The Why – Mandate and Commitments

1. Strengthening Country Capacities to Manage and Coordinate AidUNDP Products and Services Bureau for Development Policy/Capacity Development GroupDecember 2008

2. The Why – Mandate and Commitments

3. MDG-based Development Outcomes Evaluation MDG-based Development Outputs Accountable National Processes, Institutions and Systems Aid Quality Aid Quantity/ Resourcing Capacity Financial Needs Assessment Assessment/Costing Indicators MDG-based National Development Strategies Managing for Results as Guiding Principle The How - UNDP Framework for Policy Support Country Ownership Process (incl. RRPs) Monitoring Implementation Aid Effectiveness Paris Declaration/AAA FfD Process

4. UNDP Capacity Assessment Framework for Aid Effectiveness Technical Capacities Capacities Technical Capacities Assess situation & define vision and mandate Negotiate and coordinate Formulate policies & strategies Budget, manage & implement Monitor & evaluate National ownership and leadership Policy and institutional framework (incl. country systems) Core Issues Partnerships with internal and external stakeholders Mutual accountability Points of Entry Individual Org’l Enabling Environment Principle of Managing for Development Results

5. Current support • UNDP support provided to over 90 countries on aid coordination/aid management • Country support backed by specialists in regional centres – Bangkok, Dakar, Jo’burg, Beirut, Panama (and possibly Bratislava) • BDP HQ provides policy guidance, coherence, tools, partnerships and quality control • UNDP often chairs/coordinates donor/govt. coordination mechanisms alone or in partnership with the WB • UNDP CoP over 300 members (internal/external)

6. PRINCIPLES of Support Demand driven/identification of UNDP comparative advantages in country context Country Ownership and leadership guiding intervention CD priority with a well defined exit strategy/sustainability Results driven and M&E Coherencewithin UNCT to deliver on the UNDAF Partnership with other donors within aid coordination mechanisms

7. Services and Products • Policy advice on aid coordination and aid management (e.g. aid policies) • Targeted capacity development support to strengthen national capacities to • Coordinate external assistance (e.g. strengthening negotiation skills) • Manage external assistance (e.g. strengthening accountability and transparency through aid management systems, results monitoring, mutual accountability) • Manage outgoing aid for non-traditional donors (e.g. Thailand on ODA, new EU members) • Support to UNCTs/RCs in UN positioning in the country aid environment and to the UN Development Group on implementing the Paris principles. • Support to country, regional and global policy linkages through capacity development (Paris Declaration, monitoring UN Financing for Development process, Development Cooperation Forum). • Tools: UNDP Capacity Assessment Methodology for Aid Effectiveness, checklists, papers, case studies. • Knowledge management: global Community of practice (over 300 members), one internal website (http://content.undp.org/go/practices/poverty/aid-coordination/?src=pov), one external website (www.aideffectiveness.org).

8. 2008

9. Country • Ukraine, Ministry of Economy, 2007 Opportunity • In order to identify constraints and opportunities relating to aid coordination and aid management, the Ministry of Economy decided to undertake an assessment of its capacities for aid coordination and management. • Improving its capacities for both aid coordination and management of external assistance will have far reaching implications for the Government and, if taken seriously, could become a catalyst for wider reforms. Approach • The Ministry of Economy of Ukraine and the United Nations Office in Ukraine decided to deploy a “Joint Capacity Needs Assessment Exercise – Aid Effectiveness, Coordination and Management in Ukraine” prior to the development of a comprehensive capacity development project. • The exercise consisted of two phases: (a) Government self-assessment, using the questionnaire developed by BDP/CDG/AE Team, the questionnaire was sent to 25 governmental bodies and took place from 10 April to 18 May, and (b) experts’ assessment from 29 May to 6 June. The experts’ team consisted of four independent international consultants supported by the RCO coordination officer and UNDP/BDP resource person. More than 30 meetings were convened in Kiev within one week. Major constraint identified: lack of a national strategy. • The experts’ team submitted a report on its findings, which included recommendations for Ukraine on its way to implementing the commitments of the Paris Declaration. The preliminary findings were presented in Kiev. Lessons Learned • Strong engagement with the Government to ensure ownership, which is crucial for the next steps in the capacity development cycles • Capacity assessments have to be customized with the full engagement of national partner. • CA launch of the requires carefully chosen expert consultants and needs to include national experts strongly. • Pre-mission preparation is needed as well as. Applications of Capacity Assessment Methodology

10. Country • Montenegro, 2007-2008 Opportunity Although it is increasingly receiving funding from the European Union, Montenegro also continues to manage the ongoing and planned activities funded by bilateral and multilateral partners. The need for a tool to support project planning, the creation of log frames, management of donor inputs, activities and deadlines, and proposed projects is critical. Approach • UNDP advised the government on the aid coordinaiononand aid management strategy • In 2007 UNDP organised a regional meeting in Montenegro for exchange of lessons learnt, good practiices and solutions – learning through a peer approach. • .To address aid management needs, a system (AMP) was customized specifically for Montenegro (where it is known as the Project Management Platform). Currently, donor-government coordination mechanisms are fairly weak. Coordination • Lessons Learnt • __________________________________________________________________________________________ • Approach to aid coordination and aid management should be .within the broader context of economic governance and capacities of country institutions. • Country ownership and commitment is the guarantee of sustainability and country leadership is the must of the design of aid coordination/management policy. • Partnerships within government and with donors are essential for the commitment to data provision and use of the system. • Government capacity to manage the aid management system is crucial for ownership and sustainability. Applications of AIMS

11. UNDG/UNCT and UNDP role • UNDP leads with the UNDG on these issues through its broad development mandate • UNDP supports the RC in his/her donor coordination role • Joint UNDG delegation and platform for Accra HLF; joint UNDG policy statement and Administrator’s statement at Doha FfD • Integration of PD/AAA commitments into UNDG policies, rules, procedures and UNDAFs

12. Administrator to RCs after Doha – on March 2009 meeting – Doha follow-up • This is an important opportunity to ensure the voices of developing countries are clearly heard and their needs are resolutely reflected in the final deliberations. UNDP Country Offices, have an important role to play to work with our partner countries to prepare for this conference. •  Governments will need to identify clearly their views on the systemic issues that will need to be addressed in responding to the impact of a world downturn. I am asking Regional Directors to identify with their country offices the most effective ways in which this support can be tailored to individual country circumstances. In this respect, the regional economic commissions, UNCTAD, WTO and the Bretton Woods Institutions will need to be consulted and invited to provide inputs.