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The Reality of Aid 2008

Chapter 3

Chapter 4
What is Needed for Aid Policies
to Facilitate Development Outcomes
for the Poorest Communities

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The Reality of Aid 2008

Introduction

The previous three sections of this of policies and projects affecting the lives
publication have shown that aid of some of the poorest people on earth.
relationships are still based on the power of Accountability is essential to ensure
the donors, with the IFIs leading the way in that democratic ownership becomes a
exerting unacceptable influence over the reality. The article ends by making a series
policies of developing countries. The Paris of recommendations around the themes of:
Declaration is a small step in the right (1) respecting real ownership of the
direction, but falls well short of effectively development process; (2) improving
ensuring an adequate focus on the key transparency to southern governments and
objectives of combating poverty, alleviating citizens; (3) creating and improving
hunger and preventing disease. answerability and enforcement mechanisms;
This chapter therefore looks at what is (4) and creating effective international
needed for aid policies to be successful at mechanisms for standard setting and
achieving these rights-focused aims. It oversight of aid.
highlights principles that need to be
applied, based on the solid foundation of
democratic ownership of development Cambodia
policies.
A paper by the NGO Forum on Cambodia
argues that whilst accountability is an
UK important concept, it is essential to ask the
question ‘accountability to whom?’ This is a
The article from the UK NGO ActionAid sets question, however, that the Paris
out why accountability is so important in Declaration fails to address and thus fails as
providing for a balanced aid agenda leading well to provide a mechanism to make
to better development outcomes. It acts as accountability work in practice. Recipient
a vital check on the abuse of power or the governments are clearly held accountable
violation of human rights, ensuring that by donors, but they should be accountable
donors are a help and not a hindrance to to their own citizens, either directly or
citizens’ struggles. through CSOs and parliaments.
It asserts that accountability means At the moment donors are not really
power holders’ having to justify their accountable to anyone. However, their role
actions (answerability) and others’ having should be to act as facilitators and
the ability to rectify or sanction poor architects of partner countries’ democratic
performance by donors (enforceability). governance systems.
Accountability requires transparency and The piece asserts that four elements
openness to work. The article also explains are needed to make accountability work: (1)
the negative consequences of not having commitment to account for development
this accountability on the practical delivery results; (2) measurement of development

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results; (3) accountability enforcement; (4) as development actors needs to be fully


and an enabling environment, including recognized and funded.
transparency and access to information. It
is important that input and output
indicators are chosen to give accurate Nicaragua
information on the intermediate results of
aid, so that weaknesses can be revealed The article of Lacayo strongly asserts that
and policy improvements made. the role of the general population and the
CSOs in ownership of the development
policy process is essential and should be
Africa articulated with the government and state
institutions, and coordinated with local
An article from the African Debt and authorities and participation spaces.
Development Network (Afrodad) focuses on The experiences of the different
the need for managing for results, which is processes in the Latin America and
the process of assessing the development Caribbean region (LAC) and in preparing for
results of aid policies to inform the High Level Fora on aid effectiveness
improvements in these policies. It highlights have left great richness that can serve as
the efforts needed from recipients and examples for other regions. However much
donors to ensure that aid delivery provides work is needed to achieve national
the maximum positive impact on the democratic ownership where CSOs can have
everyday lives of the world’s poorest and enough influence to change the way that
most marginalized people. development cooperation is run.
It argues that recipient countries need Firstly, there should be a critical
to improve the links between national evaluation of all of the content and aims of
development strategies, which should set development policies with the promotion of
out the results to be achieved and annual rights and tackling of poverty placed at the
and multi-annual budgets. They also need center of actions. Bottom-up processes
results-oriented reporting and assessment with a grassroots perspective are
frameworks. These provisions would enable fundamental in this context.
policies to be led by the assessment of International partners should promote a
previous efforts. representative and participative approach
Donors, on the other hand, must align to democratic national ownership, with
their support with national development CSOs effectively recognized and brought
strategies and rely as much as possible on into the policy-making processes. This must
partner country performance assessment be supported by capacity-building efforts,
frameworks. They should work with partner fully open and transparent processes and
countries to strengthen developing country the full engagement of legislative assemblies.
capacities and harmonize their efforts in
line with national frameworks.
Key challenges include making Mexico
participation a reality, allocating budgets
according to priorities, developing capacity, An article from ALOP calls for international
fighting corruption and successfully development co-operation as a new global
coordinating inclusive monitoring based on public good in an increasingly globalised
coherent indicators. For resources to be world. It should be used to resolve global
adequately linked to results, policy problems and preserve other global public
conditionalities need to be stopped and goods, including personal freedom,
project funding replaced. The role of CSOs biological diversity, cultural diversity,

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democracy and peace. It argues that AWID


current forms of development assistance
were thought up in a different world where The Association for Women’s Rights in
today’s rules and today’s reality did not Development (AWID) emphasises that the
apply; change is therefore essential. majority of people living in poverty are
Whereas public goods were usually women and girls. It therefore argues that,
protected at the local level, there are beyond the highly technical Paris
increasing demands on each other’s Declaration, governments should be held
resources in the modern world. Issues are accountable for their implementation of
growing around the relationship between other commitments on development, human
the places that enjoy an abundance of rights and gender equality through
resources and the poorest, disregarded agreements such as the International
masses of the globe. Covenant on Economic, Social and Cultural
The United Nations is not currently Rights.
capable of protecting the allocation of The international community needs to
resources and there are dangers all over take steps at HLF 3in Accra and Doha to
the world from the privatisation of public broaden the development agenda to
goods such as drinking water for short-term respond to people’s needs and to seriously
private gain. The new stewards of global advance towards the achievement of
public goods must be a combination of development goals for the poorest.
states, international organizations with Achieving gender equality objectives
governing capacity, global social CSOs, requires both a reallocation of existing
movements and local agents. resources and an important injection of
International development cooperation additional ones. This can only be
must become an increasingly useful tool, accomplished if there is strong political
privileging support for the Right to commitment from all governments and
Development of all of the world’s people. multilateral institutions.
This needs to be based on: (1) broad-based Donors and governments must deliver
participation in the construction of on their gender equality commitments, with
international guidelines; (2) strengthening of specific policies developed and resources
global social organizational networks; (3) allocated for their advancement. Gender
participation of local groups affected by equality needs to be integrated into the
policies; and (4) a positive environment of monitoring and evaluation of the Paris
openness and information production with Declaration and a strong and clear
clearly defined roles. commitment to gender equality made at
Ultimately, the paper argues that a HLF3. This must be part of a more inclusive
change in philosophy is needed away from development paradigm, which also
seeing aid as a relationship between a strengthens transparency, mutual
donor (with resources) that makes decisions accountability, democratic ownership,
and holds others accountable, and a capacity and women’s participation.
receiver (with needs) that carries out the Guidelines and tools are needed for the
decisions made by the donor and is held contribution of new aid modalities to
accountable. Rather, development aid national obligations to gender equality.
should be a cooperation between two sides
that both have needs and resources, that
hold each other accountable and are aware
of the need to join forces to resolve
common problems.

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Conclusions Only when true democratic ownership


is in place can alignment of aid policies with
It is clear that for the Reality of Aid recipient countries policies’ and
Network a lot needs to change to achieve harmonization of efforts by donors be of any
better aid policies that contribute to and real contribution to better development
facilitate effective development in the policies. There is also a mutual dependence
poorest communities. Most profoundly, a between democratic ownership and true
total change of philosophy is required, accountability - which means effective
moving away from the traditional ‘donor- systems of enforcement by which citizens
recipient’, power-based model to one in groups can hold development actors to
which all countries are partners in the account. Transparency and openness are
effort to promote the right to development essential for both.
and protect related global public goods. Aid policies should be managed
Perhaps the key issue here is around according to their effectiveness at
democratic ownership of development achieving respect for human rights - this
policies and participation at all stages of requires effective monitoring and
the policy process - through policy-making, assessment systems, again with the
implementation and assessment - by citizens participation of grassroots organisations.
and their representative bodies. Overall the Part of this process must be a renewed
important role of both parliaments and commitment to achieving gender equality
CSOs as development actors and the objectives through adequate attention and
contribution they can make to more resources.
successful policy-making should be better
recognized and funded to support the
development of capacity.

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The Reality of Aid 2008

Pulling the Strings –


How Donors’ Control of Aid Undermines
Democratic Ownership and Accountability
Elvira Groll
ActionAid UK

Why Accountability is Important ‘downwards’ to citizens. Conversely, donors


are only weakly accountable to southern
“All governments must be governments and citizens. This imbalance in
accountable for fulfilling their part accountability is caused by power relations
of this bargain, both to their people within the aid system, which is dominated
and to each other.” by donors. Donors very often have the
power to alter or stop aid flows as and
- Kofi Annan on international when they wish, and often do. They also
development commitments at seek to have influence through the use of
the UN General Assembly, 21 advice or provision of expertise, often in
March 2005 the form of technical assistance. Donor
influence is not limited to aid, of course,
but is bound up with security, trade,
Improving accountability is fundamental to investment, and other agendas they bring to
development. Accountability leads to better the table.
development outcomes when governments Rectifying this imbalance and making
improve their services and behaviour in donors and the aid system more
response to citizens’ demands. It provides a accountable to the people aid is supposed
vital check on the abuse of power or the to help is critical in improving the
violation of human rights. It involves effectiveness of aid. It will help ensure that
citizens’ organising and mobilising aid priorities are truly owned by recipient
themselves to protect their rights and to countries and not imposed by donors.
demand that powerful actors answer for Improving the accountability of donors
their actions. Therefore, it is an important offers one of the surest routes to tackling
part of a democratic development process, persistent aid problems such as aid volatility
both in regard to the freedoms and rights and unpredictability, as well as ending
inherent in this concept and to the damaging practices such as tying aid to
processes necessary to protect and donor goods and services. Finally, making aid
enhance those freedoms and rights. more accountable also means that donors
Donor governments often disrupt this can become a help rather than a hindrance
relationship by making recipient to citizens’ ongoing struggles to make their
governments concentrate on being states accountable and responsive to them.
accountable ‘upwards’ to donors instead of

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reduction requires that countries are able


What is Accountability? to decide and direct their own paths. Yet
truly democratic ownership does not only
Accountability is about power relations. mean ownership by the southern
It describes the ways in which those government. It must also engage
who have power – organisations, parliaments, civil society including women’s
institutions and individuals – can be held rights groups, and other stakeholders in the
to account by the people affected. It is development process.
an inherently political concept because Donors have often undermined
defining accountability relations is in democratic ownership in a number of ways:
itself an attempt to change power
relations. • Imposing harmful policy
‘conditionalities’
The two key aspects are answerability
– power-holders having to justify their
International aid is often tied to
actions - and enforceability – how poor
recipients’ implementing particular
performance of transgression by the
policy changes, effectively denying
power holders is rectified or sanctions
southern citizens and governments the
enforced. Accountability relationships
right to freely choose the policies best
also involve standard-setting (defining
suited to their economic and social
norms of behaviour against which those
situation. There has been growing
with power should be judged) and
consensus in recent years that the
investigation, which depends on
impact of policy conditions on poor
transparency and openness (to find out
countries has often been negative as
if those norms have been met).
they distort democratic processes,
impose inappropriate policies and
The key questions to ask when thinking
generate high transaction costs. 1 Very
about accountability are:
often conditions are set by donors in a
† Who is accountable? (Who holds
one-size-fits-all manner and without
power?)
considering the specific political and
† For what are they accountable?
economic situation of countries. In
† To whom are they accountable?
spite of both demands and commitments
to decrease conditionalities and the
Accountability is a major pillar of
negative experiences with structural
democratic processes as it allows
adjustment programmes, bilateral
citizens to control the actions of their
donors still tend to harmonize around
governments and other actors. It
IMF and World Bank conditions as they
involves many actors, including
have done in the past.2 It seems to be
parliaments and civil society
handy for donors to align to economic
organisations.
frameworks set out by the Bretton
Woods Institutions as these still have a
reputation of macroeconomic
expertise, and in case of failure can
Undermining Democratic Ownership
divert the attention from bilateral
donors. However, this tactic further
Ownership is widely seen as the
increases the power and influence of
cornerstone of development and is one of
donors on policy decisions; undermining
the five partnership commitments of the
national ownership.
Paris Declaration. Effective poverty

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• Bypassing government systems over aligning aid money to its


development priorities.5
Although the Paris Declaration calls for
an alignment of aid flows to national • Refusing to be transparent and
priorities and budget procedures and accountable for their action
commits donors to report at least 85%
of their aid on budget until 2010, many Aid negotiations often happen behind
donors spend external assistance closed doors between donors and
directly without reporting to the governments without engaging
recipient government. This is due to parliament and civil society in decision-
lack of trust in national institutions as making or monitoring processes. While
well as the attempt to keep as much policy dialogue between government
control as possible over the way aid is officials has intensified due to the
spent. As the “2006 OECD Survey on Poverty Reduction Strategy Papers
Monitoring the Paris Declaration” (PRSP) process, parliamentarians and
emphasises, only four out of 22 donors civil society representatives tend to be
have so far reached this target while six excluded from those discussions.
donors report less than 50% of their aid Recent case studies have shown that
to the recipients’ government.4 This southern government officials are also
makes it extremely difficult for very reluctant to get engaged with civil
recipient countries to track the use of society or other stakeholders on
aid and hold donors accountable. In political issues.6 Proper accountability
Afghanistan, a heavily aid dependent mechanisms for the use of aid on a
country with almost three- quarters of national level are missing in most
total public expenditure provided by southern countries. To respond to this
donors, over 75% of external assistance problem, civil society organisations,
is spent directly by donors, mostly including ActionAid, in countries such
without being reported to the as Ghana, Cambodia and Kenya have
government. Therefore, the Afghan begun to organise forums to examine
government has very limited control aid issues and hold donors and
governments to account.

