Aid effectiveness in fragile states Integrating the Paris Declaration principles into development programming

What are fragile states? –State is weak. Limited capacity to make decisions, safeguard citizens, deliver basic services and interact effectively with society. –Ongoing conflict/lawlessness, or a threat of a return to conflict. –Ongoing conflict/lawlessness, or a threat of a return to conflict. –Society is disrupted. Unreconciled grievances; disrupted social patterns; displacement of people.

What does the Paris Declaration say? PD calls on partner countries to PD calls on partner countries to –Build institutions and governance structures –Work with donors on planning when no national development plan –Encourage broad participation of national actors PD calls on donors to PD calls on donors to –Harmonise when no strong govt leadership –Align behind government led strategies –Avoid undermining national institution building –Use appropriate mix of aid instruments

Principles for good international engagement in fragile states and situations long term vision: help national reformers build effective, legitimate and resilient state institutions long term vision: help national reformers build effective, legitimate and resilient state institutions 10 principles: 10 principles: –Take context as the starting point –Do no harm –Focus on state-building as the central objective –Prioritise prevention –Recognise political, security and development links –Promote non-discrimination –Align with local priorities in different contexts –Agree on practical coordination mechanisms –Act fast, but stay engaged –Avoid pockets of exclusion

Australian aid to fragile states More than any other bilateral donor More than any other bilateral donor : 50% of aid program (over $1.5b) : 50% of aid program (over $1.5b) Why? Geographical proximity, policy to engage more intensively with fragile states in region. Why? Geographical proximity, policy to engage more intensively with fragile states in region. Strong focus on small island states in Pacific Strong focus on small island states in Pacific –PNG, East Timor, Solomons, Vanuatu –40% of Solomons GNP in 2007

How does Australia deliver aid in fragile states? Programs centre on state-building: enhancing the machinery of government. Programs centre on state-building: enhancing the machinery of government. variety of Australian government departments involved, not just AusAID. variety of Australian government departments involved, not just AusAID. –Regional Assistance Mission to the Solomon Islands (RAMSI). –Enhanced Cooperation Program (ECP) in Papua New Guinea.

Lessons from Australia’s experience 2007 Annual Review of Development Effectiveness 2007 Annual Review of Development Effectiveness Mixed progress: Mixed progress: –good results in establishing security and financial stability. –less so in health, education, employment, political stability. Weak governance makes it harder to deliver effective aid. Weak governance makes it harder to deliver effective aid. –Expectations need to be realistic. Working in fragile states makes aid delivery more expensive. Working in fragile states makes aid delivery more expensive. –This increases overheads and limits opportunities.

Success factors? Success requires engaging in new ways Success requires engaging in new ways –Working with communities to build capacity to demand better services –Strengthening partner government systems by using them –Building leadership quality –Encouraging better performance by governments through compacts and incentive payments Long term engagement often crucial Long term engagement often crucial Strong understanding of local social and political systems, and of drivers of change within these systems Strong understanding of local social and political systems, and of drivers of change within these systems Willingness to think outside the box – eg alternative service providers and non-state systems Willingness to think outside the box – eg alternative service providers and non-state systems

Applicability of Paris Declaration? Weak governance makes it difficult to implement the principles of ownership and alignment. Weak governance makes it difficult to implement the principles of ownership and alignment. –Many PD indicators not applicable (eg using partner systems) In crisis situations, stability often needs to precede other objectives. In crisis situations, stability often needs to precede other objectives. –When this requires embedding outsiders in government systems (eg to re-establish law and order), this can work against the PD ‘ownership’ principle in the short term. –But in the longer-run gives systems a chance to prepare for more ‘pure’ Paris implementation.

Implications for Paris? Principles for Good International Engagement capture the early consensus on best practice in fragile states Principles for Good International Engagement capture the early consensus on best practice in fragile states But future iterations should look at how to adapt practice to particular states/situations But future iterations should look at how to adapt practice to particular states/situations –What if a country has reached a protracted political impasse? –What if there is active conflict? –How should reforms be sequenced? –How can you pursue MDGs in a country where the state is barely functioning?