Trust

Trust

Commitment for Results

As part of the New Deal we commit to build mutual TRUST by providing aid and managing resources more effectively, and also aligning these resources for better results. Recent evidence has shown that implementation of the previous commitments has been inconsistent and we believe it is crucial to now re-affirm the commitments made in the Paris Declaration, Accra Agenda for Action and the Fragile States Principles (2007). In doing so, we will enhance transparency, risk management to use country systems, strengthen national capacities and timeliness of aid, improving the speed and predictability of funding to achieve better results.

An essential pre-condition for progress in all of the New Deal’s commitments is to foster confidence between people, communities, the state and international partners. This involves delivering visible results quickly and on a continuous basis.

Transparency

We aim to ensure a much more transparent use of aid (ODA and non-ODA) in the future. This will be done by monitoring, through the DAC, overall resource flows to fragile states and tracking international assistance against individual goals. On a local level, countries receiving international support will strengthen (or where necessary, support the creation and development of) national reporting and planning systems that take into account elements such as budgets, transparency portals or aid information management systems. They will also provide support to domestic oversight mechanisms including national parliaments.

We will also support the greater transparency of fiscal systems in a manner consistent with capacity and context, drawing from good practice from the g7+ and agreed international benchmarks on transparency of aid resources (such as the International Aid Transparency Initiative (IATI) compatible standards). In addition to this, we will solicit citizen’s views to assess the transparency of domestic resources and aid. These commitments build on the Paris Declaration and Accra Agenda for Action.

Risk-sharing

We accept the risk of engaging during transition, recognising that the risk of non-engagement in this context can outweigh almost any risk of engagement. We will identify context-specific, joint donor risk-mitigation strategies, which will require different approaches to risk management and capacity development. It is also crucial for us to conduct joint assessments of the specific risks associated with working in fragile situations. This will help us identify and use joint mechanisms to reduce and better manage risks so as to build the capacity of, and enhance the use of, country systems, step up investments for peacebuilding and statebuilding priorities, and reduce aid volatility.

Use and strengthen country systems

We will jointly identify the oversight and accountability measures required to enhance confidence in, and to enable the expanded use and strengthening of, country systems. Those governments receiving help, with support from international partners, will take all reasonable measures to strengthen their public financial management systems from the ground up and be absolutely transparent about it. In doing this, we will also build related fiduciary and administrative capacity within country institutions at national and local levels. International partners have also agreed to increase the percentage of aid delivered through country systems on the basis of measures and targets jointly agreed at the country level, while recipient governments will look to increase the proportion of public expenditure funded by domestic revenues.

Strengthen capacities

To ensure that fragile states can build critical capacities of civil and state institutions in a balanced manner, we will increase the proportion of funds for capacity development through jointly administered and pool-funded facilities. We will also substantially reduce programme implementation units per institution and will target the use of external technical assistance, ensuring they report to the relevant national authority. It is also vitally important to work towards an understanding on remuneration codes of conduct between government and international partners for national experts, as well as facilitating the exchange of South-South and fragile-fragile experiences on transitions.

Timely and predictable aid

We will develop simple and accountable fast-track financial management and procurement procedures to improve the speed and flexibility of aid delivery in fragile situations, and review national legal frameworks to support our shared objectives. We also commit to increase the predictability of aid: two ways to achieve this would be to publish three- to five-year indicative forward estimates (as committed in the Accra Agenda for Action), and to make more effective use of global and country level funds for peacebuilding and statebuilding. Where national legislation may prevent this, our development partners will seek to address any aid delivery challenges so that they can better deliver on these commitments. Finally, we will provide necessary data to the Development Assistance Committee (DAC) so that regular and accurate reports on volatility will always be available.

Only by pursuing these five aims can we ensure that visible results are delivered quickly and on a continuous basis.