Sectoral approaches are also known by some donors as Sector Wide Approaches (SWAPs), Programme Based Approaches (PBAs), or Sector Wide Groups (SWGs). Denmark and Sweden currently use the term Sector Programme Support. The World Bank views sectoral approaches as a component of Programmatic Aid and has identified some of its instruments as most suitable for use in the context of sectoral approaches, such as sector investment programmes, maintenance loans / credits and adaptable programme loans. The United Nations has adopted a ‘UN Program Approach’, which it terms as a ‘multi-sector’ approach and which shares common values and orientations with the sectoral approach. Whatever the term used for the sectoral approach, they generally fall within the larger framework of a country strategy document such as the World Bank’s Poverty Reduction Strategy Papers (PRSPs), the United Nation’s Development Assistance Frameworks (UNDAFs), or the Asian Development Bank’s Country Assistance Plans (CAPs).

Sectoral approaches share the following characteristics:

• provision of assistance by donors to sectors (eg health, education) in line with the government’s own sector strategy, expenditure framework and priorities, thus shifting ownership towards the government and enhancing coherence
• donor coordination; sectoral approaches commonly require multi-donor support. Donors aim to foster coordination through establishing common funding arrangements, and joint planning, implementation, reporting and accounting arrangements with the government (ideally based on the government’s own systems) in order to reduce the administrative burden on the government
• broad stakeholder participation in the process, including civil society and local government, thus extending ownership to a broad range of actors beyond the government – although in practice genuine participation by these other actors is often still low
• variable modes of assistance using various financial instruments (eg technical assistance; projects that support the government’s strategy, often managed by the government itself; or budget support, where money is injected into the government’s own budget and earmarked for the sector
• a results-based aid management approach, with a particular emphasis given to joint monitoring and evaluation and a move away from rigid donor procedures and controls focusing on inputs rather than delivery of results
• a process-oriented approach because while the expected outcomes are agreed at the outset it is recognised that the processes by which the outcomes are to be achieved cannot be pre-determined; plans need to be revised as time goes by in the light of changing or unforeseen circumstances.

Sectoral approaches are in an early stage of development in many cases. Where they are adopted, not all donors in the country will be involved.

It is unusual for sectoral approaches to be adopted in countries suffering from widespread and protracted conflict, but they have been adopted in post-conflict settings and in countries affected by localised and regional conflict. They have proved popular with some donors in fragile post-conflict or transition settings (such as Rwanda and Mozambique), on the grounds that that they help bolster weak government capacity, encourage sustainable institutions and reduce the burden on governments of disjointed donor activities. They have also been adopted in countries subject to localised internal conflicts (such as Ethiopia and Uganda), and in countries whose armed forces are involved in external or regional conflicts. In such contexts, the close donor/government partnerships developed through sectoral approaches can provide a vehicle for promoting and influencing governance reforms and policy dialogue around issues such as military expenditure.