1. Title Consultation on the 7 th replenishment of IFAD’s resources IFAD’s operating model : overall structure and components Consultation on the 7th replenishment of IFAD’s resources

2. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources outline Why revise the operating model? The country programme approach Introducing the new operating model Next step

3. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Why revise the operating model? (1) Independent External Evaluation para 4.38 highlights “the need for a new [operating] model” in order to: 1)Achieve sustainable impact at all levels: projects’ impact on people and impact on policy 2)Become more effective and efficient 3)Enhance learning 4)Account for measured results 5)Act as a better partner with others 6)Configure resources accordingly 7)Develop staff to meet the challenges: skills and style

4. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Why revise the operating model? (2) In order to deliver on “IFAD’s role and focus”: –Working at the local level –Enhance capacity for effective participation –Include the poor in policy and decision making –Enhance innovation, risk taking, learning at country level Country realities have developed: –Countries offer stronger leadership –Decision making at the local level –Voice to the poor and citizen participation –Private sector and civil society

5. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Why revise the operating model? (3) ODA context has evolved : –Donor decentralisation: country based systems and business processes –Harmonisation: country ownership, new approaches (processes and products) –Enhanced levels of ODA resources, focusing on rural poverty reduction

6. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources The country programme approach The country programme The country programme management team Managing the country programme approach

7. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Country programme (1) Management response to IEE (block 2): “Country programmes, as more than a compilation of projects, are the core of IFAD’s country activities” and are “developed through consultations with governments, other national partners, and development assistance coordination processes”.

8. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Country programme (2) Results-focussed integration of projects, policy and knowledge management agenda through: The annual PBAS cycle The results oriented COSOP Strategic mix of new investments (loans and grants): innovation, replication and upscaling with others Management of ongoing investment portfolio: –Range of supervision modalities –Implementation support

9. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources The results oriented COSOP –Providing strategic directions for loans and grants –policy dialogue agenda –innovation agenda –knowledge management agenda –scenarios and triggers –partnership development agenda; with a –results management framework

10. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Country programme management team (1) IEE para 4.39: IFAD needs to “move away from the CPM-country one-to-one relationship [to] provide countries with a better broader-based service with access to a wider pool of skills and ideas”.

11. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Country programme management team (2) The country programme management team consists of : –The Country Programme Manager, managing the team –Expanded headquarter team to be more structurally inclusive of other functions in IFAD –Stronger country leadership and ownership through engagement of in- country partners: Governments (central and local) The rural poor and their organisations Stronger field presence in country, with diversity of approaches Supervision partners donor partners

12. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Diversification of supervision approaches IEE para 4.45: “The Fund should be released from the longstanding restriction on project supervision” and “the decision should be left to management to enable flexibility in support according to country circumstances and age of the project”. Recommendation: –Supervision by Cooperating Institutions (traditionally reputed international financial institutions) under improved terms, conditions and comprehensive coverage of implementation issues (the majority option) –Supervision by other contracted organisations (including reputed local, national or regional organisations, local NGOs, private sector agents, …) –Supervision directly by IFAD, led by Country Programme Managers through in-country presence, where the Fund has an established presence, or by the Country Programme Manager

13. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Country programme management team (3) Team management principles: –formalise the virtual IFAD –stronger country leadership –more systematic role –throughout country programme cycle IFAD’s country presence strategy consists of country interface: with limited number with special focus on large country programmes or those with a high innovative contents or in difficult environments phased approach

14. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Managing the country programme approach (1) Planning for results –Develop institutional capacities for innovation, learning and policy dialogue –Build further on PBAS Rural sector policy and institutional assessment Allocation of resources and approach to assistance based on the country performance –Enhance COSOP Results oriented COSOP –Quality assurance embedded in core processes: Strengthen capacity of the country teams and operational units to improve quality of country programme designs

15. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Managing the country programme approach (2) Managing for results –Quality control to support quality assurance process: Strengthen the capacity of technical services units –Improve supervision arrangements Diversified approaches to supervision –Build further on results management systems: Results Impact Management System (RIMS) Portfolio at Risk (within the PBAS) –Portfolio management process Strengthen the regional and overall portfolio management process –Learning processes and systems Set objectives and allocate staff time for learning and knowledge management –Performance management of staff

16. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Managing the country programme approach (3) Accounting for results –Enhance independent quality assurance: IEE recommends the World Bank Quality Assurance Group (QAG) approach –Self assessment Further improve the self assessment of the country portfolios –Build further on the Independent Evaluation function

17. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Introducing the revised operating model Change implementation principles: –strengthen change culture, and build broad ownership of the change agenda, while displaying continuous management determination to change, –Phased: start with priorities for change, learn and expand, in planned sequence –Tailored to the specific country programme: responsiveness in space, time and to resource base

18. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Human resource implications Design staff competency profiles for leadership, strategic planning, innovation, policy dialogue, learning, leading change and team management Staff development: –Competency development –Competency based staff recruitment Performance management: –Performance planning –Performance assessment –Performance based pay, based on: Actual performance against agreed objectives Competency development

19. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Financial implications Approach: –Based on agreed principles –Tailored to country programme specifics –On formula basis Cost drivers: –Enhanced project designs –Better innovation and learning –Stronger country presence –Diversified supervision –Strengthened policy dialogue –Enhance quality assurance and control –New partnerships –Enhanced evaluation –Institutional and staff capacity building Cost items –Investment costs: systems development, staff time –Recurrent costs: country programme management team time, operating resources

20. July 2005 - Third session of the Consultation on the 7 th replenishment of IFAD’s resources Next step Finalise the Action Plan (management response to the IEE) with detailed resource implications