AID EFFECTIVENESS A GLANCE FROM GLOBAL TO COUNTRY LEVELS

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AID EFFECTIVENESSA GLANCE FROM GLOBAL TO
COUNTRY LEVELS

• Cao Manh Cuong
• Foreign Economic Relations Dept.
• Ministry of Planning and Investment

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PAR I. AID EFFECTIVENESS GLOBAL CONTEXT
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WHY IS AID EFFECTIVENESS IN FOCUS?
ODA Global Demand To achieve MDGs by 2015
developing countries need at least USD 150
billion annually from ODA resources.
ODA Global Supply If the ODA amount pledged by
donors at the Monterrey conference is
materialized, the DAC members total net
disbursements of ODA will rise from USD 80
billion at present to 130 billion in 2010.
Solution for matching ODA global demand and
supply question Maximizing Aid Effectiveness
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DAC MEMBERS NET ODA IN 1990-2004 PERIOD AND
SIMULATION TO 2010
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HOW CAN MAXIMIZE AID EFFECTIVENESS?

• Following the Monterrey Conference, the 1st High
  Level Forum (HLF-1) on Harmonization was held in
  Rome in Feb. 2003 where the donors and the
  partner countries announced Rome Declaration on
  Harmonization.
• As result the HLF-1, OECD-DAC Working Group (WG)
  on Aid Effectiveness was established with
  participation of 14 partner countries (Vietnam is
  one member of the WG). Key outputs Publication
  of Good Practice Papers Development of contents
  for 2nd High Level Forum (HLF-2) on Aid
  Effectiveness.
• The HLF-2 on Aid Effectiveness was organized in
  Mar., 2005 where the donors and the partner
  countries endorsed Paris Declaration on Aid
  Effectiveness.

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AID EFFECTIVENESS PYRAMID AS THE FINAL GOAL THAT
THE PARIS DECLARATION AIMS AT
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OPPUNINITIES AND CHALLENGES OF PARIS DECLARATION
ON AID EFFECTIVENESS
At global level, the Paris Declaration provides a
very strong international platform with a clear
long-term vision for both donors and partner
countries to bring the Harmonization, Alignment
and Ownership Agenda forward.

• At the country level, the Paris Declaration
  presents both
• opportunities and challenges when partner
  countries seek to
• ensure its successful implementation.

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PART II. CONTEXT OF HANOI CORE STATEMENT ON AID
EFFECTIVENESS (HCS)
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FREQUENTLY ASKED QUESTIONS ABOUT HCS

• What is HCS?
• Where did HCS come from?
• Who developed HCS?
• When did HCS become an official document?
• What are the contents of HCS?
• Why is HCS so essentially important?

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WHAT IS HCS?

• It is a mutual commitment endorsed by the
  Government of Vietnam and the donor community on
  measures to improve AID EFFECTIVENESS in Vietnam.

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WHERE DID HCS COME FROM?

• It is a localized statement of the Paris
  Declaration on Aid Effectiveness to Vietnam to
  ensure it is relevant to the country context.

Vietnam is the first partner country that has
successfully localized PD
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WHO DEVELOPED HCS?

• It was developed by the Partnership Group on
  Aid Effectiveness (PGAE) - A key GoV - Donor
  forum on Vietnams Aid effectiveness Agenda.

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WHEN DID HCS BECOME AN OFFICIAL DOCUMENT?

• It was endorsed by the donor community in
  Mid-term CG 2005 and approved by the Government
  in late September, 2005

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WHAT ARE THE CONTENTS OF HCS?

• HCS contains 28 Partnership Commitments and 14
  Indicators with 5 guiding principles

1. Ownership 2. Alignment 3. Harmonization and
Simplification 4. Managing for Results 5. Mutual
Accountability
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WHY IT HCS SO ESSENTIALLY IMPORTANT?

• HCS calls for and urges changes in behavior of
  both donors and Government toward aid
  effectiveness goals

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PART III. HANOI CORE STATEMENT ON AID
EFFECTIVENESS (HCS) COMMITMENTS
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OWNERSHIP (Commitments 1-2)

• The Government of Vietnam takes the leadership in
  its 5 Year Socio Economic Development Plan (SEDP)
  and in integrating ODA into its planning
  (Commitment 1).
• The Government of Vietnam further strengthens its
  leadership role in co-ordinating aid at all
  levels (Commitment 2).

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ALIGNMENT (Commitments 3-17)

• Donors align with Vietnam's strategies and commit
  to use strengthened country systems (Commitments
  3-8).
• Vietnam strengthens institutional capacity with
  support from donors Donors increasingly use
  government systems. (Commitments 9-17).

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HAMONIZATION AND SIMPLIFICATION (Commitments
18-24)

• Donors implement common arrangements and simplify
  procedures (Commitments 18-21).
• Complementarity More effective division of
  labour (Commitments 22-23).
• Incentives for collaborative behaviour
  (Commitment 24).

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MANAGEMENT FOR RESULTS (Commitments 25-26)

• The Government of Vietnam and donors jointly use
  results-oriented performance assessment
  frameworks to maximise aid effectiveness and
  manage implementation of the SEDP and related
  national, regional, provincial and sectoral plans
  (Commitment 25).
• Donors link country programmes and resources to
  achieve results that contribute to, and are
  assessed by, Government of Vietnam performance
  assessment frameworks, using agreed indicators
  (Commitment 26).

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MUTUAL ACCOUNTABILITY (Commitments 27-28)

• The Government of Vietnam and donors jointly
  assess, and carry out annual independent reviews,
  on progress in implementing agreed commitments on
  aid effectiveness and improved development
  outcomes through existing and increasingly
  objective country level mechanisms (Commitment
  27).
• Donors provide timely, transparent and
  comprehensive information on aid flows and
  programme intentions to enable Government of
  Vietnam to present comprehensive budget reports
  to legislatures and citizens, and co-ordinate aid
  more effectively (Commitment 28).

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PART IV. HANOI CORE STATEMENT ON AID
EFFECTIVENESS (HCS) INDICTORS AND TARGETS IN
2010
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OWNERSHIP

• 5 Year Socio-Economic Development Plan (SEDP) is
  finalised, CPRGS principles are integrated SEDP
  is effectively implemented.

Indicative Targets to 2010 5 Year SEDP targets
are achieved
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ALIGNMENT

• Donor assistance strategies are aligned to the
  SEDP and related to national, regional,
  provincial and sector strategies

Indicative Targets to 2010 All donor
assistance strategies
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ALIGNMENT

• Donors strengthen government capacity by avoiding
  parallel implementation structures.

Indicative Targets to 2010 No parallel PMUs
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