Nicaragua: Harmonization and Alignment Process

Mauricio Gómez Lacayo Viceminister – Secretary Ministry of Foreign Affairs February 2005

Harmonization and Alignment of International Cooperation

 Objective:  To obtain a more effective, efficient and appropriate development aid  To achieve a larger and greater impact of the external resources by significantly reducing transaction costs  To increase the benefits of the aid recipients  To establish strategic alliances :  Between the Governmental Institutions  Among the National and International Lending Community  With Civil Society February 2005

Current situation of the Cooperation

 Worldwide recognition: impact from cooperation has not been as expected  Cooperation:  dispersed and duplicity of efforts  high transaction costs  weak interagency coordination  weak coordination with and among governmental entities  distorting effect on the capacities of national institutions February 2005

In this context, what have we done?

February 2005

Nicaragua´s Process overview

I Coordinating Forum • Analysis •Need for change Monterrey Roma Round Tables II Coordinating Forum Proposition of instruments and mechanisms Managua Declaration Mechanisms Implementation Consensus on mechanisms SWAPs Strengthening of Cooperation Coordination February 2005

Along with these Process

 We have formed Strategic Alliances  OECD DAC  JCLA Process  OECD DAC Survey  Partner Country Meeting  Regional Forums  South South Cooperation  Harmonization and Alignment Action Plan  Government and Donor Community February 2005

The Results….

 Strengthening of the National Ownership  Permanent and institutionalised mechanisms  Highlighting H&A Agenda  Gathering Local Actors  Getting International Attention and Support  Obtaining a base line to measure advances and pending tasks  OECD DAC Survey February 2005

The Remaining Challenges

 Ownership  Strengthening our own capacities  Brain Drain  Regulation of Technical Assistance  Dissolution of Parallel Structures  Promoting in a energetic and jointly manner all on going processes  Implementation of H&A Action Plan  Reinforcement of Official Coordination mechanisms February 2005

The Remaining Challenges

 Alignment  Generalized use of Country Systems  SWAPS  Budget Support  Better resources prevision  Vital information for Planning and MTEF  One comprehensive Assessment Matrix  Alignment to the National Budget Cycle February 2005

The Remaining Challenges

 Harmonization  Lower transaction costs  Delegated Cooperation  Information Sharing  Analytic works, studies and reports  Harmonisation of norms and procedures  Joint Missions and Reports  Flexibility in allocation and reallocation of resources February 2005

How to move Forward…

 Making the H&A Agenda the General Agenda  H&A approach should be part of everyone's work and objectives  Donor and Lending Community as well as Government should integrate it into their organizational culture  Finding relatively uncompromising areas to avance on  Little Changes with great impact  Parallels structures back to Government entities   Projects funds to be manage by governmental institutions Sharing donors resource programming information February 2005

How to move Forward…

 Making concrete compromises by Key Actors  Government  Donor and Lending Community  Civil Society Organizations  Development of a Follow Up system  Strategic Partner  Realistic, Measurable and Reachable February 2005

How to move Forward…

 Creating a dissemination Strategy  Constant information amongst the key actors  Better and Greater Participation  Feedback assurance  Clarification and unification of concepts  All actors moving into the same direction  Unification of efforts  Divulgation of progress made and challenges ahead February 2005

Conclussions

 Change management is a timely manner and both donor and country pace should be respected.

 No real progress will be made without a consensual strategy plan backed with real, concrete and measurable compromises from key actors.

February 2005