Effective Aid Coordination: A Case Study of Lao People's Democratic Republic

<p>The purpose of this research is to find what is "effective aid coordination" particularly drawing from the case study of Lao People's Democratic Republic and lessons from Vietnam and Timor Leste. The study proposes that a solution to the problem of poor delivery of ODA is that the development industry must improve its ODA spending systems and incorporate aid budgets into the national budget and development plans. It is vital to encourage national governments to lead their own development agenda and support development according to local priorities. The results suggest that it is not just a matter of coordinating aid effectively, but the aid industry needs the right capacity and people to be involved. Capacity building is much needed within the recipient national offices as well as many of the international donor agencies. This would allow the local government to take the lead and prioritise the commitments signed in the Paris Declaration, the Vientiane Declaration and the Millennium Development Goals. It is recommended by many practitioners that the number of agencies working in decision making processes in the aid effectiveness agenda in Laos should be limited to reduce transaction costs and promote clear communication within the development community. However different environments such as Timor Leste, suggests that civil society should be involved more and that donor agencies should not take the lead in aid delivery.</p>