Managing Aid

Practices of DAC Member Countries

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Development co-operation donors are held accountable for the way they manage aid and the development results they achieve. They want to see more partner country ownership, greater use of partner country systems, and work better together. This involves decentralising responsibility, concentrating efforts, managing for results, creating new systems, changing staff profiles, and building capacity in donor and partner countries. This book outlines what individual donors are doing to fulfil their development co-operation ambitions and their part of the international agreements – reached in Paris in 2005 (Paris Declaration) and Accra in 2008 (Accra Agenda for Action) – to make aid more effective.

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Managing Bilateral ODA

DAC member countries finance development co-operation programmes in several ways, through budget appropriations, funds provided through sub-national authorities, civil society organisations and debt relief grants. This means that it is important for those responsible for the different kinds of bilateral aid to work closely with those who report development-related expenditures so that all bilateral ODA is included. Another concern with bilateral aid is that much of it is allocated annually, which is hard to reconcile with the long-term nature of development co-operation. DAC member countries need to consolidate aid budgets and plan development aid over the medium term. If aid flows to partner countries are predictable they can plan to make the investments required to achieve the MDGs.

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