Aid and Development Effectiveness

Photo by Adam Rogers/ UNCDF

The current financial crunch and questions around levels of official development assistance (ODA) only highlight the significance of aid quality, its transparent and accountable management and judicious use and allocation, i.e. contribution to reducing poverty and achieving the Millennium Development Goals , and responding to increasing demands for accountability and transparency in ODA management. Country ownership and South/South cooperation are the guiding principles in this work.

In this regard, UNDP fulfils four integrated functions:

  • Support the development of national policy frameworks, institutional capacities for effective aid management and mutual accountability at the country level;
  • Facilitate country engagement in the regional and global aid effectiveness discourse;
  • Ensure the UN development system is better equipped to support countries in adapting to changing aid modalities and development finance contexts; and
  • Provide a systematic and accessible body of evidence and tools to support capacity development for aid effectiveness for development practitioners.

How We Work

Multi-donor aid for development effectiveness in Indonesia

UNDP supported the Government in establishing a multi-donor Aid for Development Effectiveness Programme, which has already attracted donor contributions totalling over US$1.4m. This capacity development programme supports the government in strengthening country systems – from financial management, to procurement, to monitoring and evaluating development results – that lie at the core of the government’s transparent and accountable management of all development resources. This programme offers an opportunity to demonstrate a Middle Income Country approach to managing aid as part of overall development resources, with potential benefits for other countries in the region for which peer-to-peer networking opportunities will be actively pursued by UNDP.

Aid information management system in Ghana

UNDP supported the Ministry of Finance and Planning (MoFEP) in establishing an “Aid Effectiveness Seminar Series” to develop the capacities of Government staff. While the first seminar was targeted at its junior-level staff working on external resource mobilization, the second seminar of the brought together mid- and senior-level participants from MoFEP and line ministries to exchange and learn on aid effectiveness issues.

Aid coordination and emergency response in Grenada

The Eastern Caribbean Donor Group, which comprises both UN family and traditional development partners, has been instrumental in supporting and coordinating emergency i.e. post-disaster response at the sub-regional level. It has been tested and has worked effectively, for example when Granada experienced a devastating hurricane in 2004 which caused damage to 90% of the housing on the island and devastated the agriculture and tourism sectors, through the existing coordinating mechanism, the donor community was able to rise to the occasion. UNDP was able to play a critical coordinating role on the ground in Grenada, facilitating communication and coordination in the early response.

Programmes and Initiatives
International Aid Transparency Initiative (IATI)

The initiative was launched at the Accra High Level Forum in 2008. It aims to bring a step shift in the availability and accessibility of a wider set of aid information than is currently available, both quantitative and qualitative. IATI is a direct response to the aid information needs of programme countries, CSOs, donors and other stakeholders. It is also a concrete step in making the aid transparency commitments donors made in the Accra Agenda for Action a reality.

The availability of better aid information will have a positive impact as well on aid predictability, domestic and mutual accountability and the overall goal of improved aid effectiveness. IATI aims to reduce transaction costs in the reporting on aid flows at the global and country level over time.

UNDP is a member of the IATI Secretariat and is tasked with supporting developing countries in engaging with IATI through participation in consultations, as experts in the IATI Technical Advisory Group or members of its Steering Committee.

Visit the IATI website