The 2011 DAG Annual Report provides an opportunity to reflect on the positive developments in the area of development cooperation, partnership and policy dialogue with the Government of Ethiopia.

The Growth and Transformation Plan (GTP) has provided a common framework for development and achievement of the Millennium Developments Goals (MDGs) in Ethiopia in the medium term and created a conducive platform for Government leadership of harmonization and development in the country.

The first year of the GTP’s implementation has shown positive strides in achieving some of the targets set out by the government including a reduction in poverty and the maintenance of a high growth rate. As a contribution to this, the Government and the Development Assistance Group (DAG) continued to work on strengthening the monitoring and evaluation system, gender and the Education Sector Development Programme through the DAG Pooled Funds.

In particular, the financing provided has contributed to capacity development, institution building and policy research. Other initiatives included promotion of aid effectiveness and harmonization as part of the Government and DAG commitment to the follow up on the Paris Declaration and the Accra Agenda for Action.

The Aid Effectiveness Taskforce chaired by the Ministry of Finance and Economic Development (MoFED) reconvened and held several consultations on the 2011OECD Survey, which was a concrete input into the Fourth High Level Forum on Aid Effectiveness held from 29 November and 1 December 2011 in Busan, Korea. On this basis both the government and the DAG are re-examining ways of making development cooperation more effective in the context of the changing global aid environment. This includes developing new inclusive partnerships and improving the way in which aid is managed within the country context.