From aid effectiveness to development effectiveness in Ethiopia: A national review with case studies

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Publication Date: 
30 January 2012
Author: 
Xavier Furtado (Coordinator, Protection of Basic Services Secretariat) and Matthew Hobson (Coordinator, Productive Safety Nets Programme Donor Coordination Team)
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Abstract: 

As an input to the 4th High Level Forum on Aid Effectiveness (HLF4), this document brings together two initiatives that, together, can help readers understand the transition from aid to development effectiveness.  Each section first presents a distilled summary of the Government of Ethiopia’s analysis of the quantitative data assessing the country's progress against the Paris Declaration Principles and the indicators embodied in the 2011 Survey on Monitoring the Paris Declaration.  This information is drawn directly from Ethiopia's chapter on its compliance with the Paris Declaration.  Each indicator is then followed by an elaboration of how the two largest multi-donor funded aid programmes in Ethiopia --- the Protection of Basic Services (PBS) Project and Productive Safety Nets Programme (PSNP) --- comply with the Paris Declaration principles and deliver development results.  While Ethiopia's progress towards the Paris Declaration’s principles on aid effectiveness remains, like many capacity-constrained low-income countries, a work in progress, these two programmes provide concrete examples of international best practice taking place in Ethiopia under strong government leadership.

Each indicator is then followed by an elaboration of how the two largest multi-donor funded aid programmes in Ethiopia --- the Protection of Basic Services (PBS) Project and Productive Safety Nets Programme (PSNP) --- comply with the Paris Declaration principles and deliver development results.  While Ethiopia’s progress towards the Paris Declaration’s principles on aid effectiveness remains, like many capacity-constrained low-income countries, a work in progress, these two programmes provide concrete examples of international best practice taking place in Ethiopia under strong government leadership. By combining a summary of the standard high-level assessment of the indicators with concrete case studies, the document hopes to provide a richer and more textured understanding of aid effectiveness in Ethiopia.  Through this combined approach, this document makes clear that relying exclusively on a quantitative analysis of progress masks the genuine progress and exemplary practices that can be found in Ethiopia and that could be replicated in other countries and contexts.  

The main conclusion of this report is that, while Ethiopia's strict compliance with the Paris Declaration principles is variable, 'islands of excellence' exist that showcase how the principles of aid effectiveness can be operationalised in different ways. The report goes on to articulate how, through a clear understanding of the challenges and trade-offs involved in applying the Paris Declaration Principles, donors and aid-receiving governments can move towards a vision of development effectiveness focused on development results for the poor. Through the case studies, this paper will also highlight international best practices found in Ethiopia and the key lessons-learned, with a view to encouraging similar practices in other countries.