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Male circumcision reduces AIDS risk

German volunteers in developing countries

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Debate on impact of Paris Declaration

Much remains unresolved in EPA talks

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Fewer wars and cases of genocide


02/2007
 

[ Development cooperation ]

Debate on impact of Paris Declaration

The question of whether the OECD’s Paris Declaration on Aid Effectiveness of 2005 marked a step in the right direction is still open for the time being – at least until April this year. That is when the OECD intends to present the first report on the implementation of the Declaration’s various measures. 37 countries have announced their willingness to take part in this first survey. The most important keywords are “ownership” for target countries, “harmonisation” of donors and their “alignment” with target-county procedures.

Development experts are currently still wavering between cautious optimism and great skepticism. At a panel discussion held by the KfW development bank in January in Berlin, however, the representatives of government agencies agreed that the spirit of the Paris Declaration is heading in the right direction.

Carlos dos Santos, ambassador of the Republic of Mozambique, considers the Declaration a “pioneering document”, departing from donor assistance tied to conditions, and focussing instead on objectives both sides share. However, he worries about a lack of capacity in governments and local institutions. In his view, more capacity building is needed because truly accountable action is only possible once there is enough qualified staff. Dos Santos feels an urgent need for donor action in this field.

Jan Cedergren, chairman of the OECD-DAC Working Party on Aid Effectiveness, regards the Paris Declaration as just one instrument of many to improve international cooperation: “It cannot solve all the problems.” In his view, there is no getting around harmonising donors’ involvement. Interim findings show that 31 target countries have to deal with some 11,000 donor delegations every year, and Cedergren considers these numbers unacceptable. Moreover, donor strategies often seem quite removed from on-the-spot reality in poor countries. Therefore, the OECD expert believes technical cooperation should become more geared towards target-country needs.

Günter Bonnet of the German Development Ministry (BMZ) calls the Paris Declaration a “guideline for our own reform processes”. As he admits, some issues remain unresolved, above all relating to budget support, an innovative instrument promoted by the Paris Declaration. For instance, it has been extremely difficult, to get approval from Germany’s Bundestag (the parliament) and the Federal Ministry of Finance for directly subsidising the national budget of Mozambique. Today, the BMZ spends up to ¤350 million per year on budget support. “It still needs to be assessed how effective this instrument is,” says Bonnet.

Hans-Joachim Preuss, secretary general of German Agro Action, a non-governmental charity, expresses more skepticism. He refuses to join in the general praise of the Paris Declaration. He maintains it focuses too much on procedural issues and pays too little attention to whether aid really reaches the poor. With regard to budget support, Preuss warns against introducing new instruments too hastily. “There are some countries that meet the preconditions, but many others do not.” He cited Sudan and the DR Congo as countries unfit for budget support. All panel participants agreed that donors have no base for budget support in places where there is a prevailing culture of corruption.

Petra Meyer