1. PACIFIC AID EFFECTIVENESS PRINCIPLES

2. Purpose of Presentation Provide an overview of Pacific Principles on Aid Effectiveness Provide an overview of Pacific Principles on Aid Effectiveness Implications for Development Partners and FICs Implications for Development Partners and FICs Role of Secretariat Role of Secretariat

3. Background Development partners and partner countries seek to make aid more accountable and to improve delivery approaches; Development partners and partner countries seek to make aid more accountable and to improve delivery approaches; Rome Declaration in 2003 and Paris Declaration on Aid Effectiveness and Donor Harmonization in March 2005; Rome Declaration in 2003 and Paris Declaration on Aid Effectiveness and Donor Harmonization in March 2005; Increased emphasis in the Pacific among island nations and development partners on aid effectiveness – leading to some progress in developing systems and mechanisms; Increased emphasis in the Pacific among island nations and development partners on aid effectiveness – leading to some progress in developing systems and mechanisms;

4. Background Cont… Secretariat commissioned a study on Aid Effectiveness in the Pacific following the PIC/Partners Meeting in 2004; Secretariat commissioned a study on Aid Effectiveness in the Pacific following the PIC/Partners Meeting in 2004; The study:- The study:- - called on the improvement on aid effectiveness in the region; and - recommended the need to develop a set of guiding principles to facilitate the improvement of aid effectiveness The 2005 PIC/Partners Meeting requested the secretariat to develop a set of Pacific principles The 2005 PIC/Partners Meeting requested the secretariat to develop a set of Pacific principles Work on aid effectiveness October 2005 Work on aid effectiveness October 2005 Pacific Principles endorsed at the July 2007 PIC/Partners Meeting in Koror, Palau Pacific Principles endorsed at the July 2007 PIC/Partners Meeting in Koror, Palau

5. P 1: Country leadership and ownership of development through an accountable and transparent national development planning and financial management system/ mechanism which is adequately resourced from the national budget - including longer term operation and maintenance of donor sponsored development (Paris Declaration Section 14, 19; Indicator 1, 2) Implications for Development Partners Regular dialogue with countries Regular dialogue with countries Implications for FICs Implications for FICs Lead role in coordination and priority setting - consistent with NSDS or the like; Commitment to established processes; Ensure projects in approved budget; Aid Management Agencies are adequately resourced

6. P 2:Multi-year commitments by development partners and countries aligned with nationally identified priorities as articulated in national sustainable development strategies, or the like, with agreement on performance indicators and monitoring and evaluation mechanisms (Paris Declaration Section 16, 26; Indicator 3, 5, 7) Implications for Development Partners Confidence and support for country strategies; Confidence and support for country strategies; Increased Consultation with FICs during country programme formulation; Increased Consultation with FICs during country programme formulation; Multi-year Assistance programme established; Multi-year Assistance programme established; Adoption of FIC performance indicators Adoption of FIC performance indicators Implications for FICs National priorities clearly identified; Multi-year budget frameworks; Clear procedures established; Agreement on Performance Indicators

7. P 3:Greater Pacific ownership of regional development, Development Partners’ Pacific Regional Strategies designed and formulated with the Pacific Plan and other Regional Policies as their corner stone (Paris Declaration 14, 15; Indicator 1) Implications for Development Partners Use CROP as a conduit for regional programmes; Use CROP as a conduit for regional programmes; Support demand driven priorities and greater use of established mechanisms; Support demand driven priorities and greater use of established mechanisms; Collaboration with CROP and the PP Office Collaboration with CROP and the PP Office Implications for FICs Commitment to and ownership of the Pacific Plan and Regional Initiatives Commitment to and ownership of the Pacific Plan and Regional Initiatives

