ministry of finance and economic planning joint approaches to cd – lessons learnt and way forward...

Ministry of Finance and Economic Planning

Joint Approaches to CD – Lessons Learnt and Way Forward in GhanaMr. Ernest Prempeh- Ministry of Finance and Econ. Planning, GhanaMr. Kristian Lempa - GTZ Revenue Mobilization Support, Ghana

Learning Network on Capacity Development

LenCD FORUMAddressing the Paris Declaration Collective Responsibility for Capacity Development:What Works, and What Doesn’t?

Working Group 4 (Oct. 3rd): Pursuing Joint Approaches to CD at the National Level

StructureStructure

1. The New TA Approach

3. Best Practice: PPME

4. Lessons Learnt and Way Forward

2. Ghana 2006 Survey: Results

StructureStructure

1. The New TA Approach

4. Lessons Learnt and Way Forward

2. Ghana 2006 Survey: Results

3. Best Practice: PPME

1. The New TA Approach1. The New TA Approach

Definition Problems:

A. Capacity Development

B. Harmonized TC

Definition Problems:

A. Capacity Development

B. Harmonized TC

1.A. Definition: CD1.A. Definition: CD

Differentiation:Differentiation:

Capacity Development: a process whereby people, organizations & society as a whole unleash, strengthen, create, adapt & maintain already existing capacity over time

Capacity buildingCapacity building: a process starting with a plain surface and involving the step-by-step erection of a new structure, based on preconceived designs

1.A. Definition: CD1.A. Definition: CD

More than Human Resources and Institution Building:

Capacity – “the ability to perform functions, solve problems, and set and achieve objectives” (UNDP 2002)

More than Human Resources and Institution Building:

Capacity – “the ability to perform functions, solve problems, and set and achieve objectives” (UNDP 2002)

1.A. Definition: CD1.A. Definition: CD

More than Human Resources and Institution Building:

Capacity Development – “(…) the process of strengthening the abilities or capacities of individuals, organisations and societies to make effective and efficient use of resources, in order to achieve their own goals on a sustainable basis.” (GTZ 2003)

More than Human Resources and Institution Building:

Capacity Development – “(…) the process of strengthening the abilities or capacities of individuals, organisations and societies to make effective and efficient use of resources, in order to achieve their own goals on a sustainable basis.” (GTZ 2003)

Integration into Country Led Programmes

Coordination of Multiple Donor Contributions

PC LeadershipSupport Partners’

National Dev. Strategies

1.B. Definition: Harmonized TC1.B. Definition: Harmonized TC

Harmonized TC

According to PD

1.B. Definition: Harmonized TC1.B. Definition: Harmonized TC

High Standards Necessary:

A. Holistic Understanding of CD

B. Comprehensive Approach to Harmonized TC

High Standards Necessary:

A. Holistic Understanding of CD

B. Comprehensive Approach to Harmonized TC

1. The New TC Approach1. The New TC Approach

PRS

1. The New TA Approach: SWAPs/PBAs1. The New TA Approach: SWAPs/PBAs

DPs

Holistic CD

PCable to deliver

Harmonization(to minimize transaction costs for PC and Maximize Aid Predictability)

Ownership(to Support PC dev. Priorities)

Alignment – Needs Driven Approach(to Support PC dev. Priorities)

SWAp/PBA

1. The New TA Approach: SWAPs/PBAs1. The New TA Approach: SWAPs/PBAs

CD First!

StructureStructure

1. The New TA Approach

4. Lessons Learnt and Way Forward

2. Ghana 2006 Survey: Results

3. Best Practice: PPME

2. Ghana 2006 Survey: Results

2. Ghana 2006 Survey: Results

Indicator 4: Strengthen Capacity by Coordinated Support:• How much TC did you provide in FY 2005?

→ Qd3. (USD): $ 153.248.315

• How much TC did you provide through coordinated programmes in support of CD in FY 2005?

→ Qd.4 (USD): $ 67.333.779

Indicator 4: Qd.4/Qd.3 = 40% (target: 50%)

Good Practices were Identified within the Framework of Programme Based Approaches (Health SWAp, Road Sector etc.)

Bulk of TA Remains Uncoordinated

Good Practices were Identified within the Framework of Programme Based Approaches (Health SWAp, Road Sector etc.)

