Presentation on theme: "Aid Effectiveness Coordination Officers Workshop Glen Cove, New York"— Presentation transcript:
1Aid Effectiveness Coordination Officers Workshop Glen Cove, New York unite and deliver effective support for countriesAid EffectivenessCoordination Officers WorkshopGlen Cove, New YorkAbdul Hannan, Programme Advisor
2Topics we’ll cover today 1. The international aid architecture2. What is “aid effectiveness”?3. Aid effectiveness and the UN
4UN funding can only do so much Total funding for the UN’s development cooperation work is rising and reached $19 billion in 2007.Multilaterals only disburse 12 percent of total aid (official plus private; 30% of DAC ODA). The European Commission and the World Bank Group have grown to become the major multilateral players.The OECD countries provided USD billion in ODA in 2007, a decrease of 8.4% in real terms over the previous year. The fall was expected: ODA had been exceptionally high in 2005 and Decrease of ODA in real terms by 8.4% (OECD 2007)Still, donors are not on track to meet their aid volume commitments, which the 2005 G8 summit in 2005 estimated would raise ODA to $130 billion by While there was an encouraging upsurge in bilateral aid to sub-Saharan Africa (an increase of 10% in 2007, excluding debt relief), donors still face a real challenge in doubling total aid to Africa by 2010.
5Bilateral aid’s share of total aid has grown much more rapidly. · Multilateral aid agencies (around 230) outnumber donor and recipient countries combined.· Multilaterals only disburse 12 percent of total aid (official plus private), and about one quarterof total net country programmable aid.· Multilaterals disburse more towards Africa than do bilaterals.
6Core funding for the UN development system has plateaued. UN funding has failed to keep pace with overall development assistance. It rose by only 4% in the past decade, while contributions to the EC rose 56%, the International Development Association rose by 43%, and regional banks’ funding climbed 33%.Most of the UN’s increase is from non-core, earmarked program or supplementary funding, which has encouraged supply-driven approaches to development assistance. UN System core funding for development fell 26% betweenThis undermines the principle of country ownership and the UN’s ability to formulate long-term strategies.Net ODA from OECD DAC countries to multilateral institutions at constant 2006 prices and exchange rates (millions USD)
7… so the UN should focus on technical assistance and leverage its impartiality
8The UN’s technical expertise is a strength only when deployed strategically and coherently. The UN system has unique advantages in helping countries develop. We are a strong and reliable partner with a unique depth of capacity and breadth of voice.The breadth and diversity of the UN system is also a weakness, because it’s often difficult for these very different organizations to plan and work together strategically.Some donors still see the UN’s field operations as too cumbersome and plagued by duplication in programming.Developing country governments, particularly small ones, often find dealing with the UN incurs excessive transaction costs.Cooperation is hindered by competition for funding, governance bodies that set divergent priorities, and different business practices.Even when mandates intersect, UN organizations tend to operate alone with little synergy and coordination between them.Meanwhile, the international aid architecture has changed dramatically. There are now many more donors, including middle income countries with different approaches.Funding patterns are changing significantly. A bigger share of aid is going directly to governments’ budgets, to vertical funds and to small NGOs. Donors have many more choices about where to put their money. Most money is now flowing bilaterally.
9Any questions on how the UN fits into the international aid architecture?
