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March 31, 2010 |  10 comments |  Print | E-Mail Your Opinion  

Lawrence Haddad

Topic Six Ways to Improve Aid Effectiveness

Lawrence Haddad: Fundamental issues need to be dealt with for aid to Africa to be improved. Donors need to address recipient accountability and allow for greater transparency. Western bodies should also better coordinate their efforts and talk more realistically about the successes and challenges of aid.

Aid has the potential to transform the lives of millions of people: through cash transfer programmes that protect people against shocks like earthquakes and financial crises; by getting more children into school; in starting up microfinance programmes that give the poorest people access to credit; through introducing vaccination programmes; developing drought tolerant crops; the list goes on.

But as allegations of corrupt African governments siphoning off large percentages of aid money for their own uses – even to buy arms – continue to appear across the UK media, how can we make aid work better? How can we rebuild trust in aid from citizens in donor countries at a time when they are feeling cuts in government expenditure at home? How can we minimise this leakage of aid to the wrong uses and give additional voice to the people whose lives it is meant to improve? Below I have outlined six steps that I believe will improve aid effectiveness across Africa.

  • We need to fix the broken feedback loop. Donors currently fund African civil society organisations to hold their own governments to account, but who is holding the donors to account? Who can blow the whistle when donors get things wrong? Donors must empower Africans to give direct feedback on the relevance, effectiveness and impact of their aid by funding African citizens to hold donor countries to account.
  • All organisations should have to publish the results of their own efforts at meeting their own commitments – in particular when they fail to meet them. If a Millennium Development Goal is met, everyone takes the credit. If a Millennium Development Goal target is off course, no-one takes responsibility. Development organisations must make their commitments clear, support monitoring and evaluation and make plans for what they will do if they miss their targets. This should be supported by funding for the collection of commitment indices.
  • We need to limit the number of donor transactions that recipients are expected to engage with. It might be possible to achieve this by introducing Owen Barder’s idea of mission trading – which would allow a finite numbers of visits (or missions) by any donor to each country. If a donor wants to increase their missions to a particular country they must trade with those who need less. This would change the power dynamic between donors and recipients of aid.
  • Those of us who work in development need to focus more on influencing other parts of donor government – those that work in financial regulation, energy regimes, drug trafficking, and arms trading for example. These activities by donor countries all have a big impact on both development space and governance across Africa.
  • We must begin to plan for aid exits, even if they won’t happen for 10-15 years. This will help to build trust in the citizens from donor countries and engender a sense of urgency on the recipient side.
  • We need to do more to communicate the successes and risks of aid in a more genuine and less ‘public relations’ way. Uninterrupted success stories rightly make people suspicious. Citizens in donor countries will be better able to trust African success stories and will become less cynical of aid if they are able to understand why calculated and defensible risks don’t always work.

Dr. Lawrence Haddad is Director of the Institute of Development Studies.

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Olaf  Theiler

March 31, 2010

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Quote: "We need to do more to communicate the successes and risks of aid"

I can't agree more. For me, the whole issue of international aid (beyond the humanitarian relieve approach) is just causing questions:
- I am no expert on aid, but I really wonder what the successes are of almost 40 years of international aid to Africa and other places. Are there any success-stories in terms of enduring change of live and sustainable change in societies and states?
- What are the relations of aid and development?
- Is there a relationship of faild states or fragile states and aid? Can aid shield fragile states from becoming faild states, and how?
- Can and should aid policy try to influence the development of states, their societies or social systems and structures beyond the humanitarian factor?

There is not much known on aid beyond the regular requests for help (mostly on purely humanitarian level). Aid policy seems to be a black hole, not only in terms of money invested without transparancy of its use and long term effects, but also in terms of public visibility.
Tags: | aid | failed states |
 
Member deleted

March 31, 2010

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Quote: "Western bodies should also better coordinate their efforts and talk more realistically about the successes and challenges of aid."

It is a well known task for an economist to maximize an outcome subjected to certain exogenous variables. Even if only poverty is to be minimized a set of isolated actors, such Western bodies, will never lead towards an realistic or even practical approach.

For example point one isolated is well set, however, what shall be the expected effect of supporting local NGOs as long as "non Western" actor supports the subjected elite with sufficient firepower and money to perform an absolutely independent way of life. Independent of the people to be more precisely.

A known African nation recently clubbed an opposition movement to bits and pieces under the eyes of he world through a well financed paramilitary force on the ground despite criminal charges in The Hague. Another nation neighboring the Middle East from the other side catch ones eyes on a much more severe level, however without any need for aid.

 
Greg Randolph Lawson

March 31, 2010

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Real success stories need to be highly publicized, that is certainly true.

However, count me in the camp that is skeptical that aid will ever live up to its goals absent dramatic reforms of many of the governments themselves. Authoritarian and kleptocratic regimes such as Zimbabwe or nations without any functional government like Somalia will never find positive ways to utilize financial resources unless there are significant changes in the government (or establishment of a government in Somalia's case).

