International Aid Systems-Saasa Features and Performance of Local Aid Systems Oliver S. Saasa Professor of International Economic Relations Premier Consult 19 February 2019 International Aid Systems-Saasa

Main Challenges in local Aid Systems In the Recipient Government Camp Generally unsupportive policy environment Institutional and structural challenges Human resource challenges The Aid Relationship: Local Ownership challenges 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa In the Donor Camp Disjointed/uncoordinated effort (disharmony) Unpredictability of aid flows (volume & timing) Setting up of parallel structures Diversity of aid disbursement mechanisms Diversity in, and unrealism of monitoring and reporting systems Predetermined Technical Assistance component 19 February 2019 International Aid Systems-Saasa

Recipient Government Camp 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa Generally unsupportive policy environment The fight against poverty should be at the centre of development co-operation Aid policies should, therefore, revolve around countries’ determination to reduce poverty and vulnerability. Interventions should be guided by the comprehensive framework for pro-poor growth and poverty reduction in the context of PRSP & MDGs 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa All external resources should be integrated into the Government budget align timing of donor pledges to the budget and planning cycles ensure that all aid is included in the country’s financing framework (MTEF) Donors are expected to provide relevant and timely information on commitments and disbursements in order to ensure the predictability of aid flows Need for multi-year financial commitments 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa Institutional and structural challenges Capacity building as an integral part of external Assistance Setting up of an aid management structure that harmonises the inputs from donors and among the various players within the recipient government system Support the training of the requisite personnel Agreement on support towards the development and operationalisation of Poverty Monitoring and Analysis focusing on the surveillance of outcomes and impact 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa Strengthen policy-relevant management information systems to secure data integrity in planning, budgeting and financial reporting Strengthen information and data generation capacity so that accurate, reliable, timely, and user-friendly data is readily available. 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa The Aid Relationship: Local Ownership challenges weak involvement of governments during donors’ preparation of their respective country support programmes 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa Local ownership matters Avoid the inclination towards project-by-project approach in order to fly the flag 19 February 2019 International Aid Systems-Saasa

Good Financial Governance Governments to support an effective and well-supported auditing function to ensure efficient & accountable resource use Donors’ procurements to be aligned to the principles and procedures outlined in recipient government procurement systems 19 February 2019 International Aid Systems-Saasa

Dialogue and Coordination Framework Recipient governments should be allowed to facilitate effective multi-level dialogue architecture under their leadership 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa Main Messages from this… Dialogue presupposes equal partners There must be commonality of purpose (Common Agenda) There must be commonality of Voice when dealing with third parties 19 February 2019 International Aid Systems-Saasa

There is need to agree on the process of dialogue… Need to revisit the existing systems and mechanisms of dialogue For donors, their involvement in the operations of recipient governments should exclude direct interventions in policy making but confined only to financial resource injection; policy dialogue; technical assistance/human resource development; capacity strengthening in monitoring and evaluation; and sharing innovative experiences in implementation modalities learnt elsewhere. Eliminate micro-managing 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa Listen carefully to what seems to annoy the government Possible areas: TAs Dialogue attitude Too many conditionalities Jumping the gun: offering solutions prematurely 19 February 2019 International Aid Systems-Saasa

But remember: Simplicity does it 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa Donor Camp 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa Disjointed/uncoordinated effort (disharmony) Harmony required among donors but: HQ rules and procedures are still restrictive Aid management structures are still very much still in project-by-project mode Some major aid players are outside the harmonisation mode Diversity of aid disbursement mechanisms 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa Diversity in, and unrealism of monitoring and reporting systems Project and financial reporting and monitoring systems are generally not country owned and led with respect to procedures, processes, timing, and content of what is reported and monitored 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa donors should assume less leadership responsibility regarding the procedures, processes, timing, and content of what is reported and monitored. 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa The multiplicity of donor financial and reporting and accounting systems confusing recipient governments’ accounting system, thus, threatening the potential for smooth MTEF functioning 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa Donors should not attempt to monitor the system beyond your capacity and competency Avoid setting up highly complex implementation and monitoring/reporting systems (simplicity does it) Remember that there is more value added in monitoring impact than financial systems of accounting 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa Predetermined Technical Assistance component The Harmonisation Agenda should more carefully redefine the TA purpose and improve the design, context, selection and mode of provision so as to maximize the benefit from it TA should be used to complement, rather than displace, local capacities 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa TA should be integrated into the national framework of management & experts ought to be accountable to local institutions and integrated into recipient country’s planning, budgeting, and human resource development systems 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa Recipient governments should work towards ensuring that TAs are answerable to national systems and integrated into their planning and budgeting system. deployed on-budget 19 February 2019 International Aid Systems-Saasa

International Aid Systems-Saasa Thank you 19 February 2019 International Aid Systems-Saasa