Official Development Assistance (ODA)
Overview and Evaluation of the 2006 Asian Regional Forum on Aid Effectiveness





October 2006
1. Period
October 18-20, 2006
2. Venue
Asian Development Bank Headquarters, Manila, Philippines
3. Co-organizers
The Government of Japan, UK Department for International Development (DFID), the Asian Development Bank, and the World Bank. (Cooperating agencies: the Organization for Economic Development and Cooperation (OECD) and the Development Assistance Committee (DAC).)
4. Participants
20 countries in Asia and Pacific, 29 donor countries and agencies (including co-organizers)
5. Purpose
(1) To assess the achievement of implementation of the Paris Declaration (adopted in March 2005) in Asia; to identify the achievements and constraints of Asian countries' efforts to improve aid effectiveness.
(2) To take stock good practices in Asia and the views of Asian countries in order to reflect experiences and the achievements of aid provided by Japan in Asian countries in order to improve framework for further aid effectiveness.
The Paris Declaration on Aid Effectiveness
Recognizing that it is essential to improve both the quality and volume of aid in order to achieve internationally agreed development goals such as the UN Millennium Development Goals (MDGs), the Paris Declaration outlines the commitments made by donors and partner countries, which together constitute the measures required to improve the quality of aid and thereby enhance aid effectiveness. The five principles of aid effectiveness include the ownership of recipient countries, the alignment of projects implemented in line with the policies and institutions of recipient countries, and harmonization of donors. 56 partnership commitments are agreed in order to put the principles into practice, and 12 monitoring indicators were established to monitor the implementation of the commitments periodically.
At present, the donors and partner countries participating in the Paris Declaration include 102 countries and 24 international agencies, and efforts to facilitate its implementation are underway.
6. Results
(1) Significance of the forum in international context
(i) Efforts aimed at improving aid effectiveness are moving forward in Asian countries based on the Paris Declaration adopted in 2005. In this forum, participants shared their experiences in harmonizing the aid provided by donors and alignment of projects with the policies and systems of the recipient countries. They also exchanged information on what efforts toward implementing ODA in Asia have been successful and what results have been achieved. Recipient countries and donors also shared a recognition that the ownership of recipient countries is of crucial importance in improving aid effectiveness.
(ii) In order to achieve the MDGs and other development goals, donors and recipient countries reaffirmed the challenges that they must address together as they work to improve aid effectiveness, and the direction in which these efforts should head for was outlined in the Chair's Summary. These efforts includes: capacity development through improvements in the quality of technical cooperation to enable recipient countries to undertake leading roles in their national development; strengthening and utilizing the institutions of recipient countries (e.g., public financial management, procurement, and auditing) through coordination among donors for promoting independent development by recipient countries; and were focused resource allocation according to the comparative advantage of each donor.
(iii) In this forum, officials in charge of evaluation and officials in charge of policy met for discussions and agreed on the importance of evaluation in improving aid effectiveness and on the importance of policy efforts in linking evaluations with specific policy measures. They also agreed on the importance of continuous efforts aimed at strengthening evaluation capacities of developing countries.
(iv) Discussions were held concerning the growing importance of new donors such as China and India and concerning the need to implement aid in accordance with common rules by encouraging the participation of new donors in efforts to improve aid effectiveness so as to achieve common development goals. The importance of strengthening dialogue between new donors and DAC donors and ensuring transparency was affirmed in the Chair's Summary.
(2) Significance of the forum for Japan
(i) Improving aid effectiveness is currently a key issue in development assistance. Aimed at facilitating implementation of the Paris Declaration, this regional forum was held with co-sponsorship by the UK Department for International Development (DFID), the Asian Development Bank, and the World Bank under Japan's leadership. In it, Japan was able to share with Asian countries and other donors its experiences in providing aid in Asia, the results it has achieved, and the measures it has taken to improve aid effectiveness. These efforts will form the basis of work for reflecting experiences and results of providing aid in Asia in improving a framework for further aid effectiveness.
(ii) In this forum, Japan obtained the support of the various Asian countries and donors for the priorities it has put forth, such as the importance of capacity development, the complementarity of the various assistance schemes, the need for consideration of the specific context of each country, and the requirement for stronger efforts for the Paris Declaration including the various parties concerned, aimed at achieving development objectives such as the MDGs. Those views were recorded in the Chair's Summary.
(iii) It was affirmed that capacity building, which is the foundation for improving aid effectiveness, has moved forward in Asia, where Japan has focused much of its assistance. There was also common understanding to engage in further efforts aimed at implementing the Paris Declaration. As a result, this forum represented an important opportunity for Japan to improve aid effectiveness and hence development results.
7. Future efforts
(1) Challenges for donors specified by the Paris Declaration -- that is, promoting harmonization and alignment with the policies and institutions of recipient countries -- are moving forward on the grand in various countries. To promptly respond to these developments, Japan must enhance efforts aimed at building local capacity and promote understanding of the local ODA task forces on the Paris Declaration and active participation in donor coordination.
(2) In the Third DAC High-Level Forum on Aid Effectiveness (Ghana HLF) scheduled to be held in Ghana in 2008, international consensus will be made concerning how we move forward to enhance aid effectiveness and the Accra Agenda for Action (AAA) is expected to be adopted based on this agreement. To meet these upcoming developments, Japan must actively publicize its aid principles and the experience and knowledge it has acquired through implementation of development assistance up to now.
(3) It is essential that Japan sincerely address the need for efforts to further improve the implementation of ODA based on the commitments outlined in the Paris Declaration. Japan must further the shift to programmed aid, improve the quality of country assistance plans and rolling plans, including the process of formulating such plans, and identify problems with the current process of project implementation in increasing ownership by recipient countries.