Commission Staff Working Document Qualitative Assessment of the Reform of External Assistance

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Subject: Commission Staff Working Document Qualitative Assessment of the Reform of External Assistance Delegations will find attached Commission document SEC(2005) 963.

________________________

Encl.: SEC(2005) 963

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 11.7.2005 SEC(2005) 963

COMMISSION STAFF WORKING DOCUMENT

QUALITATIVE ASSESSMENT OF THE REFORM OF EXTERNAL ASSISTANCE

COMMISSION STAFF WORKING DOCUMENT

QUALITATIVE ASSESSMENT OF THE REFORM OF EXTERNAL ASSISTANCE

TABLE OF CONTENTS

  • 1. 
    Introduction .................................................................................................................. 3 2. Summary ...................................................................................................................... 3 3. Main objectives of the reform and implementation ..................................................... 4

3.1. Strengthening the strategic dimension of assistance.................................................... 4

3.2. Better management of assistance delivery ................................................................... 6

3.3. Improving financial management ................................................................................ 7

3.4. Making assistance more visible ................................................................................... 8 4. Improving the quality, results and impact of aid.......................................................... 8 4.1. Quality of programming and implementation.............................................................. 9

4.2. Results in terms of delivery........................................................................................ 12 4.3. Assessing the impact of assistance............................................................................. 14

  • 5. 
    Perspectives................................................................................................................ 16

5.1. Quality........................................................................................................................ 16

5.2. Results ........................................................................................................................ 17 5.3. Impact......................................................................................................................... 18 6. Annexes...................................................................................................................... 19 6.1. EuropeAid performance indicators 2001-2004 .......................................................... 19 6.2. Commitments by OECD/DAC members and EU on aid effectiveness ..................... 23

6.3. Evaluation results ....................................................................................................... 24 6.4. External assessments of EC aid delivery ................................................................... 26

  • 1. 
    I NTRODUCTION 1

The Council invited the Commission to `conduct a qualitative assessment of the EC

external assistance separate to the Annual Report and to consider how best to refine, consolidate and further improve the innovations and positive changes in the followup of the Reform Process begun in 2000, while focusing on quality, impact and results'. It invited the Commission to report before July 2005.

Several assessments of the external assistance reform have been made, both internally and externally. Partly taking these documents

2

as a basis, this report

focuses in chapter 3 on the areas that were identified in 2000 for the reforms and the measures taken since then. Chapter 4 focuses on the progress made in terms of quality, results and impact. Chapter 5, finally, sets out perspectives for future work. Only where relevant, does the report quote figures or details which are otherwise available in many of the publications of the Commission, such as the annual reports on external assistance.

Data in the report is as at 31.12.2004, therefore including CARDS in the Commission's portfolio as managed by EuropeAid Cooperation Office (hereafter EuropeAid), but excluding PHARE and other pre-accession assistance and also excluding ECHO, CFSP and macro-financial assistance as provided by DG Economic and Financial Affairs.

  • 2. 
    S UMMARY

The overall objectives of the reform were to speed up implementation of external assistance and to improve the quality of aid delivery. Operationally, the reform process was largely complete by the end of 2004. It brought about: (i) improved programming within a coherent project cycle with a focus on poverty eradication; (ii) the creation of one single entity responsible for the implementation of assistance (EuropeAid); (iii) a completed devolution process with 80 delegations now responsible for the management of aid; (iv) the creation of more than 1 500 additional posts in delegation to speed up implementation; (v) improved working methods through harmonised and simplified procedures, better information systems and better trained staff; and finally, (vi) improved quality through a process of quality support and monitoring of the different stages of project management.

The results are that, both commitments and payment levels have continued to rise every year since the reform, reflecting a speedier and more effective implementation of assistance. On the quality of assistance, project monitoring shows improved ratings every year since its start, particularly on impact of programmes. Several outside organisations, including the OECD/DAC, recently commented on the positive developments in EC assistance since the reform, citing improved

1 Council Meeting (GAERC), 22-23 November 2004, document 14724/04

2 For instance the Annual Reports on the European Community's Development Policy and External Assistance; COM(2004)561of 06.05.2004 Evaluation of the deconcentration process; COM(2005)51 and SEC(2005)242 on the Cotonou Agreement; OJ C72 of 22.03.2005, Special Report 10/2004 of the Court of Auditors on devolution

programming and implementation, built up know how in areas such as budget support, good governance and human rights, and the Commission as a quickly evolving organisation being capable of absorbing change (see paragraph 4.3.4 and annex 6.4).

Of course, improvements are still needed and continue to be made. The coordination and harmonisation agenda with other donors will have a major positive impact on aid delivery. Internally, the Commission will continue to streamline procedures, push for more devolution to delegations, clarify interaction between delegations and headquarters and improve information systems. Within this framework, quality of projects and programmes at entry will receive more attention through a reinforced Quality Support process. This will also require a clearer focus on a limited number of sectors (and per sector a limited number of activities) per partner country. During implementation better use should be made of monitoring tools and at closure of programmes, evaluations should result in a clearer input into the programming and identification process.

  • 3. 
    M AIN OBJECTIVES OF THE REFORM AND IMPLEMENTATION

The budget for external assistance increased dramatically between 1989 and 1999. This increase of 131% was largely due to the PHARE programme, but also MEDA and EDF contributed significantly to this increase. At the same time, payment levels did not rise, leading to an excessive backlog, especially towards the end of the nineties.

The significant growth of the external assistance budget had not been matched by appropriate changes in human resources, structures and management tools. More and more time was needed to implement projects. The Commission's external assistance programmes had a reputation for slow and unresponsive delivery. Indeed, the Commission's management performance had deteriorated so much that it was undermining the credibility of its external policies.

3

The objective of the reform of external assistance was to substantially improve the

speed and quality of the external assistance programmes of the Commission. Implementation of the reforms at the operational level was virtually complete in 2004.

The paragraphs below show progress achieved on the main objectives set out in the reform paper of 2000.

3.1. Strengthening the strategic dimension of assistance 4

The adoption of Country Strategy Papers (CSP) and Regional Strategy Papers (RSP)

reinforced the strategic planning and resulted in a more region adapted programming. The purpose was not only to adopt the strategy which will be most effective for the

3 Communication to the Commission concerning the reform of the management of external assistance, SEC(2000)814 of 16.05.2000

4 See Staff working paper `Progress report on the implementation of the common framework for Country Strategy Papers', SEC(2002)1279 and associated Council Conclusions of 18.03.2002

country/region concerned, taking into account its domestic resources and policies, but also to ensure coherence with other EU policies, and the co-ordination of EU actions with those of other donors. The introduction of Poverty Reduction Strategy Papers (PRSPs) by partner countries led to a closer collaboration between donors and the partner countries, both for the outlining of policies as for the implementation. Where available, the Commission uses these PRSPs as a basis for its own strategies. Where possible, this is done in consultation with civil society.

