1
WatSan and PRSPs

• ODI/WaterAid/WSP
• Regional Workshop,
• Kampala, 2nd- 4th February, 2004
• Peter Newborne,
• ODI Water Policy Programme

2
WatSan and PRSPs project

• Phase I 2002
• preliminary assessment of extent of incorporation
  of water (WSS and WRM) under PRSPs in five
  African countries ie review of PRSP preparation
  (both content process)
• - findings of Phase I on separate sheet.
• Phase II 2003-2004 (until end March)
• - detailed study of how resources, allocated to
  WSS priorities under PRSPs in three African
  countries, are converting into expenditure on WSS
  outputs, for poverty impacts.

3
Strengthening Design, Finance and Delivery
ofWater Supply and Sanitation Programmes under
PRSPs

• Phase II 2003-2004 (until end March) project
  purpose
• To help strengthen the design, financing and
  delivery of water supply and sanitation
  programmes within PRSPs in selected countries in
  sub-Saharan Africa, as part of further
  development, implementation and monitoring of
  Poverty Reduction Strategies in the region
• - investigation of PRSP implementation (i)
  finance, and (ii) design/delivery of WSS
  interventions under PRSPs in the region.

4
Strengthening Design, Finance and Delivery ofWSS
Programmes under PRSPs

• Research scope and focus
• - through the water sectors experience, to
  review progress of PRSP implementation, in order
  to-
• - investigate how resources, allocated to WSS
  priorities in PRSPs in the region, are converting
  into expenditure on WSS-related outputs/outcomes
  
• - recommend how capacity for action by central
  decentralised government may be strengthened to
  deliver on promises made in PRSPs - and those
  commitments may be developed - for achievement of
  water-related poverty reduction outcomes
• - make recommendations for how external donors
  may support this effort.

5
WatSan and PRSPs project

• Phase I 2002
• - preliminary assessment of extent of
  incorporation of water (WSS and WRM) under PRSPs
  in five African countries ie review of PRSP
  preparation (both content process)
• Phase II 2003-2004 (until end March)
• - detailed study of how resources, allocated to
  WSS priorities under PRSPs in three African
  countries, are converting into expenditure on WSS
  outputs, for poverty impacts
• - ie investigation of PRSP implementation (i)
  finance, and (ii) design/delivery of WSS
  interventions under PRSPs in the region.

6
Countries for Water PRSPs study

• ODI - WaterAid project
• Phase I Zambia, Uganda, Malawi Kenya,
  Madagascar
• Phase II Zambia, Uganda, Malawi
• WWF/ODI project
• - Zambia, Uganda, Kenya, Madagascar Tanzania,
  Niger
• Pakistan, Vietnam
• Nicaragua Mexico (WB Strategy for Poorest
  Southern States).

7
HDI Rankings of WWF-Selected CountriesSource
UNDP 2002, as per World Water Development Report
-WWDR
Niger 172
Zambia 153
Tanzania 151
Uganda 150
Madagascar 147
Pakistan 138
Kenya 134
Nicaragua 118
Vietnam 109
Mexico - national 54
8
Two HD Indicators for WWF-Selected
CountriesSource UNDP HDIs 2003 - www.undp.org
Child Mortality under five, per 1,000 births in 2001 Rural Water Coverage of rural pop. with sustainable access to impr..water, 2002
Niger 265 56
Zambia 202 48
Tanzania 165 57
Uganda 124 47
Madagascar 136 31
Pakistan 109 95
Kenya 122 42
Nicaragua 43 59
Vietnam 38 72
Mexico national Mexico South 29 41 69 32-43 (piped connect)
9
PRSPs Processes - I

• Six core principles of PRSPs
• for strengthening link between debt relief
  poverty reduction
• comprehensive recognition that poverty is
  multi-dimensional
• PRSs should be-
• country-driven
• results-oriented
• comprehensive
• prioritised
• partnership-oriented
• based on long-term perspective.