All the funding of NGOs won't matter if the regime in charge is significantly corrupt and looking to line its own pockets while violently marginalizing opposition.

Ironically, one must consider how to ease bad governments out of power or install reaonably effective governments in chaos zones before worrying about aid.

After those actions, which are obviously much easier said and suggested than done, we can talk about transparency, cooperation and publicity. To talk about those things before dealing with the governments, or lack thereof, in question is putting the cart before the horse.
 
Member deleted

March 31, 2010

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In my eralier article “Donors & Fied: Will Kosovo rise with 2 bn bucks?” http://arirusila.wordpress.com/2008/07/11/donors-field-will-kosovo-... I describet following example:

"There is big gap between original donors´ideas and real effects of their donation on the field. Earlier some donors gave money to build school in some Kosovo village. School was ready, nice photograf for donors´media was taken, report confirmed that building was made ok, also tendering procedures were made with some standards, audit did not find anything special. So perfect project to satisfy donor? no one pointed attention to a small detail that there was no pupils for the brad new school. Similar examples are bridges, roads and swimming pools middle of no where, housing for returns (empty because people are not returning or going away immediately)."

The lesson learned is that perfect report does not mean that something positive development has happened on the field. Reports are describing how money is spend. More effective is concentrate to challenge what to do with donations. Time is also one dimension – needs during donors´conference are not necessary the same than those when money actually arrives to destination.

I do not believe that the case I have described is unique in Balkans or universally with development projects by big donors. From project management point of view I like to highlight following aspects:

* At planning stage the correct information from the field should be provided, not only high level marketing reports
* The Aim(s) and output should be clearly defined and understood by both donor and beneficiar
The final project plan should include realistic Logical Framework Approach (LogFrame)
* At implementation stage the events on the ground and the progress reports should be compared to verification measures in LogFrame
* The feedback from the event on the ground level and about inappropriate connections on the management level should be used to make necessary correction to original plan
If the aims of original plan look unreachable or the methods with implementation are incorrect the financier should have courage to stop project when it is still ongoing without waiting yearlong investigations to be ready
* Internal investigations should be supported not prevented by donor management.

The biggest mismanagement or misuse of Aid money is not according my opinion local criminal activities. The strategic error has made in international level by not knowing the demands on the ground, not adjusting ideas and plans according local needs or the moment of Aid delivery, using indefinite mixture of emergency relief and long term planning, lack of simple and unambiguous development strategy and strategic leadership.

The strategic error is to use Aid funds only in a right way, not to right purposes.
 
Unregistered User

April 1, 2010

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I agree with pretty much all this, Lawrence. Within the aid system, I’d give top priority to fixing the broken feedback loop; and for development policy more broadly I’d focus on better influencing the other parts of donor governments.

I'm least convinced by your argument for planning for aid exits. On the contrary, I think aid suffers from the pretense that it is temporary, with everyone having to claim that aid projects will catalyse permanent change. Every programme has to be designed to look as if it will only require aid for a short time, after which it will be self financing. This makes donors too reluctant to invest in excellent programmes which are likely to need sustained funding over many years.

And I’d add predictability – surely one of the most important improvements in aid that donors could easily make. aid is made hugely less effective by lack of predictability. Homi Kharas has estimated that the cost of aid volatility is between 15 and 20 percent of the total value of aid, or about $16 billion a year. From the average recipient’s perspective, the deadweight loss is about 1.9 percent of GDP. Ironically, many of the drivers of lack of predictability (such as donor conditions) are intended to ensure that aid is effective, and have the unintended consequence of making it less so. This is the most requested improvement from developing countries, and it is something that donors could do relatively easily.
 
Unregistered User

April 1, 2010

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Thanks to all for the comments.

1. On what are the successes of aid--there are many, they are just not well known. The list includes dramatically improved food production and income generation (we still have 1 billion hungry but it would have been nearer 3 billion without the green revolution), immunizations that have saved millions of kids lives, dramatically improved school enrollment, hundreds of thousands of lives prolonged by anti-retrovirals, reduced malaria incidence and the list oes on. These are communicated weakly by the international development community who are complacent about the existence of aid flows

2. On corruption. Corruption exists wherever there are resoruce flows. 20% of the Hurricane Katrina aid flows were estimated to have been siphoned off. In the UK there are benefit cheats. Does one failed election mean that democracy is a failure? Grand corruption should be the target, and feebacksystems and cocmmitment indices--fuelled by civil society can help expose this, hopefully without reprisals, to change behaviour.

3. On the gap between donors ideas and field realities, I agree, and this strengthens the case for fixing the broken feedback loop--to make sure that donors cannot suspend disbelief.

