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In 2008, New Zealand's net ODA was USD 348 million, an increase of 11.5% in real terms from 2007. The increase was mostly due to a rise in bilateral aid. ODA as a proportion of GNI rose from 0.27% in 2007 to 0.30% in 2008.
Reform for implementing the aid effectiveness agenda
The New Zealand Agency for International Development (NZAID) has a new mandate and policy framework (as of April 2009). These reinforce its commitment to providing effective aid by advancing both the Paris Declaration and the Accra Agenda for Action. A special focus is on improving aid effectiveness in the Pacific region. New Zealand has endorsed the Cairns Compact on Strengthening Development Coordination in the Pacific, whose key objective is to co-ordinate development better to make real progress against the MDGs. Principles include drawing on international best practice as outlined in the Paris Declaration and AAA. In taking forward the Cairns Compact, development partners will be able to draw on the insights offered by earlier aid effectiveness workshops hosted by the Pacific Islands Forum Secretariat, for which New Zealand provided substantive support. Development partners are encouraged to provide the Forum Secretariat, based in Suva, with an annual report on their efforts to implement the compact, including reducing aid fragmentation, easing the burden of aid administration, and improving aid effectiveness.
NZAID is now focusing on improving internal systems to better track progress towards the targets agreed at Accra: improving electronic management systems to support decentralised staff in partner countries; strengthening management for, and better measurement of, development results; and helping to simplify the international aid architecture.
Challenges in implementing the aid effectiveness agenda
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A strong focus on the Pacific region poses a number of special challenges in taking forward the AAA. With fewer donors present, and with many small island developing country partnerships to cover, NZAID and other donors have to manage a wide range of small projects and programmes, spread over a comparatively large number of small or micro states. New Zealand will work with Australia to strengthen donor co-operation through joint sector programmes, combined assessments and monitoring. In one country, responsibility for delivery of assistance will be delegated to another donor.
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