New Zealand Agency for International Development

Asia Strategy Foreword The Asian region is home to two-thirds of the world’s poor and the great majority of these are women and children. Remarkable progress has already been made in addressing extreme hunger and poverty. Still, the numbers of poor remain unacceptably high. This strategy provides a framework for NZAID’s development assistance in Asia to 2015. As New Zealand provides 0.3% of total ODA in Southeast Asia, it recognises that our modest human and financial resources have to be used more effectively. The Asia Strategy sets out our goal, objectives and expected outcomes, and identifies Southeast Asia as our core focus. It is underpinned by strategies for each core-bilateral partner country. Strategies also guide our work with multilateral and regional agencies and financial institutions, and the range of contestable funds and thematic programmes which NZAID supports across the Asian region. In measuring the performance of the Asia Strategy, we will focus first on development impact. • We expect that poverty will have been reduced and that communities we work with will have increased self-reliance. We will also focus on how NZAID has worked, in particular whether we have achieved the following: • NZAID’s programme in Southeast Asia is focused on sustainable rural livelihoods • This focus is complemented by initiatives in other sectors such as education and health • The themes of gender equity, environment, HIV/AIDS, good governance and human rights cut across NZAID’s programmes • NZAID programmes are aligned with partner government poverty reduction and sectoral strategies and national development plans, and the coordinated efforts of the international community • NZAID is learning from engagements with, and adding value to, our development partners and this is leading to more effective Official Development Assistance • NZAID’s programmes in Southeast Asia are focussed in one or two specific geographic areas in each country • NZAID has maximised the synergies between core-bilateral partner country programmes, thematic programmes and programmes of our development partners. Dr Peter Adams, Executive Director Nga Hoe Tuputupu-mai-tawhiti New Zealand Agency for International Development Wellington 15 September 2004 NZAID Asia Strategy September 2004 CONTENTS Part One – Setting the Scene Introduction Asia: A Dynamic and Diverse Region Addressing Poverty in Asia New Zealand’s Development Cooperation in Asia Part Two – NZAID’s Engagement in Asia Goal, Objectives and Expected Outcomes Sectors and Themes Focus in Asia Operating Principles Alignment Policy Engagement Informed by Lessons Learned Programme Learning Specific Geographic Areas Complementarity and Coherence Maintaining Sensible Relativities Flexible and Responsive Approach Resources and Management Core-Bilateral Partner Country Programmes in Southeast Asia Measuring Performance Acronyms Boxes Nga Hoe Tuputupu-mai-tawhiti NZAID’s Values Sustainable Livelihoods Graphs and Diagrams Figure 1: Human Poverty Index for Developing Asian Countries – Country Ranking Figure 2: NZODA Programme Expenditure in Asia, 1995-2003 (NZD millions) Figure 3: NZAID’s Engagement in Asia Figure 4: NZODA Programme Allocations in Asia, 2004-05, NZD (millions) 3 3 4 5 6 8 8 9 11 12 12 12 12 13 13 13 13 13 13 14 16 3 8 9 5 7 12 14 2 NZAID Asia Strategy September 2004 PART ONE – SETTING THE SCENE INTRODUCTION 1. This Asia Strategy provides an overarching framework for NZAID’s engagement in Asia to 2015 outlining our goal, objectives and expected outcomes. It focuses New Zealand’s modest human and financial resources more effectively and uses New Zealand Embassies in Southeast Asia as a base to strengthen our engagement with our development partners on the ground. 2. Our main focus is Southeast Asia where we will respond to particular poverty reduction priorities in six core-bilateral partner countries1 and to the needs of the communities with whom we work. We will engage in South and North Asia through support to other development partners. Our central focus will be on sustainable rural livelihoods. This will be complemented by other sectoral and thematic activities. We will give priority to the interests and needs of women and children and maximise synergies across the range of programmes we support in Asia and internationally. Nga Hoe Tuputupu-mai-tawhiti – “the paddles that bring growth from afar” – is the Māori name for NZAID, New Zealand’s International Aid and Development Agency. This evocative name reflects New Zealand’s heritage and situates us within the Asia-Pacific region. NZAID’s values affirm that people are at the centre of development and our mission emphasises the importance of partnershipa. Our approach is informed by the partnership principles of the Treaty of Waitangib and draws on the diversity of New Zealand society. 