Batten aid information management in practise malawi experiences

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Aaron Batten, Economist, Debt and Aid Division, Ministry of Finance, Malawi

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Batten aid information management in practise malawi experiences

  1. 1. Aid Information Management in Practise<br />– Malawi Experiences<br />Aaron Batten<br />Economist, Debt and Aid Division <br />Ministry of Finance, Malawi <br />ICGFM Winter Conference<br />6 December 2010<br />
  2. 2. Background to Malawi’s Aid Environment <br />Challenges of Aid for Effective PFM<br />Malawi’s Approach to Aid Information Management <br />How is Malawi’s Aid Information Management Improving PFM<br />Role of International Aid Transparency Initiatives vs. Country Level Aid Information Management Systems <br />Next steps for Malawi<br />Overview <br />
  3. 3. Malawi is heavily dependant on foreign aid <br />12% of GDP, 40% of Budget, 80% Development Budget <br />Aid delivery is highly fragmented<br />28 Bilateral & Multilateral Donors + Emerging donors<br />In 2009/10FY 452 active projects:<br />25 use Government’s Consolidated Account at RBM<br />90 implemented with Line Ministries and use RBM project accounts<br />140 implemented with Line Ministries using commercial bank accounts<br />150+ implemented with various NGOs<br />Background to Malawi AIMS <br />
  4. 4. How do you translate information from disparate donors and activities into a common budgeting framework?<br />How best can donor information be used to inform domestic sector planning efforts?<br />Which donor activities should be included in the Budget process, and what information do you need to be able to make these distinctions? <br />How can Government best manage aid flows that are not included in the budget?<br />Challenges for Effective PFM<br />
  5. 5. In 2008, Malawi moved from an ad-hoc aid information system to a formal system of information exchange between MoF and all its donor partners<br />Information stored and analysed through web based Aid Management Platform (AMP)<br />System now collects information on all aid financed activities in Malawi and is updated on a monthly basis<br />Malawi’s Aid Information Management System<br />
  6. 6. What information to collect? <br />-Unique AMP ID<br />-Status <br />-Use of Budget Systems<br />-Sectors <br />-Geographic Location<br />-Description <br />-Executing Agencies <br />-Implementing Agencies <br />-Key Activity Dates <br />-Type of Assistance <br />-Aid Modalities <br />
  7. 7. Management of both on and off budget funds<br />Government now tracks disbursements both to On-Budget funds and for projects which circumvent Government systems<br />For some large donors (USAID, Japan) this can comprise 100% of their assistance <br />Full list of activities greatly improves sector planning efforts<br />Information allows production of Extra-Budgetary Addendum to the official Budget documents<br />Allows off-budget funds to still be approved by Parliament <br />How has Malawi AIMS Reform improved PFM? <br />
  8. 8. Translation of donor information into a common budget format<br />Centralised AIMS means all aid projects (on and off budget) can be allocated to domestic sectors, MGDS Themes, Budget Votes<br />Rather than having donors allocate projects to sectors (or arbitrarily by Government), system uses Implementing Partners as a consistent allocation rule <br />How has Malawi AIMS Reform improved PFM? <br />
  9. 9. IATI aims to develop a set of international standards for the way donors report information about aid spending. <br />Donors commit to an aid information reporting cycle<br />Recipients access all donor information through a single web-portal<br />Reduce the burden of information collection from recipient countries<br />Improve projection and commitment information<br />Provide aid information to a wide audience outside of planning and finance ministries <br />International Aid Transparency Initiatives & Country Level AIMS<br />
  10. 10. By removing the responsibility of aid information collection from aid recipients donors can: <br />‘Information Dependency’ can reduce demand for effective AIMS at country level<br />Provide less frequent information exchange and reduce institutional connections between donor and recipient<br />Introduce a common information format that may not be applicable to the dynamic information needs of recipient countries <br />International Aid Transparency Initiatives & Country Level AIMS<br />
  11. 11. Basic Principle: Domestic ownership and demand for quality aid information is the key for using AIMS to improve PFM<br />International aid transparency initiatives are useful but should focus on strengthening country level exchange <br />Without a link to the budgeting process, AIMS will work in parallel to the national budget planning, potentially undermining the accountability cycle.<br />Strengthening International Initiatives<br />
  12. 12. Lack of multiyear forecasts from donors limits ability to produce MTEF (40% funding unknown)<br />Exclusion of NGO’s funded from international sources limits sector planning information <br />Aid disbursements should be linked to project monitoring and output based budgeting efforts <br />Create direct link for AMP information to enter into Government’s Integrated Financial Management Information System (IFMIS)<br />This work is being undertaken by Budget Division... <br />Next Steps for Malawi AIMS<br />

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