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FM Sector: Towards the 4th High Level Forum on Aid Effectiveness


The purpose of this message is to update you on the FM Sector's recent contributions towards the 4th High Level Forum (HLF-4) on Aid Effectiveness in Busan, Republic of Korea. As you know, international strategic partnerships represent one of the implementation support mechanisms of the FM Sector Strategy FY11-13.

HLF-4 and the Bank. The international aid effectiveness agenda has aimed to improve the delivery and management of aid, with the objective of enhancing the impact of development assistance on outcomes such as reduced poverty, better health and education, and stronger institutions in partner countries. The Bank has embraced and championed the global aid effectiveness agenda, and continuously improved its own processes to implement aid effectiveness principles at the country and institutional levels. However, the development landscape is changing - at the same time that the financial crisis is impacting the provision of aid by traditional donors, a broader set of development actors and approaches is emerging.

At the 4th High Level Forum (HLF-4) on Aid Effectiveness in Busan, November 29 to December 1, 2011, the international community will have an opportunity to take stock of progress on the international aid effectiveness agenda since the 2005 Paris Declaration on Aid Effectiveness and the 2008 Accra Agenda for Action, and forge a new consensus on development partnerships going forward. In this context, the Bank’s emerging priorities for HLF-4 focus on country leadership and ownership, development partnerships beyond aid, and transparency for results. The Bank will also contribute to raising the profile of the agenda to make development support more effective in fragile situations.

FM Sector's Role. As part of country leadership and ownership, the Bank supports the strengthening and use of country systems, including Public Financial Management (PFM) systems, with the ultimate objective of transforming development support into sustainable results. Among other objectives, the effective operation of PFM systems and oversight institutions is necessary for fiscal transparency.

Under the umbrella of the OECD Development Assistance Committee (OECD-DAC)’s Working Party on Aid Effectiveness, a Task Force on PFM, co-chaired by the Bank’s FM Sector, was established in 2009 with the objective of producing guidance to help accelerate progress in donors’ use of country systems, facilitate the strengthening of country systems, communicate better the benefits of using country systems, and involve a greater number of stakeholders (Parliaments, CSOs) in overseeing the strengthening and use of country systems.

Recent Outcomes. The Task Force on PFM met in Manila last week, hosted by the Asian Development Bank. More than 60 representatives of partner countries, multilateral and bilateral development organizations, professional bodies, parliaments and civil society participated at the event. The rich discussions led to the following important outcomes:

1. "Political" messages, recommendations and principles for HLF-4, with a focus on PFM for Effective States, as outlined in the following Draft Manila Consensus on PFM:

Manila Consensus on PFM and Final Draft Principles 

2. Discussion for finalization of most Task Force's key deliverables, with a focus on Using Country Systems, Assessing Country Systems, Capacity Development for Reform, and Oversight Institutions for Accountability.

Summary status: Task Force on PFM June 2011 Deliverables 

Link to documents:

3. Endorsement of the attached MoU between Development Partners and the International Federation of Accountants (IFAC) for strengthening the accountancy profession in emerging and developing countries. The MoU had been endorsed by the IFAC Board in San Francisco on June 2.

MOU IFAC Donors Final 

For further information regarding this note, please contact either Manuel Vargas or me.

Best regards.

Tony Hegarty.

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