International Development on Aid Effectiveness

1. International Development on Aid Effectiveness Presenter Said Muhammed Jama Aid Coordination Expert Ministry of National Planning and Development

2. 1. Aid Effectiveness: International Developments The international aid effectiveness movement began taking shape in the late 1990s. Donors and aid agencies, in particular, began to realize the costs they imposed on aid recipients by their many different approaches and requirements. They began working with each other, and with partner countries, to harmonize these approaches and requirements. The movement picked up momentum in (18-22 March 2002) at the International Conference on Financing for Development in Monterrey, Mexico. (Monterrey Consensus) The international communities agreed that it would be important to provide more financing for development- but more money alone was not good enough . Donors and partner countries alike wanted to know that aid would be used as effectively as possible

3. Aid Effectiveness: International Developments High-Level Forum on Harmonization (HLF-Rome)- was the second meeting, where leaders of major multilateral development banks and International and bilateral organizations, and donor and recipient country representatives attended in Rome meeting for the HLF meeting. Commitment: to take action to improve the management and effectiveness of aid and to take stock of concrete progress, before meeting again in early 2005.

4. The Paris Declaration on Aid Effectiveness – 2005-was the Third meeting. It defines 5 major principles to be adopted by partner countries (i.e. donors and recipients together), Ownership: Partner Countries exercise effective leadership over their development policies and strategies, and coordinate development actions. Alignment: Donors base their overall support on partner countries national development. Harmonization: Donors’ actions are more harmonized , transparent, and collectively effective. Managing for results: Managing resources and improving decision making for development results. Mutual Accountability: Donors and partners are accountable for development results Twelve indicators are defined to assess the adherence to these principles at a country level.

5. 1. Aid Effectiveness: International Developments The Third High-Level Forum on Aid Effectiveness took place in Accra, Ghana. 1,700 Participants, including more than 100 ministries and heads of agencies from developing and donor countries, global funds, foundations, UN and multilateral institutions, and 80 civil society organisation. The Accra Agenda for Action (AAA)- Sept, 2008- came out which expresses the international community’s commitment to further increase aid effectiveness– the implementation of the Paris Declaration Principles. The AAA spell out the following:

6. 1. BACKGROUND AND RATIONALE1.1 Aid Effectiveness International Developments Two reports on Monitoring the implementation of the Paris Declaration -2006 and 2008- provided evidence of the progress made against the indicators and targets of the Declaration. The first phase of the Evaluation highlighted ways to strengthen the performance of both partner countries and aid providers, and prepares the ground for second phase Evaluation , to be conducted by 2011. The second phase will focus on the effects of better aid in advancing development objectives.

7. The Accra Agenda of Action Predictability: developing countries will strengthen the linkage between public expenditure and results, and donors will provide 3-to -5 years forward information on their planned aid to partner countries. Ownership: developing country governments will engage more with parliament and civil society organizations. Country systems: partner country system will be used to deliver aid as the first option, rather than donor system, and donors will share their plans on increasing use of country systems. Conditionality: donors will switch from reliance on perspective conditions about how and when aid money is spent to conditions based on the developing country’s own development objectives.

8. The Accra Agenda of Action Untying: donors will elaborate individual plans to further untie their aid. Aid Fragmentation: donors agree to avoid creating new aid channels, and donors and countries will work on country-led division of labour. Partnerships: all actors are encouraged to use the Paris Declaration principles, and value of South-South cooperation is welcomed. Transparency: donors and countries will step up efforts to have mutual assessment reviews in place by 2010. These will involve stronger parliamentary and citizen engagement and will be complemented with credible independent evidence

9. The Rome Declaration on Harmonization The Rome Declaration on Harmonization set out the following program of activities: To ensure that harmonization efforts are adapted to the country context and that donor assistance is aligned with the development of recipient country’s priorities. To expand country-led efforts to streamline donor procedures and practices. (Country systems…) To review and identify ways to adapt institutions’ and countries’ policies, procedures, and practices to facilitate harmonization. To implement the good practices principles and standards formulated by the development community as the foundation for harmonization.