Development

New Zealand - DAC Peer Review of Development Co-operation

 

New Zealand must radically boost development co-operation if it is to meet the international target of giving 0.7% of its gross national income (GNI) in aid. Its aid volume actually dropped by 4% during 2009, to USD 309 million, representing 0.28% of GNI. New Zealand has recognised the need to do more, pledging to raise the level of aid to USD 416 million by 2012/13 despite strong pressure on public spending.

While New Zealand is a comparatively small donor, it boasts an internationally-recognised aid programme with specific understanding of the unique Pacific context. It is seen as a flexible and predictable humanitarian donor. It should build on this as its aid budget grows.

This DAC peer review highlights major strategic, institutional and organisational reforms underway across New Zealand’s aid programme, including the full reintegration of development co-operation into the Ministry of Foreign Affairs and Trade. This reintegration offers authorities an opportunity to strengthen the aid programme and sharpen the focus on development, both within the ministry and across government. It also offers a new opportunity to reach out to civil society and the private sector.

 

About
this review

New Zealand's
peer review history

 

Implementation of
peer review recommendations from 2005

Read about the implementation of the 2005 recommendations

Related links

 

Actively promoting sector-wide approaches in Vanuatu: multi-donor pooled funding in the education sector

In December 2009, the Government of Vanuatu signed a joint partnership arrangement with development partners to contribute towards the funding and implementation of the Vanuatu Education Road Map (VERM).

Under the joint partnership, three donors –New Zealand,Australiaand UNICEF – have agreed to pool their funding with the Government of Vanuatu to support the VERM. Other donors who are signatory to the joint arrangement and support the VERM, but who do not pool their funds, include the EU, France, Japan, UNESCO, the World Bank, Peace Corps and the Secretariat of the Pacific Community.

The financial assistance from the pooling partners is provided through separate grant arrangements agreed between the government and the relevant donor partner. Two tranches of payment are made to the Government Development Fund Account (DFA) annually. The pool fund is managed by the Ministries of Education and Finance, while the Prime Minister’s Office is responsible for overall co-ordination and alignment with government priorities. (Box 6 p.61)

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