Development effectiveness of Irish new donors A new way of doing aid? Nicolas Marcoux Dochas Conference Dublin May 2011

Rationale Wealthy philanthropists have the potential to do more than the Group of Eight leading nations to lift Africa out of poverty Wealthy philanthropists have the potential to do more than the Group of Eight leading nations to lift Africa out of poverty J. Sachs (Financial Times, 2007). J. Sachs (Financial Times, 2007). Emerging private donors, driven by a philanthropic agenda and boosted by growing financial allocations, promise a more pragmatic approach to aid delivery, finding solutions to world poverty and under-developmentEmerging private donors, driven by a philanthropic agenda and boosted by growing financial allocations, promise a more pragmatic approach to aid delivery, finding solutions to world poverty and under-development BUT little research actually conducted on the donor logic of philanthropies and private foundations in international development; most of their assumed potential remains hypothetical and the above mentioned claim is still far from validated in any academic work.BUT little research actually conducted on the donor logic of philanthropies and private foundations in international development; most of their assumed potential remains hypothetical and the above mentioned claim is still far from validated in any academic work. Research aimed at examining the work practices of selected Irish new donors and, more particularly, at investigating whether they follow a more effective model of aid delivery according to internationally-accepted best practices of aid effectiveness (P.D and AAA) than does the current Irish governmental system and thus offer a viable alternative to established practice.Research aimed at examining the work practices of selected Irish new donors and, more particularly, at investigating whether they follow a more effective model of aid delivery according to internationally-accepted best practices of aid effectiveness (P.D and AAA) than does the current Irish governmental system and thus offer a viable alternative to established practice.

Methodology Research focused on Irish-based philanthropies and foundations defined as organisations, using their own funds and financial resources, managed and led by their own boards or executive offices, operating from Ireland on international development (understood as the process by which organisations engage with other countries development, i.e. the process of enlarging peoples choices to lead a long and healthy life, to acquire knowledge and to have access to the resources needed for a decent standard of living) Sample of private foundations/philanthropies surveyed through literature review, direct interviews and questionnaires between September and December 2009.

Findings: a mixed picture (1) Ownership:Ownership: (1) undisputed leadership by the partner country in the formulation of its own development policies, notably through the alignment of foreign development assistance to the national development plans (2) an uncontested ability to manage the aid relationship, through the use of country systems and adequate aid delivery mechanisms Research mirrored an erratic alignment of philanthropies assistance to partner countries development strategies: in some cases, clear alignment with national development policies but in others, no recognition of domestic development framework by use of conditionalities not linked to country own policies, lack of acknowledgment of MDGs.Research mirrored an erratic alignment of philanthropies assistance to partner countries development strategies: in some cases, clear alignment with national development policies but in others, no recognition of domestic development framework by use of conditionalities not linked to country own policies, lack of acknowledgment of MDGs.

Findings: a mixed picture (2) Evaluation:Evaluation: Easterly (2006) on foreign aid failure:It is partly because nobody is actually held accountable for making this intervention work in this place at this time. My suggestion here could be ludicrously misguided: they should be subject to sceptical examination and ex post facto evaluation just like everything else Again, research reflects a mixed message: if in some instances, evaluation systems in place in philanthropies are no more than monitoring, in other cases, very sophisticated systems of strategic learning aimed at gathering and feeding learning on impact

Findings: a mixed picture (3) Harmonisation/coordination: the real drawbackHarmonisation/coordination: the real drawback recent explosion in the number of donors, both private and public, leads to duplication/fragmentation of aid and volatility: the number of ongoing projects have tripled between 1970 and 2005 (Johnston and Manning (2005), leading to imbalances in project allocation between high concentrations of donor assistance in certain sectors and lack of support in others. On the other hand, this influx of donor money brings a greater volatility, where funds are subject to erratic streams of allocation and disbursements.recent explosion in the number of donors, both private and public, leads to duplication/fragmentation of aid and volatility: the number of ongoing projects have tripled between 1970 and 2005 (Johnston and Manning (2005), leading to imbalances in project allocation between high concentrations of donor assistance in certain sectors and lack of support in others. On the other hand, this influx of donor money brings a greater volatility, where funds are subject to erratic streams of allocation and disbursements. PD and AAA have promoted greater synergies between donors and promoted the use of instruments of coordination such as mechanisms to ensure complementarities of assistance and coordinated work procedures.PD and AAA have promoted greater synergies between donors and promoted the use of instruments of coordination such as mechanisms to ensure complementarities of assistance and coordinated work procedures. Research showed a definite disengagement of philanthropies and foundations from this set of best practice as they dont feel these apply to their operations:Research showed a definite disengagement of philanthropies and foundations from this set of best practice as they dont feel these apply to their operations:

Findings: whats about business methods? the new frontier of development research is the design of enterprise solutions to poverty that can be implemented by results-oriented entrepreneurial philanthropists. De Lorenzo and Shah (2007)the new frontier of development research is the design of enterprise solutions to poverty that can be implemented by results-oriented entrepreneurial philanthropists. De Lorenzo and Shah (2007) Research showed that, by and large, traditional working systems are at work; however, innovative methods recently emerged such as in the case of the HIV/AIDs partnership between Irish Aid and Clinton foundation in Mozambique that points to a sophisticated system of purchase of generic medicines, greatly enhancing access to these products by poorer, developing countries.Research showed that, by and large, traditional working systems are at work; however, innovative methods recently emerged such as in the case of the HIV/AIDs partnership between Irish Aid and Clinton foundation in Mozambique that points to a sophisticated system of purchase of generic medicines, greatly enhancing access to these products by poorer, developing countries.

Limitations of the aid effectiveness agenda: role of CSOs and NGOs PD/AAA consider CSOs and NGOs as development actors : as representatives of beneficiaries, their role and input into development policies is to be promoted, especially under the principle of ownership (participative processes). Simultaneously, CSOs are to consider how they could apply aid effectiveness best practice to their own operations.PD/AAA consider CSOs and NGOs as development actors : as representatives of beneficiaries, their role and input into development policies is to be promoted, especially under the principle of ownership (participative processes). Simultaneously, CSOs are to consider how they could apply aid effectiveness best practice to their own operations. Country ownership versus Government ownership : under aid effectiveness agenda, donors are expected to align their assistance to the development priorities defined by the beneficiary country; however, CSOs can also define development objectives and the research produced concrete examples when these two types of development objectives do not coincide. It echoed a clear tension between ownership and alignment, where a development objective could well be locally-owned but not necessarily aligned with the partner countrys relevant policy.Country ownership versus Government ownership : under aid effectiveness agenda, donors are expected to align their assistance to the development priorities defined by the beneficiary country; however, CSOs can also define development objectives and the research produced concrete examples when these two types of development objectives do not coincide. It echoed a clear tension between ownership and alignment, where a development objective could well be locally-owned but not necessarily aligned with the partner countrys relevant policy.

Universality of the aid effectiveness agenda: what for Philanthropies? PD/AAA silent on philanthropies but analogy with Global funds (Paragraph 19 of AAA) militate for applicability of best practices to private donors and foundationsPD/AAA silent on philanthropies but analogy with Global funds (Paragraph 19 of AAA) militate for applicability of best practices to private donors and foundations Feeling among philanthropies that it is ironic for donors who consistently failed to promote aid effectiveness!Feeling among philanthropies that it is ironic for donors who consistently failed to promote aid effectiveness! Need for structured dialogueNeed for structured dialogue