Building Capacity for Resource Mobilization

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Building Capacity for Resource Mobilization

• Improving the Financial Conditions for
  Implementation of the Basel Convention at the
  National and Regional Levels
• Dr. Tom Conway
• President, RFI

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Presentation Overview

• Recalling resource mobilization studies that the
  Basel Convention COP has already requested
• Reviewing key messages associated with
  environment-related multilateral financial
  mechanisms applicable to the Basel Convention
• Understanding the concept and importance of
  mainstreaming waste management issues in
  development assistance programming
• Identifying the typical elements of successful
  resource mobilization and programme/project
  management
• Proposed RM capacity building next steps

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Topic 1 Studies for the COP

• Mobilizing resources for a cleaner future
  implementing the Basel Convention
• Presented to COP 7
• Led to Decision OEWG IV/15 on Resource
  Mobilization
• Mobilizing Resources for a Cleaner Future
  responded to requests from Basel Convention
  Parties to enhance resources in support of
  implementation of the Convention. Parties raised
  concerns that resources available to advance
  Convention implementation fall far short of what
  is required, placing a serious constraint on
  their capacity

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Article 14 Study

• Recommendations/options
• Review Basel Convention Trust fund to bring it
  into line with requirements of the Convention
• Reorient Basel Convention Technical Cooperation
  Trust Fund around strategic priorities
• Maximize efforts to use current mandate of the
  GEF
• Approach GEF in context of GEF 5 for GEF to
  become a financial mechanism

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Mobilizing resources for a cleaner future

• Key strategies recommended
• Better preparing developing and EIT Countries to
  request and receive assistance
• Preparing the ground within financial
  institutions
• Working with other MEAs and international
  institutions to advance coordinated approaches

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Strategy 1

• Better preparing developing and EIT Countries
• Life cycle ESM of wastes and SMC is it properly
  articulated in country policy frameworks?
• Promote integration of ESM of wastes and SMC into
  policy frameworks
• Identify priority capacity building needs and
  gaps in context of global SD priorities

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Strategy 1

• Input Consistent level of effort over the short
  term
• Input Indicate anticipated level of effort in
  annual work plans seek contributions from
  countries
• Input Opportunities to use Regional Training
  Centres for training/sharing experiences
• Outcome Improved readiness for developing and
  EIT Countries to engage and work effectively with
  international and bilateral financial aid
  institutions
• THIS IS WHAT WE RETURN TO TODAY

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Topic 2Multilateral Financial MechanismsKey
Messages

• The studies that the COP has commissioned through
  the Secretariat have concluded on some basic
  messages about environment-related multilateral
  financial mechanisms
• These messages can be summarized as
• The Convention is inadequately funded relative to
  the necessities of its implementation
• This shortfall is most acute at the national
  implementation level, and within the regional
  training centres charged with facilitating
  national implementation and regional cooperation
  for implementation

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Multilateral Financial MechanismsKey Messages

• The Conference of the Parties could take steps
  internal to its own financial operations to
  address some of these challenges via its two
  existing multilateral trusts funds the Basel
  Convention Trust Fund (assessed contributions)
  and the Basel Convention Technical Cooperation
  Trust Fund (voluntary contributions)
• The Basel Convention, assuming adequate seed
  funding in its two trust funds, could also
  participate in partnership based, programmatic
  trust funds and help respond to cofinancing
  pressures (e.g the GEF)
• But, fundamentally, a major problem persists with
  the Basel Convention being orphaned from any
  major, predictable and sustainable multilateral
  financial mechanism specifically the GEF

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Multilateral Financial MechanismsKey Messages

• But, there are no silver bullets a multi-faceted
  approach to resource mobilization and financial
  mechanism strengthening is needed studies for
  the COP reinforce this message repeatedly
• And, that being said, understandably the GEF will
  receive a lot of attention because it is the
  largest environment-related multilateral
  financial mechanism
• The Basel Convention would be wrong not to seek
  to become more fully engaged with the GEF

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Multilateral Financial MechanismsThe GEF

• More engagement with the GEF can take two forms
• Working within the GEFs current mandate,
  operational programs and strategic priorities
• Working to have the GEF designated as a financial
  mechanism of the Basel Convention in context of a
  multifaceted approach to resource mobilization
  just mentioned
• But, there is no getting around it - enhanced
  capacities for the Basel Convention Parties, the
  Regional Centres and the Secretariat will be
  needed to give these options full effect

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Multilateral Financial MechanismsThe GEF

• Let me give you a sense of what I am talking
  about
• Because international mechanisms like the GEF
  fund only the incremental costs of global
  environmental benefits, the Convention cannot
  just claim global benefits, it must concisely and
  precisely identify where these benefits will
  occur and how they could be operationalized in
  the context of the financial mechanism (Basels
  GEF Operational Programme)
• Because, at least initially, the Basel Convention
  will work with the GEFs current mandate and
  focal areas, the Basel Convention must have clear
  plans as to how enhanced ESM of wastes will
  advance the strategic priorities of the existing
  focal areas Mobilizing Resource for a Cleaner
  Future gave a good start to that work, but not
  complete

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Multilateral Financial MechanismsThe GEF

• There must be better cooperation between waste
  management experts at the national level and
  their GEF focal points and national officials
  responsible for the files covered by the GEF
  programme focal areas
• There must be better coordination between Parties
  at the regional and global levels arguing for
  enhanced access to the GEF for waste management
  issues in the GEF Council and Assembly
• The COP of the Basel Convention must send a
  strong message to the GEF Council and Assembly on
  its own part likely too late for GEF 4, start
  now for GEF 5 , do not delay further
• Project design, proposal preparation, and
  programme/project management capacities must be
  significantly strengthened at all levels of the
  Convention access to GEF is no guarantee
  without quality

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Topic 3 Importance of Mainstreaming Waste
Management Issues

• However, the previous topic having been
  addressed, the reality is that far more money
  moves to developing and CEIT countries through
  official development assistance than through
  dedicated environmental financing channels
• This will be even more the case going forward as
  a result of the Millennium Declaration and the
  Millennium Development Goals
• As more money goes to development assistance
  programming such as the MDGs, where does this
  leave waste management issues?