10
PRSP and Related Processes - II

• PRSPs cover a three-year timeframe, with annual
  review and update
• PRSP role as platform for financing
• budget key vehicle for PRSP implementation,
  annually
• both PRSP and Budget need to be nested within
  longer term development policy and planning
  process
• MTEF is one planning tool, typically over 3
  years estimate of the resourses available for
  public expenditure, together with indicative
  plans for allocating those resources between
  competing priorities
• Role/aim of MTEFa linking framework to ensure
  expenditure driven by policy priorities and
  disciplined by budget reality (World Bank 1998).
  
• Medium Term Expenditure Framework

11
Key Parts of PRSPs

• PRSP Priorities
• pillars key principles/concepts
  cross-cutting themes
• analysis of multi-dimensional aspects of poverty
• poverty reduction and economic growth responses
• PRSP Objectives
• by sector/subject/theme
• degree of prioritisation?
• PRSP Action Plan (or implementation matrix
  etc.)
• with costings
• degree of clear prioritisation?
• NB discontinuity of PRS process evident through
  discrepancies between above parts of PRSP in
  Zambia, Madagascar, Kenya Vietnam.

12
Progress in Production of PRSPsas at October
2003 (source IMF PRSPs website)

• Full PRSPs 35 countries (see separate handout)
• Interim PRSPs 18 countries (
  )
• Potentially 9 remaining HIPC countries not
  produced I-PRSP ( )
• What about the other low-income or other
  countries listed in the WWDR, or as listed in
  World Bank Timelines website without explicit
  forecast as to PRSP production Eritrea? Bhutan?
  Afganistan? Dominica? Haiti? Kazakstan?
  Yugoslavia?
• NB above WB website last updated in April 2002
  more recent information?

13
PRSP Processes Plenary discussion

• Possible focus/i of engagement-
• PRSP implementation
• PRSP preparation
• - in different countries/regions.
• Timing (as per WB Analysis of Implementation
  Progress, Sept 15th 2003)-
• average duration from I-PRSP to full PRSP 20
  months
• annual PRSP progress reports (PRSP-PRs) 11 by 7
  countries.

14
(No Transcript)
15
WatSan and ATER, POVERTY DEVELOPMENT

• Status of Incorporation of Water Priorities under
  PRSPs

16

• Lessons from ODI/Water DFID-funded WatSan PRSPs
  project Phase I (2002)

17
Treatment of Water-related Issues in 10
WWF-Selected PRSPs - I

• Positioning of Water Objectives (see separate
  handout)
• in 6 countries, WSS is Social/human
• in 6 countries, WRM interventions are related to
  Economic and Growth, or Productive but there is
  also some recognition of social functions of WRM,
  and in 2 countries of vulnerability aspects
• - WSS in 1 country is labelled solely Economic
• - Infrastructure in Kenya ( Zambia) clearly
  reflects different preoccupation, with physical
  installations
• - for sector coherence Zambia, Madagascar
  only?!

18
Treatment of Water-related Issues in 10
WWF-Selected PRSPs - II

• Poverty noted as predominantly rural, although
  urban (peri-urban) poverty is a serious problem
• Gender key role of women/girls in relation to
  WSS reflected in text of some PRSPs (Niger,
  Uganda, Kenya, Vietnam), but in PRSP water
  Objectives/Actions gender aspects are weak
• Agriculture referred to as a driver of growth or
  key economic sector, in 7 PRSPs
• Irrigation development clearly emerges as a key
  subject in 7 PRSPs
• Flood/drought noted in 9 PRSPs.

19
Treatment of Water-related Issues in 10
WWF-Selected PRSPs - III

• IWRM integrated WR management mentioned, as
  future need or incipient in 5 countries Niger,
  Zambia (1 project), Tanzania, Nicaragua (compre-
• -hensive solutions), Madagascar (1 project
  also to be developed nationally)
• Freshwater ecosystems, environment or
  biodiversity Zambia (important for tourism and
  fishing) Uganda (role of wetlands for c.5m)
  Kenya (conservation), Mexico-South (biod.
  comparative advantage) Vietnam (pollution of
  rivers) Madagascar Nicaragua (deterioration of
  watersheds) Tanzania (heavy dependence of poor
  on environmental resources)
• Water efficiency Pakistan cf Vietnam manage
  water resources strictly Mexico WSS low
  cost-recovery Madagascar irrigation efficiency
  presumably part of improving inputs to rice
  production
• Transboundary aspects briefly mentioned in 2
  PRSPs
• Hydro-power 5 PRSPs refer to building of hydro
  facilities - Zambia, Uganda, Pakistan, Kenya,
  Mexico - several with major cost (how funded?).

