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Towards Excellence in Aid Delivery

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Towards Excellence in Aid Delivery A Review of New Zealand’s Official Development Assistance Programme Report of the Ministerial Review Team March 2001 Acknowledgement The review team would like to record its appreciation of the significant level of cooperation and generous support given to the reviewers by the Ministry of Foreign Affairs and Trade in general, and the Development Cooperation Division in particular during the six months of the review process. At the outset of the Review, both Mr Gordon Shroff, Deputy Secretary of Foreign Affairs and Trade responsible for ODA, and Ms Rosemary Banks, Director of the Development Cooperation Division, encouraged staff to be open with the review team, and be supportive of the process. The unprecedented level of constructive discussion with individual staff at all levels of the Ministry in Wellington and overseas was of tremendous value to the team. The Ministry gave the team unimpeded access to publications, documentation, files, reports and staff throughout the review process. The team was impressed by the high levels of commitment and hard work by Ministry staff evidenced in both Wellington and overseas. This report includes some beliefs expressed by staff that are critical of NZODA, DEV and MFAT. The Team views the willingness of staff to be frank as a reflection of their high levels of dedication and professionalism and their desire for the best outcomes for NZODA. The review team is grateful to Mr David Shearer, the executive assistant to the Minister of Foreign Affairs. Mr Shearer served as the liaison between the team, the ministers and the Ministry. His assistance to the team is greatly appreciated. Scope and Methodology Scope and Methodology Scope The Associate Minister of Foreign Affairs and Trade, the Honourable Matt Robson, MP commissioned this review in September, 2000 with the support and cooperation of the Minister of Foreign Affairs and Trade, the Honourable Phil Goff, MP. The Ministers called for a comprehensive independent review conducted by a team with expertise in development assistance. The team was identified and selected by the Ministers with support from MFAT. The review team consisted of: Joseph Grossman - Economist, Managing Director, Development Services International Ltd. Annette Lees - Development and conservation expert The Team was assisted by Dr Margaret Chung, a Suva based development specialist, during the field-based portion of the review. The last review of NZODA was carried out more than ten years ago by the Foreign Affairs and Defence Select Committee. Although assessments on aspects of NZODA’s work have occurred during that time the Ministers determined that an examination of New Zealand’s aid policies and practice was timely. Since the last review the needs within the Pacific, where the bulk of New Zealand’s aid is spent, have changed. Recent instability and challenges facing governments in the Pacific have added urgency to the need to focus attention more closely on the way aid policies might address the causes of these problems. Equally important, globalisation has dramatically changed development assistance over the past decade, which has become a much more specialised discipline requiring considerably higher levels of expertise and experience in order to contribute effectively to the challenge of poverty elimination. The goal of the review is to provide analysis and recommendations about the overall focus, priorities, objectives and institutional arrangements of ODA. In particular, the Team was asked to examine NZODA in light of how it can: • best contribute to the elimination of poverty and building of capacity • best assist in the development of just and equitable economic, social and environmental policies for present and future generations • best address the root causes of problems facing Pacific Island states given New Zealand’s close relationship with the region. The Terms of Reference for the review are found in Appendix A. For the purposes of this review, the team has focused attention on the portion of ODA managed and delivered by the Ministry of Foreign Affairs and Trade, which accounts for approximately 91% of total NZODA. The remainder is administered mainly by New Zealand Defence Force (7%) and other Departments (2%). Methodology The Ministers asked the team to provide a vision for NZODA centred on excellence in aid delivery that effectively and strategically contributes to the elimination of poverty. This required a thorough analysis of the current policies, practices and structure of NZODA, the Ministry of Foreign Affairs and Trade, and the Development Cooperation Division based on a comprehensive understanding of current best practice in aid design and delivery. The team provided regular (every four to six weeks) updates to the Ministers on review progress to ensure that the team was implementing the TOR in approach and focus as the Ministers wished. Regular briefings were also provided to MFAT to ensure that they were fully appraised of review activities and progress. i Scope and Methodology The review was conducted over a relatively short period of time with resources which, while limited, were sufficient to provide a comprehensive outcome. To do so, the team ensured that it drew on the views of those most actively involved in the design and delivery of NZODA. The review team consulted extensively with MFAT staff, partners and stakeholders in New Zealand as well as overseas. The Minister called for public submissions, of which approximately 80 were received (these are listed in Appendix F), and a series of public consultations which were held in the three major cities (a list of attendees is found in Appendix E). This process was supplemented through meetings with NZODA staff, key stakeholders in New Zealand, including relevant Government Departments, representatives of the Asian Development Bank, development consultants, and academics. During the course of the review, the team was also invited by MFAT to attend several meetings that provided valuable insights into NZODA. These included: • Long Term Strategic Planning Consultations with the Asian Development Bank, representatives of Pacific Island countries and Australian government officials. • MFAT Workshop on Pacific Strategy and Policy • South Pacific Heads of Mission Meeting. An extensive series of interviews was held with individual staff of the Ministry of Foreign Affairs and Trade, including the majority of management and professional staff of the Development Cooperation Division. These interviews, supplemented by document review, formed the core of the team’s insights into NZODA operations, policy and practice. In order to respect the confidentiality of staff, partners and stakeholders, quotes in this report are attributed to positions rather than individuals in an effort to maintain anonymity. Following interviews and meetings, team members would review and compare notes and quotes to ensure accuracy. Where any uncertainty existed, issues were referred back to those interviewed for clarification. While the team was interested in the views of all staff interviewed, it was careful to avoid any inclusion in the report of discussion with potentially disgruntled or biased staff that might not represent accurate views. Where reference in the report is made to staff perspective, this represents a critical mass of views expressed by many staff, generally across a range of positions within DEV and/or MFAT. The list of meetings and interviews held in New Zealand and overseas is found in Appendix D. A large volume of reports, materials, reviews and documents was drawn upon from a wide range of sources including MFAT, OECD, World Bank, Asian Development Bank, AusAID, DfID and other donors. The list of the main reference materials utilised by the team is found in Appendix G. The team was asked to travel to a limited number of Pacific Island countries and Australia to discover the views of aid recipients and partners. Due to political unrest in the Pacific, travel destinations were constrained. Following discussions with MFAT, a decision was made to visit Vanuatu and Samoa to meet with bilateral programme partners and stakeholders and to Fiji to meet with multilateral and regional partners. The Minister of Foreign Affairs and Trade also invited a team member to accompany him on a trip to New Caledonia, Vanuatu, Tonga and Niue. This provided a valuable opportunity to meet with partners and stakeholders in these countries. The team spent four days in Vanuatu and five in Samoa meeting with Post staff and a wide range of senior bilateral government officials, politicians, line agencies and partners, representatives of civil society, NGOs, other donors and stakeholders. Approximately two days were spent in each of the countries visited with the Minister, which afforded an opportunity to meet with Post staff, some partners and stakeholders as well as visiting a small number of project sites. A team member spent several days in Fiji meeting with regional institutions. The team members took the opportunity of other private travel commitments to discuss relevant review matters and to gain additional insights into the operations and practices of NZODA, including a meeting with Advanced Dynamics, an Australian firm that recently conducted a management and operational review of MFAT. The team spent four days meeting with management and staff at AusAID to gain insight into their policies and operations, as our neighbour and other major donor in the Pacific. Australia underwent a
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