EuropeAidENGAGING STRATEGICALLY WITH

NON-STATE ACTORS IN NEW AID MODALITIES

SESSION 1Why this Focus on Non-State Actors in

Budget Support and SPSPs?

Brussels, 11 May 2011

EuropeAidPurpose of this session

Introduce a topic and a publication that seek to contribute to more effective aid

Answer the question why it is relevant to focus on more strategic engagement with NSAs when applying New Aid Modalities

Kick-start a seminar that will help enrich the tools and get a better feel of what is useful

EuropeAidStructure of this session

A. The new Reference DocumentB. The added value to and fit with other EC/EU

policies and agendas?C. What is the basic perspective of the

strategic and operational guidance you can find in this document?

EuropeAid

A. Content of the new reference document

Key question it seeks to answer: How can the EC

o engage strategically and operationally

o with both the state and non-state actors

o on various development related issues

o when it provides Budget Supporto or engages in Sector Policy Support

Programmes?

EuropeAidB. Where is the fit with other EC/EU policies or agendas?

5

EuropeAid

6

EuropeAid

7

1. More effective aid and New Aid Modalities

• EC and other donors look for ways to make their aid more effective• These efforts include among other things ways to:

o Align behind country policies (if these reduce poverty)o Align behind country systems (if there are serious efforts

to make these systems work for the poor)o Reduce the burden on partners (through harmonisation)o And move from government ownership to country

ownership, o And from mutual to domestic accountability

• New Aid Modalities include Budget Support and Sector Policy Support Programmes

EuropeAid

8

EuropeAid

ParticipatorydevelopmentParticipatorydevelopment

Development assistance includes support to and through NSAs

Development assistance includes support to and through NSAs

Development is a multi-actor participatory process

Development is a multi-actor participatory process

Development is a multi-stakeholder process where the central state is one of the actors

Development is a multi-stakeholder process where the central state is one of the actors

NSAs are not only implementing agencies but also promoters of democracy, justice and human rights

NSAs are not only implementing agencies but also promoters of democracy, justice and human rights

EU is committed to strengthening NSAs to fully participate in political, economic and social dialogue processes

EU is committed to strengthening NSAs to fully participate in political, economic and social dialogue processes

Civil Society is recognised in all its diversity

Civil Society is recognised in all its diversity

2. Participatory developmentand Non-State Actors

EuropeAid

Potential entry points for NSA engagement with the state

CLOUD CUCKOO

PRS - Informing and pushing for pro-poor policies

Monitoring the monitors - parliament

Monitoring the implementation (of the budget, of the policies, ..)

Encouraging pro-poor choices in the state budget

Contributing to the implementation of the policies

Etc….

EuropeAidYet in real life, many obstacles to overcome

ARE YOU KIDDING?

Is there political will behind pro-poor policies?

Does civil society have the capacities/interest to engage with the state?

Is there an enabling environment for Non-State Actors to participate?

Is the budget transparent? Does it reflect priorities? Is it credible

Is there an open and transparent dialogue with NSAs?

Do parliamentarians respond to demands from citizens?

EuropeAid

12

EuropeAid3. Understanding

state-society relations

• In order to overcome these obstacles, • And in order to make and more effective and

PARTICIPATORY• Two more P-words matter: POWER and POLITICS

• What affects the opportunities for NSAs to participate?• What are the relations between state and society?• Who holds power over whom?• Who exerts pressure on whom? Who influences whom? With

what means?• What are the resources, and how are these distributed?• What are incentives? Why is it difficult for citizens to work

collectively? (example: conditional cash transfers)• What is the history? The history of struggle? The history of

social or other movements? The history of repression? Page 13

EuropeAid

14

In other words:

• Better understanding of “politics” helps explain where aid has been effective and where not• A political economy analysis helps to understand:

o If and how state-society bargaining takes placeo Whether, how and around which interests citizens

organise collectively o How elites reach political settlements, for example over

taxes, or over the distribution of resources such as aido Who in and outside government backs poverty reduction

strategies and sector policies, if there are coalitions or not

o And whether there is a credible budget to cover the costs…

• This knowledge is very country or context specific

EuropeAid

• Such political economy analysis is already being promoted through:

o the Project and Programme Cycle Management process o The Green Paper process on the Future of Budget

Support and the inputs to the context analysis for the new guidelines

o And the Governance Analysis Framework for sector operations

15

C. What is the basic perspective of the guidance you can find in this Resource Document?

BASIC PERSPECTIVE:BASIC PERSPECTIVE:

Treat NSAs as actors

Treat NSAs as actors

Analyze state-society

relations systematically

Analyze state-society

relations systematically

Explore and support full

potential within and

beyond NAM

Explore and support full

potential within and

beyond NAM

Do no Harm- Prepared to

play new roles

Do no Harm- Prepared to

play new roles

Treat NSAs as actors in their own right

Treat NSAs as actors in their own right

Assess and analyze NSA interests, values, histories, incentives, roles, functions, governance structures

Assess and analyze NSA interests, values, histories, incentives, roles, functions, governance structures

Recognize the diversity of NSAs Recognize the diversity of NSAs 11

22

33

Treat NSAs as Actors

Incentivize continued learning Incentivize continued learning

Introduce systematically political economy and governance analysis

Introduce systematically political economy and governance analysis

Shift from a normative to an analytical approach

Shift from a normative to an analytical approach11

22

33

Analyze state-society

relations systema-

tically

Assess opportunities and necessities to engage with NSAs outside of the

context of new aid modalities

Assess opportunities and necessities to engage with NSAs outside of the

context of new aid modalities

Balance support for state and non-state actors in a purposeful way

Balance support for state and non-state actors in a purposeful way

Combine the full range of modalities and instruments in a strategic way

Combine the full range of modalities and instruments in a strategic way

Apply the principle of ‘sequencing’ of support to NSAs in the context of

NAMs

Apply the principle of ‘sequencing’ of support to NSAs in the context of

NAMs

11

22

33

44

Explore and support the full potential

of NSA involvement

in and beyond NAM

Prepare for playing new roles.

Prepare for playing new roles.

Systematically apply a ‘political economy approach’

Systematically apply a ‘political economy approach’

Avoid a technocratic approach to aid effectiveness and the role of NSAs

Avoid a technocratic approach to aid effectiveness and the role of NSAs

11

22

33

Do no harm –

Be prepared to play

new roles

EuropeAidEC New Roles

EuropeAid

The Approach Tools and guidance

•Treat NSAs as actors Mapping methodology Governance Analysis Framework RD: Methodological tool 1, 2, 6

•Analyze state-society relations systematically

Governance Analysis Framework RD: Methodological tool 4

•Explore and support the full potential of NSAs involvement in and beyond NAM

RD: Key questions to be posed throughout the policy cycle (chapter 4.3) RD: Methodological tool 1 RD: Dialogue with NSAs, capacity development, combining tools, instruments and approaches (chapter 4.4)

•Do no Harm-be prepared for new roles

RD: EC new roles (chapter 6)RD: Methodological tool 5, 6, 7

D. So how do we go about it? Tools and practical guidance

22

EuropeAidE. Are there questions? Shoot (so to speak)