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Donor coordination and effectiveness of aid to agriculture

Effectiveness in Aid to AgricultureCzech action to strengthen food security

Glopolis / FoRS Seminar, Prague, 18 February 2009

Christoph Langenkamp, task leader agricultural and rural policySecretariat of the Global Donor Platform for Rural Development

www.donorplatform.org christoph.langenkamp@donorplatform.org

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Global Donor Platform for Rural Development

• A network of 30 donors, international finance institutions and development agencies, formed in 2003;

• Common vision that agricultural and rural development (ARD) plays important role in poverty reduction;

• Members are committed to achieve increased and more effective aid for ARD, centred on smallholder agriculture;

• Proposed Platform outputs: Coherent and evidence-based advocacy in support of

increased and more effective aid in ARD;

Enhanced capacity of member agencies to deliver more effective support for ARD (knowledge management)

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Context

• When addressing aid: development is the prerogative of sovereign nations;

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Context

• When addressing aid: development is the prerogative of sovereign nations;

• Aid allocation in ARD declined;

International ODA to agriculture, forestry, fishing 1983 - 2007 (constant prices 2006)

0

5000

10000

15000

20000

25000

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

mil

lio

n U

S$

0%

5%

10%

15%

20%

25%

30%

35%

ODA

% total ODA

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Context

• When addressing aid: development is the prerogative of sovereign nations;

• Aid allocation in ARD declined;

• Aid fragmentation increased;

Average number of donors per recipient county, region and decade

0

5

10

15

20

25

30

35

40

1960-1969

1970-1979

1980-1989

1990-1999

2000-2006

2006

Latin America andCaribbean

Middle East and NorthAfrica

other Asia andOceania

South and Sentral Asia

Sub-Saharan Africa

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Context

• When addressing aid: development is the prerogative of sovereign nations;

• Aid allocation in ARD declined;

• Aid fragmentation increased;

• Aid architecture and modalities are increasingly complex

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Paris Partnership Commitments

• Developing countries exercise leadership over their development policies and plans (ownership);

• Donors base their support on countries’ development strategies and systems (alignment);

• Donors co-ordinate their activities and minimise the cost of delivering aid (harmonisation);

• Developing countries and donors orient their activities to achieve the desired results (managing for results);

• Donors and developing countries are accountable to each other for progress in managing aid better and in achieving development results (mutual accountability);

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Sectoral issues of the Paris Declaration

The agricultural sector:• is private sector led with limited role of the state;

• includes a wide range of stakeholders (civil society, rural organisations, private sector);

• is cross-Ministerial and institutionally complex;

• the challenges and needs are heterogeneous and are country/region-specific.

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Agricultural sector experiences implementing Paris Declaration

• Ownership: Joint Assistance Strategies (JAS) existing but weak capacity and involvement of rural stakeholders. Lack of integration of national policy with sector and local strategies.

• Alignment: Currently with government policies and systems but new approaches and models may require working outside government.

• Harmonisation: PBAs and SWAps existing but still too many approaches and no real incentives; at times too complex.

• Mutual Accountability: SWAps, MoUs and Financing Agreements existing but broader stakeholder involvement and clearer norms required.

• Managing for Results: Concepts (outcomes, results and indicators) and processes (M&E systems, capacity assessment and stakeholders) still rather weak & undefined.

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Key points of the Accra Agenda for Action (AAA)

Organised along three major challenges: Ownership, partnerships and results

• Concrete steps on predictability, transparency, use of country systems, untying, division of labour.

• Progress on fragile states, conditionality.

• Significant change in the nature of the relationship between donors and partners – accountability and trust.

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Key issues for effective ARD policies & strategies

• Strengthened and more inclusive ownership (farmers & farmers’ organisations, rural CSOs, private sector) of policies/strategies & implementation/monitoring;

- Capacity development for all stakeholders;

- Coherent and “good enough” policies and strategies at national, sectoral and decentralised levels;

- South-south learning networks, communities of practice.

• Development of cost-effective results management and improvement of methodology and progress indicators in results-monitoring for ARD.

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Donor issues for effective aid in ARD

In addition:

• Alignment and increased use of country systems, incl. support to regional mechanisms (e.g. CAADP);

• Realistic PBAs (see Platform study, EC guide);

• Strengthen partnerships (global, regional, national);

• Finalise Joint Principles for donors;

• Division of labour;

• Support incentives for aid effectiveness for ARD;

• Regard “Right to Food”, WDR 2008, OECD, IAASTD…

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Thank you

And please visit:

www.donorplatform.org

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Key points of the AAA (cont.)

• Ownership, country-level policy dialogue on development (§13)

• Capacity development (§14)

• Country systems (§15)

• Reducing aid fragmentation (§17)

• Recognition of role of all development partners (§19)

• Civil society (§20)

• Managing for results and incentives (§23)

• Accountability for results (§24 & 26b)