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New directions in the quality of aid debate: Implications for support to Public Financial Management<br />Stephen GroffDep...
Outline<br />The Aid Quality Agenda and Commitments<br />Assessing Progress<br />Paris Declaration Commitments on PFM<br /...
Change ….? Why Change? <br />It’s about making aid work better where it is needed<br />3<br />
A Day in the Life of…<br />Source;  Don De Savigny & COHRED<br />
Ministry of Health: Kenya<br />Source: S. Kinzett (2004)<br />
HLF-4<br />The Aid Quality Journey…<br />Busan <br />29 Nov – 1Dec 2011<br />HLF-3<br />Istanbul  principles  on CSO effec...
The Paris Declaration “pyramid” <br />
Paris Declaration: what makes it different?<br /><ul><li>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).  </li></li></ul><li>Outline<br />The Aid Quality Agenda ...
Progress on track 2005-2008<br />36%<br />59%<br />88%<br />
Targets requiring efforts but within reach (2005-2008))<br />36%<br />49%<br />59%<br />1483<br />45%<br />88%<br />
Targets requiring very special efforts (2005-2008))<br />22%<br />36%<br />49%<br />59%<br />43%<br />42%<br />1483<br />4...
Outline<br />The Aid Quality Agenda and Commitments<br />Assessing Progress<br />Paris Declaration Commitments on PFM: Key...
	Total donor PFM support, 1995-2008<br />Evaluation of Donor  Support to PFM Reform in Developing Countries, ODI, 2010<br />
Paris Declaration and PFM<br />Donors committed to:<br /><ul><li>Provide reliable commitments of aid over a multi-year fra...
Disburse aid in a timely and predictable way
Rely on transparent partner government budget and accounting mechanisms
Adopt harmonised performance assessment frameworks</li></ul>Partner Countries committed to:<br /><ul><li>Publish timely, t...
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</li></li></ul><li>Evidence on PFM: Mixed<br />24%<br />3...
ACCRA AGENDA FOR ACTION: Commitments on PFM (2008)<br />DONORS will:<br /><ul><li>Use country systems [including PFM syste...
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)</li></ul>...
Strengthen their budget planning processes
Facilitate parliamentary oversight including through more transparency in PFM</li></ul>PARTNERS & DONORS will jointly asse...
What are the different components of thePFM system that aid can “use”?<br />Source: Mokoro (2010)<br />
Challenges in Implementation<br />Many factors lead to donors bypassing country PFM systems<br />Varying perceptions of ri...
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New Directions in the Quality of Aid, revised 5.18.11

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ICGFM international conference, May 2011

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

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