Analysis of aid and aid effectiveness in the Central African Republic (CAR) in 2008, one of the world's poorest and least developed countries. Plus a sober outlook for 2009, when humanitarian aid is likely to drop off significantly and the impact of the global economic crisis will be fully felt in CAR. Based on data collected with CAR's aid management system DAD, a key tool for improving aid effectiveness and transparency in fragile states.

1. CENTRAL AFRICAN REPUBLIC
Aid in 2008 and perspectives
for 2009
Ministry of Planning, Economics and International Cooperation
Central African Republic
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2. CENTRAL AFRICAN REPUBLIC
A. Progress in implementing the aid management system
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3. CENTRAL AFRICAN REPUBLIC
Aid management improves coordination
Aid management system in brief Aid management systems worldwide
• Public online database for
humanitarian and development aid
• Donors, implementers, projects,
finances, sectors, places
• Key tool for Paris Declaration
follow-up
• Donors mainly responsible for data
entry
• In place in more than 40 countries,
common in Asia, rare in Africa
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4. CENTRAL AFRICAN REPUBLIC
Strong support from partners for DAD
More than 320 projects documented in detail in online database
324
276
243
202
176
96
12
Sep ‘08 Oct ‘08 Nov ‘08 Dec ‘08 Jan ‘08 Feb ‘09 Mar ‘09
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5. CENTRAL AFRICAN REPUBLIC
B. Analysis of external assistance in 2008
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6. CENTRAL AFRICAN REPUBLIC
Putting aid to CAR in perspective
Humanitarian aid and multilateral reengagement served as catalysts
$295m
Development
Humanitarian
$251m $242m
Clearing of debt arrears
$126m
$117m
$81m
$63m
2002 2003 2004 2005 2006 2007 2008
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7. CENTRAL AFRICAN REPUBLIC
Total external assistance in 2008
Encouraging numbers $295m made available (gross)
• $320m committed in 2008 for new $90m, Humanitarian $150m, Projects
(31%) (51%)
projects or activities*
• $295m made available by donors*
• Increase of more than 20%
compared to 2007
• $233m spent by implementing
agencies (government, UNO,
NGOs, etc.)
$6m, Tech. cooperation $54m, Budget support /
(2%) debt relief (18%)
* Including for multi-year projects or activities
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8. CENTRAL AFRICAN REPUBLIC
C. Development aid in 2008
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9. CENTRAL AFRICAN REPUBLIC
Development aid in 2008
Multilateral support remains vital Resources made available (Top 10)*
• $226m committed in 2008 for new EC $62.7m
development projects or activities* World Bank $34.3m
• $204m made available / disbursed United Nations $23.3m
by donors, inline with Round Table IMF $23.2m
commitments* France $17.3m
• Multilateral institutions account for Global Fund $16.0m
90% of disbursements AfDB $9.6m
GAVI $3.5m
• $167m spent by implementing
China $2.3m
agencies (government, UNO,
NGOs, etc.) Germany $2.1m
* Including for multi-year projects or activities
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10. CENTRAL AFRICAN REPUBLIC
Sector concentration improves slowly
Top 4 sectors account for 78% of development expenditure in 2008
Budget support / debt relief $46m (28%)
Health 25m (15%)
Security, peace and justice $21m (13%)
Transport and infrastructure $19m (12%)
Governance $18m (11%)
HIV/AIDS Top four sectors in 2007: 81%
$12m (7%)
Budget support / debt relief
Forestry $7m (4%) Health
Governance
Security, peace and justice
Education $5m (3%) Transport and infrastructure
HIV/AIDS
Water and sanitation $4m (2%) Forestry
Education
Business environment $3m (2%) Non-allocated
Rural development
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11. CENTRAL AFRICAN REPUBLIC
Field impact remains very limited
Only 20% of dev. aid spent directly in regions (home to 80% of population)
< $1m
> $1m
> $3m
> $6m
> $9m
> $12m
Outside Bangui 2007: 15%
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12. CENTRAL AFRICAN REPUBLIC
D. Humanitarian aid in 2008
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13. CENTRAL AFRICAN REPUBLIC
Humanitarian aid in 2008
New high, but lower momentum Resources made available (Top 10)*
• $95m committed in 2008 to United States $23.8m
humanitarian projects / activities* United Nations $11.9m
• $90m made available / disbursed by EC $9.2m
donors* Japan $5.3m
• 3.5 times higher than 2006 United Kingdom $4.6m
Sweden $4.6m
• Humanitarian aid brings new donors
Ireland $3.8m
and additional resources
France $3.4m
• $66m spent by implementing
Netherlands $2.7m
agencies (72% UNO, 28% NGOs)
Canada $2.5m
* Including for multi-year projects or activities
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14. CENTRAL AFRICAN REPUBLIC
Humanitarian aid lacks balance
Heavy concentration on food aid (distributed in key agricultural regions)
Food security and agriculture $34m (52%)
Health 8m (12%)
Coordination and logistics $7m (11%)
Multi-sect. assistance refug./IDPs $5m (8%)
Education $5m (8%)
Top four sectors in 2007: 75%
Protection and Human rights $3m (5%) Food security and agriculture
Multi-sect. assistance refug./IDPs
Health
Water and sanitation $3m (5%)
Coordination and logistics
Education
Economic recovery / infrastructure $1m (2%) Shelter and non-food items
Protection and human rights
Water and sanitation
Shelter and non-food items $0.4m
Staff security and safety
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15. CENTRAL AFRICAN REPUBLIC
Strong field impact key to stability
80% of humanitarian aid spent directly in fragile northern regions
< $1m
> $1m
> $3m
> $6m
> $9m
> $12m
Outside Bangui 2007: 80%
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16. CENTRAL AFRICAN REPUBLIC
E. Some perspectives for 2009
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17. CENTRAL AFRICAN REPUBLIC
Falling into a recovery gap?
