1. EuropeAid 1 DIVISION OF LABOUR European Commission

2. EuropeAid 2 Division of Labour: EU Code of Conduct Political commitment EU as driving force for complementarity and division of labour Promote wide discussions with partner country and other donors under leadership of partner government

3. EuropeAid 3 Division of Labour: EU Code of Conduct Apply to present, future and additional ODA (scaling up); no prejudice to existing obligations Open to all donors Not at cost of global aid volumes and predictability Based on country needs; long term perspective Address imbalances of aid ‘darlings’ and ‘orphans’ Self-assess respective areas of strength before Accra Added value of EU: diversity of expertise Commission to report annually on implementation (EDF and Budget); undertake self assessment of comparative advantage

4. EuropeAid 4 EU Code of Conduct Guiding Principles 1 Maximum of three sectors in-country; plus GBS if applicable, support for civil society, research, education scholarships, etc Comparative advantage of each donor self assessed, endorsed by partner government and recognised by other donors Partner countries to identify areas for increased or reduced support and which donor to remain engaged in sector Donors to work with governments to identify sectors in which to remain and propose sectors from which they will withdraw Long term engagement in sectors

5. EuropeAid 5 EU Code of Conduct Guiding Principles 2 Redeploy funds in country based on local negotiations Where donors are in more than three sectors, either use delegated cooperation, or redeploy into GBS, or exit responsibly redeploying funds in 3 priority sectors 3 In each sector establish lead donor for all donor coordination to reduce transaction cost of government 4 Even within 3 sectors of engagement or in additional sectors enter into delegated cooperation arrangements 5 In priority sectors relevant to poverty reduction ensure adequate donor support 6 Apply principles to regional level

6. EuropeAid 6 EU Code of Conduct Guiding principles 7 Establish limited number of priority countries and in non-priority countries consider delegated authority 8 Address ‘orphans’ gap: often fragile states 9 Analyse and expand areas of strength: Commission to further develop expertise in areas of comparative advantage and, particularly at country level in line with de- concentration and ownership of partner countries 10 Other dimensions of complementarity – vertical complementarity, joint/coordinated programmes 11 Deepen reform: decentralised structure, institutional incentives and redeployment of financial and human resources

7. EuropeAid 7 Division of Labour: EU Code of Conduct Current situation – research state of play & best practises: EU Donor Atlas 2007 Compendium on Division of labour (EC- OECD/DAC) Study on EU Co-financing EU Atlas on Response to situations of fragility OECD/DAC Study on Aid fragmentation

8. EuropeAid 8 Country example: TANZANIA Donor Matrix today

9. EuropeAid 9 Country example: TANZANIA the way it could be: EU division of labour Tanzania (2): fictive scenario based on EU division of labour:

10. EuropeAid 10 Country example: TANZANIA the way it could be: donor wide division of labour Tanzania (3): fictive scenario based on donor wide division of labour:

11. EuropeAid 11 Country example TANZANIA : Clear need for division of labour 40-plus donors, high transaction cost, Government with low capacity Government enthusiasm at high level Multi-stakeholder ownership of 2 nd generation PRS (the source document) Move towards enhanced budget support (hence PFM, budget procedures, procurement etc..)

12. EuropeAid 12 Country example Tanzania: the process so far Comprehensive process for all donors Joint Assistance Strategy Tanzania (JAST) is meant to be a comprehensive process, should integrate EU harmonisation and one-UN harmonisation Joint country analysis, joint risk analysis, joint response strategy and donor-specific annexes Results based joint monitoring and evaluation Consensus document Acceptance of JAS joint programming document for own Commission programming document

13. EuropeAid 13 Country example Tanzania: Key issues for next steps Refining, deepening Division of Labour Lead and active donor status (small agencies, strong agencies, ‘natural chair’ ambition of UN) Delegated cooperation/silent partnerships Changing donor behaviour Refine and deepen review and evaluation Involving other stakeholders (non state actors) Including other donors (China)

14. EuropeAid 14 Fast tracking division of labour Initiative by Comm. L. Michel Identification of countries with potential for possible delegation between EC and MS and lead donorship at sector level (EU Code of Conduct principles 3 and 4):  Many MS present  Based on comparative advantage  Information from EC Delegations Initiative by MS and EC to facilitate division of labour on the ground

15. EuropeAid 15 Countries for fast tracking DoL Bolivia(LM)Burundi(LM) NicaraguaCameroon Haiti(LM)CAR BangladeshEthiopia(LM) Cambodia(LM)Ghana PakistanKenya(LM) Vietnam(LM)Madagascar Laos (LM)Mali(LM) AlbaniaMalawi(LM) Kyrgyz Rep.Mozambique(LM) FYROMRwanda MoldovaSenegal Mongolia,Sierra Leone BeninTanzania Burkina FasoUganda(LM) Zambia(LM)

16. EuropeAid 16 Fast tracking Division of Labour Next steps : Facilitators (MS/EC) to push for Division of Labour on the ground with EU donors (and other donors) Consultations on the ground, working out DoL - with partner country government - with Member States (and other donors) Further analyse feasability for Delegated Cooperation of EC with MS For delegated cooperation: where possible proceed to concrete steps: - ex ante assessment by AIDCO (if not yet done) - work out contractual arrangements