ANNUAL PERFORMANCE REPORT. April 2006

Transcription

1 2005 ANNUAL PERFORMANCE REPORT. April 2006

2 Ministry of Foreign Affairs of Denmark Danida Publisher: Quality Assurance Department, KVA Ministry of Foreign Affairs of Denmark 2, Asiatisk Plads DK-1448 København K Denmark Phone: Fax: um@um.dk Internet: Design: Ministry of Foreign Affairs of Denmark Print: Ministry of Foreign Affairs of Denmark Photos: Mikkel Østergaard (cover + p.14, 21, 27, 29, 37, 59, 62, 63), Jørgen Schytte (p.10, 31, 39, 40, 41, 45, 47, 50, 52, 55, 56), Britt Lindemann (p.19), Heine Pedersen (p.65), Jens Honoré (p.9). The publication can be downloaded or ordered from: ISBN: Print version: Internet version: This edition closed for contributions March 2006

3 Contents SUMMARY 5 INTRODUCTION 9 1 MEASURING BILATERAL DEVELOPMENT COOPERATION The context in programme countries Alignment and harmonisation efforts in the country programmes Assessment of progress at country-programme and programme level Assessment of the management of country programmes Perspectives MEASURING MULTILATERAL DEVELOPMENT COOPERATION Introduction General findings across organisations Assessment of the performance of key organisations 46 World Bank 46 European Commission 49 UNDP 51 UNFPA 54 IFAD 55 WFP 57 UNAIDS Perspectives AID MANAGEMENT GUIDELINES & COMPETENCE DEVELOPMENT Aid Management Guidelines Competence Development 64 Annex 1. Tools used to measure performance 66 Annex 2: Overview of Performance Management Framework 68 Annex 3: Performance reviews conducted to date 70 Annex 4: Paris Declaration - agreed targets for the 12 indicators of progress 71 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 1

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5 ABBREVIATIONS AfDB AIDCO AMG ADB BFT CAS CEA CDF DAC DCCD DfID DIIS DKK EC EU EVAL HQ ICRC ICT IDB IDP IFAD JAS KVA MDG MEFF MFA MOPAN MYFF OCHA OECD OED OHCHR PCR PDB PFM PMF PRS(P) RBM SEA SPS SWAp UBW UDV UN UNAIDS UNDP UNEF African Development Bank Europe Aid Cooperation Office Aid Management Guidelines Asian Development Bank Technical Advisory Services Country Assistance Strategy Country Environmental Analysis Comprehensive Development Framework Development Assistance Committee Danida s Centre for Competence Development Department for International Development Danish Institute for International Studies Danish kroner European Commission European Union Evaluation Department Headquarters International Committee of the Red Cross Information and Communication Technology Inter-American Development Bank Internally Displaced People International Fund for Agricultural Development Joint Assistance Strategy Quality Assurance Department Millennium Development Goals Multilateral Effectiveness Framework Ministry of Foreign Affairs of Denmark Multilateral Organisations Performance Assessment Network Multi-Year Financial Framework United Nations Office for Coordination of Humanitarian Affairs Organisation for Economic Co-operation and Development Operations Evaluation Department (World Bank) Office of the High Commissioner for Human Rights Programme Completion Report Programme and Project Data Base Public Financial Management Performance Management Framework Poverty Reduction Strategy (Paper) Results Based Management Strategic Environmental Assessment Sector Programme Support Sector Wide Approaches Unified Budget and Work programme Policy Department United Nations Joint United Nations Programme on HIV/AIDS United Nations Development Programme United Nations Environment Programme Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 3

6 UNFPA UNHCR UNICEF UNJLC UNWRA VPA WFP WHO United Nations Fund for Population Activities United Nations High Commissioner for Refugees United Nations Children s Fund United Nations Joint Logistics Centre United Nations Relief and Work Agency for Palestine Refugees in Near East Annual Business Plan (Danish abbreviation of Virksomhedsplanlægningsaftale ) World Food Programme World Health Organisation 4 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

7 SUMMARY In March 2005, Denmark, along with other donor and partner countries, endorsed the Paris Declaration, which committed countries to managing and implementing aid in a way that focuses on the desired results and uses information to improve decision-making. This is the spirit in which this Annual Performance Report the third of its kind - presents and discusses the results, progress and constraints of Danish bilateral and multilateral development cooperation experienced during The presentations and discussions in this report are set within the Performance Management Framework, which prescribes a range of tools for bilateral and multilateral performance assessment. Embassies, multilateral Representations and departments in the Ministry of Foreign Affairs have contributed substantially to generating information, and have commented extensively on the analyses and syntheses prepared. The report supplements Danida s Annual Report by focussing on performance management issues. With a view to identifying possibilities for improving the various tools applied in the future, it takes a critical look at the information reported. Whereas the 2004 report described the results-measurement system for Danish development cooperation as incipient, it is fair to conclude that it has now taken root among Embassies, multilateral Representations and departments at headquarters. There is still room for improvement as regards refinement of the tools, quality assurance of the information generated, and use of the data to present aggregate results at the corporate level, but the basic framework is in place. Management and the various units of the Ministry have started to perceive the information not only as documentation of performance for an external audience, but also as highly useful background information aimed at substantiating management decision and generating learning across the organisation. The following is a brief presentation of key findings and challenges relating to the bilateral and multilateral development cooperation, respectively. More elaborate summaries and perspectives are found in the end of chapter 1 and chapter 2 (section 1.5 and 2.4). Key findings concerning bilateral development cooperation Overall performance of bilateral development cooperation is satisfactory, reflected in 83% of the 316 indicators in Annual Business Plans deemed to be achieved at a satisfactory or very satisfactory level. This result is in line with the assessments for 2004, when 81% of indicators were attributed the same level of satisfaction and above the 80% which is - as a rule of thumb - considered adequate for bilateral development cooperation. The conclusion is supported by other available information. The alignment of Danish aid flows on national priorities, one of the 12 indicators in the Paris Declaration, is on the right track. Reporting from the Embassies suggests that a third of them already meet the Paris goal for 2010 of having 85% of bilateral assistance in partner countries reported on the national budget. 13 of the 16 Embassies have reported satisfactory or very satisfactory progress in the overall picture of donor harmonisation. The Embassies provide a range of examples of harmonisation initiatives. Although highly different conditions for alignment and harmonisation exist in partner countries, Embassies efforts matter as well. Performance reviews find that a concerted effort by Embassies to improve alignment with national partner structures and procedures can generate substantial results even under difficult conditions. Achievements vary between the sectors: concerning context-related issues such as the policies of partner governments, a higher proportion of satisfactory ratings are found in the social sectors and water than in agriculture and governance. Looking at programme-related questions such as the achievement of programme objectives, the level of satisfaction is highest in agriculture programmes and lowest in governance programmes. Achievements concerning cross-cutting issues gender equality, environment, and human rights & democratisation - are mixed. While examples of good practice have been identified in many programmes, more can be done to ensure that these issues are considered in both the preparation and the implementation of all Danish-supported programmes. Performance reviews have found improvements in some of the areas relating to the management of country programmes identified as weaknesses in the 2004 report. These include a better description of the internal organi- Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 5

8 sation of the Embassies, more attention to the use of local programme officers competences and the development of a shared vision among the staff for the future of the country programme concerning key issues, such aid modalities, donor harmonisation, and use of advisers. Main challenges relating to bilateral development cooperation Key findings concerning multilateral development cooperation The organisations goal- and target-setting is generally rated as satisfactory. Among the seven organisations particularly looked at in this report, UNFPA and UNDP are seen to have advanced the most. Improving harmonisation and alignment, replacing the still widespread separate Danish programme funding with joint funding arrangements, reducing the number of parallel implementation structures, (i.e. structures established to implement Danish-supported activities outside existing government or other partner structures), and further aligning aid flows with partner countries budget process. Establishing Danish baselines for the Paris indicators and monitoring of these. Focusing Danish-supported activities even more by limiting the number of intervention areas in the country programmes (i.e. withdrawing from some of the sectors hitherto supported) and reducing the number of components and sub-components in sector programmes. Formulating specific objectives for cross-cutting issues in all programmes. Ensuring that gender equality is incorporated not just in the programme design but also in the actual implementation. Ensuring that environmental concerns are considered in all sectors, and not only associated with environmental risks but also with opportunities. Ensuring that not only participation and decentralisation, but also human-rights issues are addressed both at the programme and country-programme level.in some Embassies, there is a need for the management to sharpen strategic priorities with a view to ensuring that staff resources are spent on the most important activities. In the medium term, adjusting the competence mix in some Embassies to accommodate the increasing integration of Danish development assistance into national institutions and systems. This will particularly require in-depth knowledge of national financial management systems and greater understanding of institutional development issues. Many organisations have either recently concluded organisational reforms or are in the process of reforming. A recurring statement found in assessments is that continued efforts are needed to strengthen the process of implementing or adjusting existing results-based management systems. Although Embassies, multilateral Representations and MFA departments express general satisfaction with the efforts of multilateral organisations in support of harmonisation and alignment, in many cases, improving the support for PRS processes and stepping up harmonisation represent a substantial challenge. This issue is particularly raised by Danish Embassies in relation to the World Bank and EC, whereas the assessment of UNDP on this dimension is more positive. 6 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

9 Country-level presence is highlighted as an issue in relation to several of the organisations, including the World Bank, IFAD, WFP, and UNAIDS. While the World Bank is considered a leading actor in development policy and cooperation, according to the assessment, further decentralisation is needed, both by moving more staff from headquarters to country offices and by strengthening decision-making powers at the country level. Selectivity and focus of activities is discussed in relation to some of the smaller organisations. While the activities of IFAD are found relevant, there is concern that its agenda has become too broad. In some cases, divergent views are held by the Danish unit responsible for cooperation with the multilateral organisation and the Embassies, just as assessments of the same organisation may differ substantially among Danish Embassies, reflected in ratings by Embassies covering the full scale from unsatisfactory to very satisfactory on the same dimension of the organisation s performance. This shows that great care should be taken when using such assessments to draw conclusions about the performance of a particular organisation, while comparisons between the organisations are even more difficult to make. Main challenges relating to multilateral development cooperation The single most important challenge for performance assessment in relation to multilateral development cooperation is to support the strengthening of the organisations results-based management and evaluation systems with a view to gradually relying on performance information produced by the organisations themselves. While waiting for reliable and high-quality information to be produced by the organisations, further development of the framework for assessing multilateral development performance and refinement of the various assessment tools remains an important task. In many cases improving harmonisation and support from multilateral organisations for the PRS process is the dimension most important for Embassies and Representations to monitor closely. Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 7

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11 INTRODUCTION The Annual Performance Report 2005 documents results, progress and constraints in Danish development cooperation. The report draws on the various tools designed to measure the performance of Danish bilateral and multilateral development cooperation, but does not intend to paint a complete picture. Rather it strives to take stock of progress and highlight some of the issues that will have to be addressed in the future in order to keep raising the quality and effectiveness of development cooperation. The reporting on performance is a work in progress and still novel for most development partners. This year s report has been improved by presenting the results thematically, replacing the practice in previous years of quoting the findings generated by each of the specific instruments used. work helps Danida and partners to strengthen the effectiveness of policies and programmes. Ulla Tørnæs Minister for Development Cooperation April 2006 The report is produced within the comprehensive Performance Management Framework (PMF) for Danish development cooperation. The objectives pursued by the PMF are to: Enhance the quality of Danish development cooperation through stronger focus on results; Improve management and continuous learning, through better information and reporting; Strengthen accountability through performance assessments and measurement in the context of an increasingly decentralised management structure. The framework is linked to the wider reform of the management of Danish development cooperation, which also encompasses far-reaching decentralisation of bilateral and multilateral aid. It is inspired by the growing international focus on setting goals and objectives for development cooperation, drawing on the Millennium Development Goals (MDGs), and subsequent international agreements at conferences in Monterrey (on Finance, 2002), Rome (on Harmonisation, 2003), Marrakech (on Managing for Results, 2004) and Paris (on Aid Effectiveness, 2005). Systematic focus on results optimises aid effectiveness. Performance information creates a basis for timely and relevant decisions and/or corrective action at all levels in Danida, thus improving the internal management and the decisionmaking process. By encouraging the formulation of clearer objectives, better documentation of results and systematic monitoring of progress towards achieving these, the frame- Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 9

12 THE BILATERAL TOOLBOX In order to measure bilateral development cooperation, a series of tools are used, combining quantitative and qualitative information. For the purpose of this report, the key tools are: Annual Business Plan (VPA, its acronym in Danish) is an annual results contract between each Embassy and MFA, defining the results to be achieved by the Embassy on an annual basis. The Plan lays down annual indicators for programme development and sets targets for commitments and disbursement, unsettled accounts and activities. Country assessments present the Embassies own view of overall progress in their respective country programmes. They look into the progress towards achieving overall objectives of country strategies, objectives relating to cross-cutting issues and priority themes, harmonisation and alignment objectives, and progress in each of the major programmes. Programme assessments are made jointly between the review team leader and the Embassy after reviews of all major programmes. These examine the progress towards achieving programme objectives, objectives relating to cross-cutting issues and priority themes, and harmonisation and alignment objectives. Performance reviews assess whether each country programme and its management, including financial management, are on track with regard to stated goals, plans and procedures, issuing recommendations on any adjustments required. Performance reviews are the key quality assurance instrument to assess whether PMF tools are used consistently. Qualitative tools will often be based on perceptions, with all the caveats that this entails. However, combining an array of tools and avoiding reliance on a single source serve to strengthen the usefulness of collected information. Substantial efforts have been made to quality assure the information provided by Embassies, and a significant improvement in data quality, particularly in country assessments, has been observed from 2004 to Other tools have also been applied within the Danish Performance Management Framework, inter alia; country strategies, minutes of High-Level Consultations, results contracts, day-today monitoring, participation in PRS monitoring, evaluations, programme and project completion reports. These are all described in Annex 1. The rating system uses the following four scores: Rating a Definition Very satisfactory. No need to adjustplans and strategies. b Satisfactory. Minor problems may arise and small adjustments may be necessary. c d Less satisfactory. Adjustments to plans and/or strategies are necessary. Unsatisfactory. The relevance/sustainability of the activities is in jeopardy. Major adjustments/re-organisations are necessary. 10 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

13 1 MEASURING BILATERAL DEVELOPMENT COOPERATION 1.1 The context in programme countries Introduction Programme countries are spread across three continents (Africa, Asia and Latin America). Although all are developing countries with widespread poverty, geography is not all that separates them. They also present vast differences in terms of economy, culture, political systems, history and people. Consequently, the context of development cooperation also varies widely between the countries. Examples from different parts of the world throughout the text are meant to illustrate the various contexts in programme countries as well as the efforts of Embassies to manoeuvre in these environments. Accordingly, when measuring progress in the bilateral development cooperation, it is important to distinguish clearly between the effects of the overall framework or context for the programme and the results achieved directly through Danish-supported interventions. Unsurprisingly, progress achieved in development cooperation is strongly correlated with a favourable framework for the intervention. However, the report also presents examples from programme countries where intense efforts in certain areas have succeeded in overcoming unfavourable conditions, for instance weak government leadership, unpredictable politics, or poorly developed national strategic framework for alignment and donor harmonisation. The following findings are based mainly on an analysis of the country assessments submitted by the Embassies in October 2005 and on performance reviews 1 undertaken at Embassies managing major programmes of Danish development cooperation in In 2005, 16 Embassies 2 reported on the progress of the country programme by preparing a country assessment, and six performance reviews were undertaken (in Bangladesh, Bolivia, Burkina Faso, South Africa, Uganda, Vietnam). Three of these reviews were undertaken at the Embassy for the first time (Bangladesh, South Africa, and Vietnam), while the other three were conducted for the second time. The first round of performance reviews focused on the Embassy s overall management of the country programme and on assessing the general framework for harmonisation and alignment, including the PRS and the conditions for applying different aid modalities. The second round of performance reviews continues the assessment of country-programme management. Greater attention is paid to the alignment and harmonisation agenda, with an in-depth assessment of constraints, progress and opportunities regarding donor harmonisation and alignment within the country programme, as well as of the Embassy s own efforts to apply the most suitable aid modalities. During the review, the Embassy prepares a country-specific harmonisation and alignment action plan. Government framework, including Poverty Reduction Strategies The national PRS or similar nationally-defined policy frameworks for poverty reduction are key entry points for Danish development cooperation. The strategies typically set the present and future agenda for political dialogue, the programming and type of interventions, the level of harmonisation among donors, and monitoring and evaluation of the results. The government framework for alignment with national structures and harmonisation varies considerably between the programme countries. In the country assessment, 14 Embassies have rated the progress in the PRS process as satisfactory, while two Embassies have rated it less satisfactory. These assessments resemble those for In each of the past two years, most of the Embassies have applied similar ratings to the progress achieved. Many programme countries have experienced noticeable progress and improvements in the area of public financial management over the last couple of years, which allows for exploring the chances of new modalities in the form of budget support as well as for aligning more with the partner country s own financial management systems, wherever possible. Public accounting standards in line with international practice are being widely introduced, and more reliable management information systems are being set up to strengthen the monitoring of public expenditure at all levels. 1 See the bilateral toolbox on previous page, or Annex 1 for a more elaborate description of the performance reviews. 2 The following 16 countries are included in the assessment: Bangladesh, Benin, Bhutan, Bolivia, Burkina Faso, Egypt, Ghana, Kenya, Mozambique, Nepal, Nicaragua, South Africa, Tanzania, Uganda, Vietnam, and Zambia. Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 11