101. The international aid architecture 2. What is “aid effectiveness”?3. Aid effectiveness and the UN
11The average number of donors per country is growing. The average number of donors per country is growing, while average project size appearsto be shrinking, implying growing fragmentation of aid.Average of 12 donors per country in the 1960sAverage of 33 donors per country inPrivate and “emerging” donorsMore donors, smaller projects = growing fragmentationDifficult for local governments to drive the agenda1960s
12There are new modalities, mechanisms, Initiatives and partnerships with an emphasis on setting goals and results.unite and deliver effective support for countriesEarmarking of ODA“Vertical” fundsBudget supportSWApsHighly-Indebted Poor CountriesPoverty Reduction Growth FacilityPoverty Reduction Strategy Credits• greater consensus on goals: a wide consensus on the need to focus efforts on reducingpoverty• more emphasis on results: leading to the identification of clear and ambitious developmenttargets (the Millennium Development Goals) which emphasise poverty reduction;• new mechanisms and initiatives to channel resources rapidly and effectively to countries inneed: e.g. the HIPC initiative, the Poverty Reduction Growth Facility (IMF) and PovertyReduction Strategy Credits (World Bank);• new approaches to improve aid effectiveness: the introduction of national poverty reductionstrategies as a mechanism for explicitly linking policies, public expenditure allocations andpoverty reduction goals; see and moves towards greaterharmonisation and alignment see• new aid instruments and approaches: disillusionment with impact using traditional aidinstruments has led to increased emphasis on programme type support (budget support andsector programme support);• stronger partnerships: increased emphasis on strengthening the role of governments anddeveloping true partnership approaches in which donor-government relationships areincreasingly based on Government ownership and leadership, broad participation, partnership,mutual accountability and long-term commitment.
13Aid effectiveness is gathering momentum. Millennium Development Goals Why use graphics from PowerPointing.com?Millennium DeclarationRome Forum(Harmonization)Doha DeclarationSeoul200020022003200520082011• 2000 Millennium Declaration (and the MDGs)The Declaration affirms the obligation of all members of the UN “to strive for the fullprotection and promotion in all countries of civil, political, economic, social and culturalrights for all”. Members declared that they would “spare no effort to free our fellow men,women and children from the abject and dehumanizing conditions of extreme poverty…”• 2002 Monterrey UN Conference on Financing for DevelopmentA partnership between developed and developing countries to achieve the MDGs in thecontext of open markets for economic growth, good governance, increasing aid flows, andimproving the effectiveness of aid to achieve these objectives.• 2003 Rome High-Level Forum (OECD)In February 2003, leaders of the major multilateral development banks and internationaland bilateral organizations, and donor and recipient country representatives gathered inRome for the High-Level Forum on Harmonization (HLF-Rome). This Forum spotlighted theissue of harmonization and alignment as a major development issue and gave internationallegitimacy to the good practice principles for harmonization and alignment• 2005 Paris High-Level Forum and Declaration (OECD)The Paris High Level Forum of 2005 was attended by development officials and ministersfrom 91 countries, 26 donor organizations and partner countries, representatives of civilsociety organizations and the private sector. The participants collectively resolved to reformthe delivering andAccra AgendaMonterrey ConsensusParis Declaration
14The Paris Declaration set five principles for more effective aid, with indicators and targets. • 2005 Paris High-Level Forum and Declaration (OECD)The Paris High Level Forum of 2005 was attended by development officials and ministersfrom 91 countries, 26 donor organizations and partner countries, representatives of civilsociety organizations and the private sector. The participants collectively resolved to reformthe delivering and5 principles for more effective aidIndicators and targets set for 2010A “spirit” of doing things differently
15Aid effectiveness principles mutual accountabilityownershipalignmentmanaging for resultsharmonizationownership by countries - partner countries set their own strategies for poverty reduction, improve their institutions and tackle corruption;alignment with countries’ strategies, systems and procedures – donors align behind partner country objectives and use local systems;harmonisation of donors’ actions – donors coordinate, simplify procedures and share information to avoid duplication;managing for results – partner countries and donors shift focus to development results and results get measured; andmutual accountability – donors and partners are accountable for development results.
221. The international aid architecture 2. What is “aid effectiveness”?3. Aid effectiveness and the UN
23The UN system has unique advantages and challenges in delivering effective aid. The UN system has unique advantages in helping countries develop. We are a strong and reliable partner with a unique depth of capacity and breadth of voice.The breadth and diversity of the UN system is also a weakness, because it’s often difficult for these very different organizations to plan and work together strategically.Some donors still see the UN’s field operations as too cumbersome and plagued by duplication in programming.Developing country governments, particularly small ones, often find dealing with the UN incurs excessive transaction costs.Cooperation is hindered by competition for funding, governance bodies that set divergent priorities, and different business practices.Even when mandates intersect, UN organizations tend to operate alone with little synergy and coordination between them.
