Paris Declaration Presentation

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Information about Paris Declaration Presentation

Published on March 5, 2008

Author: Raimondo


Paris Declaration on Aid Effectiveness:  Paris Declaration on Aid Effectiveness August 2007 V. Sivagnanasothy Director General Department of Foreign Aid & Budget Monitoring, Ministry of Plan Implementation, E-mail: Road Map:  Road Map Rational Behind Paris Declaration What is Paris Declaration? The Importance of Paris Declaration The Core Principles of Paris Declaration The 12 Indicators and Targets for 2010 Challenges and the Way forward Why Aid is Under -Performing:  Why Aid is Under -Performing Lack of National Ownership (Donor Driven) Absence of Country Leadership in setting Country priorities (Irrelevant Projects) National priorities are undermined Absence of National Development Strategy to set-out Country priorities Little Coordination Too many projects Why Aid is Under -Performing:  Why Aid is Under -Performing Weak Implementation Capacity National Systems and procedures and institutions are undermined Aid by-passes National Budget – lack of accountability to Parliament Parallel systems of donors undermine National System Overburdened with unacceptable conditionality Why Aid is Under -Performing:  Why Aid is Under -Performing Aid comes with high transaction costs for governments with limited administrative capacity Weak leadership and poor accountability mechanism Some Donors concentrate on favoured sectors with little rational allocation of resources Why Aid is Under -Performing:  Why Aid is Under -Performing Weak dialogue between government & donors Highly tied Aid – Selling donors technologies, consultancies and products and services- less value for money ( Aid is trade) Lack of results orientation (Disbursement Culture) Inadequate Monitoring, Evaluation and Learning (Accountability) Sustainability overlooked What is Paris Declaration? :  Outcome of the March 2005 Paris High- level Forum on “Aid Effectiveness” where over 100 Ministers of developed and developing countries and Heads of Multilateral and Bilateral development institutions committed to improve Aid Effectiveness Ambitious reforms in the Aid System. Aid increases will not help to reduce poverty in the absences of improvements in the quality of Aid PD lays down a practical, action – oriented road map to improve the quality of aid and its impact on development by promoting changes to Aid delivery and management practices. What is Paris Declaration? Importance of Paris Declaration:  Importance of Paris Declaration Objectives Increase the Aid Effectiveness (Quality and Impact of Aid) Introduce far-reaching reforms to deliver and manage aid Monitor and report on the progress of Aid Delivery and Management related reforms Achieve lasting development results to Achieve MDGs, (Reduce Poverty, inequality, increase growth, build capacity) Donor-Driven to Owner-Driven:  Donor-Driven to Owner-Driven Helps to focus on Country priorities Donor-ship to Owner-ship ; Aid is more effective when Countries exercise strong and effective leadership over their development policies and strategies. Ownership is wider than National government and includes CSO’s, private sector and sub- national ownership Rationale Behind the Declaration:  Rationale Behind the Declaration Difference in priorities between donors and recipients create ownership issues Delay in project formulation and implementation due to diverse donor/recipients procedures on screening, appraisal, EIA, SIA, procurement practices and parallel systems Lack of consultation within government and donors on conditionality Failure to upgrade and use the country system – By-passing the country system further weakens the national system Tied Aid has been a serious problem to many countries Five Core Principles:  Five Core Principles National Ownership Alignment Harmonization Managing for Development Result’s (MfDR) Mutual Accountability Five Core Principles and Commitments:  Five Core Principles and Commitments 1. National Ownership Country leadership in setting national priorities Country to lead in the formulation and implementation of National Development Strategies including planning, budgeting and performance assessment framework Translate the National Development strategies into prioritized results-oriented operational programmes through the Medium-Term Expenditure Framework and Budget Core Principles and Commitments of Paris Declaration:  Core Principles and Commitments of Paris Declaration 2. Alignment Aid be aligned to meet the Countries National Priorities set-out in the National Development Strategy Donors to Strengthen Country Systems to international standards and align and use Country Owned Systems and procedures, in Public Financial