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| Paris Declaration
PARIS DECLARATION ON AID EFFECTIVENESS
Ownership, Harmonisation, Alignment, Results and Mutual Accountability I . Statement of Resolve 1. We, Ministers of developed and developing countries responsible for promoting development and Heads of multilateral and bilateral development institutions, meeting in Paris on 2 March 2005, resolve to take far-reaching and monitorable actions to reform the ways we deliver and manage aid as we look ahead to the UN five-year review of the Millennium Declaration and the Millennium Development Goals (MDGs) later this year. As in Monterrey, we recognise that while the volumes of aid and other development resources must increase to achieve these goals, aid effectiveness must increase significantly as well to support partner country efforts to strengthen governance and improve development performance. This will be all the more important if existing and new bilateral and multilateral initiatives lead to significant further increases in aid. 2. At this High-Level Forum on Aid Effectiveness, we followed up on the Declaration adopted at the High-Level Forum on Harmonisation in Rome (February 2003) and the core principles put forward at the Marrakech Roundtable on Managing for Development Results (February 2004) because we believe they will increase the impact aid has in reducing poverty and inequality, increasing growth, building capacity and accelerating achievement of the MDGs. Scale up for more effective aid 3. We reaffirm the commitments made at Rome to harmonise and align aid delivery. We are encouraged that many donors and partner countries are making aid effectiveness a high priority, and we reaffirm our commitment to accelerate progress in implementation, especially in the following areas: i. Strengthening partner countries’ national development strategies and associated operational frameworks (e.g., planning, budget, and performance assessment frameworks). ii. Increasing alignment of aid with partner countries’ priorities, systems and procedures and helping to strengthen their capacities. iii. Enhancing donors’ and partner countries’ respective accountability to their citizens and parliaments for their development policies, strategies and performance. iv. Eliminating duplication of efforts and rationalising donor activities to make them as cost-effective as possible. v. Reforming and simplifying donor policies and procedures to encourage collaborative behaviour and progressive alignment with partner countries’ priorities, systems and procedures. vi. Defining measures and standards of performance and accountability of partner country systems in public financial management, procurement, fiduciary safeguards and environmental assessments, in line with broadly accepted good practices and their quick and widespread application. 4. We commit ourselves to taking concrete and effective action to address the remaining challenges, including: i. Weaknesses in partner countries’ institutional capacities to develop and implement results-driven national development strategies. ii. Failure to provide more predictable and multi-year commitments on aid flows to committed partner countries. iii. Insufficient delegation of authority to donors’ field staff, and inadequate attention to incentives for effective development partnerships between donors and partner countries. iv. Insufficient integration of global programmes and initiatives into partner countries’ broader development agendas, including in critical areas such as HIV/AIDS. v. Corruption and lack of transparency, which erode public support, impede effective resource mobilisation and allocation and divert resources away from activities that are vital for poverty reduction and sustainable economic development. Where corruption exists, it inhibits donors from relying on partner country systems. 5. We acknowledge that enhancing the effectiveness of aid is feasible and necessary across all aid modalities. In determining the most effective modalities of aid delivery, we will be guided by development strategies and priorities established by partner countries. Individually and collectively, we will choose and design appropriate and complementary modalities so as to maximise their combined effectiveness. 6. In following up the Declaration, we will intensify our efforts to provide and use development assistance, including the increased flows as promised at Monterrey, in ways that rationalise the often excessive fragmentation of donor activities at the country and sector levels. Adapt and apply to differing country situations 7. Enhancing the effectiveness of aid is also necessary in challenging and complex situations, such as the tsunami disaster that struck countries of the Indian Ocean rim on 26 December 2004. In such situations, worldwide humanitarian and development assistance must be harmonised within the growth and poverty reduction agendas of partner countries. In fragile states, as we support state-building and delivery of basic services, we will ensure that the principles of harmonisation, alignment and managing for results are adapted to environments of weak governance and capacity. Overall, we will give increased attention to such complex situations as we work toward greater aid effectiveness. Specify indicators, timetable and targets 8. We accept that the reforms suggested in this Declaration will require continued high-level political support, peer pressure and coordinated actions at the global, regional and country levels. We commit to accelerate the pace of change by implementing, in a spirit of mutual accountability, the Partnership Commitments presented in Section II and to measure progress against 12 specific indicators that we have agreed today and that are set out in Section III of this Declaration. 