Effective Development Cooperation
The Development Partners Group (DPG) comprises 36 bilateral and multilateral development partners. The main objective of DPG is to foster policy dialogue and coordinate/ harmonize development partners’ support for effective implementation, monitoring and evaluation of the national development plan and Sustainable Development Goals (SDGs). While Ethiopia is one ofthe largest recipients of ODA in sub-Saharan Africa in terms of volume (USD 4.213 billion in 2016), the ODA per capita translates to only USD 37, below the sub-Saharan average of USD 50 per capita.
Global Partnership on Effective Development Cooperation (GPEDC) Monitoring Surveys
The recent 2023 – 2026 Global Partnership Effective Development Cooperation (GPEDC) monitoring exercise was conducted to monitor the progress made in implementing the Bussan Partnership using the above ten indicators. Among the ten indicators used globally, eight indicators were measured based on the data gathered at national level.
2018 Global Partnership on Effective Development Cooperation (GPEDC) Monitoring Survey Result
Background
The 2018 Global Partnership for Effective Development Co-operation (GPEDC) Monitoring Round was a global effort to understand how well countries and development partners work together to make aid truly effective. Instead of focusing only on funding, it looked at whether support aligns with national priorities, promotes transparency, and involves all stakeholders. This process builds on the commitments made in the Busan Partnership Agreement and helps track progress toward the Sustainable Development Goals, especially SDG 17 on partnerships. Countries like Ethiopia shared data on key areas such as how predictable aid flows are, whether partners use local systems, and how civil society and the private sector are engaged. The findings offer valuable insights to improve cooperation and strengthen partnerships—both within countries and globally—so development efforts deliver real results for people.
Photo by Abenezer Shewaga on Unsplash
Photo by Clay Knight on Unsplash
- National development planning and results orientation
Overall quality of national results framework
Ethiopia’s development strategy under GTP II is closely aligned with the Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063, with the ambition of reaching middle-income status by 2025. This plan serves as a roadmap for both the government and development partners, ensuring that progress leaves no one behind.
A key principle of effective development is that countries lead the way in setting their own priorities and defining results frameworks, supported by strong monitoring and evaluation systems. Ethiopia has done exactly that. According to the 2018 GPEDC monitoring results, the quality of Ethiopia’s national development plan is rated at 95%, significantly higher than the average for least developed countries (79%). This high score reflects the strength of Ethiopia’s approach: its strategy clearly defines priorities, sets measurable targets, includes indicators, and provides budget information. Annual progress reports are also part of the system, reinforcing accountability.
The plan is well aligned with the SDGs at the strategic, goal, and target levels, though not yet fully at the indicator level. Still, this inclusive and results-oriented approach is critical for ensuring country ownership and driving progress toward the 2030 Agenda.
Extent of use of country-owned results frameworks by development partners
The overall, development partners interventions alignment with the country priorities and country owned results frameworks is 82%, which is above the average result for LDCs (66%).
- 83% of development partner’s interventions objectives were drawn government results frameworks, it is above the LDCs score (83%) 97% 2016
- 78% of result indicators were taken from country result framework, it is above the LDCs score (63%)—79% in 2016
- 73% of indicators relay on data provided by country monitoring system, it is above the LDCs score (52%)— 67% in 2016
- 70% of interventions evaluation is joint evaluation with government, it is above the LDCs score (60%)— 80% in 2016
- Multi-stakeholder engagement
The 2018 GPEDC monitoring emphasizes that effective development requires the active participation of all actors—government, civil society, and the private sector. In Ethiopia, the enabling environment for civil society organizations (CSOs) was reported as basic by CSOs and development partners, while government representatives considered it negligible. This suggests that while some dialogue exists, it is far from robust or institutionalized.
Public-private dialogue was assessed as emerging, with government representatives noting limited engagement with both large firms and SMEs. This indicates that while there are efforts to involve the private sector, these interactions remain at an early stage and lack depth.
Overall, Ethiopia’s multi-stakeholder engagement shows progress but remains weak compared to the ideal of inclusive partnerships envisioned in the Busan principles and the 2030 Agenda. Strengthening these relationships is critical for ensuring that development efforts are participatory and leave no one behind.
- Quality and use of public financial management systems
The overall use of country public financial management and procurement systems has declined. Ethiopia has registered an overall decrease in the three elements measured by this indicator: financial reporting; national auditing; and use of national procurement systems. An average of 31% of total ODA used the country’s PFM and procurement systems compared to 45% in 2018 and 51% in 2013. The 31% total use of country systems represents an average of the 4 elements listed below. – Budget execution is 43% it is below LDCs (49%) but improved compared to 2016 result (25%
Financial Reporting is 26%, it is below LDCs (46%) and declined from 2016 result (42%) • Auditing is 32% and it is below LDCs (52%) and has declined from 2016 result (76%) • Procurement System is 24%, it also below LDCs (45%) and has declined from 2016 result (33%)
- Predictability and forward planning
Forward visibility of development Partners Predictable development co-operation could help government to plan and manage its development policies and programs with better effectivess.The 2018 GPEDC result indicates that:
- 79% of the total funds were disbursed as planned, the result is below LDCs but has improved when compared to 2016 result.
