Part 2: Planning aid programmes

2.1
In this Part, we outline our expectations of:

• NZAID’s strategic approach to aid planning;
• how NZAID works with recipient countries;
• how NZAID works with other aid donor countries; and
• NZAID’s objectives for its aid programmes.

2.2
We then present our findings on the extent to which NZAID met those expectations.

Our expectations

2.3
In planning aid programmes, we expected NZAID to:

• have an up-to-date strategic approach to planning how it would deliver its aid programmes and to align programmes with its overall strategy;
• align its aid programmes with need by considering the views of communities and working with the government of the recipient country;
• complement the programmes of other aid donors, where appropriate; and
• have clear objectives for its aid programmes, reflecting changing needs and circumstances in the recipient country.

Summary of our findings

2.4
NZAID has a long-term strategic approach to planning the delivery of its aid programmes. It aligns its aid programmes with need by considering the views of, and working closely with, its development partners. NZAID also makes sure that its aid programmes complement those of other international aid donors, and that objectives of the aid programmes are consistent with broader international development goals and NZAID’s overall focus on eliminating poverty. NZAID refers to the importance of “strategic partnerships” but has no document or guidance setting out its overall approach to strategic partnerships for all of its programmes. It has not provided staff with guidance explaining how and when strategic partnerships should be entered into. Also, the preparation of NZAID’s health strategy has been delayed due to staff vacancies.

2.5
In our view, NZAID needs to:

• prepare generic guidance for staff on strategic partnerships with development partners; and
• give priority to completing its health strategy.

2.6
We would expect the scheduled programme reviews for the Indonesia bilateral programme and Pacific Regional Health programme to consider NZAID’s Five Year Strategy 2004/05 to 2009/10 (the Five Year Strategy) and relevant regional strategies.

Strategic approach to aid planning

2.7
NZAID’s aid programme planning framework includes the Five Year Strategy and long-term multilateral, regional, and bilateral strategies and plans, supported by several policies. They support NZAID’s overarching policy statement − Towards a safe and just world free of poverty.¹

2.8
NZAID’s focus on eliminating poverty and its strategies and policies reflect a long-term commitment to working with development partners and the international aid community to achieve the millennium development goals and international development targets agreed by world governments at the United Nations Millennium Summit in 2000. The focus of the Papua New Guinea and Indonesia bilateral programmes on health, basic education, and supporting peace and human rights initiatives, and the Pacific Regional Health programme’s focus on primary and preventative health care, are consistent with the millennium development goals.

2.9
Although the Papua New Guinea and Indonesia bilateral programmes predate the Five Year Strategy, they are both consistent with NZAID’s priority areas for its strategic outcomes - in particular, the focus on health, basic education, sustainable rural livelihoods, peace building and conflict prevention, and humanitarian support. The Pacific Regional Health programme is consistent with the priority areas in the Five Year Strategy.

2.10
NZAID uses a “strategic partnerships” approach to support civil society organisations in Papua New Guinea and regional health organisations in the Pacific. NZAID has identified eight civil society strategic partners in the Papua New Guinea bilateral programme and four strategic partners in the Pacific Regional Health programme. This approach seeks to foster long-term relationships between NZAID and the strategic partner organisations. NZAID has said that strategic partnerships provide the partner organisation with the ability to plan with greater certainty of funding, and an opportunity for NZAID to increase the effect and sustainability of its funding.

2.11
NZAID has an internal document that sets out NZAID’s approach to strategic partnerships with civil society organisations in Papua New Guinea. The document includes criteria and a process for initiating a strategic partnership. Although there is some guidance on developing strategic partnerships within other aid programmes (for example, the Pacific Programme for Strengthening Governance) and projects (for example, the Social and Community Development Fund within the Indonesia bilateral programme), there is no document or guidance setting out NZAID’s overall approach to strategic partnerships for all of its aid programmes.

2.12
We reviewed three NZAID funding arrangements with organisations identified as strategic partners within the Papua New Guinea and Indonesia bilateral programmes and the Pacific Regional Health programme. The organisations were:

• Leitana Nehan Women’s Development Agency;
• Fiji School of Medicine; and
• United Nations Children’s Fund (UNICEF).

2.13
Figure 3 provides more information about the Leitana Nehan Women’s Development Agency, the Fiji School of Medicine, and UNICEF.

Figure 3
Examples of strategic partners in the Papua New Guinea bilateral programme and Pacific Regional Health programme

2.14
Although UNICEF (as a multi-lateral agency) had been examined for the compatibility of its financial and reporting systems with NZAID, we found no evidence that NZAID had examined the capacity or capability of the Leitana Nehan Women’s Development Agency or the Fiji School of Medicine to be long-term strategic partners before the arrangements were put into place.

