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Extra info for OECD Development Assistance Peer Reviews: New Zealand 2010

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Sector allocations: continued support to social infrastructure and services The New Zealand aid programme has historically largely focused on “social infrastructure and services”, which received 41% of bilateral ODA in 2007/08, just above the DAC average of 40% (Table B5, Annex B). This focus has remained fairly constant since 2002, yet the allocation of funds among the different components of this sector has evolved slightly. While still well above the DAC average of 9%, funds to education decreased from 22% in 2002-2006 to 18% in 2007/08.

DAC PEER REVIEW OF NEW ZEALAND © OECD 2011 50 – SECRETARIAT REPORT Headquarters signs all contracts, and financial delegation of authority is limited. The Head of Mission is theoretically delegated authority up to NZD 500 000. However, in practice he or she cannot make full use of this financial delegation due to unsuitable business processes and management systems. This hampers New Zealand‟s effectiveness, as noted by its partners in Samoa and Vanuatu (Chapter 5). IDG needs to streamline its aid management system to allow more effective delegation of authority to country offices.

It is seeking to focus its aid to Indonesia more specifically on the remote island parts of the country. Nonetheless, there is scope for 9. China and South Africa are no longer core partners. DAC PEER REVIEW OF NEW ZEALAND © OECD 2011 42 – SECRETARIAT REPORT further improvement. New Zealand‟s bilateral aid to its top 20 recipients has become less concentrated over time, dropping from 60% over 1997-2001 to 57% in 2007/08, below the DAC average of 65%. 10 With the exception of Indonesia, New Zealand‟s aid is thinly spread across Asia where, as a small player, it risks adding to the administrative burden of partner countries.

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