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Special Report
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Points of View
Aid Donors: The Challenge of Aid Harmonization
The movement to harmonize development assistance to poor countries points to a paradigm shift in how aid donors conduct business with their development partners. The interviews and resources presented here provide an overview of the enormous challenges—and opportunities—that aid harmonization is presenting to both international multilateral and bilateral donors.

"Beyond donor coordination, a real division of labor is needed for aid harmonization. More "silent partnerships" and delegated cooperation according to comparative advantages of donors are needed. To harmonize, coordinate, align and participate in joint approaches, decentralization and delegation of authority from donors’ headquarters to the field offices is required. Partner countries receiving aid will be expected to have operational development strategies with a long-term vision and a medium-term approach in how to achieve specific development targets. Ownership and capacity building are key to budget and program-based support. To improve transparency and guarantee control of aid through national parliaments, aid flows should be reported on budget. For all of this, information and communication technologies can provide helpful tools."

Dr. Michael Hofmann, Director General, Global and Sectoral Policies
Multilateral and European Development Policy; 
German Federal Ministry for Economic Cooperation and Development (BMZ)



"...Scaling up of Overseas Development Assistance (ODA) needs to go hand in hand with efforts to enhance aid effectiveness. Simply increasing ODA without improving aid effectiveness is...counterproductive." (Read full interview)

Kazuo Sunaga
Minister
Permanent Mission of Japan to the United Nations



“The MDGs are ambitious goals, particularly for the poorest countries where there has been limited progress or often retrogression since 1990. For those countries, it’s really important that there’s no wait-and-see attitude, but a strong upfront signal of commitment from donors that says “we will back you when you put forward your strategy.” Otherwise, there is too little incentive for the poorest countries to think that there will be enough assistance forthcoming for them to achieve the MDGs.” (Read full interview)

John W. McArthur
Deputy Director of the UN Millennium Project



"By far the biggest problem is lack of political buy-in from donor countries to move from harmonization rhetoric to changing systems and procedures… Without incentives, it is very difficult for donor organizations to become learning organizations that can actually transfer knowledge and learning from one context to another." (Read full interview)

Paolo de Renzio, Centre for Aid and Public Expenditure (CAPE)
Overseas Development Institute, London 



"The challenge for Multilateral Development Banks (MDBs) is to balance donor expectations to recipients’ capacity to deliver the results. We have to bear in mind that development at best is a risky process. MDBs are ideally constituted, structured and positioned to manage donor expectations and helping recipients to deliver results." (Read full interview)

James Rockett, Resident Director
North American Regional Office, Asian Development Bank


"Harmonization is a tool to achieve greater aid effectiveness. It is a way for donors to act together without any precise rules...It’s a change in the way donor aid has been delivered for the past 60 years.” (Read full interview)

Chris Hall, Program Coordinator
Harmonization and Alignment Policy Review and Dissemination Group (OPCPD), World Bank


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From Our Members
How did Development Gateway members respond to our Aid Harmonization Survey questions?

    Kazuo Sunaga
    Minister
    Japan Mission to UN
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    Chairman
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