1. the paris declaration on aid effectiveness: Lessons for eu aid in enlargement countries
Donor Co-ordination Conference , organised by the Directorate General for Enlargement, European Commission
Brussels, 23 October 2008
Felix Zimmermann, OECD Development Cooperation Directorate

2. Overview The OECD and its Development Assistance Committee
The 2005 Paris Declaration on Aid Effectiveness
Is aid becoming more effective?
Spotlights on Albania and Kosovo
The 2008 Accra Agenda for Action

3. The OECD
30 member countries committed to democratic government and the market economy
Where governments compare and exchange policy experiences, identify good practices, and promote decisions and recommendations
Characterised by dialogue, consensus and peer review

4. The OECD Development Assistance Committee
Where donors come together to help developing countries reduce poverty and achieve the Millennium Development Goals. c
Australia
Austria
Belgium
Canada
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Japan
Luxembourg
Netherlands
New Zealand
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom
United States
European Commission
One of OECD’s main committees
Full-time, elected chair
Delegates from each DAC member
In-country development work done by individual DAC members, not by DAC
Technical expertise and operational capacity provided by the Development Co-operation Directorate (DCD) – the DAC Secretariat
The leading source of good practice and review on priority development co- operation issues
Mobilises official development assistance (ODA) financing for development, especially for poverty reduction
The definitive source of statistics on the global development co-operation effort
Helps change behaviour in the international aid system to increase the effectiveness of aid, including by making it more aligned, harmonised, results-focused and untied
Develops ways to assist poor-performing, conflict-prone countries
Supports increased attention by OECD members, and within OECD, to policy coherence for development
Observer countries: Czech Republic, Hungary, Iceland, Korea, Mexico, Poland, Slovak Republic, Turkey

5. DAC Subsidiary Bodies Working Party on Aid Effectiveness
Working Party on Statistics
Working Party on Aid Effectiveness
Network on Development Evaluation
Network on Gender Equality (GENDERNET)
Network on Environment and Development Co-operation (ENVIRONET)
Network on Poverty Reduction (POVNET)
Network on Governance (GOVNET)
Network on Conflict, Peace and Development Co-operation
Fragile States Group

6. Working Party on Aid Effectiveness
Set up in 2003 following Monterrey conference on Financing for Development
Comprises senior policy advisers from the DAC (23), developing countries (23) and multilaterals (11)
Negotiated the Paris Declaration (2005) and Accra Agenda for Action (2008)

7. Projects strain limited capacities
850
800
750
700
650
600
550
Mozambique (845)
Ethiopia (790)
New development activities per year (2005)
Tanzania (700)
Uganda (630)
Nicaragua (600)
This is generally considered a reasonable proxy for transaction costs.
A conservative estimate for a typical African country is that this translates into thousands of new reports and more than 1 000 new annual missions to appraise, monitor and evaluate. Each mission asks to meet with key officials, and each will ask the government to comment on its reports.
Bolivia (550)
Vietnam (540)

8. 10 453 missions in 34 countries in 2005
800
Vietnam (791)
750
700
650
600
Cambodia (568)
550
Honduras (521)
Mongolia (479)
450
Uganda (456)
Number of donor missions in 2005

9. Financing mechanisms are multiplying
Source: Financing Development 2008: Whose Ownership? OECD Development Centre
Based on Kaul and Conceicao (2006)

10. Since 2000
Here are a few of the financing initiatives that have emerged since the turn of the century to address global health issues. Indeed, many of our recent discussions on the complexity of development finance have been particularly relevant for the health sector.

11. Emerging from this complexity in 2005: an unprecedented consensus
Who signed the Paris Declaration?
35 donor countries
26 multilateral donor agencies.
56 countries that receive aid.
[14 Civil society organisations]
Mutual accountability between donors and partner countries.
Roadmap to deliver more effective aid:
56 specific commitments.
12 Indicators of progress.

12. The Paris Declaration “pyramid”
56 Action-Oriented Commitments
Based on 5 pillars – ownership, alignment, harmonization, managing for results and mutual accountability
Based on 30 plus years of experience documented in DAC about what enables aid to have the greatest impact for development.
Many of these commitments aim to strengthen the role of checks and balances in country – for example the commitment to put more aid on budget, where it can be subject to scrutiny by citizens.

13. 12 indicators to monitor progress
SURVEY
REVIEWS
Ownership 1
National development strategies 
Alignment 2
Quality of country systems 3
Alignment: aid is on budget
Harmonisation 4
Coordinated support for capacity development 5
Use of country systems 6
Parallel PIUs 7
In-year predictability of aid 8
Aid is untied 9
Programme-based approaches 10
Joint missions & analytic work
Managing for Results 11
Results-oriented frameworks
Mutual Accountability 12
Reviews of mutual performance

14. The Accra HLF III, September 2008
1,700 participants included 100 partner countries, most donors and international agencies, and 80 civil society representatives
Taking stock of progress:
Monitoring Surveys (2006, 2008)
Reviews (e.g. World Bank Aid Effectiveness Review)
Independent Evaluation
The Accra Agenda for Action

