An Action Plan for Aid Effectiveness 1. Introduction 2. Current DAC/DCD Work on Aid Effectiveness

An Action Plan for Aid Effectiveness I 27 Enhancing the effectiveness of aid to promote sustainable development is an essential challenge to meet in order to achieve the Millennium Development Goals. Work in the Development Assistance Committee is thus focusing closely on the issue of aid effectiveness. This section of the Report provides an overview of DAC work in the area, emphasising the linkages between the aid effectiveness agenda and the work plans of the DAC subsidiary bodies.

1. Introduction of all the DAC subsidiary bodies. It identifies directions for future work and highlights mproving the effectiveness of aid is a issues for further consideration. I fundamental objective of the international community, as it strives to imple- The figure below illustrates the linkages ment the Monterrey Consensus. It entails between the various current work clusters improving the content, management and within the DAC and aid effectiveness. delivery of development co-operation activities to ensure that available resources are exploited to the maximum. 2. Current DAC/DCD work on aid effectiveness Work in the Development Assistance Committee (DAC) is thus focusing closely on Peer review and evaluation the crucial issue of aid effectiveness. The of donors’ policies and programmes opening section of this year’s annual Develop- ment Co-operation Report provides an overview DAC members’ development co-operation of work in the DAC/DCD on aid effective- policies and programmes are monitored ness, emphasising the linkages between the and assessed in the peer reviews. Donors’ aid effectiveness agenda and the work plans policies and performance are analysed on

Aid effectiveness: Links with current DAC/DCD work clusters

Other policy areas

Policy coherence Peer reviews

Evaluation

Improving aid effectiveness Improving aid modalities and donor practices

Developing policy guidance Data collection, indicators, in key sectors and for and statistical capacity building cross-cutting Issues

the basis of agreed DAC principles and Statistical capacity building in devel- guidelines and the objectives of the mem- oping countries is promoted through ber under review. The peer reviews bring PARIS21,2 including via task teams on in real-time information on donor policies indicators of capacity, co-ordinating the and experience to inform DAC processes strengthening of statistical sources for and work in other areas. indicators for the MDGs, and on indicators of governance. Box II.4 in the next In evaluation work, the effectiveness of section provides further details on the aid programmes and aid delivery modali- work of PARIS21. ties is assessed. The work results in syn- thesis studies on themes or sectors, and in improved practices and methodology for Improving aid modalities assessing effectiveness. and donor practices Harmonising donor practices means reducing transaction costs and making Data collection, indicators co-ordination function more effectively. and statistical capacity building The DAC Task Force on Donor Practices has produced a report, Harmonising Donor Current work includes collaboration Practices for Effective Aid Delivery – Good with the United Nations Expert Group Practice Papers (GPPs), which – if the prac- on the Millennium Development Goal tices recommended therein are applied (MDG) indicators to provide analysis by donors, with full consideration for the and data for the seven indicators for circumstances in each partner country – which the OECD is the source,1 and work could significantly reduce transaction with international agencies and bilateral costs while sustaining or even improving donors to aim for consistency in indica- aid performance. Highlights from one of tors of aid effectiveness, linked to inter- these six papers – A Framework for Donor mediate and outcome indicators for the Co-operation – are reproduced in Section III. MDGs. A special module is included at the end of Part II of the Report which The implementation of the 2001 DAC provides details on progress with the Recommendation on Untying ODA to the Least MDGs during the 1990s. Data on official Developed Countries3 will ensure better value and private flows is regularly collected for money through enhanced competition to analyse the contribution of aid inputs and locally owned procurement systems. to development outcomes. Proposals for joint DAC/World Bank work on

1. Indicator 33: Net ODA, total and to LDCs, as percentage of OECD/DAC donors’ gross national income. Indicator 34: Proportion of total bilateral, sector-allocable ODA of OECD/DAC donors to basic social services (basic education, primary health care, nutrition, safe water and sanitation). Indicator 35: Proportion of bilateral ODA of OECD/DAC donors that is untied. Indicator 36: ODA received in landlocked countries as proportion of their GNIs. Indicator 37: ODA received in small island developing States as proportion of their GNIs. Indicator 40: Agricultural support estimate for OECD countries as percentage of their GDP. Indicator 41: Proportion of ODA provided to help build trade capacity. 2. PARIS21: Partnership in Statistics for Development in the 21st Century, a Consortium hosted at OECD’s Development Co-operation Directorate. 3. See www.oecd.org/dac

29 strengthening procurement capacities in In 2001, a joint DAC/Development developing countries are also being consid- Centre expert seminar emphasised the ered. impacts of both a conducive policy environment and the incidence and extent of Results management means aiming poverty in partner countries as aid alloca- for better results in the field and tion criteria to effectively reduce income improving outcomes through strength- poverty. Analysis is now going beyond the ened focus on results in planning, oper- dimensions of policies and institutions ations and daily management practices. with an expert seminar on aid effective- Managing for development results and ness and selectivity planned for aid effectiveness was the theme of the March 2003 (see “Aid management” DAC 2002 Development Partnership Forum. below). Section II provides an overview of the main topics examined at the Forum. Policy coherence and aid effectiveness

Developing policy guidance and Policy coherence is a major determi- improving co-ordination nant of the development effectiveness of aid. Aid is by no means the only factor The DAC Poverty Reduction Network impacting on economic development in has developed a Reference Document, Pov- developing countries. The focus on policy erty and Health, highlights of which are repro- coherence attempts to broaden under- duced in Section VIII, Investing in Health to standing of the development process. It Reduce Poverty. Work on rural poverty, the involves OECD policies in areas such as role of the private sector in poverty reduc- trade, finance, food and agriculture, natu- tion, and on agriculture is also underway. ral resources and environment, conflict prevention, terrorism, social polices, and The DAC Network on Conflict Peace arrangements in donor governments for and Development Co-operation is working addressing coherence issues. on the issue of terrorism prevention, and will submit a policy note – A Development DAC peer reviews focus on issues Co-operation Lens on Terrorism Prevention – to related to policy coherence and each the DAC 2003 High Level Meeting. This donor review now systematically includes work supplements previous work of the a section on policy coherence. Policy Network on conflict prevention. coherence is also a specific topic of DAC discussions in all peer review meetings. Work is also focusing on aid effectiveness Section V shows how individual DAC in difficult partnerships, i.e. situations where members are applying the principles of the “partnership model” is difficult or impos- policy coherence in their aid programmes. sible to apply. In October 2002, a workshop on Working for Development in Difficult Partnerships was organised jointly with the World Bank. 3. Future directions Section VII of the Report presents the basic findings of the workshop. The figure below highlights some future key building blocks in the area of aid effectiveness, based on current work in the DAC.

