1. 1 Modalities for Supporting PRSs Finnish Aid in a PRS Context Helsinki Workshop 19-22 May 2003

2. 2 One model Country-level partnership with PRSP at the centre. CSP as business plan General budgetary support aligned with country budget/MTEF and PRS cycle Shared performance matrix based on PRS matrix with clear, mutually agreed triggers for on/off financing

3. 3 ……. Fully predictable & harmonised donor funding fully integrated into Govt. budget & macro-framework Govt monitoring & review systems used to assess performance linked to PRS review & results-oriented budget Government identified TA financed from a pooled-fund supported by external partners

4. 4 Possible/feasible/desirable? Its already happening (in patches) – DFID/SIDA/Netherlands/World Bank Not clear yet whether the model is producing results (in terms of effectiveness/outcomes – see GBS evaluability study) Some signs that it is helping to improve the way Govts. do business & enhancing aid relationships

5. 5 But challenges lurk… Can all aid agencies feasibly move in the same direction simultaneously? What about successful initiatives that fall outside the scope of budget support? Concerns about over-centralisation (PRSP/MTEF/GBS – role of MoF) How to ensure a place at the policy table for BS and non-BS donors (& NGOs)?

6. 6 Alternative modalities Consider different types/levels of partnership within broad PRSP framework e.g. work with sub-national authorities (India/South Africa) & private sector partners Maximise overall donor effort by being selective with clear links to PRSP framework e.g. identifying projects & programmes with upstream linkages & learning opportunities

7. 7 Alternative modalities Identify funding modalities that can be easily harmonised & are consistent with building local institutional capacity Share analytic work/risk assessments which also help build country capacity – PERs, CFAA etc. Link projects to removal of key obstacles to PRSP implementation – at local or sector level

8. 8 Organisational Issues How to maximise the impact of aid in a PRSP context? –Alignment & harmonisation require greater on-the- ground capacity (at least initially!) –Requires greater consistency of messages between HQ & field –More emphasis on policy influencing skills, though traditional technical skills still matter –More joining up/working with & through multilateral sources e.g. World Bank/EC/ UNECA/ AfDB/ADB etc.