14 Box 1: The national strategic framework differs between the countries The national strategic framework in Uganda is unique, as both the PRS and sector strategies in all areas of cooperation with Denmark are in place. National ownership of the planning process is also substantial. With regard to the framework for alignment, Uganda provides an inspiring example for other countries in Africa. In Tanzania, a new PRS was launched in 2005, and the implementation framework is under preparation. The process has been highly country-driven, and the content of this second-generation PRS is widely considered to represent an improvement, with a strengthened system for results monitoring. In Bhutan, the Embassy reports a decline in its assessment of progress in the PRS process, as the 5-year plan appears to be rather weak concerning monitoring and evaluation of poverty reduction. In Vietnam, the PRS (called CPRGS) has been integrated into the national 5-year plan, which is also promising more local ownership and commitment for the implementation of the poverty plan. In Burkina Faso, the national strategic framework is relatively well developed, despite the limited capacity of many government institutions. This reflects a concerted effort to initiate and carry forward a comprehensive PRS process, and the PRS and its linkage to other plans has gradually improved. In Kenya, the PRS process has moved from less satisfactory to satisfactory after the Government conducted a review of the poverty strategy, which is described as a significant move in the government s planning process. It is, however, also pointed out that there is an urgent need for sector-specific strategies to support the general planning process. In Bolivia, the situation is quite different. There is presently no PRS in place, but compared to many other Danida programme countries, Bolivia has relatively well-defined policies within a number of important areas relevant to Danish-Bolivian cooperation. Donor framework and harmonisation Denmark has endorsed the Paris Declaration of 2005 on Aid Effectiveness and is committed to its objectives regarding ownership, harmonisation, alignment, managing for results and mutual accountability as well as to the additional commitments formalised by EU in November 2005 (see box 5). It reflects wide international agreement that the key elements in the pursuit of the Millennium Development Goals are local ownership of, and responsibility for, the development process, as well as strengthening of capacity in the developing countries administrations through alignment and harmonisation of development interventions, including donor coordination and predictability (long-term commitments) in development assistance. also considered, as they are concerned with the framework for donor harmonisation and progress in the country strategy. The overall picture of donor framework and harmonisation shows improvements compared to In 2005, 13 Embassies have reported progress as being very satisfactory or satisfactory and fewer Embassies, compared to 2004, have categorised the situation in their respective country as less satisfactory. In general, the conditions for donor harmonisation in the various countries are more favourable when government leadership is strong. In 2005, 16 Embassies have reported on progress regarding donor coordination, alignment and harmonisation. The ratings refer to both the overall framework in place and to specific progress achieved in the country programme in the area of alignment and harmonisation. To supplement the overall picture, results from the performance reviews for 2005 are 12 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

15 Box 2: Marked differences in conditions for donor harmonisation In Uganda, the Government continues to display willingness and capacity to coordinate donor interventions, and almost all sectors have set up joint donor-funding arrangements. A joint evaluation of the Plan for Modernisation of Uganda s agriculture was conducted in 2005, and exemplifies harmonisation efforts in evaluation (see box 6 on current trends in evaluation practices). In Kenya, the situation has improved considerably in 2005 as a result of changes in the political climate. The Government is now regularly inviting donors to meetings, and efforts are underway to improve coordination of line ministries. In Burkina Faso, donor coordination has traditionally been led by the donor community, but is now increasingly acknowledged by the Government as its responsibility. In Bolivia, donor coordination has not been a top priority for the transitory government due to social unrest. The government presented a national harmonisation action plan in early 2005, but the initiative has not been followed up. Bangladesh and Vietnam have maintained the rating less satisfactory applied in both 2004 and In Bangladesh, the low ratings springs from the Government s failure to assume a lead role regarding donor coordination. However, the Embassy also points to positive aspects. In November 2005, the Government decided to chair the PRSP meeting and demonstrated increased leadership in coordinating support towards mitigating the effects of the flood. In Vietnam, an action plan for follow-up on the Paris Declaration served as a positive step towards better framework for donor harmonisation which previously largely has been donor driven. Apart from this, the Poverty Reduction Credits and a few other joint funding arrangements, however, the harmonisation agenda has not yet developed very far in practice. Progress in governance and anti-corruption Embassies generally assess overall progress in governance and anti-corruption in 2005 to be satisfactory (10 out of 16 reported so). Five Embassies (Bolivia, Nepal, Burkina Faso, Mozambique and Tanzania) found the progress less satisfactory, while Bangladesh rated it as unsatisfactory. Compared to 2004, progress is seen as more limited, as only three Embassies (out of 16) found the development less satisfactory in In Bolivia and Nepal, both overall progress and PRS progress are viewed as less satisfactory. This seems to bear out the connection between good governance and a favourable framework for implementation of the country strategy. 1.2 Alignment and harmonisation efforts in the country programmes Reporting on harmonisation and alignment efforts in the country assessments is more specific in 2005 than in previous years. Moreover, during 2005, performance reviews have assessed six country programmes (Bangladesh, Bolivia, Burkina Faso, South Africa, Uganda, and Vietnam) to gain a clearer understanding of the constraints, progress and opportunities regarding donor harmonisation and alignment. Where possible, findings in the following are related to the preliminary Paris Declaration indicators. Although national frameworks for alignment and harmonisation in the six countries visited are found to vary widely, efforts to align Danish programmes with national policies and procedures are pursued by most Embassies. In all the countries reviewed in 2005, there are poverty plans or strategies serving as overall planning platforms for Danish cooperation. Where the Danish country strategy has been revised after 2003, it has objectives and indicators for alignment to national plans, and there is an outline of how to achieve the goals of alignment and harmonisation. At all Embassies, there is willingness to explore opportunities for joint donor-funding arrangements. This may take the form of comprehensive budget support or sector budget support arrangements, joint financing of an entire programme with a large number of donors, or joint financing of specific components with a few other donors. Joint reviews with other donors (e.g. at the sector level) have been experienced as a useful means of paving the way for closer donor cooperation, sometimes resulting in subsequent joint funding of programme support. Sharing analysis and studies with other donors and harmonising donor approaches (e.g. to financial management procedures and progress reporting) are important steps to relieve partners of the sometimes considerable administrative burden associated with receiving donor support. Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 13

16 Embassies in Uganda, Bolivia, and Burkina Faso have prepared country-specific harmonisation and alignment action plans, defining targets and specific actions for gradually changing aid modalities towards closer alignment with government plans and procedures, and for closer cooperation with other donors. These plans are inspiring other Embassies, which have subsequently started the preparation of similar plans, whether prompted by the visit of a performance review mission or taking the initiative themselves. 14 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

17 Box 3: Alignment of country programmes with national structures and processes In Uganda, the country strategy defines ambitious targets for improving alignment of cooperation with government priorities, structures and procedures. According to the strategy, by 2005, 90% of the Danish support should be reflected in the national budget, and all support should be implemented through national institutions. By 2008, responsibility for all procurement under Danishfunded programmes should be taken over by Ugandan authorities. All programmes have Steering Committees for joint decisionmaking with partners. In Burkina Faso, the government has been willing to strengthen fiduciary safeguards, formulate anti-corruption and good-governance polices, and initiate other important reforms. Accordingly, Danish development assistance has been increasingly integrated into national structures. In 2005, 93% of Danish support, equivalent to all support for government institutions, is reflected in the government budget. All parallel structures have been abolished by the end of In Vietnam, where most Danish development assistance has traditionally been project-based, with considerable technical assistance provided by Danida advisers and consultants, there is a move towards more integrated activities within Vietnamese structures, involving transfer of management responsibilities to Vietnamese partners, including financial management in all new programmes. In Bolivia, despite the limitation of not knowing the specific priorities of the upcoming PRS, considerable efforts have been made to use the draft plan and existing sector strategies as the framework for formulating the priorities of Danish-Bolivian cooperation. In Bangladesh, the government s generally weak ownership of donor interventions, and relatively limited ability and willingness to take the lead in overall donor coordination, substantially hampers the alignment of the country programme. Traditionally, Danish development cooperation has mainly been delivered as projects with parallel implementation structures, but the Embassy has developed a plan to gradually increase the ownership of local partners and further integrate the cooperation, as the country s governance gradually begins to improve. Box 4: Embassies efforts to support harmonisation In Uganda, the Embassy has taken a strong role in donor coordination in 2005 and has decided recently to strengthen and focus its efforts on enhancing government ownership by reducing its participation in donor groups, where the government is not represented. In Bolivia, the Embassy has been pursuing an active role in donor coordination and harmonisation, acting as lead donor in the coordination of agriculture sector support and in the institutional reform programme. The Embassy participates in joint reviews in the education sector, in the reform programme, and in the agriculture sector. In 2005, it has concentrated on improving the division of labour between the various donors in major programmes. In Burkina Faso, the Embassy has taken a number of significant initiatives in the field of donor harmonisation. Alongside other major donors in the country, it has initiated a joint harmonisation process, and a donor-funded secretariat has been established to promote the harmonisation and alignment agenda in the country, and to review the existing division of labour between donors. In Nepal the political situation changed during The Embassy s main contribution towards donor coordination and harmonisation has been in the form of an active role in the dialogue on the process in fragile states, and through continued leadership in donor coordination in the education sector. Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 15

18 Box 5: The Paris Declaration and indicators A major event in 2005 was the endorsement of the Paris Declaration on Aid Effectiveness at a High-Level Forum in Paris on 2 March. The declaration builds upon the thinking behind the Comprehensive Development Framework (CDF) principles introduced in 1999, and the general consensus reached at the Rome Conference in 2003, advancing the agenda of aid effectiveness to what is now becoming a common approach for donors and developing countries to monitor each other s progress. Success at making aid more effective has been linked to concrete indicators and targets. The Paris Declaration3 lays down a roadmap towards improving the quality of aid and its impact on development. The 56 partnership commitments included in the Paris Declaration revolve around five key principles: Ownership Developing countries will exercise effective leadership over their development policies, strategies and coordinate development efforts. Donors are responsible for supporting and enabling developing countries ownership by respecting their policies and helping strengthen their capacity to implement them (paragraphs 14 and 15 of the Paris Declaration). Alignment Donors will base their overall support on partner countries national development strategies, institutions and procedures. For example, this means that donors will draw conditions, wherever possible, from a developing country government s development strategy, instead of imposing multiple conditions based on other agendas (paragraph 16). Harmonisation Donors aim to be more harmonised, collectively effective and less burdensome especially on those countries, such as fragile states, that have weak administrative capacities. This means, for instance, establishing common arrangements at country level for planning, funding and implementing development programmes (paragraph 32). Managing for results Both donors and partner countries will manage resources and improve decision-making for results. Donors should fully support developing countries efforts in implementing performance assessment frameworks that measure progress against key elements of national development strategies (paragraphs 43-46). Mutual accountability Donors and developing countries pledge that they will hold each mutually accountable for development results. Denmark played an active part in the process that led to the Paris Declaration in Many of the principles laid down in the declaration are at the core of Danish priorities in development cooperation. Progress at the country level will be monitored against 12 indicators of aid effectiveness (listed in annex 4) as a way of tracking and encouraging progress towards fulfilling the broader set of partnership commitments included in the Paris Declaration. An additional four commitments were made by the EU in Paris and formalised in November While these refer to Paris indicators, targets are more demanding of the donors: 1) avoid the establishment of new project implementation units; 2) reduce the number of un-coordinated missions by 50%, 3) channel 50% of government-to government assistance through country systems, and 4) provide all capacity building assistance through coordinated programmes with an increasing use of multi-donor arrangements. The OECD s DAC will coordinate international monitoring of the indicators, and a survey will be undertaken in the course of 2006 in order to establish baselines for the 12 indicators. This will be followed, in 2008, by a second round of monitoring to review progress ahead of the next High-Level Forum on Aid Effectiveness scheduled for 2008 in Accra (Ghana). 3 The full text of the Paris Declaration as well as various supporting documents can by found at the OECD s web-site under the DAC department. 16 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

19 Whilst the 12 Paris Declaration indicators will only be internationally quantified in 2006, the performance monitoring tools at hand for 2005 already give a glimpse of the extent to which Danish assistance is on track, and of the challenges ahead. Thus, in the country assessments for 2005, specific questions were asked on the general progress regarding alignment and harmonisation. The responses are especially relevant to the following indicators in the Paris Declaration: Aid flows are aligned on national priorities (indicator 3), Strengthen capacity by coordinated support (indicator 4), Use of common arrangements or procedures (indicator 9) and Encourage shared analysis (indicator 10). The Paris Declaration s indicators on harmonisation are new (definitions on all issues were not drawn up until 2006), which is why the Embassies assessments stop short of focusing directly on all relevant issues. However, based on country assessments for 2005, the following findings can be arrived at. Alignment of aid flows on national priorities is on the right track In order to measure whether aid flows are aligned on national priorities (indicator 3), Embassies have been asked to assess the proportion of the assistance that was either: 1) integrated into the national budget of the partner country (sector/general budget support only); 2) reflected in the national budget (parallel support reflected in the budget); 3) parallel support for the public sector not reflected in the national budget; or 4) support for the private sector and NGOs, not to be reflected in the national budget. The Paris Declaration suggests using the percentage of aid flows to the public sector that is reported on the partners national budget as a proxy for alignment on national priorities and, to some extent, for ownership and democracy. When foreign assistance is on the national budget, it is also under the scrutiny of the national legislature and provides for much greater transparency in aid flows. There is a distinction, however: when aid flows are integrated into the budget (first point above), funds enter the decision-making process of legislators concerning the allocation of resources, whereas aid flows reflected in the budget (second point) merely imply that the partner country s parliament or congress is informed about the (expected) availability of funds. Whilst this distinction is important, either form is seen in the Paris Declaration as a first step towards ensuring that aid flows are aligned on national priorities, as reflected in the approved national budget. The Paris Declaration s target is that 85% of all assistance should be reported on the national budget by In principle, donors should thus strive for maximising the combined share of the two first support forms identified above. It should, however, be kept in mind that support for NGOs and the private sector is also an important area of intervention, and in most partner countries not supposed to be on the national budget. Therefore, even under perfectly aligned circumstances, the proportion on the national budget will rarely be 100%. Overall, most Embassies had their activities recorded in the national budget (parallel support reflected in the budget), but the proportion varies due to differing national conditions. According to reporting by the Embassy in Burkina Faso, 93% of Danish assistance to the country is provided in this form, while figures provided by other Embassies include Uganda (77%), Bolivia (70%), Benin (65%) and Zambia (60%). As standardised international definitions were not fully in place at the time of reporting, and the above-mentioned definitions of funds integrated into and reflected in the national budget were unknown by staff at some Embassies, reservations must be made concerning the exact figures. It appears, however, that the proportion of Danish assistance that features on the national budget is high. And even when the figure is in the lower end, this will often stem from sizable support for the NGO sector (as in Nepal, where this share is 54%) or support for the private sector (40% of aid in South Africa). Ten Embassies provided general and/or sector budget support in In Nepal sector budget support accounts for 24% of the country frame, while in Uganda, 18% of the country frame is provided in the form of sector budget support. Most programme countries, however, receive a mix of general and sector budget support. Only in Vietnam (20%) is the full share of budget support namely assistance to the Poverty Reduction Credits provided as general budget support. In 2005, general budget support constituted 5% of total Danish bilateral assistance. Caution is called for here too in the interpretation of country-specific figures. With due reservation for the interpretation problems of some of the Embassies regarding the definitions used, the Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 17

20 combined figures of activities reported to be either integrated or reflected in the national budget point to most Embassies getting more than 70% of aid flows registered in the partner country s national budget, thus being on track towards meeting the Paris Declaration s target by Around a third of the Embassies are already meeting the target, with over 85% of assistance featuring in the national budget. Danish assistance promotes coordinated programme support for capacity development Regarding the indicator Strengthen capacity by coordinated support (indicator 4) and the percentage of donor-capacity development support provided through coordinated programmes consistent with the partner s national development strategies, a qualitative assessment of responses from the Embassies would suggest that this aim has generally been taken well on board. Almost all Embassies list a number of examples of how support for capacity development is carried out at present. A number of Embassies point to capacity development as a key element both at sector and overall level. It is, however, difficult to quantify the extent of capacity development. In the context of Danish development cooperation, this type of support is an integral part of main programme activities. The international reporting norms (of DAC) have yet to devise a consistent means of distinguishing the capacity element from other types of assistance. Presumably, this issue will feature prominently on the upcoming agenda. Almost all country programmes promote common donor arrangements Indicator 9 of the Paris Declaration is use of common arrangements and procedures. Given that the programme approach is a cornerstone of Danish development cooperation and has been so since 1994, the baseline measurement coordinated by OECD s DAC and to be implemented in 2006 is expected to produce a high score, fulfilling the target of 66%. While the definition of a programme-based approach is still being discussed, the following features are usually considered important: (a) leadership by the host country or organisation; (b) a single comprehensive programme and budget framework; (c) a formalised process for donor coordination and harmonisation of donor procedures for reporting, budgeting, financial management and procurement; (d) efforts to increase the use of local systems for programme design and implementation, financial management, monitoring and evaluation. Examining these composite features paints a more nuanced picture than the high score on the overall indicator would imply. On the issue of host-country leadership, government authorities are increasingly acknowledging their responsibility. In some country programmes using budget support and/or joint funding of programmes, governments have taken a strong lead (e.g. Uganda, Ghana, Tanzania and Zambia). However, many Embassies report that donor coordination and donor programmes are, to a large extent, still led by the donor community. 14 Embassies indicate that joint funding mechanisms with other donors are being used, or are even very common. The specific arrangements vary widely, ranging from single projects (e.g. the case of Bangladesh) to comprehensive budget support based on the PRS (e.g. Ghana). Shared analysis is common, but can be formalised and more efficient The indicator on Encouraging shared analysis (indicator 10) should be measured as the Percentage of (a) field missions and/or (b) country analytic work, including diagnostic reviews that are joint. The Embassies do not indicate a percentage, but rather provide information on practices for sharing analytical work among donors. 14 Embassies indicate that information and country analysis are shared. However, only rarely is this information the product of joint efforts. Instead, each donor contributes data and analysis. Nine of these Embassies seem to share the information as a result of informal and common practices, without formalising them. Two Embassies (Nepal and South Africa) mention concrete activities, where shared information have been used. Another six Embassies mention examples of joint or formalised efforts in analysis-sharing between two or more donors (Benin, Ghana, Tanzania, Uganda, Kenya and Mozambique). Though increased use of joint reviews is clearly considered by many Embassies, there is still no consistent reporting on this concern, which features as a goal per se in the Embassies results contracts for Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

