CONCEPT NOTE/Programme Document - Udenrigsministeriet/media/UM/English-site/Documents...CONCEPT...

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Ministry of Foreign Affairs of Denmark

Department for Green Growth

CONCEPT NOTE/Programme Document

Social Dialogue Window II – Sustainable Value chains and Vocational training

3. March 2015 File No. 2015-1753

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Contents 1 Introduction .................................................................................................................................................... 3

1.1 Strategic questions to guide the discussion. ....................................................................................... 3

1.2 Summary of conclusions regarding the envisaged support. ............................................................. 3

2 Conclusions from preparatory analyses justifying the envisaged support ............................................. 5

2.1 Justification of the envisaged support ................................................................................................. 5

2.2 Key experiences and results of previous support to consider for future support. ....................... 6

2.3 Danish and national strategies for supporting value chains and vocational training ................... 7

3 Overview of support/Programme Document ........................................................................................... 8

3.1 Presentation of the Programme ........................................................................................................... 8

3.2 Programme objective ............................................................................................................................. 9

3.3 Overview of management set-up at programme level: ................................................................... 13

Annex 1: Process Action Plan (PAP) ............................................................................................................ 15

Annex 2: Results Framework ......................................................................................................................... 17

Annex 3: Assessment of Contextual, Programmatic and Institutional Risks .......................................... 18

Annex 4: HRBA/Gender Screening Note ................................................................................................... 20

Annex 5: Climate Change and Green Growth Screening Note ................................................................ 23

Annex 6: Assessment according to the budget support principles ........................................................... 27

Annex 7: Assessment criteria applications ................................................................................................... 28

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1 Introduction

1.1 Strategic questions to guide the discussion.

Scope and objective: How to ensure value-addition and synergies instead of overlap

with existing efforts supported within country programmes or new initiatives under

development, eg. Growth Advisers?

Could there be conflict of interests with Trade Council services?

Balance in geographical scope; priority countries vs. other emerging economies?

What would it take to make these expected project proposals driven by Danish

organisations complimentary to other, larger efforts and/or alignment with other

donors?

Would a challenge facility like this one benefit from a pre-qualification round with

subsequent support to project formulation?

1.2 Summary of conclusions regarding the envisaged support.

As part of the Government’s priorities for development assistance in 2015, the Minister announced in August 2014 that allocating funds to promote social dialogue tapping on the Danish model for tripartism was a priority. Hence, an amount of DKK 20 million for social dialogue (window I) was allocated in the 2015 Finance Bill under the frame §06.32.12.05 for Danida Business Partnerships. In November 2014, when a final agreement was entered additional 55 million DKK was allocated to the frame to finance “additional efforts within vocational training, environment and social standards and small and medium sized enterprises corporate responsibility as well as framework conditions for labour markets in developing countries”. This is the background for formulation of Social Dialogue window II.

While window I has a more narrow focus on promoting social dialogue in relation to the

employer-employee relations, negotiations and dispute-solving to improve working conditions

and worker’s rights, window II implies a broader interpretation of social dialogue in relation to

value chains and skills development. The intention of the Social Dialogue window II with the

working title “Sustainable Value chains and Vocational training” is to engage and cluster

Danish expertise to help address bottlenecks and develop value chains with focus on

sustainable production, improving production methods, the working environment and

vocational training. Value chains within sustainable energy supply, water resource management

and food production are in focus. Within these areas Denmark is at the forefront and can

demonstrate positive experiences from collaboration between public and private actors, while

many developing countries, on the contrary, possess little experience with public-private

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collaboration to address the widespread need for adapting to the rapid transformation to

specialised market economies and rapid urbanization.

Collaborative approaches may imply formation of clusters, hubs, networks and the like

determined to bring expertise from both the public and private sector into play to foster

sustainable growth and broad-based income generation in developing countries. The facility will

be open to applications led by actors within the Danish business environment including

business-/trade organisations, “væksthuse”, vocational training institutes, university

colleges/business schools, research institutes and civil society organisations.

Consultations with key stakeholders in Denmark and embassies have taken place to identify demand, and to narrow the scope for this new financing mechanism. This has been done with a view to developing a facility that is complimentary and does not interfere with existing or planned efforts as part of the sector/country programmes. As a result, the main features of the proposed Value chains and Vocational training Facility include the following:

The overall objective is to contribute to inclusive green growth and broad-based income generation in developing countries

The immediate objective is to foster cooperation including public-private collaboration to overcome obstacles in selected value chains with particular focus on improving social and environmental sustainability of production and production methods, working environment and vocational training to generate sustainable value creation and a better business climate in developing countries.

Value-chains within sustainable energy, food production, water resource management and the textile industry are a priority.

The facility is designed as a challenge fund, open for one round of applications in 2015.

Projects are expected to have a medium to long-term perspective, may take place in one or several developing countries (eg. regional approach) with budgets up to app. 10 million DKK.

The Danish partner must either represent a group of interests/sector or consist of a partnership between several interests.

One local partner must be engaged at the stage of submission of application, but additional local partners are encouraged to be identified and involved as part of the project.

The success of this facility will be measured against indicators to be formulated and agreed upon for each project granted support.

Danish partner organisations with a framework financing agreement with Danida can also apply for project support. However, only to interventions other than those conducted under the framework agreement in force.

The facility will be managed by the Green Growth Department in close collaboration with Representations in the country/countries where the project(s) will be implemented.