8. P 4:Pacific Development Partners and Countries pursue a coordinated approach in the delivery of assistance. Encouraging harmonization will be a priority for both. (Paris Declaration 32 – 42; Indicators 9, 10) Implications for Development Partners Open up and share proposed programmes with other regional partners; Open up and share proposed programmes with other regional partners; Establish a common framework for development cooperation with multi-year programming; Establish a common framework for development cooperation with multi-year programming; Regular dialogue amongst partners; Regular dialogue amongst partners; Establish joint country missions ; Establish joint country missions ; Participate in regular round table meetings organised by countries Participate in regular round table meetings organised by countries Implications for FICs Take lead in encouraging and supporting harmonized approaches to development assistance; Take lead in encouraging and supporting harmonized approaches to development assistance; Convene annual roundtable meetings with development partners; Convene annual roundtable meetings with development partners; Hold sectoral meetings with partners Hold sectoral meetings with partners

9. P 5: Strengthened institutional mechanisms and capacity in countries to enable increased use of local systems by development partners. (Paris Declaration 17, 21, 22-24, 31; Indicator 4, 6, 8) Implications for Development Partners Untie aid and greater use of local and regional firms and consultants; Untie aid and greater use of local and regional firms and consultants; Reduce reliance on third party contractors; increase use of external TA that encourage use of local consultants; Reduce reliance on third party contractors; increase use of external TA that encourage use of local consultants; Decentralize decision making to country based staff; Decentralize decision making to country based staff; Aid delivery mechanism should be cost effective and efficient Aid delivery mechanism should be cost effective and efficient Implications for FICs In collaboration with development partners strengthen national mechanisms and capacity; Assess current systems and make them more conducive to an environment where partners can align

10. P 6 i:Provision of technical assistance (TA), including in aid coordination/management, in such a way that ensures that capacity is built with tangible benefits to the country to support national ownership. Provision of an appropriate level of counterpart resources through established procedures and mechanisms. P 6 ii: Short term TA, that addresses local skills gaps to conduct studies, are culturally sensitive. (Paris Declaration 22-24; Indicator 4)

11.  Implications for Development Partners Planning and sequencing of initiatives in line with local needs and capabilities; Planning and sequencing of initiatives in line with local needs and capabilities; Needs analysis undertaken prior to capacity building exercises; Needs analysis undertaken prior to capacity building exercises; Regular review of systems and procedures; Regular review of systems and procedures; Adequate resources made available to facilitate transfer of skills Adequate resources made available to facilitate transfer of skills Implications for FICs Develop and establish capacity and HRD policies; Develop and establish capacity and HRD policies; Commitment to established mechanisms; Commitment to established mechanisms; Policies on the use of TA in aid programmes should be developed Policies on the use of TA in aid programmes should be developed South/South technical cooperation and work exchanges in other FICs encouraged. South/South technical cooperation and work exchanges in other FICs encouraged.

12. P 7: Use of an agreed monitoring and evaluation framework that will ensure joint assessments of the implementation of agreed commitments on aid effectiveness. (Paris Declaration 43-46; Indicator 11) Implications for Development Partners Undertake joint reviews and monitoring of development programmes Undertake joint reviews and monitoring of development programmes Implications for FICs Work with development partners work together to develop and establish joint monitoring and evaluation frameworks for development activities Work with development partners work together to develop and establish joint monitoring and evaluation frameworks for development activities

13. Role of the Secretariat Provide continued support and oversight in implementation of the Principles; Provide continued support and oversight in implementation of the Principles; Continue to facilitate assistance for FICs capacity building and institutional strengthening in the area of development cooperation and aid management; Continue to facilitate assistance for FICs capacity building and institutional strengthening in the area of development cooperation and aid management; With other development partners, document best practices in aid management With other development partners, document best practices in aid management

14. Conclusion Pacific Aid Effectiveness Principles:- A set of aid effectiveness guidelines for FICs and Development Partners A set of aid effectiveness guidelines for FICs and Development Partners Principles consistent with Paris Declaration; Principles consistent with Paris Declaration; Pacific Principles timely given:- Pacific Principles timely given:- - the level of assistance to the region to date; - increase demand to make development assistance more effective; and -the regions commitment to the effective implementation of the Pacific Plan