AID EFFECTIVENESS: Implications for Emerging Donors

1
AID EFFECTIVENESSImplications for Emerging
Donors
Presentation by George Carner Vice Chair and
U.S. Representative to the OECDs Development
Assistance Committee
2
OUTLINE

• The Paris Commitments
• Plans for Monitoring Progress
• Early Baseline Survey Observations
• Dilemmas for Emerging Donors
• Some Tips
• A Golden Opportunity

3
What makes aid ineffective
Donors develop own plans and programs. Dispersed
effort, suboptimal use of resources Countries
cannot handle these demands.

• Limited country leadership and capacity to plan
  and implement programs
• Too little coordination among donors
• Too many projects with different procedures.

Result sub-optimal impact.
4
THE PARIS DECLARATION
PARIS DECLARATION
5
MUTUAL COMMITMENT TO

• Concerted action at the country level
• Translating Paris Declaration into local action
  plans.
• Greater coherence among donors and between donors
  and partner countries around shared objectives.
• More mature partnership based on mutual
  accountability.
• More ownership by recipients
• Greater ability to plan and prioritize aid.
  better PRS
• More transparent and accountable aid governance
  practices that meet acceptable standards.
  strengthened PFM Procurement Systems
• More direction to aid funded development
  programmes.

6

• Alignment of aid with country priorities
• -- Support PRS implementation, Sector strategies
• Harmonized approaches, lessen burden on
  recipients through
• More coordinated implementation arrangements.
• Less duplicative donor missions, reports
• More reliance on strengthened country systems.
• Complementary use of various aid modalities
• Transparency on aid delivery (commitments,
  disbursements)
• Simpler procedures
• Shared Results
• Use of common results frameworks and reporting to
  measure impact of plans and programs.
• Mutual review of progress.

7
PLANS FOR MONITORING PROGRESS
Aim To encourage and track improvements and
behaviour change

• 56 monitorable commitments
• Assessed at country level (CGs, RTs etc.) and
• Monitored internationally.
• 12 Indicators of Progress with measurable
  targets
• Measure progress of donors and partners.
• Based on collective action, building on local
  processes.
• DACs WP-EFF coordinating the international
  partnership
• Designed methodology provided technical
  guidance.
• Aggregating country data and drafting progress
  reports.

8
MONITORING STAGES

• 2006 Baseline Survey and Report
• (A summary baseline report will be submitted
  to the DAC SLM and the final report will be
  ready by March 07 for HLM and other fora).
• 2008 Progress Survey and Report
• (as input for HLF3 in Ghana in 2008)
• 2010 Final Survey and Report
• (supplemented by cross- country evaluation,
  peer reviews, global monitoring).

9
Framework of Indicators
Indicators Indicators Survey Desk review
1 Ownership Operational PRS WB CDF/AER
2a Quality of PFM systems WB CPIA
2b Quality Procurement systems JV-Proc.
3 Aid reported on budget ?
4 Coordinated capacity dev. ?
5a Use of country PFM systems ?
5b Use of country procurement system ?
6 Parallel PIUs ?
7 In-year predictability ?
8 Untied aid OECD DAC
9 Use of programme-based approaches ?
10 Joint missions country analytic work ?
11 Sound performance assessment framework WB CDF/AER
12 Reviews of mutual accountability ?
10
EARLY SURVEY OBSERVATIONS

• Progress on 05 data collection so far, so good.
• Forty countries participating, 30 have submitted
  data.
• High donor participation covering about 80 of
  ODA .
• Managing the survey has been very demanding.
• Useful in opening a dialogue.
• Improving understanding of status of aid
  effectiveness indicators in country and what
  needs to improve.
• Baselines show starting from a limited base but
  progress apparent in many countries.

11
DILEMMAS FOR EMERGING DONORS

• Choice of aid modalities (projects vs. programs )
• Showing the flag vs. joining others
• Assuring accountability vs. using country systems
  
• Tying vs. Untying of procurement
• Attending to implementation vs. local donor
  coordination
• Signing onto PD implementation plans
• Managing for results

12
TIPS Aid modalities

• Pay attention to partner priorities and local
  capacity building needs when designing programs
• Consider using program-based approaches
• --For example, favor aligned projects with
  sector programs over free standing projects
• --Try some sector budget support.
• In deciding on implementation modalities, look to
  maximize complementarity with other donor
  programs.

13
TIPS Using country
systems

• Use country institutions, systems, procedures for
  implementation, financial management,
  procurement, accounting, and audit, to the extent
  possible.
• Or if not reliable, use existing donor systems
  (e.g. WB procurement procedures) rather than
  creating own systems.
• Join others in strengthening local
  capacities/systems
• Look to favor local sourcing, procurement and
  spending through use of local contracts and
  grants engaging host country experts, NGOs and
  firms, and purchasing more goods locally.

14
TIPS Local Donor
Coordination

• Explore delegated cooperation opportunities.
• Participate in implementing local aid
  effectiveness action plans and monitoring
  processes or delegate to other donor.
• Join other donors in endorsing local compacts,
  MOUs, agreements, to greatest extent possible.

15
TIPS Managing for Results

• Build results into your programs at the outset.
• Join other donors in helping strengthen partner
  results monitoring and reporting systems rather
  than setting up your own, which are costly and
  staff intensive.
• Rely on others data collection and reporting
  systems.

16
A GOLDEN OPPORTUNITY

• As Emerging donors you do not need to retrace the
  footsteps of longer standing donors.
• You have the chance to set up your development
  cooperation systems on a 21st Century model
• In spirit of Paris Declaration, adopt best
  practices to achieve greater aid effectiveness
  development impact.