Bulk of TA Remains Uncoordinated

2. Ghana 2006 Survey: Results

2. Ghana 2006 Survey: Results

Some Donors Consider their TA to be Coordinated Because of the Consultations with GoG. However this is not in line with the definition of the Survey.

6 out of 16 Donors Reported “0” Coordination

More Information is Required to Analyze the Coordinated TA

Some Donors Consider their TA to be Coordinated Because of the Consultations with GoG. However this is not in line with the definition of the Survey.

6 out of 16 Donors Reported “0” Coordination

More Information is Required to Analyze the Coordinated TA

2. Ghana 2006 Survey: Results

2. Ghana 2006 Survey: Results

StructureStructure

1. The New TC Approach

4. Lessons Learnt and Way Forward

2. Ghana 2006 Survey: Results

3. Best Practice: PPME

accounts for up to 80 % of total government expenditure (non staff emoluments)

→ ODA/National Budget (excl. Grants): 42 % (in 2004)

18 % of GDP (Africa: estimated 9-13 %)

→ in 2005: US$ 1.8 Bill.

70 % of Imports

→ in 2005: US$ 3.8 Bill

accounts for up to 80 % of total government expenditure (non staff emoluments)

→ ODA/National Budget (excl. Grants): 42 % (in 2004)

18 % of GDP (Africa: estimated 9-13 %)

→ in 2005: US$ 1.8 Bill.

70 % of Imports

→ in 2005: US$ 3.8 Bill

→ Aid Effectiveness and V4M!

3. Best Practice: PPMEPublic Procurement in Ghana: Figures

3. Best Practice: PPMEPublic Procurement in Ghana: Figures

DPs

2. Holistic CD

1. Harmonization at Global Level

Ownership

5. V4M

4. Services

3. Alignment – Funding through PC PS in Accordance to NDS

3. Best Practice: PPME3. Best Practice: PPME

PC Procure

ment System

PRS

1996: PUFMARP

2002: OECD/DAC-WB ROUNDTABLE

2003: Public Procurement Act 663

2003: Country Procurement Assessment Report

2003: Ghana/Swiss Partnership for Transparency and Accountability in Public Procurement

1996: PUFMARP

2002: OECD/DAC-WB ROUNDTABLE

2003: Public Procurement Act 663

2003: Country Procurement Assessment Report

2003: Ghana/Swiss Partnership for Transparency and Accountability in Public Procurement

3. Best Practice: PPME3. Best Practice: PPME

3. Best Practice: PPME3. Best Practice: PPME

PPME - Harmonization at the Global Level:

• Funding From Swiss Government

• WB Baseline Indicator System + Swiss Performance Criteria

• Pooled Idea – Output Agreed on Global Level (RTs)

→ Development of a Framework for Procurement Assessment as Globally Coordinated CD

Overall Effects:

1. More V4M2. Increased reliance on NPS

→ Therefore: Increased PC Ownership

3. Development Results

Overall Effects:

1. More V4M2. Increased reliance on NPS

→ Therefore: Increased PC Ownership

3. Development Results

3. Best Practice: PPME3. Best Practice: PPME

DPsPC

able to deliver

Harmonization

Ownership

Alignment

SWAp/PBA

PC Procurement Syste

m

PRS

Development

3. Best Practice: PPME3. Best Practice: PPME

StructureStructure

1. The New TA Approach

3. Best Practice: PPME

4. Lessons Learnt and Way Forward

2. Ghana 2006 Survey: Results

CD Central for SWAPs/PBAs→ Alignment to NDS

→ Ability of PC “to deliver”

CD as prerequisite for SWAPs/PBAs

CD Central for SWAPs/PBAs→ Alignment to NDS

→ Ability of PC “to deliver”

CD as prerequisite for SWAPs/PBAs

4. Lessons Learnt and Way Forward4. Lessons Learnt and Way Forward

Commitment and Leadership of PC Government Mandatory for SWAp/PBA

→ Ownership – PC Priorities!

Therefore: CD to Facilitate Ownership

→ Interdependency of OS and Capacity

Commitment and Leadership of PC Government Mandatory for SWAp/PBA

→ Ownership – PC Priorities!

Therefore: CD to Facilitate Ownership

→ Interdependency of OS and Capacity

4. Lessons Learnt and Way Forward4. Lessons Learnt and Way Forward

Ownership Capacity

4. Lessons Learnt and Way Forward: Interdependency of Ownership and Capacity

4. Lessons Learnt and Way Forward: Interdependency of Ownership and Capacity

CD

Aid Effectiveness

++

++++

++

++

++

But: CD Kick Start Might be Necessary (e.g. WB: PCA

663) – Ownership Dilemma?

