Aid Coordination and Poverty Reduction

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What is the Project about?

Sierra Leone is a highly aid-dependent country. Foreign funds (grants and loans) as a proportion of recurrent and capital expenditure stood at 41% in 2014 and rose to 51% in 2015 due to EVD inflows. Given the significance of foreign aid for national development, the effective coordination and management of external resources is critical. To address this issue, there was the compelling need to establish a central hub for aid coordination and management in Sierra Leone. The government of Sierra Leone (GoSL) in partnership with the United Nations Development Programme (UNDP), the UK Department for International Development (DFID) and the Delegation of the European Commission (EC) established the Development Assistance Coordination Office (DACO) in 2004 in Office of the Vice–President. The Aid Coordination and Poverty Reduction project is being implemented through DACO. DACO had two key objectives:

  1. It served as a forum for the GoSL and donors to discuss the inflow of aid and aid effectiveness; and
  2. To create and establish a database to enable donors and the government know what everyone was doing.  In 2007, DACO was transferred to the Ministry of Finance and Economic Development (MoFED). 

DACO has received tremendous support from government to coordinate meetings and dialogue with donors and the government.  

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Accomplishments so far

Some of the key achievements of DACO are:

  1. Served as the secretariat for the preparation of the government’s Poverty Reduction Strategy Papers (PRSP II-Agenda for Change-2007-2012) and (PRSP III-Agenda for Prosperity-2013-2018);
  2. DACO spearheaded various aid effectiveness initiatives such as the Collaboration African Budget Reform Initiative (CABRI), the International Aid Transparency Initiative and the New Deal signed in Busan in 2011.  DACO is the focal institution for the New Deal;
  3. DACO coordinates the Development Partnership Committee (DEPAC) meetings, which serves as a high level body for mutual accountability, providing the forum for frank and continuous dialogue between GoSL and DPs on regular basis.  Presidential and ministerial DEPAC meetings are chaired by the Government, the UN RC and the World Bank;
  4. The establishment of an aid tracking system in the form of the Development Assistance Database (DAD) and the publication of several Development Assistance Reports (DAR);
  5. Preparation of an Aid Policy: A document entitled “Towards an Aid Policy for Sierra Leone” was prepared in March 2007 by an international consultant commissioned by the DEPAC Task Force on Donor Harmonization and Aid Effectiveness as the basis for developing an aid policy for the country.

UNDP Contribution to DACO



Year Amount
2012 US$  372,714
2013 US$  772,061
2014 US$  454,941
2015 US$  375,690
2016 US$  368,814

Delivery in previous Fiscal year

Year Delivery
2012
 
2013 US$  670,678
2014 US$  367,665
2015 US$  210,581
US$  210,581
US$  210,581

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