The answer consists of four parts: The answer consists of four parts

The answer consists of four parts:

• The answer consists of four parts:

• A. The evolving agenda of participatory development

• B. The efforts to make aid more effective through new aid modalities

• C. The stronger emphasis on knowledge about state-society relations and politics in development.

• D. Bringing various groups of EC practitioners together

EC and other donors look for ways to make their aid more effective

• EC and other donors look for ways to make their aid more effective

• These efforts include among other things ways to:

• Align behind country policies (if these reduce poverty)
• Align behind country systems (if there are serious efforts to make these systems work for the poor)
• Reduce the burden on partners (through harmonisation)
• And move from government ownership to country ownership,
• And from mutual to domestic accountability

What are these new aid modalities

• What are these new aid modalities

• Budget support
• And the so-called sector wide approaches – or the EC’s Sector Policy Support Programmes – aren’t either

• What is new about these modalities?

• It’s not just about the money
• Nor about one input, instrument or tool
• It’s about and aid package,
• An aid package that applies the principles to make aid more effective

Growing realisation that politics can help explain where aid has been effective and where not

• Growing realisation that politics can help explain where aid has been effective and where not

• It matters to know:

• If and how state-society bargaining takes place
• Whether, how and around which interests citizens organise collectively
• How elites come to political settlements, for example over taxes, but also over the distribution of resources such as aid
• Whether poverty reduction strategies and sector policies have sufficient backing within government, or within groups in society,
• Etc..

• This knowledge is very country or context specific

In-house consultation on NSAs and NAMs

• In-house consultation on NSAs and NAMs

• Stock-taking of experiences in EC Delegations and development of country cases

• Ongoing EC consultations on budget support (Green Paper process)

• EC redesign of budget support guidelines

• NSA related work in the Structured Dialogue, evaluations, studies and audits

• Ongoing work on improving the context analysis as part of the re-design of the Project and Programme Cycle Management

• Ongoing work of applying the Governance Analysis Framework in sector operations often involving macro economists and sector specialists

• NSA related initiatives related to Domestic Accountability

• From this work emerges one core message and three types of guidance:

• One core message: pay more attention to relations between state and non-state actors, and balance the support accordingly

• Four fundamentals and operational principles

• Step by step operational guidance

• Smart guidance to take the ambitious agendas further

Multiple questions remain about how to strategically engage with NSAs. Questions about:

• Multiple questions remain about how to strategically engage with NSAs. Questions about:

• The key features of the new aid modalities and the potential roles that NSAs can play

• How to identify opportunities for strategic engagement with NSAs in a particular context

• The entry points in the Cycle of Operations for engaging strategically with NSAs

• And how to combine EC tools, instruments and approaches

• Further step by step guidance deals with these operational matters.

This is a tall agenda. One that takes time, and one that will be demanding to implement.

• This is a tall agenda. One that takes time, and one that will be demanding to implement.

• Therefore, further guidance is about developing smart partnerships to tackle these interlinking agendas:

• Joint analysis and knowledge development with other donors

• Smart funding arrangements to underpin a strategic approach

• Ensure cooperation and linkages between non-state actors and other domestic accountability actors

• Smart partnerships with local governments

This Reference Document is not a final product

• This Reference Document is not a final product

• The guidance it contains will be shared through the Consultative Dialogue Process

• Other ongoing processes to tap into are the EC efforts to improve the coordination and pertinence of budget support, as well as the ongoing work on mutual and domestic accountability

• Through the Capacity4Dev Platform, it will promote further discussion, dialogue and blogging on experiences from the field

• This may contribute to improving the strategic and operational guidance on how to improve the EC’s engagement with state and society for development.