[EQ] Practical approaches to the aid effectiveness agenda

Practical approaches to the aid effectiveness agenda

Evidence in aligning aid information with recipient country budgets

Samuel Moon with Zachary Mills

ISBN 978 1 907288 26 5 -ODI Working Papers (Online) ISSN 1759 2917

Overseas Development Institute- July 2010

Available online PDF [50p.] at: http://bit.ly/cIDKI4

 

“………The Paris Declaration and the Accra Agenda for Action emphasise the importance of aligning aid with recipient government priorities and delivering aid through government systems. However, since a significant amount of aid is not delivered through national budgets, the issue of aligning these resources to government systems remains a major challenge. A fundamental concern is the ability to relate aid resources to the expenditure patterns of recipient governments. Too often, that link is not made. Generic donor ‘sector’ categorisations of aid are applied at country level, even though these do not relate meaningfully to recipient governments’ sectoral or administrative budget classifications.

At the core of this problem is the need to produce aid information in a way that can be aligned with the administrative/organisational classification and the functional/purpose classification of a recipient government’s budget. Making aid information available to the recipient country government at the relevant point in their budget calendar is also important. An explicit linkage between the purpose of aid and the government development strategy and budget is fundamental to more effective strategic planning and budgeting. It will also facilitate the implementation of government policies and programmes in the context of a more comprehensive and accurate estimate of the total government and donor resources available for national priorities. …………

Contents

1. Introduction 1

2. Background and problem definition

3. Method of analysis

4. Findings

4.1 General public service

4.2 Defence, justice, law, order and security

4.3 Economic affairs

4.4 Water, natural resource management and environment

4.5 Health

4.6 Recreation, culture and religion

4.7 Education 1

4.8 Social protection, land, housing and community amenities

4.9 Aid that is not supplementary to a government role

4.10 Summary of commonalities between sample budgets and international classifications

5. Conclusions and recommendations

5.1 Constructing a generic functional classification derived from the sample budgets

5.2 Bringing more of aid into the budget planning process

References

Appendix 1: The nature of the budget and aid classification systems and AIMS

Appendix 2: A generic functional structure for the interface of aid and budgets

Appendix 3: Proposal for values in the field of economic expenditure Items

Appendix 4: IATI information

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