navigating the recovery gap: aid flows to the central african republic in 2008/09

CENTRAL AFRICAN REPUBLIC

Aid in 2008 and perspectives for 2009

Ministry of Planning, Economics and International CooperationCentral African Republic


A. Progress in implementing the aid management system


Aid management improves coordination

• 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

Aid management system in brief Aid management systems worldwide


More than 320 projects documented in detail in online database

Strong support from partners for DAD

Sep ‘08 Oct ‘08 Nov ‘08 Dec ‘08 Jan ‘08 Feb ‘09

12

96

176

243

276

202

324

Mar ‘09


B. Analysis of external assistance in 2008


Humanitarian aid and multilateral reengagement served as catalysts

Putting aid to CAR in perspective

2002 2003 2004 2005 2006 2007

$63m

$126m

$81m

$251m $242m

$117m

DevelopmentHumanitarian

Clearing of debt arrears

2008

$295m


Encouraging numbers

• $320m committed in 2008 for new 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.)

$295m made available (gross)

Total external assistance in 2008

$150m, Projects(51%)

$54m, Budget support / debt relief (18%)

$6m, Tech. cooperation(2%)

$90m, Humanitarian (31%)

* Including for multi-year projects or activities


C. Development aid in 2008


Multilateral support remains vital

• $226m committed in 2008 for new development projects or activities*

• $204m made available / disbursed by donors, inline with Round Table commitments*

• Multilateral institutions account for 90% of disbursements

• $167m spent by implementing agencies (government, UNO, NGOs, etc.)

Resources made available (Top 10)*

Development aid in 2008

EC

World Bank

United Nations

IMF

France

Global Fund

AfDB

GAVI

China

Germany

$62.7m

$34.3m

$23.3m

$23.2m

$17.3m

$16.0m

$9.6m

$3.5m

$2.3m

$2.1m



Top 4 sectors account for 78% of development expenditure in 2008

Sector concentration improves slowly

Budget support / debt relief

Health

Security, peace and justice

Transport and infrastructure

Governance

HIV/AIDS

Forestry

Education

Water and sanitation

Business environment

$46m (28%)

25m (15%)

$21m (13%)

$19m (12%)

$18m (11%)

$12m (7%)

$7m (4%)

$5m (3%)

$4m (2%)

$3m (2%)

Budget support / debt reliefHealth

GovernanceSecurity, peace and justice

Transport and infrastructureHIV/AIDS

ForestryEducation

Non-allocatedRural development

Top four sectors in 2007: 81%


Field impact remains very limited

< $1m> $1m> $3m> $6m> $9m> $12m

Only 20% of dev. aid spent directly in regions (home to 80% of population)

Outside Bangui 2007: 15%


D. Humanitarian aid in 2008


New high, but lower momentum

• $95m committed in 2008 to humanitarian projects / activities*

• $90m made available / disbursed by donors*

• 3.5 times higher than 2006

• Humanitarian aid brings new donors and additional resources

• $66m spent by implementing agencies (72% UNO, 28% NGOs)

Humanitarian aid in 2008

United States

United Nations

EC

Japan

United Kingdom

Sweden

Ireland

France

Netherlands

Canada

$23.8m

$11.9m

$9.2m

$5.3m

$4.6m

$4.6m

$3.8m

$3.4m

$2.7m

$2.5m

Resources made available (Top 10)*



Heavy concentration on food aid (distributed in key agricultural regions)

Humanitarian aid lacks balance

Top four sectors in 2007: 75%

Food security and agriculture

Multi-sect. assistance refug./IDPs

Health

Coordination and logistics

Education

Shelter and non-food items

Protection and human rights


Staff security and safety

Food security and agriculture

Health

Coordination and logistics

Multi-sect. assistance refug./IDPs

Education

Protection and Human rights


Economic recovery / infrastructure

Shelter and non-food items

$34m (52%)

8m (12%)

$7m (11%)

$5m (8%)

$5m (8%)

$3m (5%)

$3m (5%)

$1m (2%)

$0.4m


Strong field impact key to stability

< $1m> $1m> $3m> $6m> $9m> $12m

80% of humanitarian aid spent directly in fragile northern regions

Outside Bangui 2007: 80%


E. Some perspectives for 2009


Development aid stabilizes while humanitarian aid is likely to decline

Falling into a recovery gap?

