1. UNCDF Ron McGill CLGF Working Session Building capacity for LG to perform

2. UNCDF Three parts to the session In the context of UNCDF’s mandate to invest in the LDCs; we need to understand: 1.Performance, in terms of getting LG to deliver; 2.Capacity, in terms getting LG to be able to perform; and 3.Organisation, as the basic building block for things to actually happen. Plus a bonus item! Ron McGill

3. UNCDF Performance - getting LG to deliver Measuring the ECONOMY, EFFICIENCY and EFFECTIVENESS of delivery Budget Actual Variance % variance (1) = Economy of inputs (where T = 100%) Ron McGill

4. UNCDF Controllable performance A =% specification B =% time (2) =(A+B)/2 = Efficiency of outputs (where T = 100%) Ron McGill

5. UNCDF The 3 Es = performance budgeting C =% occupancy rate / use of facility D = % assessment of 'problem solved' (3) = (C+D)/2 = Effectiveness of impact (where T = 100%) T = (1+2+3/3) = Total performance Ron McGill

6. UNCDF Capacity - LG able to perform Existence of a District development plan and budget. Max = 20  Approved development plan, through community participation.  Approved annual budget to implement that year’s portion of the plan. Ron McGill

7. UNCDF Capacity - LG able to perform Functioning District council and District administration. Max = 20  Full council and committees’ meetings timetable honored in full.  Women’s participation quota met.  Accurate ‘minutes’ produced within two weeks of any such meeting. Ron McGill

8. UNCDF Capacity - LG able to perform Functioning finance system. Max = 20  Daily accurate financial records by CoB.  Monthly bank reconciliations, within two weeks of month-end.  Quarterly financial reports submitted within two weeks of quarter-end. Ron McGill

9. UNCDF Capacity - LG able to perform Establishment of development fund (i.e. capital funds) account. Max = 10  Functioning capital account Ron McGill

10. UNCDF Capacity - LG able to perform Key District staff in place. Max = 30  Administrator  Finance officer  Planner  Five technical supervisors (Ed; Ag; Health; Women; Capacity) Ron McGill

11. UNCDF Ron McGill Organisation - basic building block And an interesting test of DECENTRALISATION progress! 1.Number of posts required. 2.Number of posts established. 3.All established posts to perform each devolved function, filled in the district? 4.All established personnel fully trained to perform the devolved functions?

12. UNCDF Ron McGill Organisation - basic building block 5. Facilities: accommodation, plus furniture, systems, equipment and transport provided (crucially, to include the transfer of assets). 6.Assessment of productivity: i.e. performing economically, efficiently and effectively in the performance of the function (the way to measure these 3-Es, which has just been outlined above).

13. UNCDF Ron McGill Bonus – gender equity UNCDF, in partnership with UNIFEM, has designed a new gender-equitable local development (GELD) programme in Senegal, Sierra Leone, Rwanda, Tanzania and Mozambique; with Ethiopia now joining. It has three components: 1.Planning and budgeting; 2.Equitable performance; and 3.Policy implications.

14. UNCDF Ron McGill GELD programme – the 4 th ‘E’ GELD seeks to introduce a fourth ‘E’ into the 3-Es lexicon! It also seeks to give practical meaning to the MDGs. What disturbs UNCDF about MDG-3 is that ambitions for political representation is seen in terms of national government only!!! Its indicator number 12 states: ‘ Proportion of seats held by women in national parliament’. For us local government practitioners, this suggests a lack of understanding of and belief in Local Government!

15. UNCDF Ron McGill GELD material – if desired 1.The original working paper that paved the way, for the programme. 2.The project document itself (slim and easily read!). 3.A subsequent conceptual paper on the human rights- based approach to local development, through the MDGs (equivalent of a journal article). 4.The first draft of a GELD planning and budgeting manual (to give life to the whole initiative).

16. UNCDF Ron McGill Conclusion 1. The GELD material is founded upon performance budgeting. UNCDF’s approach to PB is captured in Achieving Results (2006); available free online, with summary versions available at our stand. If anyone would like further information from this session, please don’t hesitate to get in touch. Email me at ronald.mcgill@uncdf.orgronald.mcgill@uncdf.org But before you go… End of session.

17. UNCDF Ron McGill Conclusion 2. Inspiration? Tanzania.

18. UNCDF Ron McGill Conclusion 3. Inspiration? Malawi