STATUS OF DELEGATED COOPERATION Aid Effectiveness, EuropeAid STATUS OF DELEGATED COOPERATION European Commission Dr Mehtab Currey AIDCO/01 16 Oct 2009

The Context for Delegated Cooperation

Fragmented Aid

Sector Level: Pharmaceutical Procurement by Donors in Kenya Aid Effectiveness, EuropeAid Aid Effectiveness, EuropeAid Sector Level: Pharmaceutical Procurement by Donors in Kenya 5 5 5 5

Division of Labour Objective: Reduction of transaction cost and of aid fragmentation without reducing aid volume Concentration on 3 sectors plus budget support Lead donor arrangements Delegated cooperation arrangements Implement coordinated missions

Monitoring Division of Labour Based on monitoring of 22 countries in 2008 and 5 Missions at country level: Donor mapping and self-assessment of comparative advantage well under way BUT: sometimes only provide general, superficial or outdated data Lead donor arrangements in place BUT: seem to vary across countries and sectors, e.g., in some countries only on policy dialogue and not financial

Monitoring Division of Labour Lack of ownership Limited political push from capitals Unclear collective decision making process Strategic planning not synchronised Little commitment of non-EU donors Lack of timely systematic data on donor presence Legal and administrative challenges Individual versus common rationality

Delegated Cooperation State of play

Delegated Cooperation DoL Guiding Principle 4: Delegated Cooperation “If a given sector is considered strategic for the partner country or the donor, EU donors may enter into a delegated cooperation/ partnership with another donor and thereby delegate authority to the other donor to act on its behalf in terms of administration of funds and / or sector policy dialogue with the partner government. […]”

Delegated Cooperation Council Conclusion 2006: “Urgent need to revise some existing EC rules, in order to put them in line with the requirements of the Paris Declaration - in particular regarding joint EU co-financing activities…” Done for all instruments, end 2007

EC Approach as delegating donor Art 56 assessment approved (9): SONA (NL Antilles); AfD (FR), KfW and GTZ (DE), ADA (AT), BTC-CTB (BE), IPAD (PT), Lux-Development; Ministry of Foreign Affairs Netherlands Under Assessment (8): AECID (ES); DED (DE); DFID (UK); FCI (FR); Ministry of Foreign Affairs Denmark; Ministry of Foreign Affairs Finland;SIMEST (IT); Potential (42): EU MS institutions (criteria: public, federal, and development cooperation) Plus: Non-EU donors like AusAid

EC Approach as Delegating Donor Once and for all ex ante assessment to verify compliance with EC financial regulations Status in Oct 2009 54 proposals at different stages 40 Delegation Agreements (DA): € 216m 14 Transfer Agreement (TA): € 122 m ACP 26/9, other EDF 3/0, Asia 5/3, LA 1/0, ENPI South 1/1, ENPI East 1/0, Thematic 3/1 Proposals range from 0.7m up to 38.5m

Challenges for Delegated Cooperation Legal formulation of templates  Treaties? Whether lead donor (delegated agreement) uses country systems Delegated cooperation in context of division of labour: E.g. Mali: 6 proposals already while division of labour process still to start Too many (small) projects  inefficient? Global overview: how to keep track? Commercial interests of MS Agencies Reciprocity (per country or globally)

Division of Labour EU Next steps

Operational Framework GAERC (1) Objectives: Collective EU political decision making at headquarters level Enabling environment, instruments and incentives Communication between headquarters and country level Political: Letter of Com de Gucht to Ministers Agreement on country list for fast tracking with responsibilities for all EU donors Joint decision making meetings in capitals per country 18

Operational Framework GAERC (2) High level missions in-country Promotion of multi-annual programming Limitation of vertical and thematic funding outside multi-annual programming and focal sectors Joint action plans for each fast track country by March 2010 Monitoring and reporting to Council annually 19