Building Sustainable Capacity to Promote Accountability & Integrity in Public Spending: The Experiences of ACBF Presentation by: Dr. Frannie Léautier Executive Secretary April 8, 2010 Johannesburg, South Africa

Outline What is the ACBF? ACBF approach to building capacity ACBF lessons learned in accountability and transparency at the regional, country, and organizational level ACBF instruments for building capacity Conclusions 2

Institutional Profile of ACBF MANDATE Promotion of capacity development & utilization; coordination of capacity building interventions; handling effects of brain drain; mobilization of financial and technical resources for capacity development and knowledge sharing VISION To become the premier institution for capacity development and good governance in Africa. MISSION Sustainable development of human and institutional capacity for poverty reduction in Africa. OBJECTIVES Develop a cadre of decision-makers to undertake strategic decisions on policies and implementation in development. Establish partnerships between Africa and its development partners. Share knowledge and experiences in capacity development. FOUNDATION As a response to human and institutional capacity shortages in Africa. 3

ACBF Membership 3 founding institutions: –AfDB –World Bank –UNDP IMF 45 African and non-African countries Honorary Member: AU 4

Governance Structure Board of Governors –3 founding institutions –Finance Ministries of African members –Representatives of bilateral non-African members Executive Board –11 members: 3 representatives of founding institutions –5 African and 3 non African members selected on the basis of their expertise Secretariat –Executive Secretary 5

Role of ACBF Autonomous NGO with Africans as full partners to the development of capacities needed for policy analysis and economic management Responsibility for developing and coordinating processes that lead to capacity in the countries Capacity to select and fund activities and institutions to deliver critical capacities Ability to network existing entities including economic and research entities as well as governments to achieve results in capacity Mobilizing funding and technical resources and managing its own projects and programs in the critical areas of capacity needed for Africa’s development Broad mandate, embedded in the constitution of ACBF, giving it wide reach and arena for action 6

Outline What is the ACBF? ACBF approach to building capacity ACBF lessons learned in accountability and transparency at the regional, country, and organizational level ACBF instruments for building capacity Conclusions 7

Nature of Capacity Development Complexity and change: seeking long- term shifts in behavior and skills, attitudes and motivations, processes and practices, rules and norms both formal and informal Interactions: adjustments to accommodate how people interact with each other, technology and change Context: depends on starting points and is impacted by history and aspirations and expectations 8

ACBF’s Emerging Models for Capacity Development 1.Startup Capital at Strategic Entry Point 2.Networking to Scale 3.Patient Capital for Success 4.Supporting Dynamic Oversight Entities 5.Partnerships for Learning and Analysi s 9

Start-up Capital at Strategic Entry Point Start-up Capital at Strategic Entry Point Role of other Partners HI LO HI PILOT BROKER INNOVATE ACBF effort (US$ in country or theme ) Multidonor Regional Economic Communities Capacity Building Initiative Publication of book “Survey of the Capacity Needs of Africa’s Regional Economic Communities” SADC-PF Demand by Heads of States and Multilaterals 10

Networking to Scale Role of other Partners HI LO HI BROKER INNOVATE ACBF effort (US$ in country or theme) Organizational: networking of African Policy Institutes Into a Forum Individual: Technical Advisory Panels and Networks Country: Country level knowledge networks Regional: Network of Regional Entities PRMP-UEMOA; EALA Institutional: Pan African Parliament network 11

Patient Capital for Success Role of other Partners HI LO HI PILOT BROKER INNOVATE ACBF effort (US$ in country or theme) Organizational: EPRC in Uganda with 16 years of ACBF support Individual: EPM with 15,000 people over 17 years (PhD, MA, PGD); CESAG; IEF-POLE 12

Supporting Dynamic Oversight Entities Role of other Partners HI LO HI PILOT PARTNER INNOVATE ACBF effort (US$ in country or theme) ACBF grant to PARP (10%) with Government of Nigeria providing (90%) with support on training and design of the program; PRECAN-BF; CAPAN-Benin Outcomes Individuals: 98% trainees with high level of skills, attitudes, behaviors and performance Organization: improvement in effectiveness of the National Assembly Institution: increased transparency and accountability--more visibility and accessibility to the public 13