21 Box 6: Current trends in evaluation practices Evaluations are increasingly prepared and carried out as joint evaluations together with the partner countries and other donor agencies. This conforms to the general trend in Danish bilateral assistance, which is being aligned as support for national sector programmes in close harmonisation with the support programmes of other donors in order to reduce partners transaction costs and avoid overlapping activities. In 2005, six out of seven completed Danish-funded evaluations were carried out as joint partner evaluations. The joint evaluation of the Plan for Modernisation of Uganda s agriculture, and the joint evaluation of the Assistance to Afghanistan, provided by five bilateral donors, are good examples of this trend. Denmark has been the lead agency in both evaluations. However, joint sector programme evaluations are still a challenge to agree upon and implement. The issues of coordination, distribution of roles among involved stakeholders, evaluation managers, and external evaluators, timing and funding are not easily resolved. While concepts and practices of regular joint reviews have been taking shape over the past years, it remains necessary to promote the value and strive for consensus concerning external and independent evaluations of sector programmes, e.g. at the end of a programme phase. In the evaluation of humanitarian interventions, joint approaches have also been frequent. In particular, the evaluation of IDP interventions (internally displaced persons) combined several individual studies, coordinated evaluations and produced an overall synthesis. The same model will be applied in the evaluation of the tsunami disaster response. Over the recent years, considerable experience of joint evaluations has been gained (see box 6). Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 19

22 1.3 Assessment of progress at country-programme and programme level Assessing the progress of country programmes The progress of country programmes is assessed within the results-measurement system established for Danish development cooperation 4. The assessment format, designed as a tool for self-assessment by Embassies, is based on: (i) a rating system, and (ii) narrative assessments, providing the main arguments for each rating. The format is designed to establish an overview for management decisions needed to meet the planned development objectives and results, i.e. where to adjust plans, strategies, etc. The assessment is thus a tool for the Embassy, but it also constitutes a key input to the annual negotiations between the Embassy and the MFA over the results contract, and it is used for reporting to the Danida Board. With a view to consolidating assessments, these self-assessment formats are examined by performance review teams and discussed with the Embassy. Country assessments have undergone a notable qualitative evolution over the last years. This has cemented the instrument s position as one of the cornerstones of the Danish Performance Management Framework. It must be emphasised, however, that the rating system does not allow for specific comparisons between countries. The rating satisfactory thus describes situations in which the Embassy sees overall progress as positive, i.e. indicating that only minor problems may arise and small adjustment may be necessary. The rating satisfactory is, however, not a given objective situation. For instance, although both Nicaragua and Ghana declare seeing a satisfactory fulfilment of general objectives in their respective country strategies, the circumstances of their respective country programmes may vary widely. Fulfilment of general objectives Most Embassies (12 out of 16) assess the overall progress of the country programme as satisfactory. Two Embassies (Burkina Faso and South Africa) rank the progress as very satisfactory, an improvement compared to last year, when no Embassy applied this rating. 4 The following 16 countries are included in the assessment: Bangladesh, Benin, Bhutan, Bolivia, Burkina Faso, Egypt, Ghana, Kenya, Mozambique, Nepal, Nicaragua, South Africa, Tanzania, Uganda, Vietnam, and Zambia. Figure 1: Fulfilment of general objectives in country strategies (%) a b Just as in 2004, Bolivia and Nepal rate the fulfilment as less satisfactory. These countries have been characterised by highly complex political, social, and economic conditions. The Embassy in Bolivia did not apply the rating due to lack of progress in the programmes, but rather because of the overall unstable framework, and because progress is weak in the political and economic reforms supported by Denmark. A new country strategy was drawn up and approved in June 2005, introducing a higher degree of flexibility in the activities by operating with various political scenarios, thus making it possible to adapt the programmes to political changes. It operates with three different scenarios and their possible implications for the country programme. Likewise, in the case of Nepal, the rating does not imply lack of progress or non-fulfilment of specific programmes, but rather the need for revision and updating of the country strategy. However, the revision process cannot be resumed unless the political situation changes. Burkina Faso has changed its progress rating from satisfactory in 2004 to very satisfactory in 2005 as the Embassy finds that greater alignment has been achieved as a result of major changes in the Danish-supported programmes. As observed in previous years, progress at the country level is mostly measured against programme and project objectives. The overall objectives of existing country strategies have yet to be translated into measurable objectives, targets and results in all programme countries. This is the starting point for the c d 20 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

23 revision of the guidelines for country strategies (second generation) in 2004, which aim, in particular i) to adapt Danish bilateral development cooperation to the national poverty reduction strategies and harmonisation efforts in programme countries; ii) to ensure better documentation of the coherence between Denmark s development policy and the choice of sector and focus areas in country programmes; and iii) to improve the basis for results-based management of Danish development activities. The ongoing introduction of secondgeneration country strategies and the introduction of joint assistance strategies (see box 8) is expected to improve results monitoring at the country level over the coming few years. Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 21

24 Box 7: Status concerning introduction of second-generation country strategies (end of 2005) Seven country strategies have been recently introduced and/or are well on course: Bangladesh ( ) Ghana ( ), Nicaragua ( ), Uganda ( ), Benin ( ) and Bolivia ( ). The country strategy for Burkina Faso, begun in 2004, has been approved in 2005 and is expected to be in force from New strategies are due in 2006 for Tanzania and Vietnam. In Tanzania the revisions exercise was started in 2004, and the intention is to prepare a joint strategy with the government and other donors. In Vietnam the process started in 2003, and a draft for the period is well advanced. So far there has been no country strategy in effect for Kenya, as Danish-Kenyan cooperation has been based on projects rather than sector programmes. However, a country strategy was presented to the Danida Board in 2005, and the strategy is expected to be in force from The preparation of two new strategies has been delayed in order to further alignment/harmonisation. In the case of Mozambique, the former strategy formally expired at the end of 2004, but to use the PRS as the strategic framework for the Danish country strategy, revision of the country strategy was postponed, and the Embassy has joined the recent initiative to prepare a joint assistance strategy. The country strategy for Zambia dates back to However, after dialogue with the government and in response to the new Zambian PRS , a process has been initiated to associate the Danish programme to a joint multidonor strategy expected to be finalised in the second half of In a number of countries, the new approach has yet to be applied for varying reasons. As the activities in Egypt are being phased out, it has been decided to extend its country strategy to the end of A new country strategy was prepared for Nepal in However, this country strategy was put on hold due to political turmoil in the country. Box 8: Joint Assistance Strategies In Tanzania, Zambia and Uganda, Denmark participates in the preparation of Joint Assistance Strategies with other donors (and in the case of Tanzania with the government), and initial preparations for a similar initiative have started in Mozambique. The purpose of joining efforts with other donors, instead of pursuing separate Danish strategies, is to increase aid effectiveness by improving the division of labour among donors, harmonising procedures, and establishing a more structured dialogue between donors and government in the partner country. The specific contents of agreements between donors and partner governments differ from one country to another, but in most cases, participation in a Joint Assistance Strategy implies that Denmark will concentrate on fewer sectors. Assessment of progress at programme level The assessment of progress in Danish-funded programmes is an important element of the performance measurement system. Results information based on self-assessments is collected systematically for programmes above DKK 30 million, using a satisfaction rating on a scale from one to four. This exercise is carried out by the Embassy and the team leader from Technical Advisory Services in connection with all reviews. The assessment system is designed to meet management needs for programme performance information in areas of critical importance to the overall goals of Danish development cooperation. Therefore, the analysis of all completed assessments should enable the identification of trends towards meeting these objectives and help pinpoint areas in need of particular attention. They constitute a key input to management decisions at the country programme level, and their quality, including the ratings, is ensured by means of discussions with the Embassies during performance reviews (see Annex 1). Assessments are made throughout the year, as and when reviews take place. In 2005, much fewer reviews took place than in 2004 because many new phases of sector programme support were initiated, and reviews are usually not conducted during the first year of implementation. The presentation below is based on 36 assessment forms against 45 last year. The assessments made in 2005 are, however, more complete 22 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

25 than in 2004, and very few questions are left unanswered this time. Among the wide array of issues of importance for managing Danish development cooperation, this year s analytical focus is on three issues. Firstly, as Danish development cooperation is favouring a sector programme approach, it is worth continuing to monitor the general progress of this support by assessing the fulfilment of programme objectives. Secondly, in the preceding chapter it was argued that programming is strongly influenced by various factors derived from the national context. This will be further explored against the background of programme assessments. Thirdly, as the mainstreaming of cross-cutting issues (gender equality, environment, and human rights & democratisation) are priorities of the Danish government, the fulfilment of objectives in these fields will be examined. Fulfilment of programme objectives There is consistency between the general satisfaction found earlier at the country level and assessments at programme level: 80% of programme assessments report satisfactory (26 reports) or very satisfactory (three reports). Seven programmes report less satisfactory progress. Figure 2: Fulfilment of overall objectives and indicators at programme level (%) less satisfactory or even unsatisfactory. Thus, the same rating used in two different countries may refer to entirely different levels of achievement. It should also be recalled that objectives defined for the programmes typically cover long periods. Therefore, a critical aspect may be the ability of identified objectives to remain relevant in the face of changes in the national setting. Keeping in mind the flux of externalities stemming from multiple factors ranging from security situation to capacity constraints an overall satisfaction rate as high as 80% signals that, generally speaking, the Danish support for programmes and sectors has been designed in a rather robust, yet flexible manner. The implementation procedures of Danish-supported programmes seem able to adjust to the externalities specific to national and sector circumstances so as to generally avoid the need for major adjustments in plans and/or strategy. Context matters: differences between sectors It was argued above that the country and sector context is a key factor in the assessment of performance. As many development practitioners have learned, even after the most elaborate and thorough programming, the specific, often unpredictable context in which activities take places may be more or less enabling. This calls for discussing the differences between sectors. For that purpose, the questions in assessment forms have been divided into two groups: one is primarily concerned with the Danida-funded programmes themselves (called programme-related questions here below), while a second addresses the sector environments of programmes ( contextrelated questions) a b c d Programme-related questions relate to the fulfilment of programme objectives and progress in terms of cross-cutting issues (gender equality, environment, and human rights & democratisation), and of the priority themes of HIV/AIDS and the private sector. As highlighted above as well as in last year s report, these ratings are not based on any uniform standard. A satisfactory rating merely reflects that the Embassy assesses that good progress has been achieved since the previous year, even though the situation, from an international perspective, might be considered Context-related questions concern sector policy, the willingness of the partner government to implement national policies, the approaches of other donors towards sector programming, and the progress towards budget support. Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 23

26 In addition, four sectors have been chosen for particular analysis, namely social sectors (health and education), the water & sanitation sector, the agriculture sector, and the governance sector. 25 of the total of 36 assessment forms describe activities in these four sectors. Figure 4 All programme-related questions (%) Looking at the sectors separately, a more complex picture emerges. By way of illustration, if all the ratings given in 2005 i.e. all questions in all sectors were combined, the distribution would be as follows: Figure 3 Overall satisfaction based on cumulative ratings (%) a+b c+d 75 Figure 5 All context-related questions (%) a b c d Adding together very satisfactory (a) and satisfactory (b), 73% of all ratings express satisfaction with the situation, while 27% (c and d) reflect less satisfactory findings. However, this method calls for caution, as individual components are not comparable. The aggregate picture of all the issues monitored at the sector level is that roughly three-quarters are progressing at a satisfactory level, while a quarter seem to merit some kind of revision. A quarter of Danish-funded activities in need of revision could be seen as problematic. However, this may not be the right conclusion. When looking separately at answers to the two groups of questions outlined above, a different picture emerges: 0 a+b c+d Clearly, the questions related to the programmes and their progress score much higher than those referring to the institutional context. On the one hand, this result underlines the well-known fact that development cooperation is provided under difficult circumstances that have to be dealt with in order to make the assistance effective. On the other hand, it may also reflect a propensity of all parties involved in development cooperation to refer to difficulties encountered as factors beyond their own control. Noticeably, among programme-related questions, satisfaction is greatest as regards the integration of the private sector and of environmental considerations and concerns (in both cases, 100% of respondents apply the rating satisfactory or very satisfactory ), followed by that of human rights & 24 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

27 democratisation (97%). The lowest ratings are given to the mainstreaming of gender equality (77%) and especially to the mainstreaming of HIV/AIDS (65%). These, in other words, seem to constitute the most difficult challenges. A supplementary interpretation of this finding is, however, that the training and awareness-raising carried out for many years on the issues of gender and HIV/AIDS have gradually made the staff particularly critical in their assessment of the progress achieved in these two fields. Among the questions related to the programme context, the best ratings are for the approaches of other donors to sector programming ( satisfactory and very satisfactory add up to 74%). This generally reflects that the main donors are involved in regular sector coordination often with reference to national sector policies and strategies, and under the leadership of the partner government. Especially in the social sectors, this collaboration typically involves basket-funding arrangements and joint sector budget support. With the present international emphasis on increased harmonisation and alignment, this figure should be expected to improve further over the coming years, indicating increased effectiveness of aid generally. Nearly the same rating ( satisfactory and very satisfactory make up 70%) is given to the quality of sector policies an important result, given the importance of sector policies as frameworks for the donors sector support. However, when looking at the willingness of governments to actually implement their policies and strategies, the assessment is somewhat less favourable (61%), hinting at the often complicated and ambiguous national political situation in which donors operate. Figure 6: Satisfaction ratings in selected sectors (%) There is a noticeable trend in the profile of the four selected sectors: a higher proportion of satisfactory ratings is found in the social sectors and water than in agriculture and governance. In addition, agriculture is the only sector with a number of unsatisfactory ratings (9%). To understand this finding, it is worth noting an important difference between, on the one hand, the social sectors as well as water & sanitation, and, on the other hand, agriculture and governance. While in the former case, the state usually plays a dominant role and leads the development, in the latter sectors, the main players are, to a large extent, privatesector actors and non-governmental organisations. This refers to farmers, their organisations, and agri-business companies in agriculture, as well as to the political parties, the press, the NGOs, etc. in the governance sector. Consequently, while the government can legitimately draft and implement strategies in the social sectors and in water & sanitation, there is less scope for such government action in the other sectors mentioned. This is, of course, fundamental for aid that is mainly negotiated between governments and mainly targeted at the public sector. Thus, the circumstances under which assistance is provided to each sector vary widely, with a much more diverse institutional environment, generally a much less organised spectre of sector players, and a less developed sector planning and implementation framework in the agricultural and governance sectors as compared to state-dominated sectors. Strictly speaking, governance is not even a sector in the same sense as the others, but rather a cross-cutting theme or area of intervention. From the viewpoint of programme-related questions, the level of satisfaction is generally high: especially in agriculture programmes ( satisfactory and very satisfactory : 91%), fol- Governance Agriculture Water & sanitation a+b c d Social Sectors Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 25

28 lowed by the social sectors and water (83 and 80%, respectively). Last comes governance with 81%. These rather high success rates could stem from a variety of factors, including the Danish programme modalities, which provide the flexibility required to continuously adjust and align to changing circumstances. From the context-related perspective, ratings are considerably higher in the social sectors and in water (in these two, the sum of satisfactory and very satisfactory account for 83% and 80%, respectively) than in governance and agriculture (44% and 39%, respectively). In the latter case, programmes are often found to be battling with their environments, as opposed to the former, which enjoy a more harmonious relationship between the aid instruments available and the characteristics of the sectors. This is captured by the fact that, as regards the social sectors and the water sector, programmerelated and context-related questions are answered with similar ratings. Given that governance is not really a sector, it is unsurprising that its lowest rating pertains to the question of sector policy. There is rarely a single policy comprising all governance issues, and frequently some of these issues are not covered by any policies or strategies at all. In agriculture, the lowest rating is given to the appropriateness of budget support, partly due to the dominance of private actors, to whom budget support is irrelevant, and partly due to risk considerations. In this light, it is understandable that agriculture and governance are among those sectors in which Danish assistance is still mostly provided in the form of projects or project-like programme components, and in which progress towards more harmonised and aligned aid forms is expected to be slowest. Fulfilment of objectives on cross-cutting issues Both country and programme assessment generally award a high score to the incorporation of cross-cutting issues. As for programme-related questions, the environment is by far the highest-rated issue. Thus, all country and programme assessments apply either very satisfactory or satisfactory in the assessment of the fulfilment of environmental objectives. Gender equality and human rights & democratisation also receive favourable scores, but with discrepancy between country and programme assessments: 94% of country assessments rate gender equality efforts as satisfactory or very satisfactory, whereas only 79% of the programme assessments use these two highest ratings. Conversely, human rights & democratisation is rated lower in country assessments (81% rate it satisfactory or very satisfactory ) and higher in programme assessments (97% use these two ratings). High gender-equality ratings in country assessments are likely to stem from the fact that Danish assistance at the country level contemplates special interventions focussing on gender equality, whereas programme assessments can only refer to mainstreaming at the level of particular programmes. Lower ratings to human rights & democratisation in country assessments may be due to these exercises focusing more frequently on human rights, which is found to be the most difficult aspect of human rights & democratisation. In most cases, programme assessments refer to the less complicated programme support for general decentralisation processes, or to the participation of various population groups in programme-supported activities. As none of the Embassies has used the rating unsatisfactory, and only a few less satisfactory ratings have been applied (one programme assessment of gender equality and three assessments of human rights & democratisation), the interest below is concentrated on the qualitative judgments. In the country assessments, these have improved in 2005 compared to those received from the Embassies in The quality of programme assessments, however, still varies considerably, and in a number of cases there is limited understanding of the questions asked concerning cross-cutting issues. It poses a particular challenge that few programmes have well-defined objectives, targets and indicators for cross-cutting issues, thus complicating the assessment of progress, which has to be based on a general impression of achievements rather than on more tangible means of verification. Fulfilment of objectives on gender equality According to the country assessments, Embassies in nine countries Ghana, Bangladesh, Vietnam, Uganda, Zambia, Nicaragua, Mozambique, Kenya and Burkina Faso have reported that gender equality is incorporated into all programmes, whereas Bolivia states that it will be incorporated into new phases of all programmes. Reports from Benin, Tanzania and Nepal state that gender analysis and/or action plans related to gender have been supported. In Egypt, 26 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

