ENHANCING AID EFFECTIVENESS

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ENHANCING AID EFFECTIVENESS

• European Commission
• Fidelma O Shaughnessy DG EuropeAid

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What we are going to talk about
The What and Why of Aid Effectiveness?
The Paris Declaration on Aid Effectiveness
The European Commission Response
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What is aid effectiveness today?

• The aid effectiveness agenda describes the set of
  measures being put in place by donors and partner
  countries to support the achievement of the
  Millennium Development Goals

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6 key principles

• Partner countries are expected to
• Define their own development goals
• Implement reforms to strengthen their systems and
  institutions
• Focus on results, transparency and accountability

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6 key principles

• Donors are expected to
• Align their support on partner country national
  development strategies
• Use partner country systems and institutions
• Harmonise and Co-ordinate their actions -
  including through division of labour

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Why is aid-effectiveness an issue?

• Common goal the Millennium Development Goals
  (MDGs) not on target
• Commitments to scaling-up of aid and debt relief
  - Monterrey, Barcelona, Gleneagles not being met
• High transaction costs still too many small
  projects by each donor

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The Paris Declaration on aid effectiveness
March 2005

• Over 100 partner countries and donors have signed
• Paris goes beyond previous agreements twelve
  indicators to track progress towards targets for
  2010
• Stronger mechanisms for mutual accountability

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The Paris Declaration in a Pyramid
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The EU Response

• EU is committed to implementation of the Paris
  Declaration
• Strongly supports greater partner country
  involvement in the harmonisation process
• Has committed to four targets which in addition
  to the Paris Declaration

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The EU Response
1. Channel 50 of government-to-government
assistance through country systems, including by
increasing the percentage of our assistance
provided through budget support or sector-wide
approaches
2. Provide all capacity building assistance
through co-ordinated programmes with an
increasing use of multi-donor arrangements
3. Avoid the establishment of any new Project
Implementation Units (PIUs)
4. Reduce number of un-coordinated missions by 50
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EU Code of Conduct on Division of Labour in
Development Policy - Feb 2007

• maximum of three sectors in-country
• redeploy funds in country based on local
  negotiations (either use delegated cooperation,
  or redeploy into GBS, or exit responsibly
  redeploying funds in 3 priority sectors)
• in each sector establish lead donor for all donor
  coordination
• Apply principles to Regional Cooperation
• limited number of priority countries

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Reforming Technical Cooperation PIUs for
External Aid provided by EC - Backbone Strategy
July 2008
Improved effectiveness and sustainability of EC
development assistance, based on
Provision of quality TC that supports
country-led programmes, based on partner demand
and focused on sustainable results
Provision of support through partner-owned
Project Implementation Arrangements, with a
substantial reduction of Parallel PIUs
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Need for a Strategy for TC and PIUs ?

• OECD/DAC  overview of the results  to monitor
  the Paris Declaration (2007)
• European Court of Auditors Special Report No.
  6/2007 on the effectiveness of technical
  assistance in the context of capacity development
  
• EC internal diagnostic
• Accra High Level Forum Sept 2008 confirmed need
  for increased progress in this area

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Backbone Strategy - Guiding Principles
1. Primary aim is Capacity Development
2.Demand led approach where TC is not provided by
default
8. Consider innovative options for TC provision
7. Avoid use of Parallel PIU promote effective
Project Implementation Arrangements
3.Strong result orientation
6. Work through harmonized and aligned actions
4.Country owned managed TC processes
5. Take account of country/sector requirements
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The delivery of SPS assistance

• EU Strategy on Aid for Trade Oct. 2007
• Support DC integration in world trading system as
  part of poverty reduction efforts in context of
  globalisation
• Operationalisation required of EU commitments to
  increase TRA (In 2002 FfD/ Monterrey 2005
  G8/Gleneagles and WTO/Hong Kong)
• Follow-up required to the recommendations of the
  WTO AfT Task Force of summer 2006
• To be delivered in accordance with the principles
  of Aid effectiveness and in compliance with Paris
  Declaration
• Support to Integrated Framework, ACP increased
  intevention at regional level etc.

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Thank you for your attention !
For further information

• Internet http//ec.europa.eu/europeaid/what/deliv
  ering-aid/aid-effectiveness/index_en.htm