Partnerships for Policy Analysis & Learning Role of other Partners HI LO HI PILOT BROKER INNOVATE ACBF effort (US$ in country or theme) ACBF grant to REPAC in Central Africa Other donors finance EDRI in 2009: UNDP, IFPRI, Japan, Götenburg University, Think Tank Initiative 14

Outline What is the ACBF? ACBF approach to building capacity ACBF lessons learned in accountability and transparency at the regional, country, and organizational level ACBF instruments for building capacity Conclusions 15

Commitments: pattern by core competency shows introduction of FMA, PVP, SPA, and SMS areas of support, all contributing to accountability & transparency 16

Commitments: Government Effectiveness Gradual shift away from policy analysis and management; Visible peak in activities supporting economic policy in 2006 Investments in strengthening public administration Visible peak in public admin focus in 2004 Source: ACBF Portfolio Data,

Commitments: Accountability & Transparency Significant effort in improving financial management & accountability Growing role in supporting enhancement & monitoring of national statistics Beginning attention to creating demand for accountability & transparency Source: Data from Strategic Medium Term Plan

Commitments: Dialogue & Participation Attention in building the capacity of national parliaments for policy analysis Investments in professionalizing voices of the private sector and civil society Source: ACBF Portfolio Data,

Performance of FMA Portfolio (US$ 36.2 million of grants) 20

Challenges of Implementing FMA Projects at the Country Level 21

Performance of Parliamentary Strengthening Portfolio (US$ 15.9 million in grants) 22

Challenges of Implementing Parliamentary Strengthening Projects at the Country Level 23

ACBF Management Action Plan An example of transformation at the organizational level to strengthen fiduciary compliance and reforms

Outline Content: What does the Management Action Plan consist of? Process: How is the Management Action Plan being executed? Performance: How do we track implementation of the MAP? 25

Content: Areas of attention Risks and Controls Governance StrategyOperationsCommunicationPeopleFinancesICT 26 Outside-In Inside-Out

Process: How is the MAP being implemented? 27 Eight Internal Teams Four Consultants as Mentors Internal Capacity

WHY USE INTERNAL TEAMS? WHY CHART PROGRESS VISIBLY? When you want to foster more responsible behavior in people, you can’t just legislate more rules and regulations, you have to enlist and inspire people in a set of values. People need to be governed both from the outside (Corporate Governance) through compliance with rules, and from the inside (Management) inspired by shared values. Pointing out non-performance and following up thoroughly is important to send signals that drive internal change. 28

Tracking Progress of the Management Action Plan: High Level Tracking CompleteOngoingNot Due 29

30 Example: Progress in Risks and Controls

Risks and control: Secure treasury and finance functions Change Bank Account Signatories Ascertain status of key accounts Reconcile balances in key accounts Put in place risk management for cash transactions Close all inactive accounts %0%

Overall Progress in MAP by February 15,

MAP Progress per Quarter July February “Buy-in” “Learning” “Results”

Independent Verification of Progress A planning tool for incorporating sub- results by indicator and team targets An Action Matrix by key result areas, with performance indicators, baselines, targets, and risks A tracking tool by key performance areas and strategic objectives, including the delivery accountability by lead department or network responsible 34

Outline What is the ACBF? ACBF approach to building capacity ACBF lessons learned in accountability and transparency at the regional, country, and organizational level ACBF instruments for building capacity Conclusions 35

ACBF Products and Services Grant Making Upstream Capacity Development Assessment Technical Advisory Services Knowledge Management and Knowledge Networks Skills Development Services 36

Outline What is the ACBF? ACBF approach to building capacity ACBF lessons learned in accountability and transparency at the regional, country, and organizational level ACBF instruments for building capacity Conclusions 37

In conclusion Building capacity to ensure public finances are efficiently spent is the Achilles heel of sustainable development Entry points can be at the regional, country, or organizational level Ability to measure, monitor, and track where you are is essential to ensure sustainable results are achieved 38