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The Process Action Plan showing the planned formulation, launch and expected approval of projects is enclosed in Annex 1.

2 Conclusions from preparatory analyses justifying the envisaged support

2.1 Justification of the envisaged support

In relation to the justification of this facility’s objective, linkage to other Danida programs/interventions and the suggested partnership modality, the following statements on the importance of the value chain approach and vocational training from the Strategic Framework for Growth and Employment (2011-2015) still appears highly relevant:

“Denmark will prioritize support to and development of value chains, to overcome obstacles to their growth and development. This approach will contribute to identify a common objective that cuts across instruments and programs, releasing the full potential for synergy between sector programs and partnerships with the business sector, research institutions, social partners and civil society, and other development partners. This will improve both the commercial and developmental bottom lines in the form of robust and sustainable results”.

“A lack of skilled labour can in itself hinder economic activity. It is therefore important to think in terms of concrete possibilities for developing shorter, module-based programs of vocational training and education that can be carried out in close cooperation with the business community, which will be the employer of the labour”.

More recently, it has been underlined in the Danish Civil Society Policy (June 2014) that Denmark continues to search for innovative measures to unlock the potential and strengthen the collaboration between Danish CSOs and companies.

In addition, promoting social dialogue1 and worker’s rights as a lever for poverty reduction is a priority in Denmark’s development cooperation. Human rights are a means and an end when contributing to build societies that ensure people’s rights and promote equality, including access to decent work, education, health and social protection. (“Right to a better life”, June 2012). And as stated above, in the Government’s priorities for 2015, allocating new funds to promote social dialogue was a priority, and resulted in more funds to additional efforts engaging the Danish resource base.

As a result, selected embassies and stakeholders in Denmark have been consulted to identify lessons learned, current demand and ideas for initiating social dialogue efforts focusing on selected value chains and vocational training.

1 The International Labour Organization (ILO) defines social dialogue as: “[…] all types of negotiation, consultation or simply exchange of information between, or among, representatives of governments, employers and workers on issues of common interest relating to economic and social policy”.

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2.2 Key experiences and results of previous support to consider for future support.

As outlined above, supporting sustainable value chain development is central to Danida efforts at various levels aimed at fostering inclusive growth. Several positive examples do exist, while, however, a general lesson learned from previous and ongoing support relates to the complexity of addressing all the challenges in a value chain. In general, bridging public and private interests through social dialogue can be expected to have a positive development impact on most investments.

Denmark as well as developing countries is challenged by the fact that vocational training has suffered from being less popular than other types of education. In Denmark, however, the reputation have changed more recently, partly due to better marketing of opportunities and engagement of the social partners in developing curriculum. Much donor funding have over the years been allocated to implement short-term courses in developing countries, but funds are typically directed to governments with poor involvement of the business community. Consequently, improving the social dialogue and collaboration on developing vocational training that matches the market requirements appears relevant. The Confederation of Danish Industries, with support from Danida, has, however, in recent years contributed to positive results in terms of supporting local entrepreneurship and start-ups through facilitation of market-oriented workshops – the MENA region being one interesting case.

Another positive example addressing the challenge of large informal economies in developing countries through a broad-based partnership is a joint project between three Danish labour market parties and social partners in four West African countries. The objective is capacity building of trade unions including development of services to micro companies in the informal sector and increasing of their organization. Through basic skills development and awareness raising efforts, the aim is to improve working conditions and pave the way for formalization of their businesses in the longer term when the micro-entrepreneurs’ businesses grow. This project received support from Danida, but currently there exists no facility to support similar types of interventions in Denmark’s priority countries.

Moreover, several years of support to facilitation of business-to-business partnerships highlights the demand for vocational training addressing the needs of business. Danish companies – and local companies for that matter - often comment on the lack of a skilled labour force in most developing countries. Despite the fact that training of local partner’s staff has been a cornerstone of Danish business development support, a systemic approach driven by a cluster of companies and social partners in collaboration with a group of local partners within a value chain could scale-up efforts and thereby increase impact. An example in this regard worth mentioning is the partnerships for Sustainable Business Development in Kenya (SUSBIZ), which is a multi-stakeholder initiative engaging 10 Kenyan and 10 Danish companies and run by the Danish Federation of SMEs, the Danish Ministry of Business and Growth, and the Federation of Kenya Employers with financial support from Danida. The SUSBIZ concept implies facilitating dialogue and closer collaboration between business partners at different levels at the global value chains, and promotes mutual understanding in relation to the business partners’ markets, product strategies, stakeholders and CSR challenges and potentials. Assessment from the participating companies from Kenya clearly indicates very positive outcomes.

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The examples above does not serve as a comprehensive outline of key experiences and results but solely as an appetizer of some lessons learned and inspiration to generation of project proposals within this challenge fund.