Aid effectiveness: Building blocks for future work

IMPROVING AID EFFECTIVENESS – Moving forward the joint agenda

Peer review Measurement Aid Policy Policy and evaluation issues management co-ordination coherence

Peer review and evaluation capacities and methods need to be developed and adapted. This will be part of the The Client Survey on Peer Reviews, future work of the DAC Working Party on undertaken in 2002, confirmed the bene- Aid Evaluation. fits members can draw from the DAC peer review process. It also outlined areas for improvement, and the importance of shar- Measuring aid effectiveness ing experience and lessons, of accurate methodology and specific thematic cover- Most of the MDGs are long term and age. Analytical assessment frameworks focused on outcomes. Intermediate mea- with outcome-oriented standards will be sures of development progress at the global strengthened to help assess the effective- and country level are needed to provide a ness of donor agencies, and joint country real-time demonstration of progress towards assessments will be a standing feature of the achievement of the MDGs. This also the peer review process. More attention involves work on indicators to demonstrate will also be given to a continuous learning how effectively ODA is contributing to process on the basis of the peer reviews. sustainable development. Section V provides more detailed background on the Client Survey. Further strengthening of partner country Greater emphasis is needed in future capacities for data collection and analysis peer review work to implement joint is an important part of the measurement evaluations to meet the demand for component of aid effectiveness work. The accountability at higher levels and for com- partnership operations of PARIS21 aim to bined donor outcomes. This will require foster these key capacities (see Box II-4). changes in the application of aid evaluation in aid agencies. Policies and programmes Measuring governance through the need to be subject to the reality checks of development of governance indicators evaluation and, in turn, evaluation findings and assessment methodologies is another and evidence need to inform the formula- area for future DAC work closely related to tion of new policies and programmes. What aid effectiveness. The DAC Network on works and why are key questions, and as aid Good Governance and Capacity Building, instruments and policies evolve, evaluation or successor body,4 will carry out this work.

4. In 2002, in the context of OECD reform, all DAC subsidiary bodies were reviewed. Discussions are con- tinuing in the DAC and the results of the review will be implemented in the 2003-2004 work programme. The status and work programmes of current DAC subsidiary bodies are thus evolving (see the DAC at Work annex).

Aid management increase aid effectiveness by sharing analytical approaches and good practice on The next phase of donor practices and aid allocations. procedures may focus on the implementation of agreed good practice by members and partners. The role of the DAC would Policy co-ordination be to monitor the implementation of the poverty reduction strategy process and to Effective aid in support of poverty show how donor instruments and proce- reduction and the achievement of the dures can respond to partner country MDGs needs to include strong support for needs and priorities and contribute to pro-poor growth, as set out in the co-ordinated and streamlined develop- 2001 DAC Guidelines on Poverty Reduction. ment co-operation programmes. Proposals Further DAC work on promoting pro-poor for future DAC work on implementing pov- growth has been initiated in the areas of erty reduction strategies to strengthen agricultural and private sector develop- development effectiveness are currently ment and trade capacity building. Invest- being developed. ment and Information Communication Technologies (ICTs) are other important The focus of work on aid untying is the related areas envisaged for future DAC implementation of the 2001 Recommen- work, with the aim of developing good dation, in particular untying of agreed practice guidance to promote pro-poor activities, ex ante notification of untied growth through development co-operation offers, and promoting effort sharing. Major in these areas and to identify linkages work is also underway on strengthening between them and broader work in the developing country capacities for procure- OECD. This work would be undertaken by ment, including assessing implications for the DAC Poverty Reduction Network, or improved donor co-ordination. This work successor body. will be undertaken by the DAC Working Party on Financial Aspects of Development Improving development outcomes Assistance, or successor body. through a more systematic integration of the gender perspective into the main- As results-based management (RBM) stream of government activities is a con- systems evolve, it will be important to tinuing challenge. Further analytical work keep a close watch on this area and to is needed to deepen and build on evi- analyse and assess emerging lessons to dence gathered on the efficiency and promote collective learning. Managing for effectiveness of various approaches, results was the key theme of the 2002 DAC methodologies and instruments, Development Partnership Forum (presented in e.g. gender-sensitive budgeting in national Section II). The DAC Working Party on Aid budgets and gender auditing to promote Evaluation, as well as other DAC subsid- organisation learning. Further solid find- iary bodies, will draw lessons from the ings and lessons would be useful in order Forum for their future work-paths. to both demonstrate and replicate suc- cessful approaches. This and work on gen- An expert seminar, Aid effectiveness and der indicators for monitoring the MDGs selectivity: integrating multiple objectives into aid allo- will be part of the future work of the DAC cations, held in March 2003, provided support Working Party on Gender Equality, or for DAC members in their efforts to successor body.

Improving aid effectiveness in coun- sustainable development and poverty tries with poor governance, including reduction strategies, including through Pov- those prone to conflict or in fragile situa- erty Reduction Strategy Papers (PRSPs). To tions, is a major policy and operational support this process, the DAC Working concern of DAC members. The results of Party on Development Co-operation and the joint World Bank/DAC/EC/UNDP Work- Environment, or successor body, will be shop, held on 28-29 October 2002, point to working on financing poverty reduction the need for further assessment work to through environmental fiscal reforms and refine delivery content, methods and market-based instruments. instruments for working in order to maximise aid effectiveness in such environ- Used in the right way and adapted to ments. A “Learning and Advisory Group on local needs, Information and Communica- Difficult Partnerships” has been proposed, tion Technology (ICT) has an enormous to be set up in collaboration with the potential to transform societies and thus World Bank under the aegis of the DAC needs to be seen by donors as critical to Network on Good Governance and Capac- the effective delivery of their aid. The joint ity Building, or successor body, in close OECD/UN/World Bank Forum, Integrating ICT collaboration with the DAC Network on in Development Programmes, on 4-5 March Conflict, Peace and Development 2003, discussed how ICT can improve social Co-operation (see Section VII). Other key and economic development and enhance governance areas include enhancing aid effectiveness. co-ordinated donor approaches in support of capacity development, public sector reform, the rule of law and the fight against Policy coherence corruption. Further work could be pursued to iden- The countries most unlikely to meet the tify how policy coherence can contribute to MDGs are those in conflict. Aid effective- increased aid effectiveness, working with ness must take account of the costs, nation- different policy communities to obtain bet- ally and regionally, of countries sinking into ter results. The aim is to avoid policy inco- conflict or becoming “failed states”. The herence, i.e. different policies pulling in DAC Network on Conflict, Peace and Devel- different directions, and to identify syner- opment Co-operation is developing a set of gies between development co-operation tools based on members’ approaches to and other policy areas. Focus could be on mainstreaming conflict analysis in their trade (the Doha Development Agenda), work, including the 2001 DAC Guidelines investment (implementing the Monterrey on Helping Prevent Violent Conflict,5 and to Consensus) and agriculture. Future work developing more effective and coherent could also include strengthening ODA/FDI policy responses to conflict situations. linkages, such as promoting public-private partnerships. One crucial area for such part- The Plan of Implementation of the World nerships in developing countries is support Summit on Sustainable Development to water and sanitation services. Section IX highlights the urgent need to integrate discusses this issue.