Box 2: The Impact of Economic Policy Conditionalities

In Malawi the situation of the poor actually deteriorated because of World Bank
economic policy conditions. In 2003 the World Bank proposed a $62 million loan to the
Malawian government to fight a major drought and its effects. However, this loan was
linked to progress on past loans’ conditions on the privatization of public service
sectors in the areas of agriculture, telecommunications and energy even though these
conditions had evidently further impoverished Malawians. Despite strong opposition by
the Malawian parliament, the commercialisation of the public Agricultural Development
and Marketing Corporation (ADMARC) was pushed through by the government. This led
to the closing of 400 rural markets, resulting in job losses for thousands of people and
more hunger and starvation for the Malawian people. An internal World Bank report
before the commercialization of ADMARC had shown that this project would have
negative impacts on the lives of the poor. However, the World Bank did not make the
results of this assessment available to the Malawian parliament or the government. 3

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Weakening the Effectiveness of Aid • Aid flows are often unpredictable and
volatile
Donors have very strong mechanisms to
ensure that their demands are met by Donors fail to disburse committed
recipient countries. However, they are not money on time, making it difficult for
so strong at meeting their own recipients to plan their national
commitments to improve aid along the budgets. In 11 countries covered in the
principles of the Paris Declaration. The 2006 OECD Survey, the predictability of
effectiveness of aid has been seriously aid was less than 50%.9 Problems with
limited by donors’ demands and practices in recipients’ systems contribute to this
a number of ways: problem, but donors must bear the
lions’ share of responsibility. The
• Imposing high transaction and amount of aid often varies each year,
administrative costs sometimes with large fluctuations. Aid
for countries in conflict has been
Multiple donor missions and reporting particularly volatile, often falling in
requirements imply huge transaction times of emergency when support is
costs for recipient governments. They needed most.10 Although donors have
often have to focus energy and committed to improving the
resources on reporting to donors predictability of aid, the amount of aid
rather than using that capacity to flows into the health sector in
pursue their own priorities and report countries such as Mali and Liberia, for
to their own citizens. In spite of example, differs so sharply each year
commitments by donors to decrease that it seriously limits recipients’
the amount of donor missions, joint abilities to plan their budgets.11
donor missions are still the exception
as developing countries still received • Donors drive technical assistance
an average of over 300 missions from programmes
donors in 2005.8 Donors often demand
the completion of their own reporting Recipients’ lead on aid priorities is
forms, typically resulting in the further undermined by the continued
recipient government’s having to write use of donor-driven technical
many different reports each year.

Box 3: First Steps into the Right Direction

In May 2007, Cambodian civil society organised for the first time a “CSO Forum on aid”
where they invited several donors to scrutinize their aid programmes. The results of this
Forum were fed into a newly formed “Cambodia Development Cooperation Forum”, a
government- led body for consultations with donors replacing the traditional
Consultative Groups chaired by the World Bank. However, besides this unique
opportunity, citizens, parliaments and civil society do not have much political space to
hold donors to account as a recent ActionAid case study shows. Cambodian NGOs also
raised concerns about criticising donors too openly as they heavily depend on their
funding. In Cambodia, there are NGO representatives in the donor-government joint
working groups present, however their impact on holding donors accountable has been
questionable particularly due to the lack of clarity about the role of those
representatives as development actors or watchdogs.7

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assistance programmes where projects recipients. ActionAid has set out a


are often established independently of comprehensive agenda for achieving the
recipients’ needs and aid money is necessary reforms at the Accra High Level
spent on foreign consultants, training Forum on aid effectiveness taking place in
and research. Although it has been September 2008 in the report: “Making aid
shown that the effectiveness of this accountable and effective. An ActionAid Ten
type of aid has been very low12, the Point Plan for real aid reform”. 18 The
OECD DAC estimates that technical report argues that significant progress is
assistance still accounts for up to 50% needed if aid is to play an effective role in
of all aid.13 In the OECD Survey, it reducing poverty. Donors must meet existing
emerged as one of “six major priority commitments but also go much further;
areas that need the attention of policy particularly by making aid accountable to
makers right now”.14 Southern the people it is meant to help.
countries highlighted its supply-driven We recommend the following steps to
nature and several countries refused to make aid more accountable and effective:
agree that any donor-provided
technical assistance was aligned to A. Respect real ownership of the
their national priorities.15 development process and end harmful
donor practices
• Aid is still tied to donors’ interests
End economic policy conditions.
The allocation and disbursement of aid
is often linked to donors’ foreign policy The ownership agenda needs to be
or commercial interests, and tied to refocused on true respect for
products or consultancy services from democratic ownership on the part of
the donor country. The tying of aid is both donors and southern governments.
estimated to increase costs by up to Donors need to agree to end all
30%.16 The main beneficiaries of this economic policy conditions and reduce
practice are firms and consultants in the overall burden of conditionality.
donor countries. Already in 2001, the
OECD DAC issued the recommendation Ensure donors report all aid
to untie aid. Although many donors disbursements in full and in the format
committed to untying in general, they required by recipient governments.
still fall short in implementation,
excluding key areas such as food aid Donors need to ensure they take the
and technical assistance from actions required to tackle the
agreements and still relying heavily on administrative, technical and political
their own firms. Germany and Spain, for constraints of reporting their aid to
instance, still tie one third of their aid recipients in full and in the format they
to their own goods and services.17 require to integrate this information
into budgets.

Key Steps Donors Can Take Allocate aid in a fair and transparent
to Improve Accountability way according to need and improve aid
and the Effectiveness of Aid predictability.

There is a clear need for reform to improve Governments should agree on effective
the accountability of donors and transfer and transparent international
the control of aid from donors to mechanisms to improve aid allocation,
ensuring that it goes to those most in

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What is Needed for Aid Policies

need and is not misdirected by donor which government transparency can be


foreign policy objectives. judged. These standards would include:

Ensure technical assistance is truly • Adopting a policy of automatic


demand driven and country led. disclosure of all documents, with a
strictly limited regime of
Donors need to align their technical exceptions.
assistance to recipients’ priorities and
needs. Recipients need to be given the This is consistent with international
choice about how technical assistance best practice in transparency and
funds are used. Donors should ensure recognises that access to
that all TA is properly co-ordinated information about the practices of
among donors. Technical assistance bodies engaged in public service is
should not be used as a form of a fundamental human right.
conditionality.
• Pro-actively disseminating
End the scandal of tied aid.
information in a timely manner, to
Donors need to commit to expanding government and citizens on key
the agreement on untying aid to all aspects of aid, including aid
countries and all modalities including strategies, plans, commitments,
technical assistance and food aid. disbursements, and conditions.
Independently- monitored targets
should be set up for translating this Donors need to recognise that
commitment into practice. genuine transparency involves
making a pro-active effort to put
B. Improve transparency to southern information about aid in the public
governments and citizens domain so that it becomes
accessible to all, including those
Ensure donors adhere to the highest most marginalised and distant from
standards of openness and aid processes.
transparency.19
• Inviting recipient parliament
Donors rarely make sufficient scrutiny.
information available in a format that is
accessible to southern governments If donors were to maintain close
and citizens. There is a presumption of contact with parliaments and keep
non-disclosure of information. Even them informed of ongoing
when information is made available, it is processes, then this would
often found in complex technical encourage parliaments to scrutinise
documents on donor websites and only these processes where they see
in English, making it extremely difficult necessary. Donors could produce
for southern citizens to access. The regular bulletins and organise
conditions attached to aid and the regular briefings for parliaments, as
findings from evaluation reports are requested. They should also write
rarely made public. Greater to parliaments and their
transparency would not only promote committees, outlining annual plans
aid effectiveness, it could also help and offering to make themselves
citizens to monitor their own available for parliamentary scrutiny,
governments and provide a standard by

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should parliamentarians request to donors in relation to aid, and donors


this. make sure they are enforced through
the threat of withholding or reducing
Make impact monitoring, evaluation aid, donors make few (if any) legal
and assessment of aid spent by each commitments to recipients in the way
donor truly independent and they deliver aid. Donors need to sign
participatory. legally binding contracts with recipients
outlining their commitments in these
Southern voices need to be heard in areas including guarantees on aid
every assessment of aid and therefore volumes and aid effectiveness. These
governments and citizens must be aid contracts should be consistent with
included in evaluations. The majority of the aid management plans and other
donors currently monitor and evaluate development strategies developed by
their programmes internally, without recipient governments.
the involvement of independent
experts, and are guided by weak D. Create effective international
procedures for ensuring that findings mechanisms for standard setting and
are acted upon. However, Denmark, the oversight of aid
Netherlands and Sweden have
established independent evaluation Move the aid reform process to more
bodies: these good practice examples representative institutions (such as the
need to be built upon. UN) than the OECD.

C. Create and improve answerability and For an effective agenda of aid reform to
enforcement mechanisms be realised, the limitations of housing
the major international aid
Develop open, transparent mechanisms effectiveness process in a donor
that allow citizens to hold their institution – the OECD – must also be
governments and donors to account for addressed. The OECD is in no
the use of aid. meaningful way accountable to the
southern citizens and countries that aid
The concept of mutual accountability is supposed to help. The political
should be broadened so that ‘country- nature of much of the results of the
level mechanisms’ for assessing progress “2006 OECD Survey on Monitoring the
become multi stakeholder, including Paris Declaration” – where donors
civil society particularly women’s rights exerted pressure throughout the
organisations, parliaments, trade unions survey process to bend the figures to
and other stakeholders. These multi- improve their performance – highlights
stakeholder forums should be open, this weakness.
transparent and regular with real room Handing over control of the
for citizens of southern countries to process to a more representative
hold their governments and donors to institution such as the UN would signal
account. a clear intent to take accountability
seriously. If done in a coordinated
Base aid relationships on legally manner, such as through the
binding aid contracts between donors establishment of a UN aid commissioner
and recipients. (see below) it could also help reduce
some of the complexity of the
Although recipient governments international aid system.
commonly make a raft of commitments

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What is Needed for Aid Policies

In 2007, the UN launched the accountability mechanisms. To support


Development Cooperation Forum (DCF), the enforcement of international aid
whose mandate is to monitor commitments, a UN Aid Commissioner
international development cooperation and an aid ombudsman should be
initiatives such as the Paris Declaration established. These would be responsible
and promote dialogue and action to for reviewing progress in implementing
achieve progress. This forum has the international aid commitments, resolve
potential to develop into a disputes between donors and recipients
representative and open body in which and take action to ensure that donors
aid effectiveness standards can be and recipients live up to the
discussed between donors and commitments they have made.
recipients and standards agreed upon.

Improve international enforcement and


accountability through establishing a
UN Aid Commissioner.

Donors and southern governments


should commit to improve international

Notes
1
ActionAid International. (2005). Real aid: An agenda
8
2006 Survey on Monitoring the Paris Declaration.
for making aid work. p. 38. Retrieved from http:/ p. 55.
/www.actionaid.org.uk/doc_lib/69_1_real_aid.pdf
9
2006 Survey on Monitoring the Paris Declaration.
2
ActionAid International. (2006). What progress? A p. 28.
shadow review of World Bank conditionality. p. 13.
Retrieved from http://www.actionaid.org.uk/
10
Riddell, R.C. (2007). Does foreign aid really work?
doc_lib/what_progress.pdf Oxford: UP. p. 358.

3
ActionAid International Malawi. ( ). Public
11
OECD. (2007). Development co-operation report
hearing on the World Bank Malawi testimony of 2007. p. 55. Retrieved from http://
Collins Magalasi. Retrieved from http:// titania.sourceoecd.org/vl=4497419/cl=12/nw=1/
www.worldbankcampaigneurope.org/IMG/pdf/ rpsv/dac/index.htm
Testimony_Collins_Magalasi.pdf
12
ActionAid International. (2006). Real Aid 2: Making
4
OECD. (2007). Survey on monitoring the Paris technical assistance work, 2006. p.24f. Retrieved
Declaration. p.20. Retrieved from http:// from http://www.actionaid.org.uk/doc_lib/
www.oecd.org/dataoecd/58/28/39112140.pdf real_aid2.pdf

5
ActionAid International Afghanistan. (2007). Gaps
13
OECD. (2005). Development co-operation report
in aid accountability. p. 4. Retrieved from http:// 2005. p113, footnote 3.
www.actionaid.org.uk/doc_lib/english_report.pdf
14
2006 Survey on Monitoring the Paris Declaration.
6
See examples in report by Eurodad. (2008). p. 52.
Turning the Tablet. Aid and accountability under
the Paris framework. p.24-28. Retrieved from
15
2006 Survey on Monitoring the Paris Declaration.
http://www.eurodad.org/uploadedFiles/ p. 23.
Whats_New/Reports/Turning_the_Tables.pdf
16
UNDP. (2005). Human development report. p. 12.
7
ActionAid. (2007). Making aid more effective? An
independent assessment of accountability and
17
Concord, hold the applause! EU governments risk
ownership in the aid system. Cambodia Case Study breaking aid promises. EU Aidwatch Report 2007.
Research, 2007. Retrieved from http:// p. 13.
www.actionaid.org.uk/doc_lib/
cambodia_case_study

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What is Needed for Aid Policies


18
ActionAid International. (2007). Making aid
accountable and effective. An ActionAid ten-point
plan for real aid reform.

19
Also see the recommendations for standards in the
“Charter for International Financial Institutions”
by the Global Transparency Initiative which should
form the basis of a new agreement by donors to
radically improve their transparency and
information dissemination. Retrieved from http://
www.ifitransparency.org/doc/charter_en.pdf.

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The Reality of Aid 2008

Accountability and Managing for Results:


Accountability to Whom?
Who Holds Whom Accountable?
Ngo Sothath
NGO Forum on Cambodia

Introduction Applicability and Limitation


of Mutual Accountability
Each principle of the Paris Declaration is
separately and mutually important to Whether the mutual accountability of the
achieving the effective use of aid to Paris Declaration is a well-defined principle
produce actual results on the ground. remains questionable and there is certainly
Mutual accountability is a significant no provision for a mechanism to make the
mechanism through which donors and accountability principle work in the
partner governments commit to being Declaration itself. We would suggest,
responsible for development results. however, that four basic elements are
However, ‘accountability’ can mean necessary to make accountability work:
many things in different contexts and it is commitment; measurement; enforcement;
important to define it; a key question is and an enabling environment. This article
always ‘accountability to whom?’ For will consider mutual accountability in the
example, the donors themselves are framework of these four elements (see
accountable to their own parliaments and Figure 3).
citizens on the use of their money. On the
other hand, the recipient governments are 1. Commitment to Account
required to be accountable to the donors for Development Results
for the fund and project or program
implementation1. A positive element of the Paris
What can be our understanding of the Declaration was the recognition from
‘mutual accountability’ in aid referred to in donors and developing country
the Paris Declaration? The focus here is not governments of the need to count the
so much on who is accountable to whom. actual results on the ground for
The Declaration calls for both the “donors measuring whether aid achieves its
and partner governments to mutually intended goals.
account for development results.”2 However, it does not go far enough in
Therefore, rather than being accountable identifying specific roles for
to someone, it is understood that the parliaments and CSOs. This has meant
donors and partners are meant to hold each that while it highlights the need to
other accountable for something - in this strengthen the participation of a broad
case, the delivery of aid. range of development partners in

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The Reality of Aid 2008

What is Needed for Aid Policies

Figure 3. Key Elements To Make Accountability Work

formulating, implementing and assessing since ODA comprises only half of


national plans/strategies, the Cambodia’s national budget.
parliaments and CSOs have been largely
disregarded, allowing the government 2. Measurement of Development Results
and donors to avoid public oversight.
In Cambodia, despite the clear The principle of ‘managing for results’
commitment made in the Paris suggests the need for measurements to
Declaration to strengthen the inform result-oriented reporting and
parliamentary role in national assessment of the national plan
development strategies and/or implementation. Due to the commonly
budgets, the Declaration of the Royal low capacity of partner governments, a
Government of Cambodia made only manageable number of impact
more general commitments to indicators are chosen. However,
strengthen the roles of all stakeholders recipient governments generally fail to
in the planning and implementation of develop sufficient input and output
development cooperation programs - (intermediate) indicators to keep track
not quite the national plan and/or the of the progress over time which would
budget 3 . allow them to better manage the likely
Similarly, while the PD commits to the outcomes and impacts. As stated by
provision of timely, transparent and David Booth and Henry Lucas5 (odi:
comprehensive information on aid flow 2002, p23) “final outcome data are
so that partner governments can largely useless for providing the sort of
present comprehensive budget reports quick feedback on PRSP performance
to their legislatures and citizens, the that is most needed for learning and
Cambodia Declaration is all about accountability purposes.”
transparency and accountability of There are 43 indicators to guide
official development assistance only, the monitoring and evaluation of
not the national budget as a whole4. Cambodia’s national plan, around 30 of
This does not quite amount to mutual which are final outcome and impact
accountability on development results, indicators mainly derived from