29 gender equality has been incorporated into the environmental programme. In Bhutan, a gender master plan and gender focal points are being considered. The equal-rights dimension of gender equality is directly addressed in programmes in seven countries, including the road programmes in Tanzania and Uganda, the water & sanitation programme in Vietnam, the good governance programme in Uganda, the justice sector in Mozambique (legislation), and support for the Ombudsman s office in Egypt (through legal counselling). Concerning the road programme in Zambia, equal rights are estimated to be addressed through community-based projects and gender-balanced road-user committees. The assessments do not specify exactly which rights are addressed in each programme, even though some of them follow logically from the sector context. It is also difficult to read from the assessments how equal rights are dealt with, as formulations are very general. In connection with the justice sector in Mozambique and support for the Ombudsman in Egypt, more details are presented regarding activities, but not described in rights terms. Equal access to and control over resources are, according to the programme assessments, directly or indirectly addressed in programmes in 12 countries, including health programmes in Ghana, Zambia, Mozambique and Bhutan, and water & sanitation programmes in Vietnam, Uganda, Kenya and Burkina Faso (although in many cases in rather vague terms). Girls access to education is a prominent feature and the main focus in education programmes in Nepal, Zambia, Nicaragua and Mozambique. Equal access to resources is also a concern in activities related to micro-finance and other economic activities in agriculture programmes in Vietnam, Uganda, Mozambique, Bangladesh and Burkina Faso, and in the fisheries sector of Vietnam. The assessments of the agriculture programme in Nicaragua reports that the aim is to maximise women s benefits from programme activities, but that gender equality has to be incorporated into the LFA to ensure that this actually happens. Assessments of the road programmes in Tanzania, Bangladesh, Uganda and Mozambique show a strong focus on women s access to employment. The assessment of the road programme in Nicaragua reports that gender guidelines have been put into practice with significant success in terms of women s participation in the road work. The assessment of the road programme in Zambia states that both men and women have benefited from employment as local contractors or construction workers, and that better access to social services and markets has also improved access to resources. The business sector programmes in Ghana and Tanzania have focussed on gender in relation to female entrepreneurs and small- and medium-sized enterprises. The approach to dealing with access to resources seems to be systematic in most places. In social sector programmes, gender equality in access to water & sanitation, health and education is often at the centre of attention, and has been so for some time. It appears that Denmark s longstanding experience in these sectors is paying off now, as gender concerns are well incorporated into formats for assessments, programme documents, etc. When it comes to the economic sectors, Denmark s longstanding cooperation in agriculture and fishery has made a positive impact. In the transport sector, which has only recently begun to incorporate gender concerns, a serious and systematic approach has generated positive results. In other words, equal access to and control over resources appears to have become an integral part of programming and implementation, though obviously to varying degrees, also depending on the country context, of which the Embassies are well aware. Equal opportunities for political and economic influence are addressed in programmes in six countries, e.g. in relation to membership of user committees in water & sanitation programmes in Benin and Burkina Faso, and in the road sector in Benin. In Uganda and Tanzania, opportunities for influence is promoted in the road sector through participa- Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 27

30 tory community consultations, and this is also the case in the road programme in Zambia. Moreover, the reviews of road programmes in Zambia and Nicaragua showed that women participate as members of road committees. Women s political influence is addressed in the support for participation in local elections in the decentralisation programmes in Nicaragua and Burkina Faso. The contours of three main approaches to this dimension of gender equality can be outlined: 1) membership of user and management committees in sector programmes, 2) participatory community consultations, and 3) women s participation in elections. In relation to the committees, Denmark s longstanding experience also seems to be paying off, not least after many years cooperation in the water sector with a strong focus on women s membership of water committees. Gender equality in political and economic influence is probably dealt with in more than these six countries as part of the incorporation of gender aspects in sector programmes, even though such efforts are not described in these overall assessments. Box 9: Addressing all three dimensions of gender equality (Tanzania roads) The programme is making good progress in areas of promoting gender equality. The programme follows national policy on gender mainstreaming at all levels.(i)promotion of equal rights and awareness-raising on gender issues has been part of all the road components and has been implemented along improved roads for men and women from communities along the road corridors as well as for contractors.(ii)the programme has promoted the employment of women in the road sector and evidence suggests that women s participation is increasing. Both men and women have benefited from employment as local constructors, gang leaders or as construction workers. In addition, improved access to social services and markets have also improved access to resources.(iii) Promotion of equal influence has been addressed through participatory community consultations... Tanzania, assessment of Road Sector Programme Support, Phase 2 Many accounts of mainstreaming gender equality are found in the reporting in connection with support for national plans and strategies and in relation to sector programmes. Direct assistance to the overall government level is seen, for instance, in the support for gender action plans of three ministries in Benin, to the strategic plan of the Ministry for Community Development, Gender and Children in Tanzania, a gender and social exclusion assessment in cooperation with the DfID and World Bank in Nepal, and in the consideration of a gender master plan in Bhutan. These reports leave the general impression that Danish Embassies are making considerable efforts to strengthen the gender focus of the governments of programme countries. At the sector level, accounts of gender assessments and gender action plans come from Ghana and Uganda, and gender equality is incorporated into the objectives and design of sector programmes in most countries. The exact nature of mainstreaming is difficult to detect from the often general formulations, which simply state that mainstreaming has taken place in all or most sector programmes. The general impression is of a rather strong focus on incorporating gender issues into assessments and programme design and planning, whereas actual implementation may be weaker. Some of the reviews remark on the lack of indicators and data to assess the results achieved in this area. A particular effort has been made in the transport sector, where the Technical Advisory Services, Embassy staff and advisers have succeeded in raising the general awareness and mainstreaming gender equality into programme activities. The sector policy on Transport and Infrastructure in 1999 sharpened the focus on gender equality through identification of specific support areas. Following the process of developing the new sector policy, joint missions consisting of a sector adviser on transport/infrastructure and a gender adviser from MFA and/or the Embassy were fielded, e.g. in Uganda. This model has been followed until today, for instance with a mission to Tanzania in Gender equality is an integral part of road programme reviews, and is discussed in meetings with gender focal points within government institutions, private sector (e.g. consultants and contractors), local communities and user groups. In order to compare between approaches in various countries, gender equality was on the agenda as the main topic for the Transport Sector Seminar in Subsequently, a paper entitled Gender Equality in Danida s Support to the Transport Sector: Good Practice was drafted and discussed at the Transport Sector Seminar in 2005 (see also box 9: Addressing all three dimensions of gender equality). 28 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

31 Special interventions to promote gender equality were one of the strategic priorities in Danida s target and performance management for The majority of Embassies reported that special interventions had been successfully launched in 2005, and half the country assessments make reference to special interventions 5 (Ghana, Bangladesh, Egypt, Zambia, Nicaragua, Kenya, and Burkina Faso). The assessments seem to be highly selective in the issues discussed in each country, probably concentrating on the most pressing problems to be addressed in each place, whether female genital mutilation, violence against women, bias in the legislation, political participation of women, etc. This attention to context is in line with directions in the gender strategy, which recommends basing interventions on specific needs. tion and governance programmes tend to consider the question of mainstreaming the environment as not applicable, or state that the programme has no bearing on the environment. This is also the case of some of the education programmes, which have found it impossible to assess progress with regard to the environment, whereas a few others (including the education programmes in Mozambique and Zambia) mention that this issue has been addressed by integrating environmental issues into curricular development. The reporting does not clearly state which activities rank as special interventions, but a number of activities mentioned fall outside the sector programmes, thus being classified as special interventions in this assessment. None of the reports have elaborated, in more strategic terms, on the relevance of these interventions in relation to the gender strategy s aim of creating fundamental structural changes, but such considerations may nevertheless have been substantiating the choices made. There is no account of how these activities might relate to other parts of the country programmes, or how they might contribute to the overall objectives. Fulfilment of objectives on environment According to programme assessments, progress towards the achievement of environmental objectives differs between the sectors. The road sector stands out as the sector in which environmental considerations are most thoroughly integrated into the programme design, and this makes the assessment of progress easier than in sectors where such considerations appear to feature less prominently. As for most of the road programmes assessed during 2005, it is mentioned that an environmental unit in the relevant ministry is either established on the initiative of the programme, or receives support as part of the programme. Support for the development of national environmental guidelines for road construction is another common feature of most of these programmes, and the programme assessments discuss the progress towards implementing such guidelines. As for programmes outside the road sector, observations concerning environmental aspects are less specific. Decentralisa- 5 Interventions mentioned in the assessments but not necessarily labelled special interventions. While most water & sanitation programmes focus on components for integrated water-resource management, assessments of the programmes in Kenya, Ghana and Vietnam also mention efforts made in water supply and sanitation activities. Health programmes in Bhutan, Ghana and Zambia mainly discuss environmental concerns in relation to hospital waste management. The issue of occupational health and safety is mentioned in the assessment of the business sector programme in Ghana and the skills development programme in South Africa, while the issue of environmental protection in relation to industrial production features only in the assessment of the fishery programme in Vietnam. Assessments of progress towards environmental objectives are surprisingly brief in most assessments of agriculture programmes, which would, on the face of it, warrant more discussion of issues such as soil degradation, availability of land resources, competition for scarce water resources, etc. In a few cases, it is mentioned that environmental studies have been scheduled for the future (Tanzania, Uganda and Nicaragua). In the assessment of the programme in Vietnam, Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 29

32 reference is made to an environmental management plan. In the assessment of the programme in Burkina Faso, it is candidly stated that with regard to individual investments in infrastructure such as dams and small-scale irrigation, the potential environmental impact does not seem to have been assessed systematically. The impression that road programmes are those paying most attention to environmental issues is borne out by a recent study by the Danish Institute for International Studies on the integration of environment as a cross-cutting issue in Danish development cooperation (DIIS report 2005:10). Based on a thorough assessment of all relevant programme documents, using a sample of 20 programmes supported by Denmark, the study concludes that there is a consistent performance within the transport sector coming close to meeting the formal guidelines for environmental screening and assessment, while there is considerable variation as well as room for improvement for sector programme support to agriculture, water & sanitation and decentralisation (DIIS 2005:10 p. 17). In addition, the study observes a general tendency in programmes to focus on environmental risks, whereas few of the cases studied bear evidence of having considered potential environmental opportunities. The findings are thus likely to stem from the perception of environment as mainly associated with risks, and the fact that environmental risks are often more apparent in the road sector than in, for instance, decentralisation and education. The study notes that, in sectors usually not associated with environmental risks, it is common to overlook both environmental risks and environmental opportunities in the course of programme identification and preparation. Programme assessments also reflect an understanding of the environment as more associated with risks than opportunities. Most assessments give examples of initiatives meant to avoid negative environmental impact of programme activities, and some directly state that the programme is not expected to have any negative environmental impact as the reason for rating it as satisfactory. This perception of the environment is particularly evident in some of the road programmes, whose need for thorough environmental impact assessments is explained by a new programme-sponsored road cutting through environmentally sensitive areas. The assessment of the agriculture programme in Nicaragua stands out as one of few exceptions highlighting the opportunities. Thus, reference is made to the programme s contribution to alleviating pressure on vulnerable land. Relatively few assessments consider the Danish contribution to the mainstreaming of environmental sustainability in national policies and strategies. However, this is discussed Box 10: Looking at environmental opportunities and not just at risks (Nicaragua agriculture) The programme has a number of activities, which are directed towards improvement of the environment. IPM [Integrated Pest Management] and healthy seeds are some of the direct interventions, but equally important: the general production increase per unit land alleviates the pressure on forested land, hill slopes, and other vulnerable areas Nicaragua, assessment of PASA 2, Agricultural Programme Suppor in country assessments prepared by the Embassies in Bolivia, Egypt and Uganda, whereas most other country assessments merely refer to efforts made in one or several Danish-supported programmes. Most country assessments highlight the programmes where most has been done to address environmental concerns. Cross-sector procedures and plans are only discussed in a few assessments, and of these Vietnam seems to be where the issue is most systematically addressed. Thus, the country assessment prepared by the Hanoi Embassy states that each sector programme has/will develop a Process Action Plan for mainstreaming of environment and draft an Environmental Management Plan including a set of indicators. Within the various programmes, efforts seem to be concentrated on one or two components. This is what the DIIS report refers to as partial integration of environmental concerns into sector programmes, and it is illustrated by the above-mentioned tendency for assessments of health programmes to refer to hospital waste management, and for assessments of water & sanitation programmes to concentrate on integrated water resource management. In general, improved integration of environmental concerns will depend on a more strategic approach to the mainstreaming of environmental issues in development programmes. Strategic environmental assessments (SEAs) early in the 30 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

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34 preparation process, identifying, among other aspects, the opportunities and win-win situations, based on the link between poverty and environment, have proved to be an assessment tool able to successfully improve the mainstreaming of environmental concerns in development programmes. The concept of SEA needs to be further developed, but promising results have already appeared, e.g. from the SEA process in the water & sanitation sector in Ghana, in which the environmental aspects of the national PRSP process and national water policies have gained significantly from the SEA process. In addition, improved analytical work on environmental issues, e.g. from World Bank-led Country Environmental Analyses (CEAs), will increase the opportunities for mainstreaming environmental issues in national sector policies and the PRSP process. This integration is highly needed in most programmes, for instance in sectors such as agriculture and water, where environmental considerations can usually improve the quality and efficiency of development programmes. Fulfilment of objectives on human rights and democratisation Unlike the issue of environment, assessments of the extent to which programmes support the mainstreaming of human rights and democratisation do not differ widely between the sectors. Embassies seem less certain about how to address these issues, and this is reflected in a significant number of assessments, in the shape of general references to good governance and participation, without description of how these concepts relate to the specific efforts in Danish-supported programmes. 22 of the 36 programme assessments report activities in support of good governance. In several cases, this seems to be the heading of support for either participation, decentralisation, community-based organisations or anti-corruption efforts, though a number of assessments specify that good governance refers to transparent allocation of resources, documentation of programme management in the form of minutes, accounts and audits, or the establishment of internal control units, audit units and procurement units in municipalities (e.g. the Kenya water & sanitation programme, the Ghana health programme, the Nicaragua decentralisation programme, and the Uganda agriculture programme). Participation is highlighted in 17 assessments, and in most cases this refers to the involvement of community groups and local councils in setting and revising programme priorities (e.g. Egypt s environment programme, Ghana s road programme, and Tanzania s agriculture programme), in management of the activities (e.g. Burkina Faso s energy programme), and in the monitoring of activities (e.g. Ghana s good governance programme). It is difficult to distinguish clearly between support for participation of existing groups and support for the formation or strengthening of community-based or civil society organisations. A number of assessments, however, explicitly refer to programme support for the organisation of village committees (Burkina Faso s agriculture programme), farmers groups (Nicaragua s, Uganda s and Vietnam s agriculture programmes), fishermen s groups (Vietnam s fishery programme), road-user committees (Zambia s road programme) and civil society (Ghana s good governance programme). Direct or indirect programme support for national decentralisation efforts is mentioned in 16 programme assessments. Predictably, direct support is reported in the assessments of all good governance and decentralisation programmes, while indirect support is described in assessments of, for instance, water & sanitation and road programmes, which mainly operate at the district level and either work through, or collaborate closely with, district-level authorities. Thus, the assessment of Tanzania s road programme explains that...the support for village infrastructure to be maintained by the villages has forged positive links between democratically-elected district councils and civil society. Programme support for anti-corruption efforts is highlighted in all assessments prepared in Benin and in six others, including programmes in Ghana, Kenya, Nicaragua, Tanzania, Uganda, and Zambia. The fact that only one programme in each of the six countries mentions anti-corruption seems to reflect that no decision has been taken by the Embassy as to whether these efforts should be reported in relation to individual programmes or in the section in the country assessment format on support for good governance. Human rights issues are mentioned only in the assessments of the education programmes in Bhutan, Mozambique, and Zambia which touch on the issue by mentioning children s right to education and in the assessment of Ghana s good governance programme, which refers to support for human rights institutions. Support for legislation is reported in four programme assessments. These include the business sector programmes in Ghana and Tanzania, the water & sanitation programme in 32 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

35 Kenya, and the fishery programme in Vietnam. In the case of Tanzania s business sector programme, the support is explained as support to the court systems; to deregulation; introduction of new labour laws; a mechanism for resolving disputes based on mediation and arbitration When programme assessments are compared to country assessments, the former seem to be under-reporting on the support for human rights. Thus, the support of Danish-funded programmes for human rights is discussed in the country assessments of Bangladesh (mainstreaming in all programmes), Bolivia (mainstreaming in education and agriculture programmes), Nepal (general mainstreaming), Nicaragua (mainstreaming of indigenous peoples rights in the environment programme), South Africa (use of a rights-based approach in HIV/AIDS activities and in the Skills Development Programme), Ghana (children s rights are addressed in the business sector programme), and Uganda (mainstreaming in the agriculture programme). Bangladesh appears to have the most thorough approach to human rights mainstreaming in sector programmes (see box 11). Findings from performance reviews bear out the impression that support for mainstreaming of human rights is underreported, since quality assurance of country and programme assessments often reveals that much more is done to address human rights issues than the activities reported. The same applies to support for legislation, which is included in a substantial number of programmes but seldom reported in programme assessments. Box 11: Mainstreaming of human rights in all programmes (Bangladesh) since the last assessment, efforts have been made to integrate human rights, democratisation and good governance issues into the design of the second generation SPSs. In the design of the next water and sanitation SPS phase, attempts have been made to sharpen the rights-based approach. A human rights and good governance review of the agriculture SPS was undertaken in 2005 to assess the rights and governance issues already addressed by the programme and to recommend priority areas for future interventions as well as a methodology for mainstreaming. This provides an important input to the design of the agriculture SPS Bangladesh country assessment The country assessments also seem to reflect the uncertainty among Embassies as to how to report on human rights and good governance. Of the 16 country assessments, four refer only to a good governance programme, without discussing mainstreaming in other programmes. Another five refer to participation and support for decentralisation in a number of programmes, while assessments of the country programmes in the above-mentioned seven countries also address human rights to varying extents. The country assessment of Bolivia is among the few discussing the relations between a good governance programme and other programmes. In most assessments, achievements of the good governance programme and other programmes are reported without mentioning the possible support given by the good governance programme towards mainstreaming in other programmes. Among the four assessments of good governance and decentralisation programmes, only the one in Ghana explicitly mentions that programme support for mainstreaming in other programmes has been limited, while other assessments skip this issue. Though only the Nepal country assessment mentions rights issues in relation to general policy dialogue with the government, in the experience of performance reviews, this aspect is also present in a number of other countries, including Bolivia and Uganda. Thus, it is the general experience that Embassies tend to pay more attention to issues such as human rights and conflict in countries with overt clashes in the form of civil war, violent social tensions or regional disputes. Conversely, Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 33

