allocating them to low-income countries on the basis of policy performance. Debt relief to be provided under the MDRI will be in addition to existing debt relief commitments by IDA and other creditors under the Enhanced HIPC Debt Initiative. The MDRI calls for 100 percent cancellation of IDA, AfDF, and International Monetary Fund (IMF) debt for countries that reach the HIPC completion point. The costs include principal and interest foregone for all multilaterals participating in the Initiative, except IMF, which only include principal. The estimated costs for IMF reflect the stock of debt eligible for MDRI relief, which is the debt outstanding (principal only) as of end-2004 and that has not been repaid by the member and is not covered by HIPC assistance (EBS/05/158 Revision 1, 12/15/2005). Source: Data on net official development assistance are from the Development Assistance Committee of the Organisation for Economic Co-operation and Development, Geographical Distribution of Financial Flows to Developing Countries, Development Cooperation Report, and International Development Statistics database. Data are available online at www.oecd.org/dac/stats/idsonline. Data on food aid shipments are based on data compiled by the World Food Programme at www.wfp.org/fais/. Data on HIPC countries are from the International Development Association and International Monetary Fund “Heavily Indebted Poor Countries (HIPC) Initiative and Multilateral Debt Relief Initiative (MDRI)—Status of Implementation.” Data on external debt are mainly from reports to the World Bank through its Debtor Reporting System from member countries that have received International Bank for Reconstruction and Development loans or International Development Association credits, as well as World Bank and IMF files. Table .. Status of paris declaration indicators The Paris Declaration is the outcome of the 2005 Paris High-Level Forum on Aid Effectiveness, where 60 partner countries, 30 donor countries, and 30 development agencies committed to specific actions to further country ownership, harmonization, alignment, managing for development results,
and mutual accountability for the use of aid. Participants agreed on 12 indicators. These indicators include good national development strategies, reliable country systems for procurement and public financial management, the development and use of results frameworks, and mutual assessment of progress. Qualitative desk reviews by the Organisation for Economic Co-operation and Development’s Development Assistance Committee and the World Bank and a survey questionnaire for governments and donors are used to calculate the indicators. PDI-1 Operational national development strategies are the extent to which a country has an operational development strategy to guide its aid coordination effort and overall development. The score is based on the World Bank’s 2005 Comprehensive Development Framework Progress Report. An operational strategy calls for a coherent long-term strategy derived from it; specific targets serving a holistic, balanced, and well-sequenced development strategy; and capacity and resources for its implementation. PDI-2a Reliable public financial management is the World Bank’s annual Country Policy and Institutional Assessment rating for the quality of public financial management. Measured on a scale of 1 (worst) to 5 (best), its focus is on how much existing systems adhere to broadly accepted good practices and whether a reform program is in place to promote improved practices. PDI-2b Reliable country procurement systems measure developing countries’ procurement systems. Donors use national procurement procedures when the funds they provide for the implementation of projects and programs are managed according to the national procurement procedures as they were established in the general legislation and implemented by government. The use of national procurement procedures means that donors do not make additional, or special, requirements on governments for the procurement of works, goods, and services. (Where weaknesses in national procurement systems have been identified, donors may work with partner countries to improve the efficiency, economy, and transparency of their implementation.) The objective of this indicator is to measure and encourage improvements in developing countries’ procurement systems. Technical notes
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