Emergence of Aid Effectiveness Agenda

This chapter provides a detailed account of the emergence and evolution of the global aid effectiveness agenda, scrutinizing its institutional, political, and operational underpinnings in particular. It underscores that the conventional aid framework—characterized by fragmentation, conditionality, and donor dominance—was regarded as ineffective in the post-1990s’ changing world economic order, leading to the transformation of the traditional aid model to the concurrent aid effectiveness agenda. The chapter highlights that although the trajectory of transformation began in the second half of the 1990s, it was significantly marked by the Monterrey Consensus (2002), Rome Declaration (2003), Paris Declaration (PD) (2005), Accra Agenda for Action (AAA) (2008), and Busan High-Level Forum (HLF) (2011)—which collectively institutionalized the key principles like ownership, alignment, harmonization, managing for results, and mutual accountability. Additionally, the chapter specially focuses on PD monitoring framework, targets, criticisms and its progress assessment through Organisation for Economic Co-operation and Development—Development Assistance Committee (OECD-DAC) monitoring surveys. It also assesses the shift from aid to development effectiveness, initiated by the Busan HLF and further enhanced by the Global Partnership for Effective Development Co-operation (GPEDC)—highlighting the inclusion of emerging donors, civil society organizations (CSOs), and the private sector. A critical examination of the advancements and voluntary commitments of the GPEDC and its alignment with the Sustainable Development Goals (SDGs) is also presented. The chapter concludes that despite substantial achievements, persistent challenges with implementation, political will, and accountability still remain, and the ‘unfinished business’ of aid effectiveness continues to require global attention.