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The Reality of Aid 2008

What is Needed for Aid Policies

Cambodia’s MDGs.6 These outcomes observed and Royal Government


and impacts are hard to observe or acceptance of CSO inputs into the
measure in the short-term and do not Annual Progress Report has been
adequately reveal the effects of minimal10.
specific policies or implementation. How participatory the national
Many annual measurements are too development plan process is and to
macro in level. For example, the what extent the plan takes the voice of
indicator measuring total annual civil society into account and responds
expenditure as a percentage of GDP to the needs of the poor and
does not paint the picture of whether vulnerable is a level of consideration
the budget is spent correctly and most that the Paris Declaration indicators are
appropriately. The indicators, not able to track and answer.
therefore, leave the government with
insufficient information over the 3. Enforcement of Accountability
intermediate results of its national plan,
to be able to adjust the program and The principle of mutual accountability
plan effectively. implies that the donors and partner
Moreover, of the 43 NSDP countries are accountable for
monitoring and evaluation indicators, development results. However, the key
only sixteen are measured by the data to the accountability mechanism rests
collected through the annual tracking on the issue of who holds who
surveys of the National Institute of accountable, and the declaration shows
Statistics. The other 27 indicators are the limitations of enforceability when
largely dependent on administrative two parties of development monitor
data from relevant line ministries7. each other. While governments tend to
However, due to weak governance in blame donors for their poor co-
most least developed countries, the ordination and using aid to serve their
administrative data systems are poor. In own interests, the donor groups accuse
Cambodia, the public expenditure the governments of corruption and bad
tracking survey in education governance.
demonstrated that the poor For accountability to work and for
administrative data record8 remains a aid to have more of an impact on
major challenge. poverty reduction, the presence and
Despite the adoption of the NSDP acceptance of an independent third
monitoring and evaluation framework, party or parties with a monitoring role
the NSDP claims itself not to preclude is crucial. To complement mutual
the need to undertake participatory accountability and enforce the
approaches for more focused commitments made by the donors and
monitoring and evaluation purposes. partner governments, they should be
New and innovative tools, such as monitored and held accountable by the
citizens’ scorecards rating the recipient citizens and/or their
perception of change and satisfaction representatives.
with the quantity and quality of Two complementary principles are
different public services, are supposed essential for this accountability to
to be employed to enhance work: (1) country ownership and (2)
participatory elements and feed voices democratic ownership.
from the grassroots level into the NSDP Country ownership implies that
monitoring and evaluation9. However, partner countries exercise the
this has practically never been leadership role in developing and
implementing their national

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The Reality of Aid 2008

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development strategies. This is Parliaments


essential in ensuring that the
governments’ primary responsibility is The UNDP report (2003a) suggested that
to its own citizens and not to the the monitoring report of the PRS or
donors. Furthermore, if the recipient national plan should principally be
governments are permanently considered as the report to the
accountable to the donors, then the national audiences, and secondarily to
donors will never exit the country, but the donors and lenders11. Evidenced by
leave it forever aid-dependent. a study of the 28 sub-Saharan Africa
Democratic ownership then means countries involved in the PRS process,
not only that the government is not GTZ (2003) found that monitoring and
beholden to the donor, but that it is controlling the actions of the executive
genuinely accountable to the people. was one of the fundamental functions
In principle, the government (elected of the parliament and was embedded in
by the citizens) is supposed to serve the constitution of the studied
the interest of the country as well as countries 12 .
the people. The citizens are then Pain (2003) suggests that “in a truly
assumed to receive development democratic environment, parliament
services necessary to them and voice should be overall responsible for the
their concerns back to the government monitoring of the PRS.”13 It is
and demand improved services. The particularly important to pay attention
people can hold the government to countries such as Vietnam,
accountable for their policy choices Cambodia, and Yemen where the
and performance either directly, national plans are expected to be
through civil society organizations debated and approved by the
representing their constituency, or parliament. Unfortunately, the study by
through the parliament they elected. GTZ (2003) also found that despite their
Figure 4 represents the framework legitimate role recognized in the
of ownership that sets out the constitution of the studied countries,
required relationships of accountability parliaments rarely exercise effective
among the development stakeholders oversight.
both locally and internationally. Article 121 of Cambodia’s
Genuine accountability requires constitution states that: “Members of
transparent processes, access to the the Royal Government shall be
necessary information, and citizens collectively responsible to the National
empowered to freely exercise their Assembly for the overall policy of the
rights and freedom in society. The Royal Government.”14 However, the
balance of power between the key monitoring and evaluation report
development actors (citizens, CSOs, framework of the National Strategic
parliament, and government) at country Development Plan (Cambodia’s PRS) does
level is important. An effective system not identify for whom the report is
and robust mechanism must be in place prepared and accountable to; rather,
and institutionalized, owned and the document serves as the
exercised by those key actors with government’s report to the annual aid
donors as facilitators or catalysts on a mobilization meeting between the
temporary basis. government and donor community15.
Confirmed by the government’s
annual progress report of the NSDP in

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The Reality of Aid 2008

What is Needed for Aid Policies

Figure 4. Development Framework Towards Democratic Country Ownership

2006, the report is even considered as a Civil Society Organizations


‘State of the Nation’ annual record and
the government’s position paper for the While suggesting the important role of
Cambodia Development Cooperation the parliament as a key user of the
Forum16, which is the Government- PRSP monitoring information, the World
Donor High Level Forum for Bank’s Beyond the Numbers report
development review and aid (2006)17 observed that the parliaments
mobilization. in many PRS countries are generally
This implies that the parliament - unable to effectively exercise their
which enacted the national plan - roles over the executive due to their
either does not formally receive the low capacity and lack of support from
report from the government or is not analytical and research staff.
authorized to hold the government Therefore, civil society groups are seen
accountable for it. The donors are as sources of expertise to assist them.
supposed to facilitate improvements in Independent CSOs such as NGOs,
governance and overcome any lack of media, academia, and research
political will for reform. However, institutes, should be entitled and able
despite their commitment to working to monitor the national plan at the
toward country ownership, the donor country level. It is observed that in
community tends to overlook the some types of monitoring, CSOs can
strengthening of local governance often do better and be more effective
systems. Furthermore, it even disables than the government, especially in
the country’s existing structure by qualitative approaches such as
demanding accountability directly from participatory poverty assessment,
the partner government rather than service-delivery satisfaction surveys,
using existing domestic governance and citizen report cards18.
mechanisms. Together with the commitment to
work towards participatory and

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The Reality of Aid 2008

What is Needed for Aid Policies

CSOs is often raised. However, by


In early 1990s, UNTAC and donors definition, CSOs are “all non-market and
sought to promote the emergence of non-state organizations and structures
Cambodian civil society, usually viewed in which people organize to pursue
as a set of formal organizations that shared objectives and ideals.”20
could mobilize and represent the Therefore, CSOs are representing their
population and hold the government to membership and constituency and they
account. .... to an extent, such NGOs are legitimate because it is the people’s
have been secured a place in the policy rights to mobilize and associate among
process, although their rights to be themselves21.
consulted on legislation and policy are
still to a great extent dependent upon Citizens/Communities
their international backing.
From a human rights perspective,
NGOs have been reluctant to campaign citizens are the right stakeholders to
on political issues, such as extrajudicial be protected under the provision of
execution of political opponents, often law so that their basic needs are met
leaving these to international while the government is the right
counterparts. Where NGOs have bearer that must realize this
become involved in grassroots protest, compulsory obligation. In a democratic
they have been threatened and their society, citizens hold their government
activists arrested. Thus, while to account by voting for their political
government appears content to receive representatives in periodic elections.
technical advice from NGOs, they have In Cambodia, citizens vote for the
resisted allowing NGOs to take a role as Commune Council members and
mobilizers of public opinion. representatives to the National
Assembly. Once elected, it is expected
Source: Caroline Hughes and Tim that the government leaders will
Conway (odi: Jan 2004). Understanding formulate policies, design programs and
pro-poor political change: the policy make decisions in accordance with
process in Cambodia. broad public opinion, or at least based
on the expressed needs of the people.
However, political participation through
transparent processes, strengthening voting in elections provides citizens
the monitoring and evaluation with minimal feedback to and influence
capacities of CSOs is essential for over decision-makers22.
successful independent monitoring of Trasmonte Jr (presentation paper,
the government’s performance against 2004) asserts “people whose lives are
the desired goals of the national plan19. affected by a decision must be part of
This must include the diversity of civil the process of arriving at that
society voices, as recognized in the decision.”23 The actual and potential
WB’s Beyond the Numbers report (2006, service users who are most directly
p88). concerned with the availability and
CSOs intervene to provide space quality of a service should be both
for citizens to participate and hold authorized and encouraged to play a
their government accountable either larger role in monitoring the delivery of
directly by themselves or through their those services24.
representatives – CSOs or the Unfortunately, the World Bank
parliament. The question of Development Report 2001 concludes
representativeness and legitimacy of that “from perspectives of the poor

164
The Reality of Aid 2008

What is Needed for Aid Policies

people worldwide, there is crisis in the donor community has never made
governance. State intuitions…are often any effort to activate it.
neither responsive nor accountable to
the poor, rather the report details the 4. Enabling Environment
arrogance and distain with which poor
people are treated.”25 To enable commitments to be
Concerns are often raised around monitored and enforced, the Paris
challenges to involving communities in Declaration notes the significance of
the monitoring of service delivery or transparency in the use of the
the national plan, such as processes development resources. The donors
and community capacity. However, commit to provide timely, transparent
simple instruments have already been and comprehensive information on aid
developed to facilitate this flow so as to enable partner authorities
communication, for example to present comprehensive budget
participatory poverty assessments, reports to their legislatures and
service-delivery satisfaction surveys, citizens.
and citizen report cards. These simple Access to information is key to
tools help provide a picture of reality monitoring and oversight and
on the ground. transparency is about making the
In Cambodia, Citizen Rating Report necessary information available to and
(CRR) uses systematic collective accessible to all stakeholders, including
feedback from citizens to assess the general public. It is important to
people’s satisfaction with social services note that ‘availability’ does not
and other governance matters and guarantee ‘accessibility’. Since the
demand greater public accountability26. government’s business is public business
Unlike other international experiences - utilizing public resources to produce
with parallel initiatives (such as the public goods and services to serve
report cards of India and the public interests - citizens have the right
Philippines), the Cambodian model CRR to be informed. For example, the
is a localized version, where citizens Cambodian constitution states that “the
themselves generate, package and act National Congress shall enable the
on the CRR results. people to be directly informed on
Cambodia’s constitution also various matters of national interest.”28
provides for an annual public forum Furthermore, it is not enough for
called the ‘National Congress’. This the authorities to make information
should allow and enable the people to available and accessible upon request.
be directly informed on various matters Information must be made available to
of national interest and to raise issues citizens without having to be asked for.
and requests for the State authority to This also means that information should
solve.27 It is supposed to adopt and be made available in an accessible and
submit recommendations to the Senate, understandable format.
the National Assembly and the
government for reflection. The
Congress should be held annually under Recommendations
the chairmanship of the King and at the
convocation of the prime minister. Overall, the Paris Declaration’s principles of
However, this mechanism is not working mutual accountability and managing for
due to governance issues and the poor results require the four components of
functioning of genuine democracy, and commitment, measurement, enforcement

165
The Reality of Aid 2008

What is Needed for Aid Policies


and an enabling environment to make results of their commitments, policy
accountability really work. However, efforts choices, and actions by the citizens
are still needed to implement effective and their representatives, the CSOs and
systems for assessing development results the parliament.
and reinforcing accountability.
3. The government should be primarily
1. Commitment and measurement need accountable to its citizens and
to be operational and realistic at the parliament, rather than the donor
country level. community.

Various global initiatives usually create Donors are assumed to work in


proposed indicators and targets for partnership with the government to
long-term impact measurement, which bring the poor and vulnerable out of
countries generally adopt for their own extreme poverty and to empower the
development purposes and efforts. country to be able to take the
However, final outcome data do not leadership role of their own
provide for quick feedback on PRSP development. In this sense, the donor
performance that would enable community should not demand much
effective monitoring and policy upward accountability from partner
improvements. Therefore, the government, but rather encourage the
monitoring framework of the national government to primarily respect and
plan (PRS) should be more focused on account to its voters.
input and output indicators that allow The success of the donors’ mission
the government to track the should be counted when partner
intermediate results necessary to countries can take leadership over
achieve the desired outcomes and their own development agenda in a
impacts. genuine democratic way where citizens
Participatory approaches should and their representatives are
also be used to better inform the empowered.
monitoring, particularly to understand
the impact of policies on people on the 4. Donors should be facilitators and
ground, including the most architects of the partner countries’
disadvantaged. democratic governance systems

2. Citizens – either directly by The donor community should not try to


themselves and/or through CSOs and reinvent governance systems which
Parliament – must be able to hold the disempower or even disable existing
government and donors to account for local governance structures and leave
development results. the country aid-dependent. Rather,
they should use these mechanisms to
The sense of mutual accountability strengthen accountability to the
should not be limited to the principle citizens. For example, donors should
that the government and donors encourage the convocation of ‘the
account for development results, but National Congress’ foreseen by
the question of who they are Cambodia’s constitution to provide a
accountable to must be addressed. The platform for citizens to hold the
donors and partner government are government to account.
policy designers, decision-makers, and Furthermore, donors are not just
program implementers and, as such, required to work in partnership with
should both be held to account for the the government, but with the

166
The Reality of Aid 2008

What is Needed for Aid Policies


parliament and the CSOs. Donors should 6. The government should be open to
strengthen country governance through participation and public oversight.
a strategy of building the capacity of all
key stakeholders, including NGOs and For them to take democratic leadership
parliaments. over the development process for the
benefit of the people they represent,
5. CSOs should be recognized as the the government should listen to and
government’s key partners in policy take into consideration the people’s
processes voices. The government should be open
to feedback and oversight from the
To enable CSOs to play a fully effective people on their policy choices and
role in monitoring policies and their action so that they can redirect their
implementation, they have to be leadership towards the country’s
recognized as key partners with clear development and poverty reduction.
roles in policy processes. Furthermore, The government should also respect
all processes must be transparent and voters through their representatives –
necessary information needs to be the parliamentarians and CSOs.
made publicly available and accessible
to them.

