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145<br />

those who stand to lose from a dim<strong>in</strong>ution <strong>of</strong> project aid, and there will be<br />

those who stand to ga<strong>in</strong> by different divisions <strong>of</strong> the overall budget, etc.<br />

Second, dialogue is loaded by alternative postures vis à vis the different<br />

development partners and their particular <strong>in</strong>volvement and histories <strong>of</strong> cooperation<br />

with the country. Thirdly, it is loaded by other budgetary demands<br />

made on the government quite outside the ‘development’ context,<br />

which do not appear on the ‘radar screen’ <strong>of</strong> the aid pr<strong>of</strong>essionals.<br />

Topics<br />

Recipient country weaknesses: the need <strong>for</strong> capacity development<br />

The new aid modalities require <strong>in</strong>creased dialogue. However, it is not always<br />

clear that the dialogue takes place <strong>in</strong> earnest, despite the good <strong>in</strong>tentions<br />

<strong>of</strong> the development agencies <strong>in</strong> attempt<strong>in</strong>g to ensure national ownership<br />

and responsibility and thereby, hopefully, susta<strong>in</strong>ability <strong>of</strong> programmes.<br />

This is because aid recipients cover a wide spectrum, and the least needy are<br />

likely to have the greatest capacity to engage more seriously and effectively<br />

<strong>in</strong> dialogue. So, typically, dialogue, and the flow <strong>of</strong> programmatic fund<strong>in</strong>g,<br />

necessitates considerable capacity build<strong>in</strong>g. Sometimes this capacity build<strong>in</strong>g<br />

appears as disguised conditionalities, even when agreed by all. For <strong>in</strong>stance,<br />

it may be a requirement that World Bank procurement procedures<br />

are followed, and <strong>in</strong> order to adapt the national system satisfactorily, an<br />

<strong>in</strong>ternational ‘expert’ comes as part <strong>of</strong> the overall package. Very typically,<br />

f<strong>in</strong>ancial management systems require re<strong>for</strong>m, not least <strong>in</strong> sectoral m<strong>in</strong>istries<br />

which have not traditionally managed development budgets, rely<strong>in</strong>g<br />

only on recurrent expenditure budgets <strong>for</strong> so long. Consequently, plann<strong>in</strong>g<br />

with<strong>in</strong> the framework <strong>of</strong> longer term development needs has become a<br />

barren exercise, hardly carried out beyond the del<strong>in</strong>eation <strong>of</strong> particular percentage<br />

hikes from the previous year’s budget. Thus, activity-based plann<strong>in</strong>g<br />

and budget<strong>in</strong>g and the development <strong>of</strong> medium term expenditure plans<br />

that attempt to match resources with development needs is frequently a<br />

new area <strong>for</strong> skills development, requir<strong>in</strong>g a package <strong>of</strong> re<strong>for</strong>ms to be negotiated<br />

as a first stage <strong>of</strong> necessary capacity build<strong>in</strong>g.<br />

Capacity build<strong>in</strong>g is noth<strong>in</strong>g new; the rhetoric surround<strong>in</strong>g its implementation<br />

may be, but capacity build<strong>in</strong>g has been a fundamental part <strong>of</strong><br />

development co-operation s<strong>in</strong>ce the earliest stages <strong>of</strong> such assistance. What is<br />

different <strong>in</strong> the new aid modalities is that typically, it is seen as part <strong>of</strong> the<br />

overall strengthen<strong>in</strong>g <strong>of</strong> government systems, and not merely a temporary<br />

‘shot <strong>in</strong> the arm’, as an adjunct to a project. However, the modalities <strong>of</strong><br />

technical assistance have not really changed, despite their wider remit <strong>in</strong><br />

current programmatic aid. So capacities have to be developed to ensure ’real’<br />

dialogue, but only rarely is it asked how the recipient government can be <strong>in</strong><br />

control when the judgements are be<strong>in</strong>g made precisely <strong>of</strong> its <strong>in</strong>capacity.

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