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Democratic Ownership and Human Rights - Reality of Aid

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The<strong>Reality</strong><strong>of</strong><strong>Aid</strong><br />

2008<br />

AnIndependentReview <strong>of</strong>PovertyReduction<strong>and</strong>DevelopmentAssistance<br />

AIDEFFECTIVENESS:<br />

DEMOCRATICOWNERSHIPANDHUMANRIGHTS


The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> 2008<br />

The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong><br />

2008<br />

i


ii<br />

The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> 2008


The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> 2008<br />

The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong><br />

2008<br />

<strong>Aid</strong> Effectiveness:<br />

“<strong>Democratic</strong> <strong>Ownership</strong><br />

<strong>and</strong> <strong>Human</strong> <strong>Rights</strong>”<br />

Management Committee<br />

The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong><br />

Quezon City<br />

iii


The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> 2008<br />

The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> 2008, <strong>Aid</strong> Effectiveness: “<strong>Democratic</strong> <strong>Ownership</strong> <strong>and</strong> <strong>Human</strong> <strong>Rights</strong>”<br />

is published in the Philippines in 2008 by IBON Books, IBON Center<br />

114 Timog Avenue, Quezon City Philippines<br />

editors@ibon.org, www.ibon.org<br />

Copyright © 2008 by The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> Management Committee<br />

Layout: Berinice Ileto-Zamora<br />

Cover Design: Jose Leon Dulce/Florenio Bambao<br />

Cover Photos:Torben Ulrik Nissen (top left)<br />

Steve Webel (top right)<br />

Mostafa Saeednejad (bottom)<br />

Printed <strong>and</strong> Bound in the Philippines by IBON Books.<br />

Published with assistance <strong>of</strong><br />

CCIC, Novib, 11.11.11- Coalition <strong>of</strong> the Flemish North South Movement<br />

All rights reserved<br />

ISBN: 971-0483-30-3<br />

iv


The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> 2008<br />

Contents<br />

The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong><br />

Acknowledgements<br />

ix<br />

x<br />

Introduction<br />

Political Overview<br />

Part I. Overview<br />

Antonio Tujan, Jr.<br />

Chair, <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong><br />

The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong><br />

Management Committee<br />

3<br />

5<br />

Introduction<br />

Chapter 1. <strong>Aid</strong> Relationships Have Not Changed<br />

16<br />

<strong>Aid</strong> is Power- The Challenge for CSOs<br />

<strong>and</strong> <strong>Democratic</strong> <strong>Ownership</strong><br />

<strong>Aid</strong> Conditionality<br />

<strong>and</strong> <strong>Democratic</strong> <strong>Ownership</strong><br />

Australian <strong>Aid</strong> to Papua New Guinea:<br />

Change Without Change<br />

The Gilbel Gibe II Hydroelectrical Project-<br />

A Case <strong>of</strong> Super-Tied <strong>Aid</strong><br />

Women’s Empowerment <strong>and</strong> the New World<br />

<strong>of</strong> Microedit Evangelism<br />

<strong>Democratic</strong> <strong>Ownership</strong> <strong>of</strong> <strong>Aid</strong><br />

in the Philippines<br />

Don Marut<br />

INFID<br />

Ahmed Swapan Mahmud<br />

VOICE<br />

Kate Wheen <strong>and</strong> Flint Duxfield,<br />

<strong>Aid</strong>/Watch<br />

Caterina Amicucci<br />

CRBM<br />

Kavaljit Singh<br />

PIRC<br />

Sonny Africa<br />

IBON Foundation<br />

20<br />

26<br />

33<br />

40<br />

46<br />

51<br />

Chapter 2. The IFIs Have Significant Responsibility for the Lack <strong>of</strong> Change<br />

Introduction<br />

The Impact <strong>of</strong> IFI Conditionality<br />

on the Development <strong>Aid</strong> System<br />

Multilateral <strong>Aid</strong> <strong>and</strong> Conditionalities,<br />

The Case <strong>of</strong> Indonesia<br />

IFIs – The Major Barrier to Change<br />

in the <strong>Aid</strong> System<br />

The World Bank in Pakistan:<br />

see No Suffering, Hear No Cries,<br />

Speak No Truth<br />

Javier Pereira<br />

EURODAD<br />

Don Marut<br />

INFID<br />

Ahmed Swapan Mahmud<br />

VOICE<br />

Mustafa Talpur with A. Ercelan<br />

<strong>and</strong> M. Nauman<br />

PILER<br />

60<br />

64<br />

71<br />

79<br />

86<br />

v


The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> 2008<br />

<strong>Democratic</strong> <strong>Ownership</strong> <strong>and</strong> Mutual<br />

Accountability to International <strong>Human</strong><br />

<strong>Rights</strong>: A <strong>Reality</strong> Check <strong>of</strong> Nepal<br />