3. The Strategy is occurring at a time when links between New Zealand and the countries of Asia are intensifying. Current initiatives include the Government’s Seriously Asia Strategy, invitations by the Association of Southeast Asian Nations (ASEAN) to explore a possible Free Trade Area with Australia and New Zealand, and the negotiation by New Zealand of Closer Economic Partnership arrangements with Thailand and China. NZAID’s Asia Strategy complements and is consistent with these broader developments in New Zealand’s links with the Asian region. Regular monitoring and review will enable us continuously to align our efforts for maximum impact and ensure the strategy is responsive to and reflects the rapid pace of change in Asia. 4. NZAID is an active member of the international development community. Our work to eliminate poverty and remove inequalities directly addresses fundamental rights set out in the United Nations (UN) Declaration of Human Rights and subsequent international human rights instruments. We are committed to ‘making the right to development a reality for everyone and to freeing the entire human race from want’2. We are also committed to better alignment with development partner policies, and to coordinating our efforts with those of other donors. Efforts to strengthen country-owned poverty reduction strategies need to be complemented by good governance and accountability practices. Together, these will contribute more effectively to achievement of the Millennium Development Goals (MDGs). a. NZAID’s Policy Statement outlines our vision, mission, values, strategic outcomes and guiding principles (http://www.nzaid.govt.nz/library/docs/nzaid-policy-statement.pdf). b. The partnership embodied in New Zealand’s founding document, the Treaty of Waitangi, places an obligation on the partners (the Crown and Māori) to act reasonably, honourably and in good faith; the Crown has an obligation to consult its partner, it must make informed decisions, and it must actively protect the interests of its partner. 1 Core-bilateral partner country: a country with which NZAID maintains a three-year forward aid commitment of at least NZ$1 million annually and with which NZAID holds periodic bilateral ODA consultations. 2 United Nations Millennium Declaration, 2000, 11. 3 NZAID Asia Strategy September 2004 As dictated by our central focus, our work in Asia will contribute particularly to the goal of eliminating extreme poverty and hunger. ASIA: A DYNAMIC AND DIVERSE REGION 5. The countries of Asia are diverse socially, economically, politically and culturally. Nation states were mostly established in the post-colonial period and are home to an array of ethnicities and indigenous peoples, whose cultures and heritage are found throughout the region. 6. The region is one of stark contrasts. Some of the world’s richest countries (Japan, Singapore and Brunei Darussalam) sit alongside the world’s poorest (Cambodia, Lao PDR, and Timor-Leste). While China has some 1.29 billion people, Timor-Leste is home to a population of 700,000 and the Maldives only 300,0003. 7. There has been huge progress economically in recent decades with North and Southeast Asia having the world’s fastest rate of economic growth over the past twenty-five years4. A key feature is China’s emergence as an economic power and a market for goods and services for countries of the Asian region. Throughout the Asian region, rapid advances in technology have seen food security dramatically improved, poverty reduced and incomes raised. This is expected to continue in the coming decades. However, significant pockets of poverty remain, even in the better-off countries. 8. Economic progress has seen countries move from least developed to low-income and from low-income to lower middle-income status. Nations which no longer receive development assistance are now seeking to give aid to other less developed countries, opening up new possibilities for development partnerships and cooperation between New Zealand and the members of ASEAN. Increased interest amongst the developing nations of Asia in regional and global integration has seen many nations join or plan to join the World Trade Organisation (WTO). Interest is also growing in the development of bilateral and regional trade agreements particularly in North and Southeast Asia. 9. While Asian peoples have always been mobile, dramatic improvement in communication and transportation has seen increased movement across the region. This has enhanced improvements in technology as well as increased the flow of people, goods and services and led to the creation of mega-cities throughout the region. But it has also produced trafficking in drugs and people, predominantly women and girls, and the rapid spread of pests and disease, particularly HIV/AIDS. Rapid economic growth has also resulted in natural resource depletion and environmental degradation 10. A key feature of the region has been the experience of serious conflict and confrontation between and within states arising from a range of political, ethnic and religious factors. Violence is also experienced at family level with women and girls suffering disproportionately from its effects. 11. The coming decades are likely to be marked by increased growth, further integration into the global and regional economies, further technological advances and increased flows of people and goods. There is a risk that economic successes will be undermined by the spread of HIV/AIDS, and the region could see continued conflict and environmental degradation. 3 4 Figures quoted in this Strategy are drawn from UNDP’s Human Development Report 2004. Rural Development Indicators Handbook, 2001. 