Ministry of Finance and Economic Planning Joint Approaches to CD – Lessons Learnt and Way Forward in Ghana Mr. Ernest Prempeh- Ministry of Finance and Econ. Planning, Ghana Mr. Kristian Lempa - GTZ Revenue Mobilization Support, Ghana Learning Network on Capacity Development LenCD FORUM Addressing the Paris Declaration Collective Responsibility for Capacity Development: What Works, and What Doesn’t? Working Group 4 (Oct. 3 rd ): Pursuing Joint Approaches to CD at the National Level

Structure 1.The New TA Approach 3.Best Practice: PPME 4.Lessons Learnt and Way Forward 2.Ghana 2006 Survey: Results

Structure 1.The New TA Approach 4.Lessons Learnt and Way Forward 2.Ghana 2006 Survey: Results 3.Best Practice: PPME

1.The New TA Approach Definition Problems: A. Capacity Development B. Harmonized TC Definition Problems: A. Capacity Development B. Harmonized TC

1.A. Definition: CD Differentiation: Capacity Development: a process whereby people, organizations & society as a whole unleash, strengthen, create, adapt & maintain already existing capacity over time Capacity building Capacity building: a process starting with a plain surface and involving the step-by-step erection of a new structure, based on preconceived designs

1.A. Definition: CD More than Human Resources and Institution Building: Capacity – “the ability to perform functions, solve problems, and set and achieve objectives” (UNDP 2002) More than Human Resources and Institution Building: Capacity – “the ability to perform functions, solve problems, and set and achieve objectives” (UNDP 2002)

1.A. Definition: CD More than Human Resources and Institution Building: Capacity Development – “(…) the process of strengthening the abilities or capacities of individuals, organisations and societies to make effective and efficient use of resources, in order to achieve their own goals on a sustainable basis.” (GTZ 2003) More than Human Resources and Institution Building: Capacity Development – “(…) the process of strengthening the abilities or capacities of individuals, organisations and societies to make effective and efficient use of resources, in order to achieve their own goals on a sustainable basis.” (GTZ 2003)

Integration into Country Led Programmes Coordination of Multiple Donor Contributions PC Leadership Support Partners’ National Dev. Strategies 1.B. Definition: Harmonized TC

Harmonized TC According to PD 1.B. Definition: Harmonized TC

High Standards Necessary: A. Holistic Understanding of CD B. Comprehensive Approach to Harmonized TC High Standards Necessary: A. Holistic Understanding of CD B. Comprehensive Approach to Harmonized TC 1.The New TC Approach

PRS 1.The New TA Approach: SWAPs/PBAs DPs Holistic CD PC able to deliver Harmonization (to minimize transaction costs for PC and Maximize Aid Predictability) Ownership (to Support PC dev. Priorities) Alignment – Needs Driven Approach (to Support PC dev. Priorities) SWAp/ PBA

1.The New TA Approach: SWAPs/PBAs CD First!

Structure 1.The New TA Approach 4.Lessons Learnt and Way Forward 2.Ghana 2006 Survey: Results 3.Best Practice: PPME

2.Ghana 2006 Survey: Results Indicator 4: Strengthen Capacity by Coordinated Support: How much TC did you provide in FY 2005? →Qd3. (USD): $ How much TC did you provide through coordinated programmes in support of CD in FY 2005? →Qd.4 (USD): $ Indicator 4: Qd.4/Qd.3 = 40% (target: 50%)

Good Practices were Identified within the Framework of Programme Based Approaches (Health SWAp, Road Sector etc.) Bulk of TA Remains Uncoordinated Good Practices were Identified within the Framework of Programme Based Approaches (Health SWAp, Road Sector etc.) Bulk of TA Remains Uncoordinated 2.Ghana 2006 Survey: Results

Some Donors Consider their TA to be Coordinated Because of the Consultations with GoG. However this is not in line with the definition of the Survey. 6 out of 16 Donors Reported “0” Coordination More Information is Required to Analyze the Coordinated TA Some Donors Consider their TA to be Coordinated Because of the Consultations with GoG. However this is not in line with the definition of the Survey. 6 out of 16 Donors Reported “0” Coordination More Information is Required to Analyze the Coordinated TA 2.Ghana 2006 Survey: Results

Structure 1.The New TC Approach 4.Lessons Learnt and Way Forward 2.Ghana 2006 Survey: Results 3.Best Practice: PPME

accounts for up to 80 % of total government expenditure (non staff emoluments) → ODA/National Budget (excl. Grants): 42 % (in 2004) 18 % of GDP (Africa: estimated 9-13 %) → in 2005: US$ 1.8 Bill. 70 % of Imports → in 2005: US$ 3.8 Bill accounts for up to 80 % of total government expenditure (non staff emoluments) → ODA/National Budget (excl. Grants): 42 % (in 2004) 18 % of GDP (Africa: estimated 9-13 %) → in 2005: US$ 1.8 Bill. 70 % of Imports → in 2005: US$ 3.8 Bill → Aid Effectiveness and V4M! 3.Best Practice: PPME Public Procurement in Ghana: Figures

DPs 2. Holistic CD 1. Harmonization at Global Level Ownership 5. V4M 4. Services 3. Alignment – Funding through PC PS in Accordance to NDS 3.Best Practice: PPME PC Procure ment System PRS