20
Treatment of Water-related Issues in 10
WWF-Selected PRSPs - IV

• Sanitation
• - relatively well integrated in 4 PRSPs weak in
  6 PRSPs
• - funding gap in Niger, Tanzania, Kenya others?
• ME
• ME processes described in text of all PRSPs,
  more development of indicators institutional
  system needed
• Uganda ahead of some countries, but Progress
  Report 2003 and WaterAid study confirms need for
  improvement
• MDGs
• mentioned in 4 PRSPs Niger, Tanzania,
  Madagascar, Vietnam
• - water target referred to in Niger, Vietnam
• reference to IDGs/DAC goals Kenya, Nicaragua
• - Mexico-South small probability of achieving
  MDG 1 WSS target feasible, assuming funds and,
  as/more important, political will.

21
Sectoral Links in Selected PRSPs

• Intra-sectoral WSS-WRM
• Impression of some intra-sectoral (WSS-WRM)
  coherence portrayed in text of 5 PRSPs
• Niger, Tanzania, Madagascar, Kenya, Vietnam
• through linking of domestic and productive
  activities in rural lives/contexts
• Inter-sectoral
• Water links to health and education noted in 6
  and 3 countries, also environment (3 countries)
  articulated in PRSPs
• WSS time fetching/carrying water explicitly
  referred to in 5 PRSPs (gender)
• (but, in prioritisation of investment, is
  consequent substantial loss of productive time
  taken into account?)
• NB how are above links, as described, reflected
  in coordinated actions in practice? example of
  good practice matrix of types of intervention
  and contributing/delivering depts. in the
  Madagascar PRSP Action Plan.

22
Incorporation of Water Priorities in PRSPs -
Plenary Discussion

• How may the water "sector" support strengthening
  of PRSPs?

23
WATER, POVERTY DEVELOPMENT

• Making Scarce PRSP Resources for Water
  Interventions Count

24
Positioning of Water Objectives in WWF-Selected
PRSPs (recall of positioning of WSS and WRM)

• In 6 countries, WSS is Social/human
• In 6 countries, WRM interventions are related to
  Economic and Growth, or Productive but there is
  also some recognition of social functions of WRM,
  and in 2 countries of vulnerability aspects
• WSS in 1 country is labelled solely Economic
• - Infrastructure in Kenya ( Zambia) clearly
  reflects different preoccupation, with physical
  installations
• - for sector coherence Zambia, Madagascar only?

25
Targeting of Water Interventions in
WWF-Selected PRSPs (see separate handout)

• Zambia, Madasgascar, Pakistan, Vietnam, Mexico
  investment to follow regional policy, targeting
  locations with particular economic growth
  potential
• Madagascar and Nicaragua both high development
  potential and poor/disadvantaged areas
• Tanzania and Uganda targeting according to
  poverty
• Kenya focus on ASALs (arid and semi-arid
  lands)
• Vietnam disaster prone areas (eg. Mekong
  Delta)
• Pakistan I-PRSP proposal for sub-national, as
  well as national, PRSPs
• Trickle out of benefits of growth from
  well-integrated areas to weakly-integrated areas
  (WIAs)? generally slow and patchy, and growth
  orientation insufficient on its own, without
  investment for social protection.

26
Financial Allocations in WWF-Selected PRSPs
Percentage allocation
Niger WSS WRM 3 of PRSP Rural Dev?
Zambia 3.5
Tanzania 11
Uganda WS(S) Tripled in 3 years since 1999
Madagascar WSS (and WRM?) 4.2
Pakistan WSS WRM (Irrigation) 0.15 o.35 of GDP
Kenya WSS WRM (including major hydro?) 3.04 declining
Nicaragua WSS WRM 2.84 of HIPC little HIPC?
Vietnam Water not separately costed except Irrig. 13 of capital
Mexico-South Not costed objective is to redress anti-South bias
27
Targeting of Interventions under PRSPs

• Strategic Goals
• economic growth and/or poverty reduction
• information/analysis of poverty realities and
  growth opportunities
• Operational Objectives
• need clarity what is being sought, when
• eg. economic improvement of economic
  performance/production
• or poverty reduction but who/where are the poor?
  unserved/least served dispersed/isolated
  vulnerable
• balance between financial-natural-physical-social-
  human, as per livelihoods principles
• clear/robust performance criteria equity,
  sustainability, efficiency.