24Impartiality makes the UN a trusted government partner that can help coordinate with donors. The UN often plays a lead role in donor cooperation fora in countryFor example, the UN is well-placed to provide governments with technical advice where a SWAP is being used.
25Aid effectiveness builds on the existing reform agenda set by UN member states Member states have asked the UN system to be more coherent, coordinated and strategicTCPR 2007Calls for “concrete, effective and timely action in implementing all agreed commitments on aid effectiveness, with clear monitoring and deadlines”““welcomes efforts and initiatives to enhance the quality of aid and to increase its impact, including the implementation of the Paris Declaration on Aid Effectiveness”.
27UN progress: Indicator 3 Proportion of aid flows to the government sector that is reported on partners’ national budgets.UNCTs on targetin 2007: 5 (9%)Technical assistanceprovided by the UNis harder to put onbudget than financialassistance
28UN progress: Indicator 4 Proportion of donor capacity-development support provided through coordinated programmes consistent with partners’ national development strategies.UNCTs on target in 2007: 35 (63%)Difficult to achieve uniform interpretations for this indicator
29UN progress: Indicator 5a proportion of aid flows that use public financial management systems in partner countriesProportion of aid flows that use public financial management systems in partner countries, which either (a) adhere to broadly accepted good practices or (b) have a reform programme in place to achieve these.UNCTs on target in 2007: 3 (5%)Key area for further UNreform
30UN progress: Indicator 5b Proportion of aid flows that use partner country procurement systems with good practices or reforms in progressIndicator 5b:the proportion of aid flows that use partner country procurement systems, which either (a) adhere to broadly accepted good practices or (b) have a reform programme in place to achieve these.UNCTs on targetin 2007: 1 (2%)Key area for further UNreformEconomies of scaleimportant too however
31UN progress: Indicator 6 Reduction in the number of parallel project implementation units per country.Indicator 6: the reduction in the number of parallel project implementation units (PIUs) per country – that is, those PIUs that are created outside the existing structures of national implementation agencies.UNCTs on targetin 2007: 11 (20%)Uncertainly aroundinterpretations for thisindicatorKey area for reform
32UN progress: Indicator 7 Proportion of aid disbursements released according to agreed schedules in annual or multi-year frameworks.Indicator 7: the proportion of aid disbursements released according to agreed schedules in annual or multi-year frameworks.UNCTs on targetin 2007: 4 (7%)Uncertainly aroundinterpretations for this
33UN progress: Indicator 9 proportion of aid provided as programme-based approachesIndicator 9: the proportion of aid provided as programme-based approaches.UNCTs on targetin 2007: 4 (7%)Key area for furtherUN reform
34UN progress: Indicator 10a Proportion of field missions that are joint.Indicator 10a: the proportion of field missions that are jointUNCTs on targetin 2007: 34 (61%)Good result, butunclear how muchIs intra-UNcollaboration andhow much isUN-externaldonor cooperation
35UN progress: Indicator 10b Proportion of country analytical work, including diagnostic reviews,that is joint.Indicator 10b: the proportion of country analytical work, including diagnostic reviews, that is joint.UNCTs on targetin 2007: 29 (52%)Good result, butunclear how muchis intra-UNcollaboration andhow much isUN-externaldonor cooperation
36The UNDG’s priority is to help UNCTs engage in the changing aid environment and do well in the 2011 survey.UNDAF indicators reflecting aid effectiveness principlesUNDG Guidance Note “UNCT Engagement in the Changing Aid Environment”UNDG Action Plan on Aid EffectivenessThe UNDG’s priority is to help UNCTs engage effectively in the changing aid environment and do well in the 2011 survey.UNDG Guidance Note “UNCT Engagement in the Changing Aid Environment”UNDG Action Plan on Aid EffectivenessUNDAF indicators reflecting aid effectiveness principles