EuropeAid ENGAGING STRATEGICALLY WITH NON-STATE ACTORS IN NEW AID MODALITIES Workshop 18/05/2011 Budapest, May 2011

EuropeAid Purpose of this workshop  Short presentation of the topic illustrated with cases  Key issues  “Why” it is relevant to focus on strategic engagement with NSAs when applying modalities such as “budget support” and SPSP ? Feed back from the internal seminar held in Brussels (11 May)  Added value and challenges for NSA (panel)

EuropeAid Short presentation of the topic illustrated by cases Key question it seeks to answer: How can the EC o engage strategically and operationally o with both the state and non-state actors o on various development related issues o Namely when it provides “budget support” o or engages in “sector policy support programmes” So called “New Aid Modalities”

EuropeAid DOMAINCOUNTRY Education- literacy Policy Morocco/Ecuador Service deliveryEthiopia General Budget Support Ghana HealthIndia JusticeSouth Africa Natural resources and environment Ghana

EuropeAid Ghana (1) General Budget Support Financial mechanism: multi donor funding Objectives: o Improve national Planning o Area of accounting for public expenditure Discussed and agreed with the Government Foreseen in Country Strategic Paper Roles for NSA: monitoring, policy dialogue, advocacy 5

EuropeAid Ghana (2) “Ghana Accountability and Responsiveness Initiative” Funding: pool funding (multi donor) to NSA Objectives: Support Domestic accountability System (NSAs + Parliament) Missions: o Capacity development in Public Development o Addressing Internal Governance o Improve national and local authorities - Formal and informal NSAs relations NSAs role: o National level: BS review, Ministerial performance review, Mid-term development Planning etc. 6

EuropeAid Ghana (3) Local level: Social accountability local/district level Issues: o Harmonization and alignment o Openness of Ghanaian Govt to work with NSAs and added-value o Gradual building up of Donors-Govt-NSAs relationship o Improved & transparent Policy dialogue o Understanding of local dynamics Challenges: o Danger of overloading NSAs and limited capacities 7

EuropeAid Ecuador (1) Sectoral Budget Support to Ecuadorian national Education plan Funding: EU Objectives: In the short term: – Reinforce Country M&E systems – Reinforce Constitution implementation: Citizens participation in national policies And in the long run: – establish relationship between public and private sector based on trust – Promote result oriented and domestic accountability 8

EuropeAid Ecuador (2) KEY FEATURES Mapping of actors and roles  Added-value EC negotiated with the State the involvement of NSAs at early stage Related indicators to performance of both Govt & NSAs Negotiated to put aside part of SBS to support NSAs Call for proposals (restricted/targeted) managed by DEL but transparent with Govt. 9

EuropeAid Ecuador (3) Key factors: – Transparency of the process by informing actors involved directly and indirectly – EC as a “facilitator” – Staff from different sections working together – Promoting Civic engagement, use of new technologies Key Challenges: – Collaboration not free of tensions managed by recognition of added value – Sustainability beyond project/call for proposals 10

EuropeAid Ethiopia (1) Context of crise: donors decided suspend Budget Support Concerns of possible impact on the progress at decentralized level Programme Budget Support: to ensure and expand service delivery at local level Increased resources to regional and district levels Aim: Improve allocation and expenditure of public resources Identified wide range of NSAs, roles, strengths and weaknesses 11

EuropeAid Ethiopia (2) Social accountability component: Community Score Cards, Citizen report cards and participatory budgeting Financial mechanism: Separate window of PBS managed by aid agency and tripartite steering committee: donors+Govt Key features: o Flexibility financial mechanism to difficult contexts o not prevented to involve NSAs and state-society dialogue o Open to engage non-traditional NSAs 12

EuropeAid Various EC/EU policies or agendas are concerned 1. Making aid more effective 3. Improving knowledge of state-society relations 2. Making aid more participatory 13

EuropeAid 14 Making aid more effective Donors (incl. EC) look for ways to make their aid more “effective” These efforts include among other things ways to: o Align behind country policies (if these reduce poverty) o Align behind country systems (if there are serious efforts to make these systems work “for the poor”) o Reduce the burden on partners (through harmonization) o Move from government ownership to country ownership o Improve domestic accountability

EuropeAid Participatory development Participatory development Development assistance includes support to and through NSAs Involving NSA contributes to strengthen domestic accountability Development is a multi- stakeholder/multi actor process where the central state is one of the actors NSAs are not only implementing agencies but also promoters of democracy, justice and human rights EU is committed to support NSAs to fully participate in political, economic and social dialogue processes (mainstreaming of NSA participation) Civil Society is recognized in all its diversity (concept of non state actors) Participatory development and Non-State Actors

EuropeAid Obstacles to overcome in the partner countries ? Political commitment behind pro-poor policies? Does civil society have the capacities/interest to engage with the state? Is there an enabling environment for Non-State Actors to participate? Is the budget transparent? Does it reflect priorities? Is it credible Is there an open and transparent dialogue with NSAs? Do parliamentarians respond to demands from citizens?

