1. February 2005 Nicaragua: Harmonization and Alignment Process Mauricio Gómez Lacayo Viceminister – Secretary Ministry of Foreign Affairs

2. February 2005 Harmonization and Alignment of International Cooperation Objective:  To obtain a more effective, efficient and appropriate development aid  To achieve a larger and greater impact of the external resources by significantly reducing transaction costs  To increase the benefits of the aid recipients  To establish strategic alliances : Between the Governmental Institutions Among the National and International Lending Community With Civil Society

3. February 2005 Current situation of the Cooperation Worldwide recognition: impact from cooperation has not been as expected Cooperation:  dispersed and duplicity of efforts  high transaction costs  weak interagency coordination  weak coordination with and among governmental entities  distorting effect on the capacities of national institutions

4. February 2005 In this context, what have we done?

5. February 2005 Nicaragua´s Process overview Analysis Need for change I Coordinating Forum Strengthening of Cooperation Coordination Managua Declaration Consensus on mechanisms Proposition of instruments and mechanisms II Coordinating Forum Mechanisms Implementation SWAPs Roma Monterrey Round Tables

6. February 2005 Along with these Process We have formed Strategic Alliances  OECD DAC JCLA Process OECD DAC Survey Partner Country Meeting Regional Forums  South South Cooperation  Harmonization and Alignment Action Plan Government and Donor Community

7. February 2005 The Results…. Strengthening of the National Ownership Permanent and institutionalised mechanisms Highlighting H&A Agenda  Gathering Local Actors  Getting International Attention and Support Obtaining a base line to measure advances and pending tasks  OECD DAC Survey

8. February 2005 The Remaining Challenges Ownership  Strengthening our own capacities Brain Drain Regulation of Technical Assistance Dissolution of Parallel Structures  Promoting in a energetic and jointly manner all on going processes Implementation of H&A Action Plan Reinforcement of Official Coordination mechanisms

9. February 2005 The Remaining Challenges Alignment  Generalized use of Country Systems SWAPS Budget Support  Better resources prevision Vital information for Planning and MTEF  One comprehensive Assessment Matrix  Alignment to the National Budget Cycle

10. February 2005 The Remaining Challenges Harmonization  Lower transaction costs Delegated Cooperation  Information Sharing Analytic works, studies and reports  Harmonisation of norms and procedures Joint Missions and Reports  Flexibility in allocation and reallocation of resources

11. February 2005 How to move Forward… Making the H&A Agenda the General Agenda  H&A approach should be part of everyone's work and objectives  Donor and Lending Community as well as Government should integrate it into their organizational culture Finding relatively uncompromising areas to avance on  Little Changes with great impact Parallels structures back to Government entities Projects funds to be manage by governmental institutions Sharing donors resource programming information

12. February 2005 How to move Forward… Making concrete compromises by Key Actors  Government  Donor and Lending Community  Civil Society Organizations Development of a Follow Up system Strategic Partner Realistic, Measurable and Reachable

13. February 2005 How to move Forward… Creating a dissemination Strategy  Constant information amongst the key actors Better and Greater Participation Feedback assurance  Clarification and unification of concepts All actors moving into the same direction Unification of efforts  Divulgation of progress made and challenges ahead

14. February 2005Conclussions Change management is a timely manner and both donor and country pace should be respected. No real progress will be made without a consensual strategy plan backed with real, concrete and measurable compromises from key actors.