4. An Aid Effectiveness Baseline

Cambodia used the baseline survey on monitoring the Paris Declaration to reinforce the H-A-R Action Plan and to begin the process of developing national indicators and targets. This chapter builds on the discussion on H-A-R monitoring presented in Chapter Three and considers the survey exercise and the potential for the application of Paris Declaration indicators to the H-A-R Action Plan.

In May 2006 the OECD/DAC launched the first round of Paris Declaration monitoring. This section recounts the experience of conducting the survey in Cambodia and derives some policy implications. It then describes the process by which the Paris Declaration indicators will become an institutionalised component of the H-A-R implementation and monitoring framework, which will not only promote evidence-based aid management, it will also make future monitoring exercises more routine and more accurate.

Reflections on the Paris Declaration Monitoring Process

A coordinating team that comprised both CDC and development partner officials was established to support the monitoring exercise. This was no small task but a spirit of cooperation and a common sense of purpose ensured that Cambodia was able to locate this global work in a national context. This required that many definitional issues be addressed so that each partner could then report their own data with as much consistency as possible.

Emerging Good Practices

Localising the Declaration

The need to localize some of the indicators based on nationally-agreed definitions resulted in a good deal of innovation.

One notable output was a matrix that clarifies the nature and status of PIUs. This matrix was considered a good practice by the DAC and was posted on their website.

This work will be taken forward to develop a broader PIU Strategy for Cambodia.

It must be noted that this exercise proved to be very time-consuming, underlining the need to institutionalise this work if it is to be carried out efficiently in the future and then effectively applied to national aid management efforts. In particular, the following observations were made with regard to the monitoring exercise and were reported to the DAC through Cambodia's participation in the Working Party on Aid Effectiveness.

  • Many development partners do not have systems in place to routinely monitor the indicators;

  • Defining important terms and criteria such as coordinated technical cooperation, integrated PIUs, Programme-Based Approaches and missions was sometimes problematic;

  • The "point of delivery" methodology does not capture the extent to which some donors are channelling support through others, overlooking an important indicator of harmonisation;

  • Indicators 1 and 11, which are derived from a World Bank desk study, benefited significantly from a stakeholder discussion.

  • ODA to Government (Indicator 3) is not always a useful measure of alignment if support flows outside the Budget process (or is unrecorded by Government) or is implemented by NGOs

  • The extent to which Indicator 4 proxies capacity development was queried as the coordinated aspect may not be the most critical determinant of effectiveness.

Results and Policy Implications

While there may be some legitimate doubts regarding the integrity of the data, the overall trends are felt to be representative of the reality.

The results of the monitoring exercise are featured in the Cambodia chapter of the OECD/DAC Report on Paris Declaration Monitoring Survey publication, which was prepared in close consultation with the National Coordinator for the monitoring exercise and local development partners.

Not Such Good Practices?

Reporting Consistency

Although guidance was provided, the survey provided development partners with discretion in applying the definitions. This resulted in coordinated technical cooperation including arrangements in which development partners coordinate amongst themselves, not with Government. Similarly, attending a TWG was often thought to be sufficient in order to consider a project coordinated

In its global overview of the survey process the DAC noted the tendency to overstate progress and observed that this may result in a spurious lack of progress once better quality data is obtained in the future.

The Baselines and Targets that resulted from this work are reproduced below:

Table Seventeen. Baselines and Targets



2005 Baseline

2010 Target


Ownership Operational PRS


B or A


Quality of PFM systems


3.5 or higher


Quality procurement systems

Not available

Not applicable


Aid reported on budget




Coordinated capacity development




Use of country PFM systems (aid flows)


No target


Use of country PFM systems (donors)

44% of donors

No target


Use of country procurement systems (aid flows)


Not applicable


Use of country procurement systems (donors)

28% of donors

Not applicable


Parallel PIUs




In-year predictability




Untied aid


More than 86%


Use of programme-based approaches




Coordinated missions




Coordinated country analytical work




Sound performance assessment framework


B or A


Reviews of mutual accountability


Target achieved

Source: OECD/DAC Report on Paris Declaration Monitoring Survey (Cambodia chapter), 2006

The main policy related conclusions emerging from the monitoring exercise are summarised as follows:

  • More effective aid management requires significantly increased use of Government planning, budgeting, execution and reporting systems. This underlines the critical importance of the reform agenda;

  • There is a need to synchronise development planning and budgeting, chiefly through the PFM reform;

  • The very limited use that is made of PBAs limits progress that can be made on related issues such as predictable financing, reduced numbers of PIUs and uncoordinated technical cooperation;

  • Only 14% of ODA to Government was recorded as tied, suggesting that this need not be viewed as a priority aid management issue in Cambodia.