9. As a further spur to progress, we will set targets for the year 2010. These targets, which will involve action by both donors and partner countries, are designed to track and encourage progress at the global level among the countries and agencies that have agreed to this Declaration. They are not intended to prejudge or substitute for any targets that individual partner countries may wish to set. We have agreed today to set five preliminary targets against indicators as shown in Section III. We agree to review these preliminary targets and to adopt targets against the remaining indicators as shown in Section III before the UNGA Summit in September 2005; and we ask the partnership of donors and partner countries hosted by the DAC to prepare for this urgently. Meanwhile, we welcome initiatives by partner countries and donors to establish their own targets for improved aid effectiveness within the framework of the agreed Partnership Commitments and Indicators of Progress. For example, a number of partner countries have presented action plans, and a large number of donors have announced important new commitments. We invite all participants who wish to provide information on such initiatives to submit it by 4 April 2005 for subsequent publication. Monitor and evaluate implementation 10. Because demonstrating real progress at country level is critical, under the leadership of the partner country we will periodically assess, qualitatively as well as quantitatively, our mutual progress at country level in implementing agreed commitments on aid effectiveness. In doing so, we will make use of appropriate country level mechanisms. 11. At the international level, we call on the partnership of donors and partner countries hosted by the DAC to broaden partner country participation and, by the end of 2005, to propose arrangements for the medium term monitoring of the commitments in this Declaration. In the meantime, we ask the partnership to co-ordinate the international monitoring of the Indicators of Progress included in Section III; to refine targets as necessary; to provide appropriate guidance to establish baselines; and to enable consistent aggregation of information across a range of countries to be summed up in a periodic report. We will also use existing peer review mechanisms and regional reviews to support progress in this agenda. We will, in addition, explore independent cross-country monitoring and evaluation processes – which should be applied without imposing additional burdens on partners – to provide a more comprehensive understanding of how increased aid effectiveness contributes to meeting development objectives. 12. Consistent with the focus on implementation, we plan to meet again in 2008 in a developing country and conduct two rounds of monitoring before then to review progress in implementing this Declaration. II. Partnership Commitments 13. Developed in a spirit of mutual accountability, these Partnership Commitments are based on the lessons of experience. We recognise that commitments need to be interpreted in the light of the specific situation of each partner country. OWNERSHIP Partner countries exercise effective leadership over their development policies, and strategies and co-ordinate development actions 14. Partner countries commit to:
15. Donors commit to:
ALIGNMENT Donors base their overall support on partner countries’ national development strategies, institutions and procedures Donors align with partners’ strategies 16. Donors commit to:
implementing these strategies3 (Indicator 3).
justification exists and would be undertaken transparently and in close consultation with other donors and stakeholders.
each donor’s conditions should be derived from a common streamlined framework aimed at achieving lasting results. Donors use strengthened country systems 17. Using a country’s own institutions and systems, where these provide assurance that aid will be used for agreed purposes, increases aid effectiveness by strengthening the partner country’s sustainable capacity to develop, implement and account for its policies to its citizens and parliament. Country systems and procedures typically include, but are not restricted to, national arrangements and procedures for public financial management, accounting, auditing, procurement, results frameworks and monitoring. 18. Diagnostic reviews are an important — and growing — source of information to governments and donors on the state of country systems in partner countries. Partner countries and donors have a shared interest in being able to monitor progress over time in improving country systems. They are assisted by performance assessment frameworks, and an associated set of reform measures, that build on the information set out in diagnostic reviews and related analytical work. 19. Partner countries and donors jointly commit to:
20. Partner countries commit to:
accountable and transparent.
21. Donors commit to:
country systems and procedures (Indicator 5).
