Changing the Balance of Power Aid Management Tools

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Changing the Balance of Power Aid Management Tools. Making Aid work: The Challenges for Aid Coordination and Management Aidan Cox, UNDP Regional Centre Bangkok. Goal. - PowerPoint PPT Presentation

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  • Changing the Balance of Power

    Aid Management ToolsMaking Aid work: The Challenges for Aid Coordination and Management

    Aidan Cox, UNDP Regional Centre Bangkok

  • Slide *GoalPartner countries exercise effective leadership over their development policies, and strategies and coordinate development actions

    Paris Declaration on Aid Effectiveness

  • Slide *Time to Go Home?Lack of ownershipDonor driven aidLack of clear prioritisation of aidTop downUnclear accountabilityPoor coordinationLack of predictability cant plan effectivelyDirect funding by donors parallel to GovtNational know-how not tappedAid spread thinly across sectors/locationsHigh transactions costsLittle alignment with national systems

    Nepal Presentation

  • Slide *Making Aid Work: Solutions?The size of a countrys fiscal space is the principal measure of ownership anything else is imbued with well-meaning hypocrisy Rathin Roy, Manila

  • Slide *But:Past performance suggests major donors will put only small share through Direct Budget Support

    Even when donors do provide budget support, it may come with a raft of conditionalities either explicit, or bundled in with technical assistance

  • Slide *Can Aid Management Tools Help?Yes!

  • Slide *How?Philippines: Government must know what it wants from Donors, know its own priorities otherwise aid will reflect the priorities of the donors (Jeanne Illo)

    See Gabriel Acasina Report on Aid Management Systems

  • Slide *Its our carpet, not yoursBe clear on the design then it matters less what colour, quantity and quality of silk donors are offering You can weave them into your designIf some donor offerings simply dont fit you can say soYou can approach some donors to provide specific partsYour design provides your criteria for deciding what assistance to ask for and on what terms you are prepared to accept it

    If you dont have a clear design, the pattern will be driven by what is supplied and it will end up looking all stripy and blotchy.

    If so, then whole process has to go back a step donors need to back off and support the design process instead.

    Choosing the right carpet design that is appropriate to the countrys needs is key - and that you then have the skill, time, and capacity to implement it

    Aid management then becomes not just about the supply of threads, where they fit into the design, but also about the ability to build the loom, quality of design, knots, etc.

    Karin Christiansen,Research Fellow, Overseas Development Institute, London

  • Slide *Turning the Pyramid upside downOwnership is the building blockcountries in the sub-region have developed national visions, national development strategies

  • Slide *Turning the Pyramid upside downOwnership is the building blockcountries in the sub-region have developed national visions, national development strategies

  • Slide *Too many suppliers of silk?Even if have strong national vision & strategy, results will be poor if too much time spent dealing with donors

    India: High transaction costs recognised, and the under $25s asked to work through UN and NGOsCambodia: burden of 400 donor missions

  • Slide *Reducing Costs of Doing BusinessRequest Donor focus in 3 sectors onlyFocus improves qualityFocus means scarce officials deal with fewer missions, meetingsExample of Germany asked to shift sectors(Avoid marriage of convenience)

  • Slide *Its our carpet, not yoursHe who has the gold, makes the rulesDoc Long, Chairperson of Appropriations Committee

    Using Aid Management Tools to ensure that all resources whether through Treasury or through UN/NGO/Private sector work to support national strategy

    UN required to prepare Business Plans

  • Slide *Changing the balance of power?Expertise$KnowledgeExpertise$Knowledge

    AccountabilityPartnership is not a meaningful term if one partner hasall the resources, much of the expertise, most of the information and takes the decisions

  • Slide *Knowledge can help shift the balance Director of Afghan Assistance Coordination Authority recognised that a world class aid tracking system and team could:

    Help mobilise (and sustain) aid flowsproof of transparency and accountabilityhold donors accountable for delivering on their pledgesensure donors are funding the sectors which are agreed

  • Slide *Going beyond aid coordinationPromote integration of external resources within a National Development Framework and Budgetenhance credibility of national institutions and domestic decision-making processes all assistance (off as well as on budget) goes through budget decision making processgreater influence on allocative decisions previously taken independently by donors/UN revitalising cabinetensure external and domestic resources considered together more rational overall allocation, greater chance of investments being sustained/maintainedDAD enables outputs to be monitored, blockages to be identifiedCredible national institutions & processes prerequisite for alignment

  • Slide *UNDPs package of support

    Merit-based recruitment and training of national team Aid Coordination Unit Budget & External Relations Department

    Secondment of international adviser to Government

    Partnership with private sectorContracted in aid tracking expertise Synergy International Systems, Donor Assistance Database (DAD)

    Establishing Government website

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  • Slide *From Aid Tracking to Budget ManagementIn Afghanistan, adapted aid tracking system into tool to prepare the Development Budget and tried to estimate future recurrent cost implications of investments

    Public Investment Programme for each sector, backed by data on ongoing and proposed investments

    Common financial summary and project document format for every project (whether designed by Government, donor, UN)Foundation for streamlined reporting of progress against outputs

    Promotes Government participation: responsible Ministry for every project. Sign off by Line Ministry and donor/UN; submission to MoFBetter decision-making & resource allocation

  • Slide *Basic Aid TrackingSimple analysis of commitments against budget requirements is misleading

    Overstates success in year one, and understates available resources for year 2

  • Slide *Better decisions based on better informationGuide to real resource availability against annual budget requirements

    Shows both domestic and external resources

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  • Slide *National Budget: Livelihood ProgrammeShows actual projected expenditure by province

    Allows Government to promote geographical equity

  • Slide *Government-led Coordination MechanismNational Development ForumChaired By Government, prepared by Government secretariatGovernent-Donor Monthly ForumMacro and cross-sectoral issues chaired by Government, prepared by GovernentSectoral CGs every two monthsChaired by Line MinistryMaking Budget process workPromoting Alignment

  • Slide *Partnership Forum MechanismGovernment LeadershipAvoiding Macro-Micro Paradox (ADB, Bruce Purdue

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  • Slide *Afghan Aid Coordination Unit(Became Development Budget & External Relations Unit)Transition from International TA to Afghan ManagersRecruited and trained 25 nationalsManagersDonor Desk OfficersDatabase teamWebsite teamTranslatorsAdministration

  • Slide *Aid Coordination Unit:Officer Responsibilities Donor and Sector

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  • Slide *End of Main Presentation

    Additional slides background information

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  • Slide *Overview of Donor Pledges

  • Slide *Overview by Sector

  • Slide *The default chart appears, in which the amount by Donors is presented

  • Slide *To change the chart format to 3D, select the option from the drop down list

  • Slide *To preview and print the current chart, click on Print Preview.

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  • Slide * Government Website

    Information sharing

    Transparency & Accountability

    Credibility

    *