EuropeAid Donors (incl. EU) and NSA must be flexible and play new roles ? Strong political commitment behind declarations Is the civil society enabled to engage with the state through the PCM ? Is there an enabling environment for Non-State Actors to participate? Coordination and Harmonisation amongst donors Deeper and objective knowledge of NSA/CSOs Prepared to play a facilitation role

EuropeAid Improving knowledge of state-society relations Two more P-words matter for understanding failures in making aid more effective and participatory: POWER and POLITICS What affects the opportunities for NSAs to participate? What are the relations between state and society? Who holds power over whom? Who exerts pressure on whom? Who influences whom? With what means? What are the resources, and how are these distributed? What are incentives? Why is it difficult for citizens to work collectively? What is the history? The history of struggle? The history of social or other movements? The history of repression? Page 18

EuropeAid 19 This perspective is closely supported by a “political economy” approach It is country or context specific o If and how state-society bargaining takes place o Whether, how and around which interests citizens organize collectively o How elites reach political settlements, for example over taxes, or over the distribution of resources such as aid o Who in and outside government backs poverty reduction strategies and sector policies o And whether there is a credible budget to cover the cost.

What is the basic perspective of the “new” approach ? NSAs are full fledge actors Analyze state- society relations systematically Explore full potential within and beyond NAM Prepared to play new roles

Ensure the independence of NSAs Assess and analyze NSA interests, values, histories, incentives, roles, functions, governance structures Assess and analyze NSA interests, values, histories, incentives, roles, functions, governance structures Recognize the diversity of NSAs Treat NSAs as Actors

Introduce systematically “political economy” and “governance” analysis Introduce systematically “political economy” and “governance” analysis Use several analytical tools to know the CSOs (mapping, sectoral studies) Analyze state- society relations systematical ly

Assess opportunities and necessities to engage with NSAs outside of the context of new aid modalities Balance support for state and non- state actors in a purposeful way Balance support for state and non- state actors in a purposeful way Combine the full range of modalities and instruments in a strategic way Apply the principle of ‘sequencing’ of support to NSAs in the context of NAMs Explore and support the full potential of NSA involvement in and beyond NAM

EC and NSA prepared for playing new roles ?. EC and NSA prepared for playing new roles ?. Systematically apply a ‘political economy’ system Avoid a ‘technocratic’ approach to aid effectiveness Donors prepared to play new roles

EuropeAid The Approach Tools and guidance Treat NSAs as actors  Mapping methodology  Governance Analysis Framework  RD: Methodological tool 1, 2, 6 Analyze state-society relations systematically  Governance Analysis Framework  RD: Methodological tool 4 Explore and support the full potential of NSAs involvement in and beyond NAM  RD: Key questions to be posed throughout the policy cycle (chapter 4.3)  RD: Methodological tool 1  RD: Dialogue with NSAs, capacity development, combining tools, instruments and approaches (chapter 4.4) Do no Harm-be prepared for new roles  RD: EC new roles (chapter 6)  RD: Methodological tool 5, 6, 7 Tools and guidance 25

EuropeAid Main outcomes of internal seminar (1) Relevance to our framework: In certain sectors (e.g. rural development and agriculture), NSAs are more present than the state. Essential role to play In domestic accountability, NSAs are key actors, together with Parliaments and oversight institutions In analyzing political economy of a country, NSAs have to be among the key stakeholders to assess (roles, dynamics, etc) Since BS and NAMs at large build upon ownership failure of the past decades, NSAs/civil society must be included

EuropeAid Main outcomes of internal seminar (2) Key challenges: Difficulty to engage with civil society in a genuine/meaningful way (additional workload) Tend to focus on capital based NGOs Difficulty to engage with CSOs which are not the vocal ones Need for a structured CS Felt as a political support by partner country’s authorities Different approaches/sensitivities among donors

EuropeAid Questions for the panel 1.Do the participants to the panel welcome the idea of NSAs playing an active role in BS and SPSP ? Relevance and added value ? 2.Do the participants to the panel consider that this approach should be pushed forward in the follow up of the structured dialogue ? (new challenges) 3.What is required from the NSAs and from the Commission to push such process (enabling environment, capacity development ? Specific role of “Northern” NSAs?)