Archive for category Worst practices

We’ll always have Paris…

Of all the Declarations, in all the world...

News from this weekend suggests that DfID will be reversing its hitherto strong backing to the Paris Declaration on Aid Effectiveness. My initial reactions were of shock and disappointment. Shock because DfID has been an ardent supporter of the Paris Declaration and Accra Agenda for Action. Disappointment because it was so unexpected: it has a strong, highly competent aid effectiveness department and has also used the Declaration to push Government reform.

I’ve noted after viewing the original leaked memo that the original advice was in favour of maintaining the Paris Declaration as a commitment by DfID. Most of the other commitments dropped simply serve to cut the amount of ringfencing of DfID’s budget and therefore increase its flexibility to meet the needs of different developing countries.

The decision to rescind their commitment to the PD is a much more problematic one, however. The issues essentially break down as follows:

What has DfID Reversed?

The Paris Declaration on Aid Effectiveness (PD) is an agreement signed by donor agencies and Governments and aid-recipient Governments in 2005. The Declaration establishes a number of best practices in aid management that all parties promise to adhere to, and twelve targets which all parties are to be assessed on. These targets and commitments were strengthened by the Accra Agenda for Action (AAA) in 2008.

The idea behind the PD and AAA is to make it easier for Governments to manage, use and report on aid by simplifying the way aid is contracted, disbursed and evaluated. It also seeks to maximise the benefit to the developing country by untying aid and ensuring that aid be channelled through the working local process of the aid-recipient Government. Thus aid is promised to be channelled through the local budget process, use the local accounting and audit procedures and be evaluated according to local processes. It further stressed the need to make aid as flexible as possible by using fungible General and Sector Budget Support.

Recipient Governments also made pledges to improve their own systems: of audit, budgeting and so on, and to be assessed independently on them.

The Paris Declaration has two very big positive points. The first is that it seeks to increase the ability of local actors to respond to their own problems flexibly and not be dictated to by a multitude of individual donors. It thus helps reduce the coordination problem of aid and encourages local solutions and visions of development.

The second major benefit, related to the first, is that it moves the lines of accountability of aid. Instead of aid money being handled by the donors, in which case the donors are accountable to their own taxpayers and no-one else, it creates dual accountability. First the donor gives money to the recipient Government to use. That Government is thus accountable to the donor, and must show that the money was used appropriately. But far more important than this, because aid money is now on budget and managed by local Governments a second line of accountability is created: of the recipient Government spending the money to the local electorate. Through the budget debates in Parliament, these people have the chance to contest the use of aid through their elected representatives; they also have the ability to vote a Government out of power if it doesn’t use aid money well. The Government now has to justify aid money in the same way it does tax money.

Additionally, the PD addresses lots of smaller, niggling issues that seriously hamper the capacity of Governments, for example setting a target for the reduction of cumbersome and time consuming donor missions by combining them.

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A Massive Blow

DfID have gone all Anderson Silva on the fight for more effective aid management.

A leaked memo reveals that DfID will be dropping its commitment to the Paris Declaration on Aid Effectiveness.

This is a massive blow. The PD (as it’s known)  is very imperfect, and even the refinements we made in Accra in 2008 left plenty to be desired. But it’s the only real commitment the international community has made to improving donor systems for the management of aid – to making it easier to use, receive, negotiate. What’s worse, it’s one of the few places where recipient Governments are tied down to improvements in the way they themselves manage aid and their domestic resources.

DfID have been one of the biggest motors behind improving the PD and getting the simplification of access to and usage of aid money improved. This is not insignificant. Anyone who has spent time in a developing country Government can see how much of the recipient Government’s time is spent on managing, applying for and reporting on aid – not to mention following up on problems in its access, flow and predictability, all of which are covered by the PD. A conservative estimate for a heavily aid dependent country like Malawi is about 60% of Ministry of Finance time. Probably as much in the most aid dependent sectors, too. (To clarify – dropping the PD does not mean that DfID are abandoning the fight for better aid – but they are dropping their biggest weapon in the fight for better aid management.)

Dropping the PD means DfID have just lost a massive amount of moral authority in the fight to improve the way aid is used, and equally in the fight to improve the way Governments manage their own resources.

I’ll collect my thoughts for a more detailed post.

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Who wants to get pumped up?

So I watched Conan the Barbarian tonight, and I was particularly struck by the scene where the young Conan is forced into slave labour, condemned to push a wheel round and round for years. You can watch the scene here (embedding is disabled so you’ll have to click through to youtube:

As I watched it I suddenly had a really familiar feeling. Why was that? Oh, that’s right: Playpumps!

You can read about the Playpump controversy along with some pointed criticism over at Barefoot Economics and Aid Watch. I am also deeply disappointed the pumps didn’t succeed in churning out out a few million Arnold-sized children.

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White Noise

I'm sorry, were you saying something?

Development work lurches from hot issue to hot issue. Each dominates discourse and practice for a while before gradually fading out. While development agencies are in the grip of one of these hot issues, every document, every policy must somehow be made to relate to them, no matter how inappropriate or unnecessary it is. That’s why you get documents about road building in rural areas which pay lip service to the principles of Good Governance in the introduction and conclusion, though the actual body of the report rightly focuses on the actual practice for planning, funding and building new roads.

In the addled minds of those who write these documents, they are making the issue real by talking about them constantly. They think it shows people that they are taking it seriously, ensuring that ‘every decision involves consideration of the [insert issue here] impact’. Of course, nothing of the sort is true. Rather, by constantly invoking Governance as an issue of concern, even in documents or policies that can have no hope of influencing it, we reduce it to white noise. We constantly hear the word, and even if it once referred to something real and important, we tune it out because it’s been reduced to meaninglessness. And eventually a backlash starts: people complain that all these years of obsession with Governance are achieving nothing, and we’ll move on to the next issue. Never mind that the constant invoking of Governance masks the fact that very little is actually being done to improve it. The incessant white noise makes it feel like it is our sole focus and when the little actual work doesn’t match up to the noise we make about it, it is jettisoned.

This week, I saw the first signs that climate change is going down this path. I was asked to assess a draft PRSP and the comments made in response to it by the local donors, and I was amazed by the prominence climate change was given in the comments. This is the PRSP of a very poor and quite small place. The document has a few problems which the donors have pointed out (and a few that have escaped censure), but reading through it, it never occurred to me that a central issue was that it didn’t plan enough for mitigation of climate change or adaptation to climate change.

I know that climate change is a real threat to the prospects of many developing countries. It’s also something that many developing countries can help combat. But let’s be clear: for it to be tackled properly, it must be tackled at the global level. Individual poor countries, which contribute a miniscule amount to climate change compared to large industrialized countries, are not going to lead the fight. Even if they successfully minimize their contribution to climate change, this will be a drop in the ocean compared to what the big industrial powers can achieve. If they do make sacrifices for this end, and see others ignore the problem or continue to institute half-measures not only will they have a limited effect on climate change, they’ll also suffer in terms of material development. They stand to lose on two dimensions. No, if they are to contribute to the reduction of harmful practices to the environment it must be part of a global strategy to do so.

What’s more, climate change mitigation will also not be a central concern of these countries. This might be short-sighted, but the situation is clear. In many places in the world, the basic services that any society needs are not functioning effectively. The productive capacity of the economy is severely limited: agriculture is low-productivity because lands are not irrigated and land holdings are too small to mechanise, and industry is not competitive or developed enough to provide stable employment to the many unemployed. Yes, the spectre of climate change may make agriculture more difficult, but by far the biggest constraint to their ability to grow crops and produce products is the structure of their agricultural sector and the ability of entrepreneurs to accumulate capital and start large-scale production. These are rightly the focus of their work.

Trying to give climate change an artificially large space in the strategic vision of a country like this is going to fail for two reasons: firstly, no-one who lives, works or governs in these countries will believe it should really be their focus, and so they won’t devote their time and resources to whatever they’ve put their signatures down to. Secondly, the more donors or pressure groups push for it, the more the Government and other players will placate them by issuing more statements and drafting more meaningless paragraphs that ‘recognise the central importance’ of these issues, while at the same time quietly making sure the priority funding and effort goes in other directions. And then, in fifteen years’ time, we’ll look back at all these papers and declare the failure of the climate change agenda, the failure of these policies – because for all the rhetoric they never changed anything.

Climate change is a central concern of international organisations for a good reason. It’s one of the biggest threats to the planet, and we simply cannot just sit around and watch it happen. But this means we cannot fall into the trap of using words as a substitute for action. Getting reference to climate change into a document is not a win. Getting a policy implemented that makes a real difference to it is. And this must happen at the global level first; it requires unity of action. We might have the sway to get poor countries to write about it more, but that should be no salve on a collective conscience that knows those who have the biggest influence remain unmoved.

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Really useless statements

If you want to see what’s wrong with Africa, take a trip to the Democratic Republic of Congo.

More here. Hat tip to AIC.

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Living in hell

So much for rose-tinted glasses

Foreign Policy recently ran a photo essay with images from countries that scored the worst on their Failed States Index. The title? “Postcards from Hell.”

But as the photos here demonstrate, sometimes the best test is the simplest one: You’ll only know a failed state when you see it.

Really? Isn’t selection an issue here? If I went to the projects of Baltimore to take some photos, Maryland would start looking like a failed state pretty quickly.

The Failed States Index, a creation of both Foreign Policy and The Fund For Peace, uses a range of indicators, some more reasonable than others. The ranking of failed states is based on an amalgamation of these indicators, which means that some states get a similar ranking, despite being “failed” for drastically different reasons. This is why war-torn, refugee-laden Sierra Leone is tied with extremely-peaceful but desperately poor Malawi.

Sean Jacobs also weighs in.

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Accepting money from bad people

We are now accepting nominees for the Aid Thoughts-Emperor Palpatine Award for International Diplomacy Research. Please send the relevant forms to Matt Collin,P.O. Box 20481, the Death Star

Early last year, UNESCO created the Obiang Nguema Mbasogo International Prize for Research in the Life Sciences.  Unfortunately, the benefactor, the President of Equatorial Guinea, is a renowned for being a particularly repressive dictator and all-around bad person. Names associated with mass economic exclusion, theft of public funds, torture and (even) cannabilism don’t make for highly-marketable awards, but it seems that they tried anyway.

As UNENSCO prepares to make its first award, the blogging communinity, which seems to retain the right to delay outrage for a considerable amount of time, have begun to speak out. Those voicing discontent include Texas In Africa, Vijaya Ramachandran at the CGD, and Te-Ping Chen at Change.org. The arguments roughly follow this line of thinking:

  1. Obiang is a serious crook who is trying to improve his image with the award, and UNESCO is helping him do it. We should not legitimize him any further.
  2. Obiang’s wealth comes from the millions (or billions) of oil revenue he has pilfered, which should have been used for badly needed public goods in Equatorial Guinea.

The first argument is initially pretty compelling. I do believe that we should find ways to pressure Obiang into behaving better, but is denying him a name on a small prize really the most effective method of doing so? In a world where Equatorial Guinea was an embattled dictatorship, chastised and isolated by the international community for Obiang’s sins, then UNESCO’s move would be really pretty scandalous. However, the world we do live in is one where American presidents pose for smiling photoshoots with him, where diplomats occasionally grumble about human rights abuses or governance, but at the end of the day are happy to let the oil exports continue.

We legitimise Obiang’s government in so many ways, for difficult, vexing reasons; attacking UNENSCO for putting his name on an otherwise unremarkable reward might be an easy attack route, but one of dubious efficacy.

The argument that the money rightful should go to the people of EG is also true, but it’s not going to them, and cancelling the award is not make Obiang turn it around and give it to them. So we should ask ourselves: would we prefer to have the money remain in overseas bank accounts, earning interest for Obiang and his progeny, or we would prefer it be used for some small good?

If we want to get serious on Equatorial Guinea, let’s get serious. If we’re not ready to get serious, then we should smile, take the awful man’s money, and channel it towards better things.

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Enjoy the silence

I tend to freak out a little bit whenever I go back to the continent.

We’ve quieted down recently – but not without good reason: I’ve been busy working on a survey for a land rights RCT in Dar es Salaam and Ranil has probably been gorging himself on dim sum food back in Hong Kong.

We’ll be back soon.

The return of expert analysis, 1 million t-shirts edition

Click on image for full size. Previous edition of expert analysis available here.

Update: more reasonable discussion here, here and here.

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The Society Wedding of the Year

What do you do for money, honey?

Bingu wa Mutharika, the President of Malawi, has just remarried, a few years after the death of his first wife, Ethel. The Times is reporting that it was quite a bash. Bingu arrived in true P. Diddy style, emerging from a white Chrysler flown in from South Africa for the occasion wearing a white tuxedo with white gloves, having driven over two roads specially built to take the bride and groom to Civo Stadium for their restrained and tasteful nuptials. The bridal party arrived in a fleet of new Mercedes’, and the whole wedding is alleged to have cost about GBP 2 million, part of which paid for a twenty-eight tier wedding cake.

Apart from the identity of the joker who convinced Bingu that he looked good in his white tux, the big question here is where the money came from. If these were state funds, it is a perfect example of the kind of spending that the fungibility article from the Lancet raised fears of, and which I discussed last week. Is aid money facilitating this kind of opulence? Two things need to be true before we can conclude this. Firstly, it must be the case that the President used state funds for his wedding. This isn’t clear. The Times article offers the following, neither part of which is particularly convincing:

Senior officials, speaking on condition of anonymity, have claimed that the president used public funds for the celebrations, an accusation that the government denies…

The Malawian government’s information minister rejected claims that public money had been used to pay for the wedding. “The [£2m] cost of the wedding has been met by the president himself and friends who wish him well,” he said.

The second issue is whether, even if state funds were used, aid money made any difference. It’s quite possible that the same wedding would have taken place, with the same cost, but with developmental spending suffering even more. If this is the counter-factual, then aid money isn’t facilitating bad spending but mitigating the damage it causes.

With regards to the first issue, as I said in the comments section of Matt’s post on fungibility, audit is where we should be focusing: a comprehensive audit should give us a very good idea of whether or not this money came from Government coffers or Bingu’s personal wealth, together with those of his supporters, some of whom are so fervent I have witnessed them running after his Presidential vehicle waving huge framed posters of him as he disappears from view. I’m going to discuss audit in a bit more depth later this week, but to their credit, the Times does mention the findings of a recent audit of Malawi’s Government expenditure in its article:

A report by the country’s auditor general [showed] that more than £800,000 of public funds had been spent on goods and services between 2003-05 which could not be accounted for.

The drawback? Despite the article being written by a Malawian (Mabvuto Banda, judging by the name, is at least of Malawian heritage), the article fails to point out that the audit reports it refers to relate to a previous Government, that of Bakili Muluzi. Members of this Government have already been investigated and indicted on corruption charges, and further arrests and investigations are always possible.

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