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“Mutual Review of Development Effectiveness” in the context of NEPAD
OECD Presentation
Aid flows and quality (chapters 5 and 6)
Policy coherence (chapter 7)
ECA Conference of African Ministers of Finance, Planning and Economic
Development Abuja, Nigeria, 11 – 13 May 2005
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Aid flows and aid quality• Scaling up of aid
– Implies changing the aid business model: aid effectiveness agenda
– From “donorship” -- to ownership by African countries
– Generating systemic capacities and accountabilities: no capacity without predictability
– Predictability becomes central – A new African aid architecture needed
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Aid flows and aid quality (cont)
• Scaling up of aid: current state of play
• Monterrey/G8 commitments
• Current estimates of aid requirements– UN MDG Report
– Africa Commission
– World Bank Global Monitoring Report
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Chart 11. DAC Members’ ODA: 1990-2003 and simulations to 2006 and 2010,
based on commitments at Monterrey and since
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ODA as a % of GNI (left scale)
Total ODA(right scale)
Total ODA to Africa(right scale)
ODA to Africa as a % of GNI (left scale)
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Aid flows and aid quality (cont)
• Scaling up of aid: comparing current commitments with new aid scenarios– Monterrey/G8 commitments imply $15 billion increase
for Africa by 2010 over 2003 (latest announcements will increase this estimate)
– MDG Project envisages ODA/GNI ratio of 0.46% in 2010 as compared with DAC simulation of 0.32%
– Commission for Africa and World Bank propose $25 billion increase for 2010 over 2003 level of around $23 billion
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Current evolution of aid to Africa: ODA back to early 1990s levels
(See Annex I for additional charts)
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Note: Data on emergency aid are available only as from 1995.
Chart 1. Total net official development assistance (ODA), non-aid official flows and private flows in Africa, 1993-2003
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Aid flows “Action Frontiers” and 2007 “Performance Benchmarks”
• Managing the scaling up of aid – for Africa– Construct overall development finance scenarios with
post-aid dependence vision– Policies for domestic resource mobilisation, including
financial sector development and tax systems – Proactive approach to aid composition and leadership
of aid management processes– MTEF frameworks operative and
effective/accountable public expenditure management
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Aid flows: “Action Frontiers” and 2007 “Performance Benchmarks” • Managing the scaling up of aid: for OECD
– Commit to new ODA scenarios for Africa (Gleneagles G8 summit, UN Millennium +5 summit)
– Provide for high degree of predictability and active forward planning (forward tracking, multi-year discussions with partners, aid flows reported on national budgets)
– Strengthen aid modalities for fragile states, regional integration and infrastructure
– Definitive resolution of multilateral debt issue and associated new loans/grant policies
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Aid quality: “Action Frontiers” and 2007 “Performance Benchmarks” • Remarkable progress in countries where
strong African ownership/leadership (Mozambique, Tanzania, Uganda, Ghana, Ethiopia, Burkina Faso)
• Paris Declaration: joint commitments and measurable targets for ownership, alignment, harmonisation and results-based management (Annex II of Mutual Review Report)
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Coherence across the range of OECD and African public policies
• Requires government-wide approaches to policy formulation, underpinned by integrative institutional structures/processes
• Systematic promotion of mutually reinforcing policy actions across government departments and agencies, regional groupings and international institutions
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Policy coherence: “Action Frontiers” and
2007 “Performance Benchmarks” For Africa• Build capacities to
– Participate effectively in international debates (African voice)
– Generate initiatives across sectors, disciplines, regions, countries c.f. NEPAD’s agriculture strategy
• Streamline and rationalise regional institutions and mandates into a coherent, strategic and interactive system.
• Concerted effort to reduce corruption
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Policy coherence: “Action Frontiers” and
2007 “Performance Benchmarks” For OECD• Aid, trade and debt policies consistent with
growth/MDG attainment and viable longer-term financial development scenarios
• Improve OECD institutional mechanisms for policy coherence
• Facilitate “African voice” • Coherent government-wide support for
African conflict resolution and peace-building capacities
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Policy coherence: “Action Frontiers” and
2007 “Performance Benchmarks” For OECD• Strong Doha Round outcome facilitating the
“Three Pillars”: improved market access, elimination of export subsidies and reduction of domestic support
• Trade capacity building, including for trade facilitation and standards
• Research, human and financial resources to address African health challenges
• Enforcing anti-corruption instruments and facilitating recovery of stolen assets