December 2010 1

CONCORD position paper on CSO enabling
environment for the 4th High -Level Forum on Aid
Effectiveness in Busan, South Korea 1

Introduction

In the Accra Agenda for Action (AAA), donors and governments committed to provide enabling conditions for
CSOs that maximise their contributions to development. Moreover, the AAA recognises CSOs are
development actors in their own right whose efforts complement those of governments and the private
sector. This has been a considerable step forward with respect to the Paris Declaration which turned a blind
eye to the role of CSOs in development. Today it is recognised that CSOs play key roles in development, as
watchdogs holding governments to account, as organisations facilitating citizen engagement in development
and as providers of essential services, among others. The ongoing political turmoil in the Middle East and
North Africa shows the limitations and ineffectiveness of donor approaches that ignore or neglect a
continued and strategic engagement with and suppo rt to domestic CSOs.

However, since Accra progress on improving the enabling environment for CSOs has been meagre
and the implementation of international commitments on enabling environment at country level was sluggish
at best. A clamp -down on civil soci ety and shrinking political spaces for CSOs to engage in public policy
making can be observed in many countries. A number of reports 2 show that since Accra the environment has
become less enabling in many countries. Many partner governments, for instance, put restrictions on CSOs
that receive funding from foreign donors (i.e. Ethiopia). This backlash against CSOs threatens to undermine
the efforts to promote domestic accountability and democratic ownership which are key to realising aid and
development effe ctiveness .

Also in Europe, CSOs are observing a limitation of dialogue opportunities with administrations and
decision -makers . CONCORD fears that these trends will undermine reform efforts to strengthen domestic
accountability and democratic ownership. Th anks to its ongoing consultation processes with civil society
(Structured Dialogue, Green Paper consultations, see below), the EU is in a privileged position to promote
the issues of domestic accountability, democratic ownership and CSO enabling environmen t and to push
other donors and partner governments to make strong and concrete commitments on CSO enabling
environment at the HLF4, i.e. by supporting a multi -stakeholder agreement on minimum standards for
enabling conditions for CSOs.

The European Commis sion and EU member states are seeking to reform the way they do business in
international development. Many donors are re -assessing their engagement with and funding to different
stakeholder groups through different channels. CSOs play increasingly importa nt roles in building state –
society relationships, democratic ownership and domestic accountability in an international aid
architecture i3 with new donors emerging (i.e. China) and an increased interest by donors in demonstrating
1 This position paper sets out CONCORD’s priorities and views on how the European Union should address CSO
enabling environment in the r un-up to and at the 4th High -Level Forum on Aid Effectiveness in Busan, South Korea.
Other areas of aid and development effectiveness will be addressed by forthcoming or existing CONCORD AidWatch
and BetterAid position papers. 2 Throughout 2009 and 2010, t he International Center for Not -for -Profit Law reported, among other things, on shrinking
political spaces and restrictions on foreign funding for civil society. Also the Open Forum and the World Movement for
Democracy , through their res pective consultations, have observed shrinking policy spaces for and increased government
restrictions on CSOs. 3 The EC has launched a series of Green Paper consultations, including most notably on Inclusive Growth and on budget
support. Both consultation s raised questions and issues on the role of CSOs in development and how to best work with
and support them. Notably, the Green Paper on Inclusive Growth states that the “ EU promotes minimum standards of an
enabling environment for CSOs and encourages a genuine dialogue between State and Non -State”. The Green Paper on
budget support in turn points to the need for donors to enable CSOs to participate in national policy dialogue and monitor
the use of foreign assistance, particularly the use of budget support.

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results to taxpayers and li nking development with security and private sector development. This is especially
true for countries that receive high levels of budget support 4.

Providing an enabling environment for CSOs requires a long -term and continued commitment from
both donors an d governments to reform practices in areas as diverse as financial support, legal
frameworks and political conditions 5. With just over five and two years having passed since the Paris
Declaration and AAA respectively were agreed, it is perhaps not surprisi ng that necessary reforms are not
yet fully implemented and require continued application and monitoring.

Key demands from CONCORD

General demands

1. Recognise the Open Forum framework for CSO development effectiveness:

At the first Global Assem bly of the Open Forum in September 2010, the Open Forum endorsed the eight Istanbul
Principles. At the second Global Assembly in June 2011, the Open Forum will finalise a framework setting out guidelines,
indicators, mechanisms and enabling conditions for how the Istanbul Principles can be implemented. Donors and
governments are important and indispensible partners for CSOs in development processes. CONCORD therefore calls
upon the EU to recognise the Open Forum framework in its entirety as a key CSO contri bution to improve their
effectiveness.

2. Endorse and promote minimum standards for an enabling environment for CSOs:

The Open Forum framework will include proposals for minimum standards for enabling conditions for CSOs. Minimum
standards will cover are as as diverse as funding, legal frameworks and political conditions. These proposals are
currently being developed through a global process 6. Governments and donors have been part of the discussions at
many occasions, notably in the Task Team on Civil Soci ety Development Effectiveness and Enabling Environment.
CONCORD calls upon the EU to endorse and promote the Open Forum proposal for minimum standards for an enabling
environment, i.e. by endorsing together with CSOs a multi -stakeholder agreement on enabli ng conditions. We also call
upon the EU to endorse and implement the recommendations from the Task Team 7. The EU should push partner
governments and other donors to support such an agreement.

3. Enact and implement comprehensive strategies for support to and engagement with CSOs

Many EU donors have already designed comprehensive strategies to engage with CSOs. However, many EU donors are
still lacking such a strategy, notably the European Commission 8. The EU must be a champion in predictable, strategic
and long -term engagement – including political and financial support – with CSOs. In addition, the EU should bring the
key lessons learned and recommendations from the Structured Dialogue to the aid effectiveness debate and the HLF4.

