Aid effectiveness

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Global
Partnership and Aid
Lee, Kye Woo
KDI School of Public Policy and Management
I. BUSAN PARTNERSHIP DOCUMENT
 It sets out principles, commitments and actions that offer a foundation
for Global Partnership in support of international development.
 The outcome document is divided into four main sectors:
1) Shared norms and principles to achieve common goals;
2) Improving the quality and effectiveness of development co-operation;
3) From effective aid to co-operation for effective development ; and
4) The road ahead: Partnering for progress towards and beyond the MDGs
Shared principles to achieve common goals
Ownership of
development
priorities by
developing
countries
Inclusive
development
partnerships
Focus on results:
Development Coop
+
Development
Transparency
and
accountability to
each other
1. New and Inclusive Partnership
- Bilateral partnership
(North-South)
Global partnership
(South-South, Trilateral)
- Governmental partnership
(government- gov’t)
Global partnership
(gov’t, MDB, CSO,
Private, others)
 Partnership dates back to Paris Declaration (2005)
- Rome (2003), Marrakech (2004)
- North-South
- Government-Government
2. From Partnership (means) to Development (goal)
 The goal of Partnership (means)
- under Paris Declaration
Partnership for
Effectiveness of Development Cooperation
(Aid effectiveness)
- under Busan Outcome Document
Partnership for Development Effectiveness
 The shift in goals:
Development Cooperation
(aid effectiveness)
Development Effectiveness
(all public policy effectiveness)
(aid, trade, Fdi, ppp, knowledge,
Technology, climate change, economic
recovery, financial shock prep, etc)
II. IMPLEMENTATION PROGRESS AND CRITICISM
1.Disconnection from the Experience with Paris Declaration
(No thorough Evaluation and learning Lessons from PD)
Progresses in Paris Declaration
-
Stronger norms of good practice
Progress toward intended outcomes for 12 indicators
Improved aid partnership quality
Rising aid volumes.
Criticism Against Paris Declaration== Little Difference in:
-Giving higher priority to the needs of the poorest
(e.g. women, children)
-Promoting aid reform results, especially in
strengthening institutional capacities/social capital and
improving the mix of aid modalities.
Causes of Criticism Against Paris Declaration
- Lack of progress in all monitoring indicators (only one out of 12 indicators
has been fully met)
-Slow starts in aid management reform in recipient countries
-Weak political and public support for aid and aid reform in donor countries due to
the perception that the Declaration focuses on technical and bureaucratic
processes.
2. Lack of Focus for Immediate Implementation
- Too broad a range of goals to be focused in the short run with new and
Inclusive partnership
- New and inclusive Partnership should be applied in the short run with a
traditional goal, i.e. aid/development cooperation effectiveness for its added value
3. Missing Key Elements of Development Cooperation
(1) Scale of Development Cooperation
- Positive correlation between Aid – investment, growth, poverty
reduction
- Fall in 2008, followed by a brief recovery in 2009, subsequent declines to
date
(2) Optimum Aid Allocation Criteria
- More aid be given to governments with the poor, reforming policies and
institutions; to sectors for capacity building
- Aid should be used for rewarding reformers, not as an inducement for
reform
III. CHALLENGES FOR IMPLEMENTING THE BUSAN AGREEMENT
 The Way Forward
- Based on the lessons learned from the Paris Declaration and the criticism
against the Busan Agreement
- Apply the new and inclusive Partnership to the focused mandate–
Development Cooperation –for added value and effectiveness
 Back to Basics
- Reaffirm basic norms and principles (PD, AAA, etc.)
- Supplement the basic norms with missing key elements (scale, allocation)
- Reconcile differences in basic norms b/t traditional partnership and global
partnership
- Identify barriers to smooth implementation of the basic norms
 Renew Commitments by Political Leaders
- Reconfirm commitments to scale and allocation criteria of aid
- Mobilize new-inclusive partnership for political support of aid reform
- Support technical implementation of aid reform with political support
 Strengthen Monitoring and Evaluation of Aid Reform
- Mobilize new Partnership for voluntary participation of more countries in
the M +E scheme of aid reform
- Establish M+E targets based on experience of PD and new partnership
- Agree on the scope and modalities of development cooperation b/t
traditional and new partnerships
 Format for Discussing GPEDC
- Each group of new partnership discuss the way for adding value, exchange
views b/t groups, and reach consensus among new-inclusive partners
Thank You!
Lee, Kye Woo
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