Partner countries strengthen development capacity with support from donors 22. The capacity to plan, manage, implement, and account for results of policies and programmes, is critical for achieving development objectives — from analysis and dialogue through implementation, monitoring and evaluation. Capacity development is the responsibility of partner countries with donors playing a support role. It needs not only to be based on sound technical analysis, but also to be responsive to the broader social, political and economic environment, including the need to strengthen human resources. 23. Partner countries commit to:
24. Donors commit to:
(Indicator 4). Strengthen public financial management capacity 25. Partner countries commit to:
26. Donors commit to:
27. Partner countries and donors jointly commit to:
Strengthen national procurement systems 28. Partner countries and donors jointly commit to:
29. Partner countries commit to take leadership and implement the procurement reform process. 30. Donors commit to:
Untie aid: getting better value for money 31. Untying aid generally increases aid effectiveness by reducing transaction costs for partner countries and improving country ownership and alignment. DAC Donors will continue to make progress on untying as encouraged by the 2001 DAC Recommendation on Untying Official Development Assistance to the Least Developed Countries (Indicator 8). HARMONISATION Donors’ actions are more harmonised, transparent and collectively effective Donors implement common arrangements and simplify procedures 32. Donors commit to:
activities and aid flows. Increased use of programme-based aid modalities can contribute to this effort (Indicator 9).
practice. Complementarity: more effective division of labour 33. Excessive fragmentation of aid at global, country or sector level impairs aid effectiveness. A pragmatic approach to the division of labour and burden sharing increases complementarity and can reduce transaction costs. 34. Partner countries commit to:
35. Donors commit to:
Incentives for collaborative behaviour 36. Donors and partner countries jointly commit to:
Delivering effective aid in fragile states
states, they need to be adapted to environments of weak ownership and capacity and to immediate needs for basic service delivery. 38. Partner countries commit to:
39. Donors commit to:
political engagement; and practical initiatives such as the establishment of joint donor offices. Align to the maximum extent possible behind central government-led strategies or, if that is not possible, donors should make maximum use of country, regional, sector or non-government systems.
Promoting a harmonised approach to environmental assessments 40. Donors have achieved considerable progress in harmonisation around environmental impact assessment (EIA) including relevant health and social issues at the project level. This progress needs to be deepened, including on addressing implications of global environmental issues such as climate change, desertification and loss of biodiversity. 41. Donors and partner countries jointly commit to:
environmental assessment” at the sector and national levels.
42. Similar harmonisation efforts are also needed on other cross-cutting issues, such as gender equality and other thematic issues including those financed by dedicated funds. MANAGING FOR RESULTS Managing resources and improving decision-making for results 43. Managing for results means managing and implementing aid in a way that focuses on the desired results and uses information to improve decision-making. 44. Partner countries commit to:
should track a manageable number of indicators for which data are cost-effectively available (Indicator 11). 45. Donors commit to:
indicators that are not consistent with partners’ national development strategies.
extent possible on joint formats for periodic reporting. 46. Partner countries and donors jointly commit to:
MUTUAL ACCOUNTABILITY Donors and partners are accountable for development results 47. A major priority for partner countries and donors is to enhance mutual accountability and transparency in the use of development resources. This also helps strengthen public support for national policies and development assistance. 48. Partner countries commit to:
49. Donors commit to:
50. Partner countries and donors commit to:
(Indicator 12). III. Indicators of Progress To be measured nationally and monitored internationally OWNERSHIPTARGET FOR 2010 1. Partners have operational development strategies — Number of countries with national development strategies (including PRSs) that have clear strategic priorities linked to a medium-term expenditure framework and reflected in annual budgets. At least 75% of partner countries have operational development strategies. ALIGNMENTTARGETS FOR 20102. Reliable country systems — Number of partner countries that have procurement and public financial management systems that either (a) adhere to broadly accepted good practices or (b) have a reform programme in place to achieve these.(a) Public financial management – Half of partner countries move up at least one measure (i.e., 0.5 points) on the PFM/ CPIA (Country Policy and Institutional Assessment) scale of performance. (b) Procurement – One-third of partner countries move up at least one measure (i.e., from D to C, C to B or B to A) on the four-point scale used to assess performance for this indicator. 