2.15
In our view, NZAID needs to prepare guidance for its staff on strategic partnerships with development partners. The guidance should include:

• a statement of what a strategic partner is;
• a statement of how such partnerships contribute to programme objectives and NZAID’s overall focus on eliminating poverty; and
• a framework for assessing the capability and capacity of potential partners
  (particularly civil society organisations).

2.16
The guidance would allow for consistency in NZAID’s funding arrangements for all its aid programmes, help NZAID achieve its long-term development outcomes with its strategic partners, and help NZAID decide how best to direct its support for strategic partners.

Working with recipient countries

2.17
NZAID’s overarching policy statement (see paragraph 2.7) reflects its long-term commitment to working closely with its development partners. NZAID aligns its aid programmes with national development priorities in recipient countries through high-level consultations with partner governments and by working with development partners in designing its aid programmes (see Figure 4 for an example of an NZAID project aligned to the national development priorities of a recipient country). Consultation with external stakeholders is one of the requirements set out in NZAID’s draft guidelines for preparing a programme strategy.

Figure 4
Example of an NZAID project aligned to the national development priorities of a recipient country

2.18
The Bilateral Strategic Framework for Indonesia 2002-2007 notes that, to implement the framework, interventions will be implemented in full co-operation, consultation, and partnership with relevant Indonesian authorities. The Papua New Guinea Strategy 2002-2007 notes that NZAID’s partners for the ODA programme in Papua New Guinea are the Papua New Guinea government at national and provincial levels, and civil society organisations. The Papua New Guinea Strategy 2002-2007 also refers to Papua New Guinea’s own development strategy.

2.19
NZAID may also carry out or commission specific research or analysis to assess how best to focus aid (for example, Supporting Rural Livelihoods in Papua New Guinea 2007-2016: Strategic Directions Paper and NZAID Health Sector Strategy Team: Issues Paper). Preparing issues papers, background literature searches, data gathering, and desktop studies are part of the analysis and field work requirements set out in NZAID’s draft guidelines for preparing a programme strategy.

Working with other aid donors

2.20
NZAID ensures that its programmes complement those of other aid donors, where appropriate, when designing aid programmes. NZAID’s overarching policy statement highlights the importance of co-ordination, particularly with other aid donors, as one of its key operating principles. This is also an important part of NZAID’s desired outcomes in its Five Year Strategy. Consultation with other international development agencies is another of the required steps set out in NZAID’s draft guidelines for preparing a programme strategy.

2.21
NZAID staff noted that they work closely with other international aid donors, consulting on strategy development and working directly with one another on joint contracts and shared programmes and projects. During our fieldwork, Australian Agency for International Development (AusAID) staff in Papua New Guinea and Fiji indicated that there was a close working relationship with NZAID at operational, technical, and strategic levels.

Aid programme objectives

2.22
There is a strategy or framework for each of the three programmes we looked at. They are the Papua New Guinea Strategy 2002-2007, Bilateral Strategic Framework for Indonesia 2002-2007, and Pacific Regional Health Programme Framework. Two of the three strategies pre-date NZAID’s Five Year Strategy, and all three pre-date the preparation of wider relevant regional and sector strategies, including the Pacific Strategy 2007-2015, the Asia Strategy, and the health strategy (which has yet to be prepared).

2.23
The Papua New Guinea Strategy 2002-2007 and Bilateral Strategic Framework for Indonesia 2002-2007 each cover a period of five years. The Pacific Regional Health Programme Framework does not have a specified time limit because it was meant to be an interim measure until NZAID completed its health strategy. NZAID told us that preparing the health strategy was delayed because of staff vacancies that have recently been filled.

2.24
In our view, NZAID needs to complete the health strategy to guide the coordination and focus of its aid programmes.

2.25
Objectives within the strategies and framework for each of the three programmes we looked at focus on eliminating poverty. The objective for the Papua New Guinea bilateral programme is to contribute to eliminating poverty by supporting the economic and social development of the country. For the Indonesia bilateral programme, it is to give priority to eliminating poverty by supporting the economic and social development of Indonesia. The objective of the Pacific Regional Health programme is to support the growth of more efficient and high quality regional primary and public health care services.

2.26
NZAID is currently reviewing the Papua New Guinea Strategy 2002-2007. The Pacific Regional Health Programme Framework and Bilateral Strategic Framework for Indonesia 2002-2007 were to be reviewed in late 2007. The terms of reference for the Papua New Guinea Strategy 2002-2007 review include considering its alignment with NZAID’s Five Year Strategy and relevant regional and thematic strategies.

1: New Zealand Agency for International Development (2002), Policy statement: Toward a safe and just world free of poverty, Ministry of Foreign Affairs and Trade, Wellington.