4 NZAID Asia Strategy September 2004 ADDRESSING POVERTY IN ASIA 12. The Asian region is home to two-thirds of the world’s poor and the great majority of these are women and children. Remarkable progress has already been made in addressing extreme hunger and poverty. Still, the numbers of poor remain unacceptably high. One third of India’s population (364 million people) live on less than one US dollar per day as do one sixth of China’s population (215 million people), despite the fact that China has a per capita gross national income (GNI) of USD 9605. In Southeast Asia, where NZAID focuses its development assistance, 7.5% of Indonesians (some 16.3 million), 14.6% of Filipinos (11.5 million) and 17.7% of Vietnamese (14.2 million) live on less than one US dollar per day. These are the extreme poor. Millions more are moderately poor, living on less than two US dollars per day. Even in the lower middle-income and upper middle-income countries of the region, pockets of poverty remain. Ethnic minorities and indigenous peoples form a disproportionate number of the poor, often being the most vulnerable and the last to benefit from growth. Figure 1: Human Poverty Index for Developing Asian Countries - Country Ranking Cambodia Bangladesh Pakistan Nepal Lao PDR India Myanmar Viet Nam Mongolia Sri Lanka Indonesia Philippines China Thailand Maldives 0 10 20 30 40 Country Ranking The Human Poverty Index for Developing Countries measures lacks in knowledge, a long and healthy life, and a decent standard of living. Developing countries are ranked from 1 to 94 with higher numbers indicating greater human poverty. Source: UNDP Human Development Report, 2004, HPI-1, p 260. 50 60 70 80 13. Many countries in the region have made considerable progress towards achieving the MDGs. However, it is clear from present trends that many others will fall short of the targets. Unless significant efforts are made, it is considered unlikely that goals related to universal primary education, reduced child mortality, improved maternal health, combating HIV/AIDS or environmental sustainability will be achieved in all countries of Asia. 5 World Bank, 2004, World Development Indicators. 5 NZAID Asia Strategy September 2004 14. Increased migration has seen rapid growth in urban areas. Yet Asia’s rural population continues to grow, with some 80% of the poor living in rural areas6 and the vast majority of people continuing to depend on agriculture, forestry or fishing for their livelihood. 15. The developing countries of Southeast Asia define their priorities in national development plans and poverty reduction strategy papers (PRSPs). Cambodia, Lao PDR and Viet Nam have developed poverty reduction and growth strategies in partnership with the international donor community, including non-governmental organisations (NGOs). Indonesia, the Philippines and Timor-Leste have national development plans which include poverty reduction goals. 16. Bilateral discussions and Consultative Group processes, or their equivalent, provide national governments and donors with the opportunity to agree priorities for donorgovernment cooperation and to coordinate development assistance. These are enhanced by direct engagement with non-governmental organisations (NGOs) and civil society organisations (e.g. academic institutions, trade unions, community based organisations). Increasingly, donors are aligning their programmes with agreed government priorities and improving coordination and harmonisation. Focus on achievement of MDGs remains important to each national government and the international community. 17. Priorities for PRSPs and national development plans include poverty reduction, economic growth, improving rural livelihoods, expanding job opportunities, reducing vulnerability to poverty, and increasing social protection. Key sectors for assistance include agriculture, forestry and fisheries, education, health and infrastructure. Particular attention is paid to environmental concerns, gender equity and developing human resources. Underpinning all of this is the need for macro-economic stability, administrative reform and transparency in budget allocation and expenditure. Corruption remains a threat ‘not only to democratic institutions and fundamental rights and freedoms, but it also undermines socioeconomic development and deepens the poverty of millions the world over’7. NEW ZEALAND’S DEVELOPMENT COOPERATION IN ASIA 18. New Zealand sees itself as an Asia-Pacific nation. Two centuries of migration have led to significant change in how we view ourselves, evidenced by the wide range of ethnicities in our current population, including many Asian cultures. 19. Strong connections exist with Asia. These include trade and economics, links with family members who have migrated to New Zealand, people-to-people relationships, partnerships between New Zealand NGOs and their Asian partners, and relationships established between academic institutions and private sector interests. 20. New Zealand was a founding member of the Colombo Plan (1950) and the initial priority for New Zealand assistance was in South Asia (India, Pakistan and Ceylon). By 1972, the emphasis had moved to Southeast Asia with Malaysia, Indonesia, South Vietnam and Thailand being the major ODA recipients and an increasing amount of assistance being channelled through international, multilateral, and regional agencies. By 1980 the focus of New Zealand’s direct interventions was clearly on bilateral assistance to the ASEAN group of countries and it has remained so ever since. 21. New Zealand has also been involved in economic and technical cooperation with Asia through the Asia Pacific Economic Cooperation (APEC) forum. Technical assistance World Bank Regional Strategy Summaries, 2001, pp 37, 82. Council for Social Development, Kingdom of Cambodia, National Poverty Reduction Strategy, 20032005, 20 Dec 2002, p 112. 