OECD/DAC WORKING PARTY ON AID EFFECTIVENESS

“Shifting Gears to Finish the Job:

From Joint Ventures to Clusters”

ADB Asia/Pacific Procurement Forum, Aug. 24 - 25, 2009

Micheal Lawrance
Procurement Advisor - DAC Secretariat
1 Have we met our Paris Declaration
targets for Country Systems?

2 Changing the Working Party structures to

deliver the AAA commitments

3 Cluster on Country Systems and the Task

Force on Procurement
 Paris Declaration

In 2005:
 Partner countries committed to strengthening their
country systems …

 …and donor countries and development

institutions committed to using them to the
maximum extent possible.
 COUNTRY SYSTEMS

DEFINITION of country systems:

– Donors use country systems when their funds are
managed according to the national regulations and
procedures…
–… as they were established in the general legislation and
implemented by government.
SCOPE of country systems include:
–Public financial management (PFM), procurement, audit,
monitoring & evaluation, social & environmental
assessment.
–Others: budget planning, results management
Results - 2008 Monitoring Survey: ON TRACK
2005 2010 Targets
Operational Development
1 Strategies
17% 75%
Reliable Public Financial
2 Management Systems
36% 50%
Aid flows are recorded in
3 countries' budgets
42% 85%
Technical assistance is
4 aligned & coordinated
48% 50%
Donors use country PFM
5a Systems
40% [80%]
Donors use country
5b procurement systems
39% [80%]

6 Donors avoid parallel PIUs 1832 611

7 Aid is more predictable 41% 71%

8 Aid is untied 75% 88% [100%]

Donors use coordinated
9 mechanisms for aid delivery
43% 66%
Donors coordinate their
10a missions
18% 40%
Donors coordinate their
10b country studies
42% 66%
Sound frameworks to
11 monitor results
7% 38%
Mechanisms for mutal
12 accountability
22% 100%
Monitoring Survey: SPECIAL EFFORTS NEEDED
2005 2010 Targets
Operational Development
1 Strategies
17% 75%
Reliable Public Financial
2 Management Systems
36% 50%
Aid flows are recorded in
3 countries' budgets
42% 48% 85%
Technical assistance is
4 aligned & coordinated
48% 50% 59%
Donors use country PFM
5a Systems
40% [80%]
Donors use country
5b procurement systems
39% [80%]

6 Donors avoid parallel PIUs 1832 1601 611

7 Aid is more predictable 41% 46% 71%

8 Aid is untied 75% 88% [100%]

Donors use coordinated
9 mechanisms for aid delivery
43% 66%
Donors coordinate their
10a missions
18% 40%
Donors coordinate their
10b country studies
42% 66%
Sound frameworks to
11 monitor results
7% 38%
Mechanisms for mutal
12 accountability
22% 100%
 Monitoring Survey: OFF TRACK

2005 24% 2010 Targets

Operational Development
1 Strategies
17%
36%
75%
Reliable Public Financial
2 Management Systems 49%
50%
Aid flows are recorded in
3 countries' budgets
42% 85%
59%
Technical assistance is
4 aligned & coordinated
48%
45%
50%
Donors use country PFM
5a Systems
40%
43%
[80%]
Donors use country
5b procurement systems
39%
1483
[80%]

6 Donors avoid parallel PIUs 1832

45%
611

7 Aid is more predictable 41%

88%
71%

8 Aid is untied 75%

47%
[100%]
Donors use coordinated
9 mechanisms for aid delivery
43%
21%
66%
Donors coordinate their
10a missions
18% 44% 40%
Donors coordinate their
10b country studies
42%
9%
66%
Sound frameworks to
11 monitor results
7%
26%
38%
Mechanisms for mutal
12 accountability
22% 100%
ACCRA AGENDA FOR ACTION (2008)

DONORS will:
– Use country systems as the first option in public sector and will
be transparent when they don’t use them.
– Develop corporate plans for using country systems.
– Channel 50% (or more) of government-to-government aid
through country fiduciary systems (i.e. PFM + Procurement)

PARTNERS will lead in defining reform programmes and designing

capacity strengthening strategies.

PARTNERS & DONORS will jointly assess quality and performance of

country systems and jointly seek political engagement and
support to strengthen and use Country Systems
1 Have we met our Paris Declaration targets
for Country Systems?