2.3 Danish and national strategies for supporting value chains and vocational training

In the strategy for Denmark’s Development Cooperation, The Right to a Better Life (June 2012), it is made clear that efforts targeting development of agro-based value chains to drive sustainable growth is a priority:

“Denmark will work to turn the agriculture and food production sectors into drivers of sustainable and inclusive growth, which should generate new income opportunities, improve food security and create employment. [..] Improved framework conditions and policies for sustainable food production must be established, including those that promote an improvement of quality control systems, financing, processing, transport and marketing, as well as compliance with standards and certification requirements. A necessary precondition for agricultural development and sustainable production is the creation of stronger linkages between research, education, advisory services, the private sector and markets. Denmark will continue to support interventions creating added value and quality throughout the production chain “from farm to fork”, and focus on strengthening the weak links in the chain” (Right to a Better Life, p.19)

Moreover, the importance of vocational training is underlined:

“The social partners must be engaged in the transition to green growth and help take care of those who are adversely affected in the process. Improved opportunities for vocational training and education are crucial and Denmark will support vocational training and education according to public and private sector demand” (Right to a Better Life, p.22)

These strategic priorities are described in more detail and with suggestions for concrete tools and approaches in the supplementary strategic frameworks for Growth and Employment (G&E) and Natural resources, Energy and Climate (NEC).

“Transfer and development of innovative green technologies and system approaches within resource efficiency; cleaner production methods; pollution control; and improved land and water management, including water efficiency and wastewater management, will also be strengthened by leveraging public-private partnership…” (NEC, p.23)

“As part of Danish support for agricultural value chains and to promote resource-efficient and climate-resilient farming techniques, priority will be given to strengthening farmers’ capacity through farmer-led advisory services, skill training, financial services and technology access. Activities will be carried out through cooperation with local authorities, the private sector, local agricultural organizations, and other CSOs” (NEC, p.26)

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3 Overview of support/Programme Document

3.1 Presentation of the Programme

The thematic context for introducing a social dialogue facility focusing on value chains and

vocational training is outlined in the previous sections. Below, a justification for the selected

design and choice of development engagements follows.

Introducing a new facility (programme in the following) with a total budget of 55 million DKK should preferably lead to something value-added and/or innovative to avoid risk of duplication or lack of additionality compared to other development engagements.

The programme design selected is along the lines of challenge funds using competition among organisations as a lead principle to meet the objective of promoting social dialogue with particular focus on contributing to more sustainable value chains and improving vocational training according to market demand. By inviting organisations to submit project proposals, the goal is to maximise development impact through awarding grants to those projects that best meet the objectives of the facility and fulfil eligibility criteria. Presentation of innovative and cost-effective solutions will be encouraged.

The theory of change can be illustrated as follows:

Hence, this program potentially supports the same type of activities supported within

sector/country programs. The expected difference, however, is that the activities are

formulated in a partnership between stakeholders in the recipient country/countries and

Danish partners and driven by a group/hub/cluster/network of Danish interests with a

particular interest in country/countries X. Consequently, there is an inherent assumption in the

program that fulfilling the immediate objective may result in improved conditions for Danish

businesses abroad.

Rapid transformation from high level of subsistence-like

economies to specialized market economies with rapid urbanization require creation of new and transformation of

existing value chains within food supply, water and energy among others

Increasing demand from growing cities, and local

political recognition of the changing economic

environment leads to development of improved

business frameworks increasingly attractive to

foreign investments

Danish actors attracted to business opportunities in the

emerging economies with rich natural resources and a young work force – and Danish actors willing to

invest, provided risks can be minimized/shared.

Formation of investment-clusters in Denmark for

minimizing risks and optimizing project identification and

formulation. Clusters can include public and private

partners to improve business environment incl. social

dialogue and skills development.

More well-functioning value chains, more attractive

investment climate and more skilled labour paving the way

for sustainable, inclusive growth and poverty reduction.

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The Program is relevant, since it is coherent with priorities for Danish development cooperation

and reflects a particular decision of the Danish Government to allocate 55 million DKK to the

Programme as part of the 2015 Finance Bill.

The Program holds the potential of being effective and efficient in terms of meeting strategic and thematic objectives if the applicants prepare innovative project proposals clearly addressing the objectives and having a positive impact on framework conditions for doing business in developing countries. Consequently, it is important that the development engagements (projects based on agreements with applicants) are concise, that measurable outcomes are defined, cf. outcome indicators below. In addition, these may serve as a form for piloting for further development of future Danida business instruments as part of the new Innovative Platform for Partnerships. Paving the way for long lasting results ensures greater sustainability.

Project activities shall primarily take place in developing countries and be jointly planned and implemented through partnerships between a local partner (s) and representatives from various public and private actors from Denmark.

3.2 Programme objective

The overall objective of the Value chains and Vocational training facility is to contribute to inclusive green growth and broad-based income generation in developing countries, while the immediate objective is:

To foster collaboration including public-private partnerships to overcome obstacles in selected value chains with particular focus on increasing social and environmental sustainability of production, improving production methods, working environment and vocational training to generate sustainable value creation and a better business climate in developing countries.

Public-private collaboration may imply formation of clusters, hubs, joint design of vocational training or similar innovative approaches to bring expertise from both the public and private sector into play.

Partnership modalities

The following requirements regarding the applicants/partner organizations will be described in Guidelines for the Facility (to be downloaded from the Ministry of Foreign Affairs website):

All projects must be collaborative and driven by a demonstrated need in developing countries.

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Project proposals must reflect an interest and demand from the local partner(s) – be it business membership organisations, vocational training institutions, chambers of commerce and governments – to tap on a group/alliance of Danish partners’ expertise and experience in their efforts to improve, change or develop new initiatives to improve value chains and vocational training.

The Danish partner must consist of an alliance or group of minimum two organisations/institutions. Organisations with proven experience within social dialogue and/or engagement in vocational training or capacity building in developing countries may apply for support, and only organisations/institutions that have previously received public funds from Denmark for development work are eligible for support from this Facility.

