• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
New Directions in the Quality of Aid, revised 5.18.11
 

New Directions in the Quality of Aid, revised 5.18.11

on

  • 631 views

ICGFM international conference, May 2011

ICGFM international conference, May 2011

Statistics

Views

Total Views
631
Views on SlideShare
631
Embed Views
0

Actions

Likes
0
Downloads
2
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    New Directions in the Quality of Aid, revised 5.18.11 New Directions in the Quality of Aid, revised 5.18.11 Presentation Transcript

    • New directions in the quality of aid debate: Implications for support to Public Financial Management
      Stephen GroffDeputy DirectorDevelopment Co-operation Directorate
    • Outline
      The Aid Quality Agenda and Commitments
      Assessing Progress
      Paris Declaration Commitments on PFM
      New Actors and New Themes
      High Level Forum on Aid Effectiveness: Implications for the future Aid Quality Agenda
    • Change ….? Why Change?
      It’s about making aid work better where it is needed
      3
    • A Day in the Life of…
      Source; Don De Savigny & COHRED
    • Ministry of Health: Kenya
      Source: S. Kinzett (2004)
    • HLF-4
      The Aid Quality Journey…
      Busan
      29 Nov – 1Dec 2011
      HLF-3
      Istanbul principles on CSO effectiveness
      HLF-2
      HLF-1
      Dili Declaration on Fragile States
      Accra Action Agenda
      Bogota Declaration on SSC
      Paris Declaration on Aid Effectiveness
      Rome Declaration on Harmonisation
      2010
      2008
      2011
      2002
      2003
      2005
      Monterrey Consensus
    • The Paris Declaration “pyramid”
    • Paris Declaration: what makes it different?
      • Unprecedented consensus;
      • 56 action-oriented commitments for both Donors and Partners countries;
      • Built-in mechanism for monitoring progress at country and global levels (12 Indicators); and
      • Targets set for 2010 monitored in 3 separate surveys (2005-2011).
    • Outline
      The Aid Quality Agenda and Commitments
      Assessing Progress
      Paris Declaration Commitments on PFM
      New Actors and New Themes
      High Level Forum on Aid Effectiveness: Implications for the future Aid Quality Agenda
    • Progress on track 2005-2008
      36%
      59%
      88%
    • Targets requiring efforts but within reach (2005-2008))
      36%
      49%
      59%
      1483
      45%
      88%
    • Targets requiring very special efforts (2005-2008))
      22%
      36%
      49%
      59%
      43%
      42%
      1483
      45%
      88%
      42% (slippage)
      20%
      44%
      9%
      22% (No progress)
    • Outline
      The Aid Quality Agenda and Commitments
      Assessing Progress
      Paris Declaration Commitments on PFM: Key Messages
      New Actors and New Themes
      High Level Forum on Aid Effectiveness: Implications for the future Aid Quality Agenda
    • Total donor PFM support, 1995-2008
      Evaluation of Donor Support to PFM Reform in Developing Countries, ODI, 2010
    • Paris Declaration and PFM
      Donors committed to:
      • Provide reliable commitments of aid over a multi-year framework
      • Disburse aid in a timely and predictable way
      • Rely on transparent partner government budget and accounting mechanisms
      • Adopt harmonised performance assessment frameworks
      Partner Countries committed to:
      • Publish timely, transparent and reliable reporting on budget execution
      • Ensure that national systems are effective, accountable, and transparent
      • Take leadership of the public financial management reform process
      • Mobilise domestic resources, strengthen fiscal sustainability
      • Create an enabling environment for public and private investments
    • Evidence on PFM: Mixed
      24%
      36%
      49%
      59%
      45%
      43%
      1483
      45%
      88%
      47%
      21%
      44%
      9%
      26%
    • ACCRA AGENDA FOR ACTION: Commitments on PFM (2008)
      DONORS will:
      • Use country systems [including PFM systems] as the first option in the public sector.
      • Be transparent when they don’t use them.
      • Support country-led reform programmes.
      • Develop corporate plans for using country systems.
      • Channel 50% (or more) of government-to-government aid through country fiduciary systems (i.e. PFM + Procurement)
      PARTNERS will:
      • lead in defining reform programmes.
      • Strengthen their budget planning processes
      • Facilitate parliamentary oversight including through more transparency in PFM
      PARTNERS & DONORS will jointly assess quality of country systems.
    • What are the different components of thePFM system that aid can “use”?
      Source: Mokoro (2010)
    • Challenges in Implementation
      Many factors lead to donors bypassing country PFM systems
      Varying perceptions of risk
      Emphasis on fiduciary risk
      Developmental risk of not using country systems
      Incentives and capacities in donor organisations
      Political constraints: visibility, traceability...
      Quality of partner country systems
      Shifting transaction costs from partner government to donor
    • Some common myths
      Using country systems means providing budget support
      Not necessarily: all aid modalities can make use of country systems
      An “all or nothing” approach?
      Different components of country systems can be used
      Pooled funds are a move towards use of national systems
