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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 Paris Declaration on Aid Effectiveness

The European Commission Response

The What and Why of Aid Effectiveness?

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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:

o Define their own development goals

o Implement reforms to strengthen their systems and institutions

o Focus on results, transparency and accountability

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6 key principles

•Donors are expected to:

o Align their support on partner country national development strategies

o Use partner country systems and institutions

o 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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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

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

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)

3. Avoid the establishment of any new Project Implementation Units (PIUs)

4. Reduce number of un-coordinatedmissions by 50%

4. Reduce number of un-coordinatedmissions by 50%

EuropeAid 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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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

Reforming Technical Cooperation & PIUs for External Aid provided by EC - Backbone Strategy July 2008

EuropeAidNeed 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

EuropeAidBackbone Strategy - Guiding Principles

7.Avoid use of Parallel PIU & promote effective Project ImplementationArrangements

ECTechnical

Cooperation

1.Primary aim is Capacity Development

2.Demand led approach where TC is not provided by default

8.Consider innovative options for TC provision

3.Strong result orientation

6.Work through harmonized and aligned actions

5.Take account of country/sector requirements

4.Country owned & managed TC processes

EuropeAid The delivery of SPS assistanceThe delivery of SPS assistance

EU Strategy on Aid for Trade – Oct. 2007EU Strategy on Aid for Trade – Oct. 2007

Support DC integration in world trading system as part of Support DC integration in world trading system as part of poverty reduction efforts in context of globalisationpoverty reduction efforts in context of globalisation

Operationalisation required of EU commitments to increase TRA Operationalisation required of EU commitments to increase TRA (In 2002: FfD/ Monterrey; 2005: G8/Gleneagles and WTO/Hong (In 2002: FfD/ Monterrey; 2005: G8/Gleneagles and WTO/Hong Kong) Kong)

Follow-up required to the recommendations of the WTO AfT Task Follow-up required to the recommendations of the WTO AfT Task Force of summer 2006Force of summer 2006

To be delivered in accordance with the principles of Aid To be delivered in accordance with the principles of Aid effectiveness and in compliance with Paris Declarationeffectiveness and in compliance with Paris Declaration

Support to Integrated Framework, ACP increased intevention at Support to Integrated Framework, ACP increased intevention at regional level etc. regional level etc.

EuropeAidThank you for your attention !

Internet: http://ec.europa.eu/europeaid/what/delivering-aid/aid-effectiveness/index_en.htm

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