Assignment

ID_ATP_EPM314_1322

1. Indicate briefly the main characteristics of the international aid architecture since 2000. Since the year 2000 the aid environment has changed significantly, due to three main features: 1. Millennium Development Goals are placed at the heart of the global development agenda, and should be orient all agencies actions; 2. Development assistance should be built around the strategies defined in national Poverty Reduction Strategy Papers; 3. Aid effectiveness should be improved through harmonization and alignment of the external aid to country strategies. As a result, the aid architecture has been modified, showing new characteristics and including new themes. Ownership: It means that partner countries should lead their own development policies and strategies, by developing and implementing national development strategies, and set the agenda for development aid. Development assistance has changed the way of delivery, from project funding to programme-based funding, within an agreed sectorwide policy framework, so donor interventions are justified on the basis of national policies. The Sector Wide Approach (SWAP) is defined as a work method for government and external development partners in which all significant funding for a sector goes to support a single policy and expenditure plan, under government leadership, and which adopts a common approach throughout the sector and advances towards dependence on government financial procedures for the entire amount (Foster, M. 2000). External aid also may help partner countries to strength their capacity to exercise leadership. Alignment: Donors should base their support on partner countries agenda. Aid may help partner countries to develop their own national strategies. Donor uses countries system and procedures which will increase aid effectiveness and strength countries capacity to develop, implement and account for its policy. It includes use of countries national arrangements and procedures for public financial management, accounting, auditing, procurement, results frameworks and monitoring. Harmonisation: Implies harmonization among donor actions by establishing common arrangements, simplifying procedures and sharing information. It will do their actions more transparent, effective and more predictable. Harmonisation also includes looking for complementarity in global, country and sector level by making full use of the donors respective comparative advantage in each level. Paris Declaration on Aid

Assignment

ID_ATP_EPM314_1322

Effectiveness within the harmonisation includes promotion of environmental impact assessments. Managing for results: Managing for results means managing and implementing aid in a way that focuses on the desired results and uses information to improve decisionmaking. According to the OECD glossary, Results-Based Management is a management strategy focusing on performance and achievement of outputs, outcomes and impacts. This method emphasizes on monitoring and evaluation, so assessment frameworks should be established. Mutual accountability: Donors and partner countries are mutually accountable in the use of the development resources. It strength donors and countries accountability to their citizens and parliaments for the development policies and performance. It means carrying periodically asses in order to demonstrate the progress. Paris Declaration on Aid Effectiveness established 12 specific indicators to be used in monitoring the agreements.

2. Verify how the main characteristics of the aid architecture are applied in the education sector. As regarding the new aid-architecture, the Global Partnership on Education was established in 2002, to contribute getting all children into school for a quality education. It started as the Education for All - Fast Track Initiative (EFA FTI). It is a multilateral partnership including development countries, donor governments, international organizations, the private sector, teachers and civil society/NGO groups. The vision of the GPE is A good quality education for all children, everywhere, so they fulfill their potential and contribute to their societies. To achieve this vision, the mission of the GPE is To galvanize and coordinate a global effort to deliver a good quality education to all girls and boys, prioritizing the poorest and most vulnerable. Aligned with the international summits, the GPE promotes the dialogue among partners around shared objectives in the education sector, in order to help developing countries develop and implement their education plans. The core issue to achieve the enrollments of more children in school and provide them quality education is coordination among all the stakeholders, achieving aid effectiveness. According to the commitments established in the Paris Declaration on Aid Effectiveness, GPE encourage donors to support a countrys education sector plan, to reinforce their ownership. It basically refers to encourage countries to lead the developing and implementation of their own strategies within the education sector, coordinating the aid at
2

Assignment

ID_ATP_EPM314_1322

all levels on a basis of dialogue with all the stakeholders. Countries should translate their strategies into result-oriented operational programmes, facilitating monitoring and assessment on the progress and the utilization of the resources, promoting mutual accountancy. Build capacities within the partner countries have become one of the most important issues to be included in the new aid-architecture. Following what has been said, the GPE explain its work in its web site: By promoting dialogue among our partners around shared objectives, we foster mutual accountability, increase our shared knowledge about best practices, and encourage transparency at all levels. Our support strengthens the growth of the entire education system in developing countries while ensuring that external education funding is tracked and coordinated. Ownership, harmonisation and alignment are enhanced through the governance of GPE, it reflects the inclusiveness of the whole partnership in the Board and Financial Committee, which facilitates joint decision-making processes. The Global Partnership has four strategic goals to achieve this vision, goals that focus on: access, quality, equity, and strong national education systems. To reach the goals are five targeted objectives for the period2012-2015. As an example of the prevalence of the new aid-architecture, only a few of them are being added to this document. 1. Fragile and conflict affected states able to develop and implement their education plans. By reinforcing countries capacity to develop their own educational plans, this objective promotes ownership on the partner countries and the alignment of the donor actions to the countries priorities and strategies. 2. All girls in GPE-endorsed countries successfully complete primary school and go to secondary school in a safe, supportive learning environment. 3. Dramatic increase in the number of children learning and demonstrating mastery of basic literacy and numeracy skills by Grade 3.