Notes
1
ActionAid. (2007, June). Making aid accountable and
8
WB. (2005). Cambodia: Public Expenditure Tracking
effective: ActionAid ten-point plan for real aid Survey (PETS) in primary education.
reform. p.8
9
Royal Government of Cambodia (Ministry of
2
OECD. (2005). High level forum: Paris Declaration Planning. (2005). National Strategic Development
on aid effectiveness. p.8 Plan 2006-10. p.94. Phnom Penh

3
The Council for the Development of Cambodia
10
NGO Forum on Cambodia (2006, May). PRSP and
(2006). Declaration by the Royal Government of CSOs’ Participation in Cambodia. A report
Cambodia and development partners on enhancing prepared for the Routable Discussion on NGO/CSO
aid effectiveness. p.5. Phnom Penh. Experiences in PRSP Monitoring and Advocacy held
in Phnom Penh.
4
Ibid.
11
UNDP. (2003a). IDS Discussion Paper 382. Research
5
Booth, D. & Lucas, H. (2002, July). Good practice in on the current state of PRS monitoring systems. In
the development of PRSP indicators and monitoring Lucas, H., et.al., (2004, December). Institute of
systems. Working paper 172: Results of ODI Development Studies. p.9.
research presented in preliminary form for
discussion and critical comment. London.
12
GTZ. (2003). IDS Discussion Paper 382. Research on
the current state of PRS monitoring systems. In
6
Royal Government of Cambodia (Ministry of Lucas, H., et.al., (2004, December). Institute of
Planning. (2005). National strategic development Development Studies. p19
plan 2006-10. Phnom Penh.
13
Pain (2003). IDS Discussion Paper 382. Research on
7
Cambodia: National Strategic Development Plan the current state of PRS monitoring systems. In
(NSDP) 2006-2010. (2006). Formulation, monitoring Lucas, H., et.al., (2004, December). Institute of
and evaluation process. A report prepared for the Development Studies. p19
Forum on National Plans as Poverty Reduction
Strategies in East Asia held from April 4 to 6, 2006
14
Cambodia’s National Assembly. Constitution of the
in Vientiane, LAO PDR. Retrieved March 10, 2008 Kingdom of Cambodia. Retrieved March 5, 2008
From: http://siteresources.worldbank.org/ from http://www.cambodia.gov.kh/unisql1/egov/
INTEASTASIAPACIFIC/Resources/226262- english/organ.constitution.html
1143156545724/Cambodia_brief.pdf

167
The Reality of Aid 2008

What is Needed for Aid Policies


15
Royal Government of Cambodia (Ministry of 23
Trasmonte, Jr. (2004). A presentation paper. In
Planning. (2005). National Strategic Development Commune Council Support Project (2007, June). A
Plan 2006-10. Phnom Penh. training handbook. Citizen rating report.
Promoting good local governance, social
16
Royal Government of Cambodia (Ministry of accountability, and effective social services delivery
Planning. (2007, May). Annual Progress Report in rural Cambodia. p.42. Phnom Penh.
2006 on National Strategic Development Plan 2006-
10, p1. Phnom Penh. 24
Booth, D. & Lucas, H. (2002, July). Good practice in
the development of PRSP indicators and monitoring
17
Bedi, T., et. al., (2006). Beyond the number. World systems. Working paper 172: Results of ODI
Bank. p.86-87 research presented in preliminary form for
.
discussion and critical comment. p. 33. London.
18
Ibid., p.87.
25
World Bank Development Report. (2001). In
19
UNDP (2003). IDS Discussion Paper 382. Research on Commune Council Support Project (2007, June). A
the current state of PRS monitoring systems. In training handbook. Citizen rating report.
Lucas, H., et.al., (2004, December). Institute of Promoting good local governance, social
Development Studies. p. 15. accountability, and effective social services delivery
in rural Cambodia. p.41. Phnom Penh.
20
Advisory Group on Civil Society and Aid
Effectiveness. (2007, June 12). A concept paper on 26
Commune Council Support Project (2007, June). A
civil society and aid effectiveness. p.4. training handbook. Citizen rating report.
Promoting good local governance, social
21
UN. (1948, December). Universal declaration of accountability, and effective social services delivery
human rights. Adopted and proclaimed by General in rural Cambodia. p. 44. Phnom Penh.
Assembly resolution 217 A (III) of 10 December
1948. Retrieved March 9, 2008 from http:// 27
Cambodia’s National Assembly. Constitution of the
www.un.org/Overview/rights.html Kingdom of Cambodia, article 147-149. Retrieved
March 5, 2008 from: http://www.cambodia.gov.kh/
22
Commune Council Support Project (2007, June). A unisql1/egov/english/organ.constitution.html
training handbook. Citizen rating report.
Promoting good local governance, social 28
Ibid.
accountability, and effective social services
delivery in rural Cambodia. p.41. Phnom Penh.

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Managing for Results and Aid Effectiveness


African Forum and Network on Debt and Development (AFRODAD)

Despite aid’s having become a major out the results to be achieved) and annual
contributor to many countries’ state and multi-annual national budget processes
budgets, and a relative increase in aid flow (which set out the means to achieve them).
to Africa, countries remain poor and highly They also need to establish the results-
dependent. Even where countries register oriented reporting and assessment
satisfactory levels of economic growth, this frameworks and to use these to track a
has not been yet able to secure sustainable manageable number of indicators for which
development, reduce dependency and data are cost-effectively available.
eradicate poverty. Income distribution Donors, meanwhile, need to align
presents a serious challenge as the gap country programming and resources with
between rich and poor both internationally national development strategies and to rely
and within African countries has been as much as possible on the partner country
growing. performance assessment frameworks. They
One of the key principles put forward should also harmonize their efforts in line
to achieve more effective aid is managing with these national frameworks and work
for results. The Paris Declaration states that with partner countries in a participatory
“managing for results means managing and approach to strengthen country capacities
implementing aid in a way that focuses on and demand for results-based management
the desired results and uses information to Within this perspective, the five
improve decision-making.” This is based on principles of the Paris Declaration are
the recognition that it is not sufficient to complementary with each other for the
allocate money to aid projects or achievement of the results in an effective
programmes; the money must be effective in manner. In other words, to achieve the
achieving the goals it is mandated to goals and results that aid is set for, it is
achieve. necessary to create a common vision about
A managing for results approach the mission, goals, results, indicators and
involves: assessment tools, promote ownership of
a) defining the results to be achieved national development processes, align
b) setting up indicators to measure resources to the countries’ priorities and
results and outcomes systems, harmonise donors’ procedures and
c) defining result-oriented assessment promote mutual accountability.
frameworks
d) using the outcomes of the
assessment to improve aid delivery Links Between National Development
Strategies and Budgetary Processes
In concrete terms, recipient countries
need to improve links between national Studies on African countries reveal that
development strategies (which should set governments are taking actions to link

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The Reality of Aid 2008

What is Needed for Aid Policies


national development strategies to annual term. Cameroon is the only country that is
and multi-annual budget processes. The still in the process of finalizing its MTEF.
national development strategies are The State Budget indicates the source,
presented in the form of medium or long amount of resources and their distribution
term plans namely the long term Visions, for the implementation of development
the Poverty Reduction Strategies, the objectives within a year. The MTEF is the
Government Five-Year Plans, the Sectoral source of information in the formulation of
Strategic Plans and the Annual Plans. the State Budget and it is updated every
Through the PRSP processes, countries year to adjust to changes that may occur
define objectives, activities, strategies and over time. All countries under review
expected results/outcomes for the period mentioned that there is an effort to link
under consideration. Pillars or clusters are development priorities with the state
defined to facilitate the grouping of actions budget.
to be undertaken for the achievement of
certain objectives and results. The MDGs • Challenge of Participation
are included in the PRSP exercise through
linking long term goals of the MDGs with The poverty reduction strategies have
medium term goals of PRSP which in turn the common feature of calling for
are linked to annual targets. For monitoring inclusive participation in their
purposes the PRSPs are linked to matrixes formulation. Nevertheless,
of indicators to facilitate the assessment participation, particularly at the
and evaluation of the outcomes. community level, is still not very well
After the planning exercise, organised. Furthermore, the budgeting
government officials engage in a budgeting exercise is not participatory at all. Only
process with the view to identifying government officials from central,
sources of income and allocating resources provincial and district levels are
for different activities as defined in the involved. Members of parliament do not
planning process. Two budgeting tools are generally participate in the processes.
used, namely: Medium Term Expenditure Whilst the first generation of PRSPs
Frameworks (MTEF) and the State Budgets had a particularly low degree of
(SB). participation, the second generation is
The MTEF is a fundamental planning characterized by the relatively
tool for the construction of plans and increased and wider participation of
macroeconomic frameworks for the short- government officials, civil society
and long-term, in which expected organisations, the private sector, and
resources and expenditure as well as their the media. It is hoped that with the
sources are indicated. Its main objective is decentralisation process underway in
to indicate the amount of financial different countries, PRSP processes will
resources needed to implement activities have greater participation and
during a medium term (three years) to integration of priorities arising from the
respond to the policies defined within the district level.
government five-year plan and PRSP. On the
other hand, the MTEF ensures budgetary
• Challenge of Allocating Budgets
discipline so as to maintain budget
equilibrium and make budget deficits According to Priorities
sustainable.
All countries mentioned the MTEF as an The extent to which priorities defined
important tool that they use in the in the national strategies are translated
budgeting process and for forecasting in appropriate resource allocation in
revenues and expenditure in the medium terms of their weight in the overall

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budget remains a challenge. For dominant parties: donors and governments.
example, in Mozambique agriculture is They both want to see good governance,
defined as a priority area because the macroeconomic stability and service
majority of poor people live in rural delivery, as well as the timely disbursement
areas and their survival depends on of resources for their intended objectives.
agriculture. However, the share of During the formulation of PRSPs and
resources in the MTEF and SB do not annual plans, countries under review
correspond to such prioritization, with produced matrices of indicators and tools
the bulk of resources channeled to of assessment to monitor progress towards
education, health and infrastructure. the achievement of the stated results. The
This creates a dilemma, as these areas studies indicate that these matrices were
are also critical to poverty reduction. used to monitor the implementation of
In this situation, the Mozambican development strategies underway.
government should seek to mobilize Countries under consideration also
additional internal and external indicate the existence of Statistical
resources to enlarge the portion of Divisions, Bureau of Statistics or Statistic
funds to all agreed development priority National Institutions charged with the
areas. responsibility of producing information
Donors have a role to play in raising needed for decision making.
their contribution of aid to countries
with similar dilemmas as Mozambique • Challenge of Lack of Capacity
within the ODA commitments. The Word
Bank and the International Monetary The success of any assessment and
Fund should revisit their conditionalities reporting frameworks resides in the
on macroeconomic targets to allow capacity to plan, set results and
countries to make a choice on several indicators and define a reliable system
alternatives for inflation targets, with for data collection, monitoring and
the view of accelerating development evaluation. A key challenge is the simple
outcomes. This would allow donors to lack of human and/or financial capacity
provide more resources and enable to adequately undertake the necessary
African countries to increase the size tasks. Particularly at district level, there
of their budgets, and hence, enlarge is a lack of capacity to adequately
the
. proportion of resources allocated identify appropriate results and their
to priority sectors. respective indicators or to define and
use monitoring tools
There is also an urgent need to
Results-Oriented Reporting strengthen the capacity of national
and Assessment Frameworks statistics bodies to collect, analyse and
disseminate information for public use.
In different countries the performance Special attention should be given to
assessment is undertaken through the financial management systems,
Performance Assessment Framework (PAF), a monitoring systems, public sector
tool designed by development partners and reform and legislation. Some countries,
governments to monitor progress in aid including Mozambique, have put in
recipient countries, based on commitments place computerized systems at central
of both donors and aid recipient countries. and provincial levels for financial
The results can be processes, outputs or management. The challenge is to
outcomes. ensure that conditions (electricity,
Assessment indicators are generally computers and skilled people) are
defined to respond to the concerns of the

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created to expand coverage to the with corruption at varying degrees. This


district level. could be a deterrent factor for donors’
willingness to use national performance
• Challenge of Lack of Coordination evaluation frameworks. In this regard,
corruption has to be tackled properly
Furthermore, monitoring and evaluation to ensure that donors place a high
is not always understood in the same degree of trust in the national systems
way by different government officials at and that citizens feel that the
the central, provincial and district management of public good is in reliable
levels. It was also indicated that there hands.
is lack of coordination amongst Cameroon has shown a leading role
different ministries regarding planning in fighting corruption by denouncing
and monitoring which leads to minimum and applying corrective measures to
or no creation of synergies and does the violators, even if they are high-
not allow for an integrated approach in level government officials.
data handling and its use for decision-
making purposes. • Challenge of Inclusive Monitoring
There is also a need to properly
define results, goals and indicators to Furthermore, it is essential that the
undertake a coherent assessment evaluations do not rely simply on the
exercise. views of external consultants or policy-
makers. In some countries governments
• Challenge of Evaluating Impact and donors have established
Independent Monitoring Groups to
Whilst acknowledging that at initial monitor and evaluate progress in aid
stages the results can mean processes, relationships. Cameroon foresees the
in the medium and long run they should creation of a unit to fulfill this task.
be products and impact. CSOs Nevertheless, CSOs and the people
particularly think that there is most affected by aid policies must be
generally a need to refine the actively involved in assessment and
indicators to better include the monitoring exercises. In many
evaluation of the impact. This is countries, CSOs are building the
essential since it cannot be enough for capacity of their members and that of
aid to be evaluated simply against communities to monitor and evaluate
whether it is spent in the way that was some key areas of PRSP implementation.
expected. Whilst it is important that The Mozambican Debt Group and the
aid planned for school building is used G20 (a national civil society platform for
for school building, it is even more poverty reduction) are both perfect
important that this school building examples of this effort.
leads to improved access to education. CSOs are also calling for the
inclusion of different stakeholders -
based on professional competence - in
• Challenge of Fighting Corruption
the public resources management
bodies. At the process level, to
Good governance is also an important encourage better outcomes, numerous
aspect to consider when looking at CSOs are calling for the level of
performance assessment. African participation, particularly by civil
countries have to show leadership in society, in monitoring and evaluation
dealing with corruption because all
countries under review have a problem

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processes to be used as an indicator in by the government. However, this


itself. privatization may not be desirable for
For other stakeholders, including the partner country as it could lead to
CSOs, to carry out their monitoring massive unemployment and poverty
role, there must be full and open among the displaced workers due to
access to information from both lack of absorptive capacity in other
governments and donors. This will areas.
enable them to make analyses and This practice is clearly against the
undertake evidence-based advocacy. end result of reducing the number of
people living in poverty and must be
• Challenge of Using Assessments seen as contrary to the intended
direction of the Paris Declaration.
to Inform Policy

• Challenge of Using Coherent Indicators


It is essential that there be a process
of using results from the assessment
exercise to introduce changes The Performance Assessment Framework
whenever necessary. Otherwise, it is a joint assessment tool for both
would just become an intellectual government and donors. The use of this
exercise with no impact on countries’ tool is encouraged to all donors
development. channeling their resources to the state
budget. However, donors also use their
own assessment frameworks for the
Linking Resources to Results evaluation of progress on stand alone
programmes and projects either
The Paris Declaration principles encourage individual or collectively. For the
donor countries to link their resources to evaluation of the World Bank Country
results and use national assessment Assistance Strategies specific projects,
performance frameworks. In the countries for example, the Bank includes other
under review, there was an effort from indicators that respond to its own
donor countries to link their resources to interest.
results. This was done by supporting the In Mozambique, for example, there
state budget that is aligned to the results is a concern regarding lack of
defined by partner countries through their correlation between PRSP matrix
poverty reduction strategies. This can also indicators with those from the new
be confirmed by donors’ country assistance Country Partnership Strategy (CPS).
strategies which are shifting towards a
result orientation. • Challenge of On-going Project Aid
However, sometimes their results differ
slightly from that of partner countries Efforts to develop effective results-
because they push for their own interests. based aid strategies are impeded by the
continued proliferation of project-
• Challenge of On-going Conditionalities based funding, usually requiring the use
of separate cycles and use of individual
Donors continue to use conditionalities and/or collective performance
as results to be achieved by partner assessment missions to evaluate
countries. For example, when the progress regarding their interest.
World Bank imposes the privatization of Parallel implementation units are often
certain companies within a time frame, found across a range of sectors to
this becomes a result to be achieved implement stand-alone projects.

