Briefing Papers Number 13, December 2011 | Page 3

• Ensure that harmonization efforts are adapted to the country context and that donor assistance is aligned with the recipients’ priorities. • Expand country-led efforts to streamline donor procedures and practices. • Review and identify ways to adapt the policies, procedures, and practices of institutions and countries in order to facilitate harmonization. • Implement the principles and standards of good practice that were formulated by the development community as the foundation for harmonization. The Paris Declaration: Joint Progress toward Enhanced Aid Effectiveness The Paris High-Level Forum on Aid Effectiveness was held in 2005. Here, more than 100 signatories, representing partner governments, bilateral and multilateral donors, regional development banks, and international agencies, endorsed the Paris Declaration on Aid Effectiveness (the Paris Declaration). Signatories committed to specific actions that would promote the effective use of aid funds.3 The Paris Declaration grew out of a consensus on the necessity for “country ownership” of development efforts.4 Several decades of experience led the international community to the realization that development depends primarily on efforts at the country level and that aid needs to focus on facilitating these efforts—not on trying to replace them. Developing countries themselves must “own” their development. The Paris Declaration commits donor and recipient governments to enhance accountability to each other and to their citizens for development policies, strategies, and performance. There are five principles of effective aid in the Paris Declaration: 1. Ownership—developing countries exercise effective leadership in their development policies and strategies and as coordinators of their development activities. 2. Alignment—donors commit to basing their overall support on recipient countries’ national development strategies, institutions, and procedures. 3. Harmonization—donor countries work cooperatively so that their actions are more harmonized, transparent, and collectively effective. They reduce transaction costs for local partners, freeing them to focus their attention on strategic concerns rather than on the details of project management. 4. Managing for Results—developing countries and donors shift their focus to development results, and these results are measured. 5. Mutual Accountability—donors and partners are accountable for development results—actual improvements in the lives of poor people. Beyond identifying principles for effective aid, the Paris Declaration laid out a plan of action to improve the quality of aid and its impact on development. It put in place a series of implementation measures; it also established a monitoring system to assess progress and ensure that donors and recipient governments are increasing their levels of transparency and accountability. Based on the five principles, 12 indicators of aid effectiveness were selected. For each, a global-level 2005 baseline was calculated and a target 2010 value identified. [For the 12 Paris Indicators, see appendix]. The Paris Declaration’s emphasis on monitoring and Figure 1  Paris Declaration Principles MANAGING FOR RESULTS ALIGNMENT Donors-partners 3 HARMONISATION Donors-donors PARTNERS SET THE AGENDA ALIGNING WITH PARTNERS AGENDA ESTABLISHING COMMON ARRANGEMENTS USING PARTNERS’ SYSTEMS SIMPLIFYING PROCEDURES SHARING INFORMATION MUTUAL ACCOUNTABILITY OWNERSHIP Partner countries 2 5 1 4 Source: OECD. www.bread.org Bread for the World Institute  3