1. From Paris to Accra The Road to More Effective Aid
Regional Workshop, Advisory Group on Civil Society and Aid Effectiveness
Ha Noi, Viet Nam
11 October 2007
Felix Zimmermann OECD Development Centre

2. Overview The Paris Declaration: Brief introduction
Results from the 2006 Baseline Survey
To Accra and beyond: opportunities and risks

3. Governments agree on: New objectives (MDGs) New instruments (PRSPs)
More aid (Monterrey & Gleneagles)

4. But what about effectiveness?
To meet the MDGs, developing countries need:
Operational development strategies
Stronger public financial management systems
Space to choose own priorities
Reduced transaction costs

5. Aid comes at a high cost Mozambique (845) Ethiopia (790)
850
800
750
700
650
600
550
Mozambique (845)
Ethiopia (790)
Tanzania (700)
New donor projects and activities per year
Uganda (630)
Nicaragua (600)
Bolivia (550)
Vietnam (540)
This slide attempts to answer this question by identifying those countries who have to put up with the highest transaction costs.
Before I proceed with the methodology, I would like to ask you for your special attention. Not because it is complicated but because it took me ages to draw the thermometer.
So whilst you are -- hopefully -- admiring my drawings skills, let me explain what I have attempted to do here.
The chart that I’m about to present lists aid dependent countries who have, in average, the highest number of new development related activities. This is generally considered a reasonable proxy for transaction costs.
The Gov. of Vietnam, for example, has to deal with 540 new transactions per year.
Let’s now look more closely at the case of Mozambique. The Gov of Mozambique has to deal in average with 845 new development activities per year; in addition to those that are already being managed.
A conservative estimate for a typical African country is that this translates into thousands of new reports and more than 1 000 new annual missions to appraise, monitor and evaluate. Each mission asks to meet with key officials, and each will ask the government to comment on its reports.

6. Features of the 2005 Paris Declaration on Aid Effectiveness
Broad participation
56 partner countries; 35 donor countries; 26 multilateral donor agencies
[14 civil society organisations]
5 core principles
56 specific commitments
12 measurable indicators for 2010
Targets & monitoring

7. The Aid Effectiveness Pyramid
4. Development Results
Ownership
(Partner countries)
Partners set the agenda 1
Managing for Results 5
Aligning with partners’ agenda
Using partners’ systems
Alignment
(Donors - Partner) 2
Harmonisation
(Donors - Partner)
Establishing common arrangements
Simplifying procedures
Sharing information 3

8. Timeline: to Accra and beyond
2011 HLF-IV
2008 Accra HLF-III
Targets
2005 Paris HLF-II
Second survey
Baseline
Survey
Three rounds of monitoring were agreed in the Paris Declaration.
2005
2007
2010

9. Who’s who on the road to Accra?
Working Party on Aid Effectiveness
Bilateral and multilateral donors
Partner countries
Steering Committee for Accra HLF-III
Other initiatives include:
Advisory Group on Civil Society and Aid Effectiveness
OECD Global Forum on Development

10. Overview The Paris Declaration Results from the 2006 Baseline Survey
To Accra and beyond: opportunities and risks

11. The 2006 Survey on Monitoring
34 countries (self-selected), including:
Viet Nam; Mongolia; Cambodia
Mostly where Paris Declaration is already discussed
Not enough fragile states to draw conclusions
Method
Country surveys with government coordinators
WB indicators (2005 CDF Progress Report; Aid Effectiveness Review; CPIA)

12. Results on Ownership Target for 2010: Baseline survey results:
75% of countries have operational development strategies
Baseline survey results:
17% (5 out of 34 countries)
Insufficient use of national budgets to support priorities
Insufficient engagement of citizens and parliaments
Very slow progress in taking the lead in aid-funded activities (e.g. by co-chairing Consultative Groups)

13. Ownership in the region
Country
Baseline
Challenge
Vietnam
Strong
Dissemination of Hanoi Core Statement to sectors and provinces
Cambodia
Moderate
Synchronisation among development plans, medium-term expenditure framework and budget process
Mongolia
Low
Linking plans and budget

