New Zealand Vanuatu Joint Commitment for Development
2 The Joint Commitment for Development between the Governments of New Zealand and Vanuatu establishes a shared vision for achieving long-term development outcomes for the people of Vanuatu, including achievement of the Millennium Development Goals. Mutual Commitments New Zealand will: work to agree mutual commitments to support an increasing proportion of its aid spending through programme based approaches such as sector-wide approaches and direct on-budget financing at a sectoral and/or general budget level deliver efficient and tangible projects that support economic development objectives provide long-term and predictable assistance to the focal sectors identified in this Commitment as more fully described in Annex Two increasingly work through Vanuatu s finance and procurement systems, where such systems have been independently reviewed and found to be robust and transparent work at a sector level with other donors and where possible pool resources or align projects into a broader sector programme meet the sectoral commitments outlined in Annex Two. Vanuatu will: ensure that coherent, long term, well prioritised sector plans are developed, maintained and reflected in national planning and budgeting processes co-ordinate development partner assistance in sectors via regular sectoral working group discussions work actively towards strengthening its planning, budgeting and reporting systems, and improve public financial management, including procurement, expenditure controls and audits
3 provide clear guidance on areas that it wishes New Zealand to invest in and maximise the ability for New Zealand to work with other donors meet the sectoral commitments described in Annex Two. Priority Sectors The majority of New Zealand s development cooperation programme in Vanuatu will focus on the following sectors and outcomes, as more fully described in Annex Two: Private Sector Development A sustainable and growing tourism sector with increased employment and other benefits. Increased employment opportunities promoted and supported through private sector development, including in rural areas. Shipping and Other Infrastructure Improved infrastructure, including safe and reliable domestic shipping, to support sustainable economic development. Basic Education and Workforce Training Improved literacy and numeracy of students leaving the formal education system. Increased economic development through a better trained workforce. Strengthening Governance Increased public confidence in the Vanuatu Correctional Service and increased effectiveness of the justice system. Improved community services, particularly to youth and women, and greater community participation in decision-making at all levels.
5 ANNEX ONE: CONTEXT AND MONITORING RESULTS Context New Zealand and Vanuatu jointly decide that the focal areas for New Zealand s assistance, and how we work together, will be informed by: Vanuatu s national development plan (Priorities and Action Agenda 2006-2015) and budget priorities New Zealand s aid policy The policy is to support sustainable development in developing countries, in order to reduce poverty and to contribute to a more secure, equitable, and prosperous world. Within this, the core focus will be sustainable economic development. The policy also has a focus on supporting the achievement of the Millennium Development Goals (MDGs); close cooperation with other donors, particularly Australia; the pursuit of gender, environment and human rights as cross-cutting issues to ensure good outcomes; strengthened mutual accountability; and efficient and value for money aid practices and approaches the Cairns Compact on development coordination and the Paris Principles of Aid Effectiveness New Zealand and Vanuatu are committed to improving the effectiveness of development assistance and coordination efforts. Vanuatu is responsible for donor coordination and for ensuring a division of labour that makes most effective use of donors resources and expertise. a shared responsibility for the management of financial resources provided under the New Zealand Aid Programme. Profile of Assistance A total aid flow profile for Vanuatu will be updated annually. This will outline all resources under the Vanuatu bilateral allocation, and additional sectoral, multi-
6 country, NZ state sector partnerships and non-government organisations (NGOs) funding. The majority of New Zealand s assistance will be through the Vanuatu bilateral allocation in a number of defined sectors outlined in this Commitment in Annex 2. The objective is to improve focus, reduce dispersal and focus on larger, longer term investments. From time to time, New Zealand and Vanuatu may agree a partnership in a sector that will be in addition to the bilateral programme. This is likely to be in one of the sustainable economic development sectors of agriculture, tourism, fisheries, energy, transport or infrastructure which are a core focus for the New Zealand Aid Programme. Initiatives managed by NZ State sector or NZ non-government agencies, or multicountry initiatives, may be funded from time to time that involve Vanuatu. New Zealand will also assist with humanitarian and disaster relief contributions where requested. The understandings between New Zealand and Vanuatu in this Joint Commitment are made with best endeavours in the spirit of partnership and mutual accountability. Monitoring Results New Zealand and Vanuatu will hold annual joint reviews of performance, focusing on achievements, constraints, and the extent to which planned outputs have contributed to results in each priority area described above. There will also be regular Ministerial dialogues to review results and consider any emerging priorities, while being mindful of the need to maintain focus and avoid
7 excessive dispersal of the aid programme. Any amendment to focal areas will be mutually determined in writing. A Results Framework will be finalised in the initial stages of the Joint Commitment, which will assist in the annual joint review process.
