STATEMENT BY DR EDWIN N. FORLEMU, EXECUTIVE SECRETARY A.I. THE AFRICAN CAPACITY BUILDING FOUNDATION
HIGH LEVEL FORUM ON AID EFFECTIVENESS ACCRA, 2-4 SEPTEMBER 2008

The Accra High Level Forum (HLF) on Aid Effectiveness offers an opportunity to reflect further on the progress we have made since the Paris Declaration - an important milestone in the effort to enhance effectiveness of aid and achieve better development results. The world has made some progress in the implementation of the principles of the Paris Declaration on the road to sustainable poverty reduction. However, there remains quite a distance to cover before we achieve success. What is clear is that the most compelling argument for aid effectiveness is how successful it is in eventually reducing the reliance of recipients on aid itself. Capacity building lies at the core of efforts to make aid better and more effective. Three factors underpin the central role of capacity building: (i) the need for capable leadership and know-how to spearhead change; (ii) the need for the overarching visions to direct the efforts of states and other stakeholders; and (iii) the need for an enabling environment of roles, processes and institutions to guide all actors involved.

Progress has been made in many areas of the Paris Declaration. However, more needs to be done to translate the demonstrated goodwill towards the enhancement of the ownership and leadership of partner countries into more effective support to the development of country-led capacity development and governance reforms. The opportunities for making significant headways in accelerating broad-based growth and uplifting an even larger proportion of women and men out of poverty are greater in Africa today than they have ever been in recent history. By scaling up investments in capacity development and the strengthening of the governance systems, Africa and its partners can achieve the desired transformation of its institutions, which represents a necessary condition to accelerated growth and sustained expansion of its share in global trade.

African institutions have a particular role to play in ensuring. that capacity development is at the center and end of their development strategies. Capacity development is a long-term process, requiring a deep understanding of local realities. Over the last fifteen years, African institutions have gained much valuable experience in facilitating capacity development initiatives, underpinned by the principles of ownership, leadership and alignment with local systems. Successes recorded in strengthening capacity for policy formulation and improved participation in the development process are illustrated by the improved quality of development programs in the public sector, debates in national parliaments, efforts to integrate gender concerns, and a more informed voice of civil society organizations and other non-state actors.

Capacity development is increasingly recognized as a key to improving the performance of institutions responsible for delivering quality services to the poor and for achieving development results. However, development partners have not yet accorded adequate attention to the need for developing comprehensive frameworks that align long-term capacity development strategies with the long-term development goals of partner countries. Capacity development efforts have been driven by immediate short-term needs to address the challenges of implementing critical reforms. Good results have been achieved in many functional areas in the public sector.

Over the last 17 years, the African Capacity Building Foundation (ACBF) has focused its support on the development of indigenous capacity to formulate economic policy by investing in the development of public policy centers that address the need for policy advice of government agencies, parliaments and civil society organizations.

A robust number of capacity development initiatives supported by the Foundation constitute a good testimony to its contributions. Indeed, sustainable capacity development involves the creation, utilization and retention of capacity. In the effort to tackle capacity in the area of policy analysis, many public policy centers are challenged to retain their experienced policy analysts because of distortions in incentive systems in the labor market. This example supports the need to address capacity development support in a strategic and comprehensive manner so that we can achieve desirable and lasting development results through better aid.

As a way of improving results in the management of aid, successful experiences at the country, regional and continental levels should be expanded. More than 17 years ago, the African Capacity Building Initiative was endorsed by a group of donors and African countries. They had agreed to establish the African Capacity Building Foundation with a governance system and a funding mechanism that very much embody the principles of ownership, harmonization and alignment. The capacity development results achieved so far by the Foundation are attributable more to beneficiary countries than to individual donors to the Foundation.

Donor countries can scale up their support to successful models of partnership which embody the principles of the Paris Declaration and take bold steps in encouraging more innovative and ambitious solutions to capacity development led by partner institutions. Technical cooperation has remained a preferred mechanism for supporting capacity development by donor countries. However, bold steps are needed to reform technical cooperation for better alignment with development partners' long-term institutional transformation and capacity development strategies, including the review of incentives.

ACBF is a model of partnership embodying the principle of equal partnership and recognition of the leadership of African institutions in shaping the capacity building agenda. Strategic areas of focus of the Foundation's interventions have been demand-driven as they have been based on the needs expressed by the core public sector, parliaments, and non-state actors - including civil society organizations and private sector associations.

Closer cooperation of leading African institutions and better specialization in the provision of knowledge and services in capacity development are also needed if the Continent is to reclaim intellectual leadership of its development agenda. Investing in capacity building to improve the effectiveness of critical functions in the core public services, strengthening the parliamentary oversight role, and empowering civil society and women will constitute parts of the strategic goals of ACBF over the next five years. The Foundation is in the process of re-engineering its strategy and operations with a view to shoring up its orientation to manage development results. This process would require increased collaboration with other partners by sharing knowledge and resources on how to enhance the effectiveness of investments in capacity development in Africa.

If the Millennium Development Goals (MDG's) are to be met at all they have to be in Africa. Capacity development is crucial to meeting the MDG's and no more so than in Africa. In pursuing the Paris Declaration, ACBF has sought to provide a unique bridge between partner countries and donors. As ACBF becomes more strategic and long-term in its approach, working with partner countries in helping create an environment in which donors demonstrate increasing confidence in using partner institutions and systems, it will contribute to making the broader aid architecture more effective. We believe that, with the right level of resources, ACBF can make a significant contribution to the Accra Agenda for Action in Africa.