Tracking External Donor Funding.pdf - NDC

4. Reflections and Policy Recommendations
It has been the objective of this study to produce a
comprehensive review of the external finances absorbed
by the Palestinian NGO sector. Neither the above
research nor the following recommendations include any
discussion of whether these organizations have achieved
their stated objectives; no evaluation or judgment has
been made regarding the effectiveness of the aid received
by the Palestinian Territories. By way of conclusion, we
will outline the problems associated with the
unavailability of PNGO financial data and end by
recommending a potential means of overcoming these.
4.1 The Absence of Data, Policy
Harmonization and Transparency
In response to the Paris Declaration on Aid
Effectiveness, the MoP crated the PAMS system for
tracking external finances. This database, however, is
still unable to capture a genuinely accurate picture of aid
flows to both the governmental and non-governmental
sectors in the WB&GS. Often, smaller organizations
with budgets of less than a million US dollars are
overlooked by PAMS. Yet are research demonstrates that
small budgets can quickly accumulate, and thus grow,
into significant sums deserved of our attention.
An obvious consequence of the limitations inherent in
the PAMS system is a lack of coordination between nongovernmental
and governmental organizations operating
within the Palestinian Territories. This lack of
harmonization between sectors has, on occasion, resulted
in poor communication between donors, PNGOs and the
PA or even direct duplication of services or projects; a
reality that may have challenged the legitimacy of
collective and long-term development strategies.
It is clear, therefore, that a lack of transparency regarding
the finances and activities of PNGOs has helped to
prevent effective policy harmonization. Moreover, an
unwillingness to disclose this information may well have
restricted the effectiveness of the non-governmental
sector in general. Only through an increase in the level of
transparency can a harmonized and collective
development strategy be forged. Unless all parties are
made aware of what development aid is being spend on,
successful policy coordination will remain allusive;
harmonization cannot be achieved without reference to
an accurate picture of the totality of development efforts.
It must be noted, however, that achieving greater
harmonization is not as simple as it initially sounds.
Efforts must be made to balance the need of greater
transparency with the needs of PNGOs to maintain the
autonomy and flexibility which they require to do the
work that they do. Both local and international NGOs are
often unwilling to reveal the sources and destination of
their finances. It may be the case that many local NGOs
would be unwilling to participate in any effort to increase
transparency without first being assured of their
continued right to operate in a manner they deem
necessary and serve the constituencies they choose.
4.2 Policy Recommendation: NGO Project
Database
It is for the above reasons that this study recommends the
development of a database capable of accurately tracking
aid flows to PNGOs; a database superior to those that
already exist. Such a database could be made available to
governmental and non-governmental organizations both
within and outside of the WB&GS. Care would have to
be taken, however, to manage access to this database. It
would be essential that it did not become viewed as an
encroachment into the rights of the nongovernmental
sector by the PA instead of a move towards mutually
beneficial harmonization.
4.3 Potential Benefits of the Proposal
Our research suggests that a database of this sort would
have some clear and tangible benefits. Most importantly,
it would allow policy-makers, project managers and
researchers to build a broad and accurate picture of the
financial resources that are entering the Palestinian
Territories, the origins of these resources, what they are
being spent on and where they are being spent. Improved
transparency and increased access to data regarding the
finances and activities of PNGOs and their international
counterparts would allow for a harmonization of
development strategies between governmental, nongovernmental
and international organizations. In turn,
this would allow for greater coordination, a far more
efficient distribution of resources and increased “value
for money” for both Palestinian citizens and international
donors alike. Donor states and organizations, for
example, would be able to better assess the impact of the
finances they provide and make superior decisions
regarding which organizations to financially support.
Likewise, the collated data could be employed be
researchers and academics to evaluate the role that
NGOs play in Palestinian development and the value of
their development strategies to the Palestinian economy
and the wider society. Any lessons learned from such
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