In order to ensure continuous monitoring of the consistency and quality of the programming process, an interdepartmental Quality Support Group (iQSG) was set up. The iQSG has been operational since January 2001. Its main tasks are to propose improvements on programming methodology and to screen draft strategy documents and indicative programmes. Within this framework, regular reviews take place to adapt the strategies and the allocation of resources to the partner countries' performance (so-called rolling programming). All CSPs were, for instance, reviewed in 2004 during these Mid-Term Reviews.

A multi-annual evaluation strategy for the period 2002-2006 was adopted in November 2001, defining the thematic and sectoral evaluations to be done and the strategy to be followed for the geographical evaluations.

Closely linked to the strategic strengthening of assistance is the focus on the eradication of poverty. Council and Commission adopted in 2000

5

a general

statement on development policy, defining strategic objectives and emphasising the primacy of poverty eradication. This policy is in line with the Millennium Development Declaration and Goals of 2000, which are now used as a benchmark for all poverty eradication actions of the Commission.

The policy statement focuses Community assistance in six areas where the Community could add particular value: (i) the link between trade and development; (ii) regional integration and cooperation; (iii) support for macro-economic policies and equitable access to social services; (iv) transport; (v) food security and sustainable rural development; and (vi) institutional capacity building, in particular good governance and the rule of law. The promotion of human rights, equality between men and women, environmental sustainability and conflict prevention are integrated at every stage and within all of the Community' assistance programmes.

The focus on the poorest countries has become more pronounced over the years since the reform. In 1999, 34.1% of the aid budget was used for payments benefiting lowincome and the least developed countries. In 2003

6

this rose to 44.5%. At the same

time, following the Mid-Term Review exercise of 2004 (see 4.3.1), commitments in relation to social sectors increased significantly.

5 Declaration by the Council and the Commission on the European Community's development policy, ref 13458/00 of 16.11.2000. A new development policy statement 2005 is being prepared by the Commission 6 Only Official Development Assistance (ODA). It excludes pre-accession assistance to the countries of Central and Eastern European Countries

3.2. Better management of assistance delivery 3.2.1. Closing the programme cycle gap

With the creation of EuropeAid in January 2001, all expertise in the area of project and programme management was brought together in one functional set-up. EuropeAid reports to the Commissioner responsible for external relations. It is responsible for the implementation of all assistance to third countries

7

. Since the

reform, DG External Relations and DG Development are responsible for multiannual programming, and EuropeAid for the project cycle. Evaluation is a shared responsibility. This has led to a clear division between political and strategic questions on the one hand and the identification and implementation of projects on the other hand. The reunification of the project cycle took place at the same time as the closure of all Technical Assistance Offices and the integration of their tasks into the Commission.

3.2.2. Devolving the management of assistance

The wide-ranging reform included the devolution of responsibilities and resources to the Commission's Delegations in the partner countries, implemented in three waves from 2001 to 2004. Devolution concerned primarily the management of external assistance but also led to an increased role of delegations in other related matters such as the policy dialogue with the authorities and the coordination with donors. Today 80 delegations are devolved, of which 37 in Africa, 10 in the Mediterranean region, 11 in Asia and the Pacific, 15 in Latin America and the Caribbean and 7 in Europe. Before the reform, 55% of the funding was managed centrally at headquarters and 45% jointly with delegations. Today, around 70% of all funds are directly managed by delegations.

3.2.3. Strengthening human resources

Towards the end of the nineties, the lack of staff (compared to the increasing funds to be managed) started to directly affect the speed and quality of the external assistance. The reform changed this. 1559 Staff posts were created in delegation

8

, in line with

the devolution exercise, to ensure quicker and better results in the management of aid delivery. The resulting staffing levels compare to an average of more than five staff members per $ 10m managed in 2004, from less than three in 1997. Most Member States have between seven to nine staff members per $ 10m managed

9

.

The Commission heavily invested in the training of its staff both at headquarters and in delegations. In 2004, the total number of staff training days had increased six-fold compared to before the reform. It went up to an average of 15 days per person for the staff of EuropeAid.

7 With the exception of pre-accession assistance, humanitarian aid, macro-financial assistance, Common and Foreign Security Policy and the EDF Investment Facility as managed by the European Investment Bank. Note that as of 2005 assistance to the Balkans is not in EuropeAid's portfolio anymore 8 See annex 6.1 (item 4.2). It shows that at the end of 2004, 1 304 posts had been filled. The remainder is due in 2005

9 EU Donor Atlas, May 2004, DG Development. Averages based on both delegation and headquarters staff working on development assistance

3.2.4. Improving working methods

The reform resulted in a harmonisation of working methods between cooperation instruments across regions. The Commission invested substantial time in developing manuals, guidelines and working tools. For all development priority sectors practical guides and orientation papers have been produced

10

.

The microfinance review can be cited as an example of how the Commission takes in external criticism to improve implementation. The review

11

, pointed to weaknesses

such as lack of shared vision, lack of internal expertise and poor knowledge management. Since investing in an increase of expert staff was not possible, the Commission started focusing on capacity building rather than providing micro credit lines. It also set up a microfinance thematic network, contributing to better knowledge management.

All information systems used for programmes financed via the budget have been integrated into a single system, the Common Relex Information System (CRIS). CRIS links headquarters and Delegations electronically, and includes information on programme implementation. CRIS enables the Commission to provide Council and Parliament with up to date financial data compatible with OECD/DAC sectoral coding (commitments, disbursements and regional breakdowns). Links between CRIS and the European Development Fund (EDF) management system (OLAS) are now operational and constitute a first step for the complete integration of EDF in the new Commission accrual based accounting system (ABAC) in 2006.

3.3. Improving financial management

The new Financial Regulation came into force on 1 January 2003. New provisions in the part on external actions include a `sunset clause' requiring that contracts are signed within three years from the date of budgetary commitment. For external actions financed from the budget, simplified and harmonised procurement procedures have been established, reducing the total number from 46 to 8

12

. As far as

the EDF is concerned, similar simplification and consolidation of guides have been carried out

13

.