3. Aid flows are aligned on national priorities — Percent of aid flows to the government sector that is reported on partners’ national budgets. Halve the gap — halve the proportion of aid flows to government sector not reported on government’s budget(s) (with at least 85% reported on budget). 4. Strengthen capacity by co-ordinated support — Percent of donor capacity-development support provided through coordinated programmes consistent with partners’ national development strategies. 50% of technical co-operation flows are implemented through co-ordinated programmes consistent with national development strategies. 5a. Use of country public financial management systems — Percent of donors and of aid flows that use public financial management systems in partner countries, which either (a) adhere to broadly accepted good practices or (b) have a reform programme in place to achieve these. P E R C E N T O F D O N O R S Score* Target 5+ All donors use partner countries’ PFM systems. 3.5 to 4.5 90% of donors use partner countries’ PFM systems. P E R C E N T O F A I D F LOWS Score* Target 5+ A two-thirds reduction in the % of aid to the public sector not using partner countries’ PFM systems. 3.5 to 4.5 A one-third reduction in the % of aid to the public sector not using partner countries’ PFM systems. 5b. Use of country procurement systems — Percent of donors and of aid flows that use partner country procurement systems which either (a) adhere to broadly accepted good practices or (b) have a reform programme in place to achieve these. PERCENT OF DONORS Score* Target A All donors use partner countries’ procurement systems. B 90% of donors use partner countries’ procurement systems. PERCENT OF AID FLOWS Score* Target A A two-thirds reduction in the % of aid to the public sector not using partner countries’ procurement systems. B A one-third reduction in the % of aid to the public sector not using partner countries’ procurement systems. 6. Strengthen capacity by avoiding parallel implementation structures — Number of parallel project implementation units (PIUs) per country. Reduce by two-thirds the stock of parallel project implementation units (PIUs).7. Aid is more predictable — Percent of aid disbursements released according to agreed schedules in annual or multiyear frameworks.Halve the gap — halve the proportion of aid not disbursed within the fiscal year for which it was scheduled. 8. Aid is untied — Percent of bilateral aid that is untied. Continued progress over time. HARMONISATION TARGETS FOR 2010 9. Use of common arrangements or procedures — Percent of aid provided as programme-based approaches. 66% of aid flows are provided in the context of programmebased approaches. 10. Encourage shared analysis — Percent of (a) field missions and/or (b) country analytic work, including diagnostic reviews that are joint. (a) 40% of donor missions to the field are joint. (b) 66% of country analytic work is joint. MANAGING FOR RESULTS TARGET FOR 2010 11. Results-oriented frameworks — Number of countries with transparent and monitorable performance assessment frameworks to assess progress against (a) the national development strategies and (b) sector programmes. Reduce the gap by one-third — Reduce the proportion of countries without transparent and monitorable performance assessment frameworks by one-third.MUTUAL ACCOUNTABILITYTARGET FOR 2010 12. Mutual accountability — Number of partner countries that undertake mutual assessments of progress in implementing agreed commitments on aid effectiveness including those in this Declaration. All partner countries have mutual assessment reviews in place. Important Note: In accordance with paragraph 9 of the Declaration, the partnership of donors and partner countries hosted by the DAC (Working Party on Aid Effectiveness) comprising OECD/DAC members, partner countries and multilateral institutions, met twice, on 30-31 May 2005 and on 7-8 July 2005 to adopt, and review where appropriate, the targets for the twelve Indicators of Progress. At these meetings an agreement was reached on the targets presented under Section III of the present Declaration. This agreement is subject to reservations by one donor on (a) the methodology for assessing the quality of locally-managed procurement systems (relating to targets 2b and 5b) and (b) the acceptable quality of public financial management reform programmes (relating to target 5a.ii). Further discussions are underway to address these issues. The targets, including the reservation, have been notified to the Chairs of the High-level Plenary Meeting of the 59th General Assembly of the United Nations in a letter of 9 September 2005 by Mr. Richard Manning, Chair of the OECD Development Assistance Committee (DAC). *Note on Indicator 5: Scores for Indicator 5 are determined by the methodology used to measure quality of procurement and public financial management systems under Indicator 2 above. Appendix A: Methodological Notes on the Indicators of Progress The Indicators of Progress provides a framework in which to make operational the responsibilities and accountabilities that are framed in the Paris Declaration on Aid Effectiveness. This framework draws selectively from the Partnership Commitments presented in Section II of this Declaration. Purpose — The Indicators of Progress provide a framework in which to make operational