European Commission:<br />

Providing the Kind <strong>of</strong> Budget Support<br />

that is Needed?<br />

Gopal Siwakoti ‘Chintan’<br />

with Rabin Subedi<br />

NPI<br />

Sasja Bökkerink<br />

Oxfam International<br />

95<br />

103<br />

Chapter 3. The Paris Declaration Does Not Go Far Enough<br />

Introduction<br />

<strong>Aid</strong> <strong>and</strong> the <strong>Rights</strong>-Based Approach<br />

in the Philippines<br />

<strong>Democratic</strong> <strong>Ownership</strong><br />

<strong>and</strong> the Paris Declaration<br />

Paris Declaration on <strong>Aid</strong> Effectiveness<br />

(Abridged from the Original)<br />

Barriers to Harmonization <strong>and</strong> Alignment :<br />

An African Perspective<br />

Sonny Africa<br />

IBON Foundation<br />

Thomas Hochgesang,<br />

CBM (formerly Christian Blind Mission)<br />

Roberto Bissio<br />

TWI <strong>and</strong> Social Watch<br />

AFRODAD<br />

112<br />

115<br />

121<br />

126<br />

135<br />

Chapter 4. What is Needed for <strong>Aid</strong> Policies to Facilitate Development Outcomes<br />

for the Poorest Communities<br />

Introduction<br />

Pulling the Strings - How Donors’ Control<br />

<strong>of</strong> <strong>Aid</strong> Undermines <strong>Democratic</strong> <strong>Ownership</strong><br />

<strong>and</strong> Accountability<br />

Accountability <strong>and</strong> Managing for Results:<br />

Accountability to Whom?<br />

Who Holds Whom Accountable?<br />

Managing for Results <strong>and</strong> <strong>Aid</strong> Effectiveness<br />

National <strong>Democratic</strong> Appropriation<br />

in Latin America <strong>and</strong> the Caribbean<br />

International Development Cooperation:<br />

A New Global Public Good<br />

<strong>Aid</strong> Effectiveness <strong>and</strong> Gender Equality<br />

Elvira Groll<br />

Action<strong>Aid</strong> UK<br />

Ngo Sothath<br />

NGO Forum on Cambodia<br />

AFRODAD<br />

Mauricio Gómez Lacayo<br />

Ruben Fen<strong>and</strong>ez<br />

Corporación Región <strong>and</strong> ALOP<br />

Cecilia Alemany (AWID),<br />

Fern<strong>and</strong>a Hopenhaym (AWID),<br />

<strong>and</strong> Nerea Craviotto (WIDE)<br />

146<br />

150<br />

159<br />

169<br />

176<br />

182<br />

189<br />

vi


The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> 2008<br />

Chapter 5. Global <strong>Aid</strong> Trends <strong>and</strong> OECD Reports<br />

Global <strong>Aid</strong> Trends<br />

World <strong>Aid</strong> Trends:<br />

Donors Distorting the <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> in 2008<br />

Germany: A Mixed Performance<br />

UK: Delivery Falls Short<br />

<strong>of</strong> Progressive Policies<br />

Irel<strong>and</strong>: Bringing ODA<br />

to the Centre <strong>of</strong> Foreign Policy<br />

Netherl<strong>and</strong>s: A New Commitment<br />

to International Co-operation<br />

Austria: <strong>Aid</strong> Gap Leaves Questions<br />

Over Commitment<br />

Belgium: The Changeability <strong>of</strong> <strong>Aid</strong><br />

Finl<strong>and</strong>: Finnish Development Co-operation:<br />

Focus on Climate Change<br />

France: French Development Cooperation:<br />

Little Leadership to be Expected<br />

on the Fight Against Poverty<br />

Italy: First Steps Towards ODA Reform<br />

After Years <strong>of</strong> Crisis<br />

Sweden: Sweden Claims 1% <strong>Aid</strong> Achievement<br />

Spain: Becoming a Major ODA Player<br />

Switzerl<strong>and</strong>: 2008: A Pivotal Year<br />

for Development Co-operation<br />

Australia: A New Government<br />

Brings New Commitments<br />

Brian Tomlinson<br />

CCIC<br />

<strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> Management Committee<br />

Peter Mucke<br />

Terre des Hommes<br />

Elvira Groll, Elena Chiarella<br />

<strong>and</strong> Sarah Mulley<br />

UK <strong>Aid</strong> Network<br />

Olive Towey <strong>and</strong> Howard Dalzell<br />

Concern<br />

Arjan El Fassed<br />

Oxfam Novib<br />

Global Responsibility-Austrian<br />

Platform for Development <strong>and</strong><br />

<strong>Human</strong>itarian <strong>Aid</strong> <strong>and</strong> Hilde Wipfel<br />