At least one local partner must be identified from the outset to ensure local anchorage. The local partner (s) must demonstrate interest in and demand for assistance provided by the Danish group of partners.

One Danish organisation must pursue the role as lead partner and coordinating body on behalf of the entire group of applicants, including taking on the legal responsibility.

Outreach to or cooperation with additional relevant civil society actors, such as local authorities, think tanks, women network, research institutes or media as well as Danish or local companies may be included in a project. As long as it remains clear, which Danish and local organisations’ that are project owners and comprise the applicant group.

Development engagements, scope and strategic considerations

Granting support to a group of selected projects/development engagements holds the potential of complimenting other Danida engagements if the project is implemented in a priority country for Danish development assistance.

Project proposals may be directed at all developing countries included on the OECD-DAC list (at present has an income limit of 12.745 USD.) with a Danish presence. If a project implies several countries/a regional approach, it can include countries without Danish presence as long as the focal point country has Danish representation.

Applicants must explain how their project proposal complies with and support implementation of international standards and declarations, particularly UN Guiding Principles on Business and Human Rights, ILO Conventions and the Decent Work Agenda.

Applicants must consider and describe how their project overall, and if necessary broken down to underlying activities, addresses human rights and gender principles. In addition, applicants also have to justify if and how their foreseen activities may relate to environmental and climate change in light of questions included in the application form. Applications must clearly describe the project’s expected development impact in line with priorities for Danish Development Cooperation, and reflect awareness of the need for

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adaptation to local context including a risk assessment along the lines of the Danida Risk Framework (See Annex 3).

In light of consultations and identification of local needs, project applications addressing one or more of the following aspects are encouraged:

Establishment of networks/platforms/hubs to strengthen formulation of sustainable, innovative and “bankable” projects to strengthen value chain development in developing countries.

Fostering sustainable production and improved production methods in value chains - with particular attention on energy and natural resource consumption, water management and climate-smart technologies.

Establishment of “triple helix models” to strengthen collaboration between the public sector, training/research institutes and the labour market parties to strengthen curriculum, demand and supply of education. Could also imply efforts to increase collaboration on entrepreneurship and innovation at the institutional level.

Establishment of short-term or module-based vocational training programmes targeted workers in the formal or informal economy, for instance entrepreneurship courses and general knowledge about worker’s rights, CSR, environmental standards, labour market regulations etc.

Improvement of agricultural education and training programmes to provide present and future farmers with the right skills and knowledge to address challenges regarding natural resource management, food quality and food safety in the food production value chains.

Facilitating improved production technologies/processes and skills development in the textile industry with focus on workers safety.

Project applications reflecting a determination to take advantage of combining interests and strengths from both the public and private sector and introducing new or innovative approaches through collaboration and social dialogue will receive priority - as long as the suggested activities contribute to the objective of the facility.

An implementation period of maximum 3 years is foreseen necessary to catalyse solid results within one or more of the aspects listed above. In some cases, presenting an application as a pilot project may be justified in terms of addressing aspects that eventually could be brought to scale with the support of other Danida instruments or funds.

Engaging companies directly or indirectly may likely add value and strengthen CSR focus as part of social dialogue engagements. If so, activities must address or reach out to a group of

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companies within a value-chain or sector, and not just imply advisory support or training within one company.

From a business organisation/company perspective, the facility may pave the way for making it easier for Danish companies determined to do business in emerging markets in a responsible manner and respecting worker’s rights in compliance with International standards and principles to “walk the talk”.

Assessment of applications

Assessment of project applications will occur in light of five criteria, deriving from the

principles and requirements formulated in the Civil Society Strategy, also used for the CSR

Facility:

1. Assessment of the partnership

2. Assessment of target groups/participants and their relation to the intervention

3. Assessment of the intervention’s relevance, coherence and expected results

4. Assessment of the intervention’s phase-out and sustainability

5. Assessment of the intervention’s cost-effectiveness

See annex 7 for the detailed questions under each of the 5 criteria.

Indicators for each of the development engagements

Applicants will be requested to include concise and measurable output indicators in a template that will form part of the application form. In addition, outcome/impact indicators to be measured at end of the programme must also be included. Suggested output and outcome indicators will be subject to discussion with the applicant before final approval of applications by the Green Growth Department and commencement of development engagements.

Reference is made to the Danida Results Framework in Annex 2.

Monitoring mechanisms

The day to day monitoring is done by the partners. Lead partners must submit annual progress reports including reporting on output indicators and budget developments to GRV during the implementation phase. If deemed necessary, status meetings can in addition be organised to discuss progress and adjustments.

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With the expectation of granting support to a total of 6-10 projects within this program, and with an implementation phase of 2-3 years, the programme should undergo one mid-term review with visits to selected countries with projects.

Requirements on size of applications and budget

The programme budget is a total of 55 million DKK.

In the Guidelines for applicants, it will be made clear that projects are expected to have a duration of up to 3 years with budgets of up to app. 10 million DKK. Budgets closer to 10 million DKK are expected to reflect an engagement covering several countries and/or implemented by a large alliance of partners, while projects with a more narrow scope may require a much smaller budget but still be highly relevant.

In addition, it will be underlined in the Guidelines that Danish partner organisations with a framework financing agreement with Danida may also apply for project support, as long as scope/activities are different from those conducted under the framework agreement in force.

