________________________________________________________ Harmonization & Alignment

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Development BankDevelopment BankAfricanAfricanTheThe

________________________________________________________

Harmonization & Alignment

The AfDB Experience

in Country Analytic Work__________________________________

Country Analytic Work (CAW) Workshop

June 2005

Washington DCOPERATIONS POLICIY & REVIEW DEPARTMENT (POPR)

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Overview of Presentation___________________________________________________________________________________________________________________________________________________________________________________________________________________________________

1. The AfDB Supports H&A because….

2. Objective of the AfDB H&A Agenda

3. Early AfDB Interventions to Promote H&A

4. Present AfDB Activities to Promote H&A* Institutional Activities* Country-Level Activities* Global/Regional Activities

5. ADB Experience with Country Analytic Work* CFAA * CGP, * CPAR,* Convergence Mapping

6. Key Lessons

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The AfDB Supports H&A

because lack of harmonization…….

• Undermines legitimate country ownership and leadership

• Increases transaction cost (about 5% of ODA or $3.5 billion per year spent to deliver development assistance)

• Weakens country systems and strains local capacity

• Reduces development effectiveness

• Erodes public support for national development agenda.

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Objective of the AfDB H&A Agenda

1. Strengthen country ownership & government leadership

2. Align donor policy, procedures, and practice with national PRS, priorities, processes, and systems

3. Reduce transaction costs imposed by donor requirements

4. Strengthen capacity of national systems and procedures

5. Enhance development effectiveness to achieve MDGs

6. Ensure Mutual accountability between donors and RMCs

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Early AfDB Interventions

THE OECD-DAC

Participation in OECD-DAC Task Forces that produced Good Practices Papers (GPP) on:

• i) Donor Cooperation; ii) Country Analytic Work; iii) Public Financial Management; iv) Reporting & Monitoring; v) Financial Reporting & Auditing; vi) Delegation Cooperation; vii) Joint venture on Managing for Results.

MDB WORKING GROUPS

Participation in thematic MDB WORKING GROUPS on:

• i) Financial Management; ii) Procurement; iii) Environmental and Social Safeguards; iv) Evaluation Cooperation; v) Governance & Capacity Building; vi) Disbursement

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Current AfDB Activities

Three Levels of AfDB Activities

1. Institutional Level Activities

2. Country Level Activities

3. Regional & Global Level Activities

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Institutional Activities

• Disseminate global consensus (the Rome Declaration, Marrakech Consensus, Paris Declarations) to RMCs, the Board, Mgmt., Staff

• Sensitise the Board, management, and staff about implications of harmonization, alignment, and MfR on Bank operations

• Review Bank policies, procedures, incentives, and practices to simplify and streamline as per GPPs (RB/CSPs, PRSP, JAS)

• Strengthen coordination capacity in POPR; and capacity in operations, TWGs, & Country offices to implement GPPs

• Revise and update AfDB HAMfR Strategy, and Monitor and Report on implementation progress, challenges, and lessons

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Country-Level Activities

• Greater harmonization of Country Programming with other partners; and alignment with RMC priorities through CSPs/PRSPs

• Technical & financial assistance to RMC to finalize H&A Action Plans and PRSPs(Uganda, Mozambique, Ethiopia)

• Sector/Thematic collaboration on HIV/AIDS, Water & Sanitation, Social, Agriculture, Infrastructure, Financial Sector & Capacity bldg

• Enhancing role of Country Offices to support RMC level activities

• Greater use of Common Arrangements, Joint Diagnostics and Assessments (Co-financing, DBS, CAW, JAS, RAS, SWAp, JAI, CAF, CPAR, CGP, standardized procurement documents, MTEF, harmonized evaluation procedures, etc)

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Global & Regional Activities

• Facilitate dialogue & build consensus on best practices and good principles through regional foras (Addis Ababa, Marrakech, Tunis, Dar es Salaam)

• Support RMC level implementation of global consensus and GPPs

• Participate in HAMfR Technical Working Groups

• Contribute to information sharing via ICT platform (country analytic web sits; harmonization & results web sits)

• Collaborate with partners to develop indicators and targets; monitor and report on country level implementation progress

• Lead the organization of regional follow-ups and dissemination efforts

• Support regional initiatives (NEPAD, SPA, COMESA,WAEMU, ECOWAS, SADC)

