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Title page

Contents

Abstract 1

Introduction 5

A note on terminology and scope 6

What is agency effectiveness, and why does it matter? 7

Three pressures on agency effectiveness in the SDG era 8

Pressures on why development agencies act 9

Pressures on what development agencies do 10

Pressures on how development agencies work 10

Five dimensions of agency effectiveness 11

Agency effectiveness as allocation 12

Agency effectiveness as compliance with global principles 15

Agency effectiveness as cost-efficiency 16

Agency effectiveness as organisational design 19

Agency effectiveness as adaptive management 21

The future of development agency effectiveness: Three key considerations 23

Priorities 23

Structures 25

Capabilities 26

Conclusion 27

References 29

Boxes

BOX 1. Selectivity by design - The Millennium Challenge Corporation (MCC) 14

BOX 2. Italy's use of effectiveness principles to measure development performance 16

BOX 3. DFID's approach to value for money 18

BOX 4. Evidence on the relationship between structure and effectiveness 20

BOX 5. USAID's Local Systems Framework 23

초록보기

For official bilateral development agencies, the realities of providing effective development cooperation are increasingly complex, as competing demands and changing international and domestic contexts are raising fundamental questions around what it means to be an effective agency. This paper explores the concept of agency effectiveness to demonstrate why agencies – and their leadership – should consider how their structures and processes interact with the changing landscape as part of their efforts to remain relevant and resilient. To do so, we consider how the current challenges facing agencies – including the need to respond to climate change, global instability, and changing domestic political environments – affect why agencies act, what they do, and how they do it. We then explore dominant understandings of agency effectiveness, which provide a lens for thinking about what it may mean for agencies to be effective in the years ahead. Overall, we suggest that the challenges facing development agencies in the changing landscape raise key issues for agencies to consider, particularly around what they prioritise, how they are structured, and the capabilities or ways of working needed to respond to complex demands. While there is unlikely to be a single approach for agencies looking to adapt to changing contexts, considering the implications of new – and future – pressures for the work of development agencies will be a necessary first step towards supporting their resilience and relevance in the years ahead.

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