Development Co-operation Directorate (DCD-DAC)

Setting targets to measure aid effectiveness (DACNews Sept-Oct 2005)


Paris Declaration agrees key targets for the future. For example by 2010:

  • 75% of developing countries should have effective poverty reduction strategies  of their own
  • At least 40% of donor country missions in poorer countries should be jointly organised to cut costs
  • Two-thirds of all country analytical work should be joint, drastically cutting the number of duplicative pieces of consultancy
  • The number of developing countries who improve their own financial systems (budgets linked to policy priorities such as poverty reduction) should be increased by half
  • The proportion of countries without transparent and monitorable performance assessment processes should be reduced by one third.

The Paris Declaration on Aid Effectiveness signed in March of this year, set twelve indicators against which progress could be measured ahead of the next High Level Forum (Ghana 2008). Participants asked the OECD DAC to bring countries and organisations together again, in order to agree firm targets for these indicators for making aid more effective. The good will expressed by over 100 wealthy and developing countries and international agencies in Paris in February helped achieve great progress to agree targets before the United Nations Summit began.

Proposals for all the targets were circulated to every Paris participant at the beginning of August. This was after detailed negotiations in the relevant Working Party on aid effectiveness, in which developing countries and bilateral and multilateral donors participated actively. 

We are pleased to report that on the basis of responses received, the targets proposed in early August have been agreed subject only to reservations by one donor on (a) the methodology for assessing the quality of locally-managed procurement systems and (b) the quality of public financial management reform programs. Further discussions will take place to address these issues. The next step will be to put in place arrangements to monitor progress against each indicator in the course of 2006.

It is our hope at the OECD DAC that the Paris Declaration will change the way donors and recipient countries think about doing aid better at country level, in the same way the Millennium Development Goals changed the way the world thinks about what aid is for.

You can read a full list of the targets and indicators here.