Summary of risk analysis and risk response to programmatic and institutional risk factors

With the decision to tap on Danish stakeholders expertise through a program with the Danish

partners being the main applicants, there remains an overall risk of initiating development

engagements which may not be as strongly in demand in developing countries as among

Danish stakeholders. Hence, it is of outmost importance that the Danish

embassy/representation in involved countries assists with the assessment of a project proposal

and in particular sheds light on potential contextual, programmatic or institutional risks.

When it comes to the risk assessment of the individual projects, the applicants will be

encouraged to consult the risk management matrix and include an assessment of risks in their

application. Lead partners will be encouraged to revisit the matrix regularly during

implementation.

It will be an important assessment criterion for projects appraisals that project objectives and

activities are realistic within the budget and timeframe applied for in order to minimize the risk

of not achieving the stated outputs and impact.

See the Risk Management Matrix in Annex 3.

3.3 Overview of management set-up at programme level:

Guidelines for project applications and corresponding application forms will be uploaded on

the MoFA website as soon as the Programme Document has been finalised and approved.

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Only one application on behalf of the group of partners will be accepted and subject to

assessment to keep administration as lean as possible.

The Green Growth Department (GRV) will be responsible for administration of the project portfolio, disbursements, monitoring and reporting. However, particularly during the initial assessment of project applications GRV will be dependent on advice from local representations regarding for instance choice of local partner’s, their capacity and reputation.

Submission of applications will be open until early August. GRV - with assistance from an

external consultant - will carry out appraisal of project proposals and present selected grant

proposals for the Internal Grant Committee in September, expecting to grant support by the

end of September 2015.

Any communication with GRV beyond submission of annual reporting must be through the

lead partner on behalf of the partnership. Grants will be disbursed annually to the lead partner,

who will be responsible for channelling money to partners according to approved budgets and

reporting.

When GRV receives progress reports, Representation in X country will again be consulted to

confirm or clarify aspects described. If deemed necessary a status meeting between the Danish

partners and GRV with input from Representation/attendance via video link can be organized.

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Annexes

Annex 1: Process Action Plan (PAP)

Time line

Action

Documentation

Responsible

August-October Initial hearing of embassies

and key stakeholders in

Denmark on demand for

new facility

Minutes from meetings and

VC’s

GRV (with assistance

from External

consultant)

Mid November

2014

Political agreement as part

of Finance Bill to launch a

pool of additional 55 mio.

DKK to promote Social

Dialogue focusing on

vocational training


from External

Consultant)

16 December

2014

Public meeting incl.

workshop with relevant

NGOs, organizations and

others interested in the new

Social Dialogue Facility

Minutes from the

workshop


from External

Consultant)

February 2015 Preparation for Programme

Committee meeting

Drafting of Concept Note

and Programme Document


from External

Consultant)

March 2015 Preparation of Guidelines Guidelines, administrative

guidelines, application

forms etc.


from External

Consultant)

March 2015 Programme Committee

(PC) Meeting 22 March

Concept Note incl.

Programme Document

GRV

April 2015 Finalization of Documents Address recommendations

from PC and public hearing

to formulate Final

Programme Document and

Guidelines

GRV

April 2015 The minister launches

Social Dialogue Facility

All documents for

applications uploaded on

GRV

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Time line

Action

Documentation

Responsible

Window 2 um.dk

Primo May 2015 Programme Document

with appropriation cover

sheet forwarded to KVA

Final Programme

Document, annexes and

additional documents

MFA/GRV (with

assistance from

External Consultant)

May-August

2015

Applications are received,

questions addressed and

appraisals carried out

Applications assessed GRV (with assistance

from External

Consultant)

Early September

2015

Presentation of selected

project proposals to the

Danida Internal Grant

Committee

Minutes from Grant

Committee Meeting

KVA and GRV

September 2015 Applications are informed

of approved or rejected

applications

Grant letters are submitted

to project owners, and

letters explaining rejections

send to other applicants

GRV

October 2015 Commitment in MFA’s

financial systems within

budgeted quarter.

First disbursements MFA/GRV

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Annex 2: Results Framework

FIGUR 3 FRA DANIDA RESULTS FRAMEWORK INDSÆTTES

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Annex 3: Assessment of Contextual, Programmatic and Institutional Risks

The table below serves to structure possible risk parameters and provides examples of risk outcomes in each of the three Core Risk Categories

for the Program. Thought examples are included as illustration. The table will be enclosed in an Annex to the Guidelines for applications for

support under the facility to guide applicants in assessing risks.

Contextual Risks

Risk Factor Likelihood Background to assessment of likelihood

Impact Background to assessment to potential impact

Risk response Combined residual risk

Pre-existing socio-political tensions.

Likely Restrictions on civil and political rights in Y country

Major All planning and economic activity hampered by unstable political situation

Danida will decline from prioritizing granting support under the facility to project in Y country, if other good applications have been submitted

Moderate

Programmatic Risks




Political developments in individual countries limits attention on vocational training.

Possible Foreign investors have pointed at the lack of local skilled workers to realize sustainable investments in agricultural sector in country X

Major Political or financial turbulence in a country will often have a major negative impact on the level of attention to invest in vocational training and innovative means to foster entrepreneurship.

