Harmonization presentation Manning

Overview of Harmonisation, Alignment, and Results  for Development Effectiveness: 

Overview of Harmonisation, Alignment, and Results for Development Effectiveness Richard Manning, Chair, Development Assistance Committee, OECD Africa Regional Workshop, Dar Es Salaam , Tanzania 9-11 November 2004

Overview of Presentation: 

Overview of Presentation What is the harmonization and alignment problem? Why is it important? How is it being addressed? Bilateral/Multilateral political support for change Country harmonization activities including in the Africa region Monitoring the implementation: OECD-DAC Survey Progress to date and emerging challenges Importance of the Tanzania Workshop Onwards to the Paris Forum

The Problem? A Chaos of Good Intentions: 

The Problem? A Chaos of Good Intentions Identification and ranking by developing countries of the problems in the aid delivery system, per the OECD-DAC Needs Assessment, 2002.

The Problem Cont’d --Uncoordinated aid : 

The Problem Cont’d -- Uncoordinated aid Redundant/duplicate systems of due diligence (accounting, budgeting, audit, procurement, environmental and social safeguards, monitoring and reporting, etc.) Proliferation of agencies, country strategies and diagnostic and lending instruments Waste of time, effort, and resources

Why is it a Problem: 

Why is it a Problem Undermines country ownership Increases unproductive transaction costs Weakens capacity Reduces aid effectiveness Undermines public support

How Is It Being Addressed: 

How Is It Being Addressed Technical work on good practices Rome High Level Forum Consensus on Framework of Action Institutional Set Up Marrakech and Focus on Development Results

Technical Work : 

Technical Work 2002: OECD-DAC Task Force on Harmonization produced good practices paper MDB working groups on procurement, financial management, environment 2003: Endorsed at Rome High Level Forum

Rome Declaration on Harmonization and Alignment: 

Rome Declaration on Harmonization and Alignment Implement good practice principles and practices in aid delivery and management Use harmonized processes, procedures and requirements Align donor programs with country priorities and improved systems See Rome Declaration on Harmonization, February 2003. A Commitment by Donors and Partner Countries to Fundamental Change …

Slide9: 

Consensus on Action Framework

Institutional set up after Rome: 

Institutional set up after Rome Working Party on Aid Effectiveness Mandate focused on country implementation International membership and includes 14 partner countries Shift from individual donor driven assistance to country-led collective development impact

Marrakech and Focus on Results: 

Marrakech and Focus on Results Core principles and provisional action plan endorsed Action plan being further developed and refined in the DAC Joint Venture on Management for Results

Strong Bilateral/Multilateral Agency Endorsement at Highest Levels: 

Strong Bilateral/Multilateral Agency Endorsement at Highest Levels OECD DAC High Level Meeting Statement-15-16 April 2004 Accept significant changes required to way DAC donor agencies and field offices manage aid delivery Encourage developing countries to lead strong local coordination processes based on home-grown strategies and medium-term budget frameworks

Development Committee Communique: October 2, 2004: 

Development Committee Communique: October 2, 2004 We are committed to using the Second High-Level Forum on Harmonization in Paris next spring to translate these agreements into clear and specific commitments and timetables and call for the development of indicators and benchmarks to monitor the participation of all partners in this effort at the country level

Countries in Planning or Implementing Phase1/ Source: World Bank Database on Harmonization and Alignment, March 2004: 

Countries in Planning or Implementing Phase1/ Source: World Bank Database on Harmonization and Alignment, March 2004 1/ Scope of plans or actions vary.

Some Country Examples: 

Some Country Examples Harmonization Action Plans: Among 12 countries which have prepared or are preparing, 5 are from the Africa region– Ethiopia, Niger, Rwanda, Tanzania, Zambia Development of Joint assistance strategies and programming: In Kenya (DFID, WB), Rwanda (DFID, EC, SIDA, UN system), Tanzania (DFID,WB), Uganda (DFID, Germany, Netherlands, Norway, SIDA, WB) working on various forms of joint assistance strategies

Country Examples-Cont’d: 

Country Examples-Cont’d Sector Wide Approaches (Swaps): Over twenty countries implementing/ working including in Burkino Faso, Ethiopia, Ghana, Malawi, Mali, Mozambique, Senegal, Tanzania, Uganda, Zambia Procurement: Twenty countries including in Algeria, Angola, Benin, Kenya, Niger, Senegal Financial Management: Initiatives in over 35 countries. Ethiopia has made significant strides in this area and World Bank and AfDB have agreed to undertake all CFAA’s jointly in the region

Country examples-Cont’d: 

Country examples-Cont’d Delegated Cooperation Not common but there is steady increase in this form of harmonization Malawi and Ethiopia (Norway and Sweden);Mali (AFD and KfW); Rwanda (SIDA and DFID) are some examples

Monitoring the Implementation: 

Monitoring the Implementation OECD-DAC Survey on Harmonization

OECD-DAC Indicators/Surveys: 

OECD-DAC Indicators/Surveys Framework of quantitative and qualitative indicators developed to establish baseline on status of harmonization and alignment Three-part questionnaire: Part 1  Government assesses ownership; Part 2  Government and donors assess alignment Part 3  donors assess harmonization total of 13 indicators drawn from Rome Commitments Process managed by in-country government and donor lead coordinators Applied to the 14 OECD-DAC focus countries Compiled results to feed into Paris HLF-2

Progress to Date: 

Progress to Date International focus on improving aid delivery and management has increased. Covers project procedures, sector programs, and budget support operations Good Practice is not yet general practice Traction not strong enough yet Further progress requires institutionalization

Challenges: 

Challenges Harmonization and Alignment not a soft option Avoid parallel donor systems and increase reliance on improved country systems Coordinated and targeted capacity building of country institutions/systems critical Proactive reliance by donors on common arrangements

Challenges-Cont’d: 

Challenges-Cont’d Close gap between Headquarter commitments and ground level operations Clear directions needed to field and authority to act Improve staff and institutional incentives and allocate budget to undertake H&A Provide predictable aid to support medium term planning

Importance of Tanzania Workshop: 

Importance of Tanzania Workshop Largest of four regional workshops prepared for the Paris Forum Designed to discuss harmonization alignment issues of region in global context Key messages from workshop will influence content of Paris Declaration Framework for a Declaration and Agenda for Action prepared for discussion

Looking Towards Paris Forum Feb 28-March 2, 2005: 

Looking Towards Paris Forum Feb 28-March 2, 2005 Occasion to assess and account for progress against Rome commitments Time to build on progress made and push ahead to meet the ongoing challenges. Paris Declaration expected to call for clear and specific monitorable commitments and timetables Paris Forum expects over 2 Presidents, 120 Ministers or heads of agencies from more than 60 partner countries, 30 donor countries, as well as some 20 multilateral institutions, including the UN and multilateral development banks.