10 The guidelines on EC support to sector programmes were presented to other donors, including the OECD/DAC forum, where they served as a basis for the preparation of Good Practice Papers on Sector and Budget Support. The Project Cycle Manual was adopted by several international cooperation agencies 11 The review was coordinated by the Consultative Group to Assist the Poor, a leading think tank on microfinance; see www.cgap.org

12 A Manual `Rules and procedures for services, supplies and works contract financed from the general budget of the EC in the context of cooperation with third countries applicable to contracts in the context of co-operation with third countries' and a Practical Guide to EC external aid contract procedures (including standard contracts) have been established, as well as a Finance Guide. All were updated with the new Financial Regulation 13 A new `Finance Guide for the 9 th EDF', a `Guide for programme-estimates and direct labour operations in the EDF' and a `Practical Guide to contract procedures financed from the 9 th EDF' were adopted,

similar to those used for projects financed from budget. In the context of the revision of the ACP-EC Partnership Agreement (Cotonou Agreement) the EDF financial regulations will be further harmonised with those of the general budget

The external assistance reform also foresaw a harmonisation of budget lines, and these have been reduced from 64 in 2000 to 52 in 2005. New proposals for further rationalisation of cooperation instruments and thematic budget lines and are on the table in relation to the future Financial Perspectives 2007-2013.

3.4. Making assistance more visible

A Communication strategy for external assistance and an action plan were approved by the RELEX Commissioners in June 2003. They served as a basis for the publication of brochures, upgrading of the websites and an airport poster campaign.

The Annual Reports 2002, 2003 and 2004 on the EC's development policy and external assistance were published and presented to Parliament and Council. They play a major role in providing background data and substantive information to main target groups and the public.

The EuropeAid website has developed over the years and now includes sections on: programmes and projects, themes, and evaluations with a complete section on all evaluation reports produced since 1998. The site also includes sections on contract procedures, where all guidelines and standards document are available, and a section with all tenders published by status (forecast, open, closed), type (supplies, works, services, grants) and country/region.

  • 4. 
    I MPROVING THE QUALITY , RESULTS AND IMPACT OF AID

One of the core objectives of the reform was to improve the quality of external assistance. In order to appreciate this process, the report first looks at the quality of programming in relation to the preparatory and implementation phases (paragraph 4.1), then it focuses on the results of the reform in terms of aid management (paragraph 4.2), and finally looks at the impact of operations more generally (paragraph 4.3).

However, it must be borne in mind that `quality, results and impact' are influenced by the overall policy developments of the Union. Two Commission proposals are worth highlighting in this respect. The proposal for the future Financial Perspectives (2007-2013)

14

which for the external assistance part proposes a simplification of

15

instruments , a harmonised application of provisions between the instruments

geared towards facilitating coherence and consistency, and achieving better and more with resources available. It also includes a proposal to budgetise the EDF as a way to mainstream cooperation with the ACP.

16

The Commission also recently tabled a set of proposals on the financing of aid, on the coherence of external policies and on support to Africa. At the same time the EU

14 COM(2004)626 of 29.09.2004

15 Three policy driven instruments: Development Cooperation and Economic Cooperation; European Neighbourhood and Partnership and Pre-accession. Three horizontal instruments: Instrument for Stability, Humanitarian Aid and Macro-Financial Assistance 16 COM(2005)132-133 and SEC(2005)452-455 of 12.04.2005

17

started an external consultation process on a new development policy declaration .

This way the EU will be able to present itself at the UN conference on the MDGs in September 2005 with an up to date and coherent set of policies.

4.1. Quality of programming and implementation 4.1.1. The programming strategy

Overall, the CSP and regional strategies met most of the requirements of the CSP Framework. In most cases the authorities of the partner countries were involved in the programming process, leading to more ownership and consistency between the Commission's response strategy and the national development process. Member States have been closely involved in the drafting process, both in the field and through discussions in the management committees. The involvement of non-state actors in the programming process, in particular in ACP countries, marks an important step forward. The CSP process has also improved the analysis of policy coherence with related EU policies.

However, a tension remains between the introduction of new policy initiatives through reviews and the need to focus country programming on a few areas of cooperation. Furthermore, there is scope for establishing a clearer focus in programming and implementation.

4.1.2. Preparation of projects

In general, the preparation of programmes and projects is now done with a closer involvement of local authorities and other development partners (other donors, civil society). Assistance has also become more focussed and the average size of financing decisions (on an annual basis) has gone up from 3m in 2001 to 8m (budget) and 11m (EDF) in 2004 resulting in more impact and more efficient management (see annex 6.1, item1.2).

In order to improve the design of individual operations, quality support groups (QSGs) review projects and programmes in preparatory stages (based on an identification fiche) and at completion of preparatory activities (based on the Financing Proposal). The QSGs use checklists based on a Quality Frame

18

which is

19

coherent with OECD/DAC evaluation criteria . The number of reviews has

increased over the years. In 2004, 244 reviews were carried out for an amount of 3 200m. This means that the QSG process is now at one third of full implementation. (see annex 6.1, item 3.4).

With the reorganisation of EuropeAid in 2005, a new directorate for general quality support was created, as well as a dedicated secretariat for all QSG activities. They will contribute to further streamlining the methodology and gradually developing and implementing more comprehensive quality systems.

17 See http://europa.eu.int/comm/development/body/theme/consultation/index_en.htm

18 The Quality frame is a system based on three attributes ­ relevance, feasibility and effectiveness and good management ­ and breaks these down in (16) criteria and (64) standards, each time more detailed. The criteria indicate key issues that need to be assessed in order to make a judgment about quality 19 DAC principles for evaluation of development assistance, OECD 1991 [OECD GD (91) 208]

4.1.3. Monitoring the quality of projects and programmes

Monitoring relates to quality reviewing of on-going projects. It is the next step in the quality assurance chain and may be followed after closure by the evaluation stage (see 4.3.3). Before Results-Oriented Monitoring (ROM) was introduced in 2001, the Commission monitoring was centred around inputs (such as financial data), activities and outputs of projects (through visiting projects and assessing reports). ROM allows additionally for monitoring of progress, outcome and impact of on-going projects. ROM is carried out by independent experts. This methodology is based on international standards, and is applied systematically and consistently throughout all regions and throughout the years. Ratings are given against internationally accepted criteria covering five quality attributes: relevance, efficiency, effectiveness, impact and sustainability, based on both internal and external factors.

Since 2002, close to 1 000 projects per year are visited by experts. In 2004, 1 300 reports were drafted, covering 7 600m of assistance. ROM works on the basis of the following ratings: 4 (very good), 3 (good), 2 (some problems) and 1 (major problems). An average of 2.5 means that a project is performing well and achieving its goals. Based on this average, the results are satisfying.