(KOO)<br />

Els Hertogen<br />

11.11.11 – Coalition <strong>of</strong> the Flemish<br />

North South Movement<br />

Matti Ylönen<br />

KEPA (The Service Centre for<br />

Development Cooperation)<br />

Katia Herrgott <strong>and</strong> Florent Sebban,<br />

Coordination SUD<br />

Marco Zupi<br />

CeSPI<br />

Peter Sörbom, Forum Syd<br />

in collaboration with Penny Davies,<br />

Diakonia<br />

Isabel Kreisler<br />

Intermon Oxfam<br />

Michèle Laubscher<br />

Alliance Sud - Swiss Alliance<br />

<strong>of</strong> Development Organisations<br />

Garth Luke <strong>and</strong> Pail O’Callaghan<br />

ACFID<br />

200<br />

224<br />

229<br />

234<br />

238<br />

241<br />

247<br />

251<br />

255<br />

259<br />

264<br />

267<br />

270<br />

274<br />

vii


The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> 2008<br />

Canada: Overview: Unmet Promises<br />

<strong>and</strong> No Plans to Increase Canadian ODA<br />

New Zeal<strong>and</strong>: Good Intent Must Be<br />

Balanced with Financial Commitment<br />

USA: Targeting State ‘Transformation’,<br />

Not Poverty Reduction<br />

Norway: Silver Clouds <strong>and</strong> Dark Linings<br />

European Union/European Commission:<br />

Increasing Budget Support,<br />

But Slow on Participation<br />

Brian Tomlinson<br />

CCIC<br />

Rae Julian<br />

CID<br />

Cheri Waters<br />

Interaction<br />

John Y. Jones<br />

Networkers SouthNorth<br />

Simon Stocker, Director Eurostep<br />

in cooperation with Mirjam van Reisen<br />

<strong>and</strong> Ben Moore, EEPA<br />

279<br />

284<br />

290<br />

295<br />

299<br />

Part II. Reference Section<br />

Boxes <strong>and</strong> Tables<br />

Glossary <strong>of</strong> <strong>Aid</strong> Terms<br />

305<br />

307<br />

Part III. Directories<br />

List <strong>of</strong> Participating Agencies<br />

List <strong>of</strong> Members<br />

321<br />

325<br />

viii


The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> 2008<br />

The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> Network<br />

The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> Network exists to promote national <strong>and</strong> international policies that will<br />

contribute to new <strong>and</strong> effective strategies for poverty eradication, built on solidarity <strong>and</strong><br />

equity.<br />

Established in 1993, the <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> is a collaborative, non-pr<strong>of</strong>it initiative, involving nongovernmental<br />

organizations from North <strong>and</strong> South.<br />

The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> publishes regular, reliable reports on international development cooperation<br />

<strong>and</strong> the extent to which governments, North <strong>and</strong> South, address the extreme inequalities <strong>of</strong><br />

income <strong>and</strong> the structural, social <strong>and</strong> political injustices that entrench people in poverty.<br />

From 1993 to date, the project has published a series <strong>of</strong> reports <strong>and</strong> <strong>Reality</strong> Checks on aid <strong>and</strong><br />

development cooperation.<br />

These reports provide a critical analysis <strong>of</strong> how governments address the issues <strong>of</strong> poverty <strong>and</strong><br />

whether aid <strong>and</strong> development cooperation policies are put into practice.<br />

The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> Project Management Committee is made up <strong>of</strong> regional representatives <strong>of</strong> all<br />

participating agencies.<br />

Chair<br />

Antonio Tujan, Jr.<br />

IBON Foundation<br />

Vice Chair <strong>and</strong> OECD<br />

(outside Europe)<br />

Asia-Pacific<br />

Europe<br />

Africa<br />

Latin America<br />

Brian Tomlinson<br />

Canada Council for International Cooperation – CCIC<br />

The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> Secretariat<br />

Lucy Hayes,<br />

European Network on Debt <strong>and</strong> Development (EURODAD)<br />

Meja Vitalice<br />

African Forum <strong>and</strong> Network on Debt <strong>and</strong> Development (AFRODAD)<br />

Ruben Fern<strong>and</strong>ez<br />

Asociación Latinoamericana de Organizaciones<br />

de Promoción al Desarrollo A.C. (ALOP)<br />

<strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> Secretariat: Josephine Dongail <strong>and</strong> Reileen Joy Dulay<br />

Email: secretariat@reality<strong>of</strong>aid.org<br />

Website: www.reality<strong>of</strong>aid.org<br />

ix


Acknowledgements<br />

The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> 2008<br />

The <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> Report is written by authors from NGOs worldwide, whose research<br />

draws on knowledge <strong>and</strong> expertise from aid agencies, academia, community-based<br />

organizations <strong>and</strong> governments. We would like to thank those who have generously<br />

contributed their knowledge <strong>and</strong> advice.<br />

Overall editorial control <strong>of</strong> the <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> 2008 lies with the <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> Management<br />

Committee, but the views expressed in the reports do not necessarily reflect the views <strong>of</strong><br />

the Management Committee or IBON.<br />

The Management Committee was assisted by Edward Thorpe as editorial consultant,<br />

Pr<strong>of</strong>. Luis Teodoro as copy editor <strong>and</strong> Reileen Joy Dulay as managing editor.<br />

This <strong>Reality</strong> <strong>of</strong> <strong>Aid</strong> 2008 Report is published with support from Canada Council for<br />

International Cooperation (CCIC), Novib <strong>and</strong> the Coalition <strong>of</strong> the Flemish North-South<br />

Movement - 11.11.11.<br />

x

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