the responsibilities and accountabilities that are framed in the Paris Declaration on Aid Effectiveness. They measure principally collective behaviour at the country level. Country level vs. global level — The indicators are to be measured at the country level in close collaboration between partner countries and donors. Values of country level indicators can then be statistically aggregated at the regional or global level. This global aggregation would be done both for the country panel mentioned below, for purposes of statistical comparability, and more broadly for all partner countries for which relevant data are available. Donor / Partner country performance — The indicators of progress also provide a benchmark against which individual donor agencies or partner countries can measure their performance at the country, regional, or global level. In measuring individual donor performance, the indicators should be applied with flexibility in the recognition that donors have different institutional mandates. Targets — The targets are set at the global level. Progress against these targets is to be measured by aggregating data measured at the country level. In addition to global targets, partner countries and donors in a given country might agree on country-level targets. Baseline — A baseline will be established for 2005 in a panel of self-selected countries. The partnership of donors and partner countries hosted by the DAC (Working Party on Aid Effectiveness) is asked to establish this panel. Definitions and criteria — The partnership of donors and partner countries hosted by the DAC (Working Party on Aid Effectiveness) is asked to provide specific guidance on definitions, scope of application, criteria and methodologies to assure that results can be aggregated across countries and across time. Note on Indicator 9 — Programme based approaches are defined in Volume 2 of Harmonising Donor Practices for Effective Aid Delivery (OECD, 2005) in Box 3.1 as a way of engaging in development cooperation based on the principles of co-ordinated support for a locally owned programme of development, such as a national development strategy, a sector programme, a thematic programme or a programme of a specific organisation. Programme based approaches share the following features: (a) leadership by the host country or organisation; (b) a single comprehensive programme and budget framework; (c) a formalised process for donor co-ordination and harmonisation of donor procedures for reporting, budgeting, financial management and procurement; (d) Efforts to increase the use of local systems for programme design and implementation, financial management, monitoring and evaluation. For the purpose of indicator 9 performance will be measured separately across the aid modalities that contribute to programme-based approaches. APPENDIX B: List of Participating Countries and Organisations Participating Countries Albania Australia Austria Bangladesh Belgium Benin Bolivia Botswana [Brazil]* Burkina Faso Burundi Cambodia Cameroon Canada China Congo D.R. Czech Republic Denmark Dominican Republic Egypt Ethiopia European Commission Fiji Finland France Gambia, The Germany Ghana Greece Guatemala Guinea Honduras Iceland Indonesia Ireland Italy Jamaica Japan Jordan Kenya Korea Kuwait Kyrgyz Republic Lao PDR Luxembourg Madagascar Malawi Malaysia Mali Mauritania Mexico Mongolia Morocco Mozambique Nepal Netherlands New Zealand Nicaragua Niger Norway Pakistan Papua New Guinea Philippines Poland Portugal Romania Russian Federation Rwanda Saudi Arabia Senegal Serbia and Montenegro Slovak Republic Solomon Islands South Africa Spain Sri Lanka Sweden Switzerland Tajikistan Tanzania Thailand Timor-Leste Tunisia Turkey Uganda United Kingdom United States of America Vanuatu Vietnam Yemen Zambia Participating Organisations African Development Bank Arab Bank for Economic Development in Africa Asian Development Bank Commonwealth Secretariat Consultative Group to Assist the Poorest (CGAP) Council of Europe Development Bank (CEB) Economic Commission for Africa (ECA) Education for All Fast Track Initiative (EFA-FTI) European Bank for Reconstruction and Development (EBRD) European Investment Bank (EIB) Global Fund to Fight Aids, Tuberculosis and Malaria G24 Inter-American Development Bank International Fund for Agricultural Development (IFAD) International Monetary Fund (IMF) International Organisation of the Francophonie Islamic Development Bank Millennium Campaign New Partnership for Africa’s Development (NEPAD) Nordic Development Fund Organisation for Economic Co-operation and Development (OECD) Organisation of Eastern Caribbean States (OECS) OPEC Fund for International Development Pacific Islands Forum Secretariat United Nations Development Group (UNDG) World Bank Civil Society Organisations Africa Humanitarian Action AFRODAD Bill and Melinda Gates Foundations Canadian Council for International Cooperation (CCIC) Comité Catholique contre la Faim et pour le Développement (CCFD) Coopération Internationale pour le Développement et la Solidarité (CIDSE) Comisión Económica (Nicaragua) ENDA Tiers Monde EURODAD International Union for Conservation of Nature and Natural Resources (IUCN) Japan NGO Center for International Cooperation (JANIC) Reality of Aid Network Tanzania Social and Economic Trust (TASOET) UK Aid Network 
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