Management, Auditing, Procurement, Results Framework, Environmental / Social Assessment, Monitoring, Statistical and Evaluation systems Eliminate corruption which inhibits donors from relying on partner country systems Use of Programme-Based Approach (PBA) in Budgeting and emphasis on Untied Aid Slide14:  Alignment Avoid creating dedicated structures (PIUs) for day-to-day management and implementation of aid-financed projects and programmes Strengthen national capacity including human resources TA programmes need to be consistent with National Development Strategies (No more donor-driven TA) Ensure official aid flows are reported on partners national budget Untying aid generally increase aid effectiveness by reducing transaction costs Core Principles and Commitments:  Core Principles and Commitments 3. Harmonization: Donors eliminate duplication of efforts and implement common arrangements at country level and reduce separate, duplicative missions, promote joint learning, harmonized arrangements for PFM, Procurements, Audit, M&E, EIA/SIA (eg: Joint Donor Missions) Increase the use of Programme Based Aid modalities – as a platform for sector alignment Slide16:  Harmonization: Donor complementarities (Encourage Joint Donor Country Assistance Strategy) Avoid activities that undermine national institution building such as bypassing national budget process (off - budget funding to be avoided) or setting high salaries for local staff Joint Evaluation as an important instrument for country ownership and capacity building 4. Managing for Development Results (MfDR):  4. Managing for Development Results (MfDR) Establish systems for Monitoring Results to ensure accountability to citizens and parliament and ensuring the use of results information for informed decision making and aid policy dialogue Develop and implement Results Driven National Development Strategies Establish Results-Oriented Reporting on aid assessment frameworks with Manageable number of Indicators Donor to refrain from requesting performance indicators that are not consistent with partners national development strategies 5. Mutual Accountability:  5. Mutual Accountability Donors and partners are accountable to each other for development results. Partner countries to strengthen the parliamentary role in national development strategies and budgets. Donors to provide timely, transparent and comprehensive information on aid flows so as to enable partner countries authorities to present comprehensive budget reports to their parliament and citizens ( predictability of aid flows) Change in the way of doing Aid business:  Change in the way of doing Aid business Paris Declaration calls for “Changed Behavior” of donors and governments Change in behavior & operations Change in policies & procedures Change in processes & systems Build a new form of Development Partnership - by changing deeply rooted patterns of Institutional behavior Changing donor behavior from “Disbursement Imperative” to “Aid Effectiveness Imperative” Government to have leadership on external assistance 12 Indicators to monitor progress:  12 Indicators to monitor progress Is PD implementable ?:  Is PD implementable ? Pessimist see PD as statement of good intentions A very high level of participations has given strength Action oriented – Not just words Broad consultation Progress monitored globally and at country level using 12 indicators against targets for 2010 Challenges:  Challenges Donors need to change their aid delivery practices. How far Paris Declaration has been Internalized within the government? (Baseline survey in progress, plan of action necessary) Are the country systems up to International / Acceptable Standards? (Ambitious Vision) Donor Harmonization is a challenge? eg: Joint Country Strategy. Also feasibility study done by one donor is not acceptable to other? Donor imposed conditionalities - Have they been consulted and agreed? Challenges:  Challenges Limitation of Aid absorptive capacity created project delays. Capacity building and institutional strengthening crucial Will donors shift their support from their own preferred sectors to National priority areas? Are donors flexible in applying their rules and procedures? Donors need to move away from “Disbursement Mode” to “aid effectiveness mode” Challenges:  Donors are accountable to their own parliaments. So they impose additional reporting requirements Aid Effectiveness Agenda need to be Localized in the Sri Lanka. Work related to localizing aid effectiveness commitment has to take place at country level Challenges Challenges:  Challenges Are the donors willing to delegate authority to their country office? The process of change of donors behaviors and government practices is important to ensure the implementation of PD.

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