Aid for Development Effectiveness -Managing for Development Results- Terence D. Jones UNDP Third International Roundtable Managing for Development Results Mutual Accountability and Partnerships -- Breakout Session 4 Monitoring the Paris Declaration on Aid Effectiveness Hanoi, February 7, 2007 11:30 am to 1:30 pm

Paris Declaration (PD) Monitoring - OECD DAC 2005 Survey messages: 1. Progress: donors have made concrete commitments and strategies for scaling up, e.g. EC aid effectiveness is on country agendas and is becoming part of aid coordination instruments; strengthened national ownership; stimulated constructive dialogue and new forms of partnerships. 2. Key constraints: need for demand driven TC; slow progress on untying aid and ensuring predictability; donor field-HQ disconnect impacting behaviour change at country level; need incentives for change and cost-effective interventions; need for stronger and more accountable partner country institutions; lack of partner country institutional capacity to manage and coordinate ODA These messages should guide strategic interventions to support PD implementation through results based ODA management and will determine the dynamics and breadth of progress

New Opportunities for Aid Effectiveness and Development Results -1- 1. Enhancing/Reforming CGs/RTs/RRMs to: reflect new partnerships around: mutual commitments, accountability; results management; provide policy coherence and strategic allocation of resources (e.g. JAS); Introduce more rigorous M&E, e.g. through innovative initiatives like independent monitoring 2. Aid Management Systems to: ensure transparency and individual and mutual accountability; inform strategic resource allocation linked to budgetary processes, to policy/monitoring and MDG outcomes.

UNDP FRAMEWORK Policy Support National aid policies and coordination strategies - PD based Partnerships - CG/RT/RRM/JAS and national stakeholder Accountable national processes, institutions and systems MDG based development outcomes Evaluation Indicators Harmonization, alignment, capacity development and AIMS. MDG based National development Priorities and Strategies -2005 Summit Outcome Document Process and instruments Managing for development results Figure 1: Aid for Development Effectiveness Pyramid MDG based development outputs Monitoring

New Opportunities for Aid Effectiveness and Development Results -2- 1. MDG 8 - mutual accountability and partnership goal linking: aid to development outcomes; PD as an instrument to promote development effectiveness across MDGs and based on the 2005 Outcome Document and 2. Peer & partner learning through: facilitation of global, regional and country dialogue S/S collaboration strengthening partner country ownership and participation

UN/UNDP Responses UN Reform: 2. UNDP support to PD implementation: promoting policy coherence around the MDG agenda; RBM to ensure cost-effectiveness; Simplification of rules and procedures and H&A; M&E and RBM system coherence 2. UNDP support to PD implementation: strengthening national ownership and systems through capacity diagnostics and development; facilitation of FfD dialogue and support to partner country participation Strengthening S/S collaboration and learning Reaching out to non-DAC and emerging donors www.devaid.org

Capacity Assessment for Aid Effectiveness Review/ plan/ design/ formulate based on evidence Cost/ budget/ implement/manage/coordinate Monitor/ Evaluate/ manage data Analyse data /Communicate /Report/ Publicise / Inform Build Partnership Dialogue National Strategy Development and aid strategies Policy and conducive Legal frameworks – Processes development finance Processes Focus on results framework Individual Institutions Enabling environment