7 6 6 NZAID Asia Strategy September 2004 and capacity building in trade facilitation has been offered in China, the Philippines, Indonesia, Thailand and Viet Nam. The APEC model does not involve a formal division between donors and recipients, but the partnership among APEC economies contributes to the transfer of skills and knowledge in trade and related fields. 22. New Zealand is widely perceived by partners as a country which contributes positively to rural development, particularly in agriculture, natural resource management, eco-tourism and rural services. These have formed a central thread running through NZAID’s recent programmes in Southeast Asia and China. New Zealand has a long tradition of support for education in Asia, with a recent focus on building the capacity of government officials in the Greater Mekong Subregion (GMS). Many donors consider that we have much to offer in the area of governance, particularly public administrative reform, public expenditure management and rights. Figure 2: NZODA Programme Expenditure in Asia, 1995-2003 (NZD millions) 80 70 60 50 40 30 20 10 0 do Ti ne m s or ia Ph Les ilip te pi n Th es ai Vi land et N a AS C am m EA N bo d R eg ia io na l K o Ch re ina a D La PR o P M DR on So go li As uth a As ia i R eg a io na AD l AF AD B 1999-2003 1995-1998 23. New Zealand’s Asian partners place high importance on building long-term, longlasting relationships. In many countries of Southeast Asia, New Zealand has carved out a niche for itself as a responsive partner, willing to listen to partner government priorities and to offer sound advice that respects our partner’s interests. We are also perceived as a small nation committed to bringing together the standards and principles of international human rights with the plans, policies and processes of development. We have built up good relationships in our core-bilateral partner countries and these provide an excellent basis for future engagement. 24. NZAID has limited resources to offer the developing countries of Southeast Asia and needs to do so in an efficient and effective manner. Direct New Zealand support to six core-bilateral partners in Southeast Asia amounted to NZD 21.6 million in 2004 compared with more than NZD 6,260 million received by these countries in ODA from all donors. New Zealand therefore provides 0.3% of total ODA in Southeast Asia. An additional NZD 25.2 million was allocated to other initiatives in Asia. New Zealand’s development assistance in Southeast Asia is facilitated by Embassies in Bangkok (accredited to Lao PDR, Cambodia and Myanmar), Ha Noi, Manila, Jakarta and Dili8. 8 On 22 July 2004 the Government announced plans to upgrade the Consulate-General in Dili to a full Embassy. 7 In NZAID Asia Strategy September 2004 25. In addition to a bilateral assistance programme with China, New Zealand’s recent support in South and North Asia has been predominantly through the non-governmental and private sectors, with NZAID channelling funds through the Voluntary Agency Support Scheme (VASS) and the Asia Development Assistance Facility (ADAF) as well as supporting a range of country-focussed multilateral initiatives. New Zealanders working on assignment with Volunteer Service Abroad (VSA) have made a valuable contribution to communities in Asia. The very limited amount of assistance to Central Asian Republics (through Head of Mission Funds and ADAF) has reflected their minimal contact with New Zealand and New Zealanders. PART TWO – NZAID’S ENGAGEMENT IN ASIA GOAL, OBJECTIVES AND EXPECTED OUTCOMES 26. NZAID works with a wide range of development partners who share our values and guiding principles. These include partner government agencies, regional and multilateral agencies and financial institutions, nongovernment organisations (NGOs) and the NZAID’s Values private sector. Our development partnerships support initiatives at a range of levels from • We place people at the heart of our activities direct assistance at the community level to • We are responsive to people and national and regional programmes. 27. We align our programmes with partner government-owned poverty reduction strategies and national development plans, and with the coordinated efforts of the international community. We focus our support on sectors, themes and geographical areas where we can make the most difference, giving priority to the interests and needs of poor women and children in rural communities. Our choice of programmes to support is made in light of the involvement of other development partners and our wish to develop long-term relationships and strengthen our in-country presence. Mindful of our goal of creating safe, just and inclusive societies, we ensure that all strategies and programmes consider the risks of conflict and are designed to prevent conflict and build peace9. Our work is undertaken in accordance with New Zealand’s obligations under international instruments and commitments10. It is informed by the lessons we learn from participation in international and regional fora and national policy dialogues, and from development assistance in specific communities. Goal 28. “To pursue NZAID’s mission of eliminating poverty in Asia, reflecting our values and commitment to achieving the Millennium Development Goals.” communities in developing countries We act ethically, fairly and with respect to all partners • We are practical, flexible and adaptable • We are strategic and long-term in our approach • We are focused on the effectiveness of New Zealand’s development assistance. NZAID Policy Statement, Towards a Safe and Just World Free of Poverty, p 7. • Objectives 29. The goal will be supported by the following objectives: NZAID’s approach is outlined in Building Peace and Preventing Conflict, 2004, (http://www.nzaid.govt.nz/library/docs/nzaid-peace-policy.pdf). 