambition of UN)
• Delegated cooperation/silent partnerships
• Changing donor behaviour
• Refine and deepen review and evaluation
• Involving other stakeholders (non state actors)
• Including other donors (China)

14
Fast tracking division of labour

• Initiative by Comm. L. Michel
• Identification of countries with potential for
  possible delegation between EC and MS and lead
  donorship at sector level
• (EU Code of Conduct principles 3 and 4)
• Many MS present
• Based on comparative advantage
• Information from EC Delegations
• Initiative by MS and EC to facilitate division
  of labour on the ground

15
Countries for fast tracking DoL

• Bolivia (LM) Burundi (LM)
• Nicaragua Cameroon
• Haiti (LM) CAR
• Bangladesh Ethiopia (LM)
• Cambodia (LM) Ghana
• Pakistan Kenya (LM)
• Vietnam (LM) Madagascar
• Laos (LM) Mali (LM)
• Albania Malawi (LM)
• Kyrgyz Rep. Mozambique(LM)
• FYROM Rwanda
• Moldova Senegal
• Mongolia, Sierra Leone
• Benin Tanzania
• Burkina Faso Uganda (LM)
• Zambia (LM)

16
Fast tracking Division of Labour

• Next steps
• Facilitators (MS/EC) to push for Division of
  Labour on the ground with EU donors (and other
  donors)
• Consultations on the ground, working out DoL
• - with partner country government
• - with Member States (and other donors)
• Further analyse feasability for Delegated
  Cooperation
• of EC with MS
• For delegated cooperation where possible proceed
  to concrete steps
• - ex ante assessment by AIDCO (if not yet done)
• - work out contractual arrangements