Aid Effectiveness Group (AEG)

The Aid Effectiveness Group (AEG), formerly known as the harmonization, alignment, and coordination (HAC) donor group was, established in response to a request of the Government of Kenya (GoK) during the Consultative Group Meeting of November 2003 for donors to better harmonize, align, and coordinate their activities, in line with the objectives of the Rome Declaration of February 2003.  This was followed on by the Paris Declaration of 2005 and the Accra Agenda for Action (AAA) of 2008. 


As Kenya is not aid dependent and external financing only represents 14% of the government's 2010/11 budget, an important role for AEG will be to combine the knowledge and financing of Development Partners (DPs) and the Government of Kenya to leverage DP support on a much larger scale and increase development results.


An outcome of the September 9-11, 2009 Aid Effectiveness Retreat is that the Aid Effectiveness Group will replace the HAC Group and will be firmly rooted in the External Resources Department (ERD), with increased participation from the Ministry of Planning and National Development and the Vision 2030 Delivery Secretariat along with the Office of the Prime Minister and other line ministries.  The AEG continues the role of the HAC, but now with a sharper focus on delivery of the Paris and Accra Agendas.  It will serve as an information clearing house collecting and sharing information about emerging good practice at sector level, analyze and address blockages to achieving the Paris/OECD indicators, and reporting on their progress.  It will report to the Development Partnership Forum (DPF) on the aid and development effectiveness agenda.  All of these efforts will be supported by the Aid Effective Secretariat (AES), replacing the HAC Secretariat. 


From the beginning of the KJAS period, extending from 2007 to 2012, the HAC/AEG group comprised 17 Development Partners together with the Government of Kenya.  They are Canada, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Norway, Sweden, Spain, the United Kingdom, the United States, and the African Development Bank, the European Commission, the United Nations, and the World Bank Group.  Work is ongoing to bring additional countries on board through the end of the KJAS period, which will now run through June 2013 to align with the GoK budgeting cycle. 

OBJECTIVES

To increase the effectiveness and efficiency of development assistance in Kenya in line with the Paris Declaration, Accra Agenda for Action and the strategic priorities put forth by the government of Kenya in the Vision 2030 and its subsequent Medium Term Plans. 

To reduce transactions costs to the Government of Kenya and to Development Partners by streamlining systems for delivering aid, standardizing procedures, eliminating duplication, managing for development results and upholding mutual accountability.

SCOPE OF WORK

  • Using the 2008 OECD Paris Declaration Monitoring survey, review performance and set annual targets from 2010 through remainder of KJAS period, extended to June 2013.  Identify necessary actions to reach the above targets, along with a roadmap and monitoring framework.
  • Guide the development of a joint GoK/DP annual performance assessment framework (PAF) to address issues of mutual accountability based on the targets, roadmap, and monitoring framework above. The PAF will be the main implementation document of the Partnership Principles, containing annual targets for performance towards the Paris Declaration and Accra Agenda for Action.  The joint annual review and update of progress on the PAF will be presented by the AEG Co-Chairs to the Development Partnership Forum for feedback and endorsement.  Have review of annual PAF included in the forthcoming Kenya External Resources Policy (KERP). 
  • Support the updating of key elements of the Kenya Joint Assistance Strategy (KJAS) as needed and communicate to relevant stakeholders.
  • Support development of a plan for implementation of the KJAS with roles and responsible parties clearly delineated, and monitor performance, incorporating Review Team proposals. 
  • Guide preparation of the Development Partnership Forum (twice annually) and support follow up on action points relating to aid effectiveness and sector issues generated through the Forum.
  • Support formalization and deepening of the relationship between the sector working groups and the AEG for improved harmonization, coordination, and alignment to government strategies and systems.  This includes standardization of instruments across sector groups such as the terms of reference, code of conduct, frequency and format of reporting/reviews, sector funding and engagement/project matrix. Provide additional support through symposia and workshops, forums for information sharing between joint DP/GoK sector coordination groups, channels for communicating key sector issues to the highest levels in government and within the DPs – through the DPF, DCG, and a parallel DCG-like government structure consisting of key PSs, for the purpose of developing joint solutions. 
  • Recommend and advocate for a government body similar to the DCG, consisting of at least 15 PSs from key development ministries, following on from the good work in the PSs breakfast meetings of August and November 2009, to regularly meet to discuss and take forward harmonization, alignment, and coordination work. 
  • Address issues relating to information flows and reporting by regularly reviewing GoK records of DP disbursements, and by supporting the role out of e-ProMIS and other such initiatives.
  • Support the identification of best practices in donor harmonization, alignment and coordination and promote their implementation in Kenya.

FREQUENCY OF MEETINGS

The AEG meets on the first Tuesdays of each month and as the need arises.  A calendar will be distributed prior to the start of each year, notifying members of the dates and listing any exceptions.  The meetings are aligned with those of the Donor Coordination Group ( DCG) which take place on the second Tuesday of each month, to facilitate harmonization and to enable timely feedback to the DCG.  The Head of the Aid Effectiveness Secretariat (AES) is responsible for circulating minutes of the meetings and retaining related records (mainly through the website).

CO-CHAIRS AND MEMBERSHIP

The AEG will be co-chaired by one GoK and one DP representative.  The Director of the External Resources Department (ERD) will act as a standing chair.  DP leadership to the AEG will consist of three positions: a current chair, an incoming chair and an outgoing chair so as to avoid gaps in DP leadership and to create greater fluidity and transfer of knowledge on the DP side.  Each DP chair position will be for 1 year, with appointment of the incoming Chair annually based on selection and agreement by AEG members. 

Membership is open to additional DPs who would like to become signatories to the KJAS Partnership Principles and currently comprises 17 development partners: the African Development Bank, the European Commission, the United Nations, the World Bank, Canada, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Norway, Spain, Sweden, the United Kingdom, and the United States.

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