Danish organizations in collaboration with a cluster of Danish agri-businesses takes action and initiate a project in collaboration with the local food production industry to identify training needs and obstacles in the supply chain

Minor

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Institutional Risks




Misuse, corruption and fraud by participating Danish and/or local partners

Likely According to International Transparency Index, corruption is widespread in most developing countries

Major Implementation of project interventions may be seriously damaged if funds are mismanaged

Denmark’s and IFU’s zero tolerance principle will apply and any mismanagement will be addressed

Minor

Cooperation with Danida / Danish labour market actors may not be of interest to local organizations/counterparts

likely No tradition in country X for structured dialogue between labour markets actors

Major

Without structured social dialogue, employees will not obtain better working conditions nor better wages. Important opportunities for attracting FDI to the country lost

Danish labour market actors try to join forces with other CSO’s than local Bus Organizations to foster social dialogue

Minor

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Annex 4: HRBA/Gender Screening Note

Basic info

Title Vocational training and value chains (Social Dialogue Window 2) Facility

Country/ region DAC countries with Danish Representation

Budget in DKK

mio.

55 mio DKK

Starting date and

duration

April 2015 – Implementation of projects commence in September 2015,

implementation period of 1-3 years.

Human Rights Based Approach

Assess whether a Human Rights (HR) Based Approach has been applied in the programme:

Human Rights Assessment and Standards

Issues: yes no Explain:

Have major HR analysis relevant for the country

been consulted (UPR, OHCHR, EU HR Strategy,

other relevant donor documents)

X Not applicable given the regional nature of the

facility as well as demand-driven modality.

Have key international HR standards and/or

mechanisms influenced choice and formulation of

outcome areas?

X UN, ILO and OECD conventions, declarations

and agreements, including Global Compact

Principles and the UN Guiding Principles on

Business and Human Rights.

Where relevant, is application at national level,

including major gaps between human rights in

principle vs. human rights in practice, evaluated and

identified?

X Not applicable at this stage due to the nature of the

facility

Are key recommendations from UPR for the

thematic programmes and from any treaty bodies,

special procedures, INGOs, HNRIs etc. that

require follow up at national level considered?

X Not applicable given the nature of the facility, but

when project applications are submitted and

country selections clear, then UPR

recommendations may be considered.

Are rights-holders identified? X Employees and employers in developing countries

Are duty-bearers identified? X Authorities responsible for enabling environment

for doing business and vocational training.

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Assess whether Human Rights Principles have been applied in the preparation and in the design of the programme?

Non-discrimination: Are any groups among rights-

holders excluded from access and influence in the

thematic programme areas identified?

X Applicants are encouraged to implement projects addressing promotion of gender equality, promotion of equal opportunity and prevention of discrimination.

Are disaggregated data available on most vulnerable

groups? X Not applicable at programme level given the nature

of the facility. If applicable, such issues will be

assessed at project level.

List any key support elements included to promote

non-discrimination X Danish Applicants are expected to use either UN

Global Compact self-assessment tool or ILO’s Decent Work Agenda, which includes an assessment of human rights including discrimination

Participation and inclusion: Are barriers for

participation, inclusion and empowerment of rights

holders identified?

X Not applicable at programme level given the

regional nature of the facility. If applicable, such

issues will be assessed at project level.


participation and inclusion X ILO Decent Work Agenda and The UN Global

Compact self-assessment tool

Transparency: Is the extent to which information is

accessible to rights holders including marginalised

groups assessed?

Where relevant, whether information is available in

other than official languages of the country in

question should be indicated.


regional nature of the facility. If applicable, such

issues will be assessed at project level.


transparency

Are key accountability mechanisms in the relevant

area – both horizontal and vertical listed? X Not applicable at programme level given the

regional nature of the facility.

Are obstacles, e.g. capacity and political-economy

incentives that duty-bearers and rights holders face

to exercise their obligations and rights listed?


regional nature of the facility.


accountability X The UN Global Compact self-assessment tool, see

below

Results/Indicators

List any indicators designed to monitor the

realisation of specific human rights X Applicants must use the UN Global Compact self-

assessment tool, which includes an assessment of

all human rights issues, core labour standards,

environmental issues and anti-corruption and select

those relevant for the particular project.

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List any indicators designed to monitor the

integration of the four principles X See above

List any key indicators chosen to track capacity of

key partners (both rights holders and duty bearers) X See above

Dialogue Partners

Define key dialogue partners (duty bearers) to be

addressed by the country programme Expected dialogue partners are local authorities,

trade unions, business organisations and private

companies in light of the application criteria.

Define key alliance partners, including other

likeminded donors, multilateral partners and CSO’s In light of the nature of the facility, key alliance

partners will be Danish CSO’s, labour market

parties and training institutes

State major dilemmas/risks associated with the

policy dialogue and proposed mitigation measures

(incl. reference to Framework for Risk Assessment)

In some countries, the willingness to promote

vocational training or efforts targeting the informal

sector can be low.

Gender Screening Tool

Are key challenges and opportunities for gender

equality identified? X Not applicable at programme level given the nature

of the facility, but addressing gender equality is very

likely subject to concrete actions in the projects that

will be supported. .

Are reference made to CEDAW-reporting, UPR,

and other relevant gender assessments? X

Identify opportunities/constraints for addressing

gender equality issues X The employment opportunities or constraints for

women varies depending on the project.

Describe key strategic interventions to promote

gender equality within each thematic programme? X Not applicable at programme level given the nature

of the facility.

Explain how gender specific purposes will be

reached, which strategic approach, what activities

are planned

X See above

Define expected outputs. X Not applicable. Expected outputs will be defined

for each project granted support along the line of

the objective of the facility.

