university of antwerp trends in development co-operation iuc policy workshop brussels, 10-13 march...
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University of Antwerp
Trends in development co-operation
IUC Policy Workshop Brussels, 10-13 March 2008
Robrecht Renard
11 March 2008 Robrecht Renard2
University of Antwerp
• slide n° 2
Outline
1. The major sins of donors2. The new aid paradigm 3. Managing new aid
11 March 2008 Robrecht Renard3
University of Antwerp
• slide n° 3
1. The major sins of donors
• Selfishness– donors are obsessed with flags / photo opportunities– they poach scarce staff and recurrent resources– they undermine overall policy coherence
• Naivety– donors harbour the illusion that they can bypass a
weak state and bring sustainable development results
• Arrogance– donors impose their own solutions
• Softness– sanctions are not applied and thus not credible
11 March 2008 Robrecht Renard4
University of Antwerp
• slide n° 4
Fragmentation and proliferation
• Contrast the three ultimate sources of aid– taxes– voluntary contributions– capital market
• with the hundreds of competing aid delivery channels and mechanisms
• A collective action problem• A manifestation of donor selfishness• The market analogy is not convincing
11 March 2008 Robrecht Renard5
University of Antwerp
• slide n° 5
The issue of governance
• Recipient countries are often poorly governed• But donors are also to blame, by not allowing
for recipient ownership • Regarding governance, donors make two errors: Donor errors of commission
– when aid causes governance to deteriorate
Donor errors of omission– when opportunities are missed to improve governance
11 March 2008 Robrecht Renard6
University of Antwerp
• slide n° 6
2. The new aid paradigm
period preferred aid modality
major constraint addressed
1960-1980
projects - physical capital- human capital
1980-2000
policy based support
- macroeconomic policies
2000- budget support
- ownership- governance
11 March 2008 Robrecht Renard7
University of Antwerp
• slide n° 7
2. The new aid paradigm
period preferred aid modality
major constraint addressed
donor attitude to partner government
1960-1980
projects - physical capital- human capital
1980-2000
policy based support
- macroeconomic policies
2000- budget support
- ownership- governance
11 March 2008 Robrecht Renard8
University of Antwerp
• slide n° 8
2. The new aid paradigm
period preferred aid modality
major constraint addressed
donor attitude to partner government
1960-1980
projects - physical capital- human capital
bypass
1980-2000
policy based support
- macroeconomic policies
2000- budget support
- ownership- governance
11 March 2008 Robrecht Renard9
University of Antwerp
• slide n° 9
2. The new aid paradigm
period preferred aid modality
major constraint addressed
donor attitude to partner government
1960-1980
projects - physical capital- human capital
bypass
1980-2000
policy based support
- macroeconomic policies
bully
2000- budget support
- ownership- governance
11 March 2008 Robrecht Renard10
University of Antwerp
• slide n° 10
2. The new aid paradigm
period preferred aid modality
major constraint addressed
donor attitude to partner government
1960-1980
projects - physical capital- human capital
bypass
1980-2000
policy based support
- macroeconomic policies
bully
2000- budget support
- ownership- governance
engage
11
University of Antwerp
• slide n° 11
1. Ownership1. Ownership(Partner country)(Partner country)
mutual accountability
Results oriented management
Results oriented management
2. Alignment2. Alignment(Donor-Partner)(Donor-Partner) Aligning with
partner’s agenda
Partner sets the agenda
Using partner systems
Establishing common
arrangements
Simplifying procedures Sharing information
3. Harmonisation3. Harmonisation(Donor-Donor)(Donor-Donor)
The 2005 Paris declaration
11 March 2008 Robrecht Renard12
University of Antwerp
• slide n° 12
3. Managing new aid
bypass
govern
ment
sele
ctiv
it
y
policy
dialo
gue
conse
nsual
conditi
onality
bully
govern
ment
. . . . .weak strong
degree of donor interference in governance
new approach
11 March 2008 Robrecht Renard13
University of Antwerp
• slide n° 13
Selectivity – donors pull reform, but without domestic meddling– no dominant aid modality– drawback: moral issue of donor orphans – drawback: global negative externalities of failing states
Policy dialogue– donors pull reform, actively support internal reform dynamics– associated aid modality : generous budget support, TA
Consensual conditionality– donors lock in agreed reforms in contracts – augments credibility of policy dialogue– associated aid modality: idem
11 March 2008 Robrecht Renard14
University of Antwerp
• slide n° 14
Programme-based approaches (PBAs)
• Characteristics of PBAs– Country leadership– Single comprehensive programme and budget framework– Formal donor coordination and harmonisation– Efforts to use local planning, implementation, financial
management, M&E
11 March 2008 Robrecht Renard15
University of Antwerp
• slide n° 15
Donor indicators: the Paris Declaration
Aid reported on budget
TA co-ordinated
Use country PFM system
Use country procurement system
Parallel PIUs avoided
In-year predictability
Aid untied
Programme-Based Approaches (PBAs) used
Donor missions and analytical work pooled
Mutual accountability assessments in place
University of Antwerp
www.ua.ac.be/dev/bos
robrecht.renard@ua.ac.be
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