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In particular, the reforms are "intended to increase the impact of aid ... in reducing poverty and inequality, increasing growth, building capacity and accelerating the achievement of the 2015 Millennium Development Goals."
The Paris Declaration is significant since it recognizes that the aid process is not transparent and democratic. Reforms are necessary to make the official development assistance received by developing countries effective in reducing poverty.
Furthermore, civil society organizations have been pressuring donor countries to acknowledge the urgency to make aid programs more effective in addressing the development needs of every recipient country.
The Paris Declaration is guided by five principles: ownership (developing countries exercise leadership over their development policies); alignment (support of donor countries to the national development strategies of developing countries); harmonization (donors' actions are more harmonized, transparent and collectively effective); managing for results (all countries will manage resources and improve decision-making results); and mutual accountability (donor and partner countries are both accountable for development results).
Donors and developing countries have 56 specific partnership commitments across all five themes. Signatories also agreed on 12 indicators and measurable targets to be achieved by 2010.
Recognizing the right of developing countries to pursue their own development strategies is important since donor countries have traditionally exercised a dominant influence in the economies of small countries. Aid creates unequal power relationships between donor and recipient countries.
Civil society groups have been asserting that the tying of aid to the procurement of donor goods and services "inflates costs, slows down delivery and reduces the flexibility of developing countries." The Paris Declaration promotes the untying of aid. Donor countries are required to direct aid to the national priorities of developing countries. The procurement and financial management systems of recipient countries will be used by donors.
Civil society groups have welcomed the Paris Declaration as a first step to make the aid process more responsive to the needs of the poor. But they also criticized the "limited framework" of the aid effectiveness agenda. The agreement's indicators do not reflect how aid actually "affects conditions that sustain poverty and inequality."
Civil society groups believe that ownership of development strategies must be democratic. This means the participation of ordinary people, especially marginalized groups, in developing national strategies. Most of the time, national governments of developing countries are unable to include the voices of the poor in formulating a national economic agenda. The Paris Declaration should involve civil society groups in affirming democratic ownership of national development strategies.
Policy conditionality undermines the independence of developing countries. Donors must remove policy conditions and prescriptions for the release of funds. The Paris Declaration has no target to eliminate or reduce economic policy conditionality.
Donor countries have been using aid to influence policies in developing countries. Secret policy dialogues between donors and recipient governments are often held without consulting the public. Many of these conditions have proved harmful to the social and economic interests of developing countries. During the 1990s these donor-imposed reforms were called Structural Adjustment Programs.
Accountability should not just involve donors and recipient governments. What about the accountability of donors and governments to ordinary citizens? Civil society groups are also demanding accountability from international financial institutions. Developing countries should be able to contribute in determining the policies of these important institutions.
The Paris Declaration should recognize civil society groups as development actors in their own right. The biggest civil society group, the Melinda and Bill Gates Foundation, is giving more money than some donor countries.
Civil society groups can be subjected to the aid effectiveness paradigm as well. The principles of ownership, harmonization and alignment in the Paris Declaration can be adopted. The relationship of civil society groups from rich countries (donors) and developing countries (recipients) should be probed.
Are civil society groups from poor countries accountable to their donors or to their constituents? Is it more effective if donor countries give money directly to civil society groups from developing countries?
The Paris Declaration has raised many issues which can be maximized to demand genuine reforms in the aid infrastructure around the globe. The lead players should not just involve technocrats, financiers, diplomats and big civil society groups. Grassroots involvement should be advocated.
Aid effectiveness agenda is important. But for what purpose, for whom and as measured by whom?
The Paris Declaration will achieve its objectives if aid reaches the poor and vulnerable groups of developing countries. The poor recognized as "drivers of development rather than objects of development" should be pursued.
There is time to lobby for changes in the Paris Declaration's indicators, timetables and targets. There will be a high level forum of various parties in Ghana next year.
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(Mong Palatino is a youth activist, Global Voices correspondent and news editor of Yehey!, a Philippine-based web portal. He can be reached at mongpalatino@gmail.com. His Web site is www.mongpalatino.motime.com. ©Copyright Mong Palatino.)