Identify gender equality indicators aligned with X Not applicable. Equality indicators will be identified

if possible depending the scope of the projects

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national targets on gender if possible. granted support.

Annex 5: Climate Change and Green Growth Screening Note

Basic Information

Programme title: Social Dialogue Window 2 Facility

Country/region: Global (all DAC countries w DK Representation)

Estimated allocation: 55 mio DKK

Brief description of the Programme support:

Promotion of Social Dialogue, vocational training and value chains in developing countries

Dates (expected): Programme committee: End March.

External Grant Committee: September 2015

Climate change screening

Assess the status of policies and strategies to respond to climate change in the country and sector. If the issue is inadequately dealt with (indicated by a tick in the “no” box), please add comments and assess the potential impact on the program (see also “next steps” section, below).

Issue: Yes No Comments and further work to be done:

1. Are the processes and impacts of climate change documented (e.g. in national communications to the UNFCCC)?

x Not applicable at programme level given the regional and demand-driven nature of the Facility. Such issues will be assessed at project level if

applicable

2. Is there a national climate change policy or strategy, including estimates of the economic costs of adaptation?

x See above

3. Have nationally appropriate mitigation actions (NAMAs) and or Low Carbon Development Plans been identified (e.g. targets for renewable energy production)?

x See above

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4. Has a national adaptation programme of action (NAPA) been approved identifying key sectors where adaptation is required?

x See above

5. Are there effective and operational meteorological and disaster preparedness organizations?

x

Summarize the overall assessment of climate change impacts and responses:

The projects that will be granted support from the Facility are not expected to have any climate change impacts. However, if any of the proposed project activities appear to have the potential of a negative impact, assessment hereof must be carried out before granting support.

Screening of Country Green Growth Framework

Assess the status of policies and strategies for green growth and the procedures for environmental impact assessment in the country and sector. If an issue is inadequately dealt with (indicated by a tick in the “no” box), please add comments and indicate further work to be undertaken (see also “next steps” section, below).

Issue: Yes No Comments and further work to be done:

1. Do national procedures and legislation for Strategic Environmental Assessment (SEA) and Environmental Impact Assessment (EIA) exist?

x Not applicable at programme level given the regional and demand-driven nature of the Facility. Such issues will be assessed at project level if

applicable

2. Are there operational Green Growth Strategies/actions plans and/or National Environmental Action plans?

x See above

3. Are there regularly updated state of the environment reports and green growth monitoring systems with indicators?

x See above

4. Is there sufficient institutional and human capacity for green growth and environmental management in the sector concerned?

See above

Summarize the overall impression of the Country Green Growth Framework:

Not applicable at programme level given the regional and demand-driven nature of the Facility.

Climate change and Green Growth opportunities and risks of programme

Assess how climate change and environmental opportunities and risks will arise through the programme:

Will the programme ... Oppor-tunity:

Risk: None:

1. ... support green growth initiatives including livelihood improvements and resource efficiency

x

2. ... support the creation of decent and green job? x

25

3. ... contribute to effective management and efficient use of natural resources

x

4. ... have direct or indirect impact on climate change (e.g. through increasing or reducing emissions of greenhouse gases)?

x

x

5. ... have direct or indirect impact on occupational health and safety?

x

6. ... lead to changes in land and resource tenure and access rights, including the rights of indigenous peoples?

x x

7. ... include activities within or adjacent to protected or environmentally sensitive areas?

x x

8. ... have direct or indirect impact on the resilience of communities in the face of natural disasters?

x

Summarize and explain climate change and green growth opportunities:

Projects related to vocational training and value chains holds the potential of providing opportunities for greener and inclusive growth. OHS standards are relevant as part of improving vocational training, and reducing bottlenecks in value chains can be done with a view to addressing climate change. Hence, attention to the linkage between suggested activities and their contribution to ensuring green growth rather than environmental degradation will be prioritized during assessment of applications.

Summarize and explain climate change and green growth risks:

Again, if individual projects include issues related to environmental sensitive areas and issues in relation to indigenous people, project applications will be assessed in accordance with international guidelines.

Identify requirements for undertaking an Environmental Impact Assessment (EIA). Categories are: [ A ] Full EIA required; [ B ] Partial EIA required; [ C ] No EIA required2. Intervention Name Category A, B or C:

1: Select category:

2: Select category:

3: Select category:

Not applicable, see above. Will national regulations and procedures for EIA be applicable to activities of the programme that have potential environmental impacts? – Yes - No X

Next Steps – process action plan

Need for further work during the preparation, appraisal and implementation of the programme

2 Category A = Intervention is likely to have adverse environmental impacts that may be sensitive, irreversible, and significant in scale/scope; B = Intervention is likely to have negative impacts, but which are less significant, not as sensitive, numerous, major or diverse; C = The environmental risk of the intervention are of little or no concern.

