My heart bleeds to remind the world that only one out of thirteen key metrics set forth for increasing aid effectiveness at the Paris Declaration six years ago has been met; and just by a narrow margin. Thus, we need to review and act for the common good of the world’s citizens. The world as a whole, especially donors and recipients of foreign aid need to view aid as a vehicle for sustainable development, rather than a means of achieving ulterior motives. This is possible if all stakeholders decide to “rethink aid” with the aim to make a real difference, as it has been advised in several conferences related to the above topic.
According to Jeffrey D. Sachs, The “actual transfer of funds must be based on rigorous, country-specific plans that are developed through open and consultative processes, backed by good governance in the recipient countries, as well as careful planning and evaluation.” With this introduction and my personal belief that the recipients of aid owe themselves a greater responsibility for its effective usage, I will go on to do justice to this topic.
Strategies and innovative practices which I advocate include:
- Delivering aid to least developed countries more in terms of technical resources, rather than financial payouts
- Channeling aid resources to social entrepreneurship ventures which contribute to sustainable development
- Tailoring aid support towards development areas with strong country ownership
- Enhanced monitoring of aid negotiation and aid usage by Civil Society Organizations (CSO) in recipient countries
Delivery of Aid in Terms of Technical Rather than Financial Resources
One of the greatest impediments to effective aid administration in least developed countries is the misappropriation of funds by individuals and government officials, who are expected to utilize these funds for developmental purposes. Statistics from the United Nations Office indicate that about thirty three (33) African countries are ranked the world’s least developed forty nine (49) countries, despite the fact that over one (1) trillion dollars of aid has trickled into the African continent within the last fifty years.
Also, the Sub-Saharan African region, where a number of the 33 countries mentioned above are located has been noted as the region lagging behind most in terms of reaching the Millennium Development Goals (MDG’s) on a global scale. Therefore, I would advocate that foreign aid transfers to these areas are more in terms of technical resources including education, health care, technology transfer and infrastructural development. For instance, aid in terms of technical resources can be provided by funding housing projects for citizens in poor countries, using results from the $300 dollar house idea. Several other ideas can be discussed in further detail by innovative teams seeking to tackle aid effectiveness.
Provision of aid support in technical terms will make it less attractive to those with ulterior motives, since technical resources are less liquid than cash.Thus, the real people who need the resources can benefit appropriately. Also, technical aid has contributed to greater personal development for citizens in the countries where they are administered. For instance, foreign aid in form of education and scholarships have lifted people out of poverty and made them citizens who made a mark in their chosen fields.
Enhancing Aid Effectiveness via Technical and Financial Support for Social Entrepreneurship Ventures
Social Entrepreneurship ventures have proven to be a very potent means of driving development in different countries across the world and I strongly believe that foreign aid support and monitoring of such ventures by donor organizations will deliver the much needed change in developing countries. These ventures can contribute greatly towards the achievement of the Millennium Development Goals (MDG’s), since social entrepreneurships are highly innovative and socially responsible profit making ventures that satisfy pressing needs of a large amount of people within its coverage area. Sample ventures in this space include the 300-dollar house idea, delivery of cheap solar panels to off-grid communities in some developing countries, the “Samasource project” and the likes.
The great impact of these social entrepreneurship ventures is that they lead to sustainable development, without preventing the business owners from making profits. When supported by donors and grant administrators, the operators of these social entrepreneurship ventures will put in greater effort to ensure that their businesses stay alive while meeting the critical needs of the people. In addition, foreign aid support for such ventures can make the products and services cheaper and more accessible to the citizens. It must be noted that this support can be either in form of technical or financial resources.
Furthermore, there is a greater level of ownership and acceptance of such ventures by citizens of the host country, leading to developments in multiple fronts via employment opportunities, acquisition of technical knowledge and development of the economy generally.
Aligning Aid Support with Recipients’ Developmental Needs and Country Ownership
Several research studies have shown that poor effectiveness of foreign aid, in terms of real development, stems from the lack of congruence between the intentions for disbursing aid and the key developmental needs of the country, in addition to country ownership issues. The Paris declaration of 2005, which is due for review and renewal at the HLF-4 conference, came up with different parameters to measure aid effectiveness. Results from a recent survey have shown that progress is really below average in most of the areas agreed upon back in 2005.
With regard to the country ownership systems, it was noted that countries are increasingly utilizing this method, but not as extensively as agreed upon in the Paris declaration. Thus, it will be highly beneficial if donor agencies engage recipient countries to understand the rationale for certain decisions (political, economic or otherwise). This way, there will be a greater level of mutual co-operation and trust between the donating and the receiving parties.
Also, the fact that monitoring is more expensive for the donor agency strengthens the case for the use of the recipient country’s systems and processes for monitoring. According to ONE, a grassroots organization active in Africa, “The creation of parallel systems can cause heavy administrative and reporting burdens for country officials, although public financial management and procurement systems in recipient countries need to be strong for donors to use them confidently and consistently”. This line gives wings to the next point outlined below.
Enhanced Monitoring and Capacity Development
One other key area that can accelerate aid effectiveness, especially as the initial target for the achievement of the Millennium Development Goals draws near is in enhanced monitoring of aid usage and capacity development for Civil Society Organizations in the recipient countries.
Donors have a right and responsibility to transparency regarding expenditures and activities related to development assistance in line with the Paris Declaration. Monitoring is a key way to achieve this in order to show value for the effort and funds disbursed. As earlier noted, the use of country systems and processes can contribute to enhanced monitoring especially if capacity within the host country is developed.
When this happens, Civil Society Organizations and other accountability groups will be able to challenge the government and other aid administrators within recipient countries adequately. In addition, the citizens will be more aware of the amount of aid that flows into their country and the value that has come with these disbursements over the years. With success in this area, we can be sure that there will be fewer incidences of narratives like “Dead Aid” in the coming years.
It must be noted that 2015 is just four years away, and it will be really heart-warming if the Millennium Development Goals are truly achieved. Then, donor countries/institutions and other stakeholders will be proud to hold their heads up high and say they have driven real development across countries and touched the lives of millions of people.
It is hoped that these strategies outlined above will be put up for discussion, refined and adopted as action plans in enhancing aid effectiveness on a global scale
M Abbey - A prolific writer who wishes to inform the world based on facts and personal experiences in a bid to impact lives positively.
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