10 NZAID’s Human Rights Policy Statement, 2002 outlines New Zealand’s commitments to the International Bill of Rights, Covenants and Conventions (http://www.nzaid.govt.nz/library/docs/nzaidhuman-rights-policy.pdf). For more information about New Zealand’s international obligations see http://www.mfat.govt.nz/foreign/humanrights/overview/overview.html. 8 9 NZAID Asia Strategy September 2004 Objective One: Objective Two: Objective Three: Empower those in poverty to improve their livelihoods. Strengthen poverty reduction strategy processes and national development plans in core-bilateral partner countries in Southeast Asia. Establish an active knowledge and understanding of, and engagement with, core-bilateral partner countries. Outcomes 30. Expected outcomes from NZAID’s engagement in Asia are: 31. Development Impact – our development partners have reduced poverty and those in poverty have increased self-reliance. • The social and economic outcomes of those in poverty have improved. • The poor have improved food security and increased their income. • People living in rural communities have increased opportunities to participate in their own development. 32. Engagement – development outcomes are achieved through long-term engagements based on mutual openness, trust, respect and accountability. • NZAID programmes are aligned with partner country policies and strategies, and the coordinated efforts of the international community. • NZAID’s engagement in national, regional and international fora has led to positive change in donor practice. • NZAID is perceived as making a positive contribution to processes of engagement with our development partners in New Zealand and in Asia. 33. Agency Capability – NZAID’s development assistance in Asia is efficient and effective. • New Zealand’s Official Development Assistance is perceived as coherent and based on the poverty reduction priorities of partner governments. • NZAID has improved its knowledge and understanding of our partner countries in Southeast Asia. • NZAID’s programmes are focussed sectorally, thematically and geographically. 34. The way NZAID operates in Asia will be guided by the following approaches designed to achieve development impact. SECTORS AND THEMES 35. NZAID’s focus in Southeast Asia is on sustainable rural livelihoods11. NZAID seeks opportunities to improve the livelihoods of people in rural communities. These opportunities will emerge from particular contexts and needs, identified through existing programmes with local partners. NZAID’s engagement may involve a range of rural development initiatives such as agriculture (including livestock, forestry 11 Sustainable Livelihoods A sustainable livelihood comprises the capabilities, assets (including both material and social resources) and activities required for a means of living. A livelihood is sustainable when it can cope with and recover from stresses and shocks and maintain or enhance its capabilities and assets both now and in the future, while not undermining the natural resource base. Scoones, Sustainable Rural Livelihoods (1998) NZAID is in the process of developing a sustainable livelihoods policy. 9 NZAID Asia Strategy September 2004 and fisheries), eco-tourism, agribusiness development, income generation, market chain interventions, production processes, rural services and natural resource management. 36. NZAID will concentrate on the nexus between rural development, poverty reduction, and the protection and management of the environment. We will work to contribute to the policy and regulatory environment as appropriate for each country. We will engage actively in a participatory process of identification, design, implementation, monitoring and evaluation of these initiatives, learning lessons from each initiative with a view to strengthening NZAID’s programmes across the Southeast Asian region and in regional and multilateral fora. 37. NZAID’s central focus is complemented by initiatives in other sectors, as appropriate to the local context, NZAID’s history of involvement and the particular needs with which we can assist. Where key initiatives in sustainable rural livelihoods are constrained by needs in another sector, such as Health12, we will explore the most appropriate way to respond to this. Where we are already supporting programmes in sectors such as education or health, we will seek to develop complementary initiatives to improve the livelihoods of the communities with whom we are working. We will work in an integrated manner building synergies within our programmes and with the initiatives of local communities, government agencies, and other development partners. 38. Education is of critical importance within NZAID’s overarching policy framework. We will support core-bilateral partner countries in Southeast Asia to achieve the Education for All (EFA) goals13. Such an engagement reflects NZAID’s education policy, supports access to quality basic education for all, is aligned with partner government poverty reduction priorities, complements the coordinated efforts of other donors and meets New Zealand’s international commitment to support the achievement of EFA goals. 