26

arising from the climate change and green growth screening: Suggested activity: Action needed Comments and elaboration:

1. Assessment of green growth and climate change opportunities in sector development plan.

Not applicable

2. Assessment of capacity for green growth and climate change management in the sector/country.

Not applicable

3. Prepare ToR for and conduct Country Analytical Work.

Not applicable

4. Prepare ToR for and conduct SEA(s) of sector policies or plans.

Not applicable

5. Prepare ToR for and conduct EIA(s) for programme interventions.

Not applicable

6. Initiate donor harmonisation in the sector on green growth and climate change.

Not applicable

7. Other...?

Signature of Screening Note

Place and date ………………………………………………………. (name) Danish Mission in

27

Annex 6: Assessment according to the budget support principles

This annex is not applicable for the Facility

28

Annex 7: Assessment criteria applications

All applications submitted to the Facility are subject to a combined assessment based on the following

five criteria:

1. Assessment of the partnership

2. Assessment of target groups/participants and their relation to the intervention

3. Assessment of the intervention’s relevance, coherence and expected results

4. Assessment of the intervention’s phase-out and sustainability

5. Assessment of the intervention’s cost- effectiveness

The five assessment criteria described below, all derive from the principles and requirements

formulated in the Civil Society Strategy and “General Principles Governing Support to Development

Activities Implemented by NGOs”.

1. ASSESSMENT OF THE PARTNERSHIP

1.1.As regards the Danish (lead) organisation and other participant Danish organisations:

o Popular foundation, i.e. roots in the Danish population.

o Transparent and democratic structure, which makes it possible both for members/contributors and

for donors to hold the organisation to account.

o Experience of and insights into the country (or countries) concerned, the theme addressed, the target

groups and the issues raised by the intervention.

o Relevant professional and organisational capacity, as well as previous project experience supported by

the Civil Society Fund, Mini Programmes, Danida, EU, large foundations with reporting requirements

or similar documented experience. o The organisation’s professional and organisational contribution to

the partners and the intervention.

o Consistency with the organisation’s other development work, combined portfolio and possible

strategies.

o The track record: how did the previous interventions on fostering social dialogue turn out? How were

they monitored and reported upon?

1.2. As regards the (lead) partner organisation and other participant organisations in the South:

o Local ownership and popular foundation, i.e. constituency.

29

o Legitimacy in relation to the participants and target groups, as well as to address the issues and

represent the interests to which the organisation is dedicated.

o Transparent structure, which makes it possible for members, target groups and donors to hold the

organisation to account.

o Experience of and insights into the context and the issues raised by the intervention. The project’s

consistency with the organisations’ other work.

o The local partner organisation’s relation to the target groups/participants.

o Relevant professional, organisational and administrative capacity, as well as previous project

experience in view of the intervention’s contents and objectives, its scale and annual turnover.

o Networking and cooperative relations with, for instance, authorities, other local, national or

international organisations, as well as other donors and sources of finance.

1.3. As regards the cooperative relationship between the Danish organisation and the local partner

organisations/networks/alliances:

o Clarity in the definition of each organisation’s contributions, roles and areas of responsibility.

o Local partners/participants playing an active role in the formulation of the intervention and its

objectives.

o Local partners/participants being at the heart of the intervention and responsible for implementation.

o Plan for monitoring, evaluation, reporting, and prevention of corruption and fraud.

o Potential for partnership development, including an account of how the partners/participants and

their relationship will progress as a result of the activities to be implemented.

2. ASSESSMENT OF TARGET GROUPS/PARTICIPANTS AND THEIR RELATION TO THE

INTERVENTION

o The match between the participants/target groups and the intervention’s issues and objectives.

o The number of people and composition of participants/target groups in view of the intervention’s

scope, objectives and focus on poverty reduction.

o Involvement of related participants/target groups in the formulation of the intervention’s contents

and objectives, as well their role in its implementation.

o The degree of ownership of the intervention by related target groups/participants and/or the focus

on related target groups in the intervention’s outputs.

30

3. ASSESSMENT OF THE INTERVENTION’S RELEVANCE, COHERENCE AND

EXPECTED RESULTS

3.1. Relevance:

o Does the intervention focus on overall objective of contributing to inclusive growth and employment

in developing countries?

o Does the intervention empower poor and vulnerable groups and improve their conditions in the long

run?

o Is the intervention relevant in view of the context and problem area?

o Has the intervention been conceived in tandem with the Danish organisations’ work in Denmark, EU

or internationally?

3.2. Coherence and results:

o A well-crafted strategy based on knowledge of the context.

o Coherence between objectives, activities, outputs and problems that the intervention is intended to

address.

o Clear and measurable indicators of progress towards the intervention’s objectives.

o Making the case that the intervention is likely to achieve its objectives.

o An account of the assumptions underlying the intervention design as well as the risk factors that may

jeopardise its success

o Plan for monitoring, evaluation and systematisation of experiences.

ASSESSMENT OF THE INTERVENTION’S PHASE-OUT AND SUSTAINABILITY

o A phase-out plan which ensures that the local partner organisations or target groups are not left in an

unfortunate position of dependency when the intervention period expires.

o Reflections on the intervention’s sustainability (e.g. politically, organisationally, socially, technically,

financially and/or environmentally) in view of its own objectives.

o Has the case been made that the intervention is likely to lead to lasting improvements of participants’

and target groups’ living conditions and/or local partner organisations’ capacity, which can be sustained

after the implementation period has expired?

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o Will the intervention’s results/improvements continue to spread to other target groups or partners?

ASSESSMENT OF THE INTERVENTION’S COST- EFFECTIVENESS

o Costs of administration, travel and salaries suit the needs and characteristics of the intervention.

o The relation between the outputs of the intervention, the scale of activities, the number of

participants or members of the target group, and the total budget.

o A realistic cost level in view of the context of the intervention, not least if local partner organisations

are to cover future expenses themselves in part or in full.

o Expenses allocated to wages to Danish partners in view of the intervention’s contents and objectives.

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