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Research Report

Non-paper on Pooled Funding Mechanisms in Post-Conflict Situations

Mariska van Beijnum
Rutger Kaput
Copyright Date: Jun. 1, 2009
Published by: Clingendael Institute
Pages: 22

Table of Contents

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  1. (pp. [i]-[ii])
  2. (pp. [iii]-[iii])
  3. (pp. 1-1)

    1. On 8 July 2009, the Netherlands Ministry of Foreign Affairs – in close cooperation with the UN Development Operations Coordination Office (DOCO) and the UNDP Multi-Donor Trust Fund Office (MDTF Office) in its capacity as the principal fund administrator of ongoing UN pooled funding mechanisms – will host an informal high level meeting on MDTFs and other pooled funding mechanisms in post-conflict situations and UN ‘Delivering as One’ countries. The purpose of the meeting, that will be attended by representatives of donor governments, the OECD/DAC, key UN organisations playing an active role in most UN MDTFs and the World Bank...

  4. (pp. 1-3)

    4. In understanding the rationale for pooled funding mechanisms in post-conflict situations, it is important to underline some of the peculiar characteristics of the period following the cessation of hostilities, i.e. the immediate aftermath of conflict. This period is characterised by a multitude of un-met needs that stretch from life-saving humanitarian needs (immediate provision of basic services to a needy population), to the need for stabilisation and rehabilitation (peace dividend), to the need to start rebuilding society (reconstruction of social and economic infrastructure) and state institutions (statebuilding). To provide an answer to these needs, it is essential for the international Reconstruction...

  5. (pp. 3-5)

    8. The international community has increasingly been involved in a debate on the need for a better coordination and harmonisation of the various aid activities – both in ‘traditional’ development cooperation settings and in (post)conflict settings – to ensure maximum accountability, efficiency and transparency. In recent years, various donors have committed themselves to international initiatives and agreements that underline the importance of harmonising aid activities – e.g. the Paris Declaration, the Accra Agenda for Action and the OECD/DAC Principles for Good International Engagement in Fragile States. Central to these initiatives is an increasing emphasis on aid harmonisation, donor alignment, mutual accountability,...

  6. (pp. 5-14)

    16. The informal high level meeting on MDTFs and other pooled funding mechanisms in post-conflict situations and UN ‘Delivering as One’ countries that will take place in July 2008 will deal with transition financing and not with humanitarian assistance. However, the progress made and lessons learned with pooled funding for humanitarian assistance could be of value. For that purpose this paper will elaborate to some extent on humanitarian assistance as well.⁶ In line with the growing recognition of the potential benefits of pooled funding mechanisms and the importance of aid coordination and harmonisation, the use of pooled funding in post-conflict situations...

  7. (pp. 14-15)

    41. It is important to stress that, given all the knowledge, experience and lessons learned available in terms of the functioning of pooled funding mechanisms in post-conflict situations, there is no need to create new mechanisms: existing instruments can potentially cover the needs present in those kind of situations, as long as certain issues are taken into account. The continuing international discussion on pooled funding mechanisms should focus on these issues (see section 6). Taking the existing mechanisms as a starting point, one can already see a ‘natural’ sequencing in the instruments.

    42. During a conflict, assistance should continue to be provided...

  8. (pp. 15-18)

    47. Based on the experiences and lessons learned of the various funds that have been discussed, it is clear that the lack of flexibility and the delay in implementation are perceived as the main obstacles in the functioning of pooled funding mechanisms in post-conflict situations. Related to this, certain key issues can be identified at donor level:

    1) Many donors are still channelling funds to post-conflict situations outside of the pooled funding mechanisms discussed. The advantages of pooled funding mechanisms only apply when donors use them as the preferred channel for funding. Donors need to identify the bottlenecks to contribute to...

  9. (pp. 18-18)

    50. In order to take the international debate on pooled funding mechanisms in post-conflict situations forward, the following suggestions for follow-up are presented:

    1) Working on Principles for Transition Financing within the OECD/DAC (following on the on-going work in the Financing and Aid Architecture Task Team);

    2) Building a donor collective to support pooled funding mechanisms in post-conflict situations (e.g. within the EU context, both dialogue with those donor countries not contributing to pooled funding mechanisms, and dialogue with the European Commission);

    3) Creating a task team consisting of representatives of entities with experience and record in administering MDTFs such as...

  10. (pp. 19-19)