36 Embassies in countries where conflicts are less apparent find it harder to address and report on these issues. 1.4 Assessment of the management of country programmes Organisational assessment of Embassies A significant part of the performance reviews focus on the organisation, management and staffing at the Embassy with regard to development cooperation. The aim is to assist the Embassies in assessing the present situation, propose actions in areas with room for improvement, and observe best practises to be shared with other Embassies in programme countries. In 2005, all six Embassies visited (in Bangladesh, Bolivia, Burkina Faso, South Africa, Uganda, Vietnam) were found to be functioning well in terms of managing the development cooperation, despite a heavy workload and difficult circumstances with regard to local government capacity, political unpredictability and other challenges. In some Embassies there is a need for the management to sharpen strategic priorities with a view to ensuring that staff resources are spent on the most important activities. The present competence mix of Danish posted staff and local programme officers was found to be suitable, but in the medium term, some Embassies may need to adjust competences to accommodate the increasing integration of Danish development assistance into national institutions and systems. This will particularly require in-depth knowledge of national financial management systems and an improved understanding of institutional development issues. Performance reviews have found that at some Embassies there is scope for even better utilisation of local programme officers competences, local knowledge and experience, but Embassies under review appear to be increasingly aware of this issue. A common trend was increased responsibility to local programme officers, competence development achieved to match the increased challenges, and clearer descriptions of the division of responsibilities between local and Danish posted staff. weaknesses in the previous report, improvements have been seen. Thus, all except one of the Embassies under review have developed elaborate organisation manuals describing the lines of communication and reporting, division of responsibilities among the staff, management structures, and mechanisms for internal quality assurance. Embassies have made an effort to develop a shared vision among the staff for the future of the country programme concerning key issues such as aid modalities, use of advisers, and donor harmonisation. While some Embassies are still struggling with these challenges, others have seen considerable progress over the past few years. The first generation of performance reviews included an assessment of the Embassy s external communications, and impressive efforts have since been made, e.g. in the form of highly informative homepages. Fulfilment of indicators Since 2002, Annual Business Plans (VPA) have been developed jointly between the Danida Management and Embassies in programme countries. The VPA is an internal management instrument, which sets targets and indicators for development activities, disbursements, unsettled accounts, efforts on alignment and harmonisation, etc. The VPAs for 2005 included 329 indicators for all programmes in programme countries, South Africa, Niger, Malaysia and Cambodia. Indicators for the VPAs are selected among the output indicators defined for each of the programmes supported by Denmark. Embassies are requested to select one indicator per programme component (thus usually 3-4 per programme), which is found to typify the expected overall results. In the case of a road programme, an indicator may be the number of kilometres constructed or rehabilitated, while in a water & sanitation programme, an indicator may be the number of people served with potable water. While indicators should, as a rule of thumb, remain unchanged throughout each programme phase, the Steering Committee or similar body for joint decision-making between the Embassy and partners may in some cases decide to revise the indicators and/or targets during the implementation process. The development in the role of local programme officers represents an improvement compared to the situation described in the 2004 report. Likewise, in other areas, identified as 34 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

37 Box 12: Good practices at Embassies inspiring others The Embassy in Burkina Faso has managed to establish a clear common vision for the future of the country programme, primarily due to a highly effective programme committee. The performance review team was impressed by the insights of all staff into issues as regards both the particular context in Burkina Faso and international discussions on harmonisation and alignment. In Vietnam, the Embassy s homepage is an inspiration to others, as it is regularly updated, contains a substantial amount of information, and is very easy to navigate. The features on Vietnamese women who make a difference as a monthly theme have been well received, and have raised interest among Vietnamese and Danish people in development cooperation, gender equality and private sector development in Vietnam. The Embassy in Bangladesh has made a significant effort in 2005 to streamline its internal organisation and has prepared a comprehensive organisation manual defining the core responsibilities of the Embassy, individual responsibilities in job descriptions, lines of communication and a number of relevant procedures, including financial management. The Embassy in Bolivia has developed a format for ensuring that recommendations in appraisal reports are followed up in the preparation of the final programme document. The format provide important inspiration for the revision of appraisal guidelines as described in the new version of Guidelines for Programme Management (January 2006). The country strategy for Uganda has clearly-defined targets and indicators. It includes highly ambitious goals for alignment and harmonisation, and overall targets are included alongside specific targets for each programme in the Embassy s Harmonisation and Alignment Action Plan prepared in June 2005, later inspiring other Embassies to develop similar plans. Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 35

38 The following criteria have been applied to categorise the level of fulfilment of individual targets on the basis of the Embassies annual VPA reports for 2005: A: %, very satisfactory B: 61-95%, satisfactory C: 41-60%, less satisfactory D: 0-40%, quite unsatisfactory Table 1: Programme and Project Indicators: Level of Achievement Number of indicators Not available Targets fulfilled at a very satisfactory level (A: %) Targets fulfilled at a satisfactory level (B: 61-95) Targets fulfilled at a less satisfactory level (C: 41-60%) Targets fulfilled at a quite unsatisfactory level (D: 0-40%) % of indicators reported on, fulfilled at least 61%(A+B) Bangladesh (8) % Benin (11) % Bhutan 14 5 (2) % Bolivia (10) 3 100% Burkina Faso (7) % Cambodia % Ghana % Kenya (2) % Malaysia 2 2 (1) 100% Mozambique (4) % Nepal (8) % Nicaragua (7) % Niger 4 3 (2) 1 75% South Africa 7 7 (3) 100% Thailand % Tanzania (12) % Uganda (8) % Vietnam (11) % Zambia (5) % Egypt % Total (101) % 36 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

39 Achievements with respect to 316 of the 329 indicators were included in the Embassies annual reports. 212 targets (67%) were fulfilled at a very satisfactory level, including 101 cases that were above target. This is more or less the same share as in targets (16%) were met at a satisfactory level which is slightly more than in targets (4%) were reached at less satisfactory level which is the same as in Finally, 40 targets (13%) only reached unsatisfactory level, which is less than in 2004, when this category applied to 17% of the targets. The total sum of targets fulfilled at a very satisfactory or satisfactory level account for 83% of the indicators reported on. This result is in line with the assessments for 2004, when 81% of indicators were attributed such level of satisfaction. For a number of reasons, 100% fulfilment of targets is unlikely to be achieved. As a rule of thumb, 80% fulfilment is considered adequate for bilateral development cooperation. After all, nationally-owned, meaningful indicators should take precedence over indicators that may be easily achieved, but are more narrowly defined in relation to Danish-supported activities. Varying reasons for deviations from targets (above) are stated in the annual reports 6. In a number of cases general delays in the implementation of the programme, caused by delays in recruiting advisers, contracts or other basic input-related activities. In some cases, these delays are attributed to limited capacity in the partner organisation or institution, complicated local procedures, delays in the national decision-making process or in reaching agreement with partners on specific issues. The latter is the reason for a number of cases of both non-fulfilment and fulfilment below the target. Other explanations provided are delays in deliveries of services or goods from local and international contractors, and decisions to postpone certain activities or programme launches for various reasons. A number of under-fulfilled targets stem from overly ambitious or misguided targets in the VPA for As also observed in the comparison between reporting for 2004 and 2003, it is noted that annual reporting has improved for 2005 compared to In most cases, indicators and targets included have been systematically reported on, 6 The Embassy will have to provide a short explanation/reason for targets that have been fulfilled 60% or less (i.e. if the level of achievement is less satisfactory or unsatisfactory ). and reasons for low ratings have generally been explained. New programmes have been designed with more focus on monitoring systems and indicators, and generally improved programme and project indicators will be reflected in better indicators in the VPA reporting. 1.5 Perspectives The information available suggests that overall performance of bilateral development cooperation in 2005 is satisfactory. A simple but eloquent expression of this is that 83% of the 316 indicators reported on in the Annual Business Plans were deemed to be achieved at a satisfactory or very satisfactory level. This result is in line with the assessments for 2004, when 81% of indicators were attributed the same level of satisfaction and above the 80%, which is - as a rule of thumb - considered adequate for bilateral development cooperation. Thus, 100% fulfilment of targets is unlikely to be achieved, and is not necessarily something to aspire to, as nationallyowned, meaningful indicators should take precedence over indicators that may be easily achieved, but are more narrowly defined in relation to Danish-supported activities. Performance reviews conducted in six countries (Vietnam, Bangladesh, South Africa, Uganda, Bolivia and Burkina Faso) have supported this overall conclusion, as have assessments of country programmes prepared by Embassies in 16 countries, assessments of 36 specific programmes, and the Embassies reporting on the Annual Business Plans. Considering the numerous external factors ranging from the security situation to capacity constraints the high satisfaction rate signals that, generally speaking, the programmes supported by Denmark have been designed in a rather robust, yet flexible manner. When assessing results, the influence of the context in partner countries should never be underestimated. Conditions vary considerably between the countries and, not surprisingly, progress achieved in development cooperation is strongly correlated with a favourable national framework for the intervention. This is best illustrated by the Embassies reporting on overall progress of country programmes, where only two of the 16 countries, Bolivia and Nepal, have rated the achievement as less satisfactory. In both cases, this rating is explained by a highly volatile social and political situation, whereas progress in each of the various Danish-supported Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 37

40 programmes in the two countries is generally considered satisfactory. Many programme countries are found to have experienced noticeable progress and improvements in the area of public financial management over the last couple of years. Public accounting standards in line with international practice are being introduced in many countries, and reliable management information systems are being set up to strengthen the monitoring of public expenditure at all levels. This provides opportunities for aligning more with partner countries own financial management systems, and available performance monitoring tools indicate that the alignment of Danish aid flows on national priorities, one of the 12 indicators in the Paris Declaration, is on the right track. The Paris goal for 2010 is to have 85% of bilateral assistance in partner countries reported on the national budget. Reporting from the Embassies suggests that a third of them already meet this target, and over half have reached a figure above 70%. Concerning harmonisation, 13 of the 16 Embassies have reported satisfactory or very satisfactory progress in the overall picture of donor harmonisation, and fewer Embassies compared to 2004 have categorised the situation in their respective country as less satisfactory. Embassies are supporting harmonisation efforts in various ways, and 14 indicate that joint funding mechanisms with other donors are being used or are even widespread. The specific form varies, e.g. comprehensive budget support arrangements, joint financing of an entire programme with a large number of donors, or joint financing of specific components with a few other donors. According to experiences, joint reviews with other donors (e.g. at the sector level) may be a useful means of paving the way for closer donor cooperation, sometimes resulting in joint funding of programme support. Sharing analyses and studies with other donors is common, though it may still be formalised and become more efficient, while considerable experience of joint evaluations has already been gained. Though national frameworks for alignment and harmonisation are developed to varying degrees, thus imposing highly different conditions in each partner country, performance reviews have found that Embassies efforts matter as well. The country programme in Burkina Faso is a case in point, as a concerted effort by the Embassy has resulted in abolishment, by the end of 2005, of all parallel implementation structures (i.e. organisational set-ups established to implement Danish-supported activities outside existing government or other partner structures), as well as in all support to government institutions reflected in the national budget. However, challenges remain in all countries. Major tasks ahead include replacing the still widespread separate Danish programme funding with joint funding arrangements, reducing the number of parallel implementation structures, further aligning aid flows with partner countries budget process, and focusing Danish-supported activities even more by limiting the number of intervention areas in country programmes (i.e. withdrawing from some of the sectors hitherto supported) and reducing the number of components and sub-components in sector programmes. Achievements vary between the sectors: concerning contextrelated issues such as the policies of partner governments, a higher proportion of satisfactory ratings are found in the social sectors and water than in agriculture and governance. Looking at programme-related questions such as the achievement of programme objectives, the level of satisfaction is highest in agriculture programmes and lowest in governance programmes. Consideration of cross-cutting issues gender equality, environment, and human rights & democratisation is generally rated high by the Embassies, but qualitative assessments suggest that achievements are mixed. Firstly, specific assessment of achievements is complicated by most programmes lacking well-defined objectives, targets and indicators for these concerns. Secondly, much emphasis is placed on incorporating gender equality into assessments of programme design and planning, whereas actual implementation seems to be weaker. Thirdly, considerations regarding environment vary substantially between the sectors, and tend to focus on environmental risks rather than opportunities. And fourthly, when addressing human rights & democratisation, Embassies usually refer to good governance, participation or decentralisation, whereas mainstreaming of human-rights issues appears to be considerably more difficult. For all the cross-cutting issues, however, good practices have been identified. In particular, the systematic efforts made in road sector programmes to address gender equality and environmental concern represent an encouraging example able to inspire progress in other sectors. Concerning the management of country programmes, performance reviews have found improvements in some areas identified as weaknesses in the 2004 report. Thus, most Embassies 38 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

41 have developed elaborate organisation manuals, describing lines of communication and reporting, division of responsibilities among staff, management structures, and mechanisms for internal quality assurance. In the Embassies under review, increasing attention is being paid to making better use of local programme officers competences, local knowledge and experience. And many Embassies have managed to develop a shared vision among the staff for the future of the country programme. While the present competence mix of Danish posted and local staff is found suitable, in the medium term, it poses a challenge to some Embassies to adjust competences in response to increasing integration of Danish development assistance into national institutions and systems. Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 39

42 40 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

43 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 41

44 THE MULTILATERAL TOOLBOX Seven key tools have been used to gather the information presented in this chapter: Assessments according to a standard format filled in by the multilateral Representations and departments in MFA responsible for the cooperation with each of the organisations remain an essential source of information. 17 organisations have been covered in Assessments according to a standard format filled in by Embassies in programme countries and South Africa contribute to the overall picture by providing an assessment of the organisations country-level performance. This year Embassies have been asked to concentrate assessments on the three organisations with which they have the closest collaboration. This has resulted in the receipt of a total of 46 assessment forms covering 11 organisations. The World Bank (15 assessments), UNDP (11 assessments) and EC (nine assessments) are by far the organisations best covered, whereas most other organisations are reported on only by one or two Embassies. The MOPAN survey carried out in a joint effort between Denmark and eight other bilateral donors also assesses the field effectiveness of multilateral organisations. In 2005, the survey covered the World Bank, UNFPA, and UNAIDS. Reporting by the responsible multilateral Representation or department in MFA, centred on the annual action plan that pertains to each organisation strategy (for Danish cooperation with the organisation concerned), supplements the perception analyses mentioned above. As action plans contain specific targets and indicators, this reporting is more quantitatively- oriented than the more qualitative assessments derived from the perception analyses. Danish-funded studies of RBM systems in IFAD and OHCHR were finalised in 2005 (by Kabell Konsulting) and similar studies of RBM systems in UNDP and UNFPA were initiated in 2005 (by Dalberg). Recent independent evaluations are available of IFAD (carried out jointly by seven bilateral donors in cooperation with the governing council), WFP (also carried out jointly by seven bilateral donors in cooperation with the governing council), and UNDP (a peer assessment of UNDP s evaluation system led by the Danish Evaluation Department). Minutes from High-Level Consultations with the organisations and minutes from board meetings or annual meetings add valuable perspectives to the information gathered by other tools, and are supplemented by various other documents from the organisations (e.g. the EC monitoring format, internal assessments, etc.) The full toolbox is described in annex 2 Ratings using the four-grade scale from very satisfactory to unsatisfactory have been used in the assessments and will be referred to when relevant. Similar to assessments discussed in the chapter on bilateral development cooperation, however, qualitative comments accompanying the ratings provide substantially more useful information, and will be the primary focus of discussions in this chapter. 7 Assessments are made by the Embassies in Washington (World Bank) and Rome (WFP, IFAD), the UN Missions in New York (UNDP, UNFPA, UNICEF) and Geneva (UNAIDS, UNCHR, OHCHR, ICRC, WHO), the Africa Department (AfDB), the Asia and Latin America Department (ADB), the Policy Department (EC), the Department for Humanitarian Assistance and NGO Cooperation (OCHA, UNWRA), and the Department for Environment and Sustainable Development (UNEP). 42 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

45 2. MEASURING MULTILATERAL DEVELOPMENT COOPERATION 2.1. Introduction The framework for assessing multilateral performance management, introduced in 2002, has been further strengthened during Existing tools have been refined, and new tools have been added to ensure that all findings are validated by combining a wide variety of sources. Seven key tools have been used to gather the information presented in this chapter (see toolbox on previous page). To ensure the information is reliable, it has been decided to concentrate the presentation on the seven organisations best covered by the various tools. Thus, the World Bank, EC, UNDP, UNFPA, IFAD, WPF, and UNAIDS are all covered by a minimum of four of the seven tools available. Of these, UNDP, UNFPA and IFAD are each covered by six different tools. Consistent with the focus in the various tools, the following dimensions have been selected for closer analysis: Strategic framework, including an assessment of goals, target-setting, and achievement of objectives. Administrative effectiveness, including an assessment of RBM systems and the adequacy of financial systems. Partnership, coordination, harmonisation and alignment, including an assessment of support for PRS alignment and MDGs, harmonisation and enhancement of country ownership. As these organisations differ considerably with regard to mandate, resources, working conditions, etc. and have, moreover, not been assessed according to well-defined standard criteria, comparing their performances has been found inappropriate. Instead, this chapter sets out to present a coherent portrayal of each of the seven organisations, based on the information available. A brief overview of findings across all 17 organisations reported on opens the section General findings across organisations Strategic framework In the past, performance has been difficult to measure simply because there were no clear goals against which to measure. Therefore, multilateral Representations have been asked to assess whether organisations have clear objectives and an operational strategy to promote such goals as prerequisites for measurement. In all of the assessed organisations, efforts are made to improve the formulation of objectives, strategies, goals and targets consistent with a results-based management approach, while goal and target-setting is rated as satisfactory in 14 of 17 organisations. There are, however, considerable differences between the organisations as to how elaborate their frameworks and systems are at this stage. Those perceived to be frontrunners are ICRC, UNDP, UNFPA and UNICEF, while UNRWA and UNEP are among those facing more serious challenges in this field. Assessments show that, compared to 2004, humanitarian organisations are making progress towards defining strategies to achieve objectives. ICRC is perceived to have a clear strategy for implementing its mandate of protection and assistance. In OCHA, a new structure has been developed to enhance the capability to realise objectives. UNHCR has, for the first time, issued Global Strategic Objectives for a two-year period , including expected accomplishments and indicators of achievement/performance measures, consistent with UN instructions on results-based management. Finally, OHCHR is undergoing similar changes, and a new plan of action provides a long-term strategic vision for the activities of the office. Concerning the attainment of goals, two thirds (64%) of a total of 61 targets, formulated by 15 organisations in their external or internal documents, are assessed to have been accomplished to a satisfactory degree. The accomplishment of an additional 21% of targets is considered very satisfactory, while 15% are rated less satisfactory. As also noted in 2004, assessments are primarily based on annual reports and less on internal or external reviews and evaluations. Only in the case of IFAD, WFP and the World Bank are specific performance reports referred to as the source for assessing the attainment of targets. This indicates that, for a majority of the organisations, continued work is needed to improve results-reporting mechanisms. Many of the targets listed by the organisations Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 43