Average by main criteria

200 2002 2003 2004

Relevance 2.57 2.62 2.68 2.69

Efficiency 2.51 2.56 2.56 2.61

Effectiveness 2.67 2.69 2.72 2.72 Impact 2.59 2.62 2.70 2.73

Sustainability 2.55 2.60 2.67 2.65 Average 2.58 2.62 2.67 2.68

The system also allows identifying projects with major problems. 90% of all projects monitored in 2004 did not have any major problem. 2% of projects in the same year had major problems in at least three of the five criteria. Delegations and headquarters act on this information: projects are reviewed, reformulated or closed down where it is clear that a redirection is not possible.

95% Of delegations indicated in a questionnaire in 2004 that they thought project management had in general improved. They rate the ROM system generally as 3 out of 5. It gives them an independent view which helps them to better manage projects and reorient where needed.

4.1.4. More effective aid delivery

The use of sector-wide approaches and budget support is encouraged by the Commission as a way of reducing transaction costs and improving general effectiveness of aid delivery. It maximises ownership by partner countries, and it has a positive impact on delivery and public financial management systems. The percentage of assistance going through budget support or sector programmes slowly increases (see annex 6.1, item 3.1). The EU is committed to further increase the share of its aid going to budget support and sector programmes.

Approximately 35 Sector Policy Support Programmes (SPSP) are implemented and more are in pipeline for an estimated total of 3 800m. The new generation of SPSPs under preparation concern ACP, Asia, Latin America and the Mediterranean region and go beyond the traditional sectors of health and education. Sector budget support is gradually becoming the preferred financing modality in those regions. Of course, this only happens when conditions on the quality of the public expenditure systems have been met.

Substantial progress was made with other donors on the establishment of a Public Finance Management (PFM) Performance Framework, within the Public Expenditure and Financial Accountability (PEFA) initiative

20

. Agreement was reached on a set of

performance indicators, which are now being tested in about 25 countries.

4.1.5. Coordination and complementarity with other donors

The Commission has been working towards the harmonisation of donor practices in line with the Rome declaration (February 2002). The Commission has been particularly active in the Working Party on Aid Effectiveness and Donor Practices of the OECD/DAC. This was also reflected in a report prepared by the Ad Hoc Working Party on Harmonisation of the Council. It led to a set of practical recommendations approved by the GAERC in 2004. Further commitments were taken at the OECD Forum of March 2005 in Paris (see Annex 6.2).

Results of the EU Coordination Pilot Initiative in four Countries (2002-2004)

The four countries (Morocco, Mozambique, Nicaragua and Vietnam) belong to the 14 partner countries associated to the follow-up of the Declaration of Rome. The initiative was about defining pragmatic coordination activities, based each time on the individual country.

In all four countries structured dialogues took place on how to implement the Rome Declaration. Other good practices that came about were:

· Annual report on the state of coordination/harmonisation (Morocco)

· Structured coordination/harmonisation sector working groups (Mozambique)

· Formal system of information on detailed donors' activities (Vietnam, Nicaragua)

· Operational agreement, Memoranda of Understanding, Joint Financing Agreements, implementation modalities, (Mozambique, Morocco/MEDA) · Structured Budget support mechanisms (Mozambique, Nicaragua) · Harmonised cost norms, salaries (Nicaragua, Vietnam)

In general, more coordination between EC and Member States in the field in the preparatory phases of projects and programmes, led to a more strategic focus in the management committees.

Commission's effort of harmonising its practices with those of other donors produced results especially for its cooperation with the UN and the World Bank. The value of contracts awarded to the World Bank went up with 400m to 511m in 2004. Contracts with the UN system increased from 260m to more than 500m

20 PEFA is a joint programme by the IMF, World Bank and the EC of 2002 with France, Switzerland and Norway. It aims to harmonise checking tools (audits for instance) in the area of public finance management

between 2002 and 2004. Increased cooperation is possible thanks to the Framework Agreements and Strategic Partnerships, which became a reference for the whole UN family for its relations with the Commission. Although intensified cooperation with the UN family and the international financing institutions provides often for efficient and effective delivery of aid, it raises the question of the visibility of the European contribution.

4.2. Results in terms of delivery

4.2.1. Faster implementation of assistance

Amounts committed and paid under the Budget consistently increased after the reform, reaching highest levels ever in 2004 with 4 268m. EDF commitments

21

th

show a specific trend related to the entry into force of the 9 EDF in 2003.

Commitments 2001 2002 2003 2004 Budget 3 641 3 877 3 918 4 268 EDF 1 927 2 125 3 769 2 648

Payments have increased by 47 % since the start of the reform. The Commission consolidated the positive payment trend for the EDF: payments in 2004 ( 2 464m) represented the highest volume ever achieved

22

. Payments on the budget increased as

well, with highest levels in 2004.

Payments 1997-2004 (M)

6.000

EDF

Others

4.000

Mediterranean

Asia

2.000 Latin America NIS

The Balkans

0

1997 1998 1999 2000 2001 2002 2003 2004

In general, preparation and implementation of programmes have speeded up. Preparations are now better planned over the year, resulting in a more even distribution of financing decisions over the year with 71% of the funds committed by the end of September 2004, compared to 42% in 2001.

Payment requests are processed faster, especially in relation to the budget. The Commission is now working towards having most payments take place within 45 days instead of 60. In 2004, 78% of all (budget) bills were settled within 45 days. For the EDF, gains are expected with the recent devolution (see annex 6.1, item 2.3).

21 For 2003 and 2004 excluding the EIB managed Investment Facility. ( 366m and 314m respectively) 22 Excluding payments from the EIB managed Investment Facility. ( 93m for 2004)

4.2.2. Stabilisation of outstanding commitment levels

Thanks to the above mentioned performance, and notwithstanding increasing levels of commitments, the total outstanding commitments or reste à liquider (RAL), remaining to be paid, has stabilised since 2000 at around 20 000m after years of steady increase.

25.000

RAL 1997-2004 (M)

EDF

20.000

Others

15.000

Mediterranean

Asia

10.000

Latin america

5.000 NIS The Balkans

0

1997 1998 1999 2000 2001 2002 2003 2004

The stabilisation of the RAL was partly obtained through re-assessing and reorienting existing projects and through decommitting non-used funds. This work was done through formal changes to old and new Financing Agreements, through riders and through reallocations of funding, in order to ensure more impact or speedier implementation.

