Politics and Processes of preparing National Plans and Budgets to achieve the MDGs Learning Event for members of the Policy Network on the MDGs July 19 – Rome Angela Farhat

Processes of preparing National Plans and Budgets National Planning Framework (PRS) Process Conceptualisation/Situation analysis Sectoral/thematic identification of policies and actions Harmonisation, sector prioritisation Consultations – CSOs, MDAs, regional & district. And for for Parliament, Ministers, Cabinet, Council of State Final Consensus-building & Finalisation Presentation to Cabinet Presentation to Parliament Budgeting & Implementation

Situation Analysis Review of existing survey data (review of variety of indices); trend analysis of poverty Participatory poverty assessments Poverty mapping: by geography, income group, gender, etc. Sectoral studies Analysis of economic performance

Situation Analysis (contd) Analysis of human development dimensions of poverty: health, education, protection, water, sanitation, HIV/AIDS, governance, etc. Ends with key problems to address over a specified time period MDG needs assessment currently being introduced/expanded Parallel to PRS process in some countries

Prioritisation Considerations for the macro framework MTEF process, i.e. two steps: strategic planning by sectors and costing of strategic plans MDBS process – number of countries involved is on the increase; a reality for donor consensus on priorities, increased aid predictability and coordination

MDBS process MDBS group: group of donors that have agreed to provide budget support to implement PRS Non MDBS partners are observers Coordinated closely with World Banks PRSC; common policy matrix in some countries; also coordinated with IMFs PRGF in some countries Process involves: Design and populating a policy matrix – jointly by government and partners Negotiating the content and measurement Appraisal and review

MTEF/Annual Budget Process 1. Technical committee for the national budget. Assess progress with achieving targets using PRS Annual Progress Report 2. Training of sector budget staff on details of APR 3. Submission of Budget numbers to Cabinet, issue of Budget Guidelines 4. MTEF meeting (Policy Review Workshop) with all sector MDAs on PRS priorities and progress with meeting targets. (MDAs assess policies and determine extent of policies helping meet national targets) - Output - Policy Review Report, sent to the MOFEP. 5. Intra sectoral meetings – to determine areas of collaboration, areas of conflicting activity and areas of duplication between MDAs on attaining the objectives and targets set for the period. 6. Strategic Planning and costing workshop 7. Submission to MOFEP/Budget Hearings/Cabinet/Parliament

Participation of Development Partners PRS preparation Budget – MDBS, PRSC, PRGF, etc. Development Financing (PAF devt, Reviews and Appraisal) Monitoring (PAF, Sector Working Groups, Lobbies/pressure groups

Negotiating Priorities & Trade-offs When? (at what stages of process for most effective impact) Who does the negotiating? Technical & Political actors What do we trade? – technical and political considerations (including timing for reforms, timetables for political democracy Adapting international targets to local conditions

Challenges in Preparation of MDG-based PRS Harmonisation of party manifesto for national devt with MDGs philosophy Reflecting MDGs in PRS plan and budget – which of three scenarios to pursue: Needs Assessment (All resources required to achieve MDGs - no prioritization) Resource availability + absorptive capacity Expanded scenario – sourcing funds (open market, G8 0.7% ODA etc.), using statutory funds such as GETFUND, using NHIS etc. (more room for strategic planning) Broadening the ownership of MDGs across Governments – national and local – getting MDG targets broadly in line with national aspirations

Enhanced Role of UN Country Teams Advocacy DP processes/meetings Joint Government/DP processes (e.g. CG, MDBS reviews, preparation of Country Strategies etc.) Lobby/pressure groups Resources in Budget Support to have voice Catalytic interventions to kick-start Government action Also, does UNCT desire a role at each of the stages: Situation analysis/needs assessment? Prioritisation – scenario setting, MDBS, MTEF? Monitoring? Etc.??

Concluding questions 1. Is an intensive and (often unmatched skills availability based) needs assessment relevant for an expanded scenario? 2. In what ways can the UNCT support the processes of prioritisation? 3. How will the UNCT buy into strategic planning (after PRS is out)? 4. How can the MDGs be localised?