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    Organizational restructuring among aid donors

    Achieving aid effectiveness is requiring donor institutions to address administrative impediments and change the way they do business.

    By Christine Dugay // 09 September 2011

    Tight budgets and the aid effectiveness agenda are causing donor institutions across the world to rethink their organizational structures and business processes. Indeed, ensuring “more bang per buck” depends, in part, on how aid delivery is managed. Traditionally cautious and risk-adverse, many donor agencies admit that cultures of robust oversight and micromanagement led to unnecessary effort and process duplication, overlap of functions, gaps, confusion, and waste of resources.

    It appears that some donors understand that achieving aid effectiveness starts with internal organization, management, and process reforms. The following are just a few examples of the structural and process changes donor institutions are adopting:

    • U.K. Department for International Development: New information strategy for 2011-2015 dictates increased reliance on technology to compensate for major administrative and human resource cutbacks.

    • Gesellschaft für Internationale Zusammenarbeit (GIZ): New leading German development agency formed through the merger of German Technical Cooperation known as GTZ, German Development Service known as DED, and InWent. Organizational change and process integration is ongoing.

    • Millennium Challenge Corporation: Major organizational realignment resulted in the consolidation of two key departments under one unit and the creation of portfolio and risk management division.

    • Swedish International Development Cooperation Agency: Structural reorganization, from two-tiered leadership structure to nine departments under the director general, will result in considerable staff reductions from 929 staff members in 2010 to 800 in 2011.

    Read more:

    • In Sweeping Aid Reform, Merged German Agency Becomes Operational

    • Assessing DFID Reforms

    • Daniel Yohannes Outlines MCC’s Structural Changes

    • Institutional Development
    • Humanitarian Aid
    Printing articles to share with others is a breach of our terms and conditions and copyright policy. Please use the sharing options on the left side of the article. Devex Pro members may share up to 10 articles per month using the Pro share tool ( ).

    About the author

    • Christine Dugay

      Christine Dugay

      Christine is a former senior analyst under the Surveys and Advisory Services team of Devex. A skilled researcher, she contributes to and/or leads custom research projects and surveys commissioned by leading companies and development institutions. Christine has a professional certificate in political economy and a master’s degree in Japanese studies, and is a fellow of the Japan Foundation.

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