Europe Aid The Ideas Overview Europe Aid Ownership
- Slides: 26
Europe. Aid The Ideas
Overview Europe. Aid Ownership & Predictability Harmonisation & Alignment Transaction costs & Conditionalities Transparency & Information
Overview Europe. Aid 22% of the total value of aid is Ownership & Predictability lost due to its unpredictability Harmonisation & Alignment Transaction costs & Conditionalities Transparency & Information
Ownership What? You can drive and we won’t tell you where to go. Not just Government. Why? Democracy, Legitimacy, Knowledge, Capacity. Fragile States. How? Strategy, Sectors, Systems. In Practice… Donors: back-seat driving (PRSP, CSP), pay for policy. Govt: we know what you really want, capacity & information constraints. Europe. Aid
Ownership in Georgia: A donor compact Europe. Aid
Ownership in Vietnam • Socio-Economic Development Plan 2006 -10 • ODA Strategic Framework • Hanoi Core Statement • Online self-reporting by donors on the DAD • Partnership Group on Aid Effectiveness Europe. Aid
Predictability What? No nasty surprises. What and when. Why? Planning, Ownership (part of the budget). How? Advance Notice, Match Formats, Pay What You Say, Be Accountable. In Practice… we did it our way (“programming cycles”, Congress), red tape. Problems in Addis: budget support delay, thanks but no thanks. Only 30% out. Europe. Aid
Predictability in Mozambique: ODAMoz Europe. Aid
Predictability in Ethiopia • One format • Check & fix • Risk management • Contingency fund Europe. Aid
Overview Ownership & Predictability 1, 000 different projects were dealt with by the Government of Uganda over 4 years. Harmonisation & Alignment Transaction costs & Conditionalities Transparency & Information Europe. Aid
Harmonisation What? Holding hands, not stepping on toes. Study, plan, implement, evaluate and talk together. Specialise. Why? Gaps, Overlaps, Synergies, Track, Manage. How? Not automatic! Joint Analysis then Programmes, Govt-led Specialisation, Silent Partnerships, National Indicators. First change procedures. In Practice… Government: leadership – will, capacity? Donors: will, power, procedures, time? Europe. Aid
Harmonisation in Ethiopia: Division of labour Europe. Aid
Harmonisation in Cambodia • 30 donors, 750 projects • Three’s the limit – sectors & donors • Mapping & CA for congested sectors • Establishment of lead donors • 2008: FTI Do. L & 2009: PBA Europe. Aid
Alignment What? Go through the Government. Why? Costs less, delivers more. Better systems. How? National strategy, national systems, capacity build, untie, use budget support. In Practice… less control & more risk, selective use of strategy, systems: just a bit more capacity building… Europe. Aid
Alignment in Laos PDR Government Donor Sector Working Groups Europe. Aid
Alignment in Albania • New national laws, institutions & procedures • One-stop-shop for donor management • Aid database linked to national budget • Taking over donor machinery Europe. Aid
Overview It took 150 people 18 months to buy 5 donorfunded vehicles in Vietnam. Ownership & Predictability Harmonisation & Alignment Transaction costs & Conditionalities Transparency & Information Europe. Aid
Transaction costs What? Aid Admin – donors, cycles, projects, procedures, missions… Why? There’s a country to run (fragile states). Scaling up. How? Ownership, Predictability, Harmonisation, Alignment! In Practice…donors, projects, procedures, missions Europe. Aid
Transaction costs in practise • 30 countries have more than 40 donors • Over half of aid not coordinated • Over half of studies done bilaterally • Five missions per country, per week Source: OECD DAC 2008 Survey on Monitoring the Paris Declaration Europe. Aid
Conditionalities What? No such thing as a free lunch: policy, purchase, tax break…. . Incentive, bribe, or punishment? Incentive… 80 s: Macro-economic, 90 s: Governance. Why? Helping you, helping me. In Practice… • unclear & uneven (predictability), • uncoordinated (SIDA vs. WB), • undone (disbursement pressure), • unwise (OECD 2009 study, ownership innovation). Europe. Aid
Overview Ownership & Predictability “How can we ‘own’ what the donors are doing when we don’t even know what they’re doing? ” Georgian Ministry of Finance Harmonisation & Alignment Transaction costs & Conditionalities Transparency & Information Europe. Aid
Transparency & Information What? Who, What, Where, When, How…And So? Why? Accountability (corruption), Learning, Incentive. Plus ownership, predictability, harmonisation, alignment, transaction costs. How? One stop shop for plans, programmes, performance, studies and missions. In one language. In Practice… limited, outdated spread out, incompatible. Europe. Aid
Transparency & Information in practise Europe. Aid
Transparency & Information in practise Europe. Aid
Transparency & Information in practise Europe. Aid
Transparency & Information in practise Europe. Aid
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