Multilateral Mechanisms for Managing International Developm - PowerPoint Presentation

Slide1

Multilateral Mechanisms for Managing International Development Assistance. The Challenge of Effectiveness and Reform

Yuriy

Zaytsev

National Research University - Higher School of Economics

Moscow, Russian FederationSlide2

Why Multilaterals? Multilateral versus bilateral mechanisms

Pros:

Economy of scale;

Political neutrality;Legitimacy;Country programmable aid;Flexible delivery mechanisms.

Cons: Institutional complexity;Insufficient data and indicators on multilaterals’ effectiveness.

The capacity to mobilize and concentrate greater aid volumes;Country programmable aid principle implementation;Capacity to address the crisis situations. Slide3

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. Slide4

ODA, provided by DAC countries to multilaterals

Source:

OECD Creditor Reporting SystemSlide5

Contribution of DAC members into multilateral organisations (2004- 2009)

Source: OECD DAC Report on Multilateral Aid, 2010Slide6

Key Forms of Managing Development Assistance

Cooperation with international institutions;

Cooperation with sovereign donors;

Trilateral cooperation: emerging donor and traditional donor;Trilateral cooperation: emerging donor and international institution.

Social and economic regional development:

Health;Education;Infrastructure

Integration of partner countries into the processes of global economy:

Aid for Trade;

Investments;

Value added chains

project support budget support sector wide approachesSlide7

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’ clubSlide8

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 aidContribute to donors’ effectiveness assessment,but do not assess the impact of aid for developing countries

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.

Barriers of Aid Effectiveness

Challenges of Aid EffectivenessSlide9

Managing for development resultsgood governance

country ownership

harmonization

alignment of donor effortsmeasurable resultsaccountability for development results

Mobilizing international efforts to comply with

commitments;Increasing efficiency of programs implementation at the local level Slide10

Do partner countries have managing for results frameworks?

Country

2005

20

10Country

20052010

Afg

h

anistan

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

DMongoliaDDCambogiaCCMoroccono datano dataCamerunDDMozambiqueCBCabo VerdeDCNepalCCCARDDNikaraguaCCChadDDNigerDDColumbiano datano dataNigeriano dataCDRKDDPapua New Guineano datano dataCote D'IvoireDEPeruno datano dataDominican Republicno datano dataPhillipinesno datano dataEgyptno datano dataRwandaCCEphiopiaCCSinegalCCGabonno datano dataSiera LioneDDGhanaCCSudanDDHaitiDDTansaniaBBHondurasCCTogono datano dataIndonesiano datano dataTongano datano dataIordaniano datano dataUkraineno datano dataKeniaCCUgandaBBKosovono datano dataVietnamCCKyrgyzstanCCYemenDCLaosDCZambiaDD

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.Slide11

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 FrameworkSlide12

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 approachSlide13

Thank you for attention!