Global Partnership and Aid

Lee, Kye Woo

KDI School of Public Policy and Management

I. BUSAN PARTNERSHIP DOCUMENT

It sets out principles, commitments and actions that offer a foundation for Global Partnership in support of international development.

The outcome document is divided into four main sectors:

1) Shared norms and principles to achieve common goals; 2) Improving the quality and effectiveness of development co-operation; 3) From effective aid to co-operation for effective development ; and 4) The road ahead: Partnering for progress towards and beyond the MDGs

Shared principles to achieve common goals

1. New and Inclusive Partnership

- Bilateral partnership Global partnership (North-South) (South-South, Trilateral)

- Governmental partnership Global partnership (government- gov’t) (gov’t, MDB, CSO,

Private, others)

Partnership dates back to Paris Declaration (2005)

- Rome (2003), Marrakech (2004)- North-South- Government-Government

2. From Partnership (means) to Development (goal)

The goal of Partnership (means) - under Paris Declaration

Partnership for Effectiveness of Development Cooperation (Aid effectiveness) - under Busan Outcome Document

Partnership for Development Effectiveness

The shift in goals: Development Cooperation Development Effectiveness (aid effectiveness) (all public policy effectiveness)

(aid, trade, Fdi, ppp, knowledge, Technology, climate change, economic recovery, financial shock prep, etc)

II. IMPLEMENTATION PROGRESS AND CRITICISM

1.Disconnection from the Experience with Paris Declaration

(No thorough Evaluation and learning Lessons from PD)

Progresses in Paris Declaration

Criticism Against Paris Declaration== Little Difference in:

- Stronger norms of good practice- Progress toward intended outcomes for 12 indicators- Improved aid partnership quality- Rising aid volumes.

-Giving higher priority to the needs of the poorest (e.g. women, children)-Promoting aid reform results, especially in strengthening institutional capacities/social capital and improving the mix of aid modalities.

Causes of Criticism Against Paris Declaration

- Lack of progress in all monitoring indicators (only one out of 12 indicators has been fully met) -Slow starts in aid management reform in recipient countries -Weak political and public support for aid and aid reform in donor countries due to the perception that the Declaration focuses on technical and bureaucratic processes.

2. Lack of Focus for Immediate Implementation- Too broad a range of goals to be focused in the short run with new and

Inclusive partnership- New and inclusive Partnership should be applied in the short run with a

traditional goal, i.e. aid/development cooperation effectiveness for its added value

3. Missing Key Elements of Development Cooperation (1) Scale of Development Cooperation - Positive correlation between Aid – investment, growth, poverty

reduction- Fall in 2008, followed by a brief recovery in 2009, subsequent declines

to date (2) Optimum Aid Allocation Criteria

- More aid be given to governments with the poor, reforming policies and institutions; to sectors for capacity building

- Aid should be used for rewarding reformers, not as an inducement for reform

III. CHALLENGES FOR IMPLEMENTING THE BUSAN AGREEMENTThe Way Forward

- Based on the lessons learned from the Paris Declaration and the criticism against the Busan Agreement

- Apply the new and inclusive Partnership to the focused mandate– Development Cooperation –for added value and effectiveness

Back to Basics

- Reaffirm basic norms and principles (PD, AAA, etc.)

- Supplement the basic norms with missing key elements (scale, allocation)

- Reconcile differences in basic norms b/t traditional partnership and global partnership

- Identify barriers to smooth implementation of the basic norms

Renew Commitments by Political Leaders

- Reconfirm commitments to scale and allocation criteria of aid

- Mobilize new-inclusive partnership for political support of aid reform

- Support technical implementation of aid reform with political support

Strengthen Monitoring and Evaluation of Aid Reform

- Mobilize new Partnership for voluntary participation of more countries in the M +E scheme of aid reform

- Establish M+E targets based on experience of PD and new partnership

- Agree on the scope and modalities of development cooperation b/t traditional and new partnerships

Format for Discussing GPEDC

- Each group of new partnership discuss the way for adding value, exchange views b/t groups, and reach consensus among new-inclusive partners

Thank You!

Lee, Kye Woo