1. Aid Effectiveness Coordination Officers Workshop Glen Cove, New York
unite and deliver effective support for countries
Aid Effectiveness
Coordination Officers Workshop
Glen Cove, New York
Abdul Hannan, Programme Advisor

2. Topics we’ll cover today
1. The international aid architecture
2. What is “aid effectiveness”?
3. Aid effectiveness and the UN

3. The UN is a small fish in a big funding pool

4. UN 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.

5. Bilateral 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 quarter
of total net country programmable aid.
· Multilaterals disburse more towards Africa than do bilaterals.

6. Core 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% between
This 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

8. The 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.

9. Any questions on how the UN fits into the international aid architecture?

10. 1. The international aid architecture
2. What is “aid effectiveness”?
3. Aid effectiveness and the UN

11. The average number of donors per country is growing.
The average number of donors per country is growing, while average project size appears
to be shrinking, implying growing fragmentation of aid.
Average of 12 donors per country in the 1960s
Average of 33 donors per country in
Private and “emerging” donors
More donors, smaller projects = growing fragmentation
Difficult for local governments to drive the agenda
1960s

12. There are new modalities, mechanisms,
Initiatives and partnerships with an emphasis on setting goals and results.
unite and deliver effective support for countries
Earmarking of ODA
“Vertical” funds
Budget support
SWAps
Highly-Indebted Poor Countries
Poverty Reduction Growth Facility
Poverty Reduction Strategy Credits
• greater consensus on goals: a wide consensus on the need to focus efforts on reducing
poverty
• more emphasis on results: leading to the identification of clear and ambitious development
targets (the Millennium Development Goals) which emphasise poverty reduction;
• new mechanisms and initiatives to channel resources rapidly and effectively to countries in
need: e.g. the HIPC initiative, the Poverty Reduction Growth Facility (IMF) and Poverty
Reduction Strategy Credits (World Bank);
• new approaches to improve aid effectiveness: the introduction of national poverty reduction
strategies as a mechanism for explicitly linking policies, public expenditure allocations and
poverty reduction goals; see and moves towards greater
harmonisation and alignment see
• new aid instruments and approaches: disillusionment with impact using traditional aid
instruments has led to increased emphasis on programme type support (budget support and
sector programme support);
• stronger partnerships: increased emphasis on strengthening the role of governments and
developing true partnership approaches in which donor-government relationships are
increasingly based on Government ownership and leadership, broad participation, partnership,
mutual accountability and long-term commitment.

13. Aid effectiveness is gathering momentum. Millennium Development Goals
Why use graphics from PowerPointing.com?
Millennium Declaration
Rome Forum
(Harmonization)
Doha Declaration
Seoul
2000
2002
2003
2005
2008
2011
• 2000 Millennium Declaration (and the MDGs)
The Declaration affirms the obligation of all members of the UN “to strive for the full
protection and promotion in all countries of civil, political, economic, social and cultural
rights 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 Development
A partnership between developed and developing countries to achieve the MDGs in the
context of open markets for economic growth, good governance, increasing aid flows, and
improving 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 international
and bilateral organizations, and donor and recipient country representatives gathered in
Rome for the High-Level Forum on Harmonization (HLF-Rome). This Forum spotlighted the
issue of harmonization and alignment as a major development issue and gave international
legitimacy 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 ministers
from 91 countries, 26 donor organizations and partner countries, representatives of civil
society organizations and the private sector. The participants collectively resolved to reform
the delivering and
Accra Agenda
Monterrey Consensus
Paris Declaration

14. The 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 ministers
from 91 countries, 26 donor organizations and partner countries, representatives of civil
society organizations and the private sector. The participants collectively resolved to reform
the delivering and
5 principles for more effective aid
Indicators and targets set for 2010
A “spirit” of doing things differently

15. Aid effectiveness principles
mutual accountability
ownership
alignment
managing for results
harmonization
ownership 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; and
mutual accountability – donors and partners are accountable for development results.

16. The Paris Declaration Pyramid

17. Paris Declaration Indicators

18. The Paris Declaration Monitoring Survey established baselines for UN country teams participated.

19. The second survey in 2008 looked at 2007 data to assess progress
The second survey in 2008 looked at data to assess progress country teams participated.

20. The final Monitoring Survey in 2011 will assess whether 2010 targets were met.

21. Any questions on what aid effectiveness means?

22. 1. The international aid architecture
2. What is “aid effectiveness”?
3. Aid effectiveness and the UN

23. The 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.

24. Impartiality 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 country
For example, the UN is well-placed to provide governments with technical advice where a SWAP is being used.

25. Aid 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 strategic
TCPR 2007
Calls 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”.

26. The UN system is making progress.

27. UN progress: Indicator 3
Proportion of aid flows to the government sector that is reported on partners’ national budgets.
UNCTs on target
in 2007: 5 (9%)
Technical assistance
provided by the UN
is harder to put on
budget than financial
assistance

28. UN 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

29. UN progress: Indicator 5a
proportion of aid flows that use public financial management systems in partner countries
Proportion 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 UN
reform

30. UN progress: Indicator 5b
Proportion of aid flows that use partner country procurement systems with good practices or reforms in progress
Indicator 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 target
in 2007: 1 (2%)
Key area for further UN
reform
Economies of scale
important too however

31. UN 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 target
in 2007: 11 (20%)
Uncertainly around
interpretations for this
indicator
Key area for reform

32. UN 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 target
in 2007: 4 (7%)
Uncertainly around
interpretations for this

33. UN progress: Indicator 9
proportion of aid provided as programme-based approaches
Indicator 9: the proportion of aid provided as programme-based approaches.
UNCTs on target
in 2007: 4 (7%)
Key area for further
UN reform

34. UN progress: Indicator 10a
Proportion of field missions that are joint.
Indicator 10a: the proportion of field missions that are joint
UNCTs on target
in 2007: 34 (61%)
Good result, but
unclear how much
Is intra-UN
collaboration and
how much is
UN-external
donor cooperation

35. UN 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 target
in 2007: 29 (52%)
Good result, but
unclear how much
is intra-UN
collaboration and
how much is
UN-external
donor cooperation

36. The 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 principles
UNDG Guidance Note “UNCT Engagement in the Changing Aid Environment”
UNDG Action Plan on Aid Effectiveness
The 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 Effectiveness
UNDAF indicators reflecting aid effectiveness principles

37. Any questions on the UN and Aid Effectiveness?

38. Thank You Abdul Hannan, Programme Advisor
unite and deliver effective support for countries
Aid Effectiveness
Thank You Abdul Hannan, Programme Advisor