5. See www.oecd.org/dac/governance/conflict

Following the 2002 OECD Ministerial This opening section of the Report has Council Meeting Statement, OECD Action outlined the range of issues linked to the for a Shared Development Agenda,6 DCD aid effectiveness agenda. The remaining work in collaboration with the OECD’s sections in Part 1 of the Report – Managing internal Liaison Network on Policy for Development Results and Aid Effectiveness, and Coherence will report on the develop- Harmonising Donor Practices for Effective Aid ment dimensions of OECD policies and Delivery – present the aid effectiveness their impact on developing countries agenda in the light of two important Com- and develop proposals to strengthen mittee products: the 2002 DAC Development policy coherence for development in Partnership Forum which focused in depth on priority areas. the issue of aid effectiveness; and the DAC Task Force on Donor Practices’ work on the harmonisation of donors’ aid programmes. 4. Conclusion Part II of the Report addresses in greater detail how the peer review process – at Enhancing the effectiveness of aid to both the level of the OECD and the DAC – promote sustainable development is an and the individual and collective efforts of essential challenge to meet in order to DAC members can enhance the develop- achieve the Millennium Development ment effectiveness of aid, while Part III Goals. Aid effectiveness is a vast subject focuses on some specific areas where the comprising many cross-cutting issues effective use of aid is crucial – the health which the DAC is increasingly endeavour- and water/sanitation sectors. Part IV, The ing to cover in its programme of work. To DAC at Work, provides details on the work move forward on aid effectiveness, syner- programmes of the individual DAC subsid- gies must be found between members’ iary bodies in 2001-2002, while the Statistical individual efforts to improve the effective- Annex provides essential statistical informa- ness of their programmes and the collection showing how DAC members’ aid is tive aid effectiveness agenda that the being used, and where it could be used Committee supports. more effectively.

6. See MCM news release at www.oecd.org [PAC/COM/NEWS(2002)58] and annex to the Chairman’s Overview.

319 2002 Development Co-operation Report

320 Glossary of Key Terms and Concepts (Cross-references are given in CAPITALS)

AID: The words “aid” and “assistance” in CONCESSIONALITY LEVEL: A measure this publication refer only to flows which of the “softness” of a credit reflecting the qualify as OFFICIAL DEVELOPMENT benefit to the borrower compared to a ASSISTANCE (ODA) or OFFICIAL AID LOAN at market rate (cf. GRANT ELE- (OA). MENT). Technically, it is calculated as the difference between the nominal value of AMORTIZATION: Repayments of princi- a TIED AID credit and the present value pal on a LOAN. Does not include interest of the debt service as of the date of DIS- payments. BURSEMENT, calculated at a discount rate applicable to the currency of the ASSOCIATED FINANCING: The combina- transaction and expressed as a percent- tion of OFFICIAL DEVELOPMENT ASSIS- age of the nominal value. TANCE, whether GRANTS or LOANS, with any other funding to form finance pack- DAC (DEVELOPMENT ASSISTANCE ages. Associated Financing packages are COMMITTEE): The committee of the subject to the same criteria of conces- OECD which deals with development co- sionality, developmental relevance and operation matters. A description of its recipient country eligibility as TIED AID aims and a list of its Members are given credits. at the front of this volume.

BILATERAL: See TOTAL RECEIPTS. DAC LIST: See RECIPIENT COUNTRIES AND TERRITORIES. CLAIM: The entitlement of a creditor to repayment of a LOAN; by extension, the DEBT REORGANISATION (also: loan itself or the outstanding amount RESTRUCTURING): Any action officially thereof. agreed between creditor and debtor that alters the terms previously established COMMITMENT: A firm obligation, for repayment. This may include forgive- expressed in writing and backed by the ness (extinction of the LOAN), or necessary funds, undertaken by an offi- rescheduling which can be implemented cial donor to provide specified assistance either by revising the repayment sched- to a recipient country or a multilateral ule or extending a new refinancing loan. organisation. Bilateral commitments are See also “Notes on Definitions and Mea- recorded in the full amount of expected surement” below. transfer, irrespective of the time required for the completion of DISBURSEMENTS. DISBURSEMENT: The release of funds Commitments to multilateral organisa- to, or the purchase of goods or services tions are reported as the sum of i) any for a recipient; by extension, the amount disbursements in the year in question thus spent. Disbursements record the which have not previously been notified actual international transfer of financial as commitments and ii) expected dis- resources, or of goods or services valued bursements in the following year. at the cost to the donor. In the case of

321 activities carried out in donor countries, tiplied by its grant element, the result is such as training, administration or public referred to as the grant equivalent of awareness programmes, disbursement is that loan (cf. CONCESSIONALITY LEVEL). taken to have occurred when the funds (Note: the grant element concept is not have been transferred to the service pro- applied to the non-concessional (“hard vider or the recipient. They may be window”) operations of the multilateral recorded gross (the total amount dis- development banks.) bursed over a given accounting period) or net (the gross amount less any repay- GRANT-LIKE FLOW: A transaction in ments of LOAN principal or recoveries on which the donor country retains formal GRANTS received during the same title to repayment but has expressed its period). intention in the COMMITMENT to hold the proceeds of repayment in the bor- EXPORT CREDITS: LOANS for the pur- rowing country for the benefit of that pose of trade and which are not repre- country. sented by a negotiable instrument. They may be extended by the official or the LOANS: Transfers for which repayment is private sector. If extended by the private required. Only loans with MATURITIES of sector, they may be supported by official over one year are included in DAC statis- guarantees. tics. Data on net loans include deduc- tions for repayments of principal (but not GRACE PERIOD: See GRANT ELEMENT. payment of interest) on earlier loans. This means that when a loan has been GRANTS: Transfers made in cash, goods fully repaid, its effect on total NET or services for which no repayment is FLOWS over the life of the loan is zero. required. LONG-TERM: Used of LOANS with an GRANT ELEMENT: Reflects the financial original or extended MATURITY of more terms of a COMMITMENT: interest rate, than one year. MATURITY and grace period (interval to first repayment of capital). It measures MATURITY: The date at which the final the concessionality of a LOAN, expressed repayment of a LOAN is due; by exten- as the percentage by which the present sion, the duration of the loan. value of the expected stream of repayments falls short of the repayments that MULTILATERAL AGENCIES: In DAC sta- would have been generated at a given tistics, those international institutions reference rate of interest. The reference with governmental membership which rate is 10% in DAC statistics. This rate was conduct all or a significant part of their selected as a proxy for the marginal effi- activities in favour of development and ciency of domestic investment, i.e. an aid recipient countries. They include indication of the opportunity cost to the multilateral development banks donor of making the funds available. (e.g. World Bank, regional development Thus, the grant element is nil for a loan banks), United Nations agencies, and carrying an interest rate of 10%; it is 100% regional groupings (e.g. certain European for a GRANT; and it lies between these Community and Arab agencies). A contri- two limits for a loan at less than 10% bution by a DAC member to such an interest. If the face value of a loan is mul- agency is deemed to be multilateral if it

