CIDAs Aid Effectiveness Agenda October 2008

2 Canadian aid program CIDA is the lead agency for development assistance The International Assistance Envelope is the financial structure for managing resources for Canadian international assistance Created in 1991 and managed by core Ministers: CIDA, Finance, Foreign Affairs, with central agencies 2006 Speech from the Throne put a strong focus on accountability and results The Government will support a more effective use of Canadian aid dollars. Budget 2006 confirmed annual 8% growth in international assistance

3 IAE Management Framework Outlines the roles of Ministers Sets out key principles-transparency: whole of government priority setting: predictability: flexibility Establishes 5 pools with Pool managers: Development (CIDA) International Financial Institutions (Finance) Peace and security (DFAIT) Crisis (DFAIT+CIDA) Development research (DFAIT) Annual allocation process for IAE increases

4 CIDAs aid effectiveness agenda Strengthen Focus « Focus traditionnal bilateral aid in fewer countries, in a manner consistent with our foreign policy objectives » Improve Efficiency and Innovation « Implement measures to provide more of our existing resources to the poor, ensuring the greatest possible impact for our international assistance » Ensure accountability and results « providing Parliamentarians and Canadians with an objective assesment of the results we achieve with our international assistance » Budget 2007

5 Unprecedented global consensus MDGs (2000) Goal 1. Eradicate extreme poverty and hunger Goal 2. Achieve universal primary education Goal 3. Promote gender equality and empower women Goal 4. Reduce child mortality Goal 5. Improve maternal health Goal 6. Combat HIV/AIDS, malaria and other diseases Goal 7. Ensure environmental sustainability Goal 8. Develop a Global Partnership for Development MDGs (2000) Goal 1. Eradicate extreme poverty and hunger Goal 2. Achieve universal primary education Goal 3. Promote gender equality and empower women Goal 4. Reduce child mortality Goal 5. Improve maternal health Goal 6. Combat HIV/AIDS, malaria and other diseases Goal 7. Ensure environmental sustainability Goal 8. Develop a Global Partnership for Development Monterrey Consensus (2002) – donors to provide more and better-quality aid; recipients to improve governance, fight corruption and recognize private sector as engine of growth Paris Declaration on Aid Effectiveness (2005) 1. Ownership. Reinforce partner country leadership over their development policies and strategies 2. Alignment. Base donor support on partner countries strategies; build and strengthen countries capacity and systems to effectively manage development; continue progress on untying aid to get better value for money 3. Harmonization. Support donor coordination and streamline procedures, encourage common arrangements, and share workload among donors including in fragile states 4. Managing for Results. Manage resources and improving decision-making in support of development results 5. Mutual Accountability. Shared accountability for development results Paris Declaration on Aid Effectiveness (2005) 1. Ownership. Reinforce partner country leadership over their development policies and strategies 2. Alignment. Base donor support on partner countries strategies; build and strengthen countries capacity and systems to effectively manage development; continue progress on untying aid to get better value for money 3. Harmonization. Support donor coordination and streamline procedures, encourage common arrangements, and share workload among donors including in fragile states 4. Managing for Results. Manage resources and improving decision-making in support of development results 5. Mutual Accountability. Shared accountability for development results International community has agreed on a core set of problems and solutions:

6 Accra Agenda for Action Emphasizes shift from aid effectiveness to development effectiveness Strengthening Country Ownership Democratic ownership, capacity development, use of country systems More Effective and Inclusive Partnerships Division of labour, aid untying, new development actors and civil society, fragile states Delivering and Accounting Managing for results, incentives, statistical capacity, legal impediments, delegated authority, mutual assessment frameworks, conditionality, predictability

7 Democratic Governance Security Contribute to and benefit from significant economic growth in the region and enhance Canadas competitiveness. Prosperity Strengthen respect for values of freedom, democracy, human rights and rule of law in support of sustainable and equitable development across the Americas. Enhance regional security including threats posed by organized crime, illegal immigration, drugs, corruption as well as natural disasters and pandemics. Priorities: Canadas vision for the region

8 OAS-CIDA Cooperation plan: a new partnership supporting OAS reform Addressing multiples mandates from the Summit and General Assembly: Comprehensive programming focused on results Multi year, multi country programming Five OAS Program Areas supported Integrating the principles of Aid Effectiveness: Based on OAS/Canada priorities Use of already existing OAS tools and methodologies for more efficient procedures and reduced transaction costs Combines institutionnal strenghtening and development programming Results based management focus First step towards longer term and more predictable funding