Not Such Good Practices?

Indicator 10 a flawed methodology?

The current methodology does not accurately record joint work as the DAC has acknowledged.

For Cambodia, QD15 = 568 total missions, 147 listed as joint (QD16). This came from a stock of 44 actual joint missions.

A better way to calculate indicator 10a may be: 44 / (568 147 + 44) = 9.4%. i.e. "Total incidents of joint missions / [Total of all missions joint missions (QD16 all partners) + total incidents of joint missions]". The numerator is the real stock of joint missions, the denominator the total stock of missions, with double-counting accounted for.

The DAC has introduced discounting as an alternative way of addressing the double-counting problem.

Institutionalising the monitoring exercise through the CDC Database & data audits

If the Government and its development partners are going to make practical use of the Paris Declaration then it must be fully institutionalised in the national policy framework. A major step toward localising the Declaration was taken in February 2006 when the Government approved its H-A-R Action Plan and in the latter half of 2006 further progress was made when the CDC Database was customised to routinely record progress against those indicators that can be recorded at project level (Indicators 4, 5, 6, 8, 9 and 10, see questionnaire in Annex 3). Indicator 7 on predictability can also be derived using aggregate projection and disbursement data provided by development partners.

Incorporating data collection and analysis into the database has the following advantages:

  • The monitoring exercise can be applied instantly to national aid management work, providing a practical and workable means of linking evidence to policy

  • Analysis can be undertaken on a sector basis to identify priorities for aid effectiveness work at a disaggregated level (see the box below and the Sector Profiles in Chapter 2, for example)

  • There is an ability to monitor progress either by 'point of delivery' partner or by the original donor source of funds

  • The on-line nature of the tool will allow for greater peer review and validation of the information that is provided by development partners.

Emerging Good Practices

Developing Systems for Routine Monitoring and Reporting of the Paris Declaration indicators

The CDC Database has been customised to record many of the Paris Declaration monitoring indicators. It also allows for point of delivery (implementing partner) to be (de-)activated so that all development partner funding (not just delivery) can be monitored (including flows provided to the non-Government sector if desired).

The advantage of this localized reporting, besides transparency, efficiency and increased application to local aid management efforts, is that individual development partners and/or sectors can be analysed separately. This allows for each development partner or sector to consider the areas in which they may prioritise progress on aid effectiveness.

Development Partner Analysis

Individual analysis on each partner (subject to confirmation of data integrity) might suggest, for example, that each development partner might place a higher priority on a particular indicator (e.g. use of PBAs for CIDA).


PD #4

PD #5a

PD #5b

PD #6

PD #8

PD #9

PD #10a

PD #10b

Coordinated TC

PFM system

Procurement system


Untied aid


Joint missions

Joint work



















Sector Analysis

Analysis across sectors highlights the relative priorities of health and transportation. In health, where a PBA is more established, more emphasis might be placed on joint missions, joint analytical work and more use of the PBA modality. For the transportation sector, more aid is tied, technical cooperation is uncoordinated and little use is made of Government systems.


PD #4

PD #5a

PD #5b

PD #6

PD #8

PD #9

PD #10a

PD #10b

Coordinated TC

PFM system

Procurement system


Untied aid


Joint missions

Joint work



















PD #6 indicates number of partially integrated PIUs and total number of projects

PD #8 indicates share of aid that is fully untied

PD #9 indicates disbursements on projects associated with a PBA

Further analysis of both sectors and development partners can be undertaken on specific indicators. Analysis of Indicator 6 on PIU integration, for example, shows that this may be an issue that some development partners and sectors wish to focus on, while for others it may not be a priority issue.

NOTE: The analysis presented in the chart above must be interpreted with caution. Much of the data is felt to be in need of validation. It is useful, however, to highlight the potential of this locally-developed technology so that this will encourage policy-relevant analysis to be made available in the future.

  • Routine monitoring makes the whole exercise much more efficient; reports can be instantly produced for national monitoring purposes or for reporting to the OECD/DAC.