2002 2003 2004 2005 2006 2007

$63m

$126m

$81m

$251m $242m

$117m

2008

$295m

2009** Based on data available as of Mai 2009

DevelopmentHumanitarian

Clearing of debt arrears


Steep declines in wood (-60%) and diamond production (-80%)

Strong impact of global economic crisis…

01/07 01/08 07/08 12/0807/07

60,000

50,000

40,000

30,000

20,000

10,000

30,000

25,000

20,000

15,000

10,000

5,000

CaratsCubic metres

Wood (cut) Wood (sawn) Diamonds


Bangui

… but lack of response in the field

< $5m> $5m> $15m> $30m> $60m> $120m

Commitments to projects in heavily affected southern regions very limited

* Projects signed in 2007/08

Diamonds

Uranium

Gold

Wood


Aiming to facilitate disbursements

Improving the capacity to implement…

• $1074m committed for developmentprojects active in 2008, 2009 and beyond

• $424m (41%) made available by the end of 2008

• $650m to be made available between 2009 et 2012

• Concerted effort required to improve implementation capacity to facilitate disbursements

Overview of commitments*

* Development support only, without humanitarian aid

$1074mcommitted

$424mmade available / disbursed

$349mspent

* Commitments to development projects active in 2008, 2009 or beyond

CommitmentDisbursementExpenditure


DAD directly contributes to improved aid effectiveness and coordination

… with the support of DAD

DADAid Management System

1

2

3

4

BudgetRaising the percentage of development aid reflected in the national budget from less than 50% to 85%

Providing projections on public investments financed with foreign aid (~95%)

Public Invest. Plan

Contributing data and projections on expenditure of development projects

MTEF

Providing key data to sector and regional coordination committees

Coordination


Only 25% of dev. aid disbursements reflected in public expenditure tables

Improving the quality of public finances

$50m0 $100m $150m $200m

$204mmade available

$43m accounted for in 2008 public expenditure tables


Strengthening the PRSP process

PRSP

SP

PAP

PIP

MTEF

Budget

GESCO DAD

Aid management as a key priority

• Foreign aid finances 98% of public investment

• Foreign aid finances about 50% of current expenditure in the budget

• DAD covers 85% to 100% of aid

• DAD will help to improve:– Sector policies– Priority action plans– Public investment plans– Multi-year expenditure frameworks– National budget

Key tools and their links


DevInfo: tracking needs indicators

• Organizes statistical time series on evolution of needs indicators

• Regular, comprehensive and representative surveys are priority no 1 for 2008

Key tools for PRSP monitoring

DAD: tracking aid disbursements

• Provides financial data on projects implemented within PRSP framework

• Allows for comprehensive M&E in correlation with DevInfo

Primary enrolment (measure of invest. impact)*

1990 2000 2010

Education (average investment by region)*

1990 2000 2010

$9m

$6m

$12m

Situation 2008

$3m

$1m

Situation 2010

* Example, for illustration only

80%

60%

100%

40%

20%


For more information• http://dad.minplan-rca.org

Supported by the ARCAD project – Building capacity for the implementation of CAR’s poverty reduction strategyAid coordination | Public finances | Anti-corruption measures | Administrative reform | Business environment

• Désiré Yassigao | [email protected] coordinator | Ministry of Planning

• Kersten Jauer | [email protected] Information Manager | UNDP

navigating the recovery gap: aid flows to the central african republic in 2008/09

Economy & Finance