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Aid effectiveness in Ethiopia: The North Gondar Programme
The Plan for Accelerated and Sustained Development to End Poverty (PASDEP) is the main framework in Ethiopia for donor dialogue on development, which has become more strained since 2005 (Annex D). The joint review of PASDEP by the Government of Ethiopia and the Donor Assistance Group noted that “the fast economic growth was being challenged by structural problems, low level of productivity, weak implementation capacity, low level of external finance, unpredictability of aid and transaction costs of aid” (Development Assistance Group Ethiopia, 2008). Low levels of productivity are particularly challenging in the agriculture sector. Faster progress would require “enhanced capacity at all levels.” In 2005 an impressive 96% of ODA disbursements were recorded by government, but, by 2007, predictability had fallen to 73%, due to difficulties for donors in using common arrangements. The Paris Declaration Monitoring Survey notes that "challenges remain [...] particularly in terms of harmonising financial and legal procedures for all donors for programme management" (OECD, 2008b). (Box 9. p.76)
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