Division of Labour in International Development Cooperation

1. Division of Labour in International Development Cooperation The Status Quo Informal Policy Workshop on “Delivering Aid Effectiveness: Improving Division of Labour” Andreas König, GTZ Paris, 8 December 2008

2. Content • The DoL Concept • Division of Labour: an integral part of the PD • WP-EFF Task Team Complementarity/Division of Labour • EU Initiatives for better division of labor/ complementarity • Progress so far – next steps • Challenges in DoL/Complementarity

3. The DoL-Concept: A Reminder Division of Labour and Complementarity are crucial for enhancing aid effectiveness: • More effective use of resources through reduced fragmentation of donor inputs; • Making use of comparative advantages of donors; • Less overlaps and less transaction costs at the partner side for donor co-ordination, consultation & aid bureaucracy; • Scaling up of aid, contributions of all development actors/ non-DAC-donors should also be consciously managed

4. The DoL Process

5. 2. DoL/Complementarity: an integral part of the PD/AAA …in the PD • „Excessive fragmentation of aid at global, country or sector level impairs aid effectiveness. A pragmatic approach to the division of labour and burden sharing increases complementarity and can reduce transaction costs.“ Partner countries commit • „to provide clear views on donors` comparative advantage and on how to achieve donor complementarity at country and sector level.“ Donors commit • „to make full use of their respective comparative advantage at sector or country level by delegating, where appropriate, authority to lead donors for the execution of programmes, activitities and tasks.“

6. …in the AAA • Donors will respect developing countries’ priorities, ensuring that new arrangements on the division of labour will not result in individual developing countries receiving less aid. • complete good practice principles on country-led division of labour • start dialogue on international division of labour across countries and address the issue of countries that receive insufficient aid

7. 3. WP-EFF Task Team Complementarity/Division of Labour • Draft Good Practice Principles • Round Table Accra: Harmonization: rationalizing aid delivery, complementarity, division of labour: • The Roundtable addressed two topics: , (i) in-country division of labour, focussing on the bottlenecks to successful division of labour and ways to overcome them; and (ii) cross-cutting issues like human rights, gender equality and environmental sustainability and their promotion through harmonized approaches.

8. Accra HLF: Roundtable Results DoL: • DoL practices to be systematically reviewed • International good practice principles were seen as a useful instrument • A methodology to measure progress and outcomes to be developed

9. 4. EU Initiatives for better division of labour/ complementarity • Code of Conduct on EU division of labour (2007) 11 guiding principles in 3 closely interrelated dimensions: • Dimension 1: Division of Labor in partner countries (Guiding Principles 1 to 6) • Dimension 2: Cross-country division of labor (Guiding principles 7 und 8) • Dimension 3: Sectoral Profiling/ Division of Labor(Guiding principle 9) • Goal • Higher development effectiveness of EU-ODA via increased effectiveness and efficiency of aid and a reduction of transaction costs.

10. Fast Track Initiative on DoL and Complimentarity:Main objectives of FTIDoL: better development results through more effective aid Targeted results: • Commitment by Governments and donors in partner countries to DoL process. • Enhanced capacity of partner countries to lead for results oriented aid management, including DoL process. • Enhanced capacity of donor offices to implement DoL. • Planning and organisation of DoL process started and/or progress achieved in partner countries. • Creation of opportunities for streamlining donor presence. • Identification of possibilities for co-financing identified at the country level. • Identification of challenges to implementation of DoL at country level and communication to capitals. • Better communication and understanding of DoL processes between HQ and field.

11. 5. Progress so far – next steps (I) DAC Task Team Complementarity/Division of Labour • Finalization of Good Practice Principle on in-country Division of Labor (GPP) • Monitoring: - Qualitative assessment of progress on in-country DoL - Development of a methodology for measuring quantitative progress on in-country DoL - Analysis of the status quo and relevant issues around cross-country DoL/Compl. • Organise outreach and establish an electronic communication and information platform allowing for South-South information sharing and dialogue on DoL • Dialogue on cross-country DoL/Complementarity

12. (II) At EU level, contributing to the Post-Accra Process • Facilitation of Fast Track Initiative DoL • Monitoring of DoL in Fast Track Countries (in coordination with WP-EFF-Task Team DoL) • Increased utilisation of Delegated Cooperation • Promotion of the EU Toolkit on DoL

13. 6. Challenges in DoL/Complementarity • Assuring partner country ownership • Encouraging DoL based on strong country strategies which allocate donor roles based on their comparative advantages to achieve results • Balancing the goals of reducing donor fragmentation and maintaining a sufficient diversity in terms of approaches and instruments; • the need to further associate all development actors and global programmes with in-country DoL processes • Assuring the consideration of cross-cutting issues • Defining a common understanding on cross-country DoL

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