- 54% of the total funds were reflected in the rolling 3-5 year expenditure plans shared with the government. The result is below LDCs and global result but has improved when compared to 2016 result.
- Mutual accountability mechanisms
Mutual accountability underpins the efforts of development actors to meet joint commitments, improve how they work together, and increase their development effectiveness. Mutual accountability mechanisms are made up of multiple, reinforcing components that can help enhance transparency and accountability at country level.
- Ethiopia is not considered to have effective inclusive mutual assessment reviews. As per the result of 2018 GPEDC monitoring, among the five components which characterizes the presence of inclusive mutual assessment reviews in the country: (i) a policy framework that defines the country’s development cooperation priorities; (ii) targets for the country and its development partners; (iii) regular joint assessment against those targets; (iv) active involvement of other stakeholders; and (v) public availability of the results of these reviews, only two components- component iv and v are in place: inclusive assessments, which involve non state actors and on time & publicly availability of results of assessments.
- Ethiopia is approaching to meet indicator 8: countries have systems to track and make public allocations for gender equality and women’s empowerment (sdg 5c). The country has met or put in place two criteria: the presence of gender polices and transparent information on resources allocation. It remains a concrete effort to meet the third criteria, the presence of gender responsive PFM system.
- Additionally, 71% of development partners report through one or more of these systems and aid management system is in place.
- The share of development co-operation recorded on budgets subject to parliamentary scrutiny decreased from 63% in 2016 to 44%18 in 2018. The full inclusion of development co-operation flows on the approved national budget facilitates scrutiny by parliaments and accountability to the public, allowing for greater national ownership of development efforts. This indicator also serves as an indication of whether development partners and governments are effective in linking development co-operation with domestic policies and programmes.
2016 Global Partnership on Effective Development Cooperation (GPEDC) Monitoring Survey Result
In 2016, Ethiopia participated in the second Global Partnership for Effective Development Cooperation monitoring survey. The government and its partners have effectively managed development co-operation initiatives to deliver results. Global Partnership data show significant progress in alignment, country ownership and mutual accountability. Official development finance predictability and use of country systems feature as key areas for progress that requires collective effort from the government and its partners. Official development finance predictability and use of country systems feature as key areas for progress that requires collective effort from the government and its partners.
As per 2016 GPEDC monitoring survey result, 97% of new interventions of development cooperation’s objectives were drawn from Government results frameworks or other planning documents, including national development plan, joint donor government strategies, and sectoral strategies. The share of results indicators that rely on data provided by country- led monitoring system is 67% and 80% of interventions plan evaluations supported by the government. In all the three indicators, the national result was above the global average score.
Countries receiving aid has endorsed Paris Declaration on Aid Effectiveness in 2005 and agreed to strengthen their national system and donors agreed to use them to the maximum extent possible. These commitments were reiterated in the Accra Agenda for Action (2008) and the Busan Outcome Document (2011), where it was agreed that the use of country system (UCS) should be the default approach to channel aid.
However, overall use of country’s public financial management and procurement systems has declined in 2016 GPEDC monitoring survey( 45%) when compared to the last two surveys result 2010 (66%) and 2013/14 (51%). The 2016 survey results registered decrease in the four areas: national budget execution (25%), financial reporting (42%), National auditing (76) and Use of nation procurement system (33%). Despite all this, CPIA indicator indicated that the quality of Ethiopia’s public finance management system (PFM) has increased to 4 out of 6 in 2016 monitoring survey compared to the last two surveys 2010 and 2013 (3.5 in both years).
Aid on budget examines the proportion of scheduled disbursements actually recorded in Government’s annual budget (and approved by Parliament). In 2010 only 49% of aid was recorded in the Government’s annual budget, but great progress was made in the latest round of monitoring (2016), with 63%. The indicator serves to record domestic oversight and accountability for the use of development cooperation funding and results (funds can be recorded on budget even if they do not pass through the country’s treasury).
Country Ownership
Inclusive Partnership for Development
During 2016 GPEDC monitoring survey, Ethiopia has scored 3.5 out of five for engagement of and contribution of private sector to development. Participation of private sector in the economy is growing and development plans and policies are increasingly consultative with citizens at all levels. In general, the country has set platforms for inclusive multi-stakeholder dialogue on public – private partnership, including trade unions and civil society organizations.
