Transcript Multilateral Mechanisms for Managing International

Multilateral Mechanisms for
Managing International
Development Assistance. The
Challenge of Effectiveness and
Reform
Yuriy Zaytsev
National Research University - Higher
School of Economics
Moscow, Russian Federation
Why Multilaterals?
Multilateral versus bilateral mechanisms
• Pros:
•Cons:
– Economy of scale;
• Institutional complexity;
•Insufficient data and
– Political neutrality;
indicators on multilaterals’
– Legitimacy;
effectiveness.
– Country programmable aid;
– Flexible delivery
mechanisms.
•The capacity to mobilize and concentrate greater aid volumes;
•Country programmable aid principle implementation;
•Capacity to address the crisis situations.
The Scope of Multilateral Institutions
• Three types of multilaterals:
– IFIs;
– UN agencies;
– Global and regional bodies.
• 33 per cent of the gross ODA (~USD129 billion);
• Prevalence in Sub-Sahara Africa, South and Central
Asia;
• Provide less unspecified assistance;
• Preferred mechanisms by Brazil, China, India;
• Additional sources of financial flows.
ODA, provided by DAC countries to
multilaterals
14
11,8
12
10
9
8
7,5
6,2
6
7,8
7,5
1989 - 1993
1994 - 1998
6,2
1999 - 2003
5,1
2004 - 2008
4,5
4
4
4
3,5
2,9
2,5
2,2 2,4
2,2
2
1,8 2
2,3
1,9
0,9
0
UN Funds and
Programmes
EU Institutions
Source: OECD Creditor Reporting System
World Bank
Regional
Development Banks
Global Fund
Other Institutions
Contribution of DAC members into
multilateral organisations (2004- 2009)
Source: OECD DAC Report on Multilateral Aid, 2010
Key Forms of Managing Development
Assistance
1) Cooperation with international institutions;
2) Cooperation with sovereign donors;
3) Trilateral cooperation: emerging donor and traditional
donor;
4) Trilateral cooperation: emerging donor and international
institution.
- Social and economic regional
development:
- Health;
- Education;
- Infrastructure
project support
budget support
Integration of partner countries into
the processes of global economy:
• Aid for Trade;
• Investments;
• Value added chains
sector wide approaches
Need for post-crisis reform
• Coordinated Inter-institutional Mechanism:
UN bodies, World Bank, (?)
International Aid Office (?)
International Development Aid Fund (?)
UN Sustainable Development Board
UN Funding Mechanism
• reach countries’ contribution formula
• list of eligible countries
OECD DAC Donors’ club
Challenges of Aid Effectiveness
•
•
•
•
•
•
•
•
Factors of Aid Effectiveness
Coordination of multilateral and
bilateral donors;
Transparency and accountability in
financing aid programmes;
Decreasing the number of
duplicating programmes at country
and sector level;
Decreasing the fragmentation of
provided resources;
Refusing the practices of aid
conditionality;
Strengthening governmental
control over aid financial
management;
Public procurement;
Country programmable aid
Barriers of Aid Effectiveness
• Lack of skills and capacities for
managing aid programmes;
• Insufficient infrastructure;
• Lack of capital and investments;
• Market failures;
• Protectionism and trade barriers;
• Weakness of national institutions.
Contribute to donors’ effectiveness assessment,
but do not assess the impact of aid for developing countries
Managing for development results
•
•
•
•
•
•
good governance
country ownership
harmonization
alignment of donor efforts
measurable results
accountability for development results
• Mobilizing international efforts to comply with commitments;
• Increasing efficiency of programs implementation at the local level
Do partner countries have managing for results frameworks?
Country
2005
2010
Country
2005
2010
Afghanistan
no data
D
Liberia
D
D
Albania
D
D
Madagaskar
C
C
Bangladesh
D
C
Malawi
D
D
Benin
C
C
Mali
D
D
Bolivia
С
С
Mauritania
C
C
Burkina Faso
С
С
Moldova
D
C
Burundi
D
D
Mongolia
D
D
Cambogia
C
C
Morocco
no data
no data
Camerun
D
D
Mozambique
C
B
Cabo Verde
D
C
Nepal
C
C
CAR
D
D
Nikaragua
C
C
Chad
D
D
Niger
D
D
Columbia
no data
no data
Nigeria
no data
C
DRK
D
D
Papua New Guinea
no data
no data
Cote D'Ivoire
D
E
Peru
no data
no data
Dominican Republic
no data
no data
Phillipines
no data
no data
Egypt
no data
no data
Rwanda
C
C
Ephiopia
C
C
Sinegal
C
C
Gabon
no data
no data
Siera Lione
D
D
Ghana
C
C
Sudan
D
D
Haiti
D
D
Tansania
B
B
Honduras
C
C
Togo
no data
no data
Indonesia
no data
no data
Tonga
no data
no data
Iordania
no data
no data
Ukraine
no data
no data
Kenia
C
C
Uganda
B
B
Kosovo
no data
no data
Vietnam
C
C
Kyrgyzstan
C
C
Yemen
D
C
Laos
D
C
Zambia
D
D
Notes: A – supported practice; B – advanced practice; C- the measures are undertaken; D – some elements of the system exist; E – insufficient measures are undertaken
Source: World Bank, Results-Based National Development Strategies: Assessment and Challenges Ahead, Washington, DC: World Bank, December 2007.
The way Forward to Implement Managing for
Development Results Strategy
• Strengthening national ownership;
• Shifting the emphasis form outputs to
outcomes;
• Global Partnership on Managing for
Development Results;
There is no ready solution to establish Managing
for Development Results Framework
The way to achieve the progress
• Short-term recommendations:
– Increasing the flexibility and adaptation to the needs of partner
countries;
– Reconsidering key mechanisms for financing and replenishing
funds of international institutions.
• Long-term recommendations:
– General system for assessing the efficiency of the aid projects
delivery;
– Strengthening the competition among donors through system of
different MfDR frameworks;
– Decreasing the influence of bilateral donors on partner
countries;
– Shifting from sector and region division of labour approach to
competition approach
Thank you for attention!