322

is pooled with other contributions and the forgiveness of loans originally disbursed at the discretion of the agency. extended for military purposes, see Unless otherwise indicated, capital sub- “Notes on Definitions and Measure- scriptions to multilateral development ment” below. banks are presented on a deposit basis, i.e. in the amount and as at the date of OFFICIAL DEVELOPMENT FINANCE lodgement of the relevant letter of credit (ODF): Used in measuring the inflow of or other negotiable instrument. Limited resources to recipient countries: includes data are available on an encashment a) bilateral ODA, b) GRANTS and conces- basis, i.e. at the date and in the amount sional and non-concessional develop- of each drawing made by the agency on ment lending by multilateral financial letters or other instruments. institutions, and c) those OTHER OFFI- CIAL FLOWS which are considered devel- NET FLOW: The total amount disbursed opmental (including refinancing LOANS) over a given accounting period, less but which have too low a GRANT ELE- repayments of LOAN principal during the MENT to qualify as ODA. same period, no account being taken of interest. OFFSHORE BANKING CENTRES: Coun- tries or territories whose financial institu- NET TRANSFER: In DAC statistics, NET tions deal primarily with non-residents. FLOW minus payments of interest. OTHER OFFICIAL FLOWS (OOF): Trans- OFFICIAL AID (OA): Flows which meet the actions by the official sector with coun- conditions of eligibility for inclusion in tries on the DAC List of Aid Recipients OFFICIAL DEVELOPMENT ASSISTANCE, which do not meet the conditions for eli- except that the recipients are on Part II of gibility as OFFICIAL DEVELOPMENT the DAC List of Aid Recipients (see RECIPI- ASSISTANCE or OFFICIAL AID, either ENT COUNTRIES AND TERRITORIES). because they are not primarily aimed at development, or because they have a OFFICIAL DEVELOPMENT ASSISTANCE GRANT ELEMENT of less than 25%. (ODA): GRANTS or LOANS to countries and territories on Part I of the DAC List of PARTIALLY UNTIED AID: Official Develop- Aid Recipients (developing countries) ment Assistance for which the associated which are: goods and services must be procured in the donor country or among a restricted • Undertaken by the official sector. group of other countries, which must however include substantially all recipient • With promotion of economic develop- countries. Partially untied aid is subject to ment and welfare as the main objective. the same disciplines as TIED AID credits and ASSOCIATED FINANCING. • At concessional financial terms (if a loan, having a GRANT ELEMENT of at least 25%). PRIVATE FLOWS: Consist of flows at market terms financed out of private sector In addition to financial flows, TECHNICAL resources (i.e. changes in holdings of pri- CO-OPERATION is included in aid. vate LONG-TERM assets held by resi- Grants, loans and credits for military pur- dents of the reporting country) and private poses are excluded. For the treatment of grants (i.e. grants by non-governmental

323 organisations, net of subsidies received • Securities of multilateral agencies: This from the official sector). In presentations covers the transactions of the private focusing on the receipts of recipient coun- non-bank and bank sector in bonds, deben- tries, flows at market terms are shown as tures etc. issued by multilateral institutions. follows: • Bilateral portfolio investment and other: Includes bank lending and the purchase of • Direct investment: Investment made to shares, bonds and real estate. acquire or add to a lasting interest in an enterprise in a country on the DAC List of RECIPIENT COUNTRIES AND TERRITO- Aid Recipients (see RECIPIENT COUN- RIES: The DAC List of Aid Recipients used TRIES AND TERRITORIES). “Lasting inter- to compile the statistics in this volume is est” implies a long-term relationship shown separately at the end of this publica- where the direct investor has a significant tion. Some details about recent changes in influence on the management of the the List are given in the “Notes on Defini- enterprise, reflected by ownership of at tions and Measurement” below. From least 10% of the shares, or equivalent vot- 1 January 2000, Part I of the List is pre- ing power or other means of control. In sented in the following categories (the practice it is recorded as the change in word “countries” includes territories): the net worth of a subsidiary in a recipient country to the parent company, as • LDCs: Least Developed Countries. shown in the books of the latter. Group established by the United Nations. To be classified as an LDC, • International bank lending: Net lend- countries must fall below thresholds ing to countries on the DAC List of Aid established for income, economic diver- Recipients by banks in OECD countries. sification and social development. The LOANS from central monetary authori- DAC List is updated immediately to ties are excluded. Guaranteed bank loans reflect any change in the LDC group. and bonds are included under OTHER PRIVATE or BOND LENDING (see below) • Other LICs: Other Low-Income Coun- in these presentations. tries. Includes all non-LDC countries with per capita GNP $760 or less in 1998 • Bond lending: Net completed interna- (World Bank Atlas basis). tional bonds issued by countries on the DAC List of Aid Recipients. • LMICs: Lower Middle-Income Coun- tries, i.e. with GNP per capita (Atlas basis) • Other private: Mainly reported hold- between $761 and $3 030 in 1998. LDCs ings of equities issued by firms in aid which are also LMICs are only shown as recipient countries. LDCs – not as LMICs. In data presentations which focus on the • UMICs: Upper Middle-Income Coun- outflow of funds from donors, private tries, i.e. with GNP per capita (Atlas basis) flows other than direct investment are between $3 031 and $9 360 in 1998. restricted to credits with a MATURITY of greater than one year and are usually • HICs: High-Income Countries, i.e. with divided into: GNP per capita (Atlas basis) more than $9 360 in 1998. • Private export credits: See EXPORT Part II of the List comprises “Countries in CREDITS. Transition”. These comprise i) more

