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Towards development effectiveness: Putting aid in the right place. An agenda for HLF4. Development Results? Key principles for a results framework. Democratic decision-making Poverty Eradication Social and gender equity Self-sustained economies and decent work Environmental sustainability
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Towards development effectiveness:Putting aid in the right place An agenda for HLF4
Development Results?Key principles for a results framework • Democratic decision-making • Poverty Eradication • Social and gender equity • Self-sustained economies and decent work • Environmental sustainability • Rights and Justice
Operationalizing DevelopmentEffectiveness
From Country Ownership to Democratic Ownership PD/AAA have reduced ownership to country ownership Using country systems was a major shift driven by PD/AAA, and is a prerequisite for democratic ownership Conditionality still undermines democracy and development Formal conditionality has been reduced but replaced by donor-led diagnostics; performance or results-based allocations, and donor-driven technical assistance
Recommendations for HLF4 Recognize, encourage and institutionalise the participation of citizens, civil society and parliaments Use transparent and accountable country systems, including for decision-making Phase out all policy conditionality, including IFI macro conditionality Agree on mutually binding aid contracts under developing country leadership Revise the indicators of the PD to reflect democratic ownership
From Tied aid to pro-poor procurement • Tied Aid reduces cost-efficiency, drives prices up by 15% to 40% • Aid tying undermines ownership and limits choice. • Untying made progress, but procurement outcomes have not changed much • Two thirds of contracts awarded to Northern TNCs and consultancies („reverse flows“ or „boomerang aid“) • Just one third of ODA has local economic impact, creates jobs and income opportunities in the recipient country • ODA has failed to built the productive capacities that are needed for ending aid dependence (UNCTAD 2010) • ODA has largely side-lined the poor – only 10% translated into additional income; Riddell 2007)
Recommendations for HLF4 Donors should untie all aid to all countries Donors should use country systems as the default option Local procurement: Increase the share of contracts awarded to recipient country firms and commit to providing obligatory explanations when allocating contracts back to donor countries. Stop to impose liberalisation of Southern government procurement through reform programmes.
Conclusion The Fourth High-Level Forum on Aid Effectiveness must TRANSFORM AID into A stimulus package for the poor