Aid effectiveness in Aid effectiveness in fragile statesfragile states

Integrating the Paris Integrating the Paris Declaration principles into Declaration principles into development programmingdevelopment programming

What are fragile states?What are fragile states?

– State is weakState is weak. Limited capacity to make . Limited capacity to make decisions, safeguard citizens, deliver basic decisions, safeguard citizens, deliver basic services and interact effectively with services and interact effectively with society. society.

– Ongoing conflict/lawlessnessOngoing conflict/lawlessness, or a , or a threat of a return to conflict.threat of a return to conflict.

– Society is disruptedSociety is disrupted. Unreconciled . Unreconciled grievances; disrupted social patterns; grievances; disrupted social patterns; displacement of people. displacement of people.

What does the Paris Declaration What does the Paris Declaration say?say?

PD calls on partner countries toPD calls on partner countries to– Build institutions and governance structures Build institutions and governance structures – Work with donors on planning when no national Work with donors on planning when no national

development plandevelopment plan– Encourage broad participation of national Encourage broad participation of national

actorsactors PD calls on donors toPD calls on donors to

– Harmonise when no strong govt leadershipHarmonise when no strong govt leadership– Align behind government led strategiesAlign behind government led strategies– Avoid undermining national institution buildingAvoid undermining national institution building– Use appropriate mix of aid instrumentsUse appropriate mix of aid instruments

Principles for good Principles for good international engagement in international engagement in fragile states and situationsfragile states and situations

long term vision: help national reformers build long term vision: help national reformers build effective, legitimate and resilient state institutionseffective, legitimate and resilient state institutions

10 principles:10 principles:– Take context as the starting pointTake context as the starting point– Do no harmDo no harm– Focus on state-building as the central objectiveFocus on state-building as the central objective– Prioritise preventionPrioritise prevention– Recognise political, security and development linksRecognise political, security and development links– Promote non-discriminationPromote non-discrimination– Align with local priorities in different contextsAlign with local priorities in different contexts– Agree on practical coordination mechanismsAgree on practical coordination mechanisms– Act fast, but stay engagedAct fast, but stay engaged– Avoid pockets of exclusionAvoid pockets of exclusion

Australian aid to fragile Australian aid to fragile statesstates

More than any other bilateral donorMore than any other bilateral donor

2007-08: 50% of aid program (over $1.5b)2007-08: 50% of aid program (over $1.5b)

Why? Geographical proximity, policy to Why? Geographical proximity, policy to engage more intensively with fragile states in engage more intensively with fragile states in region.region.

Strong focus on small island states in PacificStrong focus on small island states in Pacific– PNG, East Timor, Solomons, VanuatuPNG, East Timor, Solomons, Vanuatu– 40% of Solomons GNP in 200740% of Solomons GNP in 2007

How does Australia deliver aid How does Australia deliver aid in fragile states?in fragile states?

Programs centre on state-building: Programs centre on state-building: enhancing the machinery of government.enhancing the machinery of government.

variety of Australian government variety of Australian government departments involved, not just AusAID. departments involved, not just AusAID.

– Regional Assistance Mission to the Solomon Regional Assistance Mission to the Solomon Islands (RAMSI).Islands (RAMSI).

– Enhanced Cooperation Program (ECP) in Enhanced Cooperation Program (ECP) in Papua New Guinea.Papua New Guinea.

Lessons from Australia’s Lessons from Australia’s experienceexperience

2007 Annual Review of Development 2007 Annual Review of Development EffectivenessEffectiveness

MixedMixed progress: progress: – good results in establishing security and financial good results in establishing security and financial

stability. stability. – less so in health, education, employment, political less so in health, education, employment, political

stability.stability.

Weak Weak governancegovernance makes it harder to deliver makes it harder to deliver effective aid. effective aid. – Expectations need to be realistic.Expectations need to be realistic.

Working in fragile states makes aid delivery more Working in fragile states makes aid delivery more expensiveexpensive. . – This increases overheads and limits opportunities.This increases overheads and limits opportunities.

Success factors?Success factors?

SuccessSuccess requires engaging in new ways requires engaging in new ways– Working with Working with communitiescommunities to build capacity to demand to build capacity to demand

better servicesbetter services– Strengthening partner government systems by Strengthening partner government systems by using themusing them– Building Building leadershipleadership quality quality– Encouraging Encouraging better performancebetter performance by governments by governments

through compacts and incentive paymentsthrough compacts and incentive payments

Long termLong term engagement often crucial engagement often crucial

Strong understanding of local social and political Strong understanding of local social and political systems, and of systems, and of drivers of changedrivers of change within these within these systemssystems

Willingness to Willingness to think outside the boxthink outside the box – eg alternative – eg alternative service providers and non-state systemsservice providers and non-state systems

Applicability of Paris Applicability of Paris Declaration?Declaration? Weak governance makes it difficult to implement the Weak governance makes it difficult to implement the

principles of principles of ownershipownership and and alignmentalignment.  . 

– Many PD indicators not applicable (eg using partner Many PD indicators not applicable (eg using partner systems)systems)

In crisis situations, stabilityIn crisis situations, stability often needs to often needs to precede other objectives. precede other objectives.

– When this requires embedding outsiders in government When this requires embedding outsiders in government systems (eg to re-establish law and order), this can work systems (eg to re-establish law and order), this can work against the PD ‘ownership’ principle in the short term. against the PD ‘ownership’ principle in the short term.

– But in the longer-run gives systems a chance to prepare But in the longer-run gives systems a chance to prepare for more ‘pure’ Paris implementation.for more ‘pure’ Paris implementation.

Implications for Paris?Implications for Paris?

Principles for Good International EngagementPrinciples for Good International Engagement capture the early consensus on best practice capture the early consensus on best practice in fragile statesin fragile states

But future iterations should look at how to But future iterations should look at how to adapt practice to particular states/situationsadapt practice to particular states/situations– What if a country has reached a protracted political What if a country has reached a protracted political

impasse?impasse?– What if there is active conflict?What if there is active conflict?– How should reforms be sequenced? How should reforms be sequenced? – How can you pursue MDGs in a country where the How can you pursue MDGs in a country where the

state is barely functioning?state is barely functioning?