28
From PRSP Priorities to resource targeting
EXTERNAL FUNDS - Budget Support - Project
support
GOVERNMENT REVENUES - Tax and non-tax
RESOURCE ENVELOPE - resource projections -
budget guidelines and expenditure limits (MoF) -
line ministry expenditure proposals
MTEF - 3 years indicative resource allocation
plan
PRSP Priorities
PRSP Objectives
PRSPAction Plan -with costings
BUDGET -prepared -appraised -approved
Local Govt.
Funds release
Fundstargeting
T
Line Agencies
PRSP document
Budget formulation and execution
29
PRSPs and Budgeting

• Budget
• key public implementation mechanism of PRSP (and
  MTEF)
• whole cycle from start to finish typically takes
  3 years
• start, ideally, 1 year before execution 1
  year further year to prepare and audit accounts
• - budget cycle needs to be nested within
  longer-term policy and planning process
• time-lapse in practice for routine ME data to
  inform budget formulation use of periodic
  in-depth Public Expenditure Reviews (PERs)
• NB policy processes are outside the circle in
  the following diagram see second diagram
  below

30
Budget Cycle the theory
Annual Review of SWAP
10. Preparation of audited accounts
11. Approval of audited accounts by Parliament
9. State accounts prepared by MF
1. Resource Projections prepared by MF and
approved by Cabinet
8. Budget executed by line agencies
7. Budget appropriations voted by Parlaiment
2. Budget Guidelines and Expenditure Limits
circulated by MF
Government Donor Meeting
3. Line Agency expenditure proposals prepared and
submitted to MF
6. Budget approved by Cabinet and submitted to
Parliament
4. Proposals appraised by MF and negotiations
with line agencies
5. State budget prepared by MF
Donor Budget Meetings for SWAP
IMF Negotations
PER inputs analysis
Source Norton and Elson, 2002, Whats Behind the
Budget (p.8), ODI, adapted from Foster and
Fozzard, 2000, Aid and Public Expenditure A
Guide ODI Working Paper 141.
31
Linking Policy, Planning and Budgeting the
theory
(1) REVIEW POLICYReview the previous planning
and implementation period
(2) SET POLICY AND UNDERTAKE PLANNING
ACTIVITY Establish resource framework, set out
objectives, policies, strategies and expenditure
priorities
(6) EVALUATE AND AUDITPolicy activities
effectiveness and feed the results into future
plans
(5) MONITOR activities andACCOUNT for
expenditures
(3) MOBILIZE AND ALLOCATE RESOURCES Prepare budget
(4) IMPLEMENT PLANNED ACTIVITIES Collect
revenues, release funds, deploy personnel,
undertake activities
Source World Bank (1998), Public Expenditure
Management handbook (p.32)
32
Channelling of Expenditure under PRSPs

• What can go wrong? (pessimistic scenario)
• resource envelope does not match projections
• external funds are delayed/blocked
• public resources are applied off-budget
• donors withhold budget support in preference for
  off-budget (project support, bypassing national
  system)
• actual allocations by MoF do not match budget
  (eg. expenditure cuts political capture, eg. for
  different sector or strategic goal)
• funds releases to line agencies delayed by MoF
• decentralisation does not function to enable
  funds release to local government
• line ministries/agencies or local govt. change
  operational objectives
• line ministries/agencies or local govt. fail to
  analyse/plan poverty realities/targets, or fail
  to distribute funds as per their targets
• funds released to third parties are misapplied.

33

• WaterAid snapshot tests for equity and
  (social/financial) sustainability
• - recommendations from WatSan PRSPs project
  Phase II (2003-2004)

34
Making Scarce PRSP Resources for Water
Interventions Count - Plenary Discussion

• How may the water "sector" support better
  targeting of resources under PRSPs?