      They might be, but this is more about harmonisation
      Technical co-operation cannot make use of country systems
      Need a flexible approach
    • Working Party on Aid Effectiveness support to PFM
      Assessing progress (Quality and Use of PFM Systems)
      Global Partnership on Country Systems
      Dedicated Task Forces on PFM and Procurement
      Identifying and disseminating good practice
      Developing and supporting common tools (e.g. procurement assessment)
      Country Level Work
      Lending political support, monitoring, sharing experiences
    • Outline
      The Aid Quality Agenda and Commitments
      Assessing Progress
      Paris Declaration Commitments on PFM
      New Actors and New Themes
      High Level Forum on Aid Effectiveness: Implications for the future Aid Quality Agenda
    • Broadening the Partnership
      Shaping the global development architecture – i.e. G20 Development Consensus
      G20 discourse (June 2010) on the need for greater transparency, accountability and institutional governance including use of country systems
      Development actors beyond the DAC:
      Non-traditional providers of development assistance (i.e. Middle Income Countries, Emerging Economies, Arab donors etc)
      Civil society organisations
      For-profit private sector and foundations
      Bridging the divide: DAC Statement on “New Partnerships”, Bogota Statement on South South Cooperation
    • Objectives of Broadening the Partnership
      Finding convergence and common ground
      Share lessons on economic growth, poverty reduction and development co-operation
      Mutual interest in achieving results while respecting diverse ways to reach them
      Interest in improving all forms of co-operation through inclusive dialogue, mutual learning and knowledge-sharing
      Recall the enduring relevance of the Paris principles for developing countries (fragile states, MICs, LDCs)
    • New Themes
      Climate Change Financing
      Avoid pitfalls of complex funding channels
      Public Private Partnerships
      Strengthening regulatory and financial environments
      Risk Management
      Innovative Financing Mechanisms
      Additionality
      Predictability
      Aid as Catalyst towards more Effective States
    • Outline
      The Aid Quality Agenda and Commitments
      Assessing Progress
      Paris Declaration Commitments on PFM
      New Actors and New Themes
      High Level Forum on Aid Effectiveness: Implications for the future Aid Quality Agenda
    • Where are we now?
      Dili Declaration
      on fragile states (2010)
      Korea HLF (29 Nov. – 1 Dec. 2011)
      Bogota Statement on SSC (2010)
      Accra Agenda for Action (2008)
      Paris Declaration on Aid Effectiveness (2005)
      Rome HLF on Harmonisation (2003)
      Monterrey Consensus (2002)
      27
    • 4th High Level Forum on Aid Effectiveness: A Unique Opportunity
      Forging a new consensus on aid and development?
      Chance to reinvigorate the global commitment towards the MDGs;
      Refresh and reaffirm Paris / Accra principles;
      Recognise the role of aid as contributor and catalyst for development results and effectiveness;
      Improve the quality of partnerships through embracing partner country leadership, diversity and mutual respect;
      Seek convergence based on complementary strengths and differentiated responsibilities.
    • Who? Where? When?
      Apolitical eventthat attracts ministerial attendance, with decisive outcomes
      Busan, Korea. Host: Government of Korea
      29 November to 1 December 2011.
    • HLF-4- Main Objectives
      Stocktaking from the Paris / Accra process
      Agreeing on features of high quality aid and its monitoring framework towards 2015
      Situating aid in its broader development context:
      More actors, development finance effectiveness
      Diversified approach: MICs, LICs, FS, regions
      Catalyst dimension: trade, security, climate…
      Results and right-based approaches
    • Emerging Areas for Political Outcomes
      • Results and transparency for better accountability
      • Ownership and Leadership
      • Effective States and Alignment (Country Systems)
      • Diversity at country level – fragile states, middle income countries, LDCs
      • Climate Change Financing
      • Recognise all forms of partnerships (SSC, PPPs…)
      • Role of CSOs, Parliaments and local government
    • Key milestones in 2011
      Monitoring Survey:
      country level data collection
      Evidence for “Progress Since Paris”
      Deadlines: 31 March
      Themes for Busan
      Deadline: January
      Preliminary Menu of Options
      Task Force on Procurement (May)
      DAC SLM (6-7 April)
      WB/IMF Spring Meeting (16-17 April)
      WP-EFF EXCOM (9-10 March)
      WP-EFF co-chairs First Narrative Outline for Outcome Document (comments by 3 April)
      Task Force on PFM (6-7 June)
      Evaluation: Synthesis report (April 2011)
      Monitoring Survey: preliminary results 1st draft Progress since Paris (July 2011)
      Global Partnership on Country Systems (9-10 June)
      WP-EFF + ExCOM (7-9 July)
      1st draft outcome document
      WP-EFF + ExCOM (5-7 Oct)
      2nd draft outcome document
      TBC: Meeting on Effective States (Paris, October)
      Report finalisation (September 2011)
      4th High Level Forum on Aid Effectiveness 29 November – 1st December, Busan, Korea
    • www.oecd.org/dac/effectiveness/pfmWWW.BUSANHLF4.ORG