Development aid stabilizes while humanitarian aid is likely to decline
$295m
Development
$251m $242m
Humanitarian
Clearing of debt arrears
$126m
$117m
$81m
$63m
2002 2003 2004 2005 2006 2007 2008 2009*
* Based on data available as of Mai 2009
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18. CENTRAL AFRICAN REPUBLIC
Strong impact of global economic crisis…
Steep declines in wood (-60%) and diamond production (-80%)
Cubic metres Carats
30,000 60,000
Wood (cut) Wood (sawn) Diamonds
25,000 50,000
20,000 40,000
15,000 30,000
10,000 20,000
5,000 10,000
01/07 07/07 01/08 07/08 12/08
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19. CENTRAL AFRICAN REPUBLIC
… but lack of response in the field
Commitments to projects in heavily affected southern regions very limited
< $5m
> $5m
> $15m
> $30m
> $60m
> $120m
Diamonds
Uranium
Bangui
Gold
Wood
* Projects signed in 2007/08
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20. CENTRAL AFRICAN REPUBLIC
Improving the capacity to implement…
Aiming to facilitate disbursements Overview of commitments*
• $1074m committed for development
projects active in 2008, 2009 and beyond
$1074m
• $424m (41%) made available by the end committed
of 2008
• $650m to be made available between
2009 et 2012 $424m
made available / disbursed
• Concerted effort required to improve
implementation capacity to facilitate
disbursements
$349m
spent Commitment
Disbursement
Expenditure
* Development support only, without humanitarian aid * Commitments to development projects active in 2008, 2009 or beyond
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21. CENTRAL AFRICAN REPUBLIC
… with the support of DAD
DAD directly contributes to improved aid effectiveness and coordination
1 Budget
Raising the percentage of
development aid reflected in
the national budget from
less than 50% to 85%
Coordination Public Invest. Plan 2
Providing key data to DAD Providing projections on
sector and regional Aid Management System public investments financed
with foreign aid (~95%)
4 coordination committees
MTEF
Contributing data and
projections on expenditure
of development projects
3
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22. CENTRAL AFRICAN REPUBLIC
Improving the quality of public finances
Only 25% of dev. aid disbursements reflected in public expenditure tables
$204m
made available
$43m accounted for in 2008 public expenditure tables
0 $50m $100m $150m $200m
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23. CENTRAL AFRICAN REPUBLIC
Strengthening the PRSP process
Key tools and their links Aid management as a key priority
• Foreign aid finances 98% of public
PRSP investment
• Foreign aid finances about 50% of
Budget SP current expenditure in the budget
• DAD covers 85% to 100% of aid
GESCO DAD
• DAD will help to improve:
– Sector policies
MTEF PAP – Priority action plans
– Public investment plans
PIP – Multi-year expenditure frameworks
– National budget
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24. CENTRAL AFRICAN REPUBLIC
Key tools for PRSP monitoring
DAD: tracking aid disbursements DevInfo: tracking needs indicators
• Provides financial data on projects • Organizes statistical time series on
implemented within PRSP evolution of needs indicators
framework • Regular, comprehensive and
• Allows for comprehensive M&E in representative surveys are priority
correlation with DevInfo no 1 for 2008
Education (average investment by region)* Primary enrolment (measure of invest. impact)*
$12m 100%
$9m 80%
$6m 60%
$3m 40%
$1m 20%
Situation 2008 1990 2000 2010 Situation 2010 1990 2000 2010
* Example, for illustration only
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25. CENTRAL AFRICAN REPUBLIC
For more information
• http://dad.minplan-rca.org
• Désiré Yassigao | desire.yassigao@minplan-rca.org
Project coordinator | Ministry of Planning
• Kersten Jauer | kersten.jauer@undp.org
Senior Information Manager | UNDP
Supported by the ARCAD project – Building capacity for the implementation of CAR’s poverty reduction strategy
Aid coordination | Public finances | Anti-corruption measures | Administrative reform | Business environment
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