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This UNDP paper seeks to address key policy issues and instruments to improve the effectiveness of development aid. These issues include new aid architecture and the role of the UN systems; new aid modalities including Sector Wide Approaches and joint assistance mechanisms; and aid management for transparency and accountability. It focuses on the key drivers of change in the existing recipient donor partnership paradigm: national leadership and ownership, national capacity and partnerships.

The paper concludes that there is no one way to promote the effectiveness of aid at country level and strategies, programmes and support should be country and context specific. The UN system, and the UNDP in particular, has a role to play in the changing aid architecture and the implementation of the Monterrey Declaration on Financing for Development and the Paris Declaration on Aid Effectiveness. At the country level, this means strengthening the convening role of the UN to ensure better performance, development outcomes and that scaling up of aid, as well as new sources of financing, work for the poor.

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