1. ROUNDTABLE 3: HARMONISATION Optimizing Aid Delivery, Complementarity, Division of Labor Key messages to the ministerial session, Thursday 4 September, by Keith Muhakanizi, Deputy Secretary to Treasury, Uganda.

2. 3rd High Level Forum on Aid Effectiveness Roundtable 3: Harmonisation 2 Background  The roundtable was well attended and had a lively discussion that covered:  (i) In-country division of labour and  (ii) Harmonization and cross-cutting issues (gender, environment and human rights)  Distinguished panelists were made up of partner governments, CSO, donors  More than 300 delegates, actively sharing their experience

3. 3rd High Level Forum on Aid Effectiveness Roundtable 3: Harmonisation 3 RT 3 Panel 1: Division of Labor (DoL)  Excessive aid fragmentation reduces aid effectiveness, overburdens partner countries and creates high transaction costs  ‘Managing’ Division of Labor is urgently needed, but this is not an end in itself – the ultimate goal is better harmonization, alignment and transparency  There is a need for partner country leadership and inclusive & transparent Division of Labor processes  Capacities for aid management need to be strengthened both for donors and partner countries

4. RT 3: Challenges/ Risks  The speed and urgency of Division of Labor processes may impede country leadership if not well managed  There are perceptions that Division of Labor may lead to the creation of orphan sectors  There should be a sober assessment of comparative advantages of different in-country donors and:  Leadership roles should not only be based on volume of finance but  evidence-based, peer reviewed, but partner country criteria must have final say  There is a need to recognise the diversity in financing modalities in Division of Labor processes  Vertical funds and emerging donors need special attention

5. RT 3 Panel 2: Cross-Cutting Issues (CCI)  We need to firmly integrate human rights, gender equality, and environmental sustainability as goals in their own right in harmonization and Division of Labor efforts  Harmonization and mainstreaming of CCI will be most effective under:  (i) partner country leadership and  (ii) through partner systems  Committed donors can facilitate and support processes of integrating Cross-Cutting Issues  Measuring results for Cross-Cutting Issues makes a difference!  There is a need to develop capacity and provide incentives for staff to engage on Cross-Cutting Issues 3rd High Level Forum on Aid Effectiveness Roundtable 3: Harmonisation

6. Conclusion  At country level, we need to step up implementation of Division of Labor processes, led by partner governments;  We need to share good practices more systematically and agree on a set of “Principles on Division of Labour” which will provide guidance and serve as elements for collective learning  Partners and donors need to agree on benchmarking and peer review processes in order to be held accountable on their commitments to Cross-Cutting Issues  More work needs to be done by Working Party on Aid Effectiveness on “ Cross-Cutting Issues and aid effectiveness/new aid modalities”. 3rd High Level Forum on Aid Effectiveness Roundtable 3: Harmonisation