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Sectoral Practices and Experiences in Coordination (SPEC) Sheet
Economic Stabilization
1) Definition/explanation of sector.
2) What are the top 10-12 best practices within your sector?
1: Local ownership over development and reform process is vital. Locally-driven projects are more successful and sustainable, and local insights on and participation in host country investment activities and opportunities is essential.
2: Donor coordination is also essential. This ensures donor priorities are assessed to avoid conceptual and philosophical differences, duplication of effort, incoherence of approach, and the possibility of donors being played against each other. Work with other donors on upstream analysis, joint assessments, shared strategies, coordination of political engagement, multi-lateral trust funds, and any other practical initiatives.
3: Engage the private sector. The domestic private sector is, more often than not, most affected by conflict or instability. Private sector-led growth is critical for economic development. There is a role for both international and domestic private sector investment according to local capacity, infrastructure, and priorities.
4: Donors must hold their priorities in check and be sure to do what is best for the host country and its situation, not what is in donor’s best interest. Again, listen to the locals.
5: Regular interface among local and international actors is imperative as projects and programs progress. Enables donors to continue to draw on local expertise and keeps local actors in the loop.
6: Draw lifecycle sector-specific national strategies identifying tasks to be accomplished by each donor over the short, medium, and long-terms in order to avoid piecemeal efforts. Make the strategy public. Recognize that all tasks carry economic consequences.
7: Make establishment of a professional, competent, and accountable public service a priority in order to ensure the delivery of public goods and services.
8: Decide if and/or how to engage diasporas in support of reconstruction and stabilization objectives.
9: Recognize that security and economic development go hand in hand. It is impossible to attract investment unless the security situation allows for trade, freedom of movement, and secure market place. Conversely, ensure economics becomes part of any reconstruction strategy from day one.
10: Address corruption and transparency issues early on. Early on, aid and assistance need not be tied to efforts to eliminate corruption but need to be addressed, acknowledged and should be built into medium term aid.
11: Set up a mechanism for government and NGOs to track and coordinate development and assistance. Develop a national strategy identifying tasks to be done in each sector and donors to accomplish said tasks.
12: Do no harm. Avoid activities which undermine national institution building such as bypassing national budget processes or setting high salaries for local staff. Work out local staff remuneration in consultation with government and other national stakeholders.
3) What websites would you recommend we list in the SPEC sheet?
www.undp.org
www.imf.org
www.worldbank.org
www.international-alert.org
www.sfcg.org
www.oecd.org/dac
4) What suggested further reading would you recommend?
Winning the Peace, Robert Orr, Editor, CSIS Press.
Local Business, Local Peace: the Peacebuilding Potential of the Domestic Private Sector, International Alert
Promoting Pro-Poor Growth: Policy Guidance for Donors, OECD, DAC Guidelines and Reference Series
Helping Hand? Aid to Failing States, Paul Collier, University of Oxford
5) Who are your key partners?
State: Office of Economic and Agricultural Affairs (E), Bureau of Economic and Business Affairs (EB), USAID, OECD, European Union, European Commission, APEC, ASEAN, DFID, GTZ (German Development Agency), UNDP, International Alert, Search for Common Ground
6) What graphics, photos and other illustrations would you recommend for the newsletter?
DRAFT – Internal USG Use Only – Not for Distribution