Aid effectiveness

Effective Institutions

 

Effective states and institutions are vital pre-conditions for development; creating these effective states and institutions requires a holistic approach to supporting public sector reforms and recognising the strategic functions of public financial management and procurement.

 For this reason the Busan Partnership for Effective Development Co-operation included a number of related commitments (§29).

A voluntary agreement: a New Consensus on Effective Institutions, was reached in Busan which called on specific actions in support of these commitments.

Busan: a new way of working

The Effective Institutions commitments in the Busan Partnership for Effective Development Co-operation propose creating more coherent responses to partner country needs in order to sustain their public sector institutions and related reform efforts.

The new consensus treats the areas of accountability, capacity development, and country systems  as a whole with the aim of making them more effective in practice. In addition it highlights the following:

  • the impact of accountability institutions and politics
  • The importance of sequenced reform efforts responding to the political and social contexts;
  • joint assessments of partner country institutions and capacity development needs;
  • the need for evidence on institutional performance; and
  • systematic knowledge sharing efforts.

Finally, it was also recognised that in order to be effective, a broader array of stakeholders needed to help shape this agenda, including civil society, parliamentarians and others (private sector, media, etc).

 

How the OECD works to support the effective institutions commitments

In addition, the OECD’s work focuses on a number of areas where the key objective is to support the implementation of commitments to build effective institutions

 

Busan commitments on supporting effective institutions (§29)

Support the implementation of institutional and policy changes led by developing countries, resulting in effective resource mobilisation and service delivery, including national and sub-national institutions, regional organisations, parliaments and civil society.

Assess country institutions, systems and capacity development needs, led by developing countries.

Support the development of improved evidence on institutional performance to inform policy formulation, implementation and accountability, led by developing countries.

Deepen our learning on the determinants of success for institutional reform, exchanging knowledge and experience at the regional and global levels

 

About the Effective Institutions platform

The Effective Institutions platform is a partnership of over 40 countries (OECD and non-OECD) and organisations (including donor partners and CSOs), which aims to better support country needs and expectations in strengthening public sector institutions and enabling them to deliver better public services.

The Effective Institutions platform takes a holistic approach to supporting public sector reforms and recognises the strategic functions of public financial management and procurement, as agreed in the Manila Statement on Effective States - a precursor to the Busan commitments.

Read the Manila Statement on Effective States

 

Objectives of the Effective Institutions platform

  • to steer the direction and content of public sector reforms, taking country context and leadership into account; and by extension to support recipient country negotiation of and roles in reform design and implementation
  • Identifying good practices in public service reforms, country systems strengthening, and capacity development
  • To uncover successful approaches for building effective institutions and ensuring that mutual learning processes are in place to allow strengthening of country systems and institutions, and tracking and assessing results
  • Ensuring that country and development partner stakeholders can have access to knowledge and experiences which go beyond - or cut across - the specialised aspects underpinning effective institutions

 

 

Related Documents

 

Strengthening and Using Country Systems

Procurement: An overview

Public Financial Management: An overview

Capacity Development

Governance and development

Principles for Donor Action on Anti-Corruption

 

Countries list

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