14. Results on Alignment #1 Target for 2010: Baseline survey result:
Halving the % of aid to governments that remains unreported in budgets
Baseline survey result:
Half of surveyed countries show budget realism of 70% or less
This suggests that:
Donors don’t get information to authorities on time
Donors are not always realistic about their ability to disburse
Authorities are not equipped to capture information

15. Alignment in the region
Country
Baseline
Challenge
Vietnam
Moderate
Donor institutional limitations on use of budget support and government systems
Cambodia
Low
Limited use of country public financial management and procurement systems
Mongolia
Little aid is recorded in national budget

16. Results on Alignment #2 Target for 2010: Baseline survey result:
Halve the % of aid not disbursed within scheduled fiscal year: improve aid predictability
Baseline survey result:
Of $19,933 million, only $14,861 million are recorded in national budgets
Budget support is more predictable as part of multi-year plans, but less so when there are performance-based tranches

17. 41% of aid was disbursed on schedule in 2005
Aid predictability in 2005
41% of aid was disbursed on schedule in 2005
$ m
$ m
$ m
$ 998 m
$ 930 m
$ 696 m
AID SCHEDULED
AID RECEIVED
EGYPT
AFGHANISTAN
ZAMBIA

18. Results on Alignment #3 Target for 2010: Baseline survey result:
Reduce parallel project implementation units by 2/3
Baseline survey result:
4 countries have more than 100 parallel units
Total = 1832 units in 34 countries

19. Alignment in the region
Country
Baseline
Challenge
Vietnam
Moderate
Donor institutional limitations on use of budget support and government systems
Cambodia
Low
Limited use of country public financial management and procurement systems
Mongolia
Little aid is recorded in national budget

20. Results on Harmonisation #1
Target for 2010:
Provide 66% of aid flows using programme-based approaches
Baseline survey result:
43% (but definitional questions remain)

21. Results on Harmonisation #2
Target for 2010:
Conduct 40% of field missions jointly
Baseline survey result:
18%
Good practice example: “quiet” periods

22. Too many missions? 10 453 missions in 34 countries in 2005
800
Vietnam (791)
750
700
650
600
Cambodia (568)
550
Honduras (521)
Mongolia (479)
450
Uganda (456)
Number of donor missions in 2005

23. A multilateral muddle
Source: National Audit Office (2005), DFID – Engaging with Multilaterals

24. Overview The Paris Declaration Results from the 2006 Baseline Survey
To Accra and beyond: opportunities and risks

25. The Accra Agenda for Action: an opportunity
Accra may lead to:
Accelerated progress on the existing indicators
Deepened understanding of the 5 principles
e.g. democratic ownership & the role of civil society
A broadened, more legitimate, monitoring exercise
Wider consensus with new public and private actors

26. Accra and three related risks
Are our expectations too high?
Can and should Accra solve all of aid’s ills?
Can it deal with a complex international aid architecture?
Are we overloading the agenda?
New indicators?
Are we undermining other processes?
e.g. UN follow-ups to the MDGs or Monterrey

27. Thank you for your attention. www. oecd
Thank you for your attention!

28. Q&A The survey should be used before assessing!
We need more basic data.
None of governments don’t want to accept.
The need of technical supports.
2.The number of surveyed nations is not representative.
The scale of survey is not good result but the government should take part in these ones.
Other donors have different indicators
The result could be accessed again.
3. AG should remember these issues.
We use the priority for languages to translate these documents, so it is difficult in reality.
4. Other right to women.
5. The nations that is not representative, is selected
6. The survey in Viet Nam: ownership is strong but PD is the first time to be seen.
The development strategy is clear about the steps, processes.
The good coordination between Viet Nam with donors.
7. The set of relations should be clear? The representative people?
The South-south relationship is already.
8. In Viet Nam have many of donors why is it? there is inequality of donors in Philippine?
9. The nation miss the agreement, which is punish to it? -

29. Q&A
10. Timor have $ 2 billions=> more for small population (about 1 million).
Co-donors
11. OECD didn’t take care the people who will have the result of projects.
12. Viet Nam have a good coordination.