Presentation on PD findings for UN 5 Nov 06

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Information about Presentation on PD findings for UN 5 Nov 06

Published on March 5, 2008

Author: Maria


Findings of Monitoring the Paris Declaration on Aid Effectiveness:  Findings of Monitoring the Paris Declaration on Aid Effectiveness Kabul, November 5th, 2006 Background::  Background: On May 25, the 2006 Survey on Monitoring the Paris Declaration was officially launched. 20 development partners participated in the survey. 16 UN agencies reported through UNAMA. 18 indicators were included in the questionnaire (12 from the Paris Declaration and 6 from the Afghanistan Compact). By end of July, the Development partners submitted their data to the Government. Since it’s a baseline survey of PD, the data was collected for FY 1384 Response to the 6 indicators from the Afghanistan Compact was very weak. On August 23rd, the Government submitted the first draft report to OECD. Afghanistan was the first country to submit the report to the OECD on August 23, 2006. Aligning Aid Flows on National Priorities (Ind. 3)::  Aligning Aid Flows on National Priorities (Ind. 3): Definition: This indicator is a proxy for measuring alignment. It actually measures the gap between what was disbursed by donors for the government sector and what was actually recorded in the annual budget by government. Key Findings: Total ODA disbursed in FY1384: $2,244,140,000 Reported by Donors: Total ODA disbursed for the government sector: $1,205,186,576 Recorded by the Govt. : Total ODA disbursed for the government sector: $1,210,570,000 Difference: $5,383,424 Reasons for the diffrence: Different financial years Double Counting Lack of capacity for project implementation in Afghan government ministries and agencies Procurement delays Key Recommendations: The donor community needs to furnish reliable information in a timely fashion MoF to conduct monthly budget execution monitoring to address implementation bottlenecks The Donors’ Assistance Database needs to be improved to better track resources A unified reporting format needs to be developed and agreed upon Strengthening Capacity by Coordinated Support (Ind. 4):  Strengthening Capacity by Coordinated Support (Ind. 4) Definition: Capacity development is the process whereby people, organisations and society as a whole unleash, strengthen, create, adapt and maintain capacity over time. - Support for capacity development addresses three dimensions: human capacity, organisational capacity and broader institutional capacity. - Capacity development is country owned rather than donor driven. Technical cooperation (also referred to as technical assistance) is the provision of know-how in the form of personnel, training, research and associated costs. - Activities that augment the level of knowledge, skills, technical know-how or productive aptitudes of people in developing countries; and - Services such as consultancies, technical support or the provision of know-how that contribute to the execution of a capital project. Key Findings: Total ODA disbursed to Technical Assistance (TA): $551,819,256 Of which: Total ODA disbursed to coordinated TA: $57,969,474 (11%) Target by 2010: 50% Issues: Many government institutions in Afghanistan remain reliant on international advisers/consultants Transferring skills and knowledge to local staff has been limited. Technical assistance also continues to be poorly coordinated among donors and with the Government Strengthening Capacity by …continued:  Strengthening Capacity by …continued Key Recommendations: Government to establish a central institution to coordinate capacity building and technical assistance. A TA gap assessment in the Government needs to be carried out Donors to coordinate their capacity building support/technical assistance through this facility . Until a national capacity building program is established, this could be achieved by donors contributing more to the existing programs, e.g. the Expatriate Afghan Program (AEP) of the Afghanistan Reconstruction Trust Fund (ARTF) Donors to develop pooled capacity-building funds and to improve communication. Donors to take steps to increase the transfer of skills and knowledge to Afghan institutions by ensuring that consultants are suitably qualified, and minimising turnover. Use of Country PFM System (Ind. 5):  Use of Country PFM System (Ind. 5) Definition: Disbursement to government: This category includes the disbursement of ODA in the context of an agreement with the government sector (see definition above), including works, goods or services delegated or subcontracted by government to other entities (e.g. NGOs, private companies). Use of National Budget Execution Procedures: Donors use national budget execution procedures when the funds they provide are managed according to the national budgeting procedures as they were established in the general legislation and implemented by government. This means that programmes supported by donors are subject to normal country budgetary execution procedures namely procedures for authorisation, approval and payment. Use of national financial reporting procedures: The use of national financial reporting means that donors do not make additional requirements on governments for financial reporting. In particular they do NOT require: The production of additional financial reports. Periodicities for reporting that are different from government's normal reporting cycle. Formats for reporting that do not use government’s existing chart of accounts Key Findings: Recorded in the budget: Total ODA disbursed for the government sector: $1,210,570,000 Total ODA channeled through Core budget (using PFM systems: $540,000,000 (24% of the ODA for 1384) of which Direct Budget Support (e.g. un-earmarked): $334,100,000 (62% of ODA through core budget) Total ODA disbursed to government sector used country PFM systems: 45% of total ODA for government. Use of Country PFM… continued:  Use of Country PFM… continued Issues: Low implementation capacity of budgetary units, poor monitoring and reporting systems at line ministries. Lengthy procurement process. Security and other domestic conditions hampering project implementation, particularly in southern provinces. Long sub-contracting chains in the donors’ procurement procedures. Key Recommendations: Donors and government to ensure