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Electronic Roundtable I: May to September 2006
The Emerging Aid Architecture: Implications for Africa
11 to 22 September 2006
Short text summary of concept note:
This session focuses on the issue of the new aid architecture. Far from reaching the MDGs, the challenges facing most African countries call for joint efforts from both donors and countries on the continent to boost development. According to the UN Millennium Project, donors would have to double their ODA-to-GNP ratios during the years 2006 to 2015 in order to raise the money required to achieve the MDGs. Calling for both donors and African countries to join efforts towards the MDGs, to the UN Millennium Project, Africa's responsibility lies in improving governance.
Under the current aid architecture, donors distinguish between aid funding for investment and for recurrent costs. Usually they do not provide funding for financing recurrent cost. Value for money would increase for recipient countries if this distinction were no longer made. The aid architecture must allow, particularly for achieving the MDGs, the use of ODA to support operating expenses, such as doctor's salaries, trainings, or the maintenance of core infrastructure. One solution would be for donors to allow the use of ODA for recurrent costs on a temporary basis, at least until the MDGs are achieved. Four questions have been formulated to guide the discussions and draw from participants' rich experiences.
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