1. EuropeAid 1 Update on development of the PPCM Guidance

2. EuropeAid 2 Implementation of the PPCM will: Support Paris and Accra agendas on aid effectiveness Address Court of Auditors & Council recommendations Address duplications and gaps with existing guidance Build on international best-practice (e.g. political economy and risk management) Improve the sequencing & linkages between aid modalities Strengthen the evidence base for decision-making

3. EuropeAid 3 Key features of the PPCM Guidance Aid Effectiveness Agenda is operationalised: Country and Sector Context Assessments are strengthened Risk Management is developed Policy Dialogue is embedded Performance Management is emphasised Capacity Development is mainstreamed

4. EuropeAid 4 Key features of the PPCM Guidance -- Country Level Assessment Improve quality & depth of analysis at country level A methodology/process on how to carry out this assessments Annexes for guidance on macro-economic, public finance management, public policy and political economy analysis The macro-economic and public finance management annexes in line with the budget support guidance The public policy assessment based on the seven key areas of assessment for sector policy support programmes

5. EuropeAid Focuses also on the informal institutions and relationships, their interaction with formal institutions, and the way this shapes incentives of local actors Changes the way donors think about development, the way they approach strategy development, and the way they design, implement and monitor operations 5 Key Features of the PPCM Guidance -- Political Economy Analysis (PEA)

6. EuropeAid 6 The Seven Key areas approach will remain the framework for the sector level assessment Rather than focus on areas of poor sector performance political economy assessment will be introduced to: oUnderstand the reasons behind performance. oAs well as the political feasibility of planned interventions Key features of the PPCM Guidance -- Sector Level Assessment

7. EuropeAid Key features of the PPCM Guidance -- Risk Management Framework

8. EuropeAid 8 Key features of the PPCM Guidance -- Policy Dialogue Policy dialogue at the centre of the PPCM Guidance But what is it? It is a process through which domestic actors build consensus on national policy reform issues, and then implement a strategy to support government-led policy change that is progressive, measurable and sustained

9. EuropeAid Five distinct groups of domestic actors: 1.government officials 2.elected representatives 3.appointed representatives 4.state oversight institutions 5.Non State Actors Key features of the PPCM Guidance -- Policy Dialogue

10. EuropeAid Key Features of the PPCM Guidance -- Policy Dialogue Five types of international actors: 1.Development partners 2.International organisations 3.International NGOs 4.Foundations 5.Multinational companies 10

11. EuropeAid Main principles for successful Policy Dialogue: 1.Informed 2.Modest 3.Transparent 4.Responsive 5.Constructive 6.Patient 7.Committed Key Features of the PPCM Guidance -- Policy Dialogue

12. EuropeAid Two different levels that may interact: National-level Discussions between domestic actors on national policies, e.g. development, macro-economic, fiscal, public finance and public sector management, social development, etc. Sector-level Discussions between domestic actors on issues related to sector policies Key Features of the PPCM Guidance -- Policy Dialogue

13. EuropeAid Formal policy dialogue Official meetings, such as annual government-led sector reviews, high-level government coordination meetings and technical conferences Includes official letters and publication of reports Formal PD meetings can be important for govt. Informal policy dialogue Sustained, ‘off-the-record’, engagement on policy issues with key domestic actors (one-to-one or in small groups) (lunch, workshop, telephone & email) Sustained informal dialogue  trust-based relationships can be established to support successful, government-led policy change Key Features of the PPCM Guidance -- Policy Dialogue

14. EuropeAid Key features of the PPCM Guidance -- Update Internal Monitoring Introduction What is internal monitoring (IM)? What is the role of TM regarding internal monitoring? How is IM of the overall quality assurance system? How to set priorities and organize IM? Project risk assessment Project monitoring plan How to monitor projects? Monitoring regarding project’s maturity Getting ready to monitor projects when starting Monitoring impact and potential sustainability at project closure Tools at TM's disposal to monitor projects Monitoring with the CRIS Implementation Report In-Depth monitoring with the DAC criteria

15. EuropeAid Key features of the PPCM Guidance -- Update Internal Monitoring How to add value through data analysis and information sharing ? Data analysis Communication and information dissemination Annexes: Internal Monitoring Tool Sheet 1: project description Sheet 2: contract & budget Sheet 3: technical implementation Sheet 4: in-depth monitoring Sheet 5: monitoring plan and decisions Sheet 6: contact details

16. EuropeAid PPCM – Revision Methodology Who is involved? The revision of the PPCM is a consultative process, and its success depends on the interaction between different actors: EuropeAid is in the lead but consults DG ELARG on a regular basis Delegations have been consulted from the start but are also supporting the work through mapping of their practices and helping us test guidance Member States: learning lessons and consulting Non State Actors: will be consulted

17. EuropeAid PPCM Guidance implementation strategy Stage 1: Planning, Research and Design (Jan to July 2010) Stage 2: Drafting, Consultation & Testing (Aug 2010 to Feb 2012) Stage 3: Testing, Training & Final Drafting (June 2011 to Aug 2012) PPCM Guidance

18. EuropeAid 18 PPCM Guidance -- Next steps to end of year Ongoing: Country Context Analysis: Political Economy, PFM, Macro-economic and Public Policies Sector Context Analysis: Political Economy and Policy Cycle Assessment Policy Dialogue Monitoring Risk Management Testing: Political Economy tools in Zambia Policy Dialogue Seminar in Philippines About to Begin: Evaluation

19. EuropeAid Thank you for you attention Do you have any questions?