4 The Court of Auditors report on the Commission’s Management of General Budget Support in ACP, Latin American and
Asian Countries states that the EC has given insufficient attention to strengthen ing key oversight institutions (CSOs,
Parliaments, Court of Auditors) in countries where it is providing budget support. 5 The draft framework f or CSO development effectiveness (version 2 from November 2010) sets out minimum standards
to be met by donors and governments to provide enabling environments (see section IV and annex III). These minimum
standards were identified through a global and in clusive consultation process, involving over 2,000 CSOs in over 60
consultations globally. 6 To date, more than 2,000 CSOs have been consulted in more than 60 consultations worldwide. Please visit www.cso –
effectiveness.org for more details. 7 https://www.cso -effectiveness.org/IMG/pdf/final_key_messages_from_the_task_team.pdf 8 The Evaluation of EC Aid Delivered through CSOs (December 2008) shows that the absence of a clear and consistent
strategy limits the effectiveness of the EC’s engagement with CSOs.

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Specific demands

1. Institutionalise policy dialogue with CSOs at country level and in the EU

To give effect to paragraph 13 of the Accra Agenda for Action, CONCORD calls upon the EU to promote institutionalised
policy dialogues with CSOs from the EU and CSOs in partner countries on the planning, implementation, monitoring and
evaluation of development programmes and projects, as well as on EU policies that affect partner countries.

EU donors must support policy dialogue between CSOs in partner countries and their natio nal governments. At a
technical level, this means i.e. supporting capacity -building both within governments (both at central and local levels)
and CSOs, technical assistance for judicial reforms in support of CSO policies and enabling legislation, or provi ding
support to coalition and platform building among CSOs. At a political level, it means to play an active role in promoting
human rights practice, good governance and domestic accountability, i.e. by providing financial assistance to CSO
initiatives aim ing at building citizenship and strengthening democratic ownership and human rights. The EU, i.e. through
EU delegations, should assume a responsibility to facilitate the political and legal enabling environment for CSOs in the
dialogue with partner govern ments.

2.Provide responsive, long -term and accessible funding for CSOs

Funding to CSOs must respond to CSO priorities and respect their multiple roles as independent development actors,
hence respecting the key principle of ownership which should apply n ot only to funding for governments but also to
funding for CSOs.

EU donors must step up responsive, and accessible funding and ensure the access to a wide range of CSO actors
(including grassroots organisations) and to other institutions that can promote democratic ownership and domestic
accountability, such as Parliaments and Court of Auditors.

Funding must become increasingly long -term and predictable to enable CSOs to tackle the more structural stumbling
blocks to poverty and marginalisation. Grant con ditions should allow for a certain degree of flexibility to ensure that
projects and programmes can respond to changing contexts. Enabling funding conditions should also attend to support
processes and institutional funding. CONCORD has put forward concret e recommendations on how to improve funding
to CSOs in the Structured Dialogue and calls upon the EU to promote the key lessons learned from this EU consultation
process at international level, including HLF4 9.

3.Promote results -driven assessment and repo rting frameworks

In light of the evolving agenda around results and value for money and increased interest in accountability to taxpayers,
CONCORD fears that donors might be tempted to focus increasingly on quick wins and short -term, tangible results and
outputs. CONCORD therefore calls upon the EU to ensure that this increased interest in results does not undermine, but
promote a focus on long -term, sustainable approaches to development, outcomes achievement and impact
measurement. This is especially impo rtant in the work of CSOs that often engage in long -term political and
empowerment work at local levels.

4. Promote increased harmonisation among donors on the administrative requirements attached to
funding

CONCORD calls upon the EU to promote increased harmonisation among donors on the administrative requirements
attached to funding. Many CSOs receive funding from multiple donors each with different procedures, eligibility criteria
and reporting requirements. This leads to CSOs expending limited resourc es on multiple donor templates. CONCORD
acknowledges and commends the work that is already being done by Nordic+ countries as part of the Reality Check on
Harmonisation, as well as the efforts by the Donor Group on Civil Society and Aid Effectiveness 10 and encourages all
other donors to harmonise, where possible, their assessment and reporting requirements.

9 See CONCORD Structured Dialogue Principles Paper . 10 The Donor Group has finalis ed a report on donor grant conditions which proposes possible areas for harmonisation.

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EU donors to engage with CSOs in the run -up to HLF4 on
enabling environment

Open Forum for CSO Development Effectiveness
EU donors and some partner governments have shown a continued engagement in the Open Forum for
CSO Development Effectiveness. This global process was started by CSOs after Accra to define a
framework, including principles, for their own effectiveness. This framework will include pro posals for
minimum standards for an enabling environment for CSOs. The Open Forum has held over 60 consultations,
involving more than 2,000 CSOs. The Open Forum is therefore in a unique position to present legitimate
proposals on minimum standards. EU gove rnments have been at the forefront of providing financial support
to the Open Forum consultation process. To promote enabling environments at country level, the EU now
needs to recognise these principles and minimum standards.

Structured Dialogue
After Ac cra, the EC has launched a multi -stakeholder debate involving the EC, the European Parliament and
Member States representatives in a dialogue with CSOs and local authorities from the EU and developing
countries on how to work more effectively together and to provide more effective support to civil society and
local authorities. The EC and all stakeholders have invested a considerable amount of resources and time in
that process and the results and lessons learned from the Structured Dialogue should inform t he
international agenda on CSO enabling environment as well as the Donor Group on Civil Society and Aid
Effectiveness.