Donors should rethink aid strategy – experts

AID experts have urged donor countries to rethink their aid strategy when extending assistance to developing countries.The experts have urged the donor countries to remove some conditions that come with aid if it’s to leave a positive impact.Speaking during the launch of a report on aid effectiveness, Reality of Aid Africa’s Vitalice Meja, said that conditionality makes it almost impossible for developing countries to own the assistance and use it according to their priorities.Reality of Aid Network (RoA) is an international non-governmental initiative focusing exclusively on analysis and lobbying for poverty eradication policies and practices in the international aid regime.“I think the way we do business should change; we need to see movement towards eliminating donor conditionalities,” Meja said.The report entitled, “Aid effectiveness in Rwanda, who benefits?” creates a yardstick to measure to what extent aid has been effectively used to transform people’s lives, aid management and as to whether donors are keeping their commitments.According to the summary of the report facilitated by Rwanda Civil Society Platform and ActionAid Rwanda, the country receives at least $1bn in aid every year.Experts say that strict conditions such as rules of origin where donors influence the source of materials, expertise to be used on the funded projects create a backflow of aid to developed countries.“To make a bigger impact, donors should channel the assistance through the budget which highlights key priority areas,” Actionaid Rwanda’s Sulah Nuwamanya said.Meja noted that there is need for poor countries to promote ownership in national development strategies and involve other stake holders in order to make aid effective.“Civil societies should work with the government and other relevant stakeholders to create enabling environment to ensure that people benefit from the aid,” he addedNevertheless, the report indicates that aid has supported the development of the productive sectors as well as human development. Domestic tax revenues have increased as well as flows of foreign direct investment. “There has been strong economic growth, there are signs of economic transformation, there has been a growth in non-farm-employment and an increase in, and diversification of, exports,” the report reads in part.Indeed, Rwanda scored high in aid effective use through a number of aid policy reforms and other public financial systems, fighting graft that increased donor confidence.But Pamela Abbott, from the Institute of Policy Analysis and Research-IPAR says, “In terms of development assistance there have been some improvements in joint-accountability, but progress has been slow and uneven and challenges remain.” Abbott notes that over three quarters of aid is not aligned to the national budget submitted to parliament while over a quarter of development partners show no signs of future commitments.According to the report, technical assistance provided by donors does not meet government needs, while developing partners are slow to implement commitments which are contrary to Paris declaration of 2006.The Paris Declaration (2006) placed partner country ownership of policies and processes at the centre of the reform agenda while the Accra Agenda for Action (2008) considered in greater detail the role of actors, going beyond the state as owners of development efforts.

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Donors should rethink aid strategy – experts