8 ANNEX TWO: PRIORITY SECTORS AND COMMITMENTS Vanuatu and New Zealand jointly decide that the majority of New Zealand s development cooperation programme will focus on the following sectors. OUTCOME JOINT COMMITMENT 1) LIFTING ECONOMIC PERFORMANCE PRIVATE SECTOR DEVELOPMENT A sustainable and growing local private sector with increased employment and other benefits, including in rural areas. New Zealand will: - Work with Government of Vanuatu and private sector stakeholders to develop a large, multi-year programme to support tourism development in Vanuatu. - Develop and implement a programme of support to Small and Medium Enterprises (SMEs) in the productive or agri-business sector - provide business mentoring support to a range of businesses under the regional Pacific Business Mentoring Programme Vanuatu will: - coordinate the Vanuatu tourism support programme, including establishing a Programme Management Committee or sector coordination mechanism to oversee support to the sector and undertake monitoring and evaluation - undertake an independent review of the Ministry of Tourism s capacity and structure, and implement recommendations that improve service delivery. - ensure that an increased proportion of business licence fees is allocated to support private sector development nationwide. - develop and implement private sector policy with the aim of further improving Vanuatu s Ease of Doing Business ratings - consult the private sector on all major policy and regulatory issues and new legislation with the potential to affect businesses
9 RESULTS - Increased number of new businesses and jobs created, including in rural areas - Increased business survival rate and profitability of existing SMEs - In the medium term, improved quality of tourism information, accommodation standards, local tourism products, service delivery by tourism SMEs and destination marketing. - In the long term, increased participation in the sector by ni-vanuatu, increased public and private incomes from tourism, improved ability to manage growth in the sector and better distribution of benefits of tourism.
10 LIFTING ECONOMIC PERFORMANCE SHIPPING AND OTHER INFRASTRUCTURE OUTCOME JOINT COMMITMENT Improved infrastructure, including safe and reliable domestic shipping services, to support sustainable economic development. New Zealand will: - invest $17 million over five years into improvements to inter-island shipping infrastructure, governance and services - consider funding further priority infrastructure investments in coordination with other donors, with a particular focus on infrastructure critical to supporting sustainable economic development. RESULTS Vanuatu will: - implement recommended reforms to policy, legal, regulatory and institutional arrangements required for efficient and effective administration of the shipping services and other essential infrastructure - allocate sufficient recurrent budget for infrastructure, maintenance and oversight of shipping services. - New or rehabilitated wharves completed in Port Vila and seven other island locations by 2016. - More reliable and better-utilised shipping services for outer islands. - Maritime safety improved and port revenue increased through more efficient management and financial systems
11 2) IMPROVING EDUCATION OUTCOMES BASIC EDUCATION OUTCOME JOINT COMMITMENT Improved literacy and numeracy of students leaving the formal education system New Zealand will: - invest $8 million for basic education over 2011-12 (joint programme with Australia and UNICEF) and negotiate a contribution level beyond that. Areas supported include provision of infrastructure and textbooks; teacher training; curriculum development; information management system; and school leadership and management. RESULTS Vanuatu will: - maintain the Ministry of Education s budget to at least 2010 levels - strengthen linkages between Ministry of Education (MOE) and other central agencies such as Finance, Audit and Planning. - achieve a better balance of expenditure between teacher costs and other operational costs, aiming to reduce the proportional spend on teacher salaries and expenses - support improvements to major policy initiatives such as the school grants scheme and teacher review - increase funding to schools to allow NZ (and Australia and UNICEF) to gradually reduce their contribution to offsetting school fees - improve the efficiency and effectiveness of procurement within the MOE. - Improved quality of teachers and teaching (through increasing training and qualifications of in-service teachers). - Integrated curriculum and assessment system developed and implemented. - Improved literacy and numeracy rates over the medium term, as shown by an increased percentage of students meeting national standards. - Sufficient, quality, school facilities to accommodate the increasing number of students.