that their procurement procedures are efficient. Donors to allocate their resources based on the governments’ national priorities. Government to advocate for channeling more external assistance through core budget Aid is More Predictable (Ind. 7):  Aid is More Predictable (Ind. 7) Definition: This indicator measures the gap between aid scheduled, and aid effectively disbursed and recorded in countries accounting systems. ODA scheduled for disbursement: This includes ODA scheduled by donors for disbursement in FY 2005 and notified to government within FY 2004; it includes ODA scheduled for disbursement in aid agreements entered into 2005. Direct budget support: Direct budget support is defined as a method of financing a partner country’s budget through a transfer of resources from a donor to the partner government’s national treasury. The funds thus transferred are managed in accordance with the recipient’s budgetary procedures. Key Findings: Reported by donors: Total ODA scheduled to be disbursed for government sector: $1,637,640,000 Total actual ODA disbursed for government sector: $1,209,560,000 (74%) Disbursement Gap: $428,080,000 Total ODA scheduled as direct budget support: $472,000,000 Direct budget support as percentage of total ODA for govt. sector: 29% Recorded with the government: Total ODA scheduled to be disbursed for government sector: $1,210,570,000 Total ODA scheduled as direct budget support: $334,000,000 Direct budget support as percentage of total ODA for gov. sector: 28% Difference between the total ODA scheduled to be disbursed for government sector reported by donors and recorded with the government: $427,070,000 Aid is More Predictable…Continued:  Aid is More Predictable…Continued Issues: Please refer to indicator 3 Key Recommendations: Please refer to indicator 3 Use of Common Arrangements & Procedures (Ind. 8):  Use of Common Arrangements & Procedures (Ind. 8) Definition: This indicator measures ODA provided in support of initiatives adopting Programme-Based Approaches (PBA) as a percentage of total ODA rather than just ODA for the government sector. PBA are a way of engaging in development cooperation based on the principles of co-ordinated support for a locally owned programme of development, such as a national development strategy, a sector programme, a thematic programme or a programme of a specific organisation. PBA share all four of the following features: Leadership by the host country or organisation. A single comprehensive programme and budget framework. A formalised process for donor co-ordination and harmonisation of donor procedures for reporting, budgeting, financial management and procurement. Efforts to increase the use of local systems for programme design and implementation, financial management, monitoring and evaluation. Key Findings: Total ODA for the support of PBA: $1,010,000,000 (45% of total ODA) of which: Direct Budget Support: $557,000,000 (55% of PBA/ODA) Other Form of Assistance: $453,000,000 (45% of PBA/ODA) The government has developed several national programs e.g. BPHS, NSP, MISFA, NRAP, ASP & etc Program-based budgeting Use of Common Arrangements…continued :  Use of Common Arrangements…continued Issues: Lack of single arrangement for PBA (core and external financing) Inadequate coordination Too much overlap Less attention to issues of institutional capacity and program monitoring Key Recommendations: Reorientation and enforcement of the National Program Coordination Unit (NPSU). Develop coordination of the various capacity building programs. Effective utilization of the Working Group mechanism to support the line ministries develop comprehensive programs Joint Missions (Indicator 10):  Joint Missions (Indicator 10) Definition: This indicator focuses only on the proportion of missions undertaken by two or more donors jointly or by one donor on behalf of another. Donor missions to the field are defined as missions that meet all of the following criteria: The mission is undertaken by, or on behalf of, a donor, including by consultants commissioned by a donor. The mission involved international travel typically, but not exclusively, from donor headquarters. The mission made a request to meet with government officials including local government. This definition should exclude missions undertaken by donors to attend events (workshops, conferences, etc.) that do not involve request to meet with government officials. Coordinated Missions: Coordinated missions are: (i) missions undertaken by one or more donor jointly, or (ii) missions undertaken by one donor on behalf of another donor (delegated cooperation). Key Findings: Total donors missions to the field: 1,644 of which: UN missions: 1,378 (84% of total mission) UN joint mission to the field: 1,339 (or 97% of total UN missions)) UN missions as % of total missions: 84% Other donor total missions 264 Other donor total join missions 90 (0r 34% of total other donor missions) Joint Missions…continued:  Joint Missions…continued Issues: Lack of coherent policy/plan to improve coordination of donors’ missions Missions of UN agencies were only coordinated among UN agencies not with other donors Inefficient use of limited resources Key Recommendations: donors need to be aware of the costs of uncoordinated missions in terms of government capacity Donors need to limit their missions and coordinate them in order to avoid inefficient use of resources, and time of Afghan officials Focusing on UN Agencies: :  Focusing on UN Agencies: Key Findings: Not using country Public Financial Management System (budget executing, procurement, reporting…) Inadequate flow of information (there is a big gap between what is reported by UN agencies and what is recorded with the government.) Huge number of Parallel Implementation Units (36) – 64% of total PIUs. Less contribution to national budget- only 1.9 % assistance went to direct budget support Too many missions – 1378 mission in FY1384 Recap: :  Recap: Steps Forward::  Steps Forward: Send feedback to OECD Apply for the membership of DAC. Prioritization of benchmarks and taking it forward as an important agenda of government. Taking forward the agenda of Aid Effectiveness to Aid Effectiveness Working Group (AEWG) Continuous measurement of PD and AC benchmarks. Improving the Aid Tracking Mechanisms (DAD). Slide17:  Thank You!

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