Foreign aid, or Official Development Assistance, as it is also called, is more necessary than ever in the current time of crisis, when poor countries are facing the loss of export revenues, foreign direct investments and other sources of income. The IPU has long championed the cause of aid with two goals in mind: getting all donors to maintain their commitment to spend 0.7% of their GDP in foreign aid; and helping ensure that every dollar given is well spent.
Making the best of aid money is no easy task. Thanks to the Paris Declaration on Aid Effectiveness and its successor Accra Agenda for Action, there is now a clear set of commitments to guide the action of all involved, from governments to parliaments, donors, and civil society actors.
That parliament must ensure oversight of aid is well established in principle. To make this happen in actual practice, however, the capacities of parliaments and parliamentarians need to be strengthened. It is precisely for that reason that the IPU, together with its international partners, has produced a guidance note for parliamentarians entitled Making Aid Work: Toward Better Development Results.
The note is the first publication of the IPU on the subject, and it represents a departure from the series of IPU handbooks for parliamentarians. Short and to the point, and only available online, it is meant for all MPs whatever their knowledge of aid issues. It explains in simple words the problem with aid, the various actors involved, the main principles at play, and the concrete ways in which MPs can work with governments, civil society and donors to enhance the effectiveness of aid.
The note is structured around the so-called policy cycle that consists of the formulation of national development strategies, the implementation of such strategies though laws and budgetary allocations, and the monitoring of results. In explaining this cycle, the note shows how the entire development policy framework must be reformed if we are to improve the way aid works.
The official launch of the note took place at a side event held at the 122nd IPU Assembly in Bangkok. The note is the product of a collective effort involving members of parliament and a host of experts and aid practitioners. The main partner in this project was the Capacity Development for Development Effectiveness facility (CDDE), a consortium of development agencies assisted by the United Nations Development Programme.
MPs are encouraged to refer to the guidance note in relevant parliamentary meetings or committee sessions. With a second edition of the note in mind, the IPU is inviting all interested MPs to provide comments and suggestions. Further country-based examples and illustrations of the various questions discussed in the note are particularly welcome.