12 IMPROVING EDUCATION OUTCOMES WORKFORCE TRAINING OUTCOME JOINT COMMITMENT Increased economic development through a better trained workforce New Zealand will: - increase the number of regional and bilateral programme scholarships to New Zealand institutions, and the level of short-term training awards to NZ, in key sectors - increase support to technical and vocational education in Vanuatu in key sectors such as small business, teaching, tourism and agriculture - explore the possibility of supporting increased skills within the public service, particularly at senior levels, to improve stability and decisionmaking particularly in relation to sectors NZ is supporting. RESULTS Vanuatu will: - build links between private sector and education institutions to ensure skills training meets market needs - develop a human resource development strategy and revise the selection criteria for scholarships and study awards in accordance with identified needs - build links with Australia and New Zealand institutions to ensure local qualifications are competency-based and internationally recognised - improve the skills and effectiveness of Directors-General and other senior Public Servants and reduce staffing gaps in the public service - Merit-based academic, technical and vocational education and training system aligned with national priorities. - Improved access to, and availability of, quality skills-based training in key sectors. - Improved public service efficiency and effectiveness through better skills and leadership by Directors-General and other senior Public Servants.
13 LAW AND JUSTICE 3) STRENGTHENING GOVERNANCE OUTCOME JOINT COMMITMENT Increased public confidence in the Vanuatu Correctional Service and increased effectiveness of the justice system New Zealand will: - provide up to $9 million over 2011-13 to improve the effectiveness of the Vanuatu Department of Corrections, including $6 million for completion of a new prison near Port Vila - continue to provide a judge for the Vanuatu Supreme Court in the short term - work with stakeholders to improve the efficiency of the Vanuatu court system so that an increased number of cases is completed, promptly. - continue its support for domestic violence prevention and develop a new community policing initiative to supplement Australia s work in the sector. - invest $6 million over 3 years in the customary land tribunal and supporting land information system to reduce conflict over land ownership and user rights, and provide a stable base for sustainable economic development (jointly with AusAID) Vanuatu will: - provide a site with access and services for the new prison by June 2013. - ensure sufficient budget is allocated for minimum staffing establishment and operation and maintenance of new prison - work to improve the efficiency of the Vanuatu court system and develop local magistrates skills in preparation for promotion - ensure that the land tribunal and associated agencies are adequately staffed and allowed to operate independently and without political influence
14 RESULTS - Secure and humane containment of prisoners, effective rehabilitation of offenders and an effective probation system for low-risk and juvenile offenders. - Increased rate of resolved cases through the Vanuatu courts, as reported to parliament by the Ministry of Justice. - Improvements to land tribunal processes and information systems prevent disputes or enable them to be resolved quickly and with certainty.
15 STRENGTHENING GOVERNANCE CIVIL SOCIETY PARTICIPATION OUTCOMES JOINT COMMITMENT Improved community services, particularly to youth and women, and greater community participation in decision-making at all levels New Zealand will: - support reputable non-government organisations to provide community services and/or increase participation in decision-making - support community projects to meet immediate needs through the Small Projects Scheme and Head of Mission Fund. RESULTS Vanuatu will: - encourage and facilitate participation in decision-making by nongovernment organisations, chiefs, churches and community members - work with NGOs/civil society organisations to improve service delivery to rural and disadvantaged areas. - Increased skills of young people and women to participate in economic and social development. - Increased cooperation between Government of Vanuatu and civil society for the delivery of community services.
16 4) NEW ZEALAND PARTNERSHIPS OUTCOME JOINT COMMITMENT NZ Inc Support Partnerships that leverage NZ expertise and resources for the benefit of Vanuatu New Zealand will: - Provide an annual Profile of Assistance that outlines the total aid flows for Vanuatu, including aid funding for regional activities - Explore and facilitate expertise and resources from New Zealand Government agencies, Crown Research Institutes, NGOs, private sector expertise and other organisations to add value to in-country activities - Provide emergency disaster relief and reconstruction assistance as requested by Vanuatu RESULTS Vanuatu will: - Support NZ counterpart agencies and organisation and provide in-kind assistance where possible - Facilitate discussions between NZ counterpart agencies and organisations to ensure coherence with Vanuatu s priorities and strategies. - Key results to be shared and discussed at regular high level consultations. - Streamlined and coordinated system in place to promote partnership arrangements.