Norwegian Development Cooperation (NORAD)
Norwegian Development Cooperation (--EDITED VERSION--)
June 2002
Executive Summary
A team comprising Gabriela Braun of GTZ, Stav Zotalis of Australian Aid, and Brigit Helms and Alexia Latortue of CGAP conducted a Donor Peer Review of the Norwegian Development Cooperation agencies in Oslo from 4-7 June, 2002. The review is part of a 21-agency initiative launched by UK Secretary of State Clare Short and CGAP to concretely tackle aid effectiveness by using microfinance as a test case.
The Peer Review focused on the internal procedures, practices and processes of NORAD to identify the success factors and constraints that influence the effectiveness of the agency’s microfinance operations. The Technical Department’s (TD) microfinance specialist provided the team with an orientation to the Norwegian Development Cooperation community and organized meetings with over 30 staff members from throughout NORAD, the Ministry of Foreign Affairs, Norwegian NGOs and Norfund. The team briefed State Secretary Olav Kjorven on 6 June and NORAD management and staff on 7 June.
The Peer Review’s visit was timely, given the current review of Norway’s overall development cooperation structure, and NORAD’s work to define a new policy for microfinance. The team hopes that this letter to management will enrich the internal discussions and provide specific ideas of how NORAD can improve the effectiveness of its microfinance operations.
This letter outlines NORAD’s strengths and challenges, and presents a number of specific recommendations for change. A matrix at the end of the letter provides a summary of the key findings and recommendations organized around six strategic areas.
The recommendations assume that NORAD will choose to continue engaging in microfinance and address the need to clarify NORAD’s role and comparative advantage in microfinance:
- Obtain Strategic Clarity. NORAD should clarify microfinance’s contribution to its development agenda, and define its comparative advantage in supporting microfinance both internally relative to other sectors and vis-à-vis other donor agencies.
- Improve Accountability for Results. NORAD should employ performance-based contracts in microfinance projects and embed incentives for sound practices in the program cycle.
- Engage NGOs on a Technical Level. NORAD should more actively support Norwegian NGOs in improving the quality and effectiveness of their microfinance operations.
- Enhance Technical Capacity and Clarify Role of TD. NORAD should consider creative ways to increase access to microfinance specialists, including hiring local and international experts, and should reorient TD toward a more systematic, proactive service center role.
- Focus. NORAD should focus on a few areas, e.g. Norwegian NGOs, innovations in African rural finance as well as support to global public goods and industry infrastructure.
|
 |
|