324

advanced Central and Eastern European Table 1 of the Statistical Annex) includes, Countries and New Independent States of in addition to ODF, official and private the former Soviet Union; and ii) more EXPORT CREDITS, and LONG- and advanced developing countries. See also SHORT-TERM private transactions (see OFFICIAL AID. PRIVATE FLOWS). Total receipts are mea- sured net of AMORTIZATION payments SHORT-TERM: Used of LOANS with a and repatriation of capital by private MATURITY of one year or less. investors. Bilateral flows are provided directly by a donor country to an aid recipient country. Multilateral flows are Includes TECHNICAL CO-OPERATION: channelled via an international organisa- both (a) GRANTS to nationals of aid tion active in development (e.g. World recipient countries receiving education Bank, UNDP). In tables showing total or training at home or abroad, and receipts of recipient countries, the out- (b) payments to consultants, advisers flows of multilateral agencies to those and similar personnel as well as teachers countries is shown, not the contributions and administrators serving in recipient which the agencies received from donors. countries (including the cost of associated equipment). Assistance of this kind provided specifically to facilitate the UNDISBURSED: Describes amounts implementation of a capital project is committed but not yet spent. See also included indistinguishably among bilat- COMMITMENT, DISBURSEMENT. eral project and programme expendi- tures, and is omitted from technical co- UNTIED AID: Official Development Assis- operation in statistics of aggregate flows. tance for which the associated goods and services may be fully and freely procured in TIED AID: Official GRANTS or LOANS substantially all countries. where procurement of the goods or services involved is limited to the donor VOLUME (real terms): The flow data in country or to a group of countries which this publication are expressed in does not include substantially all aid US dollars. To give a truer idea of the vol- recipient countries. Tied aid loans, cred- ume of flows over time, some data are its and ASSOCIATED FINANCING pack- presented in constant prices and ages are subject to certain disciplines exchange rates, with a reference year concerning their CONCESSIONALITY specified. This means that adjustment LEVELS, the countries to which they may has been made to cover both inflation in be directed, and their developmental the donor’s currency between the year in relevance so as to avoid using aid funds question and the reference year, and on projects that would be commercially changes in the exchange rate between viable with market finance, and to ensure that currency and the United States dol- that recipient countries receive good lar over the same period. A table of com- value. Details are given in the Develop- bined conversion factors (deflators) is ment Co-operation Reports for 1987 provided in the Statistical Annex (pp. 177-181) and 1992 (pp. 10-11). (Table 36) which allows any figure in the Report in current United States dollars to TOTAL RECEIPTS: The inflow of be converted to dollars of the reference resources to aid recipient countries (see year (“constant prices”).

325 Notes on Definitions and Measurement

The coverage of the data presented in and procedures applying fifteen years this Report has changed in recent years. earlier.* The main points are: The coverage of national income has also been expanding through the inclu- Changes in the ODA concept and sion of new areas of economic activity the coverage of GNP and the improvement of collection methods. In particular, the new System of While the definition of Official Devel- National Accounts (SNA) co-sponsored opment Assistance has not changed since by the OECD and other major interna- 1972, some changes in interpretation tional organisations broadens the cover- have tended to broaden the scope of the age of GNP, now renamed GNI – Gross concept. The main ones are the recording National Income. This tends to depress of administrative costs as ODA (from donors’ ODA/GNI ratios. Norway’s and 1979), the imputation as ODA of the share Denmark’s ODA/GNI ratios declined by of subsidies to educational systems rep- 6 to 8% as a result of moving to the new resenting the cost of educating students SNA in the mid-1990s. Finland and from aid recipient countries (first specifi- Australia later showed smaller falls of 2 to cally identified in 1984), and the inclu- 4%. All DAC members are now using the sion of assistance provided by donor new SNA. countries in the first year after the arrival of a refugee from an aid recipient country (eligible to be reported from the early Recipient country coverage 1980s but widely used only since 1991). Since 1990, the following entities have Precise quantification of the effects of been added to the list of ODA recipients these changes is difficult because at the dates shown: the Black Communi- changes in data collection methodology ties of South Africa (1991 – now simply and coverage are often not directly South Africa); Kazakhstan, the Kyrgyz apparent from members’ statistical Republic, Tajikistan, Turkmenistan and returns. The amounts involved can, how- Uzbekistan (1992); Armenia, Georgia and ever, be substantial. For example, report- Azerbaijan (1993), Palestinian Adminis- ing by Canada in 1993 included for the tered Areas (1994), Moldova (1997). first time a figure for in-Canada refugee Eritrea, formerly part of Ethiopia, has support. The amount involved ($184 m.) been treated as a separate country from represented almost 8% of total Canadian 1993. The former United States Trust ODA. Aid flows reported by Australia in Territory of the Pacific Islands has been the late 1980s, it has been estimated, progressively replaced by its indepen- were some 12% higher than had they dent successor states, viz. Federated been calculated according to the rules States of Micronesia and Marshall

* S. Scott, “Some Aspects of the 1988/89 Aid Budget”, in Quarterly Aid Round-up, No. 6, AIDAB, Canberra, 1989, pp. 11-18.

326

Islands (1992); Northern Marianas and Donor country coverage Palau Islands (1994). Spain and Portugal joined the DAC in Over the same period, the following 1991, Luxembourg joined in 1992 and countries and territories have been Greece joined in 1999. Their assistance is removed from the ODA recipient list: now counted within the DAC total. ODA Portugal (1991); French Guyana, flows from these countries before they Guadeloupe, Martinique, Réunion and joined the DAC have been added to earlier St Pierre and Miquelon (1992), Greece (1994). years' data where available. The accession of new members has added to total DAC From 1993, several CEEC/NIS coun- ODA, but has usually reduced the overall tries in transition have been included ODA/GNP ratio, since their programmes are on Part II of a new List of Aid Recipients often smaller in relation to GNP than those (the List is given at the end of this vol- of the longer-established donors. ume). Aid to countries on Part II of the List is recorded as “Official Aid”, not as ODA. To avoid overlap, Part II of the new Treatment of debt forgiveness List does not include those CEEC/NIS countries which have been classified as The treatment of the forgiveness of ODA recipients. loans not originally reported as ODA varied in earlier years. Up to and including 1992, From 1996, the following High-Income where forgiveness of non-ODA debt met the Countries were transferred from Part I to tests of ODA it was reportable as ODA. From Part II of the List: Bahamas, Brunei, 1990 to 1992 inclusive it remained report- Kuwait, Qatar, Singapore and United Arab able as part of a country's ODA, but was Emirates. From 1997, seven further High- excluded from the DAC total. From 1993, for- Income Countries were transferred to giveness of debt originally intended for mili- Part II: Bermuda, Cayman Islands, tary purposes has been reportable as “Other Chinese Taipei, Cyprus, Falkland Islands, Official Flows”, whereas forgiveness of other Hong Kong (China), and Israel. From non-ODA loans (mainly export credits) 1 January 2000, Aruba, the British Virgin recorded as ODA is included both in country Islands, French Polynesia, Gibraltar, data and in total DAC ODA in the same way Korea, Libya, Macao, Netherlands as it was until 1989. Antilles, New Caledonia and Northern Marianas progressed to Part II. In 2001, The forgiveness of outstanding loan Senegal transferred to the group of LDCs, principal originally reported as ODA and Northern Marianas left the List. does not give rise to a new net disbursement of ODA. Statistically, the benefit is Data on total aid to Part I countries reflected in the fact that because the can- (ODA) and total aid to Part II countries celled repayments will not take place, net (OA) follow the recipient list for the year ODA disbursements will not be reduced. in question. However, when a country is added to or removed from an income group in Part I, totals for the groups Reporting year affected are adjusted retroactively to maximise comparability over time with All data in this publication refer to cal- reference to the current list. endar years, unless otherwise stated.