As far as old commitments (more than five years old and sometimes going back to the early eighties) were concerned, a big clean-up took place, resulting in a stabilised and better controlled amount of these commitments since the reform

23

. However, a

more marked reduction in the levels of old and dormant commitments (dormant are those commitments where no financial transaction took place during 24 months in relation to the amounts committed before 1999) still needs to be achieved. The general positive development is confirmed by the evolution of the ratio RAL/payments (expressed in number of years necessary to pay out outstanding commitments, see the chart below). This ratio has gone down from 4.5 years in 1999 to 3.5 years of payments in 2004.

23 In relation to reducing and managing the RAL, the Commission also issues recovery orders

Number of years to complete the project

6

5

4

Budget 3

EDF Total 2

1

0

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

4.3. Assessing the impact of assistance

Measuring the impact of external assistance on development in general and more particularly on its contribution to the MDG is difficult. The Commission's contribution to the goals cannot be separated from those of Member States or other donors (the so-called attribution-gap). It is also difficult to isolate the effects of the external assistance reform from the effects of other internal changes and reforms in the Commission (such as the internalisation of Technical Assistance Offices). Similarly, it is not possible to see the effect of the reform in isolation from the overall impact of aid delivery of the Commission. Finally, the overall implementation environment in recipient countries is often not stable.

Keeping these limitations in mind, the assessment of the impact of the reform is based on: (i) the results of the MTRs within the frame of partner countries' record towards the reduction of poverty; (ii) the ROM qualitative assessments on effectiveness, impact and sustainability; (iii) Evaluation results per country and region and per sector and theme; and finally (iv) external assessments of Commission managed assistance.

4.3.1. Follow-up on the MDGs and the results of the Mid-Term-Reviews

Within the framework of the MDGs, 10 core indicators were agreed for close monitoring at EU level. No full picture is yet available of the indicators and especially the indicator development over time. In the case of Africa the poverty indicator and the underweight indicators seem to score poorly over time with a lack of any significant improvement in more than half of the observed cases. Considering the limited sample of trend data, it is too early to draw general conclusions. The system will allow the EU to follow more closely in the future.

The Mid-Term Review process resulted in few changes to country strategy papers. The process largely confirmed the validity of existing strategies. It was, however, an

important opportunity to update components in the strategy on the countries' policy agendas and the political, economic and social situation.

The MTR process for ALA, CARDS, MED and TACIS countries assessed the need to revise existing overall strategies in 2003

24

. Where developments in country and/or

in relations with the Union warranted changing the strategy as such, the CSP was rewritten, as for example in the case of Georgia

25

.

26

Out of 62 ACP countries reviewed during the MTR process , 15 were rated as good

performers and 33 as having a sufficient performance, and 14 were rated as having an insufficient performance. This was based on a weighted assessment of financial performance, sectoral policy performance and other considerations. In six cases the CSP was reviewed.

Most countries, even in particularly difficult regions of the world, benefit `substantially' or `sufficiently' from Community assistance. Since MTRs assess countries' progress towards poverty reduction from the specific angle of cooperation with the EC, the results can be considered satisfying.

4.3.2. Assessing effectiveness, impact and sustainability

Although caution is required with the interpretation of the ROM figures, some trends can be identified. The criteria effectiveness and impact show a rating which is consistently higher than the average. The average went up from 2.58 in 2001 to 2.68 in 2004. Impact increased most of all five criteria over the four-year period: from 2.59 to 2.73.

The underlying monitoring reports confirm that the biggest improvements have been made in the areas of effectiveness (benefits as perceived by the people concerned) and the general impact of projects. First signs of efficiency gains due to the devolution process were observed in 2003 and were confirmed in 2004: positive results (through better output achievement and activity timeliness) have now become manifest in those regions where devolution is well established (like TACIS and Latin America). In other regions, like ACP where devolution is of more recent date efficiency gains are anticipated for the future.

4.3.3. Evaluation results 27

The Commission has achieved good results in terms of effectiveness and impact in

those priority sectors where it has substantial experience such as infrastructure, macro-economic and institutional support and food security. Progress can be seen especially where the Commission decentralised (European Agency for

24 As external assistance is only one component of several governing relations with many of these countries, which, for example, take place under the umbrella of the Barcelona Process, the European Neighbourhood Policy or the Stabilisation and Association Process for Western Balkans, the MTR was not an isolated event but flowed from the dialogue and assessment that are undertaken in the wider context of relations with the EU 25 Revised CSP 2003-2006 adopted by the Commission on 23 September 2003

26 The MTRs did not concern the five mico-Indonesian states which joined the Cotonou Agreement, nor did it concern countries for whom no CSP was signed for reasons of suspension of cooperation 27 Evaluations carried out between 2002-2004 cover 10 years of implementation. See also annex 6.3.

Reconstruction for the Balkans) or where it devolved its responsibilities to delegations. In terms of effectiveness of technical assistance, progress has been made especially in the area of trade, and in terms of taking on board lessons from the past.

The evaluations carried out also point to areas needing improvements. Examples are: (i) too many small projects causing too thinly spread assistance; (ii) the difficulty to establish real and enduring partnerships with the beneficiaries; (iii) the constraints of the Financial Regulation and the legal bases slowing down operations and limiting efficiency; (iv) the limited visibility of assistance; and finally (v) the limited followup on assessing impact.

4.3.4. External assessments

After the reform several external studies and evaluations were carried out, by for instance the OECD/DAC, the UK House of Lords and the Swedish Parliament, assessing aid management of the Commission. It shows a renewed interest in the Commission's performance. Even if the methodologies and objectives of these studies were different, the results are generally positive (see annex 6.4).

Comments seem to converge on the following: (i) a recognition of the improved strategic programming, improved financial performance and the speedier implementation; (ii) a recognition of the good results obtained in certain areas where the Commission has built up know-how such as budget support and human rights/good governance; and (iii) the Commission is seen as a quickly evolving organisation, able to continue with reforms.

28

The Court of Auditors mentions in a report on devolution that, even though it is too

early to see the envisaged improvements, `there are signs that devolved management is on the right path to achieving the intended results' and that it helps `the speed and quality of project management'. It recommends amongst others: (i) introducing indicators in relation to speed and quality; (ii) re-organising thematic expertise at headquarters; (iii) further improving information systems; and (iv) continuing simplifying and harmonising procedures and the related supervision in order to enhance the results of devolution.

  • 5. 
    P ERSPECTIVES

This chapter distinguishes between quality, results and impact issues, all relating to consolidating the reform. Other factors, such as a decision on the Financial Perspectives or a review of the Development Policy, can influence the future perspectives presented here.