35
Strengthening Incorporation of Water Priorities
under PRSPs/CSPs Recall of Workshop Questions

• How may the water sector (including WSS and WRM)
  support strengthening of PRSPs, to further
  water-related poverty reduction objectives?
• What opportunities are there for advocacy/policy
  work relating to ongoing PRSP/CSP processes?
• - Actions, next steps

36
Why has Water not been better Represented in
PRSPs to-date?

• Institutional dispersion water sector often
  fragmented, with several institutions whose
  roles/responsibilities are unclear or
  overlapping
• Weak sector stakeholders in terms of capacity,
  individually or collectively, to identify and
  advocate policy reforms
• Donor dependence in many low-income countries,
  historic high level of donor funding for water
  sector (50-90) less incentive to engage
  actual engagement by water ministries and local
  government in budget/public expenditure
  processes
• Weak inter-sectoral links water sector
  inactive/ineffective in promoting knock-on
  benefits of water-related investments in other
  sectors (eg. health/education)
• Failure to link WSS WRM to development and
  growth as above PRSP analysis suggests, water
  sector needs to better link water-related
  actions/activities to economic growth
  development.

37
Making the Case for Water

• Integrated water strategies one document for
  clear, well-presented water case in each country,
  presenting unified proposals, supported with
  examples of best practice, and financially
  sound/sustainable mechanisms for implementing
  actions
• Water Audit drive IWRM strategy based on water
  audit, identifying/recording where/when water
  resources are available, their allocation
  distribution amongst different sectors/user-types,
  and mapping institutions roles/responsibilitie
  s
• Economic and development contribution since
  growth-based strategies constitute major PRSP
  element, alongside measures for social
  protection, water sector needs to further study
  and better articulate economic development
  benefits of investment in WSS WRM
• Value of Capacity-building chronic lack of
  capacity at local level the water sector (WSS
  WRM) offers great opportunities for decentralised
  capacity-building with benefits both within and
  beyond water-related agencies
• Public participation in local and national
  planning processes water is commonly recognized
  as a priority issue at local level, so key to
  strengthen local participation in policy
  processes
• ME devise simple clear performance indicators
  to guide targeting of water-related interventions
  and to track their links to, and impacts upon,
  other anti-poverty measures.

38
What opportunities are there for advocacy/policy
work relating to ongoing PRSP/CSP processes?
International

• Products
• - Scorecard Water initiatives critique NGO case
  studies WWF/ODI PRSP and CSPs study
• - Position summary (including a joint position,
  covering both WSS and WRM issues) for input into
  policy windows-
• (i) CSD 12 (April 2004 and 2005) (ii) Cotonou
  Mid-Term Review
• (iii) WB-IMF PRSPs Review in 2005.
• - Use indicators as drivers via UN JMP on MDGs
  (WaterAid on working group)
• - Use Irish-Dutch-UK Presidencies of the EU.
• Messages
• - MDG-PRSP inconsistencies
• - Diminishing aid levels
• - Poor targeting of resources in-country.

39
What opportunities are there for advocacy/policy
work relating to ongoing PRSP/CSP
processes?National

• - Use PRSP research to target countries
• eg. use IWGs priority countries assessment
  choose several countries
• of common interest to target for PRSP
  policy/advocacy work, where
• either the PRSP still to be prepared, or where
  PRSP review scheduled
• - Explore joint NGO capacity-building in
  recipient nations
• (eg. WWF-UK and WaterAid)
• - Work with key donor country agencies (eg.
  Nordics, UK) present the
• Water PRSPs assessments to them
• - Case Study of WRM resource flows to match
  WaterAids WSS
• resource flow studies (results of latter due
  by end March 2004)?

40
Strengthening Incorporation of Water Priorities
under PRSPs/CSPs

• Other possible actions-
• Development of an environmental sustainability
  snapshot (to complement WaterAids on
  social/financial sustainability.)
• Joint fieldwork to pilot and demonstrate, at
  local/district level, multiplier effects of water
  investments on food security, production, health,
  education etc.
• Further study of productivity benefits and
  opportunity cost in poor rural communities of
  water investments (eg. time-management dilemmas
  around fetching/carrying water versus time in eg.
  fields )

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WATER, POVERTY DEVELOPMENT

• THANK YOU