327 DAC List of Aid Recipients – For 2001 Flows

Part II: Countries Part I: Developing Countries and Territories and Territories in Transition (Official Development Assistance) (Official Aid)

UMICs HICs More Advanced Other LICs LMICs (per capita (per capita Developing LLDCs (per capita GNP CEECs/NIS (per capita GNP $761-$3 030 in 1998) GNP $3 031-$9 360 GNP > $9 360 Countries and < $760 in 1998) in 1998) in 1998)1 Territories

Afghanistan ❊ Armenia ❊ Albania Palestinian Botswana Malta1 ❊ Belarus ● Aruba Angola ❊ Azerbaijan Algeria Administered Brazil Slovenia1 ❊ Bulgaria Bahamas Bangladesh Cameroon Belize Areas Chile ❊ Czech ● Bermuda Benin China Bolivia Papua New Cook Islands Republic Brunei Bhutan Congo, Rep. Bosnia and Guinea Croatia ❊ Estonia ● Cayman Burkina Faso Côte d’Ivoire Herzegovina Paraguay Gabon ❊ Hungary Islands Burundi East Timor Colombia Peru Grenada ❊ Latvia Chinese Taipei Cambodia Ghana Costa Rica Philippines Lebanon ❊ Lithuania Cyprus Cape Verde Honduras Cuba South Africa Malaysia ❊ Poland ● Falkland Central African India Dominica Sri Lanka Mauritius ❊ Romania Islands Republic Indonesia Dominican St Vincent and ● Mayotte ❊ Russia ● French Chad Kenya Republic Grenadines Mexico ❊ Slovak Polynesia Comoros Korea, Ecuador Suriname Nauru Republic ● Gibraltar Congo, Dem. Rep. Democratic Egypt Swaziland Palau Islands ❊ Ukraine ● Hong Kong, Djibouti Republic El Salvador Syria Panama China Equatorial Guinea ❊ Kyrgyz Rep. Fiji Thailand ● St Helena Israel Eritrea ❊ Moldova ❊ Georgia ● Tokelau St Lucia Korea Ethiopia Mongolia Guatemala Tonga Trinidad and Kuwait Gambia Nicaragua Guyana Tunisia Tobago Libya Guinea Nigeria Iran ❊ Uzbekistan Turkey ● Macao Guinea-Bissau Pakistan Iraq ● Wallis and Uruguay ● Netherlands Haiti Senegal2 Jamaica Futuna Venezuela Antilles Kiribati ❊ Tajikistan Jordan Yugoslavia, ● New Laos ❊ Turkmenistan ❊ Kazakhstan Federal Threshold for Caledonia Lesotho Viet Nam Macedonia Republic World Bank Qatar Liberia Zimbabwe (former Loan Eligibility Singapore Madagascar Yugoslav ($5 280 in 1998) United Arab Malawi Republic) Emirates Maldives Marshall Islands ● Virgin Islands Mali Micronesia, ● Anguilla (UK) Mauritania Federated Antigua and Mozambique States Barbuda Myanmar Morocco Argentina Nepal Namibia Bahrain Niger Niue Barbados Rwanda ● Montserrat Samoa Oman São Tomé and Saudi Arabia Príncipe Seychelles Sierra Leone St Kitts and Solomon Islands Nevis Somalia ● Turks and Sudan Caicos Tanzania Islands Togo Tuvalu Uganda Vanuatu Yemen Zambia

❊ Central and eastern European countries and New Independent States of the former Soviet Union (CEECs/NIS). ● Territory. 1. These countries and territories will transfer to Part II on 1 January 2003. As of July 2002, the Heavily Indebted Poor Countries (HIPCs) are: Angola, Benin, Bolivia, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, Comoros, Congo (Dem. Rep.), Congo (Rep.), Côte d’Ivoire, Ethiopia, Gambia, Ghana, Guinea, Guinea-Bissau, Guyana, Honduras, Kenya, Laos, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Myanmar, Nicaragua, Niger, Rwanda, São Tomé and Príncipe, Senegal, Sierra Leone, Somalia, Sudan, Tanzania, Togo, Uganda, Viet Nam and Zambia.

328 List of acronyms1

ACP AFRICAN, CARIBBEAN AND PACIFIC COUNTRIES AERA ACCELERATED ECONOMIC RECOVERY IN ASIA AfDB AFRICAN DEVELOPMENT BANK AfDF AFRICAN DEVELOPMENT FUND AsDB ASIAN DEVELOPMENT BANK AsDF ASIAN DEVELOPMENT FUND ASEAN ASSOCIATION OF SOUTH-EAST ASIAN NATIONS

BIS BANK FOR INTERNATIONAL SETTLEMENTS BHN BASIC HUMAN NEEDS BSS BASIC SOCIAL SERVICES

CCA COMMON COUNTRY ASSESSMENT CDE CAPACITY DEVELOPMENT IN ENVIRONMENT CDF COMPREHENSIVE DEVELOPMENT FRAMEWORK CEC COMMISSION OF THE EUROPEAN COMMUNITIES CEDAW CONVENTION ON THE ELIMINATION OF DISCRIMINATION AGAINST WOMEN CEECs CENTRAL AND EASTERN EUROPEAN COUNTRIES CFA2 AFRICAN FINANCIAL COMMUNITY CIS COMMONWEALTH OF INDEPENDENT STATES CMH COMMISSION ON MACROECONOMICS AND HEALTH (WHO) CPE COUNTRY PROGRAMME EVALUATION CPIA COUNTRY POLICY AND INSTITUTIONAL ASSESSMENT CRS CREDITOR REPORTING SYSTEM (of the DAC) CSOs CIVIL SOCIETY ORGANISATIONS