39. We will support capacity building initiatives that are fully integrated with corebilateral partner country strategies. This will involve a range of initiatives including training offered within programmes and across the Greater Mekong Subregion, and short-term training. In the case of tertiary scholarships, we will focus on priorities included in corebilateral partner country strategies and national poverty reduction strategies. Preference will be given to study in the student’s home country or region and, where warranted, in New Zealand. 40. NZAID recognises that developing countries face challenges in making trade work for development and that the international community can play a key role in overcoming these challenges and constraints. Our approach to Trade and Development includes traderelated programmes and work on trade policy, such as advocating for special and differential treatment for developing countries within the World Trade Organisation14. In Southeast Asia, we support the newer members of ASEAN to establish the capability and mechanisms that will facilitate their integration into national, regional and international markets. In addition, we support measures to ensure the benefits of international trade extend to the rural sector, particularly poor and marginalised communities. We also support the development of community-based trading partnerships that seek to facilitate trade for sustainable livelihoods, assist diversification and pursue the development of comparative and competitive advantage. At the time of writing, NZAID was completing its Health Policy. EFA goals are included in NZAID’s Education Policy Statement, Achieving Education for All, 2004, p 4 (http://www.nzaid.govt.nz/library/docs/nzaid-education-policy.pdf). Viet Nam and Cambodia have been selected as EFA Fast Track Initiative countries. The EFA Fast Track Initiative is designed to accelerate global action in support of EFA goals. 14 This approach is outlined in NZAID’s Trade and Development Policy Statement, Harnessing International Trade for Development, 2002 (http://www.nzaid.govt.nz/library/docs/nzaid-harnessinginternational-trade.pdf). 13 12 10 NZAID Asia Strategy September 2004 41. A number of themes cut across NZAID’s programmes. NZAID recognises that development programmes need to be sustainable and equitable, with particular attention paid to the rights of women and girls as part of achieving Gender Equity. NZAID will foster sustainable management of natural resources and protection of the Environment. In developing our programmes, we will look at the impact, actual or potential, of HIV/AIDS on target populations and develop responses accordingly. 42. Good Governance based on respect for Human Rights is essential for safe, just and inclusive societies. For communities to develop, they must be well informed, able to participate actively in decision-making and have the legal frameworks and structures in place to facilitate this. The poor suffer most from the impact of corruption. Hence, poverty reduction strategies and national development plans also require transparent, fair and effective legal and administrative systems and fiscal procedures. NZAID programmes promote transparency, accountability, local capability and improved access to, and delivery of, services. They also seek to promote and strengthen the rights and voice of the poor, with special attention to women and girls, people living with disabilities, minorities and indigenous peoples. Finally, NZAID is sensitive to the potential for conflict in our partner countries. Through providing long-term development assistance in the areas identified above, we aim to promote peace, security and stability. FOCUS IN ASIA 43. NZAID’s core focus is Southeast Asia. We support programmes in the corebilateral partner countries of Cambodia, Lao PDR, Viet Nam, Indonesia, the Philippines and Timor-Leste. Each of these is guided by a country strategy which reflects the Asia Strategy. 44. NZAID supports initiatives across the Southeast Asian region with special attention to the Greater Mekong Subregion. These include the Trade and Development programme and capacity building initiatives. We maximise synergies between regional and bilateral programmes. In addition we support the initiatives of partners such as NGOs and the private sector, through the Voluntary Agency Support Scheme (VASS) and the Asia Development Assistance Facility (ADAF), and regional and multilateral agencies and financial institutions. 45. In North Asia and South Asia, our emphasis will be on working with regional partners. As with Southeast Asia, we also provide contestable funding for NGOs and the private sector through the VASS, ADAF, the Global Good Governance Programme and the Emergency and Disaster Relief Fund (EMDR)15. Each contestable fund has its own guidelines setting out country eligibility and funding criteria. Support through international financial institutions, multilateral, international and regional agencies is guided by NZAID’s multilateral engagement strategy. Some funding is available from Head of Mission Funds and for postgraduate scholarships. 46. NZAID’s assistance to China is being reviewed during 2004-05 and consideration will be given to the nature of future cooperation with China. NZAID’s interim framework for South Asia (currently focused on engagements in Nepal and Sri Lanka) is to be reviewed in 2005-06. 