15. 56 Countries participated in the 2008 Monitoring Survey
Asia & Pacific
Tanzania
Mozambique
Yemen
Afghanistan
Benin
Nigeria
Latin America
Bangladesh
Burkina Faso
Togo
Haiti
Cambodia
Burundi
Madagascar
Colombia
Indonesia
Cameroon
Ethiopia
Peru
Mongolia
Cape Verde
Côte d’Ivoire
Bolivia
Nepal
CAR
Ghana
Honduras
Vietnam
Chad
Kenya
Nicaragua
Philippines
P NG
DR Congo
Morocco
Liberia
Sierra Leone
Dom. Republic
Tonga
Gabon
Malawi
ECIS
Lao PDR
Mali
Arab States
Albania
Africa
Mauritania
Egypt
Ukraine
Uganda
Niger
Jordan
PSG Kosovo
Zambia
Senegal
Sudan
Moldova
Kyrgyz Republic

16. Where progress is on track
36%
59%
88%

17. Where targets are within reach
36%
49%
59%
1483
45%
88%

18. Where very special efforts are required
22%
36%
49%
59%
43%
42%
1483
45%
88%
42% (slippage)
20%
44% 9%
22% (No progress)

19. The number of donors per country remains high
Donor programmes cover many countries (EC, France & Germany: over 100 countries each).
37 countries host more than 24 donors.
Quartile distribution of number of DAC and major multilateral donors by country

20. Many donors account less than 10% of aid
The 24 above mentioned recipient countries are:
AFGHANISTAN
ALBANIA
BOSNIA-HERZEGOVINA
BANGLADESH
BOLIVIA
BRAZIL
CAMBODIA
CONGO, DEM.REP.
CAMEROON
CHINA
COLOMBIA
EGYPT
GEORGIA
HONDURAS
INDONESIA
INDIA
PERU
PHILIPPINES
PAKISTAN
RWANDA
SOUTH AFRICA
SRI LANKA
TANZANIA
VIET NAM

21. Aid for health is particularly fragmented
These countries are
AFGHANISTAN
ANGOLA
BANGLADESH
CONGO, DEM.REP.
ETHIOPIA
INDONESIA
INDIA
IRAK
KENYA
CAMBODIA
MOZAMBIQUE
NICARAGUA
NEPAL
PERU
PHILIPPINES
RWANDA
TANZANIA
UGANDA
VIET NAM
SOUTH AFRICA
In 21 countries, in the health sector, more than 15 donors combined provide just 10% of their health CPA

22. Health finance according to the Ghanaian Ministry of Health (2006)
Government
Households
Donors
59,2 %
Ministry of Health
13.6 %
27,2 %
Health sector

23. But the reality is more complex
Government
Households
Donors
44 %
Budget Support
Commercial Loans (15 %)
Ministry of Finance (59.2%)
HPIC (0.2%)
Ministry of Health
Health Fund (14.9 %) & MoH Programme Support (12.3 %)
Internally genera- ted funds (13.6 %)
Pharma industry
Foundations
NGOs
Global prog’s
Health Sector
Other private spending
Project aid

24. Spotlight on Albania Ownership = moderate-high
Challenge: translate priorities into budgetary terms
Implement National Strategy for Development and Integration
Alignment = low-moderate
Step up donor use of public financial management systems
Improve data on aid disbursements
Harmonisation = low-moderate
Limited use of programme-based and sector-wide approaches
Managing for Results = low
Lack of capacity, especially on national monitoring and evaluation
Mutual Accountability = low
Finalise the harmonisation action plan, including a monitoring system

25. Spotlight on Kosovo Ownership = low-medium Alignment = low
A long-term development plan with medium-term strategies
Alignment = low
Insufficient communication between donors and government
Improve capacities for financial management and procurement
Harmonisation = low
Limited use of programme-based approaches and insufficient dialogue with donors
Managing for Results = low
Lack of strategy to collect and disseminate data
Mutual Accountability = low
Donor conference should lead to high attention to aid effectiveness

26. The 2008 Accra Agenda for Action
Not a new Paris Declaration.
A political, ministerial, statement, with concrete actions to accelerate implementation of the Paris Declaration.
48 commitments for donors and developing countries, many beginning immediately.
Focus on Ownership, Inclusive Partnerships and Delivering Results.
AAA looks at the evidence of what is and is not working on aid effectiveness – and identifies actions which taken now will keep all partners on track to meet the Paris Declaration commitments by 2010.
Vey high ministerial commitment – ministers involved in the final negotiations.
Three main themes – ownership (especially broad-based ownership and transparency); inclusive partnerships (bringing in all parties – new donors, foundations and civil society); and delivering results – development impact.
Many commitments start now.

27. Country Ownership
Broaden country-level policy dialogue with parliament, local authorities and civil society
Re-affirm international commitments on gender equality, human rights, disability and environmental sustainability
Strengthen capacity to lead and manage donors
Strengthen developing country systems…
… and use them as the default option

28. Effective and Inclusive Partnerships
Reduce aid fragmentation: What role for the EU Code of conduct?
Increase value for money by untying aid and using local and regional procurement
Deepen engagement with civil society
South-South Cooperation
Enlargement countries: from aid recipients to emerging donors?
E.g. Turkey

29. Delivering and Accounting for Results
Focus on delivering results: improving information systems;
Increase accountability and transparency
Change conditionality to support ownership
Increase medium-term predictability of aid

30. Turkey: from aid recipient to donor
Source: TIKA Report 2007, includes private flows.

31. For more information www.oecd.org/dac