1996: PUFMARP 2002: OECD/DAC-WB ROUNDTABLE 2003: Public Procurement Act : Country Procurement Assessment Report 2003: Ghana/Swiss Partnership for Transparency and Accountability in Public Procurement 1996: PUFMARP 2002: OECD/DAC-WB ROUNDTABLE 2003: Public Procurement Act : Country Procurement Assessment Report 2003: Ghana/Swiss Partnership for Transparency and Accountability in Public Procurement 3.Best Practice: PPME

PPME - Harmonization at the Global Level: Funding From Swiss Government WB Baseline Indicator System + Swiss Performance Criteria Pooled Idea – Output Agreed on Global Level (RTs) →Development of a Framework for Procurement Assessment as Globally Coordinated CD

Overall Effects: 1. More V4M 2. Increased reliance on NPS → Therefore: Increased PC Ownership 3. Development Results Overall Effects: 1. More V4M 2. Increased reliance on NPS → Therefore: Increased PC Ownership 3. Development Results 3.Best Practice: PPME

DPs PC able to deliver Harmonization Ownership Alignment SWAp/ PBA PC Procur ement Syste m PRS Development 3.Best Practice: PPME

Structure 1.The New TA Approach 3.Best Practice: PPME 4.Lessons Learnt and Way Forward 2.Ghana 2006 Survey: Results

CD Central for SWAPs/PBAs → Alignment to NDS → Ability of PC “to deliver” CD as prerequisite for SWAPs/PBAs CD Central for SWAPs/PBAs → Alignment to NDS → Ability of PC “to deliver” CD as prerequisite for SWAPs/PBAs 4.Lessons Learnt and Way Forward

Commitment and Leadership of PC Government Mandatory for SWAp/PBA → Ownership – PC Priorities! Therefore: CD to Facilitate Ownership → Interdependency of OS and Capacity Commitment and Leadership of PC Government Mandatory for SWAp/PBA → Ownership – PC Priorities! Therefore: CD to Facilitate Ownership → Interdependency of OS and Capacity 4.Lessons Learnt and Way Forward

Ownership Capacity 4.Lessons Learnt and Way Forward: Interdependency of Ownership and Capacity CD Aid Effectiv eness

But: CD Kick Start Might be Necessary (e.g. WB: PCA 663) – Ownership Dilemma? But: CD Kick Start Might be Necessary (e.g. WB: PCA 663) – Ownership Dilemma? 4.Lessons Learnt and Way Forward: Interdependency of Ownership and Capacity

CD in Procurement “Win-Win” Situation → Value for Money for DP and PC → Positive Motivational Structure → Development Results THEREFORE: “AID EFFECTIVESS” CD in Procurement “Win-Win” Situation → Value for Money for DP and PC → Positive Motivational Structure → Development Results THEREFORE: “AID EFFECTIVESS” 4.Lessons Learnt and Way Forward: Procurement: a Special Case

NPS as sample case of Ownership → should therefore increase comfort level for DPs to administer ODA through NPS → DPs can support similar ventures e.g. FM, M&E, MfDR NPS as sample case of Ownership → should therefore increase comfort level for DPs to administer ODA through NPS → DPs can support similar ventures e.g. FM, M&E, MfDR

3.Lessons Learnt and Way Forward It’s all About Capacity!

Way Forward in Other Sectors: Joint Technical Assistance Sector Strategy TA TA Pool Way Forward in Other Sectors: Joint Technical Assistance Sector Strategy TA TA Pool 4.Lessons Learnt and Way Forward

4.Lessons Learnt and Way Forward Joint Technical Assistance A formal agreement of two or more donors to implement a project with the approval of government or/and partner organizations Directly linked to a country led sector strategy or programme

4.Lessons Learnt and Way Forward Sector Strategy TA Government and DPs Commit to Following a Specific Sector Strategy (With Indicators and Time Frames) PC’s Government has no Direct Access to the Funds for TC

4.Lessons Learnt and Way Forward TA Pool 1.GMTA Pool → PC’s Government Manages the Funds 2.DMTA Pool → Donors or Donor Secretariat Manages the Funds on Behalf of PC’s government

4.Lessons Learnt and Way Forward TA Pool PC Prefers Financial Contributions Instead of in Kind Funding

4.Lessons Learnt and Way Forward + PC Ownership TAP SSTA JTA Donor Harmonization + Stand Alone Programmes

4.Lessons Learnt and Way Forward In 2005 Ghana Received 316 Donor Missions, only 33% of them were Coordinated (Indic. 10a Target: 40%) →e.g. Canada: 57 Missions – 1 Coordinated GoG does not Have a System of Recording the Totality of the Visiting Missions →CD + Harmonization

4.Lessons Learnt and Way Forward + PC Ownership TAP SSTA JTA Donor Harmonization + + Aid Effectiveness

4.Lessons Learnt and Way Forward Concluding Remarks Coordination of TC is no Guarantee for Performance, Development, Impact and Sustainability Capacity is not a One Stop Shop

Ministry of Finance and Economic Planning Thank you very much for your attention! Mr. Ernest Prempeh - Ministry of Finance and Econ. Planning, Ghana Mr. Kristian Lempa - GTZ Revenue Mobilization Support, Ghana Learning Network on Capacity Development LenCD FORUM Addressing the Paris Declaration Collective Responsibility for Capacity Development: What Works, and What Doesn’t? Working Group 4 (Oct. 3 rd ): Pursuing Joint Approaches to CD at the National Level