2 Changing the Working Party structures

to deliver the AAA commitments

3 Cluster on Country Systems and the Task

Force on Procurement
T HE W ORKING P ARTY ON A ID E FFECTIVENESS

• Main responsibilities:
– Facilitating all development actors’ efforts to
implement aid effectiveness commitments;
– Monitoring PD/AAA implementation;
– Disseminating the messages of the PD and the
AAA; and
– Promoting relevant applied research, analysis
and dialogue.
WORKING PARTY ON AID EFFECTIVENESS
2005

• Set up in 2003, hosted by the OECD DAC

• Comprised:
– All DAC bilateral donors (22) + EC + observers
– 22 partner countries + observers
– Most multilateral agencies: UNDP, WB, Regional
Banks, global programmes, SPA …
Workstreams set up to implement the Paris
Declaration

 WP-EFF established expert sub-groups or “joint

ventures” (JVs)
 JVs responsible to plan and ensure delivery of
expected results in key areas:
• Procurement
• Public financial management (PFM)
• Managing for Development Results (MFDR)
• Monitoring the Paris Declaration
 Each managed by Co-Chairs (partner and donor),
developed own work plan and ensured financing for
work and meetings
THE WORKING PARTY ON AID EFFECTIVENESS:
post-Accra

• An international partnership on aid

effectiveness
• Two co-chairs:
– Talaat Abdel-Malek, Egypt
– Koos Richelle, European Commission
• Members: 24 partner countries; 31 donors;
9 multilaterals; 8 donor / recipient countries
and 6 other stakeholders (CSOs,
parliamentarians)
1 Have we met our Paris Declaration targets
for Country Systems?

2 Changing the Working Party structures to

deliver the AAA commitments

3 Cluster on Country Systems and the

Task Force on Procurement
Working Party on Aid Effectiveness: five main
“clusters”
CHAIRS
Vice Chairs

EXECUTIVE COMMITTEE (20 members)

WORKING PARTY PLENARY (80 participants)

A Ownership & B Country Systems C Transparent D Assessing E Managing for

Accountability & Responsible Progress Development
 Using Country Systems aid Results
 Domestic  Monitor
Accountability  Assessing Country  Aid  Capacity
implementation of
Systems transparency
 Mutual PD & AAA. Development.
Accountability  Capacity for reform.  Predictability  Incentives
 Evaluate
 Broadened  Accountable and  Division of implementation  Results
Ownership Responsible States labour  Document Reporting in Donor
 Conditionality progress Agencies
 Monitoring the
fragile states
principles
Task Force on PFM Task Force on Procurement
Background to Cluster on Country Systems

• Consultation Meeting in Accra, February 2009,

held with representatives of Joint Ventures,
other work streams, donor and partner
government officials and CSOs

– Which Country Systems?

– Work Programme?
– Proposals for Working Modalities?
Which Country Systems? Task Forces (TFs)
in Country Systems Cluster

• Task Force on Procurement: Co-Chairs

Pam Bigart (World Bank) and Ruby
Alvarez (Philippines)
• Task Force on PFM: Co-Chairs Tony
Hegartry (World Bank) and Saulos
Nyirenda (Malawi)
• Coordination with other workstreams (ie:
Statistics (Paris 21); Environet; etc)
 Work Programme:
Key Tasks on Country Systems
1. Assessing the Quality
of Country Systems
2. Using Country Systems
3. Effective Capacity for
Reform
4. More Accountable and
Results-Driven Country
Systems
Working Modalities: Country Systems Cluster

Cluster Coordinators:
Dirk Djikerman, US Delegate to DAC
Mary-Anne Addo, Ministry of Finance, Ghana

DAC Secretariat:
Sara Fyson (cluster coordinator in Secretariat, PFM)
Micheal Lawrance (procurement)
 The value-added of the Cluster:
Functions and Responsibilities

• Cluster as Coordinator
– Collect / share information and case studies
– Co-ordinate / facilitate joint work of task forces
• Cluster as Driver
– Develop and sustain senior bureaucratic and
political support for work of Task Forces
– Communicate and advocate benefits of using
country systems
– Improve the visibility of Task Force products
at headquarter and country levels
 Country Systems as Co-ordinators:
e.g. Practitioner’s Toolkit on Using Country Systems
 NEXT STEPS

Second meeting of the Cluster Nov. 30 tbc

Working Party on Aid Dec. 1 - 3, 2009

Effectiveness

Launch of 2011 Monitoring Survey Jan. 2011

High Level Forum 4 - Seoul Oct. 2011