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Improving Aid Effectiveness

Improving Aid Effectiveness. Presentation by Ms. Pauline Hayes Head, Europe and Central Asia Department, DFID. Paris Declaration on Aid Effectiveness. What? Basic commitments for better use of aid When? March 2005: 91 countries, 26 international organisations

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Improving Aid Effectiveness

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  1. Improving Aid Effectiveness Presentation by Ms. Pauline Hayes Head, Europe and Central Asia Department, DFID

  2. Paris Declaration on Aid Effectiveness • What? Basic commitments for better use of aid • When? March 2005: 91 countries, 26 international organisations • Why? To help countries achieve Millennium Development Goals, increase growth and improve governance • Kyrgyz Republic: pilot country for reporting on progress against 12 aid effectiveness indicators

  3. Key Principles OWNERSHIP – putting national partners in the driving seat ALIGNMENT – donors align with partners development strategies (JCSS) HARMONISATION – donor actions more transparent and collectively effective MUTUAL ACCOUNTABILITY – government and donors jointly review progress, take action

  4. How Can We Improvein the Kyrgyz Republic? • Country Development Strategy and Sector Strategies should be linked to budget, implemented well and monitored • Strengthen national systems e.g. public financial management at national and regional levels • Donors should support via technical assistance where requested

  5. How Can Donors Improve? • Support national leadership • Use national systems where feasible • Reduce number of Project Implementation Units • Reduce bilateral missions (over 300 annually) • Increase Joint Analysis and Joint Reviews • Strengthen Donor Coordination Council - and involve the Government

  6. Success Story: Kyrgyz Health Sector • National Strategy, strong national leadership • Implementation supported by donors, (5 do so on-budget – $15M pa, plus technical assistance) • No PIU - all financial management functions done in-house • Improved MOH / MOF relations – better budgeting, auditing and procurement management • Joint monitoring of Manas Taalimi – third Health Summit last week

  7. Impact on Health Sector Performance • Improved financial management capacity within Ministry of Health • Health budget increased in 2006 after 5 years of decline, 100% execution, donor funds additional • Better health outcomes: reduced child and maternal mortality, reduced TB incidence • More people using health services • Poor people paying less

  8. Next steps • Continuously improve ways of working • JCSS – opportunity to put alignment in action • Continue to support Manas Taalimi implementation applying Paris principles • Roll out this approach to other sectors and issues • Evaluateand communicate impact, success stories • Encourage emerging donors to consider these approaches

  9. Thank you for attention! Presentation by Ms. Pauline Hayes Head, Europe and Central Asia Department, DFID

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