5.1. Quality

On coordination and harmonisation, the agenda of commitments has been defined by the Council in 2004 and the OECD/DAC in 2005. The Commission will now work on a concrete follow-up framework to deliver tangible results for targets and indicators agreed. In order to improve strategic coordination between the Member

28 OJ C72 of 22.05.2005, Special Report 10/2004 of the Court of Auditors on devolution

States and the Commission, a new Country Strategy Framework will be agreed with the Member States. Road-maps for in-country coordination aiming at reduced transaction costs and more effective aid will be put in place and followed up. The Commission will also continue focussing its assistance on a more limited number of sectors per country (and per sector a limited number of activities), where this is still needed.

Improved quality support mechanisms with operational guidance and implementation strategies to provide quality standards, will remain key to improving quality. The Commission aims to screen 100% of project/programme documents through the QSGs at an early stage and at the end of the preparatory process. Thematic expertise at headquarters has meanwhile been reorganised through a thematic directorate at EuropeAid. This should help reinforce the quality of projects and programmes but should also improve support to delegations.

The Commission has introduced quality indicators on the portfolio managed by EuropeAid (see annex 6.1). These will be gradually expanded and refined, taking into account general international developments on performance indicators.

5.2. Results

Simplification of administrative procedures remains a priority. This will be done in the framework of the revision of Financial Regulations in 2007, which will define more appropriate rules for managing external assistance programmes, including cofinancing with other donors. Simplification of working methods is also followed up through a dedicated Task Force inside EuropeAid.

Devolution remains a focus for the Commission. This relates to further devolution of remaining programmes. At the same time a move towards greater use of the `decentralised' and `joint' modes of financial management with beneficiaries and International Organisations, particularly with new Neighbourhood Policy countries will be pursued.

The Commission also wants to introduce new tools to simplify relations with delegations and to support them better. It is, amongst others, considering the introduction of service level agreements which would fix annual objectives for commitments and payments and levels of support to be provided.

In terms of the further development of indicators of speed, these have been available since the start of the reform, mainly in terms of financial data and objectives. These are being improved and refined.

In a devolved environment, with eighty `field offices', information systems are the backbone of the organisation. The Commission wants to further professionalize CRIS, as a single entry-point, and interface with ABAC for both budget and EDF. It should also improve monitoring, quality assurance, and reporting.

In terms of management and control, delegations have started implementing the 24 Internal Control Standards (ICS) defined by the Commission

29

. Delegations are well

29 SEC 2001 2037/4

on track in implementing the ICS and tools have been developed for delegations, including on risk management methodology. However, further improvements are needed, in particular in the control and management of administrative expenses.

5.3. Impact

In general, better use should be made of the Result Oriented Monitoring. Although indicator frameworks have been improved, the basis of performance assessment against indicators remains to be strengthened. More remains to be done in terms of sector-level and region-level aggregated monitoring of results and impact. The effort to collect and assess MDGs-related indicators at country level should be continued and be further used for policy evaluation and CSP design.

Visibility is indirectly linked to impact. The Commission needs to improve the visibility of its aid, and especially where funds are made available through other donors (World Bank, UN, etc).

  • 6. 
    A NNEXES 6.1. EuropeAid performance indicators 2001-2004 1. Budget implementation

1.1. Commitment, contracting and payment levels ( )

Million 2001 2002 2003 2004

Budget commitments 3.641 3.877 3.918 4.268 EDF commitments 1.927 2.125 3.769 2.648 Total 5.568 6.002 7.687 6.916

Budget contracts 3.732 3.883 EDF contracts 3.062 3.038 Total 6.794 6.921

Budget payments 3.175 3.327 3.271 3.746 EDF payments 1.779 1.922 2.345 2.464 Total 4.954 5.249 5.616 6.210

1.2. Average size of commitments ( ) Million 2001 2002 2003 2004 Budget 3,7 5,3 7,9 8,2 EDF 2,9 4,7 8,5 10,9 1.3. Spread of commitments over the year : amounts committed before 30/09 ( )

Percentage 2001 2002 2003 2004 Budget 48% 58% 71% 78% EDF 38% 50% 22% 55%

  • 2. 
    Speed of implementation

2.1.Contracting on Financing Agreements (FAs) submitted to the "n+3" rule ( )

Million / Percentage 2001 2002 2003 2004 Budget

contracted on 2003 commitments (value) 879 1.431 contracted on 2003 commitments (%) 34% 56%

contracted on 2004 commitments (value) 682 contracted on 2004 commitments (%) 28%

contracted on 2005 commitments (value) contracted on 2005 commitments (%) EDF

contracted on 2003 commitments (value) 1.323 2.320 contracted on 2003 commitments (%) 35% 62%

contracted on 2004 commitments (value) 889 contracted on 2004 commitments (%) 32%

contracted on 2005 commitments (value) contracted on 2005 commitments (%) 2.2. Level of old and dormant commitments ( )

Million 2001 2002 2003 2004 Budget

Commitments before 1997 1.541 928 540 271 1997 commitments 890 586 338 1998 commitments 869 526 1999 commitments 584

Dormant commitments 899 634 505 397 EDF

Commitments before 1997 1.084 822 586 415 1997 commitments 194 156 128 1998 commitments 427 286 1999 commitments 692

Dormant commitments 389 449 255 459 For dormant commitments, no financial transaction during 24 months in relation to amounts committed after 1999

2.3. Invoices paid within 60 days and 45 days ( )

Percentage 2001 (60 d.) 2002 (60 d.) 2003 (45 d.) 2004 (45 d.) Budget 68% 69% 72% 78% EDF 81% 79% 72% 72%

  • 3. 
    Programme performance

3.1. Amounts committed for general budget support, sector budget support, and other policy support programmes ( )

Percentage 2001 2002 2003 2004 Budget

General Budget Support 3.0% 4.1% 3.1% 1.5% Sector Budget Support 6.9% 5.9% 9.5% 9.5%

Other Sector Policy Support Programme 8.5% 6.9% 2.8% 4.9% Total Budget 18.4% 16.9% 15.4% 15.9% EDF

General Budget Support 17.0% 24.9% 19.7% 17.7% Sector Budget Support 0.0% 0.0% 2.8% 4.5%

Other Sector Policy Support Programme 0.0% 13.0% 5.2% 4.6% Total EDF 17.0% 37.9% 27.6% 26.9% 3.2. Rating of project implementation performance ( )

Rating 2001 2002 2003 2004

Relevance 2.57 2.62 2.68 2.69

Efficiency 2.51 2.56 2.56 2.61

Effectiveness 2.67 2.69 2.72 2.72 Impact 2.59 2.62 2.70 2.73

Sustainability 2.55 2.60 2.70 2.65 Average 2.58 2.62 2.67 2.68

Average ratings are based on project scorings through the ROM system. Ratings are: 4 (very good); 3 (good); 2 (some problems); and 1 (major problems). A project is considered to be `on track' at a value of 2.5. The average ratings are based on the five criteria presented here and on many sub-criteria. ROM does not yet cover sector and budget support activities. In 2004, 903 projects were monitored for a value of 7 056 million.