  • The data collection exercise in early 2007 provided an opportunity to test the Paris Declaration monitoring functions of the CDC Database. The technology proved to be highly effective and an algorithm was designed so that project reporting could be aggregated to derive a set of indicators at either the development partner or sector level.

  • These indicators can now therefore be applied to the H-A-R Action Plan, with TWGs being asked to identify the indicators that are most relevant to them, together with appropriate targets.

While the system performed extremely well the actual data quality revealed that there is still a somewhat limited understanding of the Paris Declaration amongst many development partners. In many cases data fields were incorrectly filled or, in most cases, simply left blank, although many development partners were able to provide information that allows at least some results to be derived.

The overall concern of data quality, however, does raise question marks with regard to the DAC survey that was completed only six months earlier: if partners are unable to define, identify and measure coordinated technical cooperation on a project level in January 2007, for example, it is not clear how were they able to provide an aggregate figure in June 2006.

Indicator 10 provides additional grounds for caution in interpreting the 2006 data; the 2007 exercise highlighted that few development partners are able to record how many missions took place or the number of analytical pieces that were commissioned. The prospect of moving toward the use of joint missions as part of the transition towards PBAs is some way off. One alternative is to innovate in the manner in which these indicators are collected. Indicator 10a, for example, might be more easily recorded by monitoring the Head of Cooperation's diary to see which missions pass through the local office. For missions from headquarters a more coherent approach in donor capitals, possibly utilising the offices that coordinate travel arrangements, could report more routinely on mission activity from capitals and headquarters.

Emerging Good Practices

Institutionalised Monitoring

The Agriculture and Water TWG has established a website (www.twgaw.org) that includes information on its activities, including missions and analytical work.

The European Commission in Cambodia has indicated that it might be interested in using the CDC Database format for recording PD indicator 10a/b to develop their own system for recording missions and analytical work.

In both cases missions and analytical work will then be routinely recorded and up-loaded, including forward-looking schedules that will promote collaboration.

During the process of revising the analysis in this Report it was also noted that several development partners had significantly revised their Paris Declaration indicators. The motive or rationale for this significant revision after reviewing the first set of results is not clear but the overall experience of institutionalising the Paris Declaration monitoring exercise suggests that a dedicated data validation exercise with each development partner is required. This will build the understanding and provide the information that is required to monitor the Paris Declaration and then ensure that the evidence that is derived for policy-making purposes is accurate. It is therefore proposed that 'Paris Declaration audits' that adopt a 'learning by doing' approach be developed in the latter half of 2007.

Additional Indicators

While the Paris Declaration indicators can be applied to the Cambodia context, and the associated targets can be internalised into the H-A-R Action Plan, it is also necessary to keep in mind the need to develop indicators that reflect local priorities. In this regard, the Government proposes these additions:

Emerging Good Practices

Alignment with national priorities

Indicator 3 shows that 79% of aid flows to Government were recorded on the Budget, which is the Government's main tool for allocating and expending resources on national priority programmes, including those in the NSDP. The analysis in Chapter Two also shows that significant progress has been made at an aggregate level in aligning aid flows with the NSDP.

  1. First, the indicators will be tracked by sector, as well as by development partner (point of delivery). This will allow for relative priorities to be identified within TWGs as opposed to being set centrally;

  2. Second, an additional indicator will be established to monitor, at an aggregate level, how much development assistance is being disbursed through other partners. This indicator, which can also be monitored at sector level, will record the number of partnership agreements as well as the fund flow.

  3. In accordance with the H-A-R Action Plan, data provision by development partners will be undertaken more rigorously as part of the commitment to mutual accountability, including to hold data validation exercises with each development partner (and TWG, where requested).

The CDC Database allows for the routine monitoring of indicators that can be readily adapted and applied to the H-A-R Action Plan. This includes the ability to report on a sector-by-sector basis that will permit the decentralised identification of indicators and targets by TWGs (see, for example the four sector profiles in Chapter Two that present sector-specific Paris Declaration assessments). While it may therefore be felt by some practitioners that there may be a weak link between some of these indicators and aid effectiveness, the technology that has been locally developed provides the capacity to select those that are relevant.

The most immediate challenge that lies ahead relates to the ability to collect accurate information on each of the indicators. Regardless of the explicit link between the indicators, aid effectiveness and results, it is the Government's view that many of the indicators represent actions that will in any case lead to more effective business practices (e.g. joint missions, joint analysis) and therefore it acknowledges the utility of promoting and monitoring progress in each of them.

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