47. NZAID will continue to respond to particular humanitarian situations in Asia as the need arises. Complex emergency and humanitarian assistance will enable NZAID to respond to particular crises together with other members of the international community, as warranted by particular humanitarian situations and as directed by Ministers. 15 At the time of writing, NZAID is reviewing the VASS and intends to review ADAF. The results of these reviews will shape NZAID’s future interventions. 11 NZAID Asia Strategy September 2004 48. NZAID will continue to provide humanitarian assistance in Myanmar and will seek opportunities to promote rights, freedom and democracy. We will contribute through regional processes and local level initiatives until there has been clear progress towards the restoration of democracy and respect for human rights. NZAID will develop an entry strategy outlining expected progress and priorities for any future intervention. Figure 3: NZAID’s Engagement in Asia Southeast Asia Six core-bilateral partner countries Cambodia Indonesia Lao PDR Philippines Timor-Leste Viet Nam South Asia Review South Asia Interim Framework 2005-2006 Southeast Asia Regional Programmes Core focus on Sustainable Rural Livelihoods complemented by other sectoral and thematic programmes North Asia Review Assistance to China 2004-2005 Contestable funding of NGOs and the private sector through VASS, ADAF, Global Good Governance, EMDR Core funding of international and regional agencies and financial institutions Head of Mission Funds Postgraduate Scholarships Complex Emergencies and Humanitarian Assistance OPERATING PRINCIPLES Alignment 49. NZAID operates on the basis of a good understanding of the development context in each country. NZAID aligns its programmes with government-owned poverty reduction and sectoral strategies, national development plans, and the coordinated efforts of the international community. Thematic programme planning across Southeast Asia is carefully aligned with core-bilateral partner country programmes and vice versa to enhance effectiveness. Policy Engagement Informed by Lessons Learned 50. NZAID’s engagement with development partners focuses on policy issues as well as programme initiatives at grassroots level. The lessons learned from our engagement at grassroots level inform inputs into national policies and regulatory frameworks and our input at regional and international fora. Our grassroots level engagement is also informed by lessons learned from our experience and engagement in national, regional and international fora and the experience of our development partners. Programme Learning 51. NZAID will strive for increased engagement in order to improve the effectiveness of our assistance and learning from, and with, our partners. We aim to build our knowledge and 12 NZAID Asia Strategy September 2004 understanding of priority sectoral and thematic areas. This will involve a team approach combining the expertise of NZAID programme managers, programme administrators, advisors and management services personnel. Specific Geographic Areas 52. To complement our engagement in policy issues, NZAID focuses its core-bilateral partner country programmes in one or two specific geographic areas in each country. The selected areas take into account local needs and priorities defined by poverty reduction and sectoral strategies and development plans, as well as NZAID’s existing work, relationships, presence and capability. NZAID is also mindful of the risks of conflict, taking steps to ensure that its assistance does not create or exacerbate tension or conflict between communities or groups by virtue of increased inequity and competition for resources. Wherever possible, NZAID's assistance seeks to promote co-operation and understanding between communities and groups for mutual benefit. Complementarity and Coherence 53. NZAID maximises synergies between our core-bilateral partner country programmes, our thematic programmes and programmes of our development partners – NGOs, the private sector, and regional, multilateral and international agencies and financial institutions. We will strengthen policy coherence between NZAID and other New Zealand government agencies, promoting good development practice based on the poverty reduction priorities of partner governments. Maintaining Sensible Relativities 54. Financial and human resources are allocated to ensure that time, money and effort is spent on priority initiatives in-country and not focussed disproportionately on small project initiatives. Flexible and Responsive Approach 55. NZAID adopts a flexible and responsive approach to make the best use of resources and achieve impact. In doing so, we take into account available expertise in New Zealand and elsewhere, opportunities to develop capability and learning, the capacity and development context in-country, country priorities and needs. NZAID will engage in sector wide approaches where they exist and where it is feasible and appropriate for us to contribute – e.g. budgetary support, policy input, funding of particular initiatives which fit the agreed sector priorities. NZAID delivers its programmes through a range of mechanisms including management service contracts, academia and business consulting services, national and local government agencies, NGOs and civil society groups, and channelling funds through other agencies (e.g. UN agencies) as