3.3. Percentage of projects performing well or with minor problems ( )

Percentage 2001 2002 2003 2004 Projects on track 83% 88% 90%

The percentage of projects performing well or with minor problems are those that are expected to achieve planned results. It excludes all projects which have at least one 'major problem' relating to any of the five criteria presented under 3.2.

3.4. Quality Support Groups' screening of operations ( )

Percentage 2001 2002 2003 2004

Number of operations reviewed 27% Committed amounts reviewed 36%

  • 4. 
    Organisational aspects

4.1. Portfolio managed by Delegations ( )

Percentage 2001 2002 2003 2004

Budget (geographical) 65% 76% 81% Budget (thematic) 52% EDF 24% 64% 79% 4.2. Additional staff in Delegations for devolved management of assistance ( )

Number 2001 2002 2003 2004

Officials (cumulative) 35 101 181 310

Other staff (cumulative) 150 311 595 994 Total 185 412 776 1.304

Data provided by DG RELEX/K 4.3. Staffing levels at EuropeAid Headquarters ( )

Number 2001 2002 2003 2004 Officials 887 953 834 745

Other staff 516 405 436 331

Total 1.403 1.358 1.270 1.076 including frontloading of 10 C-posts and transfer of unit AIDCO/G/7 to RELEX/K 4.4. EuropeAid Headquarters vacant posts ( )

Percentage 2001 2002 2003 2004 Officials 12,4% 4,8% 3,7% excluding reserve

6.2. Commitments by OECD/DAC members and EU on aid effectiveness Indicators of Progress to be measured nationally and monitored internationally

OWNERSHIP TARGETS FOR 2010

1 Partners have operational development strategies -- Number of countries with national development strategies (including PRSs) that have clear strategic priorities linked to a medium-term expenditure framework and reflected in annual budgets. At least 75%* of partner countries

ALIGNMENT TARGETS FOR 2010

2 Reliable country systems -- Number of partner countries that have procurement and public financial management systems that either (a) adhere to broadly accepted good practices or (b) have a reform programme in place to achieve these. Target for improvement to be set by September 2005

3 Aid flows are aligned on national priorities -- Percent of aid flows to the government sector that is reported on partners' national budgets. 85%* of aid flows reported on budgets

4 Strengthen capacity by co-ordinated support -- Percent of donor capacity development support provided through co-ordinated programmes consistent with partners' national development strategies. Target for improvement to be set by September 2005

5 Use of country systems -- Percent of donors and of aid flows that use partner country procurement and/or public financial management systems in partner countries, which either (a) adhere to broadly accepted good practices or (b) have a reform programme in place to achieve these. Target for improvement to be set by September 2005

6 Strengthen capacity by avoiding parallel implementation structures -- Number of parallel project implementation units (PIUs) per country. Target for improvement to be set by September 2005

7 Aid is more predictable -- Percent of aid disbursements released according to agreed schedules in annual or multi-year frameworks. At least 75%* of such aid released on schedule

8 Aid is untied ­ Percent of bilateral aid that is untied. Continued progress HARMONISATION TARGETS FOR 2010

9 Use of common arrangements or procedures -- Percent of aid provided as programme-based approaches At least 25%*

10 Encourage shared analysis -- Percent of (a) field missions and/or (b) country analytic work, including diagnostic reviews that are joint. Target for improvement to be set by September 2005

MANAGING FOR RESULTS TARGET FOR 2010

11 Results-oriented frameworks ­ Number of countries with transparent and monitorable performance assessment frameworks to assess progress against (a) the national development strategies and (b) sector programmes. 75%* of partner countries MUTUAL ACCOUNTABILITY TARGET FOR 2010

  • 12. 
    Mutual accountability -- Number of partner countries that undertake mutual assessments of progress in implementing agreed commitments on aid effectiveness including those in this Declaration. Target for improvement to be set by September 2005
  • * 
    These figures will be confirmed or amended by September 2005.

Paris 02.03.2005

Second High level Forum on the effectiveness of aid

EU additional commitments

The EU commits itself to work towards the following overall targets:

· To provide all capacity building assistance through coordinated programmes with an

increasing use of multi-donors arrangements

· To channel 50% of government-to-government assistance through country systems,

including by increasing the percentage of our assistance provided through budget support or Swap arrangements

· To avoid the establishment of any new PIUs (Programme Implementation Units)

· To reduce the number of un-coordinated missions by 50%.

6.3. Evaluation results

This list contains all evaluation results of 2004. Each individual evaluation may cover operations carried out over a period of ten years, depending on the programming cycle. Following OECD/DAC guidelines, evaluations are made by independent experts and the conclusions and recommendations may, therefore, not necessarily reflect the Commission's view.

Country Level Evaluations

Egypt: The strategy has been in line with Government of Egypt's objective of economic and political stability. Achievement of objectives has been mixed. The predominance of larger Technical Assistance projects has led to problems of ownership and low disbursement.

Honduras: Despite the demonstrable relevance of co-operation during the period under evaluation, only limited results were achieved. This was mainly because of a tendency to split support into a large number of actions and lack of dialogue with local actors.

Ethiopia: The Commission has made important contributions to development in Ethiopia, despite war situation and constraints. The Commission has notably contributed in the areas of economic reform, institutional capacity in the transport sector and access to and supply of food.

Lesotho: The evaluation finds that EC has in many cases done things well especially in the areas of infrastructure. The Commission has notably contributed to the transport sector, water and sanitation, technical assistance to economic planning and the health sector.

Regional Level Evaluations

Mercosur: EC strategy was not very supportive of the model of integration which MERCOSUR had agreed upon. Trade assistance has been very effective in

facilitating commercial flows and market expansion for MERCOSUR as well as facilitating trade among its Member States. However, protectionist EU policies have limited the export capacity and performance of MERCOSUR.

