Localizing the Paris Declaration and Improving Aid Coordination and Effectiveness in Papua New Guinea – Our Experience

1. Localizing the Paris Declaration and Improving Aid Coordination and Effectiveness in Papua New Guinea – Our Experience Presentation to the Regional Aid Coordination Workshop 03-07 April 2008 Nadi, Fiji Islands

2. Session Overview • Overview of the Paris Principles on Aid Effectiveness • Progress to Date - Donor Consultation Forum (Goroka, Madang) • Technical Working Group - Interagency Working Group ( PNG agencies) - Joint Working Group (PNG agencies & DPs) • Localized Paris Principles – Kavieng Declaration • 2008 Plan of Action • Protocols for Missions and Technical Assistance. • Next Steps/Way Forward DNPM – Aid Policy & Coordination

3. Paris Principles on Aid Effectiveness • The Paris Declaration is the outcome of the 2005 Paris High Level Forum on Aid Effectiveness. In the Declaration 60 countries, 30 donor countries, and 30 development agencies, committed to specific actions to further country ownership, harmonization, alignment, managing for development results and mutual accountability for the use of aid. • The Declaration reflects the development community’s determination to increase the effectiveness of aid and achieve lasting development results. It contains a monitoring mechanism: 12 indicators, with targets, which will be used in 2008, 2010 and beyond, to review and report on the degree to which the international community has followed through on the commitments. • The Declaration is important because its implementation will help increase the impact aid has on reducing poverty, raising economic growth, building capacity and attaining the Millennium Development Goals (MDGs). DNPM – Aid Policy & Coordination

4. Paris Declaration - Partnership Principles PNG sets the agenda 1. Ownership Alignment with PNG agenda Reliance on PNG systems 2. Alignment Simplification of procedures 3. Harmonization Sharing of Information Common arrangements 5. Mutual Accountability 4. Managing for Results DNPM – Aid Policy & Coordination

5. Progress to Date – 2005 -2008 • 2005 Donor Consultation Forum – was the first development partner forum held to gauge and forge partnership between the Government, development partners and other key stakeholders. • 2006 Donor Consultation Forum – this was the second development partner forum. PNG Government wanted a Plan of Action to engage with development partners – which led to the Madang Plan of Action (MPoA). • The Madang Plan of Action (MPoA) is an agreed set of actions for both the donor partners and the Government to implement, re-enforce and improve the coordination and harmonization of development assistance. DNPM – Aid Policy & Coordination

6. Madang Plan of Action • The MPoA calls for a robust development partnership between the Government and the donors based on PNG’s ownership and leadership, a strong emphasis on sustainability, and a focus on capacity building of institutions, systems and human resources. • To improve alignment, development partners and countries must emphasize in a frank and transparent way,the need to place nationally designed strategies at the heart of the development process and to rely on the partner country's own management systems. • The key outcomes of the Forum are outlined below: • In terms of donor harmonization and aid effectiveness, it was agreed that a strong and robust relationship is required between central government agencies, line agencies and other stakeholders. • There is a need to harmonize the relationship between the GoPNG and the donors to focus on improved analysis, joint assessments, joint strategies, and coordination of political engagement. DNPM – Aid Policy & Coordination

7. Technical Working Group • MPoA recommended for the establishment of a High Level Technical Working Group (TWG) with very specific Terms of Reference (TOR). • This resulted in establishing two TWGs: - Interagency Working Group ( consisted PNG govt agencies - Joint Working Groups (PNG govt and Development Partners). • IWA consisted key government agencies dealing dealt with all technical matters relating to aid coordination and other core government policies and processes. • JWG consisted DPs and government discussing key issues on how the core principles can be translated into PNG systems and processes based on country specificities and realities. DNPM – Aid Policy & Coordination

8. Localized Paris Principles- Kavieng Declaration • Is to localized version of the Paris Declaration on Aid Effectiveness (2005). It aims to give meaning to the principles in the Declaration within PNG and set monitorable targets and actions to improve aid effectiveness over the period 2008 to 2012 and beyond. • This joint statement is consistent with work that is going on to develop the Pacific Principles on aid effectiveness. • The Government of PNG and Development Partners, mutually resolve to take specific, monitorable actions to make foreign aid more effective in reducing poverty and inequality, increasing growth, and building the capacity of human resources and institutions, as we work together for the achievement of PNG’s Medium Term Development Strategy (MTDS) by 2010, and the Millennium Development Goals (MDGs) by 2015. DNPM – Aid Policy & Coordination

9. Kavieng Declaration –Rationale • Aid effectiveness must improve significantly to support PNG’s efforts to strengthen governance, to improve development performance, and to enhance development outcomes. DNPM – Aid Policy & Coordination

10. Kavieng Declaration - Ownership • The Government of PNG defines operational development policies. • Exercise leadership in developing and implementing its Medium Term Development Strategy (MTDS) through broad consultative processes which integrate overseas development aid into mainstream planning. DNPM – Aid Policy & Coordination

11. Kavieng Declaration - Alignment • Development Partners align with PNG's strategies. • Development Partners will base their support on the Government of PNG’s MTDS and related national and sectoral plans (Indicator 2). • The Government of PNG and Development Partners work to implement and strengthen Program Based Approaches. • The Government of PNG strengthens institutional capacity with support from Development Partners; • Use of Government of PNG systems. DNPM – Aid Policy & Coordination

12. Kavieng Declaration – Harmonization & Simplification • Development Partners implement common arrangements and simplify procedures. • Complementarity: more effective division of labour.

13. Kavieng Declaration – Managing for Development Results • Managing resources and improving decision-making for results. • The Government of PNG and Development Partners will use results-oriented performance assessment frameworks to manage implementation of the MTDS and related national, lower level governments and sectoral plans.

14. Kavieng Declaration – Mutual Accountability • Partners are accountable for aid effectiveness. • The Government of PNG and Development Partners will jointly assess, and carry out annual reviews, on progress in implementing the commitments on aid effectiveness contained in this statement.

15. Kavieng Declaration- Alignment to MDGs • MDG Goal 8 and its linkage to the Core Statement. • Partnership and development financing should be harnessed through joint commitments. • Indicators and targets of Core Statement will progressively lead to achieving MDG goals. • Core Statement –Increased Aid Resources-Enhanced Development Outcomes – Achieving MDG Goals (including MDG 8).

16. Kavieng Declaration • Targets and Indicators for 2012 • 2008 Plan of Action • Protocols for Missions and TAs

17. The Way Forward • The Joint Working Group is the first step in deliberating the next steps including detail work on the Paris Aid Effectiveness principles. • Internal GoPNG processes will have to be established • Interagency Committee on Aid Utilization • Other Committee when required ( GoPNG/Donor/Civil Society Committee). • Sub-committees on each of the partnership principles (including operational issues). • Create linkages to other Committee, MDG, PMF, etc. • Joint declaration of principles and indicators by the end of 2007. DNPM – Aid Policy & Coordination

18. THANK YOU TRU VINAKA Karl Sopol Assistant Director Aid Policy & Coordination Directorate. Department of National Planning and Monitoring Papua New Guinea