46 are broad and at a high level of abstraction. This may reflect the difficulty of translating visionary statements into measurable targets. Of the assessments submitted, only that of the World Bank lists tangible targets, which are set within a certain timeframe and are measurable. Lack of measurable targets obviously makes it difficult to assess goal attainment. Administrative effectiveness Assessments indicate that many organisations have either recently concluded organisational reforms or are in the process of reforming. It is too early to make firm conclusions about the outcome of these changes, but ratings indicate overall satisfaction with efforts made so far. Administrative effectiveness is assessed as satisfactory in 13 of 17 organisations. AfDB and ADB are among those whose organisational and administrative effectiveness is assessed as less satisfactory. In the case of AfDB, setbacks in the organisational and administrative effectiveness are perceived as temporary and caused by the relocation of operations from Abidjan to Tunis. Conversely, though ADB has been through a reorganisation process improving the focus on individual countries, its implementation of a strategy to establish merit-based, transparent and effective human-resource management is considered half-hearted, which is seen as hampering administrative effectiveness. Within 11 of 16 organisations, the quality of established RBM systems is considered satisfactory. Frequently, however, creating and sustaining a results-oriented culture is perceived as a key challenge for integrating RBM throughout the organisation. Changing procedures and organisational structures is not sufficient to ensure effectiveness and efficiency; a resultsoriented corporate culture is required. Assessments show great variation in the comprehensiveness of RBM frameworks and systems in organisations. As for the adequacy of financial systems, satisfaction is expressed with 16 of the 17 organisations assessed, and among these the rating very satisfactory is used in the case of WFP, AfDB, ADB and the World Bank. Partnership, coordination, harmonisation and alignment In general, the organisations support for PRS alignment and towards achieving the MDGs is assessed as satisfactory, in the cases of UNHCR and OHCHR as very satisfactory. Regarding support for PRS alignment, assessments of IFAD, UNDP, UNFPA and WHO indicate that more could be done to move support from the overall policy level to the country level. The World Bank stands out as the only organisation, which regularly and systematically reports on progress in PRS implementation at the country level. Qualitative comments indicate that organisations such as UNICEF and WHO also monitor progress on PRS alignment, but both monitoring and reporting seem less systematic than that of the World Bank. MDGs are supported by all organisations, but the alignment of targets varies. Support for donor harmonisation, enhancement of country ownership, joint programming and funding arrangements seems to be making headway among organisations with a development mandate. Also among organisations with a humanitarian mandate, progress seems to continue as UNHCR, OHCHR, UNICEF, UNRWA and WFP are all perceived as committed to further harmonisation. In the case of ICRC and OCHA, harmonisation efforts are pursued, but with somewhat greater reservation. The particular challenge for humanitarian organisations stems from the time factor, i.e. the need for rapid responses to emergency operations, which may sometimes be at odds with harmonisation efforts. Support for Danish priorities Of 17 organisations, all except two have formulated objectives for one or more of the Danish cross-cutting issues (gender equality, environment, and human rights & democratisation), while ten organisations have formulated objectives for all of the cross-cutting issues. Depending on their particular characteristics, organisations align with cross-cutting issues in different ways and to varying degrees. For approximately two thirds of the organisations, the degree to which objectives for the cross-cutting priorities are referred to systematically in the organisations regular or annual management plans is described as satisfactory or very satisfactory. 15 of 16 organisations are seen as contributing satisfactorily to combating corruption. However, the measurements reveal substantial variations. While ADB, AfDB and the World Bank have specific anti-corruption policies and units set up to address all issues related to corruption, none of the UN organisations have defined anti-corruption as a specific policy priority. 44 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

47 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 45

48 2.3. Assessment of the performance of key organisations World Bank The assessment of the World Bank is based on information provided in the assessment format by the Embassy in Washington, assessments made by 15 Embassies in programme countries, the 2005 MOPAN study, reporting on Denmark s World Bank action plan for 2005, as well as other reporting from both the Bank and the Ministry of Foreign Affairs. As was the case in 2004, the overall assessment of the performance of the World Bank indicates that, both at the country level and at headquarters, the Bank s performance is found to be satisfactory. With 14 out of 15 Embassies in programme countries assessing the World Bank as being among the three multilateral organisations with which the Embassy has the closest cooperation (the Embassy in Burkina Faso is the only exception), country-level information on the World Bank is more comprehensive than that of any other of the assessed organisations. The assessment in the MOPAN report is that the World Bank is perceived as a leading actor in development policy and cooperation. According to the MOPAN study, this role is facilitated by the Bank s support for PRSs and the MDGs as well as by the volume of resources and the intellectual inputs the Bank provides to the countries concerned. The World Bank is also perceived as a strong advocate on economic policy issues and policy dialogue, especially at the central government level. MOPAN country teams see room for improvement in the World Bank s performance in supporting capacity development, both at central and local government level. The need for improvement in capacity building has also been stressed in World Bank evaluations, including the comprehensive evaluation on capacity building in Africa conducted by the OED. Strategic framework The qualitative assessment by the Embassy in Washington concerning the Bank s strategic framework points out that the World Bank does not have a unified, clear and operational strategy covering all aspects of its work. The Bank s strategic direction is first and foremost guided by The Strategic Framework Paper of 2001, which is based on the twin pillars of promoting a favourable investment climate and empowering poor people. The strategic framework paper is complemented by a large number of sector strategies and about 120 country assistance strategies (CAS), which are crucial components of the Bank s overall strategy formulation process. Both the Bank and its Board consider the strategic framework to be highly relevant in ensuring that operational programmes are in line with the Bank s objectives. Furthermore, the Bank s strategic framework is found to remain robust and provides a strong basis for action in pursuit of the Bank s mission of promoting growth with poverty reduction. Administrative effectiveness According to the Embassy in Washington, the World Bank performs well in the area of adequacy of its financial systems, in which the Embassy rates performance as very satisfactory. Weaknesses ( less satisfactory performance ratings) are primarily noted in the quality of the RBM system and in integrating human rights issues into its work. This latter finding is consistent with certain findings at the country level, where some Embassies regret the Bank s limited consideration of human rights in its policy dialogue. On the other hand, the Bank has specifically expressed its appreciation of Denmark s secondment of a human-rights expert to assist its legal department, and stressed the disparity of views among member states on this particular issue. In terms of improving the RBM system, the Bank is in the process of preparing a Program of Action for designed to 1) accelerate and intensify the Bank s efforts to strengthen country willingness and capacity to manage for results; 2) ensure leadership within the Bank and attention at all levels to the results agenda; and 3) continue its contributions to the harmonisation and coordination of efforts among development partners to better measure, monitor and manage for results. Danida is closely following and encouraging the Bank s new initiatives in this area. The country-level perception is of adequate performance, as 12 out of 14 Embassies assess the overall programme and institutional performance as satisfactory. Provision of project support is perceived as satisfactory by the vast majority of Embassies, whereas assessments of its provision of policy advice and knowledge to the host country are more mixed. This perspective is also covered by the MOPAN study, which concludes that the World Bank plays a key role in the policy dialogue but also that the quality of international technical advice is good, though not always relevant to local needs. 46 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

49 A management issue with large implications for country-level performance is that of decentralisation. In Danida s assessment, further decentralisation is needed, both in terms of moving more staff from headquarters to country offices and in terms of enhancing the decision-making power at the country level. Reports show that less than one quarter of decisions are made at the country level. Also, as it appears from the next section, the Bank s performance on country-level alignment and harmonisation still has room for improvement. in the human-resource policies to take account of work on harmonisation when considering promotions. Thus, this is an issue to be closely monitored over the next few years. Partnership, coordination, harmonisation and alignment On the issues of harmonisation and alignment, the rating satisfactory, given by the Embassy in Washington, is contrasted by a wide variation in ratings at country level. One Embassy rates the performance of the Bank as unsatisfactory, five Embassies find it less satisfactory, and five Embassies apply the rating satisfactory. One very satisfactory rating is applied in Zambia. The most critical Embassy describes the Bank as a centralised and inflexible organisation that does not sufficiently prioritise harmonisation and alignment. In other countries the World Bank s performance is perceived to call for improvement, whereas in Zambia, the Bank is considered active in coordinating efforts with other donors and promoting harmonisation. In Nicaragua, despite a reputation for using it own procurement systems and Project Implementation Units, the Bank is positively viewed as regards information sharing and harmonisation with other donors. On this issue, the MOPAN study concludes that though the World Bank supports harmonisation efforts actively at a strategic level, there seems to be only slow progress in applying it to its own procedures and new policies. MOPAN country teams note slow progress towards implementing PRS alignment and harmonisation agendas, as well as a need for better capacity development and overall country responsiveness. These general findings seem to be common, despite variations in the size of the World Bank s country offices and programmes across the nine countries surveyed. In a response to the findings in the MOPAN study from 2005, the World Bank states that The perception that the Bank is still pursuing its own institutional goals and procedures when developing new operations is troubling. We have taken and are continuing to take steps to address this concern. The Bank also states that implementation of better partnering can be strengthened, and that the Bank is working to improve incentives for partnering, e.g. through changes Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 47

50 Box 13: Perceptions of Multilateral Partnerships at Country Level by the Multilateral Organisations Performance Assessment Network (MOPAN) MOPAN is a network of nine like-minded bilateral donors who jointly conduct an annual survey of how staff at MOPAN embassies or country offices perceive the performance of multilateral organisations. The MOPAN survey is not an evaluation and does not cover actual results on the ground. In 2005, the survey took place in nine countries and covered the World Bank, UNFPA and UNAIDS. Findings Despite differences between the World Bank, UNFPA and UNAIDS in mandates as well as in the scale of their presence in the countries in which the survey was conducted, some findings are common to all three multilateral organisations. There is progress in terms of inter-agency coordination, PRS alignment and harmonisation, but also a gap between policy and implementation. All three organisations draw on their comparative advantages to work towards poverty reduction and the MDGs. Performance is largely concentrated on influencing central government, focusing less on NGOs and the private sector. Capacity development is a common weakness of all three organisations. World Bank UNFPA UNAIDS Quality of partnerships with national stakeholders Key role in policy dialogue. Weak contribution to capacity building.quality of international technical advice is seen to be high, but not always relevant to local needs. Effective advocate on specific financial and economic issues, but seen as a minor actor in wider advocacy endeavours. Focus on governmental level, not on NGOs and private sector. Strong effort to promote the PRS alignment and harmonisation agenda, but slow progress in implementation when developing new policies. Strong contribution to policy dialogue. Mixed performance in terms of contribution to capacity development. Strong and lively advocate on specific issues relevant to the Fund s mandate. Positive use of comparative advantage in fostering the participation of NGOs, but not of the private sector. Progress towards aligning country programmes to national priorities and sector strategies. Holds comparative advantages in policy dialogue, but could make a stronger contribution. Capacity development limited to public institutions at the central level. Advocacy: comparative advantage and real strength. No clear picture of support for NGOs and private sector. Progress towards aligning its programmes with national poverty reduction and other strategies. Quality of partnerships with other development agencies Forthcoming with general information, but less proactive with other types of information. Perception of inter-agency cooperation is positive although it is sometimes perceived to be too dominant, and cooperation with UNDP and other UN agencies is limited. Harmonisation supported at strategic level, but less so when applied it to own procedures. Local responsiveness is perceived to have improved, but remains inhibited by the absence of full decentralisation. Room for improvement in sharing information. Active and regular participation in local donor coordination groups, but less good at operational coordination. Cautious progress towards harmonisation, particularly at the policy level. Rather dependent on headquarters for decision-taking. Shares information well and proactively with other development agencies engaged in HIV/AIDS activities. Perception of Interagency coordination is varied, but generally positive. Actively promotes the Three Ones. Local responsiveness appropriate but room for improvement. 48 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

51 European Commission This section is primarily based on the assessment prepared by the department responsible for cooperation with the European Commission (EC), assessments by nine bilateral Embassies, and supporting documents from the EC. The existence of a good EC monitoring format with clear indicators has greatly facilitated the assessment. The department responsible for EC cooperation uses the rating satisfactory, when assessing EC s support for PRS alignment and support for MDGs, its contribution to the achievement of the MDGs and its promotion of human security. On other dimensions, including goals and target-setting in strategy papers and the overall organisational effectiveness, calls are made for adjusting plans and strategies. At the country level, seven out of nine Embassies assess the overall programme and institutional performance of EC as satisfactory, while two Embassies consider the performance less satisfactory. EC s own assessment, based on its Results-Oriented Monitoring System (ROM) indicates an upward trend since 2001 with respect to relevance, efficiency, effectiveness, impact and sustainability of project implementation and performance. Nevertheless, the average EC rating of project implementation and performance for 2005 is relatively low at 2.75 (average of ratings from 1 4). A project is considered on track at the value of Strategic framework The department responsible for the cooperation calls for adjusting the goals and target-setting in the EC s country, regional and thematic strategy papers and national indicative programmes: There is an increased focus on results of the aid, but that focus can still be improved upon as strategies do not adequately reflect the policy for EC development aid set out in the 2000 Development Policy Statement 9. One assessment concerns development objectives and the strategy to achieve them. With poverty focus being a clearly expressed objective, the performance on this dimension is rated less satisfactory based on the fact that only 43.7% of EC aid went to the least developed countries in However, the 8 EuropeAid Cooperation Office Indicators AS AT 31/12/ The 2000 Development Policy Statement was revised in late Strategies should now be in line with the principles set out in the 2005 policy statement: The European Consensus on Development. department also recognises a political demand for support for pre-accession and neighbourhood countries, which, to some extent, constrains the Commission s room for manoeuvre. At the country level, five Embassies find that the EC s provision of policy advice and knowledge to the host country and the relevance of this support, in the light of the organisation s mandate, are satisfactory, while the Embassy in Burkina Faso describes it as very satisfactory (one Embassy did not apply any rating). Administrative effectiveness The department responsible for the cooperation calls for adjustments concerning the overall organisational effectiveness of the EC. The qualitative assessment sees signs that the devolution of responsibilities to EC delegations, finalised for nearly all delegations in 2004, will improve the administrative effectiveness and capability for RBM. However, the internal administrative effectiveness of EC as well as the quality of its RBM and financial system, including procedures regarding external auditing, are considered less satisfactory. It is observed that the EC seems aware of this weakness and is committed to focus more on coordination and simplification of procedures during In the Europeaid Cooperation Office Indicators, the lack of a good Management Information System is signalled, and better planning is one of six priorities for This would help overcome what is commonly known as bunching, i.e. the problem that for the EDF in, say, 2005, less than 40% of the budget was committed by September, and a sixth of the total target had to be implemented in the last four weeks of the year. Despite most Embassies positive assessment of the overall programme and institutional performance (only two Embassies describe performance in this dimension as less satisfactory ), qualitative assessments prepared by some of the Embassies highlight weaknesses in the administrative effectiveness. Thus, one Embassy states that the general opinion of EC funded projects is that the EC needs to use less bureaucratic procedures in their projects and adopt a results-based management approach. Assessments by other Embassies also reflect the perception that the EC is overly constrained by rules and regulations. EC documents give the impression of paying intense attention to improving aid effectiveness. For example, a review Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 49

52 of financial regulations is expected to be completed in Moreover, aid has been untied as a means of simplification, and Europeaid Cooperation Office (AIDCO) guides will also be simplified. While heavily biased towards financial reporting, the monitoring system does also regularly report on indicators, including such aspects as the speed and advance of programme implementation, as well as organisational aspects (mainly staffing). The mere existence of systematically collected and analysed performance data deserves recognition, as this is a precondition for any performance management system, and one fully met by all multilateral organisations. Partnership, coordination, harmonisation and alignment Overall, the assessment by the department responsible for the cooperation is that support for PRS alignment and MDG goals is adequate, while support for harmonisation and enhancement of country ownership could still be improved. From a Danish point of view it represents a key challenge in harmonisation processes to ensure that these are country-owned and country-specific, encompassing all relevant donors and not only the EU. According to the department, PRS alignment at country level is especially visible in the budget support programmes but improvements are made in other types of projects and programmes as well. Contributions are made towards the MDG goals, though the EC also supports a wide range of programmes and projects not directly linked to these. This seems consistent with an assessment made by one Embassy, stating that the EC tends to wish to have an EU profile on many activities. The EC s participation in (the government-led) donor cooperation, including harmonisation and alignment, is assessed as less satisfactory by four Embassies, three view performance as satisfactory, while the Embassy in Burkina Faso uses the rating very satisfactory. One case of less satisfactory participation is explained by the experience that, although harmonisation and alignment are issues often referred to by the EC, actual participation in joint programmes (e.g. SWAp and joint budget support) has yet to materialise. Another Embassy applying the rating less satisfactory observes that the EC appears in its day-to-day administration rather tightly bound by rules and procedures established centrally by HQs, but adds that improvements have been registered in some sectors. In one of these sectors, the Embassy has the impression that the EC genuinely wanted to harmonise and align, but that the government was not yet ready. In a third country, progress is indicated despite a less satisfactory rating: the EC has slowly increased its role in the harmonisation process both internally within the EC, but also on the wider harmonisation agenda. 50 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