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It is difficult to measure the extent • Whenever possible, use countries’
to which resources channelled from assessment frameworks for result-
donors to specific projects respond to oriented monitoring and evaluation and
national priorities. Additionally, there avoid parallel evaluation systems
are donors who do not declare their
• Contribute to countries’ efforts at
medium-term financial commitments.
This leads to lack of accuracy in the strengthening their capacity to
formulation of countries’ Medium-Term formulate result-oriented planning and
Expenditure Frameworks. the corresponding systems for
monitoring and evaluation
• Accept and support the notions of
Conclusions and Recommendations South-South cooperation and provide
resources for South-South technical
There has been progress in Africa at laying assistance to meet the human
the foundations to shift from input- to resources capacity in African countries.
result-oriented programming, putting in • Harmonise assessment indicators with
place matrix indicators and assessment those of the government PRSP vs CPS
performance tools to monitor the (Country Partnership Strategy)
implementation of development plans,
• Support statistical bodies either
formulating medium-term expenditure
frameworks, starting to align resources to financial or technically
national development priorities, and • Pay salaries for African government
accepting the use of national assessment employees as part of Budget support
systems for resources channelled to the rather than fencing it out.
state budget. • Harmonise monitoring and reporting
However, despite this effort, there are procedures and undertake joint
some major challenges to the successful evaluation missions, while strengthening
implementation of a managing for results government procedures and assessment
agenda that would seriously contribute to frameworks
achieving effective development. These
• Make information available to civil
challenges are addressed in the following
recommendations society organisations, the private
sector and other interested parties
Donors should: • Provide technical assistance and
support government capacity-building
• Accelerate the process of aligning efforts based on national priorities.
programmes and resources to
countries’ development priorities and Partner country governments should:
strategies, which should also contain
an aid exit strategy. • Ensure that the formulation of
• Provide information on their financial development strategic planning is
contribution to allow countries to plan undertaken in the best participatory
for MTEF and the annual budget way possible - within this stage, there
should be ample dialogue regarding
• Channel more resources to the state
development objectives, strategies,
budget to allow governments to align indicators and evaluation tools and
resources to development strategies mechanisms.
and priorities oriented to results

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What is Needed for Aid Policies

• Ensure that statistical bodies are • Advocate good governance from


operational and data is used for governments and donors and apply the
decision- making. principle of good governance in the
• Refine result-oriented indicators to sector
include qualitative outcomes • Advocate the establishment of an
• Improve the linkage between national institutionalised and inclusive dialogue
development strategies and annual and platform for public resources
multi-annual budget processes in terms management
of priority areas and weight in the • Build the capacity of communities to
overall budget participate in planning, monitoring and
• Increase internal resources to reduce evaluation exercises for result-oriented
aid dependency and improve the outcomes
ownership of development processes • Disseminate information on the Paris
• Create a dialogue platform for public Declaration
resource allocation and management • Challenge governments to re-think the
• Formulate and implement reliable public present development model and to
resources management systems at all discuss the real causes of why aid is not
levels yet effective, thus failing to achieve its
ultimate goal. Questions should include:
• Improve and effectively use result-
• Why are countries trapped in the
oriented assessment and reporting vicious cycle of aid dependency?
frameworks • Are the present development
• Strengthen the capacity of statistical strategies geared towards
bodies and use data for decision-making sustainable development, poverty
• Promote the culture of monitoring and eradication and aid independence?
evaluation at all levels • Is it possible to eradicate poverty?
If yes, why are countries limiting
• Engage in good governance as defined
themselves to producing and
in this document implementing poverty- reduction
• Increase efforts at tackling corruption strategies?
• Go beyond the present development
paradigm by defining policies and Donors and recipient countries should
strategies that truly tackle the root actively encourage, facilitate and fund the
causes of poverty. central role of CSOs in the development
agenda. The main roles played by CSOs as
Civil society should: development actors, as well as the
conditions necessary for their
effectiveness, must be recognized in the
• Participate in the definition of result-
action plans for aid effectiveness.
oriented indicators and assessment
frameworks
• Strengthen their capacity and
participate actively in assessment
exercises within the context of joint
reviews

175
The Reality of Aid 2008

National Democratic Appropriation


in Latin America and the Caribbean
Mauricio Gómez Lacayo

Country Ownership - the need to “continue strengthening and


The LAC Perspective bettering our governability, plans and
budgets, in order to make them transparent
Some of the richest processes of national and results-oriented, now that we believe
and regional dialogue and negotiation in that proposed changes to development aid
preparation for the 2nd High Level Forum are the best way to advance better aid
(HLF) on aid effectiveness in Paris - where effectiveness, reduce poverty and promote
the Paris Declaration (PD) was agreed - were sustainable development in our countries.”
in the Latin America and Caribbean region At the same time they stressed the
(LAC). importance of ownership and national
LAC countries responded seriously to leadership of the development aid
the 1st HLF in Rome in 2003 where it was effectiveness process.
clear that the recipient countries should The forum and the document that came
appropriate their own development out of this event were an important step for
initiatives1 to break old patterns of the LAC countries present because they
cooperation that were resistant to change. arrived at the 2nd HLF in Paris better
Since it would be necessary to strengthen prepared, united and determined to raise
the recipient countries’ voices and manage the voice of partner recipient countries
to promote and diffuse their best practices, and the topic of national democratic
they started an interesting preparation and ownerships. They also launched a webpage
exchange process to better position for partner recipient countries2 to facilitate
themselves in the face of the Harmonization virtual communication between recipient
and Alignment (H&A) process. countries. In addition to putting the
Preparatory meetings offered spaces to documents from the forum online, it
find shared positions and reach consensus included case studies and best practices.
between recipient countries before facing In that same year, there was a LAC
joint forums on aid effectiveness with donor preparatory meeting in Tegucigalpa,
countries and international organisations. Honduras under the auspices of the Inter-
The LAC country governments emphatically American Development Bank (IDB), with the
supported the participation of Civil Society goal of a wide and representative discussion
Organizations (CSOs) as necessary for the for regional preparation for the 2nd HLF that
process towards the 2nd HLF. would be held in Paris at the beginning of
Fourteen partner countries met in 2005.
Managua, Nicaragua in October, 2004 and Unfortunately, the OECD delegated
produced the Joint Declaration of Partner regional banks as the hemispheric forum
Countries of the OECD, which recognized coordinators, without assuring that they

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What is Needed for Aid Policies


had the necessary personnel, knowledge, reduction within the framework of the
capacity, trajectory or broad-based completion of the Objetivos de Desarrollo
experience in H&A. Recipient countries did del Milenio (ODMs) (Millenium Development
not have control or voice in the Objectives).5
preparation of the event and the IDB chose In spite of having put on the table,
who to invite, the agenda, the presenters, insisted, and repeatedly expressed in
the times and forums for participation. documents from distinct recipient country
They also controlled the themes of the preparatory processes, especially by LAC
work groups and assured the edition and countries, the importance of CSO
conclusion of the reports and notes from participation in aid effectiveness processes,
the event. the PD did not include this topic to the
The IDB invited government necessary extent.
representatives to this meeting, but no The goals and indicators in the
CSOs or members of parliament, with the appendix III of the PD6 also do not take into
exception of regional countries that chose account the measurement of ownership
to invite national CSOs. This affected and leadership by residents or CSOs.
national and CSO initiatives in the Additionally, they do not discuss how to
promotion of democratic ownership and has guarantee political, economic and social
inhibited, on occasion, truly consultative rights in connection with the social well
processes with a grassroots perspective and being of the majority populations that have
CSO participation within the recipient historically been excluded from
countries. development.
Although LAC CSOs participated in the
assemblies and working groups of the II HLF,
The Paris Declaration as did some members of parliament from
different political parties in the region,
Unfortunately, when the LAC countries their comments were not included in the
arrived in Paris they realized that despite final declaration, given that, as previously
having filled important positions as members mentioned, the forum format and the prior
of the Working Party on Aid effectiveness methodological preparation of the
of the OECD3, and the Joint Venture on declaration document did not allow enough
Monitoring the Paris Declaration4 the space to discuss topics that were not
documents for the discussion groups had previously agreed upon.
already been significantly advanced and One could conclude that the CSOs
there was limited space for partner were invited to provide the rubber stamp of
recipient countries to amend them. approval but without a voice in the process.
Despite the concerns of the LAC Consequently, in international forums they
partner countries with respect to the are called to exercise ownership without
inclusion of the CSOs in the process democratic participation, which is equally
towards the Paris Declaration, the OECD applicable at the country and regional levels
asserted that development aid effectiveness where they work, given that at the national
is based on an intergovernmental framework level the same donors reproduce the same
between donors and recipient countries. practice and sometimes even recipient
The 2nd HLF was held within this vision countries are complicit when they
and produced the PD, which is a encourage consultations that are not
declarative instrument with important participative and do not include a
central principles such as how to improve grassroots perspective, and later try to
aid effectiveness, but does not sufficiently validate their work with a participation
consider civilian voices individually or process that is neither real nor effective.
collectively and does not focus on poverty

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What is Needed for Aid Policies

Towards Accra knowledge or information about H&A in aid


effectiveness participated, whilst neither
In spite of its deficiencies, the PD should be CSOs nor members of parliament were
recognized as a welcome step as part of an invited. Some countries that had included
on-going process. It represented a members of CSOs and the parliament in
substantial advance from the 1st HLF held in their national H&A processes brought
Rome in 2003, where donors, recipient national CSO representatives as guests.
governments, and multilateral organisations Also in Managua, in October 2007 there
met only to hear cooperation’s best was a LAC regional forum about CSO
practices. The result of that forum was participation in development aid
merely a declaration of best intentions7 that effectiveness. The goal of this event was to
lacked teeth to ensure its applicability. sustain a meeting between recipient
In the follow-up and monitoring of the governments, international partners and
PD, the LAC region held a preparatory forum CSOs to discuss how to better insert the
in August 2007 of the seven8 partner latter into the harmonization and alignment
recipient countries that signed the processes of international cooperation.
Declaration in Managua.9 This served as a This was one of a series of sub-regional
regional preparation and consensus-building events held across the world to prepare
process for the regional follow-up and clear positions for the 3rd HLF, in Accra,
monitoring of the PD in Santa Cruz de la Ghana.
Sierra, Bolivia. In turn, this regional meeting was
Out of the Managua meeting emerged preceded by national meetings in Bolivia
the ‘Common Position Document of the First and Nicaragua and later in Honduras, that
Meeting of the Associated Latin American served to raise consciousness about CSO
and Caribbean Countries of the DAC of the participation in national H&A processes and
OECD, signers of the Paris Declaration: to form national positions for the LAC
Taking the Initiative. As in previous regional forum. Preparation for
declarations, the LAC countries again participation was also facilitated by the
recognized the importance of CSOs in circulation of a base document providing
effective international cooperation CSOs with the necessary information on
development processes. They not only harmonization, alignment and aid
recognized the role of CSOs, but also made effectiveness.
recommendations to strengthen their There was some discussion space
participation and insert them as partners in between the CSO and the governments and
the development process. donors during this process and lots of time
Unfortunately, in the Regional Forum of dedicated to an exclusive discussion
Santa Cruz de la Sierra held in October between regional CSOs that facilitated the
2006, the same inconveniences emerged as dialogue and negotiation of common
in the preparatory meeting for the 2nd HLF positions on the PD. One of the most
in Tegucigalpa. Again the IDB took the lead important achievements in the preparation
role and proceeded to elaborate and process was the opening of an analysis,
translate their own report, negating again dialogue, and negotiation space starting
the voices of the recipient countries. The from a redefinition of the PD concepts and
partner recipient countries’ desire to base how they are applicable to the CSOs.
it on the Managua Common Position
Document was not taken on board and • Ownership: From the CSO perspective,
discussion in the work groups and open ownership is defined as organizations’
sessions of this Forum was notably sterile. contributing to the strengthening of
Representatives of bilateral and local, sectoral and national
multilateral donors who did not have development processes, achieving voice

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What is Needed for Aid Policies

and developing capacity in the that the government assumes the leadership
promotion of participative processes of this process, but the participation of
for sustainable, grassroots development non-governmental and civil society
and consensus policy implementation organizations has been weak and
that benefits the majority. fragmented because the proposed
participation mechanisms have been neither
• Alignment: In the case of CSOs, systematic nor stable, with an unequal
alignment could be translated as how participation of [official bodies]…. [and] a
to support policies, plans and lack of information about the process.10”
strategies considering that in many On the positive side, the recent
cases this could mean promoting action creation of the Advisory Group11 in the
lines that do not necessarily coincide OECD CAD opens space for dialogue around
with the government. how to insert CSOs in the evaluation
process of the Paris Declaration before the
• Harmonization: Harmonization, for 3rd HLF. The Advisory Group (AG) has at
CSOs, means that they are willing to least introduced a paragraph in the Accra
work together among themselves and Agreement for Action (AAA) that recognizes
with official donors in order to reduce the consultative work done up until now,
the transaction costs and be able to and sees civil society as a development
implement their resources more actor with full rights and as a part of the
efficiently, effectively, and with greater architecture of development aid.
impact on the most needy. However, one of the principal
objectives of this process, from the GA
• Results-Based Management: Similarly to perspective, is to gather and systematize
governments, it is important that CSOs CSO best practices to be officially
can work in a coordinated manner to presented in Ottawa and later in Accra. This
be able to measure if the resources for brings us to deduce that even though there
development are effectively playing a are opportunities and good will from the
role in the reduction of poverty and GA, the space for the participation of the
affecting economic growth. CSOs in the 3rd HLF is still limited.
There is therefore a strong risk that
• Mutual accountability: On this the participating organizations may feel that
principle, which has been seen as a their objectives are not being met, which
two-way process between governments could create a sense of frustration. Accra
and donors, there should be will have to be evaluated on whether it
consideration of the participation and allows both partner recipient country
important role of CSOs in re-enforcing governments to raise their voices and true
the democratic and national aid participation by recipient country civil
effectiveness processes, making sure society organizations for improved official
that the donors fulfil their national- development aid effectiveness.
level commitments and that the
government demonstrates results to
the beneficiaries. This is one of the Conclusions and Recommendations:
most fundamental points to consider in Promoting the Participation of CSOs
the insertion of civil society in all of
the dimensions of the H&A process. It is clear that the role of the general
population and the CSOs in the county
The CSOs concluded that: “We have ownership process is essential and should
participated in different Harmonization and be articulated with the government and
Alignment forums and we see it as positive state institutions, and coordinated with

