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Improving Aid EffectivenessImproving Aid Effectiveness

Presentation by Ms. Pauline HayesPresentation by Ms. Pauline HayesHead, Europe and Central Asia Department, Head, Europe and Central Asia Department, DFIDDFID

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Paris Declaration on Aid EffectivenessParis Declaration on Aid Effectiveness

• What? Basic commitments for better use of aidWhat? Basic commitments for better use of aid

• When? March 2005: 91 countries, 26 international When? March 2005: 91 countries, 26 international organisationsorganisations

• Why? To help countries achieve Millennium Why? To help countries achieve Millennium Development Goals, increase growth and improve Development Goals, increase growth and improve governancegovernance

• Kyrgyz Republic: pilot country for reporting on progress Kyrgyz Republic: pilot country for reporting on progress against 12 aid effectiveness indicatorsagainst 12 aid effectiveness indicators

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Key PrinciplesKey Principles

OWNERSHIP – putting national partners in the OWNERSHIP – putting national partners in the driving seatdriving seat

ALIGNMENT – donors align with partners ALIGNMENT – donors align with partners development strategies (JCSS)development strategies (JCSS)

HARMONISATION – donor actions more HARMONISATION – donor actions more transparent and collectively effectivetransparent and collectively effective

MUTUAL ACCOUNTABILITY – government and MUTUAL ACCOUNTABILITY – government and donors jointly review progress, take actiondonors jointly review progress, take action

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• Country Development Strategy and Sector Country Development Strategy and Sector Strategies should be linked to budget, Strategies should be linked to budget, implemented well and monitoredimplemented well and monitored

• Strengthen national systems e.g. public Strengthen national systems e.g. public financial management at national and regional financial management at national and regional levelslevels

• Donors should support via technical assistance Donors should support via technical assistance where requestedwhere requested

How Can We ImproveHow Can We Improvein the Kyrgyz Republic?in the Kyrgyz Republic?

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• Support national leadershipSupport national leadership

• Use national systems where feasible Use national systems where feasible

• Reduce number of Project Implementation UnitsReduce number of Project Implementation Units

• Reduce bilateral missions (over 300 annually) Reduce bilateral missions (over 300 annually)

• Increase Joint Analysis and Joint ReviewsIncrease Joint Analysis and Joint Reviews

• Strengthen Donor Coordination Council - and Strengthen Donor Coordination Council - and involve the Government involve the Government

How Can Donors Improve?How Can Donors Improve?

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• National Strategy, strong national leadershipNational Strategy, strong national leadership

• Implementation supported by donors, (5 do so on-budget Implementation supported by donors, (5 do so on-budget – $15M pa, plus technical assistance)– $15M pa, plus technical assistance)

• No PIU - all financial management functions done in-No PIU - all financial management functions done in-house house

• Improved MOH / MOF relations – better budgeting, Improved MOH / MOF relations – better budgeting, auditing and procurement management auditing and procurement management

• Joint monitoring of Manas Taalimi – third Health Summit Joint monitoring of Manas Taalimi – third Health Summit last week last week

Success Story: Kyrgyz Health SectorSuccess Story: Kyrgyz Health Sector

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Impact on Health Sector Performance Impact on Health Sector Performance

• Improved financial management capacity within Improved financial management capacity within Ministry of Health Ministry of Health

• Health budget increased in 2006 after 5 years of Health budget increased in 2006 after 5 years of decline, 100% execution, donor funds additionaldecline, 100% execution, donor funds additional

• Better health outcomes: reduced child and maternal Better health outcomes: reduced child and maternal mortality, reduced TB incidencemortality, reduced TB incidence

• More people using health services More people using health services

• Poor people paying lessPoor people paying less

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Next steps Next steps

• Continuously improve ways of working Continuously improve ways of working

• JCSS – opportunity to put alignment in action JCSS – opportunity to put alignment in action

• Continue to support Manas Taalimi implementation Continue to support Manas Taalimi implementation applying Paris principlesapplying Paris principles

• Roll out this approach to other sectors and issues Roll out this approach to other sectors and issues

• EvaluateEvaluate and communicate impact, success storiesand communicate impact, success stories

• Encourage emerging donors to consider these Encourage emerging donors to consider these approaches approaches

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Thank you for attention!Thank you for attention!

Presentation by Ms. Pauline HayesPresentation by Ms. Pauline HayesHead, Europe and Central Asia Department, Head, Europe and Central Asia Department, DFIDDFID