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July 2006

Experiences and Prospects of International Development Agencies New Zealand Agency for International Development NZAID. July 2006. About NZAID. New Zealand’s Aid and Development Agency Aid volume – approx. $US0m annually Central focus on poverty elimination Core focus on the Pacific.

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July 2006

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  1. Experiences and Prospects of International Development AgenciesNew Zealand Agency for International DevelopmentNZAID July 2006

  2. About NZAID • New Zealand’s Aid and Development Agency • Aid volume – approx. $US0m annually • Central focus on poverty elimination • Core focus on the Pacific

  3. Agency Role Established in 2002 (semi-autonomous agency within Ministry of Foreign Affairs and Trade) Contestability of advice – direct reporting to Ministers policy coherence with national interest objectives Focus on policy and strategy Professional understanding on development issues Aid Effectiveness - impact Whole of government approaches – aid, trade, debt, immigration

  4. 18 core partners – Pacific and South-East Asia 10 multilateral partners The big six – Papua New Guinea, Solomon Islands, Vanuatu, Fiji, Indonesia, Vietnam 11 countries in the Pacific Support regional objectives in the Pacific Where do we work

  5. Principles of good aid delivery • Ownership and led by partner • Focus on good governance • Transparency and accountability – on partner budget or through budget processes • Support stable policy making/settings for pro-poor growth • Environmental sustainability – natural resources • Harmonisation and alignment

  6. OECD DAC donors – signed in 2004. Key principles: Strengthen partner countries development planning capability Align support with partners systems and procedures Enhanced accountability of citizens and parliaments Eliminate duplication of efforts Reform and simplify donors policies and procedures Paris Declaration on Aid Effectiveness

  7. The Importance of the Millennium Development Goals • MDG’s Provide basis for measuring impact • Pacific second only after sub-Saharan Africa as less likely to achieve the MDG’s by 2015

  8. Implications for NZAID • Changing our business model • “Fewer, bigger, deeper” activities • Stronger focus on policy dialogue • 5 year strategies; high level consultations, rolling three year programmes

  9. The Pacific Islands Region • Small, vulnerable island economies • Development performance mixed – slow growth • Fragile states • Donor behaviour can have a major influence (positive or negative) on governance • Major donors are AusAID, NZAID, EU, Japan, France, China, Taiwan, WB, ADB • Pacific workshop on Aid Effectiveness

  10. Take context as a starting point Establish state building as a central objective Align with local policy and systems Recognise the political-security-development linkages Promote coherence between donors Working in Fragile States

  11. Major change in way we are delivering support Les s project-based approaches Focus on sector-wide approaches Sector programmes Budget support, Trust Funds, multi-donor projects Delivering Aid

  12. Examples of NZAID Engagement Solomon Islands Education – Sector Wide Approach; Budget Support - $7m p .a. Papua New Guinea – Health Sector Improvement Programme Pacific Plan – regional approaches

  13. The Challenge of Visibility good aid builds the best relationships Donors can still have visibility within sector or multi-donor approaches partner ownership letting go – reducing branding

  14. Working with other donors • Non-DAC Donors • NZAID committed to working with other donors • Sharing collective experiences • Progress harmonisation • Focus on development and stability in the Pacific

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