179
The Reality of Aid 2008

What is Needed for Aid Policies


local authorities and participation spaces. reduction through sustainable and
Forced, top-down processes that do not equitable economic development.
count on the ownership and approval of • furthermore, democratic ownership
the population cannot have the necessary improves the stability and sustainability
support to be effective and may run the of development efforts, since all the
risk of being modified with any changes in stakeholders, including CSOs,
political leadership. parliaments and governments jointly
Although the experiences of the guarantee the process.
different LAC processes and in preparing
• international partners, as key actors in
for the High Level Fora on aid effectiveness
have left great richness that can serve as the process, should promote the
examples for other regions, they also reveal representative and participative
that there are still great challenges to approach to democratic national
achieve national democratic ownership ownership.
where CSOs can have enough influence to • CSOs must be effectively recognized as
change the way that development development actors by national
cooperation is run. governments, donors and multilateral
Despite the creation of an Advisory institutions and brought into the policy-
Group for the Aid effectiveness Working making processes
Group of the OECD-CAD, and a presentation • revision of the Paris Consensus should
space in the III HLF in Accra for best include reference to the participation
practices, it is still not clear what more will of CSOs and organized communities - as
be achieved apart from a parallel process well as legislative assemblies - as a
that results in a paragraph of recognition in fundamental aspect of the
the Accra Forum; the 3rd HLF does not plan implementation of the principles,
to produce a new declaration. objectives, goals and indicators.
• the presence of social organizations
• all parties involved in international
and CSOs in world summits and fora
cooperation must start by recognizing enriches discussions
that there are efficiency, effectiveness
• all methodologies and processes must
and impact problems with current aid
policies and that they must positively be fully open and transparent so that
promote changes and transformation. CSOs can engage fully and raise their
Analysis of the Paris Declaration should voices to promote clear and relevant
not be limited to issues of aid ideas
management. There should be a critical • recipient governments should lead the
evaluation of all of the content and process, however, this leadership must
aims of development policies. be supported by parliaments,
• recipient and donor governments congresses or legislative assemblies
should place the promotion of rights responding to existing participative
and tackling of poverty at the center processes both centrally and locally
of their actions if they really want to • constituents must be strengthened in
see democratic ownership in Latin their right to organize and use their
America and the Caribbean countries political, economic and social rights
• bottom-up processes with a grassroots through participation, and, at the same
perspective are fundamental in relation time, be sovereign guardians over the
to the respect and promotion of use of power by the authorities
political, economic and social rights • there should be balance of power
with the clear goal of poverty between the different authorities,

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What is Needed for Aid Policies

particularly between the legislative institutions, culture and practice,


branch and the executive branch and without external pressure that may
between levels of government, so that distort.
local needs are effectively tackled • more training is needed amongst the
• democratic ownership should be free development partners around
from the imposition of international harmonization and alignment
prescriptions, hindrances or conditions • development partners must support
bilaterally or by multilateral financial capacity- building in recipient
organizations, which ignore the countries to relieve them of their
realities and requirements of the local dependence on aid and to strengthen
population their ability to set their own
• the agreements regarding policies and intellectual, technological and
plans with state institutions and civil procedural direction free from
society must be a basis for dialogue and distortion by donors
negotiation with the cooperation • Working together with CSOs is
community and must prevail over any essential, but without losing sight of
other agreement. the autonomy of the actors and the
• donors should align their policies with logic of their action. Organizational and
those agreed through democratic civil society actions in development aid
processes in the recipient country in should not be governmentalized.
accordance with their actors,

Notes
1
As seen in paragraph 9: “We urge associated 7
The Rome Declaration on Harmonization was
countries to design, in agreement with donors, adopted February 25th, 2003 with the support of
national, balanced action plans that include clear the Monterrey Consensus. Retrieved from http://
proposals as a basis for follow-up in order to www1.worldbank.org/harmonization/romehlf/
balance the development aid...” Documents/languages/ESRome_Declaration.pdf

2
Retrieved from http:// 8
Bolivia, Guatemala, Honduras, Nicaragua, Peru,
www.partnercountries.net/2004/ Dominican Republic9 This meeting also included the
participation of representatives from the General
3
The Working Party on Aid effectiveness is under Secretary of the Central American Integration
the Development Aid Committee of the OECD. System (SICA) and the Caribbean States Association
(AEC), who met in Managua August 30, 2006 to
4
In the PD, this group became the monitor of the prepare a common position in relationship to the
implementation of Apendix II of the declaration, in PD agreements.
charge of the monitoring and advancement phases.
10
A statement from civil society organizations at the
5
Retrieved from http://www.un.org/spanish/ 5th Cooperation Coordination Forum held in
millenniumgoals and http://www.un.org/ October, 2006.
millenniumgoals/
11
The Grupo Asesor (Advisory Group) is a
6
The appendix III of the Declaración de París multilateral group with 12 members: three
includes 12 indicators that measure the representatives from partner countries, donors,
effectiveness of the development aid in three CSOs from developed countries and CSOs from
phases, the first in 2005 to establish a baseline, developing countries. The Grupo de Trabajo sobre
and the other two in 2007 and 2009. These polls la Eficacia de la Ayuda (Working Group on Aid
are intended as sensors of the advances and Effectivenes) established this group and it will be
challenges of the process started by the Paris functioning at least until the III HLF in Accra in
Declaration and evaluate these advances in the 2008.
middle term so that in the III Foro de Alto Nivel
there can be another round of evaluation.

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The Reality of Aid 2008

International Development Cooperation:


A New Global Public Good
Rubén Fernández
President – Corporación Región1
Coordinator of the Working Group on International Cooperation– Alop2
Translation: Suzanna Collerd
Medellín, March, 2008

The increasingly globalized world has seen struggle against globalization as a whole. As
international borders broken down by new Amartya Sen puts it, “this is not about
forms of communication and the flow of throwing out global economic relationships,
economic capital. However, cultures, but rather achieving a more just distribution
populations, political ideas, and social of the immense benefits of globalization.”5
movements are also involved in and International Development Cooperation
affected by the construction of a new is one of the global relationships that must
globalised map wherein lives and conflicts be rethought with the lens of greater global
unfold. Debates around international justice. This cooperation, in its many
relations and aid are affected by this expressions, is a dynamic that was hatched
globalization of ideas and cultures. in “another world” that no longer exists. We
This article will accept a distinction come together from Latin America, as social
made by the Brazilian Renato Ortiz. He movements, world citizens, governments and
says, “I prefer to use the term all kinds of actors touched by cooperation,
“globalization” when I refer to the to make International Development
economy and technology… I reserve the Cooperation compatible with a just
term “mundialización” [worldization] for mundialización.
the specific domain of culture.”3 In this This text looks at how Development Aid
context, it is important to understand that in the context of ‘mundializacion’ has
“the ‘mundialización’ of culture… become a lever (and sometimes a club!) that
corresponds to a real, transforming nation states use to promote their foreign
process in contemporary societies.” 4 policies. It proposes that a reconstruction
A good part of, or even all, of the grounds and principles for action -
contemporary processes are marked by such as redefining the roles of distinct
this characteristic of our present world, actors - is not only a legitimate but also an
provoking different ethical or political indispensable task. Its thesis is that all
positions in response. Many CSOs keep a Development Cooperation (official and
distance from the dominant expressions of private) should be considered a new “global
mundialización and globalization because public good” used to resolve global
we understand them as, in essence, problems and preserve other global public
unjust; but this does not mean that we goods.
accept the arguments of those who

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Public Goods Furthermore, there are cultural


constructions - immaterial goods - that also
Among the resources available to humans belong to all humans as a group and not just
for the development of their activities and this generation. They range from the
realisation of their goals, there are many wisdom of indigenous peoples of the
that have the special nature of not Mexican Lacandona Jungle to literature and
belonging to anyone in particular, but cinema and from languages to the Universal
rather to all. Sometimes, these resources Declaration of Human Rights. However,
are as concrete and vital as air and International Development Cooperation has
sometimes they are equally important, but an interest in, and has acted upon in
immaterial, goods such as the shared diverse, sometimes contradictory ways, a
wisdom and knowledge of a society or group of public goods that should catch our
culture. eye.
According to the Italian philosopher Personal freedom is consecrated in the
Norberto Bobbio, “‘public’ means two constitutions of almost all countries and
things: it is the opposite of ‘private’… or it gives a foundation to the Universal
is the counterpart of ‘secret’, where it Declaration of Human Rights (“All human
gains the meaning of belonging, such as the beings are born free and equal in dignity
‘public thing’, the ‘State’.”6 The and rights.”) It is not a stretch of the truth
philosopher Nora Rabotnikof speaks of three to say that when one human being’s
meanings of public: “1) what is of common freedom, anywhere in the world, is
interest and utility …vs. that which refers to threatened, everyone’s freedom is at risk.
individual interest and utility; 2) what is We can value development itself as an
visible and happens during the light of instrument in the expansion of human
day…vs that which is secret, reserved, freedoms: “The instrumental role of
hidden; and 3) what is of common use, freedom is the form that it contributes to
accessible to everyone and therefore the spreading of different rights and
open…vs that which is closed, and opportunities in order to guarantee
unavailable to others.”7 freedom for all, and, therefore, to promote
These goods have unfolded normally in development.”8 Today, however, many
local spheres and, in the best of cases, on cooperation funds go to projects or
the national level as well. But recently, a organizations that fail to promote forms of
new kind of public good has been freedom or that even generate more
recognised that is considered as belonging dependence than autonomy. A classic
to all of humanity or even as pertaining to example is a project that included the
the world-system, including all of the mandatory use of refrigerators produced in
lifeforms therein. This notion has emerged a European country that required an outlet
thanks to a better understanding of the with 220v; after their purchase, they were
deep interrelationships between different of no use in the developing region where
parts of the world that bear no correlation outlets are all 100v.
to the arbitrary divisions and borders that Biological diversity is another good
separate countries. We now know that that, if not adequately cared for, will
resources such as the Amazon Jungle, the negatively affect the entire planet, giving
polar glaciers, the River Ganges, the coral humanity fewer options for survival. The
reefs, the Gulf Stream, the atmosphere and ruthless, massive destruction of the
all the many ecosystems that regulate biodiversity of the Amazon jungle is not just
critical variables such as global a problem solely of the lumber industry or
temperature, rain seasons or the availability Brazilian settlers. The enormous substitution
of fresh water must be guarded like of tropical jungles with coca plantations
treasure. and the aggressive eradication methods that

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damage the environment are not problems As well as global public goods, there are
for Andean governments alone. Each human also global public problems that need
being has an interest in the preservation of addressing. Old problems such as poverty
this diversity and International Development and inequality,11 discrimination against
Cooperation has a clear responsibility here. women and environmental irresponsibility
Cultural diversity is also a public good are now developing new understandings. In
seriously threatened by the dominant many regions of the world, development
expressions of globalization. In a recent models are inadequate and unjust both
text, Amartya Sen pointed out that, “The because they do not resolve the problems
insistence, even implicitly, on a singular of poverty and because the production of
human identity, without choice, does not goods and services damages the
only diminish each of us, but also makes the environment.
whole world more explosive. …the principal
hope for harmony in our tormented world
resides in the plurality of our intersecting Responsibility for public goods
identities.”9
Democracy is another public good with The above mentioned public goods are
enormous value to humanity. With all of its closely interconnected. To take care of one
imaginable peculiarities and versions, of them - if it is appropriately done - is to
imperfections and broken promises, take care of all of them, and contrarily,
democracy is still the political option that carelessness with one is negligence of the
best allows us to surpass tyranny and whole. In this context, care for global
establish a sovereign state where power is public goods is clearly an issue of survival
delegated. Democracy, as an institutional for the human species, nothing more than
environment, is where human rights can an intelligent attitude of self-preservation.
best become a reality.10 Out of habit, this This can even be a cooperative attitude,
good has been delegated to political parties based on an understanding of co-
and states when the responsibility of caring responsibility for our common future. The
for and deepening democracy should Brazilian thinker Boff, says it well: “There is
belong to each citizen (where it already an urgency of a new civil ethos that permits
exists) and to all of humanity (where it does us to make the qualitative jump to more
not and there is some form of dictatorship). cooperative forms of coexistence.” (Boff,
International Development Cooperation has 2002. 26)
been contradictory: historically they have A new way of understanding the
given decisive support to NGOs in the current globalised challenges facing
Southern Cone for the struggle against humanity is provided by the “Right to
dictatorships based on the doctrine of Development” as set out in the United
National Security, but are also present in Nations declaration of 1986, which:
Africa, Asia and Latin America, pressing “Recognizing that development is a
governments to adopt policies to reduce comprehensive economic, social, cultural
the state, which undermines fragile third and political process, which aims at the
world democracies. constant improvement of the well-being of
Of course, the absence of peace, that the entire population… [and] Considering
great public good, threatens the existence that under the provisions of the Universal
of all other goods. We can find experiences Declaration of Human Rights everyone is
of genuine cooperation that encourage entitled to a social and international order
political agreements between armed groups in which the rights and freedoms set forth
at war, but there are also bitter in that Declaration can be fully realized…
experiences of cooperation that Proclaims…[that] the right to development
exacerbate conflicts. is an inalienable human right by virtue of

