1. June 2008Nils Boesen/Erma Uytewaal1 Sector Wide Approaches in motion: From an aid delivery to a sector development perspective Bruxelles, 10.-11. June 2008

2. June 2008Nils Boesen/Erma Uytewaal2 Your turn! In your experience from the water sector,  what are the achievements and strengths of water SWAps?  What are the weaknesses and challenges?

3. June 2008Nils Boesen/Erma Uytewaal3 Overview: The general lessons Strong interest in the SWAp and PBAs More driven by donors than by government Limited analytical underpinnings Increasing attention to civil society Increasing concern about links to decentralisation Many rather incipient processes – weak incentives? And/or a SWAp concept beyond reach?

4. June 2008Nils Boesen/Erma Uytewaal4 What is a Sector Programme? A Sector Programme is a product of the Sector Approach. It is a government (not donor) programme

5. June 2008Nils Boesen/Erma Uytewaal5 Sector programmes: 5 typical elements Sector policy in macro-framework Public finance management Accountability & Performance monitoring Institutions and capacities Aid alignment and harmonisation Services and enabling environment

6. June 2008Nils Boesen/Erma Uytewaal6 Key Issue: Capacity to SWAp? Too much complexity vis-à-vis available capacity and incentives to transform the SWAp into sensible action, for all stakeholders?

7. June 2008Nils Boesen/Erma Uytewaal7 The SWAp concept – means and ends Born out of aid effectiveness concerns… …but aim of sector programmes is sector development, thus... …raising the ante: how can a sector develop? …implying:  systemic view, more to look at, more diagnosis  handling political economy dimensions  increased complexity The JLP is moving in this direction, offering imperfect analytical framework for “sector helicopter view”

8. June 2008Nils Boesen/Erma Uytewaal8 InputsOutputs Open Systems Model for Sector Diagnosis Sector systems and Organisations Contextual factors within influence OutcomeImpact Contextual factors beyond influence Sector Governance

9. June 2008Nils Boesen/Erma Uytewaal9 InputsOutputs Open Systems Model for Sector Diagnosis Contextual factors within influence OutcomeImpact Contextual factors beyond influence Change capacity Specific incentives driving performance Policy frameworks Decentralization and deconcentration Organizational capacities Sector coordination mechanisms Feedback-mechanism Public financial management

10. June 2008Nils Boesen/Erma Uytewaal10 Sector diagnosis and reform entry points 1.Wider context factors, public sector wide reforms 2.Sector resources and inputs 3.Sector outputs 4.Sector governance and accountability 5.Policy frameworks; sector vision and strategy; legal issues and legislative frameworks 6.Public financial management systems and capacity 7.Organizational capacities 8.Feedback-mechanisms 9.Sector coordination mechanisms 10.Decentralization and/or deconcentration 11.Specific incentives driving or constraining performance 12.The change capacity of domestic actor

11. June 2008Nils Boesen/Erma Uytewaal11 Sector policy: process Country ownership still compromised How good is ‘good enough’ Cobbling the pieces together Still weak policy – budget links ‘Policy - capacity = capacity gap’ Too much ‘development (project?) planning thinking’ carry over

12. June 2008Nils Boesen/Erma Uytewaal12 Sector policy: content Lack of prioritisation ‘Missing middle’ (in objectives and in targets)  Poor micro-, meso-, macro linkages  Lack of non-state actor involvement Taking account of winners and losers  Beyond government, below national level, towards disadvantaged areas and people  Can (or should) losers be implementers?

13. June 2008Nils Boesen/Erma Uytewaal13 The budget, PFM, MTEF Theoretical importance well accepted De facto budget/PFM issues not yet that central Finance ministries conspicuously absent MTEFs in sector can be very rudimentary Limited sector incentives to pursue better PFM

14. June 2008Nils Boesen/Erma Uytewaal14 Risky PFM issues in SWAps Risk of “state-centred” perspective – budget not equally important in all sectors Sector programme budget may only be part of sector budget, or cut across sectors Risk of overlooking fiscal decentralisation interfaces Risk of technocratic bias Premise of predictability uncertain MTEF – maybe, but when?

15. June 2008Nils Boesen/Erma Uytewaal15 Institutions and Capacities Everybody’s concern Everywhere – and nowhere…. Few handles – except the supply driven TA and training

16. June 2008Nils Boesen/Erma Uytewaal16 Capacity development issues Mainstreaming CD in Sector Programmes Opening dialogue about institutional/political economy drivers and constraints Opening dialogue which respects that CD must be demand-driven Maintaining realism about what sector level CD can achieve Finding joint sector approaches to support CD

17. June 2008Nils Boesen/Erma Uytewaal17 Accountability Political system/govern ment Non-state actors Checks and balances organisations Frontline service providers Core public agencies Context Donors, international organisations Governance Accountability

18. June 2008Nils Boesen/Erma Uytewaal18 Strengthening domestic accountability Focus on expenditure Focus on sector outcomes Focus on CD for government Bias towards mutual accountability concerns Attention to revenue Service users to hold providers to account CD of ‘pillars’ of accountability Priority of domestic accountability

19. June 2008Nils Boesen/Erma Uytewaal19 Monitoring Harmonisation and alignment successes Monitoring for learning vs monitoring for accountability The problem with indicators Monitoring systems as government management information tools first and donor ‘checking tools’ after

20. June 2008Nils Boesen/Erma Uytewaal20 Alignment, harmonisation, modalities Unprecedented push for H&A Government push essential – donors alone won’t make it Overdoing donor-govt coordination may crowd out domestic sector coordination Coordination often poorly performed Increased time required for SWAps Inclusive SWAp model appreciated, but.. Budget support still contentious

21. June 2008Nils Boesen/Erma Uytewaal21 H&A issues Putting the sector coordination perspective first Getting business-like approach to coordination, and managerial capacity to pursue it Embracing transaction costs – pay them with a smile! Working on tensions around donors coming too close for comfort

22. June 2008Nils Boesen/Erma Uytewaal22 Decentralisation Centralising tendencies in SWAps – how to deal with decentralisation is key issue in several JLP events Central government faces “donor dilemmas” vis-à-vis local governments Funding mechanisms, policy/legal mechanisms, bargaining – all in play to define autonomy/control balance Country perspective on the tension and issues, not an aid perspective

23. June 2008Nils Boesen/Erma Uytewaal23 Concluding remarks: Implications? Looking for a middle ground between..  the Scylla of a building a system on sand, stuck in capitals, pondering about complexities; and..  the Charybdis of unprincipled, opportunistic muddling through

24. June 2008Nils Boesen/Erma Uytewaal24 Strategic Incrementalism? A sector development perspective Explicit political economy perspective Consistent actor/stakeholder perspective Strengthened managerial inputs Common sense focus on results …building SWAp as a process also with focus on processes …and thereby fostering trust through modesty, realism and patience….