Objective 2 and 3 have clear relationship with the Millenium Development Goals, especially with Goal 2 and 3. As the MDG are at the heart of the development agenda, international aid has to be addressed in the achievement of them, and in terms of education the Global Partnership on Education is following them. 4. Expand the volume, effectiveness, efficiency and equitable allocation of external and domestic funding and support to education in GPE-endorsed countries.

Assignment

ID_ATP_EPM314_1322

Since the beginning of GPEs replenishment campaign in November 2011, the GPE Fund has received approximately $1.7 billion in commitments, but the goal is to reach $2.5 billion by 2014. As Paris Declaration recognizes the volume on aid and other development resources must increase to achieve Millennium Development Goals. GPE strategic plan is based on their goals and targeted objectives. Progress will be tracked and assessed against the strategic goals and five objectives. Indicators are included in the plan to track the goals and objectives, and are used as markers to guide policy making and decision making. It clearly responds to the relevance of monitoring and evaluate implementation within a common and agreed framework, based on a management resultbased approach. Global Partnership on Education helps developing country governments and their partners to develop education strategies by providing financial support and technical expertise, in different ways: Developing education strategies and programs, Sharing innovative solutions for education, Financing education and Monitoring education results. The main concern is to improve aid effectiveness by joining the Global Partnership, developing countries, donors, international organizations, civil society, the private sector, and private foundations. As it is explained in the GPE web site, the commitment means a country-led process that supports developing country partner governments to plan effectively for results, take the lead on delivery, and effectively manage their finances while being supported by predictable and timely disbursements from donor partners. Coordination, result-based planning and management, and monitoring turn aid more assertive and make funding more transparent and predictable, and improves accountability of the partners. Prioritizing areas of work is an initiative to better address achieving their objectives and goals. Therefore GPE has defined some areas of focus that helps partner countries to build strong knowledge of key education issues. Global Partnership on Education focus its work on Aid Effectiveness, Children with Disabilities, Conflict-affected and Fragile States, Early Childhood Care and Education, Early Grade Reading, Girls' Education, Learning Outcomes, Numeracy and Out-of-School Children. The Global Partnership for Education supports aid effectiveness at both the country and global level. At country level, to build solid coordination mechanisms they promote two specific activities: development of the Educational National Plan carried out by the Local Education Groups (LEG). The LEGs included domestic and international actors and its where the aid effectiveness principles are translated into action.

Assignment

ID_ATP_EPM314_1322

3. Relate funding modalities and programming approaches at country level. FUNDING MODALITY General budget support A method of financing a parteners country budget through a transfer of resources form an external financing agency to the partner governments national treasury, to support macro-economic policy objectives. Funds are channeled directly to a partner countrys budget and managed in accordance to the country budgetary procedures. Sector budget support Is a contribution to the budget of a specific sector. Pooled funds (basket funds) Pooling of financial contributions by the participating donor within a Sector Programme. Balance of payment support Finance support provided to a programme of policy reform measures. PROGRAMMING APPROACH - Usually related to support national development programmes as national poverty reduction strategies (PRS). - Medium-Term Expenditure Framework is an instrument widely used to structure public expenditure-budget support. LIMITATIONS OR CONSTRAINS - It can only be applied in countries which governments have capacities to manage it and the systems are transparent.

Associated with Sector Wide Approach (SWAP), including a sector plan, budget and implementation plan. SWAP, funding could be destined to the hole Sector Program, earmarked specific budget lines or sets of activities. Usually related to support national development programs as national poverty reduction strategies (PRS).

Can be applied in countries with defined Sector Plans but no in those which doesnt have the capacity to develop their own plans. Strong capacities must be existent in the recipient government and technical assistance is required.

IMF has no formal accountability, with little or any attention to how the specific donor foreing exchange will be used. This may allow lack of transparency on the use of the funds. When the aid is targeted in eligible

Assignment

ID_ATP_EPM314_1322

Aid funded debt relief Is the partial or total forgiveness of debt, or the slowing or stopping of debt growth. No funds are transferred.

Related to PRSP (government has more resources available and can put in place poverty reduction strategies).

Project aid using government systems. Aid is provided for a specific set of activities, through governments system. Project aid using parallel systems Donor lead and design the appraisal define inputs and utilize its own accountability procedures. Project aid through NGO/private providers. Funds are addressed to a project undertaken for an NGO or a private provider.

Donor supported project can be part of the government budget within the sector (related to programme-based approach) Project based approach, not integrated to the government system.

imports cant be used to cover emergent needs. A country which borrowed less may have lees developed infrastructure, but major needs than the amount of the debt relief. So the allocation of support should take into account the needs and the prospect for achieving the international development targets. Specific earmarking of expenditure to a certain set of activities.

The project operates as an enclave not fully integrated in the countrys programs and budget.

The proposed project is the most cost-effective way to provide better access by the poor to a socially desirable service.

Could be non-sustainable, and when involving the private sector the competitive market could be undermined as a result of the involvement of concessional finance.

Assignment

ID_ATP_EPM314_1322

4. Reference list Altner, D. 2013. Funding Modalities in the New Aid Environment. EPM 314 Education Sector Programmes and Projects. IIEP UNESCO, Paris. Foster, M. 2000. Experiences with implementing Sector Wide Approach, ODI in Oulai, D. External aid, projects and budgeting in the beneficiary countries, IIEP UNESCO Paris. OECD. 2002. Glossary of Key Terms in Evaluation and Results Based Management