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which every human person and all peoples global understanding. There are also key
are entitled to participate in, contribute issues around the relationships between the
to, and enjoy economic, social, cultural and places that enjoy an abundance of
political development, in which all human resources and wealth and who have
rights and fundamental freedoms can be enormous responsibility in the production
fully realized.” of solutions to global problems and the
However, in terms of the practical poorest, disregarded masses of the globe.
development of this cooperative approach The United Nations (given its weakness
and who is ultimately responsible for the and dependency on governments) is not
protection of global public goods, the capable of assuming the responsibility for
international scene is ambiguous and there these resources, and any one nation, as
are as many reasons for skepticism as powerful as it may be, is even less so. Of
optimism. Today, international institutions course, there is also the opposite tendency
have been severely weakened by unilateral to try to privatize any of the mentioned
policies that seem like something from the public goods. Some are already talking
past. Furthermore, at nation-state level, about buying the drinking water in Chile to
their legitimacy and capacity to govern is sell in Japan and there have been several
being eroded on multiple fronts.12 cases of laboratories from the North
Since a public good does not belong to patenting medicinal plants that have been
anyone in particular, it can be taken care of used by local indigenous communities for
by an individual or a state. There is no hundreds of years. This tendency must be
problem as long as responsibility is recognized as an absurd suicide in the long-
delegated carefully and transparently. The term for purely short-term economic gain.
municipal budget of Latin American cities is We must all, including International
a clear example. Local authorities Cooperation, if it wants to be genuine,
administer these funds and make decisions focus energies on distancing ourselves from
about their destination in accordance with this tendency. The new “stewards”13 of
previously established rules; any citizen global public goods must be a combination
should be able to know how and where the of states, international organizations with
money is spent. Another type of case is the governing capacity, global social CSOs,
owner who has a river flowing through his movements and local agents.
land. Society delegates this person to take We will continue to be subject to
care of this resource not only for his own “international treaties” (that are basically
benefit, but also for the benefit of the between states). However, the most
greater community; this person cannot do interesting trend is that civil society
whatever he wants with this water. organizations, CSOs and social movements of
In accordance with a new all types and from all places are active
“mundializada” vision of reality, there is a participants in the construction,
risk that problems, which could previously implementation, and evaluation of these
be resolved with local efforts and external agreements. The 2006 Reality of Aid report
support, can rapidly become threats that pointed out that “Civil Society Organizations
transcend borders. Whilst in many cases (CSOs) have a crucial role to play in aid
national states may continue to take care of effectiveness especially in the area of
the most significant goods, there will almost advocacy and monitoring. In most recipient
certainly be more and more serious countries to date there has been little or
disputes. no collaboration between governments and
There is therefore a difficult but CSOs in trying to make aid effective under
indispensable tension to maintain: make the Paris Declaration. At the same time,
clear the responsibilities of nation-states, there is a general recognition that the Paris
and, at the same time, locate them in a Declaration is a crucial component of a

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larger aid effectiveness agenda that could experience of solidarity between small
engage civil society actors in a more direct populations in the north and south (that
manner.”14 have common ancestors or family members,
for example), or between parishes that
collect money and then send it directly to a
International Development Cooperation priest in a forgotten town; this is Private
Development Aid.
It is clear that IDC can stubbornly continue Furthermore, the importance of large
to be tied to an anachronistic view of the private agents that work collectively
world and be seen as a weapon for (international CSOs, foundations,
achieving foreign policy objectives, or it associations) will gradually increase. There
can become an increasingly useful tool, has already been substantial strengthening
privileging support for the “Right to of these private sector or individual funds
Development” of all of the world’s people. dedicated to the solution of public
Brian Tomlinson of the Council for problems. The most notable example is the
International Co-operation (CCIC) argues Bill and Melinda Gates Foundations, which
that: “In a rights framework… human rights donate more to treat AIDS in Africa than any
obligations of status should establish the government. At the same time, many other
principles and standards for monitoring foundations donate or finance cultural
donor progress in the aid system [Reality of preservation or local development research
Aid, 2004]. The 2000 UNDP Human projects in both the global North and
Development Report affirmed this approach South.
by calling for a “rights ethos for aid” as the Clearly the administrators of this public
basis for empowering people in the fight good will continue to be nation-states for a
against poverty [UNDP, 2000, pp. 12, 119]. while, but gradually, large private agents
Understanding the effectiveness of aid in that work collectively (international NGOs,
international cooperation cannot therefore foundations, associations) will appear on the
be separated from this ‘rights ethos’.”15 scene. This is not the problem. The
The proposal of this paper is to criticism is that the programs and projects
understand IDC as a public good, dedicated and their respective resources should be
to contributing to the resolution of global awarded while keeping in mind the following
problems located in different parts of the criteria:
planet and to strengthening the care of
global public goods. Clearly the • Broad-based participation in the
administrators of this public good will construction of international
continue to be predominantly nation- guidelines
states. The largest resources have tended • Strengthening of global social
to come from northern states that allocate organizational networks that
a small portion of their budgets to “Official participate in the different
Development Aid.” moments of these policies.
Nevertheless, there is a long history of • Participation of local groups
private organizations with different ‘affected by’ or ‘benefiting from’
religious, cultural and political standpoints policies.
that raise money in different ways and • A positive environment of openness
donate to groups in need. These resources and information production, with
are not comparable in quantity to those clear roles for the carrying out and
sent by states, but are key, especially in follow-up of programs and projects.
impoverished regions. There is an immense

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Conclusions be treated as money held in trust for


people in poverty” and the promotion of
Recently, at “The International Forum on donor short-term foreign policy interests so
Civil Society and Aid Effectiveness: A multi- common over the past three decades in the
stakeholder dialogue,”16 a group of Latin- allocation of aid resources must give way to
American civil society organizations and a mandate for ODA that focuses exclusively
particularly Alop proposed an understanding on poverty reduction and the rights of poor
of Official Development Aid, and by and vulnerable people. In the UN global
extension, all development aid, as conferences of the 1990s and in aid reforms
“International Development Cooperation”. promoted by some donors, the international
Rather than being a relationship community was beginning to grasp the
between a donor (with resources) that importance of aid as a catalytic resource
makes decisions and holds others for poverty reduction.
accountable, and a receiver (with needs) From this point of view, the Paris
that carries out the decisions made by the Declaration is the start of a conversation
donor and is held accountable, about the efficiency of aid and its
development aid should be a cooperation mechanisms to make sure that resources
between two sides that both have needs are correctly directed and produce the
and resources, that hold each other best possible results. This conversation must
accountable and are aware of the need to go further to talk about the concept of
join forces to resolve common problems.17 “International Development Cooperation” as
Reality of Aid in its 2006 report a public good and a means of protecting
advanced the proposition that “aid should and reinforcing the Right to Development.

Notes
1
Corporación Region is local NGO based at Medellín, 9
Sen, A. (2007). Identity and violence: The illusion of
focused on the promotion of human rights, the destiny.
deepening of democracy and the achieving of peace.
Retrieved from http://www.region.org.co/ 10
Remember the historical discovery, “It is not
surprising that in the history of the world there
2
Asociación Latinoamericana de Organizaciones de has never been a famine in a democracy.“ (Sen, A.
Promoción al Desarrollo, Alop. (Latin American 2000, Development as freedom.)
Association of Organizations of Development
promotion. Retrieved from http:// 11
Clearly “poverty and inequality are closely related,
www.alop.or.cr/ but still different and one does not subsume the
other.” (Sen, 2005, On concepts and measures of
3
Ortiz, R. (1998). Otro territorio. Ensayos sobre el poverty). In Latin America, for example, there are
mundo contemporáneo. Santa Fe de Bogotá: situations of extreme poverty, but our principle
Convenio Andrés Bello. p.xxiv problem is inequality.

4
Ibid, p.xx 12
“In discussions about social movements in Latin
America we say the ‘nation is still not complete’.
5
Sen, A. (2007). Identity and violence: The illusion of This phrase is directly related to another:
destiny. citizenship does not yet exist.” (Ortiz. Otro
Territorio, 1998, p. 121)
6
Bobbio, N. (2001). El futuro de la democracia;
México: Fondo de Cultura Económica 13
This concept was constructed in a workshop called
“Care-giving policies and their implications in our
7
Rabotnikof, N. (1993, Noviembre). Lo público y sus work,” with partners from the Fundación Avina,
problemas: notas para una reconsideración; Revista Colombia, in the An apoima population, March 11-
Internacional de Filosofía Política. No. 2. Madrid. 12, 2008.
p.75 a 98.
14
Retrieved from http://realityofaid.org/downloads/
8
Sen, A. (2000). Development as freedom. primer_on_aid_effectiveness.pdf

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What is Needed for Aid Policies


15
Tomlinson, B. (2006). Determinants of civil society
and aid effectiveness: A CCIC discussion paper.
Retrieved from http://www.ccic.ca/e/docs/

16
Organized by the Canadian Council for
International Co-operation (CCIC) in Ottowa,
February 2-6, 2008.

17
See the Draft Final Report. The International
Forum on Civil Society and Aid Effectiveness: A
multi-stakeholder dialogue. Hosted by the Advisory
Group on Civil Society and Aid Effectiveness.
Gatineau, Québec, Canada, February 3 – 6, 2008.
Retrieved from http://www.ccic.ca/e/002/
aid.shtml

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Aid Effectiveness and Gender Equality


Cecilia Alemany (AWID), Fernanda Hopenhaym (AWID)
and Nerea Craviotto (WIDE)1

Introduction Northern and Southern governments in the


last decades should be the framework for
Today the majority of the people living in the advancement of those issues. They have
poverty are women and girls, so it is committed to it and they should be held
essential to analyse the implications of the accountable for that. It is unacceptable
Aid Effectiveness agenda for the that these key development goals are
advancement of gender equality and presented as ‘positive conditionalities’ or
women’s rights and to set out how future be manipulated as ‘impositions by donors’
policy-making must take this into account. when they are commitments made by
It is crucial to understand the political governments from North and South, as a
context of development policies and the result of strong mobilisation and pressure by
challenges posed by the implementation of diverse social movements.
the Paris Declaration.
This article argues that the Aid
Effectiveness agenda, with the adoption of Development and Aid Effectiveness:
the Paris Declaration as one of its key Political Context, Key Discussions
instruments, has contributed to the and Main Challenges
process of narrowing the development
agenda, started by the Millennium The United Nations (UN) has been one of
Declaration in 2000. It has become highly the main venues for discussions and
technical, severely undermining the international commitments on development
achievement of key development goals such cooperation. The UN Financing for
as gender equality, human rights and Development Conference was held in
environmental sustainability. Looking at the Monterrey in 2002, and key deliberations on
advancements for the attainment of MDGs, development have taken place on occasions
it is clear that there are serious shortfalls such as the UN Conference on Trade and
and that the strategies being used are not Development (UNCTAD). These processes
being effective. have provided a common platform for
While the Paris Declaration is not a commitments in different areas of financing
binding agreement, agreements such as the for development. Consensus was built
International Covenant on Economic, Social around the need for mobilizing domestic
and Cultural Rights and the Convention on and international resources, the
the Elimination of All Forms of Discrimination conception of trade as an engine for
against Women (CEDAW), create legal development, the relevance of financial and
obligations for governments regarding issues technical cooperation, and the importance
of development, human rights and gender of addressing external debt issues as well as
equality. It then becomes clear that other systemic matters.
international agreements endorsed by

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At Monterrey in 2002, donors and Development Conference in Doha


developing countries expressed their (December, 2008) and a reinforced UNCTAD.
concern regarding the scarcity of resources Today there are strong concerns among
available to achieve the internationally CSOs and some Southern governments that
agreed development goals2. Within this the agreements coming from the 3rd High
context, the international community Level Forum (HLF3) in Accra (September,
committed to reach the target of 0.7% of 2008), where the Paris Declaration
their Gross National Income (GNI) allocated implementation will be assessed, will
for Official Development Aid (ODA). There determine the results emerging from the
was a call for a holistic approach to the Doha conference on development
interconnected challenges of financing for cooperation deliberations (as several
development and the aid modalities were officials from the European Commission have
revised, concluding that there should be an expressed). This further enhances the
improvement in aid quality as well as in aid power imbalance between donor and
quantity. developing countries, as the agenda put
In 2005, the Paris Declaration on Aid forward by the donor community through
Effectiveness was adopted, with the aim to the PD has become the core framework for
reduce poverty and support the discussion on international development
achievement of the Millennium Development cooperation.
Goals (MDGs) by reforming the delivery and
management of aid. The Paris Declaration
can be seen as the aid community’s Development and Aid Effectiveness:
response to Monterrey, in an effort to A Gender Equality Perspective
improve aid quality. It is based on principles
that strive to redefine the “recipient- There is an urgent need for the revision of
donor” relationship and its implementation current aid trends. If the international
is monitored in the context of the community will not take steps in Accra and
Organization for Economic Development Doha to broaden the development agenda
Cooperation (OECD). Unfortunately, to respond to people’s needs and to
however, in the aid effectiveness agenda, seriously advance towards the achievement
the key issues of human rights and gender of development goals, political leaders will
equality have been defined as ‘cross-cutting lose another opportunity to tackle the
issues’, resulting in a loss of their centrality current systemic crises that are increasing
to any effort towards development. poverty and inequalities around the world,
Furthermore, it has proven to be only a particularly for women and girls.
technical mechanism agreed upon in a Subsequently there is a risk that MDGs
space created by donors via the OECD. This will be redefined and further extended for
contrasts with the Monterrey Consensus, five or even ten more years.3 According to
which was agreed upon in a more inclusive the data currently available, the efforts to
and democratic space, signed at the highest achieve the MDGs so far have not been
level by Heads of State. This is why civil enough. As stated in the Global Monitoring
society organisations (CSOs) have been Report 2008, there are serious shortfalls
calling for the main cooperation particularly in the areas of nutrition,
deliberations and decision-making of education, health and sanitation. According
international frameworks on development to to this report “on current trends, the
take place back in the UN system. This human development MDGs are unlikely to be
would entail giving more centrality to a met”4. Likewise, the Basic Capabilities Index
strengthened ECOSOC, the UN Development from the 2007 Social Watch Report5 shows
Cooperation Forum, the Financing for that if these trends continue, no region in

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the world (except Europe and North situation, as pointed out by Roberto Bissio
America) will achieve basic social in his chapter, with the risk that the
development goals before 2035, and Sub- implementation of the pprinciples of the PD
Saharan Africa will only reach that point in can work against the right to development
2108. and other human rights, as well as erode
The lack of financial resources “is national democratic processes.
serious business and a critical hurdle for Nevertheless, since developing
women’s rights and gender equality in the governments often see the Aid Effectiveness
world, and therefore for achieving the agenda, including the road towards the
MDG36. It has been estimated that the HLF3, as a donor-driven process where
financing gap for implementing MDG3 strong asymmetries prevail, there is still a
specific goals and gender mainstreaming risk that any advancement on gender
activities in low-income countries ranges equality and human rights within this
from $8.6 billion (2006) to $23.8 billion process will be seen as an agenda put
(2015). To realize MDG3 by 2015 would forward by donors, consequently rejected
require external resources dedicated to by developing countries. This would
financing gender equality-promoting undermine the campaigns and actions
interventions in the range of $25-28 billion developed by CSOs, other development
annually in the low-income countries”.7 actors and particularly women’s rights
These figures reveal that achieving gender organisations from developing countries that
equality objectives requires both a have been advocating for the defense of
reallocation of existing resources and an human rights and gender equality at the
important injection of additional ones. This national level, and the full implementation
can only be accomplished if there is strong by all governments, from both North and
political commitment from all governments South, of international agreements on
and multilateral institutions. gender equality and human rights.
Furthermore, an AWID concept paper 8
stated in 2006, “the MDGs came to
dominate the development agenda and a The Implementation
dollar-driven, technical approach to their of the Paris Declaration, Gender Equality
implementation supplanted human- and Women’s Rights
centered, rights-based approaches to
development. Women’s rights and gender It is essential to understand the implications
equality objectives have become of the implementation of the PD,
marginalized and peripheral in the acknowledging that the HLF3 will have
development sector generally “. From the significant influence in other fora. It is time
women’s rights perspective, the Millennium to push for the inclusion of a gender
Declaration and the Paris Declaration are equality perspective, demanding that
regressive frameworks for guiding governments uphold more inclusive
development aid, compared to the development paradigms, still maintaining a
achievements of the UN conferences of the critical vision with regards to the serious
nineties or existing human rights implications of this process.
agreements such as CEDAW. Women’s rights organisations share the
There is a clear risk that if gender critical views put forward by other civil
equality and women’s rights are not explicit society actors with regard implementation
priorities at the HLF3 they will be excluded of the PD, but have also developed a
from the agenda. There is a need for their particular analysis from a gender-equality
inclusion as key development cornerstones, perspective.
developing specific policies for their Regarding a general overview of the
advancement. Human rights are in a similar process, in addition to some of the

