Presentation on theme: "The paris declaration on aid effectiveness: Lessons for eu aid in enlargement countries Donor Co-ordination Conference , organised by the Directorate."— Presentation transcript:
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 CommissionBrussels, 23 October 2008Felix Zimmermann, OECD Development Cooperation Directorate
2 Overview The OECD and its Development Assistance Committee The 2005 Paris Declaration on Aid EffectivenessIs aid becoming more effective?Spotlights on Albania and KosovoThe 2008 Accra Agenda for Action
3 The OECD30 member countries committed to democratic government and the market economyWhere governments compare and exchange policy experiences, identify good practices, and promote decisions and recommendationsCharacterised 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.cAustraliaAustriaBelgiumCanadaDenmarkFinlandFranceGermanyGreeceIrelandItalyJapanLuxembourgNetherlandsNew ZealandNorwayPortugalSpainSwedenSwitzerlandUnited KingdomUnited StatesEuropean CommissionOne of OECD’s main committeesFull-time, elected chairDelegates from each DAC memberIn-country development work done by individual DAC members, not by DACTechnical expertise and operational capacity provided by the Development Co-operation Directorate (DCD) – the DAC SecretariatThe leading source of good practice and review on priority development co- operation issuesMobilises official development assistance (ODA) financing for development, especially for poverty reductionThe definitive source of statistics on the global development co-operation effortHelps change behaviour in the international aid system to increase the effectiveness of aid, including by making it more aligned, harmonised, results-focused and untiedDevelops ways to assist poor-performing, conflict-prone countriesSupports increased attention by OECD members, and within OECD, to policy coherence for developmentObserver countries: Czech Republic, Hungary, Iceland, Korea, Mexico, Poland, Slovak Republic, Turkey
5 DAC Subsidiary Bodies Working Party on Aid Effectiveness Working Party on StatisticsWorking Party on Aid EffectivenessNetwork on Development EvaluationNetwork 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-operationFragile States Group
6 Working Party on Aid Effectiveness Set up in 2003 following Monterrey conference on Financing for DevelopmentComprises 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 850800750700650600550Mozambique (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 800Vietnam (791)750700650600Cambodia (568)550Honduras (521)Mongolia (479)450Uganda (456)Number of donor missions in 2005
9 Financing mechanisms are multiplying Source: Financing Development 2008: Whose Ownership? OECD Development CentreBased on Kaul and Conceicao (2006)
10 Since 2000Here 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 countries26 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 CommitmentsBased on 5 pillars – ownership, alignment, harmonization, managing for results and mutual accountabilityBased 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 SURVEYREVIEWSOwnership1National development strategiesAlignment2Quality of country systems3Alignment: aid is on budgetHarmonisation4Coordinated support for capacity development5Use of country systems6Parallel PIUs7In-year predictability of aid8Aid is untied9Programme-based approaches10Joint missions & analytic workManaging for Results11Results-oriented frameworksMutual Accountability12Reviews 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 representativesTaking stock of progress:Monitoring Surveys (2006, 2008)Reviews (e.g. World Bank Aid Effectiveness Review)Independent EvaluationThe Accra Agenda for Action
15 56 Countries participated in the 2008 Monitoring Survey Asia & PacificTanzaniaMozambiqueYemenAfghanistanBeninNigeriaLatin AmericaBangladeshBurkina FasoTogoHaitiCambodiaBurundiMadagascarColombiaIndonesiaCameroonEthiopiaPeruMongoliaCape VerdeCôte d’IvoireBoliviaNepalCARGhanaHondurasVietnamChadKenyaNicaraguaPhilippinesP NGDR CongoMoroccoLiberiaSierra LeoneDom. RepublicTongaGabonMalawiECISLao PDRMaliArab StatesAlbaniaAfricaMauritaniaEgyptUkraineUgandaNigerJordanPSG KosovoZambiaSenegalSudanMoldovaKyrgyz Republic
17 Where targets are within reach 36%49%59%148345%88%
18 Where very special efforts are required 22%36%49%59%43%42%148345%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:AFGHANISTANALBANIABOSNIA-HERZEGOVINABANGLADESHBOLIVIABRAZILCAMBODIACONGO, DEM.REP.CAMEROONCHINACOLOMBIAEGYPTGEORGIAHONDURASINDONESIAINDIAPERUPHILIPPINESPAKISTANRWANDASOUTH AFRICASRI LANKATANZANIAVIET NAM
21 Aid for health is particularly fragmented These countries areAFGHANISTANANGOLABANGLADESHCONGO, DEM.REP.ETHIOPIAINDONESIAINDIAIRAKKENYACAMBODIAMOZAMBIQUENICARAGUANEPALPERUPHILIPPINESRWANDATANZANIAUGANDAVIET NAMSOUTH AFRICAIn 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) GovernmentHouseholdsDonors59,2 %Ministry of Health13.6 %27,2 %Health sector
23 But the reality is more complex GovernmentHouseholdsDonors44 %Budget SupportCommercial Loans (15 %)Ministry of Finance (59.2%)HPIC (0.2%)Ministry of HealthHealth Fund (14.9 %) & MoH Programme Support (12.3 %)Internally genera- ted funds (13.6 %)Pharma industryFoundationsNGOsGlobal prog’sHealth SectorOther private spendingProject aid
24 Spotlight on Albania Ownership = moderate-high Challenge: translate priorities into budgetary termsImplement National Strategy for Development and IntegrationAlignment = low-moderateStep up donor use of public financial management systemsImprove data on aid disbursementsHarmonisation = low-moderateLimited use of programme-based and sector-wide approachesManaging for Results = lowLack of capacity, especially on national monitoring and evaluationMutual Accountability = lowFinalise 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 strategiesAlignment = lowInsufficient communication between donors and governmentImprove capacities for financial management and procurementHarmonisation = lowLimited use of programme-based approaches and insufficient dialogue with donorsManaging for Results = lowLack of strategy to collect and disseminate dataMutual Accountability = lowDonor 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 OwnershipBroaden country-level policy dialogue with parliament, local authorities and civil societyRe-affirm international commitments on gender equality, human rights, disability and environmental sustainabilityStrengthen capacity to lead and manage donorsStrengthen 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 procurementDeepen engagement with civil societySouth-South CooperationEnlargement 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 transparencyChange conditionality to support ownershipIncrease medium-term predictability of aid
30 Turkey: from aid recipient to donor Source: TIKA Report 2007, includes private flows.