appropriate. RESOURCES AND MANAGEMENT 56. Asia programme allocations16 should, as a minimum, retain their current share of the NZAID programme allocations. Given the level of need and absorptive capacity, as levels of New Zealand ODA rise, it is anticipated that flows to Asia will increase significantly. Priority will be given to increasing the level of development assistance to bilateral partners in the Mekong region and Timor-Leste in the immediate future. Core-Bilateral Partner Country Programmes in Southeast Asia 57. Effective and efficient delivery of NZAID’s core-bilateral programmes requires: In 2004-05 NZODA Programme Allocations to Asia totalled NZ$48.3 million. Asia receives a portion of the NZ$ 69.3 million allocated to Humanitarian Assistance, Global Good Governance, NZ Agencies (including VASS), International and Multilateral Agencies, International Financial Institutions and Scholarships. 13 16 NZAID Asia Strategy September 2004 • • • • • Effective and responsive management of in-country programmes Strong engagement and relationship building with partner agencies and civil society Regular participation in policy dialogue with partner governments Proactive donor coordination Effective integration of NZAID Post and Wellington-based expertise. Figure 4: NZODA Programme Allocations in Asia, 58. Relationships and 2004-05, NZD (millions) engagement with core-bilateral partner governments and the 23.5 25 donor community is best 20 undertaken in-country and NZAID 12.8 12 15 will therefore build up its in-country 10 resources. NZAID will establish an 5 0 appropriate team approach for Country Regional ADB Asian each core-bilateral partner country Programmes Programmes & Development Fund programme. It will involve Contestable Funds enhanced ability to engage with stakeholders in its core-bilateral Note: The Asian Development Fund covers Asia and the Pacific. partner countries in Asia, and with policy, technical and management inputs from Wellington. MEASURING PERFORMANCE 59. NZAID undertakes monitoring, reviews and evaluations to assess the performance and effectiveness of activities under the Asia Strategy. Evaluation activities are expected to provide information for three key purposes: accountability, learning and improvement. The core values that guide other NZAID work will also underpin these evaluation activities. It is intended that participatory approaches to measuring performance are used wherever possible, and that in undertaking these activities, over time, there is a positive contribution to the evaluation capability and capacity of our development partners. 60. Data gathered in project and programme reviews and evaluations will contribute to assessing development impact outcomes (see para 31). Reviews of core-bilateral partner country strategies and of NZAID’s engagement with multilateral and regional agencies will provide input into assessment of engagement outcomes (see para 32) and of agency capability outcomes (see para 33). The results will inform decisions about future allocation of NZAID resources. Such decisions will be taken in light of our wish to promote mutual openness, trust, respect and accountability between NZAID and our development partners. 61. In measuring the performance of the Asia Strategy, we will first focus on development impact: • We expect that poverty will have been reduced and that communities we work with will have increased self-reliance. We will also focus on how NZAID has worked, in particular on whether we have achieved the following: • • NZAID’s programme in Southeast Asia is focused on sustainable rural livelihoods This focus is complemented by initiatives in other sectors such as education and health 14 NZAID Asia Strategy September 2004 • • • • • The themes of gender equity, environment, HIV/AIDS, good governance and human rights cut across NZAID’s programmes NZAID programmes are aligned with partner government poverty reduction and sectoral strategies, national development plans, and the coordinated efforts of the international community NZAID is learning from engagements with, and adding value to, our development partners and this is leading to more effective ODA NZAID’s programmes in Southeast Asia are focussed in one or two specific geographic areas in each country NZAID has maximised the synergies between core-bilateral partner country programmes, thematic programmes and the programmes of our development partners. 62. The Asia Strategy will be reviewed after 5 years to ensure that it remains appropriate to development partner needs. The review processes for core-bilateral and thematic programmes in Asia will be aligned in terms of timing and content in order that the Asia Strategy review process can draw upon the results of these. 15 NZAID Asia Strategy September 2004 Acronyms ADAF ADB APEC ASEAN EFA EMDR GMS GNI IDT MDG NGO NZAID NZODA ODA PRSP UN VASS VSA WTO [ends] Asia Development Assistance Facility Asian Development Bank Asia Pacific Economic Cooperation Association of Southeast Asian Nations Education For All Emergency and Disaster Relief Fund Greater Mekong Subregion Gross National Income International Development Target Millennium Development Goal Non-government Organisation New Zealand’s International Aid and Development Agency New Zealand Official Development Assistance Official Development Assistance Poverty Reduction Strategy Paper United Nations Voluntary Agency Support Scheme Volunteer Service Abroad World Trade Organisation 16