Reforming Technical Cooperation for Capacity Development – Getting it Right! Silvia GUIZZARDI Capacity Development Team Development Cooperation Directorate, OECD/DAC June 29, 2010

What are we going to talk about? 1.Understanding the issue – limited effectiveness of TC to support CD 2.Why TC has not worked so well? What should be done? 3.Conclusions and way forward

1. Understanding the issue: Limited effectiveness of TC to support CD

Capacity Development FRONT and CENTER CAPACITY: ability of people, organizations, and society as a whole to manage their affairs successfully; CAPACITY DEVELOPMENT: process by which people, organizations and society as a whole create, strengthen and maintain their capacity over time. Capacity Development as KEY for ownership and leadership Ultimate goal of all aid

What are some of the key features of Capacity Development? Multi-dimensional concept: individuals, organisations, enabling environment; Not only technical, but also social, political, governance- related determinants; Long-term perspective needed; Endogenous process; Context specific; Call for harmonisation, alignment of donor support to CD.

How have we supported CD so far? Focus on What/When/Why, rather than How Technical Cooperation most common practice –Technical Assistance –Training –Educational Grants : USD 400 billions spent in TC (OECD estimates) = 1/5 total ODA in the period

TC effectiveness has been under exam for the past years (!) Pearson Commission 1968 Evaluation of the effectiveness of TA Personnel, Nordic Donors 1988 An evaluation of DFID Funded technical Cooperation DFID 2006 AUSAID’s approach to TA – Getting Beyond “Good Enough” 2009 Rethinking technical Cooperation, UNDP/Elliot Berg 1993 Joint Study on effective TC for CD JICA and other agencies, 2008 Using Training to Build Capacity for Development – An Evaluation of the World Bank’s Project-Based and WBI Training 2008 Joint Evaluation of Promising Approaches to TA ECDPM, 2007

Some Quotations..... little related to national or global development objectives “...Technical assistance often develops a life of its’ own, little related in either donor or recipient countries to national or global development objectives” Pearson commission, 1969 consultants can be high cost and supply driven weak impact on capacity development, because of a lack of appreciation of the underlying capacity problems “…. consultants can be high cost and supply driven, and they are provided even where there is no partner ownership. Consultants often have a weak impact on capacity development, because of a lack of appreciation of the underlying capacity problems, or an unrealistic expectation of the role that external advisory support can play in solving them”. DFID 2006 criticism in terms of cost and limited impact “The provision of TA personnel has been the subject of significant criticism in terms of cost and limited impact. ECDPM, 2007 Development agencies still tend to take the lead in the design, procurement, supervision and reporting of TA personnel “”Development agencies still tend to take the lead in the design, procurement, supervision and reporting of TA personnel. The triangular relationship between development agency, country partner and TA personnel can easily undermine country ownership, working relationships and lines of accountability, and this needs to change”. ECDPM, 2007

2. Why TC has not worked so well? What should be done?

TC has not worked as expected... Why? Supply-driven TC Limited understanding and consideration of local context Lack of active engagement of country stakeholders Short-term perspective Focus on narrow TC deliverables Substituting rather than enhancing local capacity Limited competition on TC providers’ selection Limited recognition of special challenges in fragile situations

What to do about it? In terms of situating TC... Acknowledge that TC is not a panacea for CD; Underlying drivers of CD must be taken into account: –Incentives, interests, dilemmas, resistance to change; –Contextual/systemic factors and constraints (i.e. civil service reforms) –Pressure to deliver short-term results; Understand and address local context and constraints is a must; Need for an integrated approach to deal with the complexity and all determinants of CD.

What shift are needed? In terms of enhancing TC effectiveness Demand-driven TC Country stakeholders to play leading role in TC management Chanel through country systems and procedures where possible Take full advantage of local expertise, resources, South- South opportunities to complement traditional TC Results orientation Monitor and evaluate TC performance results (accountability + learning) Coordination and harmonization of support

Special Issue: TC in Fragile Situations (Some considerations) Special challenges and complexity of fragile situations Potential harmful effects of TC in aid-dependent/fragile situations Trade offs and dilemmas to be openly recognised TC provision to be considered strategically No overload Focus on state-building, but do not forget no-state actors (CSOs and private sector) Adaptability, flexibility, realism, and modesty Phased approach Harmonisation of TC support imperative

2 Examples of on-going Reform Processes The European Commission Making Technical Cooperation More Effective Australia Improving Technical Assistance Triggers2007 European Court of Auditors report  2004 Peer Review  New projects in fragile states Objectives  To provide quality TC  To provide support through PIAs  Gradual move from direct implementation to indirect support for CD;  Demand-driven and country owned TA, Milestones  July 2008: Backbone Strategy (BBS)  March 2009:Guidelines and Toolkit  Nov 2009: Political Commitment  Since 2004, stronger CD function within AusAID Next Steps  Implementing at the country/operational level  Reorganization within AusAID  Enhance ownership Challenges  Internal capacity and incentives  Coordination of EC members  Simplify EC procedures, use country procedures and processes  Still heavily reliance on TA  Limited understanding of context  Working mainly in fragile situations  Keeping the momentum within AusAID

The special issue of Training for CD Growing evidence of shortcomings in current approaches to training Dynamic South-North international debate on reforming training and support alternative approaches to learning to enhance their effectiveness for CD The emerging consensus on learning practices for CD: Training < learning < capacity development Anchor support to learning within an integrated approach to CD; Learning programmes must be country-owned and demand-driven; Need for harmonization, co-ordination and joint efforts; Enhance quality of design of learning programmes; Enhance M&E of and assure adequate follow up to learning programmes; Make greater use of local resources/Southern providers of learning support.

3. Conclusions and Way Forward

Conclusions Make TC work better can have great impact on CD; There is emerging consensus on directional changes/behavioural shifts needed; Both donor and partner country responsibility; Focus on country-led initiatives; Support on-going TC reforms, advocate for more; Learning through evidence; Explore full potential of SSC and national/local expertise.

Way Forward Process picking up on emerging common ground; CD on the agenda of many key players: DAC, WP-EFF, UNDP, networks, individual donors, Southern efforts; Enhance joint efforts - Need for better joined-up South- North common approach and solutions; Existing process from the AAA momentum (Bogota’, Seoul); TC as a low hanging fruit