<p>The rise of critical thinking about aid and aid effectiveness has shifted development practice towards promoting an active role for aid recipients in their development. The Paris Declaration on aid effectiveness and the five principles for effective aid sits at the core of this development agenda. The aim of this study is to investigate how the aid effectiveness agenda has influenced Niue’s development policy and practice. The Government of Niue aspires to be financially self-sufficient. It is an ambitious goal for a small nation that is heavily reliant on aid from the Government of New Zealand. Using primary and secondary sources the results suggested that the Government of Niue asserts a moderate level of effectiveness. To further improve and strengthen the delivery of services the Niue Government undertook a transformation process of the public sector. The major change resulting from this transformation was the amalgamation of over fifteen different departments into five ministries with an added layer of management. The transformation had not yielded the expected results at the time of the research but it has uncovered critical areas for the government to strengthen. These are capacity constraints within the public service, a requirement for a coordinated approach for communication internally and externally, harmonisation of development efforts, transparency and accountability, and the political backing to achieve it all. The New Zealand assistance to the Government of Niue is also analysed using the principles of the Paris Declaration. The results indicated a positive change, considerable improvements from the historical dominating tactics experienced in earlier days. The relationship between the two governments is now recognised as a partnership. The flexibility and the clear communication and dialogue has solidified the partnership which has given confidence and certainty for the Government of Niue to work towards its goal of a prosperous Niue.</p>

<p>The rise of critical thinking about aid and aid effectiveness has shifted development practice towards promoting an active role for aid recipients in their development. The Paris Declaration on aid effectiveness and the five principles for effective aid sits at the core of this development agenda. The aim of this study is to investigate how the aid effectiveness agenda has influenced Niue’s development policy and practice. The Government of Niue aspires to be financially self-sufficient. It is an ambitious goal for a small nation that is heavily reliant on aid from the Government of New Zealand. Using primary and secondary sources the results suggested that the Government of Niue asserts a moderate level of effectiveness. To further improve and strengthen the delivery of services the Niue Government undertook a transformation process of the public sector. The major change resulting from this transformation was the amalgamation of over fifteen different departments into five ministries with an added layer of management. The transformation had not yielded the expected results at the time of the research but it has uncovered critical areas for the government to strengthen. These are capacity constraints within the public service, a requirement for a coordinated approach for communication internally and externally, harmonisation of development efforts, transparency and accountability, and the political backing to achieve it all. The New Zealand assistance to the Government of Niue is also analysed using the principles of the Paris Declaration. The results indicated a positive change, considerable improvements from the historical dominating tactics experienced in earlier days. The relationship between the two governments is now recognised as a partnership. The flexibility and the clear communication and dialogue has solidified the partnership which has given confidence and certainty for the Government of Niue to work towards its goal of a prosperous Niue.</p>