On gender equality and women’s empowerment Ethiopia is cited as one of the few countries with a system in place to track and make public allocations on gender equality and empowerment. Ethiopia finalized its national gender-responsive budgeting guidelines for mainstreaming gender in the program budget process in November 2012. The focus should now be on the implementation of these guidelines.
Transparency and Accountability
Availability of information of development cooperation in the annual and medium term is critical in the efficient allocation and utilization of development resources.
Availability of information of development cooperation in the annual and medium term is critical in the efficient allocation and utilization of development resources. Annual predictability result has declined, 72% of the total funds disbursed as planned in 2016, compared to 89% in 2013-14 and 88% in 2010.Medium term predictability declined to 33% in 2016, from 85% in 2013/14. This decline could be attributed to changes in sourcing of data. Previously medium term disbursement was predicted by MoFEC based on previous year’s disbursement, while in 2016 the prediction was based on data provided by development partners themselves. Both annual aid predictability and mid-term predictability were below the global average 84% and 74% respectively.
Ethiopia meets the requirement on mutual accountability, by having country-level targets, assessments toward targets, involving non-executive stakeholders, and public results. Although Ethiopia does not have an aid policy or partnership policy, the Development Partners Group (DPG) and the Ministry of Finance and Economic Cooperation (MoFEC) have previously agreed on an aid effectiveness action plan with clear indicators to measure progress. In addition, the Government and the DPG jointly monitor the Second Growth and Transformation plan and have agreed on common indicators to track progress. The annual High-Level Forums (HLF), together with various sector working group and program meetings, regularly discuss the implementation of sector strategies and national priorities. Non-government organizations and CSOs are involved through participation in ad hoc sector working group meetings.
| Indicators | 2016 Survey results | 2016 Global average | 2013 Survey result | 2010 Global average |
|---|---|---|---|---|
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Indicator 1. Providers alignment and use of country led resultframeworks |
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Alignment with Gov objective |
97% |
85% |
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Alignment with Gov result indicators |
75% |
62% |
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Monitoring Systems |
67% |
52% |
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Joint Evolutions |
80% |
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Indicator 2. Inclusive partnership for development |
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Indicator 5a Annual Predictability (Percentage of disbursements made as per schedule) |
72% |
84% |
88% |
89% |
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Disbursements beyond scheduled (Percentage of disbursements made above their plan) |
48% |
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Indicator 5b Mid-term Predictability for the next 3 years |
33% |
74% |
85% |
85% |
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Indicator 6Aid on Budget |
63% |
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66% |
49% |
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Indicator 7 Mutual Accountability |
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Indicator 8 Gender Empowerment |
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Indicator 9a Strengthen of PFM |
4/6 |
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3.5 |
3.5 |
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Indicator 9b Use of Country system |
45% |
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National Budget Execution |
25% |
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Financial Reporting |
42% |
51% |
51% |
66% |
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Use of National Audit |
76% |
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Use of National Procurement System |
33% |
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Indicator 10 Aid is untied |
74% |
79% |
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2014 Global Partnership on Effective Development Cooperation (GPEDC) Monitoring Survey Result
The Paris Declaration on Aid Effectiveness, adopted in 2005 at the OECD High-Level Forum, set out five core principles to improve the quality and impact of aid: Ownership, Alignment, Harmonization, Managing for Results, and Mutual Accountability. Endorsed by over 100 donor and partner countries and 25 multilateral institutions, it became a global standard for aid effectiveness. To measure progress, regular monitoring surveys were conducted, including the 2014 round, which assessed performance against 12 indicators linked to these principles. These indicators examined critical aspects such as the use of country systems for procurement and financial management, the predictability of aid flows, the alignment of donor programs with national development strategies, and the existence of mutual accountability mechanisms between donors and partner countries.
The 2014 Post-Busan monitoring exercise provided Ethiopia’s first baseline assessment of how well development cooperation aligns with global effectiveness principles. Results show that aid predictability was strong, with 89% of scheduled funds disbursed on time and medium-term predictability at 85%, giving the government confidence to plan ahead. The share of aid recorded in the national budget reached 66%, helping align external resources with Ethiopia’s priorities. Mutual accountability mechanisms were in place, though they need to become more inclusive, involving civil society and private sector actors. Ethiopia’s public financial management systems scored 3.5 on the CPIA scale, but only 51% of aid used these systems, highlighting the need for stronger dialogue and trust-building. On a positive note, 87% of aid was untied, allowing greater flexibility and better value for money.
Overall, these results set an important benchmark for Ethiopia, showing strengths in predictability and alignment while pointing to areas for improvement—particularly in the use of country systems and inclusive partnerships.
ODA to Ethiopia
Official Development Assistance (ODA) has played a key role in supporting Ethiopia’s development initiatives throughout the years.