DAC DEVELOPMENT ASSISTANCE COMMITTEE DCD DEVELOPMENT CO-OPERATION DIRECTORATE (OECD)

EBRD EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT EC EUROPEAN COMMUNITY ECA ECONOMIC COMMISSION FOR AFRICA ECHO EUROPEAN COMMUNITY HUMANITARIAN OFFICE EDF EUROPEAN DEVELOPMENT FUND EFA EDUCATION FOR ALL ESAF ENHANCED STRUCTURAL ADJUSTMENT FACILITY (IMF, now PRGF) EU EUROPEAN UNION FDI FOREIGN DIRECT INVESTMENT FSAP FINANCIAL SECTOR ASSESSMENT PROGRAMME (of the IMF/World Bank) GSP GENERALISED SYSTEM OF PREFERENCES GNI GROSS NATIONAL INCOME HICs HIGH-INCOME COUNTRIES HIPCs HEAVILY-INDEBTED POOR COUNTRIES (see DAC List of Aid Recipients in this annex) HPI HUMAN POVERTY INDEX

IBRD INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ICB INTERNATIONAL COMPETITIVE BIDDING

329

ICPD INTERNATIONAL CONFERENCE ON POPULATION AND DEVELOPMENT (Cairo, 1994) IDA INTERNATIONAL DEVELOPMENT ASSOCIATION IDAI INTEGRATED DEVELOPMENT ACTIVITY INFORMATION IDB INTER-AMERICAN DEVELOPMENT BANK IDGs INTERNATIONAL DEVELOPMENT GOALS IECDF INTERNATIONAL ECONOMIC CO-OPERATION DEVELOPMENT FUND IFAD INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT IFC INTERNATIONAL FINANCE CORPORATION ILO INTERNATIONAL LABOUR ORGANISATION IMF INTERNATIONAL MONETARY FUND IMSG INFORMAL MULTILATERAL SECRETARIATS GROUP IRTA INVESTMENT-RELATED TECHNICAL ASSISTANCE ITC INTERNATIONAL TRADE CENTRE

JBIC JAPAN BANK FOR INTERNATIONAL CO-OPERATION (ex OECF + JEXIM) JEXIM JAPAN EXPORT IMPORT BANK (now JBIC)

KfW2 BANK FOR RECONSTRUCTION AND DEVELOPMENT (Germany)

LDCs DEVELOPING COUNTRIES LICs LOW-INCOME COUNTRIES LLDCs LEAST DEVELOPED COUNTRIES LMICs LOWER MIDDLE-INCOME COUNTRIES

MDBs MULTILATERAL DEVELOPMENT BANKS

NEPAD NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT NGO NON-GOVERNMENTAL ORGANISATION NIS NEW INDEPENDENT STATES (of the former Soviet Union) NSSDs NATIONAL STRATEGIES FOR SUSTAINABLE DEVELOPMENT

ODA OFFICIAL DEVELOPMENT ASSISTANCE ODF OFFICIAL DEVELOPMENT FINANCE OECD ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT OECF OVERSEAS ECONOMIC CO-OPERATION FUND (Japan, now JBIC) OLICs OTHER LOW-INCOME COUNTRIES OOF OTHER OFFICIAL FLOWS

PDGG PARTICIPATORY DEVELOPMENT AND GOOD GOVERNANCE PRGF POVERTY REDUCTION AND GROWTH FACILITY (IMF, formerly ESAF) PRSP POVERTY REDUCTION STRATEGY PAPER

RBM RESULTS-BASED MANAGEMENT

S-21 21st CENTURY STRATEGY SAF STRUCTURAL ADJUSTMENT FACILITY SDR SPECIAL DRAWING RIGHT SNA SYSTEM OF NATIONAL ACCOUNTS SPA STRATEGIC PARTNERSHIP WITH AFRICA (formerly Special Programme of Assistance for Africa) SPS SECTOR PROGRAMME SUPPORT SSA SUB-SAHARAN AFRICA SWAPs SECTOR-WIDE APPROACHES

330

TC TECHNICAL CO-OPERATION TRTA TRADE-RELATED TECHNICAL ASSISTANCE

UMICs UPPER MIDDLE-INCOME COUNTRIES UN UNITED NATIONS UNCED UNITED NATIONS CONFERENCE ON ENVIRONMENT AND DEVELOPMENT (Rio de Janeiro, 1992) UNCTAD UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT UNDAF UNITED NATIONS DEVELOPMENT ASSISTANCE FRAMEWORK UNDP UNITED NATIONS DEVELOPMENT PROGRAMME UNEP UNITED NATIONS ENVIRONMENT PROGRAMME UNESCO UNITED NATIONS EDUCATIONAL, SCIENTIFIC AND CULTURAL ORGANISATION UNFCCC UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE UNFPA UNITED NATIONS FUND FOR POPULATION ACTIVITIES UNHCR UNITED NATIONS HIGH COMMISSIONER FOR REFUGEES UNICEF UNITED NATIONS CHILDREN’S FUND

WFP WORLD FOOD PROGRAMME WHO WORLD HEALTH ORGANISATION WID WOMEN IN DEVELOPMENT WSSD WORLD SUMMIT FOR SUSTAINABLE DEVELOPMENT (Johannesburg, 2002) WTO WORLD TRADE ORGANISATION

1. This list is not exhaustive. It provides the most common development co-operation related acronyms, including those referred to in this Report. Acronyms for country Ministries and Aid Agencies are provided in Chapter V. 2. Denotes acronym in the original language.