But: CD Kick Start Might be Necessary (e.g. WB: PCA

663) – Ownership Dilemma?

4. Lessons Learnt and Way Forward: Interdependency of Ownership and Capacity

4. Lessons Learnt and Way Forward: Interdependency of Ownership and Capacity

CD in Procurement “Win-Win” Situation→ Value for Money for DP and PC→ Positive Motivational Structure→ Development Results

THEREFORE: “AID EFFECTIVESS”

CD in Procurement “Win-Win” Situation→ Value for Money for DP and PC→ Positive Motivational Structure→ Development Results

THEREFORE: “AID EFFECTIVESS”

4. Lessons Learnt and Way Forward: Procurement: a Special Case

4. Lessons Learnt and Way Forward: Procurement: a Special Case

4. Lessons Learnt and Way Forward: Procurement: a Special Case

4. Lessons Learnt and Way Forward: Procurement: a Special Case

NPS as sample case of Ownership→ should therefore increase

comfort level for DPs to administer ODA through NPS

→ DPs can support similar ventures e.g. FM, M&E, MfDR

NPS as sample case of Ownership→ should therefore increase

comfort level for DPs to administer ODA through NPS

→ DPs can support similar ventures e.g. FM, M&E, MfDR

3. Lessons Learnt and Way Forward

3. Lessons Learnt and Way Forward

It’s all About Capacity!

Way Forward in Other Sectors:

Joint Technical Assistance

Sector Strategy TA

TA Pool

Way Forward in Other Sectors:

Joint Technical Assistance

Sector Strategy TA

TA Pool

4. Lessons Learnt and Way Forward

4. Lessons Learnt and Way Forward

4. Lessons Learnt and Way ForwardJoint Technical Assistance

4. Lessons Learnt and Way ForwardJoint Technical Assistance

•A formal agreement of two or more donors to implement a project with the approval of

government or/and partner organizations

•Directly linked to a country led sector strategy or programme

4. Lessons Learnt and Way ForwardSector Strategy TA

4. Lessons Learnt and Way ForwardSector Strategy TA

• Government and DPs Commit to Following a Specific Sector Strategy (With Indicators and Time Frames)

• PC’s Government has no Direct Access to the Funds for TC

4. Lessons Learnt and Way ForwardTA Pool

4. Lessons Learnt and Way ForwardTA Pool

1. GMTA Pool

→ PC’s Government Manages the Funds

2. DMTA Pool

→ Donors or Donor Secretariat Manages the Funds on Behalf of PC’s government

4. Lessons Learnt and Way ForwardTA Pool

4. Lessons Learnt and Way ForwardTA Pool

PC Prefers Financial Contributions Instead of in Kind

Funding

4. Lessons Learnt and Way Forward

4. Lessons Learnt and Way Forward

+

PC

OwnershipTAP

SSTA

JTA

Donor Harmonization

+Stand Alone Programmes

4. Lessons Learnt and Way Forward

4. Lessons Learnt and Way Forward

• In 2005 Ghana Received 316 Donor Missions, only 33% of them were Coordinated (Indic. 10a Target: 40%)

→ e.g. Canada: 57 Missions – 1 Coordinated

• GoG does not Have a System of Recording the Totality of the Visiting Missions

→ CD + Harmonization

4. Lessons Learnt and Way Forward

4. Lessons Learnt and Way Forward

+

PC

OwnershipTAP

SSTA

JTA

Donor Harmonization

+

+Aid Effectiveness

4. Lessons Learnt and Way ForwardConcluding Remarks

4. Lessons Learnt and Way ForwardConcluding Remarks

Coordination of TC is no Guarantee for Performance, Development,

Impact and Sustainability

Capacity is not a One Stop Shop

Ministry of Finance and Economic Planning

Thank you very much for your attention!

Mr. Ernest Prempeh - Ministry of Finance and Econ. Planning, GhanaMr. Kristian Lempa - GTZ Revenue Mobilization Support, Ghana

Learning Network on Capacity Development

LenCD FORUMAddressing the Paris Declaration Collective Responsibility for Capacity Development:What Works, and What Doesn’t?

Working Group 4 (Oct. 3rd): Pursuing Joint Approaches to CD at the National Level