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Harmonisation 

Definition

Harmonisation is where donors work together more effectively and more closely with partner governments.

Why is it important?

• The multiplicity of procedures and practices among donors places a significant financial and human resource burden upon partner countries. Harmonisation reduces this burden and increases aid effectiveness. In the long term this strengthens the country's own capacity.
  Donors made commitments to harmonisation:
  • Monterrey 2002: to 'harmonise their operational procedures…reduce transaction costs and make [aid] disbursement and delivery more flexible, taking into account national development needs and objectives under the ownership of the recipient country';
  • Rome 2003: to implement Organisation for Economic Co-operation and Development  (OECD) Development Assistance Committee (DAC) Good Practice Papers including on harmonisation; and
  • Paris 2005: all DAC donors agreed to be monitored and held to account against 12 aid effectiveness indicators including on harmonisation
     

DFID/UK position

• DFID has been at the forefront of advocating harmonisation and alignment, and active in testing out new approaches, for example OECD DAC work on incentives for harmonisation initiated in April 2004, and in pushing for challenging commitments and targets to be adopted in theParis Declaration on Aid Effectiveness, and for an effective monitoring and evaluation mechanism to hold donors to account. DFID has also committed to having more joint offices with other donors.
• DFID published its Action Plan on Harmonisation(106 kb) in February 2003. A review (October 2004) showed satisfactory progress against 12 of the 16 central indicators and 84 of 88 country specific initiatives as either satisfactory or in progress. In response to the Paris Declaration DFID has now developed a Medium Term Action Plan on Aid Effectiveness.

International perspectives

• Countries that have harmonisation plans include Australia, Austria, Belgium, Canada, Denmark, Finland, France, Greece, Germany, Japan, Netherlands, Portugal, Sweden, and US.
• Agencies with harmonisation plans include the World Bank, Asian Development Bank, Inter American Bank, UN Development Group and European Commission.
• As of mid 2005, eight developing countries had harmonisation action plans, including Tanzania and Vietnam. Ethiopia wants donors to align behind their systems. Ghana has a 'common approach' to harmonisation agreed between government and donors.
  The EU made four additional commitments to the Paris declaration:
  • Provide all capacity building assistance through coordinated programmes with an increasing use of multi-donor arrangements.
  • Channel 50% of government-to-government assistance through country systems.
  • Avoid the establishment of any new Project Implementation Units.
  • Reduce the number of uncoordinated missions by 50%.

Issues to Address

• It is important to avoid making harmonisation an end in itself. The purpose of harmonisation is to get donors working together more effectively in support of poverty reduction. More evidence is needed on how best to ensure this outcome is achieved

Upcoming events

• The next High Level Forum on Aid Effectiveness will take place in Ghana in 2008.  

Further information

• Paris declaration and the UK statement of commitment made in Paris 2005
• Harmonising Donor Practices for Effective Aid Delivery(DAC Reference Paper, December 2002)

Last updated: 3 February 2006