53 UNDP The assessment of UNDP builds on a comprehensive set of documents, comprising assessments by 11 Embassies in programme countries and by the Danish UN Mission in New York, reporting on the action plan accompanying the organisation strategy, a peer assessment of UNDP s evaluation system led by the Danish Evaluation Department, a Danish-funded study of UNDP s RBM system, minutes of High-Level Consultations with UNDP, and minutes of Board meetings. There is thus a solid basis for a wide-ranging analysis with possibilities of cross-checking and validating judgements. After the World Bank (mentioned by 15 Embassies), UNDP is listed as the organisation with which Embassies have the closest cooperation. UNDP is also the second-most cited organisation when Embassies assess which organisations are key partners in the overall formulation and implementation of the host country s PRSP, and which organisations are active in sectors relevant to Danish development cooperation and/or SWAp relevant to the national PRSP. The UN Mission finds that UNDP has generally improved its efficiency significantly in recent years, in response to criticism raised by the like-minded donors. The Mission rates overall performance and all other issues included in the form satisfactory, except fulfilment of objectives, which is rated very satisfactory. Similarly, the overall impression from the ratings in the action plan is of suitable progress towards meeting specific Danish objectives. Assessments made by Embassies at the country level differ substantially. The programme and institutional performance of UNDP delivered to the host country is rated satisfactory by five Embassies and less satisfactory by six Embassies. Among the critical Embassies, reasons for the less satisfactory rating vary. One Embassy mentions that UNDP deploy an in some cases remarkably uncritical approach to the development processes and recipient institutions, while another Embassy finds that lack of resources seems to be a main problem as the UNDP budget has been lowered continuously during the past decade, affecting the influence of the organisation. Strategic framework Regarding policies and strategies, the UN Mission states that UNDP has come a long way in formulating clear goals and targets reflected in its strategic framework (MYFF), which also sets out a clear and operational strategy for the organisation to carry out its mandate. In general, there is recognition of the process of focusing the organisation, which has been completed over the past few years, and which has reinvigorated the organisation s image. Indeed, over 99% of outcomes in 2004 were directly linked to the 30 service lines in the MYFF, and this earned UNDP a fulfilled rating on this point in the action plan. The focusing process, the other hand, has meant cutting activities in some countries, if these were not in line with overall priorities, and some of the Embassies critical assessments referred to above may reflect that such tactical retreats have not always been appreciated at the country level. In seven of 11 assessments by the Embassies, the performance of UNDP with regard to provision of policy advice and knowledge to the host country and the relevance of this support, in the light of the organisation s mandate, is rated satisfactory. The remaining four Embassies use the rating less satisfactory, and of these one indicates that UNDP only plays a role in very limited areas, and their impact on the overall policy dialogue in the country is low. Another Embassy observes that UNDP finds it very difficult to make an impact among several bilateral and multilateral donors. In addition, some of the Embassies applying the rating satisfactory make certain qualifying statements about certain weaknesses. One Embassy mentions that because of its smaller size in terms of financial support, however, UNDP seems to have less impact than the banks. Another Embassy explains that the UNDP has ambitions to play a leading role within the administrative and legal reform processes, but generally seems to have difficulties meeting these goals. Government is increasingly turning towards the bilateral donors. A third Embassy finds that UNDP tends to loose focus and spread the limited resources too thin. If such trends continue, there may be a case for revising the rating downward. A fourth and a fifth Embassy indicate that the performance level of UNDP hinges, in their opinion, more on individual than institutional capacity. As to UNDP s provision of project support and the relevance of this support, in the light of the organisation s mandate, five of the 11 Embassies consider the performance of UNDP satisfactory, while six rate it as less satisfactory. Lack of capacity within areas ranging from human and technical capacity to limited funds is mentioned in a number of countries. Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 51

54 52 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

55 One Embassy finds that UNDP has opted for many small projects with the objective of visibility rather than alignment. Another Embassy assesses project management to be highly efficient, but finds that, instead of project management, UNDP should provide greater assistance in policy formulation and facilitation of dialogue. Administrative effectiveness The key measure for administrative effectiveness selected as a performance indicator in the action plan is that UNDP recovers actual costs in line with its Cost Recovery Policy Due to lack of data, however, this cannot be measured, as UNDP is currently processing its 2004 cost recovery figures. Regarding another important aspect of administrative effectiveness, the RBM systems, UNDP is fast becoming a lead agency. UNDP has implemented a new electronic RBM support system; a new format for results reporting has been approved by the Executive Board and was used for the first time in the 2004 results reporting. UNDP is also developing a new electronic results-based budgeting system, and initial steps have been presented to the Board in September Indeed, in this area UNDP scores a fulfilled in the action plan based on a one-time indicator defined as the approval by the Executive Board of the version of the MYFF report that was produced and presented to them. While these achievements are generally recognised and much appreciated, a Danish-funded study on results management at UNDP highlights some important challenges: first, improving the ability to respond to complex and evolving expectations, second sustain internal commitment to building a results-based culture, and third, the need to increase the reliability of underlying results indicators in the MYFF, especially those generated by the country offices self-reporting and as perceptions in a partner survey. According to the study, much has been done to introduce key tools, such as the MYFF report and Balanced Scorecard, whereas the depth of their usage varies across the organisation, and consideration of results is not fully used to inform programme and project implementation. Improving the relevance and reliability of data on organisational effectiveness is seen as the most difficult task for results reporting in UNDP. The latter is echoed by the Danish-led peer assessment of UNDP s evaluation function, which emphasises the need to reinforce the RBM systems of the organisation, and in particular the quality and accessibility of information produced by these systems. The overall conclusion of the peer panel is that UNDP s Evaluation Office enjoys an acceptable level of independence and produces evaluations that are credible, valid and useful for learning and strategy formation in the organisation. At the same time, it s potential for strengthening accountability and performance assessment is being underexploited, both for the purpose of accountability and as an essential basis for learning. Among the panel s key recommendations is to secure the independence of the Evaluation Office, to enhance accountability and related performance assessment functions, to work towards more systematic stakeholder participation, to improve management response and follow-up on evaluations, and to improve proactive, targeted communication of evaluation results. Partnership, coordination, harmonisation and alignment The indicator used in the action plan to measure the partnership dimension is the number of active Joint Programmes. UNDP was reported to have 130 joint programmes by the end of 2004, though the implications of this in terms of progress are unclear, as there is no baseline available for Consequently, this aspect is not included in reporting on the action plan for Danish cooperation with UNDP. With respect to harmonisation, there is consistency between country-level assessments and that of the UN Mission in New York, which find progress to be adequate in terms of harmonising assistance concerning joint programming, reviews, reporting, procurement, joint strategic goal-setting, and formulation of common indicators. Thus, nine out of the Embassies 11 assessments of UNDP s participation in (government-led) donor cooperation, including harmonisation and alignment, apply the rating satisfactory. Also in the internal UN coordination, UNDP has taken the lead to promote simplification and harmonisation, in accordance with General Assembly resolutions to this effect. Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 53

56 UNFPA The section on UNFPA is based on the assessment prepared by the UN Mission in New York, the organisation strategy and reporting on the accompanying action plan, the 2005 MOPAN study, a Danish-funded study of UNFPA s RBM system, and minutes of High-Level Consultations. In none of the Danish programme countries is UNFPA among the three multilateral organisations, with which Embassies have the closest cooperation, and UNFPA has therefore not been assessed at this level. Overall, the organisation receives a good assessment; the UN Mission gives it a satisfactory rating overall, and progress on Danish objectives in the action plan is rated satisfactory on seven out of ten indicators, while three are less satisfactory or cannot be measured. According to the MOPAN country reports, UNFPA has a generally positive image and is a respected agency in its field of activities: The perception of UNFPA at country level is that of a small, rather centralised, organisation with particular strengths in policy dialogue and advocacy, making efforts towards PRS alignment and interagency coordination, but in some countries constrained by its comparatively small offices and limited predictable funding. Strategic framework The UN Mission rates as very satisfactory the extent to which UNFPA has a clear and operational strategy to promote its own development objectives. This is qualified by a reference to the Multi-Year Funding Framework (MYFF) , which is based on the strategic direction that came out of the organisation s transition process initiated in UNFPA is seen to have come a long way in formulating clear goals and targets, which is reflected in its strategic framework (MYFF). The performance of UNFPA in terms of clear and precise goals and targets is also assessed as satisfactory. Administrative effectiveness Internal administrative effectiveness, quality of RBM systems, and adequacy of financial systems are all rated satisfactory by the UN Mission. In the action plan, the RBM dimension is given the highest rating fulfilled based on the fact that a Management for Results Framework is integrated into the wider MYFF Framework. The reporting on the action plan, however, rates administrative effectiveness as less satisfactory, because the indicator chosen as a proxy for this dimension relates to cost recovery. The main argument in the action plan is that performance in both 2003 and 2004 was below the targets defined. Further evidence on the RBM systems is found in a Danish-funded study undertaken in Conclusions from the study are consistent with the assessment by the UN Mission. While UNFPA is seen to face the same challenges as UNDP (also covered by the study) namely responding to complex and evolving external expectations and sustaining internal commitment to building a results-based culture the study highlights a range of very important features, which places UNFPA s RBM systems in the more advanced group of multilateral RBM systems. These include relatively high reliability of indicators, audits more targeted towards high-risk country offices, a system that allocates resources according to country typology, the development of a policy for rewards and recognition, and a results-based budgeting initiative in progress. While more can be done to strengthen the objectivity and impact of reporting, the organisation is found to have come a long way in this process already. Partnership, coordination, harmonisation and alignment The UN Mission assesses performance in these dimensions as satisfactory, although scope for improvement remains as regards engagement in the PRS process. This is consistent with reporting from the High-Level Consultations and with the Executive Director s annual report, which states that only 50% or 12 out of 23 country offices participated in the PRS process where this was relevant, and that strengthening of country offices was needed. This dimension is also assessed in the action plan, where the performance is rated satisfactory based on an indicator of UNFPA participation in PRS that increased from four in 2003 to 12 in 2004, and an increase in participation in SWAps from 22 in 2003 to 27 in From the MOPAN country reports, mixed views emerge regarding UNFPA s alignment with national strategies, policies and procedures. In five country reports and the majority of questionnaires, UNFPA is perceived to have become more responsive to government requests and proposals in recent years, and to be more committed to a country-led approach. However, alongside these reports of PRS alignment, there is also a view that UNFPA remains focused on its own projects and tends to insist on its own procedures for reporting, accounting and procurement. 54 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

57 In terms of coordination, the MOPAN report reveals a mixed picture. UNFPA is perceived to be an active and regular participant in local donor coordination groups, but less good at operational coordination. Three MOPAN country teams explicitly suggest that UNFPA will need to invest more effort in this area in the future. Lastly, on harmonisation, the MOPAN country reports lack information about UNFPA s attempts to harmonise strategies and procedures with other aid agencies in their countries of operation. MOPAN country teams seem more knowledgeable about UNFPA s general commitment to harmonisation at the policy level; references to concrete steps towards harmonisation with other development agencies are rather isolated and specific. However, the limited information available suggests a perception of cautious progress towards harmonisation. This latter assessment again demonstrates the need for a variety of assessment tools and angles to ensure a realistic and fair picture of the performance of multilateral organisations. It also highlights the desirability of closer donor coordination on this issue to gain deeper insights at less cost. In the opinion of the UN Mission, UNFPA is strongly committed to the simplification and harmonisation process and sees several advantages therein, as an organisation with limited capacity at the country level. To strengthen the relevance, timeliness and efficiency of efforts at the national level, UN- FPA is planning a comprehensive regionalisation. This will clearly be an issue to monitor closely in future reports. IFAD This review of IFAD benefits substantially from both the results of an independent joint evaluation and a Danishfunded study on the organisation s RBM system finalised in The assessment made by the Embassy in Rome and the reporting on the action plan have also been important, and this has been supplemented by minutes of High-Level Consultations and Board meetings. As none of the Embassies in programme countries have listed IFAD among the three multilateral organisations with which they have the closest cooperation, assessments of the organisation s country-level performance are not available. The overall performance of IFAD is assessed as satisfactory by the Embassy in Rome, and progress has been satisfactory in all three areas reviewed for this report: 1) policy, 2) partnerships and coordination, and 3) administrative effectiveness. It should be noted, however, that the rating satisfactory refers to progress towards objectives, and not to fulfilment of objectives. This is consistent with what emerges from the analysis below, where more nuances are inferred from the various monitoring and assessment data and information. It is also in line with decisions, taken in connection with the replenishment, to push ahead with various reforms that would address many of the issues highlighted in this analysis. Strategic framework The various documents reviewed show support for IFAD s mandate, but also a common concern with IFAD s business model and the lack of selectivity and focus in its activities. The independent evaluation points to a danger that IFAD s agenda has become too broad and distant, and to the need for clear criteria for selecting or turning down projects: IFAD s niche has become less clear and therefore it needs to clarify its role. The lack of selectivity and focus in IFAD s operations was also pointed out in the Danish-financed 2005-study of IFAD s RBM system, which found that IFAD s business model does not ensure selectivity, focus or a clear results framework. The activities of IFAD are found relevant both by the Embassy in Rome and by the evaluation. The latter states that IFAD continues to emphasize area development as few other actors do, and it is the only international organisation established to focus exclusively on the situation of the rural Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 55

58 poor, particularly the poorest. This mandate continues to be relevant and will likely remain so in the foreseeable future. Administrative effectiveness According to the evaluation, the overall effectiveness of IFAD is hampered by weak management processes, leadership and governance, and lack of incentives for innovation. Failure to foster trust between management and other staff is said to have led to poor vertical and horizontal communication. The Embassy in Rome notes an apparent need for organisational improvements, especially concerning internal coordination and priority-setting. In some of the assessments available, the absence of measurable objectives and targets is raised as a concern, despite improvements following the recent introduction of the Results and Impact Management System (RIMS). RIMS has significantly strengthened the RBM capacity, but the full effects have yet to be seen. Especially, the link between RIMS and the budget process should be strengthened to reap all the potential benefits, while measurable objectives and targets also need to be enhanced. The Embassy in Rome stresses that efforts are made to improve results-based reporting in the coming years through further development of corporate-level targets, performance and impact indicators, and strengthening of country-level reporting. This is an issue to be monitored over the coming years. of weak arrangements that lack strategic relevance. There are neither objectives nor indicators to monitor performance, and IFAD has failed to compile systematic evidence that partnerships lead to greater impact or effectiveness. The assessment by the Embassy in Rome is more positive. While underlining the readiness of IFAD to engage itself constructively in this dimension, the Embassy mentions that the determined pursuit of a pro- poorest-of-the-poor role for IFAD and an increased emphasis on innovative projects both legitimate objectives in the Danish view are factors that might complicate the drive towards country ownership and joint programming. Regarding IFAD s support for PRS alignment and MDG goals, the reporting on the action plan characterises performance as satisfactory. As borne out by other reporting by the Embassy in Rome, this assessment reflects the need to take account of the difficulties associated with IFAD s lack of field presence (as well as the perfunctory treatment of needs in the agriculture sector in most PRSs). For IFAD to enhance impact at the country level, including a more active contribution by the organisation to alignment and harmonisation, its country-level capacity must be strengthened, but resource implications of this are not easily managed. As indicated by the Embassy in Rome, precise goals or targets are not set in the annual work programme. This is also pointed out in the study of IFAD s RBM systems from That study found that IFAD does not yet have a system in place to generate results information that is sufficiently accurate, reliable and high-quality to produce reporting fully capable of substantiating all Danish monitoring information. It is, however, recognised that there is commitment and work in progress. An important missing element is a comprehensive quality assurance system. In this respect, it is worth noting that, although the independent evaluation considered the performance of IFAD s overall portfolio as comparable to that of other IFIs, including IDA, only nine of the 20 sampled projects included in the evaluation were found to have a high or substantial level of efficiency. Partnerships, cooperation, harmonisation and alignment The weaknesses permeating much of IFAD s work are also visible in this area. The assessment of the evaluation is that the current approach to partnerships has led to a proliferation 56 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

59 WFP The assessment of the World Food Programme (WFP) is based on the assessment form prepared by the Embassy in Rome, reporting on the annual action plan accompanying the organisation strategy, an independent joint evaluation of WFP s Enabling Development Policy, documents prepared in connection with the High-Level Consultations, and minutes of Board meetings. None of the Embassies in programme countries have ranked WFP among the three multilateral organisations with which they have the closest cooperation. Consequently, the organisation has not been assessed at the country level. Overall, the organisation receives a good assessment. The Embassy in Rome gives it a satisfactory rating in all dimensions, even a very satisfactory in respect of the adequacy of the financial system. In terms of progress in meeting Danish development objectives under the action plan, progress is fulfilled on three goals, satisfactory on six, and less satisfactory in one dimension, namely WFP s role concerning structural reforms. The evaluation of WFP s Enabling Development Policy (EDP) confirmed that WFP has managed to put in place the policy directives envisaged by the EDP, and this has increased the relevance of WFP s interventions overall. EDP has also improved WFP emergency operations and reduced the risk of undermining future development efforts, all of which point to an effective and relevant organisation. Strategic framework The Embassy in Rome finds that WFP performs satisfactorily both with respect to having a clear and operational strategy to promote its development objectives, and as regards setting clear and precise targets in the organisation s annual management plans. The Strategic Plan of WFP is considered quite elaborate with specific policies supporting individual priorities. As mentioned by the Embassy there is no direct connection to operations, which are implemented on the basis of country programmes/projects in accordance with assessed needs (and proposed/updated at various times). In this respect, it should be noted that emergency and recovery operations today constitute the bulk of WFP operations. A key objective in the action plan is to ensure a clear focus of the organisation, similar to that in other organisations, and in this respect WFP s performance is adequate both in terms of narrowing down the thematic areas of priority, and in terms of limiting development resources to countries in greatest need. Indeed, 86% of development resources went to the most disadvantaged countries in 2004, well in line with the target of 90% by WFP s Biennial Management Plan contains goals and targets related to management in the form of nine management priorities. In addition, specific targets with indicators for fulfilment are set for each organisational entity. Overall, the Embassy finds that goals and target-setting reflects the rather advanced state of results-based management (RBM) within WFP. Administrative effectiveness Internal administrative effectiveness, quality of RBM systems, and adequacy of financial system are all rated satisfactory by the Embassy in Rome. On the financial systems, the rating is even very satisfactory in recognition of recent efforts to improve operational efficiency and effectiveness through more flexible rules and procedures. In terms of RBM, major progress was made during 2004 in terms of increased emphasis on impact and outcomes, and WPF continues to work to improve managerial oversight and reporting, especially concerning target-setting. The organisation reports on major results achieved in connection with the presentation every two years of a new biennial budget proposal and in the context of the organisation s Annual Performance Report, but otherwise there is no systematic reporting on internal administrative effectiveness. This assessment is in line with the rating satisfactory in the action plan. In the qualitative comment it is noted that according to the Management Plan for , WFP plans to finalise corporate implementation of RBM in the biennium (through the consolidation of performance-based management and accountability-reporting functions). This too seems consistent with the recommendation in the evaluation of WFP s Enabling Development Policy, that the capacity to demonstrate results and analyse efficiency needs to be strengthened. This implies implementing monitoring and management information systems and developing tools and procedures for decision making. There is thus recognition of considerable progress, but also of room for further improvement in this area. Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 57