4. On exits. Yes, the case can go either way, and it reminds me, unfortunately, of the debates in the US on when to exit from Iraq. All I would say Owen, is that there is not enough discussion of the issue--most people in the donor community assume it will go on in perpetuity.

Keep the comments coming.



 
Rebecca Ann Greenwald

April 7, 2010

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-I wholeheartedly agree with Mr. Rusila's point that we need better tracking and measurement systems, after all how can aid programs be deemed "successful" if success isn't defined in terms of concrete goals and objectives within specific timeframes?

-I think that Mr. Haddad makes an important point when he brings up the need for greater accountability. This seems to lead to an overarching problem in the aid realm that both aid donors and recipients are failing to follow through with their endeavors- aid programs are started but not carried through properly, recipients get money but don't have to answer to anyone, etc.

-The PR and media representation of aid programs and their results is also important to this discussion, and I'm glad that Mr. Haddad raises the point. Since the media does so much to influence the decisions of both citizens who donate money to charities and policymakers who actually decide who gets aid money and how much, it needs to present both the successes and failures of aid programs in a frank, constructive, and explanatory manner.

-Both Mr. Theiler and Mr. Lawson's point remind me of a key question in the aid debate:

Should aid money be going to the states that needs it most (often the ones with the most corrupt regimes) or should it go to states that have demonstrated good governance and an ability to effectively implement programs?
 
Member deleted

April 8, 2010

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A couple of comments to Mrs. Greenwald:

"Should aid money be going to the states that needs it most (often the ones with the most corrupt regimes) or should it go to states that have demonstrated good governance and an ability to effectively implement programs?"

The answer to your key question is complicated. First there is difference if we speak about emergency aid or more long term state building projects. In emergency case I think that effective actions can be made even without state authorities, directly on the field, in second case results are very difficult to achieve without government commitment.

Speaking development projects on the ground - not on emergency stage - there are many alternatives depending individual cases. Easiest is to give aid through generalized budget support - results will vary from state to state. Through sector program assistance is the other option. Then it is possible contract international or national NGOs for implementation or give aid through multilateral mechanisms such as World Bank, UN programs etc. The core question too is to find in each case right balance between aid through government or aid through civil society organizations.

Some critical examples can be found from my earlier articles e.g. “Squandering Kosovo's Aid Funds” http://arirusila.wordpress.com/2008/12/22/squandering-kosovos-aid-f...
“World Bank destroyed Albanian village in joint operation with corrupted Government – a typical crime story from Balkans” http://arirusila.wordpress.com/2009/02/12/world-bank-destroyed-alba...
“Bulgaria wrestles for EU funds and credibility” http://arirusila.wordpress.com/2008/07/23/bulgaria-wrestles-for-eu-...

Whatever channel for Aid is selected from my viewpoint the core issue is to apply the Logical Framework Approach for implementation as well some more improved versions of it such as further developed Social Framework or Appreciative Inquiry tool (presentation in http://arirusila.files.wordpress.com/2010/04/sida28355en_lfa_web.pdf) developed by SIDA(Swedish dev.aid agency))
 
Member deleted

April 9, 2010

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Related to issue a quite critical study made by The Palestine Economic Policy Research Institute (MAS) was published in UN Seminar on Assistance to the Palestinian People on 25 March 2010 in Vienna.

The core conclusions were that despite the considerable economic help from various institutions of the international community and NGOs – about 20 billion US Dollars over the last 15 years

“it has been almost impossible to trace any positive impact of these mobilized resources on the ground” and “the GDP of 2009 is 13% lower than the GDP of 1999, and the GDP per capita is 30% lower for the same years”.

I also wrote an article "Palestine – Placebo effect for people and society with 20 bn bucks" http://arirusila.wordpress.com/2010/04/09/palestine-%e2%80%93-place... based to paper mentioned and the headline tells the main content.
Tags: | Palesti | international aid |
 
Ann H. Sontz

June 17, 2010

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Local and regional acceptance of aid to Africa is highly dependent on the general health of receiving populations. In this respect, the fight against the spread of HIV-1 has been both widespread and successful in reducing both human and pharmaceutical costs.

Unfortunately, another type of HIV Virus,the HIV-2, has taken hold in many parts of Africa.It appears to be quite different from drug-resistant HIV-1 cases where drug admixtures can be changed appropriately. First diagnosed in 2004, diagnosis requires a separate type of test while drug treatment itself remains unavailable. HIV-2 can be confused with HIV-1and drug recipients treated with inexpensive medications of uncertain application. Equally unfortunately,while people with HIV-1 can live without symptoms for many years, those with HIV-2 suffer and succumb very quickly.

Because HIV-2 appears to both infect cells and destroy specific cell proteins necessary for function, there is some hope that HIV research in general will turn again to vaccine development. In the meantime, service delivery might focus on the differential diagnosis of HIV types in Africa as well as differential modes of drug transfers and care.
Tags: | Africa | HIV | Service Delivery Aid |
 

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