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Country Analytic Work

Guiding Principles, to the extent possible, …

• Reinforce the ability and willingness of RMCs to own externally supported programs and strengthen their internal accountability

• Avoid duplication and reduce RMC administrative burden by rationalising stock and application of diagnostic tools (common use)

• Design and implement CAWs in a way that will reinforce existing RMC institutional capacity and build new ones

• Promote policy coherence between donors and partners through systematic sharing of diagnostic tools and dissemination of findings

• Share information and findings with all interested parties

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AfDB Experience with CAW

Country Financial Accountability Assessment (CFAA)

• Diagnostic tools designed to enhance knowledge about the strength and weaknesses of RMC public financial management and accountability arrangements, and efforts to improve them

• Since 2002, the AfDB has participated in eleven CFAAs, with Govt. World Bank & donors (UNDP, EU, DFID), more planned for 2005

• The scope of CFAA partnership covers conducting the review; disseminating review findings; post review Action-Plan; and review updates

• CFAA findings inform the preparation of CSP, CGP, CPAR, etc.

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AfDB Experience with CGPsCountry Governance Profile (CGP)

• Launched in 2002 as diagnostic tools to collect baseline governance information to appraise governance-related risks and opportunities, and agree with RMCs on reform priorities and a roadmap

• The scope of CGP is defined by the five governance priorities in the AfDB policy: Accountability; Transparency; Legal and Judicial Reform; Combating Corruption; and Stakeholder Participation

• CGPs integrate findings from other diagnostics, and its finding lead to policy dialogue on governance reforms and follow-up Plans

• To-date, AfDB has participated in fourteen CGPs in collaboration with the Govt, UNDP, ACBF; five are planned for 2005; discussion is underway with the WB and DFID on future undertakings

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AfDB Experience with CPARs

Country Procurement Assessment Review (CPAR)

• A diagnostic tool to examine transparency of procurement systems, compliance with accepted practice, and capacity of regulatory bodies. Its findings lead to RMC dialogue and development of Action Plans.

• Ownership, Participation, Partnership guide preparation of CPAR; the review process involves three-missions (launch, principle, validation); final output is submitted to Govt. and peer-review before circulation; and product is integrated with other fiduciary ESW.

• In recent years the AfDB has collaborated with the World Bank to carry out six CPAR, and additional review are under consideration

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MAPPING CFAA & CGP CONVERGENCE

Opportunity

For

Convergence

CFAA

CGP(Five Key Elements)

Transparency

Accountability

Combating Corruption& Money Laundering

Participation

Legal and Judicial Systems

Low

Low

Low

High

Medium

Opportunity

For

Convergence

CFAA


Transparency

Accountability


Participation

Legal and Judicial Systems

Low

Low

Medium

High

AccountabilityHigh

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MAPPING CPAR & CGP CONVERGENCE

Opportunity

For

Convergence

CPAR


Transparency

Accountability


Legal & Judicial Systems

ParticipationLow

Medium

Medium

High

MediumHigh Accountability

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Early Lessons in CAW….

• Enhanced use of JAS & RAS will create increased demand for CAWs

• Given their specialized and thematicfocus, CAW findings are most meaningful when viewed jointly and as complimentary products

• CAWs are leading to greater consensus and adoption of common diagnostic frameworks, benchmarks, and non-compliance remedies

• The timing and process of CAWs need better coordination and sequencing with one or more ESW and diagnostic products

• CAWs need better harmonization and rationalization (CGPs, WB Governance & Institutional Assessment, and the NEPAD/APRM)

• CAW effectiveness requires better harmonization of rules, policies, and statutory requirements (Article of Agreement on the origin of goods and services)

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Early Lessons in CAW (cont.)

• The WB drives CAWs, with little ADB involvement upstream in the planning & timing of CAWs, and in post-review follow-up activities

• Presentation of CAW products to the respective Bank Boards and building joint institutional ownership requires further improvement

• Resource constraint (financial & human) and organizational structures (lack of field presence) is curtailing AfDB’s role in CAWs

• Working relations between MDB staff needs to improve the through joint training and team building efforts (e.g., current ADB/IMF/WB staff exchange)

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THANK YOU

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________________________________________________________ Harmonization & Alignment

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