60 Partnership, coordination, harmonisation and alignment The most comprehensive assessment on the above issues comes from the joint donor evaluation. It concludes that solid partnerships are key to success and sustainability, and to extend the impact of WFP interventions beyond the local project level, but partnerships rarely go beyond ad hoc arrangements. The limited capacity of the country offices is cited as one reason for this. According to the evaluation, partnership with the UN system shows promising results, but has limited effects at project level, while partnership with other donors at country level is considered disappointing. The evaluation explains this by the policy decision of a few major donors not to support WFP s developmental work and by donors preference for supporting sector-wide programmes rather than providing cash resources for what they perceive as WFP projects. According to the action plan, the goal pertaining to partnership and cooperation has been fulfilled, the indicator being that new country programmes presented to the Executive Board have been prepared with reference to PRSPs and SWAps, wherever such planning instruments exist. In terms of coordination, the action plan rates performance as satisfactory with the following qualitative comment: WFP participates constructively in CAP [Consolidated Appeals Processes] cooperation, not only in the food sector, but also in logistics. WFP continues to provide leadership in making available common humanitarian support services to other UN agencies (e.g. UNJLC). Lastly, through the lenses of the Embassy in Rome, WFP performance is satisfactory both with respect to support for PRS at the country level, and in terms of progress towards harmonisation in the form of joint programming, reviews, reporting, procurement, jointly strategic goal setting, and formulation of common indicators. However, the Embassy also states that there is no systematic reporting on support for PRS at the country level or aggregation of data at the corporate level, but improved indicators have been introduced in connection with the biennial management plan for A special unit in the Policy and Strategic Division has been established in 2004 with a view to strengthening PRSP/SWAp participation (head of unit seconded by Denmark). UNAIDS The assessment of UNAIDS is based on a range of documents, including the 2005 MOPAN study, the assessment by the Danish UN Mission in Geneva, summary records from Nordic consultations, minutes from Board meetings, and comprehensive reporting by the UN Mission to the MFA headquarters. None of the Embassies in programme countries have ranked UNAIDS among the three multilateral organisations with which they have the closest cooperation. Consequently, the organisation has not been assessed at the country level. Since the action plan accompanying the organisation s strategy is relatively new, reporting on its implementation has yet to be submitted. Accordingly, these documents serve mainly as background information. Overall, the UN Mission gives UNAIDS a satisfactory performance rating on all aspects assessed, and a very satisfactory on harmonisation. And overall, MOPAN country teams describe a rather small programme with limited resources, which given these constraints does a good job of facilitating and supporting national efforts as well as those of the UN agencies and the donor community to combat HIV/AIDS. Strategic Framework In its assessment the UN Mission expresses satisfaction with an improved Unified Budget and Work programme (UBW) for the coming biennium, which is based on only 16 results for the joint programme and 16 indicators, as against 487 in the previous biennium. Performance on this aspect is therefore rated satisfactory. According to the MOPAN study, UNAIDS is particularly effective in advocacy, policy dialogue and in terms of interagency partnerships, especially through its promotion of the Three Ones 10. The study concludes that its perceived performance is broadly in line with its mandate. There are variations at country level, however, as perceptions are more favourable in those countries with a larger UNAIDS office, suggesting that its performance depends to a great extent on its level of human as well as financial resources. 10 The Three Ones initiative: one agreed HIV/AIDS action framework that provides the basis for coordinating the work of all partners; one national AIDS coordinating authority, with a broad-based multi-sectoral mandate; one agreed country-level monitoring and evaluation system for HIV/ AIDS. 58 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

61 UNAIDS acknowledges the challenges sometimes faced at the country level, and is presently considering ways to improve the situation. These include a planned restructuring of the UBW with the purpose of channelling a considerably larger share of resources to the country level. Administrative effectiveness Organisational and administrative effectiveness, quality of RBM systems and adequacy of financial system are all rated satisfactory by the UN Mission. The development of the new UBW based on fewer key results and indicators as well as the costing of these is highlighted as a major improvement in the Secretariat s RBM. Future plans for the development of an Accountability Framework for the UBW, are also underscored as an encouraging development. This positive assessment is echoed by the Programme Coordinating Board, which commends UNAIDS for strengthening the results-based management framework of the UBW However, the Board also requests UNAIDS to take further steps to strengthen the UBW as an instrument for UN system coherence to capture country-level financing and harmonisation with a strengthened RBM approach. This dimension is also included in the action plan, which has as one of its objectives: Develop a proposal on how to strengthen the UBW as an instrument for UN System coherence to capture country-level financing, an example of a very well-aligned objective. This is consistent with the assessment in the MOPAN country reports, which describes UNAIDS as perceived to be actively engaged in harmonisation efforts. In particular, most MOPAN country teams acknowledge UNAIDS efforts in promoting the principle of the Three Ones. Moreover, there is progress towards aligning its programmes with national poverty reduction and other strategies. On the other hand, the perception of Interagency coordination is more varied but overall positive; nearly two thirds of those who expressed a view in the aggregated MOPAN questionnaires, considered that UNAIDS participates actively in donor coordination activities, and a majority were of the view that its interagency coordination had made significant progress over the last three years. Unsurprisingly, this performance is to some extent determined by staffing levels an insight that may be valid for other agencies and other issues. The adequacy of the financial system is rated satisfactory, and as UNAIDS is administratively supported by the WHO, financial data undergoes external and internal auditing according to WHO s rules and regulations. Partnership, coordination, harmonisation and alignment This is probably the dimension with the most comprehensible assessments in the reviewed documents. The UN Mission s assessment is that progress towards harmonisation concerning joint programming, reviews, reporting, procurement, joint strategic goal-setting, and formulation of common indicators is very satisfactory. Indeed, UNAIDS played a key role in establishing a Global Task Force in March 2005 to improve coordination among bilateral and multilateral donors and to align support for national AIDS responses. Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 59

62 Box 14: Using multilateral organisations own RBM and evaluation systems In line with international commitments to reduce transaction costs in development cooperation, Denmark like many other bilateral donors is interested in increasingly relying on performance reporting provided by multilateral agencies to meet its information needs for management and accountability of multilateral development cooperation. It is a prerequisite for this approach that reliable and highquality information is provided by the agencies, and with a view to optimising the results reporting systems of the agencies Denmark has initiated the development of a concept for Assessing results reporting in multilateral organisations. So far the initiative has included two studies finalised in 2005 of results-reporting systems in IFAD and OHCHR (prepared by Kabell Konsulting) and another two studies initiated in 2005 of UNDP and UNFPA (undertaken by Dalberg). It is hoped that the preliminary concept paper will develop into a common approach by bilateral donors to assess the reporting systems of multilateral organisations. DfID and Denmark have already agreed in principle to work together to develop a joint approach to the assessment of multilateral performance management, using DfID s work on resultsbased management (MEFF) and Denmark s work on results reporting as the point of departure. Other donors, mainly belonging to the MOPAN group, have expressed their interest in participating as well. Running in parallel with this initiative, Denmark in the DAC Evaluation Network has initiated a New approach to evaluating multilateral organisations, advocating the principle that assessments of multilateral organisations should be based upon the evidence and documentation produced by the organisations own monitoring and evaluation systems. The approach has been tested in a peer assessment of UNDP s evaluation function as the first of what is hoped to be a series of assessments of multilateral organisations evaluation systems, focusing at independence, credibility and utility. The second assessment, of UNICEF, was initiated in late Perspectives This chapter has focused on the multilateral organisations formulation of clear objectives, strategies, goals and targets; their organisational and administrative effectiveness; and finally their country-level programme and development effectiveness with regard to coordination, harmonisation and alignment. Seven organisations have been selected for indepth review: the World Bank, European Commission and UNDP are the three organisations with which the Danish Embassies record the most intense cooperation, while UN- FPA, IFAD, UNAIDS and WFP are important partners in Danish development cooperation, and have drawn particular attention in 2005, since they have either been subject to an evaluation, a study of their results-based management (RBM) systems, or have been included in the joint donor survey of multilateral organisations (Multilateral Organisations Performance Assessment Network (MOPAN) (in some cases in more than one of these exercises). In all the organisations assessed, efforts are underway to improve the formulation of objectives, strategies, goals and targets consistent with a results-based management approach. Among the seven organisations particularly looked at in this chapter, UNFPA and UNDP are seen as those that have come the furthest, but a number of other organisations are making clear headway towards in defining strategies to achieve objectives. Many organisations have either recently concluded organisational reforms or are in the process of reforming. It is too early to make firm conclusions about the outcome of these changes, but available assessments suggest overall satisfaction with efforts made so far. Improving the quality of resultsbased management systems represents a particular challenge not easily dealt with in all organisations, as it demands the development of a results-oriented corporate culture. Although Embassies, multilateral Representations and departments in MFA express general satisfaction with multilateral organisations efforts to support harmonisation and alignment, assessments vary considerably depending on the organisation concerned. The issue is particularly raised by Danish Embassies in relation to the World Bank and EC, whereas the assessment of UNDP on this dimension is more positive. In many cases improving the support for PRS processes and increasing harmonisation efforts is the single most 60 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

63 important challenge to the organisation and the dimension most important for Embassies and Representations to monitor. Country-level presence is highlighted as an issue in relation to several of the organisations, including the World Bank, IFAD, WFP, and UNAIDS. While the World Bank is considered a leading actor in development policy and cooperation, according to the assessment, further decentralisation is needed, both by moving more staff from headquarters to country offices and by strengthening decision-making powers at the country level. Selectivity and focus of activities is discussed in relation to some of the smaller organisations. While the activities of IFAD are found relevant, there is concern that its agenda has become too broad. In some cases, divergent views appear to exist between the multilateral unit responsible for the cooperation and the Embassies. This is illustrated in the assessments of UNDP, which is recognised by the UN Mission in New York for focusing its activities, whereas some Embassies deplore the fact that budgets have been reduced, possibly as a consequence of the same process. This observation highlights the importance of a comprehensive assessment framework with room for validating assessments and understanding the parties variety of particular perspectives. Furthermore, assessments of the same organisation may differ substantially among Danish Embassies. While the Embassies assessment of the EC s role in harmonisation efforts is more critical than in the case of several other organisations, the Embassy in Burkina Faso presents a favourable picture of the Commission s role, rating its efforts as very satisfactory. The same variation is seen in assessments of harmonisation efforts made by the World Bank, ranging from unsatisfactory in one of the programme countries to very satisfactory in another. Accordingly, unequivocal trends are difficult to pinpoint, and conclusions about the performance of a particular organisation must be made with great care. Some methodological reservations are in place when discussing the findings. Although the assessments made by bilateral Embassies are believed to be more reliable than in 2004, because Embassies are concentrating on the organisations they know best, a positive bias may be built into this approach. For instance, some Embassies known to have difficult relationships with particular organisations (e.g. the regional development banks) have chosen not to report on this, but have instead selected three organisations with which they enjoy close collaboration. This issue will have to be addressed in the further development of the assessment tools, as it is obviously at least as important to collect adverse as favourable field-level experience. The MOPAN survey suffers from some of the same shortcomings as assessments made by bilateral Embassies: it is a perception-based exercise, and participant Embassies only report on the organisations with which they cooperate. Accordingly, all assessment tools must be considered work in progress. The general quality of assessments is better than in 2004, but uncertainty concerning the interpretation of some of the questions, and particularly as regards the use of ratings, seem to persist. Sometimes an Embassy rates the performance of an organisation as satisfactory, yet accompanies this with a series of critical comments, while another Embassy providing fairly similar comments will use the rating less satisfactory. It may be that a satisfactory rating with a slightly negative qualitative comment simply indicates that there is reason to monitor the performance of that particular agency more closely on a particular dimension. To narrow the scope for misunderstandings and varying interpretations of the same questions, however, more must be done to explain the questions. While refinement of assessment tools remains an important task, the single most important challenge for performance assessment in relation to multilateral development cooperation is to support the strengthening of the organisations RBM and evaluation systems with a view to gradually relying on performance information produced by the organisations themselves. As opposed to spending resources on the collection of data from a range of sources outside the organisations, this would seem more in line with international commitments to reducing transaction costs in development cooperation. It is a prerequisite for this approach, however, that reliable and high-quality information is provided by the organisation. Seeking to optimise the results reporting systems of the agencies, Denmark has intensified the dialogue with the agencies as well as with other bilateral donors joining in this endeavour (see box 14). Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 61

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66 3. AID MANAGEMENT GUIDELINES & COMPETENCE DEVELOPMENT 3.1. Aid Management Guidelines All policies, strategies, management tools and technical guidelines are available in electronic versions at the Aid Management Guidelines (AMG) website ( The purpose of the site is to ensure easy access by both MFA staff and external users to key documents related to the management of bilateral and multilateral development cooperation. Since the site was improved in late 2004, positive feedback has been received from many other donor organisations, advisers, consultants, researchers, NGOs and MFA staff in headquarters and in the Embassies. It is frequently mentioned that no similar site is found for any other donor agency, and the subscription function is particularly appreciated, as it ensures that users are informed about all updates. Summaries of major changes are available, when key documents are revised. By late 2005, a total of 1018 persons were subscribing to the news service of the site, while an average of individual users ( unique browsers ) were visiting the site every month. This is considered highly encouraging, and when looking at the most visited documents, it appears that key technical guidelines such as Guidelines for Programme Management, Guidelines for Project Management and Guidelines for Completion Reports feature at the top of the list. This illustrates the importance of the site for the practical implementation of Danish development cooperation. The AMG hotline (amg@um.dk) introduced in September 2004 has increasingly been used both by external and internal users. In addition to an unrecorded number of telephone calls, approximately 100 requests for assistance were received by mail during Of these, about 50% came from MFA staff (mainly in the Embassies), while another 50% came from external users. Consultants dominate the group of external users of the hotline, and NGOs and students make up the second and the third largest groups followed by Danida advisers and other international development agencies. About 75% of external requests came from Danish users, while 25% were from international users. Close to one third of all users requested assistance to find a particular document or wanted to know what strategies or guidelines would apply to a particular situation. The most frequently asked questions about the interpretation of guidelines related to Guidelines for Completion Reports (revised in late 2005 in response to this uncertainty among the users), while other common questions related to the requirements concerning Steering Committees in major programmes, procedures for undertaking reviews, and monitoring issues. It is crucial for the reliability of the AMG website to avoid confusing users with old versions of guidelines and strategies elsewhere on the MFA website or the intranet. During 2005, an effort was made to coordinate the availability of documents at the AMG website with those available at other subsites of the MFA website ( Danida publications and Danida Networks ) and at the MFA intranet ( T-Rex ) Competence Development Danida s Centre for Competence Development (DCCD), in collaboration with several units in MFA, organises training courses for MFA staff in Copenhagen and at Embassies. In particular, the Department for Quality Assurance, Technical Advisory Services, the Department of Business Cooperation and Technical Assistance, the Policy Department, and the Evaluation Department have contributed extensively to DC- CD s training courses. In 2005, DCCD organised a total 16 training courses related to administration of development cooperation for staff at headquarters. This includes staff preparing for posting overseas. The courses covered topics such as Aid Management Guidelines, aid modalities, terms of reference, financial management, programme database (PDB), contract preparation and management, etc. In total, 13 thematic training courses were carried out covering topics such as human rights, public sector reform, business sector development, conflict management, and public finance management. Finally, DCCD conducted seven pre-departure training courses for both MFA staff and Danida advisers. Training for staff posted at Embassies include a five-days Get to Know Danida course for locally-employed programme officers and a two day course on Institutional Capacity Development for Danish Embassies and Representations in Asia. All staff working with Danish development cooperation (including Danida advisers) participated in an e- learning course on anti-corruption. In total, 867 participants completed the course. Furthermore, staff at headquarters and at the Embassies participated in training courses on Poverty Reduction Strategies and Sector-Wide Approaches, respectively. These were organised as joint donor training through the donor network, Train4dev. 64 Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida

67 Knowledge sharing and competence development in relation to sector specific issues is provided through the internet-based professional networks, as well as the sector seminars (see below). The networks are developed and maintained by Technical Advisory Services in collaboration with DCCD. In 2005, four new sector networks were introduced, so that a total of eight sector networks are now available. Furthermore, four themes (ICT, HIV/Aids, Climate Change, and Disability) were added. Competence development is also undertaken directly by the various units in the Ministry. Thus, in preparation of the introduction of commitment schemes in January 2006, the Department for Quality Assurance has carried out training of headquarters and Embassy staff in the new requirements for financial management. All Embassies in the 15 programme countries and Ramallah, Kuala Lumpur, Bangkok, and Pretoria have been offered training in commitment schemes (some of them in the form of regional seminars). In addition to this, all relevant departments in headquarters have participated in courses on commitment schemes, and the UN Mission in Geneva has also benefited from such training. The PDB group has conducted PDB training at the Embassies in Jakarta and Kuala Lumpur, at the Danish UN Mission in New York and at the Embassy in Washington. Finally, the revised concept for performance reviews introduces competence development as an integral part, and the three Embassies in Kampala, La Paz and Ouagadougou, visited during the second half of 2005, were all offered a one-day workshop in harmonisation and alignment, adjusted in each case to fit the particular local conditions. The Department for Business Cooperation and Technical Assistance have conducted training workshops on procurement, contract management and EU tendering in Kuala Lumpur, Bangkok (incl. Phnom Penh), La Paz, Managua, Cotonou, Quagadougou, Accra, Kampala, Lusaka and Dar es Salaam. Technical Advisory Services have conducted five sector seminars with the participation of Danida advisers and MFA staff. The seminars topics were: Good Governance (Denmark), Agriculture and Fisheries (Kenya), Education (Denmark), Transport (Denmark), and Environment (Hanoi). Training activities by the Evaluation Department are mainly targeted towards the Danish development community (universities, associations of researchers, public meetings for consultants, NGOs, etc.), but during 2005 the department has also offered training at the International Programme for Development Evaluation Training (IPDET) at the Carleton University in Ottawa, Canada. Annual Performance Report Ministry of Foreign Affairs of Denmark, Danida 65