EuropeAid ENGAGING STRATEGICALLY WITH NON-STATE ACTORS IN NEW AID MODALITIES SESSION 1 Why this Focus on Non-State Actors in Budget Support and SPSPs? Brussels, 11 May 2011

EuropeAid Purpose of this session Introduce a topic and a publication that seek to contribute to more effective aid Answer the question why it is relevant to focus on more strategic engagement with NSAs when applying New Aid Modalities Kick-start a seminar that will help enrich the tools and get a better feel of what is useful

EuropeAid Structure of this session A. The new Reference Document B. The added value to and fit with other EC/EU policies and agendas? C. What is the basic perspective of the strategic and operational guidance you can find in this document?

EuropeAid A. Content of the new reference document Key question it seeks to answer: How can the EC o engage strategically and operationally o with both the state and non-state actors o on various development related issues o when it provides Budget Support o or engages in Sector Policy Support Programmes?

EuropeAid B. Where is the fit with other EC/EU policies or agendas? 1. Making aid more effective 3. Improving knowledge of state-society relations 2. Making aid more participatory 5

EuropeAid 1. Making aid more effective 6

EuropeAid 7 1. More effective aid and New Aid Modalities EC and other donors look for ways to make their aid more effective These efforts include among other things ways to: o Align behind country policies (if these reduce poverty) o Align behind country systems (if there are serious efforts to make these systems work for the poor) o Reduce the burden on partners (through harmonisation) o And move from government ownership to country ownership, o And from mutual to domestic accountability New Aid Modalities include Budget Support and Sector Policy Support Programmes

EuropeAid 1. Making aid more effective 2. Making aid more participatory 8

EuropeAid Participatory development Participatory development Development assistance includes support to and through NSAs Development is a multi-actor participatory process Development is a multi- stakeholder process where the central state is one of the actors NSAs are not only implementing agencies but also promoters of democracy, justice and human rights EU is committed to strengthening NSAs to fully participate in political, economic and social dialogue processes Civil Society is recognised in all its diversity 2. Participatory development and Non-State Actors

EuropeAid Potential entry points for NSA engagement with the state CLOUD CUCKOO PRS - Informing and pushing for pro-poor policies Monitoring the monitors - parliament Monitoring the implementation (of the budget, of the policies,..) Encouraging pro- poor choices in the state budget Contributing to the implementation of the policies Etc….

EuropeAid Yet in real life, many obstacles to overcome ARE YOU KIDDING? Is there political will behind pro-poor policies? Does civil society have the capacities/interest to engage with the state? Is there an enabling environment for Non-State Actors to participate? Is the budget transparent? Does it reflect priorities? Is it credible Is there an open and transparent dialogue with NSAs? Do parliamentarians respond to demands from citizens?

EuropeAid 1. Making aid more effective 3. Improving knowledge of State-society relations 2. Making aid more participatory 12

EuropeAid 3. Understanding state-society relations In order to overcome these obstacles, And in order to make and more effective and PARTICIPATORY Two more P-words matter: POWER and POLITICS What affects the opportunities for NSAs to participate? What are the relations between state and society? Who holds power over whom? Who exerts pressure on whom? Who influences whom? With what means? What are the resources, and how are these distributed? What are incentives? Why is it difficult for citizens to work collectively? (example: conditional cash transfers) What is the history? The history of struggle? The history of social or other movements? The history of repression? Page 13

EuropeAid 14 In other words: Better understanding of politics helps explain where aid has been effective and where not A political economy analysis helps to understand: o If and how state-society bargaining takes place o Whether, how and around which interests citizens organise collectively o How elites reach political settlements, for example over taxes, or over the distribution of resources such as aid o Who in and outside government backs poverty reduction strategies and sector policies, if there are coalitions or not o And whether there is a credible budget to cover the costs… This knowledge is very country or context specific

EuropeAid Such political economy analysis is already being promoted through: o the Project and Programme Cycle Management process o The Green Paper process on the Future of Budget Support and the inputs to the context analysis for the new guidelines o And the Governance Analysis Framework for sector operations 15

C. What is the basic perspective of the guidance you can find in this Resource Document? BASIC PERSPECTIVE: Treat NSAs as actors Analyze state- society relations systematically Explore and support full potential within and beyond NAM Do no Harm- Prepared to play new roles

Treat NSAs as actors in their own right Assess and analyze NSA interests, values, histories, incentives, roles, functions, governance structures Assess and analyze NSA interests, values, histories, incentives, roles, functions, governance structures Recognize the diversity of NSAs Treat NSAs as Actors

Incentivize continued learning Introduce systematically political economy and governance analysis Introduce systematically political economy and governance analysis Shift from a normative to an analytical approach Analyze state - society relations systema- tically

Assess opportunities and necessities to engage with NSAs outside of the context of new aid modalities Balance support for state and non- state actors in a purposeful way Balance support for state and non- state actors in a purposeful way Combine the full range of modalities and instruments in a strategic way Apply the principle of sequencing of support to NSAs in the context of NAMs Explore and support the full potential of NSA involvement in and beyond NAM

Prepare for playing new roles. Prepare for playing new roles. Systematically apply a political economy approach Avoid a technocratic approach to aid effectiveness and the role of NSAs Do no harm – Be prepared to play new roles

EuropeAid EC New Roles

EuropeAid The Approach Tools and guidance Treat NSAs as actors Mapping methodology Governance Analysis Framework RD: Methodological tool 1, 2, 6 Analyze state-society relations systematically Governance Analysis Framework RD: Methodological tool 4 Explore and support the full potential of NSAs involvement in and beyond NAM RD: Key questions to be posed throughout the policy cycle (chapter 4.3) RD: Methodological tool 1 RD: Dialogue with NSAs, capacity development, combining tools, instruments and approaches (chapter 4.4) Do no Harm-be prepared for new roles RD: EC new roles (chapter 6) RD: Methodological tool 5, 6, 7 D. So how do we go about it? Tools and practical guidance 22

EuropeAid E. Are there questions? Shoot (so to speak)