1. Bosnia and Herzegovina Ministry of Finance and Treasury Planned Piloting of Sector-Wide Approaches (SWAps) in BiH Dusanka Basta, MoFT and Richard Moreton, DFID/ACE

2. Bosnia and Herzegovina Ministry of Finance and Treasury What is a Sector-Wide Approach? A Sector-Wide Approach (SWAp) is a methodology that brings together governments, donors and other stakeholders in the sector around the sector development agenda. The approach involves movement over time under government leadership towards: broadening policy dialogue developing a single sector strategy and policy a common realistic expenditure program for the sector common monitoring arrangements coordinated procedures for funding and procurement

3. Bosnia and Herzegovina Ministry of Finance and Treasury

4. Bosnia and Herzegovina Ministry of Finance and Treasury Building Blocks of Sector Approaches Main building blocks Sector Policy and Strategy Sector Budget and Medium-Term Expenditure Framework Sector Co-ordination Framework Other key components Institutional setting and existing capacity Performance monitoring system

5. Bosnia and Herzegovina Ministry of Finance and Treasury Sector Policy and Strategy in BiH The Country Development Strategy (CDS) and Social Inclusion Strategy (SIS) are undergoing approval, providing a missing country context for sector strategies. There are many sector policies and strategies The BiH constitutional structure (two Entities, 10 cantons and District Brcko) makes it more complex to develop country-level sector strategies.

6. Bosnia and Herzegovina Ministry of Finance and Treasury Sector Budget and Medium-Term Expenditure Framework in BiH MTEFs are prepared by all Ministries of Finance every year. Sectors are identified in the MTEF (e.g. education, health etc.) but these represent groupings of budget users, rather than a sector programme. Programme Based Budgeting is being introduced in a limited manner this year, which would eventually provide the raw material for true sector- based budgeting.

7. Bosnia and Herzegovina Ministry of Finance and Treasury Sector Coordination Framework in BiH Several sectors have established co-ordination mechanisms jointly with donors (e.g. Justice, PAR, agriculture) Some of these are country-led or have executive authority. There is a clear trend towards the use of sector co-ordination mechanisms

8. Bosnia and Herzegovina Ministry of Finance and Treasury Institutional setting and existing capacity in BiH Developing knowledge of strategic planning Some experience with sector approach by PARCO and Justice Sector Performance monitoring systems in BiH Plans to develop M&E frameworks for CDS and donor funding

9. Bosnia and Herzegovina Ministry of Finance and Treasury Relevance of SWAP for donors Increase relevance of aid Focus strategies and programmes on development priorities - better cooperation with sector institutions provides better focus on sector/country development priorities Measure outcome and impact of assistance – sector based M&E system easier capture long-term effects of assistance

10. Bosnia and Herzegovina Ministry of Finance and Treasury Relevance of SWAP for donors Focus technical assistance Minimise duplication of assistance – sector level management of assistance provides better project/programme formulation Harmonize methodologies – technical teams working against the same agenda easier coordinate and harmonize approaches and definitions

11. Bosnia and Herzegovina Ministry of Finance and Treasury Relevance of SWAP for donors Achieve more for less Higher efficiency– more results can be achieved through better coordination of stakeholders in the sector; Synergy of external funds – your organization can achieve more with the same budget Smaller transaction cost - so that more funds are directed to development projects

12. Bosnia and Herzegovina Ministry of Finance and Treasury Donors developing program based funding in BiH Justice sector: UK Embassy Sweden/SIDA; Spain PARCO DFID/UK, The Netherlands, SIDA/Sweden; Delegation of the European Union to BiH - TA

13. Bosnia and Herzegovina Ministry of Finance and Treasury Aid instruments to support SWAPs Projects Budget supportBaskets (pooling) traditional project financing project contribution to a sector programme project contribution to a sector programme with harmonised standards and procedures (between donors) joint financing of a donor controlled basket joint financing of a jointly controlled basket joint financing of a gov‘t controlled basket sector budget support general budget support

14. Bosnia and Herzegovina Ministry of Finance and Treasury Milestones in the sector approach Piloting Process MoFT/SCIA is a leading institution from the government side for support to design and implementation of the Sector Approach in BiH Milestones: Consultation Workshops for Preparation of the MIPD 2011-2013 – sector approaches WS Judiciary and PAR (June 2010) Preparation of a Sector Approach development plan (July 2010) BiH Country workshop on Sector Approaches (September 2010) Submission to Council of Ministers of the proposed Sector Approach modality in the pilot sectors (Autumn 2010)

15. Bosnia and Herzegovina Ministry of Finance and Treasury Donor and MoFT/SCIA Next steps in 2010 Collecting information of donor interest for sector approach such as sector of interest and preferred aid instrument – MoFT/SCIA will send the inquiry form to DCF members (June 2010); Bilateral or group meetings between MoFT/SCIA and donors (July 2010); Establishment of donor working groups per sector of interest (July-Sept. 2010) Negotiation of the MoA between donors and the sectors/government (Sept.-December 2010)

16. Bosnia and Herzegovina Ministry of Finance and Treasury More details on sector approach is available at the following web site addresses: http://www.trezorbih.gov.ba/bos/index.php?option=com_content&tas k=view&id=476&Itemid=177 and http://ec.europa.eu/enlargement/projects-in-focus/donor- coordination/meetings_events_conf_coord_aid_en.htm