Aid Effectiveness Unit Economic Relations Division (ERD) Ministry of Finance 06 July 2010

1. Joint Cooperation Strategy“How to work more effectively together todeliver real development outcomes” Aid Effectiveness Unit Economic Relations Division (ERD) Ministry of Finance 06 July 2010

2. Bangladesh • Population, 140 million • Population growth (annual %) 1.4 • Poverty headcount ratio 40.0 • School enrollment, primary 91.4 • Literacy rate, 53.5 • GNI per capita, (current US$) 520.0 • GDP per capita growth (annual %) 6.51

3. Development Vision of the Govt. The government has adopted a long term vision for the development of the country that will be reflected in the long term Perspective Plan (2010-2021). The Perspective Plan has some specific objectives: • Eliminate illiteracy by 2014; • Attain cent percent enrolment in the 12th class by 2021 with gender parity; • Reduce poverty to 15% or less by 2021; • Strengthen IT to establish a digital Bangladesh; • Emphasise energy availability to provide per capita energy consumption of about 600 kWh by 2021; • The nation wants to be a prosperous middle income country by 2021;

4. National Development Strategy /PRSP This Strategy would emphasise: • Accelerated Economic Growth; • Employment Creation; • Universal Social Protection for the Hardcore Poor; • Role of Market, State & Community to be harmonized; • PPP to be encouraged to invigorate private investment; • Regional and Sub-Regional Connectivity for making Bangladesh an open economy; • Gender Responsive Plan;

5. PRSP (contd) • Technology base to be strengthened for ‘Digital Bangladesh’; • Human Resources Development will receive top most priority; • Environment and Climate Change adaptation mechanism to be ensured; • Good Governance, Human Rights and Democratic Polity to be ensured; • Least-Cost National Security systems to be adopted; • Effective Implementation and Monitoring will receive priority.

6. Joint Cooperation Strategy A landmark in the history of development cooperation A framework for well-coordinated relationship between GoB and DPs in support of the national strategy on poverty reduction/5-Year Plan JCS concept, process and action plans emerged from PD principles and Accra Agenda for Action (AAA) on aid effectiveness

7. JCS: Make Paris/Accra Real in Bangladesh • Need commitments and real action from both sides • Improving aid effectiveness to deliver development outcomes for the population (reduce transaction costs by joining design work, review missions, avoid project implementation units, joined up analysis and evaluation)

8. JCS: Make Paris/Accra Real in Bangladesh (cont) • Targets from both side • Support implementation of national development priorities to improve implementation and achieve MDGs • Collaborate effectively at project, programme, sector and national coordination levels (LCG, sector programme, pooled funding, etc.) • Avoid duplication (too many missions, ad-hoc demands)

9. Joint Cooperation Strategy (JCS) • Statement of Intent (2008) on JCS: * Presented at 3rd HLF in Accra • Basis of understanding * Jointly formulate JCS - to improve aid effectiveness - to enhance capacity for implementation of PRS - to reduce poverty and to achieve MDGs * Jointly committed to share responsibility • GoB: Strong leadership to fully implement Paris, PRS, Key reforms, like MTBF and ADP implementation • DP: Support GoB leadership and PRS implementation - Align with GOB policies, strategies, systems, procedures - Harmonise on the basis of Division of Labour • Shared results framework and monitoring.

10. JCS process JCS Roadmap agreed in 2008, for signing final JCS Doc in 2010 GoB-DP JCS Working Group established for JCS drafting and consultations JCS consultations among the DPs in 2009 GoB internal consultations in 2009 & in early 2010 Active participation of GoB in regional and global Aid Effectiveness meetings Bangladesh Development Forum endorsement of JCS process in February 2010

11. JCS Objectives To improve the way how GoB and DPs can work together in making aid more effective To ensure effective dialogue and coordination mechanism (BDF, LCG) To result in well-harmonised and well- coordinated programmes in support of GoB’s national and sector strategies

12. Aid Effectiveness Challenges Some progress in improving aid effectiveness, but significant challenges remain: - Improve GoB capacity to manage aid programmes: prepare, implement and monitor - Improve GoB-DP coordination and follow up/ monitoring, - Improve DP alignment to GoB systems and procedures - Reduce fragmentation of DP-supported projects, leading to high transaction costs - Improve mutual accountability and predictability of DP aid flows

13. Change the way we do business Making aid more effective to improve “real development outcomes”: - Strengthen aid related dialogue and coordination in line with Paris and Accra commitments, - DPs to ensure coordinated support in GOB’s capacity and skill development initiatives through continuous reforms (incl. PFM, CSR, decentralisation) - Further rationalisation of sector programmes (health, education, climate change etc) - GOB to streamline project approval and implementation processes

14. Partnership Principles The Government of Bangladesh will: - Exercise ownership and leadership, based on national and sector strategies,- Implement prioritised, balanced and results-oriented operational programmes (MTBF, ADP), - Broaden inclusive partnership with DPs, and civil society/private sector for aid coordination- Implement key reform programmes, including governance and socio-economic management

15. Partnership Principles (Contd.) Development Partners will: - Respect GoB leadership, support development programmes and provide assistance to strengthen GoB capacity, including aid management and public financial management,- Align with GoB’s policies and strategies and increase the use of GoB systems and procedures,- Ensure complementarity of aid modalities and align support to the Medium Term Budgetary Framework (MTBF),- Ensure improved predictability of funds by sharing timely information on utilisation and commitments

16. Partnership Principles (Contd.) GoB and DPs will jointly:- Implement the JCS Action Plan to improve aid effectiveness,- Jointly monitor progress and hold each other accountable on the basis of the JCS, the BDF Action Plan and the upcoming joint “Development Results Framework”

17. How do we achieve it? Key mechanisms:- Regular high level (incl. BDF) and LCG sector dialogue, - Regular monitoring of the progress of JCS Action Plan

18. JCS Action Plan Ownership: 5 Year Plan, BDF, Aid mgt review, capacity support on aid mgt planned. Alignment: Public Financial Management (PFM), project approval review, implementation process improved, reduce parallel Project Implementation Unit Harmonisation: New sector programmes Health and Primary Education 2011, possible programme based approaches in other sectors, DPs considering division of labour/sector rationalisation

19. JCS Action Plan (Contd…) Managing for Development Results: GoB-DP LCG structure revised; fitting GoB’s ways of working, joined up initiative for “Development Results Framework” based on national and sector strategies, Mutual Accountability: Annual BDF, with action points; LCG Aid Effectiveness Working Group established, Paris Declaration Evaluation conducted 2010, participate in HLF on AE in South Korea 2011.

20. How do we measure success? Monitoring and Evaluation JCS signed in 2nd June 2010 Follow up of BDF in September 2010 – Stock take of progress – 5 Year Plan, JCS Bangladesh part of “Paris Declaration Evaluation 2010”: assess in-country progress Participation in next DAC Survey 2011 Keep update with background documents for the High Level Meeting on Aid Effectiveness in South Korea 2011

21. Let’s now continue to improve further how we work together. Thank you