Preface by the Secretary-General...... 3

Foreword by the DAC Chairman...... 5

Overview by the DAC Chairman, M. Jean-Claude Faure ...... 11

Part I Aid Effectiveness

An Action Plan for Aid Effectiveness...... 27 1. Introduction ...... 27 I 2. Current DAC/DCD work on aid effectiveness ...... 27 3. Future directions ...... 29 4. Conclusion ...... 33

Managing for Development Results and Aid Effectiveness ...... 35 1. Introduction ...... 35 II 2. Strategic context ...... 36 3. Managing for results at the operational level ...... 37 4. Results management in public sector reforms in developing countries ...... 42 5. Implications for management...... 45 6. Main conclusions and findings of the Forum ...... 49

Harmonising Donor Practices for Effective Aid Delivery...... 53 1. Introduction ...... 53 III 2. The Needs Assessment Survey ...... 54 3. A Framework for Donor Co-operation ...... 57

Part II Donor Efforts

Peer Review: A Tool for Co-operation and Change...... 69 1. An OECD working method...... 69 IV 2. The peer review process in the Development Assistance Committee...... 77

Reviewing Donor Efforts and Policies...... 85 1. ODA trends in 2001...... 85 V 2. ODA outlook after Monterrey...... 88 3. Untying ODA to the least developed countries ...... 88 4. Notes on individual DAC members ...... 90 Australia...... 93 Austria ...... 94 Belgium...... 95 Canada...... 96 Denmark...... 98 European Community...... 99

Finland...... 101 France ...... 102 Germany ...... 103 Greece ...... 104 Ireland ...... 106 Italy...... 107 Japan ...... 108 Luxembourg...... 109 The Netherlands ...... 110 New Zealand...... 111 Norway...... 112 Portugal...... 113 Spain...... 114 Sweden ...... 116 Switzerland ...... 117 United Kingdom...... 118 United States ...... 119 5. Notes on non-DAC OECD members’ aid programmes ...... 121 Czech Republic ...... 121 Iceland ...... 121 Korea...... 122 Mexico ...... 123 Poland ...... 123 Slovak Republic ...... 124 Turkey...... 124

Special Module: Millennium Development Goals: Progress during the 1990s ...... 127

Part III Inclusive Globalisation

Trade Capacity Building after Doha: Making it a Reality...... 141 1. Introduction ...... 141 VI 2. The Trade Capacity Building Database...... 142 3. Regional Workshop on “Trade Capacity Building: Experiences in an African Context”...... 145

Working for Development in Difficult Partnerships...... 153 1. Introduction ...... 153 VII 2. Joint DAC/World Bank/EC/UNDP Workshop on “Working for Development in Difficult Partnerships”, 28-29 October 2002 ...... 153 3. DAC Experts Meeting on “Afghanistan Reconstruction and Recovery: Seeing Round the Corner”, 2-3 May 2002...... 160

Investing in Health to Reduce Poverty ...... 165 1. Background: the DAC Reference Document VIII on Poverty and Health...... 165 2. Introduction ...... 165

3. Poverty and health ...... 167 4. Key actions to promote pro-poor health ...... 167 5. Defining and applying a pro-poor health approach...... 169 6. Responding to different country contexts ...... 173 7. Mobilising resources for pro-poor health ...... 174 8. Improving the effectiveness of development co-operation to meet pro-poor health objectives ...... 176

Supporting the Development of Water and Sanitation Services in Developing Countries ...... 179 IX 1. Introduction ...... 179 2. Aid to the water supply and sanitation sector: a statistical overview ...... 180 3. Providing water and sanitation services in rapidly growing cities...... 186 4. Water resources management and gender equality ...... 188

Part IV The DAC at Work

1. Development Assistance Committee (DAC) ...... 195 The DAC’s Mission...... 195 Key Activities ...... 195 Structure and Membership of the DAC and its Subsidiary Bodies in 2002...... 197

2. Development Co-operation Directorate (DCD) ...... 209 Structure of the Development Co-operation Directorate in 2002 ...... 211 Staff of the Development Co-operation Directorate...... 212 DAC/DCD Website Themes and Aliases...... 215

Statistical Annex...... 217

Technical Notes (including Key Terms, Definitions, Acronyms and DAC List of Aid Recipients) ...... 319

Tables Table III-1. Burdens as ranked by respondents ...... 55 Table III-2. Initiatives suggested for improving management..... 56 Table IV-1. DAC peer review processes...... 79 Table V-1. Net official development assistance from DAC members in 2000 and 2001 ...... 86 Table VIII-1.Official development assistance (ODA) to health, 1996-2001: annual average commitment and share in total aid allocated by sector ...... 175 Table IX-1. Aid to water supply and sanitation by donor...... 183

Charts Chart V-1. Net ODA from DAC countries in 2001...... 87 Chart IX-1. Aid to water supply and sanitation, commitments 1973-2001: 5-year moving average..... 181 Chart IX-2. Water supply and sanitation aid by subsector, 1997-2001...... 184 Chart IX-3. Geographical breakdown of aid for water supply and sanitation, commitments 1996-2001...... 184 Chart IX-4. Aid for water supply and sanitation by recipient – Overview of targeting to countries most in need, commitments 2000-2001...... 185

Boxes Box II-1. Managing for results: Canada, the United States and the United Kingdom...... 40 Box II-2. Results orientation in the World Bank...... 41 Box II-3. Public sector reform in Tanzania ...... 43 Box II-4. PARIS21...... 48 Box III-1. Guiding principles on providing co-ordinated aid ...... 58 Box III-2. Donor-government partnerships in Uganda ...... 60 Box III-3. Joint programme for macro-financial support in Mozambique...... 61 Box III-4. Examples of joint working in India and Viet Nam ...... 63 Box III-5. Adopting common procedures: Cambodia and Viet Nam ...... 64 Box III-6. Reviewing the constraints to more flexible working .... 66 Box V-1. Client Survey Study of DAC Peer Reviews ...... 91 Box V-2. DAC Peer Review of Canada, 15 November 2002...... 97 Box V-3. DAC Peer Review of the European Community, 6 June 2002 ...... 100 Box V-4. DAC Peer Review of Greece, 12 March 2002 ...... 105 Box V-5. DAC Peer Review of Spain, 9 April 2002 ...... 115 Box V-6. DAC Peer Review of the United States, 22 October 2002 ...... 120 Box VI-1. Snapshot of trade-related technical assistance and capacity building (TRTA/CB) in 2001 ...... 144 Box VI-2. Trade capacity building in the African context ...... 148 Box VII-1. Approaches to addressing difficult partnerships...... 156 Box IX-1. Reforming water utilities: key institutional priorities ...... 188 Box IX-2. Facilitating access to affordable water and sanitation services to the poor ...... 189 Box IX-3. Ensuring quality and sustainability of water and sanitation facilities: Why gender equality matters ...... 191 Box IX-4. Women’s involvement in the Lombok Rural Water Supply and Sanitation Project...... 192

Access the complete publication at: https://doi.org/10.1787/dcr-2002-en

Please cite this chapter as:

OECD (2003), “An Action Plan for Aid Effectiveness”, in Development Co-operation Report 2002: Efforts and Policies of the Members of the Development Assistance Committee, OECD Publishing, Paris.

DOI: https://doi.org/10.1787/dcr-2002-3-en

This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries.

This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected].