Making aid work

It takes more than money and programmes to address development issues. A clear focus and high-quality engagement are crucial in bringing about good development results.

Development partners and agencies need to have a clear focus on people living in hardship, an understanding of what keeps them disadvantaged, and a commitment to address the causes on a sustained basis.

In March 2005, New Zealand joined other donors and developing country leaders at the Paris High-level Forum on Aid Effectiveness to agree to new ways of working to improve the effectiveness of aid.

The Paris Declaration signalled a broadening of thinking on aid effectiveness from a focus on donor harmonisation to include also improved alignment to country systems and plans, the use of results-based management, mutual accountability and the 'untying' of aid from political goals.

These sorts of aid effectiveness principles enable stronger country ownership, donor alignment to credible country-developed strategies, improved coordination of donor efforts, use of country systems, building national capacity and accountability for results.

Other means of working collaboratively include programme funding of regional agencies, which enables a more strategic approach to planning and lower transaction costs, and the use of country trust funds such as in Tokelau, Tuvalu and Niue.

In South and Southeast Asia, co-financing has enabled New Zealand to associate itself with coordinated efforts agreed between donors and national governments.