1. ENGAGING STRATEGICALLY WITH NON-STATE ACTORS IN NEW AID MODALITIES 7th July 2011 DEVCO-Europeaid – D2 civil Society

2. Topic of the session How can the EC –engage strategically and operationally –with both the state and non-state actors –on various development related issues –namely when it provides budget support –or engages in sector policy support programme (So called New Aid Modalities)

3. Countries engaged with NSA in BS and SPSP DOMAINCOUNTRY Education-literacy PolicyMorocco/Ecuador Service deliveryEthiopia General Budget SupportGhana HealthIndia JusticeSouth Africa Natural resources and environment Ghana

4. Ghana (1) General Budget Support Financial mechanism: multi donor funding Objectives: Improve national Planning Area of accounting for public expenditure Discussed and agreed with the Government Foreseen in Country Strategic Paper Roles for NSA: monitoring, policy dialogue, advocacy

5. Ecuador (1) Sectoral Budget Support to Ecuadorian national Education plan Funding: EU Objectives: In the short term: Reinforce Country M&E systems Reinforce Constitution implementation: Citizens participation in national policies And in the long run: establish relationship between public and private sector based on trust Promote result oriented and domestic accountability

6. Ecuador (2) KEY FEATURES Mapping of actors and roles Added-value EC negotiated with the State the involvement of NSAs at early stage Related indicators to performance of both Govt & NSAs Negotiated to put aside part of SBS to support NSAs Call for proposals (restricted/targeted) managed by DEL but transparent with Govt.

7. Overview of functions and roles of NSAs in the cases Voice Public Education Accountability Services provision Social Capital Capacity development Innovation/ piloting Leveraging efforts Case 1: Morocco Education – literacy policy Case 2: Ethiopia (Basic Services) Case 3: Ghana Case 4: Ghana (Natural resources and environment) Case 5: India (Education and Health) Case 6: South Africa (Justice) Case 7: Ecuador (Education)

8. EC/EU policies/agendas concerned

9. Participatory development Participatory development Development assistance includes support to and through NSAs Involving NSA contributes to strengthen domestic accountability Development is a multi- stakeholder/multi actor process where the central state is one of the actors NSAs are not only implementing agencies but also promoters of democracy, justice and human rights EU is committed to support NSAs to fully participate in political, economic and social dialogue processes (mainstreaming of NSA participation) Civil Society is recognized in all its diversity (concept of non state actors) Participatory development

10. Potential obstacles in partner countries ? Political commitment behind pro-poor policies? Does civil society have the capacities/interest to engage with the state? Is there an enabling environment for Non-State Actors to participate? Is the budget transparent? Does it reflect priorities? Is it credible Is there an open and transparent dialogue with NSAs? Are there incentives to involve NSA in BS and SPSP ?

11. Challenges for DEL/NSA ? Strong political commitment behind declarations Is the civil society enabled to engage with the state through the PCM ? Is there an enabling environment for Non-State Actors to participate? Coordination and Harmonisation amongst donors Deeper and objective knowledge of NSA/CSOs Prepared to play a facilitation role

12. Fundamentals of this new approach NSAs are full fledge actors Analyze state- society relations systematically Explore full potential within and beyond NAM EC Prepared to play new roles

13. Introduce systematically political economy and governance analysis Introduce systematically political economy and governance analysis Use several analytical tools to know the CSOs (mapping, sectoral studies) 1 1 2 2 Analyze state- society relations systematically

14. Possible entry points for analysis of state-society relations What affects the opportunities for NSAs to participate? What are the relations between state and society? Who holds power over whom? Who exerts pressure on whom? Who influences whom? With what means? What are the resources, and how are these distributed? What are incentives? Why is it difficult for citizens to work collectively? What is the history? The history of struggle? The history of social or other movements? The history of repression? Page 14

15. Prepared for playing new roles and being creative within the existing procedures. Prepared for playing new roles and being creative within the existing procedures. Systematically apply a political economy system Avoid a technocratic approach to aid effectiveness 1 1 2 2 3 3 New roles for EC/DEL

16. Questions for the discussion Do DEL welcome the idea of NSAs playing an active role in BS and SPSP ? Relevance and added value ? Risks ? Problems (time and resource consuming) Do the DEL consider that this approach should be pushed forward in the follow up of the structured dialogue with civil society and in the forthcoming communication on NSA ? What is required from the NSAs AND from the Commission to push such process (enabling environment, capacity development, specific role of Northern NSAs) ? Is it feasible ? Do we have the means ?

17. Thank you for your attention !