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concerns mentioned above, there is Gender Equality Concerns Related


agreement among many civil society to the Paris Declaration Principles
organisations on the following concerns:
• Ownership. Through the
• The Paris Declaration is a highly implementation of this principle,
technical agenda that focuses significant relevance is given to national
strongly on the procedures for aid development plans designed by
management and delivery and not Southern countries. This is particularly
on the impact aid is having on problematic when gender equality and
achieving development goals. women’s rights are not a major priority
• The lack of significant for governments and when national
participation of CSOs in the development plans are not built in a
process is a major concern, and it participative way, gathering proposals
was particularly evident around from a broad range of stakeholders,
donor-partner negotiations of the including women’s organisations. In this
principles of the Paris Declaration. sense, women’s organizations strongly
• Inclusive and effective support the position that ownership
participation requires clear should be understood as democratic
processes, but also investments in ownership, ensuring that the process of
institutional development and developing planning includes a vast
capacity-building for CSOs to be array of stakeholders (such as
able to engage in all processes parliaments, civil society organizations,
related to aid and development. etc) and not only national governments.
• There are concerns around
governance issues within the Aid • Alignment. The main strategy used by
Effectiveness agenda, as donors still donors to align with partner countries’
impose policy conditionalities which national development plans is budget
undermine democratic ownership support. Major challenges arise from
and the Right to Development.9 this practice, as gender equality is
• There is insufficient transparency hardly ever present in national budgets.
and sharing of information related As a result of higher allocation of ODA
to allocation of resources at the resources in national budgets, there is
country level. the risk that less funding be directly
• The International Financial available for women’s rights
Institutions (IFIs) have a major role organisations and other civil society
in these processes, particularly groups, resulting in a significant cut of
when looking at the monitoring and the resources they need to continue
evaluation systems that rely heavily contributing and playing key
on World Bank evaluation development roles.10
mechanisms and data.
• With regards to the specific • Harmonisation. The harmonisation
concerns from a gender equality principle encourages donors to make
perspective, the limited their activities transparent and
participation of women’s rights collectively effective, to reduce
organisations is especially relevant, transactional costs and overlapping.
due to their understanding of the The main concern regarding this is that
challenges women face, and the least progressive donor practices
because of their involvement in prevail, neglecting the prioritization and
development processes on the proper allocation of resources to key
ground. development goals such as gender

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equality. This would lead to an even Strategies. These aid modalities are not
more evident reduction of the gender neutral or socially friendly, and they
development agenda. need to be given a clear gender
dimension.13
• Managing for Development Results. There is a general concern about the
When analysing this principle, there is a ‘new aid modalities’ related to the missing
question on how development results recognition of the specific constraints and
get measured. It is necessary to move needs of women. The consultation
away from only looking at technical processes used so far to develop PRSPs, a
procedures or quick fixes to complex key tool within the Aid Effectiveness
development problems. International agenda, are problematic as the inputs given
Human Rights agreements that by different stakeholders are often not
represent binding obligations for all included in the final documents, with IFIs
governments should be used as having a concluding say. Gender-specific
frameworks to assess development analyses and impact assessments of PRSPs
results.11 The lack of gender equality are of major importance and must be
indicators and sex-disaggregated data - consistently integrated throughout the
which are key components to assess entire process.
the impact of development practices Current budget allocations for gender
on the ground - in the evaluation of equality and the empowerment of women
the implementation of the PD is also of are not sufficient. In addition, general
particular concern. budget support is still linked to donor
conditionalities making the predictability of
• Mutual Accountability. Accountability aid flows uncertain. This causes strong
must be truly demanded both from unease as long-term actions are needed, in
donors and partner countries. particular when working on gender equality
Northern and Southern governments and the empowerment of women. Concerns
should live up to the international have also been expressed regarding the
commitments on gender equality and incoherence between the principles of the
women’s empowerment that they have PD and other policies and agreements
endorsed, such as the CEDAW12 and the related to aid for trade, free trade
Beijing Platform for Action. Civil society agreements and financial flows, among
organisations have a key role to play in others.
holding governments accountable to It is of great concern that the
these agreements. underlying social and power relations that
lead to unequal access of women and girls
Gender Equality Concerns to services in sectors such as health and
Related to the New Aid Modalities education still do not get addressed. So far
sector wide approaches focus on
Through its implementation, the PD is investments in women and girls that are too
consolidating a new architecture of narrow.14 Furthermore, gender implications
development financing which is supposed to of sectors such as urban infrastructure and
achieve more effective international water have not been considered through
development assistance, together with a SWAps, as they focus generally on areas that
set of so called “new” aid modalities - most are traditionally seen as being linked to
of which have been in place for years now. “women’s issues” (education, health and
These include: Poverty Reduction Strategy agriculture). 15
Papers (PRSPs), General Budget Support Basket funding and joint assistance
(GBS), a Sector Wide Approach (SWAp), strategies require decision-making and the
Basket Funding and Joint Assistance reaching of agreements on various issues

193
The Reality of Aid 2008

What is Needed for Aid Policies

and levels between several donors and protocol on women’s rights in


partners. Here, it is still a challenge to have Africa. Donors and developing
women participating at the highest level of countries’ governments should
decision making in governments and the provide support to local groups,
multi-tiered management structure. Gender movements and women’s rights
expertise is currently often lacking in these organizations that will hold their
processes, including in the definition of governments accountable to these
monitoring and evaluation measures. commitments, acting as advocates
and strengthening democratic
governance on the ground.
Recommendations on How to Integrate • Donors and developing countries’
Gender Equality in the Aid Effectiveness governments should ensure
Agenda adequate financial resources to
accomplish those commitments. As
It can be seen from the above that the Paris recommended by the Expert Group
Declaration formulation and implementation on Financing for Gender Equality
has not given the necessary relevance to from the UN Commission on the
women’s rights issues and to the Status of Women, the share of ODA
advancement of gender equality. As stated for women’s empowerment and
by women’s rights advocates in different gender equality should be scaled-
spaces, the progress in those arenas is up to reach 10% by 2010 and 20% by
determinant for the achievement of key 2015 of all ODA.17
development goals. Therefore, integrating • Donors should reach the
those perspectives into the Aid commitment of allocating 0.7% of
Effectiveness agenda becomes particularly their GNI for ODA, and include an
important. indicator for this as part of the
In January 2008, a consultation with Paris Declaration monitoring system.
women’s organisations and networks was
held in Ottawa to discuss issues related to 2. Strengthening transparency and mutual
the Aid Effectiveness agenda. As a result, accountability efforts, democratic
the participants agreed on a set of ownership and women’s participation
recommendations on how to integrate the in the aid effectiveness agenda
gender equality perspective in the
implementation of the Paris Declaration. The • Donor and developing countries’
proposals presented hereby are based on governments must promote the
those recommendations, as well as in other presence of women’s organizations
suggestions put forward by AWID and WIDE16. in different decision-making
processes, including the OECD
1. Donors and governments should deliver Development Assistance Committee.
on their gender equality commitments. • Donor and developing countries’
governments must prioritize and
• Donors and developing countries’ financially support the
governments should deliver on their strengthening of national public
commitments to key agreements on awareness about the PD and the
women’s rights and development, centrality of gender equality,
such as the Beijing Platform for recognizing the role women’s rights
Action (BPfA), the Convention on organizations can play at local and
the Elimination of All Forms of national levels in reaching out and
Discrimination against Women reflecting the voices of the public.
(CEDAW), the MDGs and the Maputo

194
The Reality of Aid 2008

What is Needed for Aid Policies

• All relevant actors must commit to organizations to fulfil their roles in


the highest standards of openness development processes (planning,
and transparency: implementing, monitoring and
• Donors and international evaluation). The Accra Agenda for
financial institutions should Action (AAA)18 must recognize CSOs
deliver timely and meaningful in general and women’s rights
information, adopt a policy of organizations in particular, as
automatic and full disclosure of autonomous development actors in
relevant information, and their own right19.
submit to the norms and
direction-setting of the United 3. Integrate gender equality in the
Nations (UN). monitoring and evaluation of the Paris
• Developing countries’ Declaration and in capacity
governments must work with development efforts
elected representatives, the
public and CSOs to set out • The OECD-DAC Working Party on Aid
transparent policies on how Effectiveness must promote a multi-
aid is to be sourced, spent, stakeholder review of the
monitored and accounted for. monitoring system for the PD that
• Diverse CSOs must also includes the engagement of CSOs
exercise accountability and and women’s rights organizations.
continuously draw their • The operational development
legitimacy from their strategies established by developing
constituencies. countries by 201020, related work
• Donor and developing countries’ plans and the monitoring system of
governments should strengthen the PD implementation must fully
national women’s machineries to integrate gender equality targets
support and monitor line ministries, and indicators. Existing and new
other government bodies and ODA management assessment tools
parliaments in influencing national must reflect a results-based
development planning and budget component, with a special focus on
allocations for gender equality and how gender equality and women’s
women’s rights. empowerment targets are being
• Instead of the current Country met in donor and developing
Policy and Institutional Assessment countries.
(CPIA) mechanism, a technical • The acquisition and improvement of
working group should be formed to sex-disaggregated data must
produce a more appropriate set of become predictable, regular and
measures integrating gender consistent to support planning,
equality in assessing public finance negotiation, monitoring, and
management and procurement in evaluation of development and aid
developing countries. The group policies.
proposals must be discussed among • The use of baselines, input and
all stakeholders, consistent with output performance indicators of
the principle of democratic gender impacts in budgetary
ownership. reporting must be promoted;
• Donor and developing countries’ gender targets, inputs and outputs
governments must commit to in national budgets and ODA must
supporting the conditions be specified.
necessary for women’s rights

195
The Reality of Aid 2008

What is Needed for Aid Policies

• The monitoring system of the PD equality goals. Such accountability


implementation should integrate a would determine the extent and
strategic plan for financing gender impact of gender planning, gender
equality and women’s budgeting, gender indicators and
empowerment that is reflected in monitoring support for gender
budget guidelines; as well as the equality.
amount of government funds spent • Support gender sensitive indicators
for capacity building on integrating in SWAps results frameworks and
a gender perspective in public mechanisms to track expenditure,
finances for (1) Finance Ministry assess performance and show
officials; (2) whole of Government impact.21
(including Parliamentarians), and (3) • Promote the integration of Gender
CSOs. Responsive Budgeting as a tool to
combine with General Budget
4. Develop guidelines and tools for the Support. Donors and CSOs should
contribution of new aid modalities to build capacity within Southern
national obligations to gender governments on gender-sensitive
equality. budgets and empower women’s
participation in the budgetary
• Donors and developing countries’ process. This must be central for
governments should support the Public Financial Management
development of guidelines, reforms and capacity development
monitoring tools and indicators on programmes.
the contributions of the new aid • Include gender equality explicitly as
modalities to national obligations to a principle in memoranda of
gender equality: understanding in General Budget
• The joint assessment processes Support and MDG contracting
could provide an opportunity for agreements between donors and
donors and governments to be held developing governments.22
mutually accountable for gender

Notes
1
With contributions from Lydia Alpizar and the
6
MDG3, “Promote gender equality and empower
support of Anne Schoenstein and Michele Knab women”, has as a target to eliminate gender
(AWID). disparity in primary and secondary education
preferably by 2005, and at all levels by 2015.
2
Monterrey Consensus, Chapter 1, paragraph 2.
7
Grown, C., Bahadur, C. Handbury, J. & Elson. D.
3
Alemany, C. (2008, April 14). Notes for remarks of (2006, August). The financial requirements of
Roundtable 3: Supporting the development efforts achieving gender equality and women’s
of the least developed countries, including through empowerment. A paper prepared for the World
trade capacity-building, Special High Level Meeting Bank.
between the Economic and Social Council with the
BWI, the World Trade Organization and the United
8
Symington, A. (2006, December). A concept paper:
Nations Conference on Trade and Development. NY. Influencing Development Actors and Practice for
Women’s Rights An AWID Strategic Initiative, 2007-
4
Global Monitoring Report 2008, MDGs and the 2010.
Environment, The International Bank for
Reconstruction and Development, The World Bank,
9
Statement of the Women’s Working Group on
p. XVII. Financing for Development, Informal Review Session
on Chapter IV, “Increasing international financial
5
Social Watch, Report 2007, p. 81. and technical cooperation for development”, 15-16
April 2008.

196
The Reality of Aid 2008

What is Needed for Aid Policies


10
AWID’s 2007 Second Fundher Report, Financial recommendation of the meeting of the UN Expert
Sustainability for Women’s Movement’s Group on Financing for Gender Equality asking
Worldwide, shows that bilateral and multilateral governments to commit to reach 10% of ODA for
agencies are a key source of funding for women’s gender equality and women’s empowerment by
rights organisations. Retrieved from http:// 2010 and 20% by 2015, setting out in the action
www.awid.org/go.php?pg=fundher_2 plan of donors, recipient countries and the DAC
strategies for reaching the target, monitoring
11
AWID-DAWN-WIDE-FEMNET. (2008, May). Brief issue performance and evaluating impact (Expert Group
paper on managing for development results and on Financing for Gender Equality - the UN
gender equality. Commission on the Status of Women, Oslo,
September 2007).
12
The Convention on the Elimination of All Forms of
Discrimination against Women was adopted in 18
The Accra Agenda for Action will be the main
1979 by the UN General Assembly. output of the HLF3. Its purpose is to deepen the
implementation of the Paris Declaration with a
13
Williams, M. (2007, May). Financing development, view to achieving the agreed targets, as well as to
democracy and gender equality. Commonwealth address issues emerging since 2005. For more
Foundation. information see http://www.accrahlf.net

14
OECD DAC evaluation of gender equality and SWAps. 19
Recommendations of the International Consultation
of Women’s Organizations and Networks and Aid
15
GADN. (2007). Effectiveness.

16
AWID & WIDE. (2008, January). Implementing the 20
Paris Declaration, Section III: Indicators of
Paris Declaration: implications for the promotion Progress, Indicator 1, p. 9.
of women’s rights and gender equality,
Commissioned by the Canadian Council for 21
Gendernet, C. G. (2007).
International Cooperation (CCIC).

17
Participants at the Ottawa consultation call on
22
Ibid.
donors and developing countries to follow the

197

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