CARDS: EC CARDS assistance made a significant contribution to reconstruction in the Western Balkans, and it remains relevant in the context of the goals of the stabilisation and association process. Both the devolved implementation models for CARDS assistance, the European Agency for Reconstruction (EAR) and the devolved Delegations, have strengths which should be capitalised upon.

Sector Level Evaluations

Population and Development: The Commission's approach to population is coherent with the programme of action adopted at the International Conference on Population and Development (ICPD Cairo 1996). The visibility of the Commission's action is however not commensurate with its contribution.

Transport: Significant progress has been made by the Commission towards a sectoral approach in many ACP countries. However, this progress is not sufficiently reflected in other regions. In some countries and regions, an imbalance in types of support remains, resulting in a lack of appropriate attention to institutional and legislative accompanying measures, as well as to the maintenance of existing infrastructure. Monitoring of impact and results has not been systematically done.

Trade-Related Assistance (TRA): The Commission has not systematically and strategically addressed the issue of trade in development cooperation. A reactive approach, responding to partner countries' demands, has been applied. However, Commission TRA has resulted in improved knowledge and awareness of traderelated issues in the central institutions of partner countries. The rigidity of Commission procedures has delayed implementation and negatively affected efficiency.

Food Aid and Food Security: Food Aid management and special operations in support of Food Security shows that the various instruments offered by the EC regulation are appropriate and flexible to promote a continuous transition from emergency relief to development. The report indicates that the efficiency of indirect food aid and food security operations is not yet at a sufficient level.

Environment and Tropical forests: Both regulations are coherent with the relevant EC frameworks and authoritative international regimes. The high degree of policy coherence provides a prerequisite for environmental mainstreaming and donor coordination. By contrast, procedural restriction following the implementation of the existing financial regulation reduces the Commission's discretion to pursue mainstreaming activities at the global level for environment and to pursue strategic policy objectives through the forests regulation. Co-funding by other donors tends to obscure the EC's role as a major donor.

6.4. External assessments of EC aid delivery OECD/DAC Peer-Review, 2002 and 2004

The review of 2002 shows: (i) a marked improvement in development strategies and in development policies, compared with 1998; (ii) a confirmation that the reform as started in 2000 is important, but that measures should be taken to attain its objectives; (iii) a clearer focus on the fight against poverty; (iv) better programming and management of development policies; and (v) more coherence between policies.

These positive results are confirmed during the mid-term Peer Review of 2004, where the DAC welcomes the ambitious internal reforms. It comments on the overall size as third largest donor in the world and the significance and complexity of the EC aid effort. The DAC confirms that a great deal of practical actions has taken place since the Peer Review of 2002, and this in line with the reforms instituted in 2000. The DAC comments on the impressive results in terms of indicators such as disbursements, reduction of dormant commitment sand payments. However the DAC also notes that simplification and harmonisation is still needed and that a right balance and skill-mix between headquarters and the field still needs to be achieved. The DAC also states that even though the strategic framework of the development policy of 2000 is clear in its objectives, more focus on poverty reduction and eradiction is needed, especially outside the African region. The Commission should also involve Parliament and Council at a more strategic level.

Government Bill `Shared Responsibility: Sweden's policy for Global Development', Swedish Parliament-2003

`EU development cooperation has been criticized for being ineffective. Reform efforts are in progress and must continue. The Government considers continued decentralization necessary. The aim should be a single field representation for all EU institutions in the partner countries. Coordination, collaboration and policy coherence in these countries, both between the Member States, the Commission's delegations and other actors, are particularly important when it comes to increasing the effectiveness of development cooperation. It is necessary to develop common country strategies, harmonized procedures and administrative and budgetary reforms to make it easier for the partner countries to make the most of the development cooperation. Cooperation with the UN and other actors should also be improved in this connection.'

UK House of Lords, EU development Aid in Transition, April 2004

`There have been considerable improvements in the management of European Union development aid in recent years. This report considers how successful the reform programme that was started in the late 1990's has been, and what more needs to be done.(...) The reform programme has had a positive impact on aid effectiveness and it should lead to further improvements as long as the Commission retains its current self-critical approach. (...) EU aid is playing a valuable and distinctive role in helping to achieve the Millennium Development Goals.'

Even though the report notes that it is too early to evaluate clearly the impact of the reform, it mentions several qualitative and quantitative improvements, such as: `the large portfolio of old commitments that were never likely to be spent has been

substantially cleaned up'. `On average, project and programme performance was good'. 'In summary, there are a number of indications that in terms of both organizational effectiveness and results, the reform process has had a positive impact. In particular we applaud the focus on governance and Human Rights. It is our view that, taken overall, significant improvements in aid management and organizational effectiveness have been achieved, and the Commission is to be commended for its efforts.' `There is, however, more to be done if the EU's aid is to match the best. Mainly, this is a matter of intensifying and carrying to completion the reforms that are currently in train.'

DFID assessment on Multilateral Effectiveness, 2005

The comparative analysis carried out by DFID on the effectiveness of multilateral agencies will be repeated over a period of three years. In general, the Commission receives good marks in the comparison, as an organisation having gone through a `big-bang reform', with a focus on partnerships and progress in the field. It is placed before the cluster of development banks and the UN agencies, but after the World Bank and the UNDP (assessed separately). The Commission ratings are systematically higher than the average, especially concerning partnerships with other donors and its focus on results. It is less well rated for internal performance such as quality assurance, operational management and staff management. The Commission is among those agencies with a clear commitment to improving.

SPA survey on Donor Budget Support, 2005

In 2004, for the second consecutive year, the Strategic Partnership with Africa (SPA) carried out a survey on alignment of budget support programmes with national processes. This survey covered 15 African countries and all budget support providers (IMF, WB, ADB, EC and 14 bilateral donors). It covered a total of $ 2 500m committed in 2003. A particularly interesting and innovative feature is the ranking of donor behaviour: each African government was asked to rank from 1 (low) to 5 (high) the donors providing budget support to their country, on a set of specific issues (disbursing on time, reducing number of missions, etc). Overall, the EC scored best of the multilaterals but lower than most bilateral donors. Particularly, it ranked better than other multilaterals on issues of alignment and harmonisation (number of missions, alignment with PRS process). In terms of predictability, the lowest grade received by the EC is about disbursing on time. However, it received the highest grade for providing information on time for future disbursements. In terms of late disbursement, the EC performs better than WB and IMF but worse than bilateral donors (on average 21% of funds disbursed late in 2003). More than 80% of EC responses identified difficulties with disbursement because of administrative problems and partner government delays.

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