Is water lagging behind on aid effectiveness? Lessons from Bangladesh, Ethiopia and Uganda

This paper reviews the extent to which the five Paris Principles (PPs) on Aid Effectiveness (AE) are being applied in the water and sanitation sector. Comparisons are made between the water, health and education sectors. The five principles as set out in the Paris Declaration (PD) on AE are: ownership, alignment, harmonisation, managing for results and mutual accountability. The methodology of the paper includes in-depth case study research in three countries (Bangladesh, Ethiopia and Uganda) and a broader document review. From this evidence the study aims to identify ways in which external support to the water sector can be delivered more in the spirit of the Paris Declaration (PD). The paper finds that the water sector was not consistently underperforming in the three country case studies. Rather, the situation is one of ‘fluid dynamics’ - the sector is moulded by the surrounding political-economic context in which it is situated i.e. predominantly by the national governance environments in the countries examined.

The following conclusions and recommendations emerge from the paper:

• The broader governance environment is a more important influence on progress against the Paris Principles than sector characteristics. Aspects of the governance context beyond the sector, rather than sector characteristics alone, are a key influence on progress
  
• The perception that the water sector is lagging behind is not supported if the spirit rather than the mechanics of the PD is considered. SWAPs (Sector-wide Approaches) or other instruments should not be seen as a one-off step but rather as an ongoing dynamic process, a platform for learning for both donors and recipients. The pace and level of engagement depends on the opportunities at hand in a given situation provided by the prevailing political economic context
  
• The type and number of actors and type and levels of financing differs between sectors. The water sector is likely to be more affected for instance by new donors such as China with a particular emphasis on infrastructure development while the health sector stands out for receiving high levels of aid from private foundations and multilateral funding initiatives
  
• Some aspects of system alignment such as Public Financial Management and procurement cut across sectors. Engagement at a higher level than the sector may be more effective than trying to find solutions within a sector
  
• Paucity of data prevents the measurement of progress against the PP for AE at sector level. There is also currently no evidence that the fulfillment of the PP leads to better development outcomes e.g. increased access to water and sanitation sector.