ABSTRACT

This chapter examines the 2005 Paris Declaration (PD) on Aid Effectiveness and the contemporary aid-effectiveness architecture in Pakistan. Thus, there is a shift in focus from the factors and determinants behind the US aid allocation to US aid delivery and utilization within Pakistan. The key motivations behind the provision of US aid to Pakistan were discussed in Chapter 2, which addressed the first research question that focused on the predominant determinants behind US foreign aid policies. “Why” the US has provided generous aid to Pakistan in certain periods and why the latter has remained a pariah state for the former during different periods has been answered. Now the focus is on the second research question, which examines to what extent both the Government of Pakistan (GoP) and US government agencies have incorporated the commitments made under the 2005 Paris Declaration on Aid Effectiveness. To this end, this chapter looks at the PD commitments and explores the factors that prompted the emergence of the PD at the global level. The chapter then examines policy initiatives as well as institutional set-ups undertaken by the GoP for effective utilization of aid within the PD framework. The main aim is to explore the gaps and linkages between the aid-effectiveness agenda of the PD and the various initiatives and strategies taken by the GoP. Therefore, both the PD and GoP plans are critiqued to examine to what extent these fulfil the prerequisites for improving aid effectiveness. While the “quantity” or “volume” of aid matters, the “quality” of development cooperation is equally important for making a real impact in addressing the actual issues with which aid-receiving communities are faced. And it is the issue of quality of aid that the Paris Declaration principles attempted to address. Thus, by presenting a comprehensive overview of the aid-effectiveness discourse, this chapter also prepares a platform for the second research question, looking at both USAID and GoP policies and practices in Pakistan within the PD framework.