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Importance of Mainstreaming Waste Management
Issues

• Financial pressures on donors are moving in the
  wrong direction from the point of view of
  building more or enhanced dedicated environmental
  funds
• The question for the Basel Convention therefore
  becomes what can the Parties and the Convention
  at all administrative levels due to show, and
  consistently argue for, the links between ESM of
  wastes and agreed development objectives,
  particularly the MDGs?
• Doing this requires enhanced capacity at all
  levels of the Convention based on the conclusions
  of our assessments to-date

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Importance of Mainstreaming Waste Management
Issues

• We know that there are strong links the
  Conventions studies have indicated this, as have
  other studies like the World Banks Toxics and
  Poverty, but concisely documenting these links
  clearly in a communications package and campaign,
  is absolutely essential there is no shortcut
• This campaign must then be carried forward in
  campaigns at the national level to convince you
  own political leaders and policy decision makers

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Importance of Mainstreaming Waste Management
Issues

• Why? because in the context of recipient
  country driven official development assistance
  programming it is vital that waste management
  issues appear in the development policy documents
  of your countries (PRSPs, EDPRSs, Country
  Assistance Strategies, Country Development
  Programming Documents etc.)
• Waste management issues will not be prioritized
  in negotiations between your governments and
  your development assistance partners without this
  mainstreaming or integration period!

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Importance of Mainstreaming Waste Management
Issues

• To do this Basel Convention representatives must
  have training and increase their own awareness
  about how development assistance planning
  documents are produced at the national level and
  how you can best influence the relevant planning
  processes
• Without training, it will be easy to get lost at
  sea in what appears to be, and is, a complex
  process
• The Secretariat should be assisting in this
  capacity building

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Importance of Mainstreaming Waste Management
Issues

• For agencies of government to mainstream their
  priorities in the overall national planning
  process (i.e. the PRSP or country assistance
  strategy process), it is particularly important
  to understand the various points of influence
  in the development planning process and cycle
• Several points of entry in the general stages
  of developing a poverty reduction strategy, for
  example, can help focus the range of possible
  priorities/initiatives
• Your work must be timed right within the typical
  3-5 year development planning cycle at the
  national and regional levels

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National Development Planning
Source UNDG Guidance Note to UN Country Teams
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COUNTRY
Analytical work by countries, partners
CEAs SEAs by WB partners
Data/Diagnosis
Priorities for Growth Reducing Poverty

• Participation
• Government
• Elected
• Officials
• Civil Society
• Private Sector
• External
• Partners

• PRSP/Strategy
• macro policies
• governance
• sector policies
• costing funding
• ME, indicators

CAS WB development assistance strategy
Existing Country Policies
etc.
Implementation
Loans / Grants
Other Development Assistance Strategies
Outcomes/Impacts
Source Environment Department World Bank
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Topic 4 Typical Elements of Successful Resource
Mobilization

• There is no successful resource mobilization
  without enhanced management capacities to
  administer resource mobilization activities and
  project design and delivery
• Much of this topic is parallel with sound
  management practices generally, but we need to be
  conscious of what to focus on and this requires
  training for all of us at one point or another
• It makes good sense to orchestrate such training
  at the regional level because some of these
  capacities should be maintained regionally at
  lower cost for the benefit of all countries of
  the region

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Typical Elements of Successful Resource
Mobilization

• But much improved capacities will also need to
  reside at the national level
• It is a partnership concept
• To start, it is advisable to focus on continuous
  improvement in key areas
• research, data gathering, management and analysis
  (social, economic and environmental analysis)
• policy analysis, policy design and coordination,
  strategic planning, interagency coordination
  mechanisms
• outreach and management of stakeholder
  relationships

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Typical Elements of Successful Resource
Mobilization

• project and programme design and management
• proposal preparation in approved formats
• financial management best practices for
  programmes and projects
• monitoring, evaluation and financial audit
  infrastructure (within the organization or within
  a partner organization tasked with these
  responsibilities as a service unit)
• Each of these capabilities constitutes a training
  module in the courses that are offered to help
  organizations to improve their resource
  mobilization and programme and project management
  capacities at regional and national levels

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Typical Elements of Successful Resource
Mobilization

• One major failure in donor assisted programme or
  project management erases many successespay
  special attention to your organizations internal
  capacities to deliver your portion of successful
  programmes and projects!

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Elements The Concept of Absorptive Capacity

• This also brings-up the important term of
  absorptive capacity
• In a competitive donor aid environment, recipient
  countries or organizations should seek to
  demonstrate strong absorptive capacity for
  development assistance
• Most organizations can identify a development
  problem - poverty, illiteracy, ill health, low or
  negative rates of growth but
• struggle to devise an appropriate policy and then
  transform the policy into a practical programme
  or project
• do not have the capacity to coordinate
  development aid and assert leadership (donor
  activism but recipient passivity)

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Elements The Concept of Absorptive Capacity

• As such programme or project financial assistance
  is taking place under conditions of weakness,
  usually in a piecemeal manner
• This is often viewed as a lack of absorptive
  capacity to use the provided, or potentially
  available, resources as intended with good
  prospects to achieve expected and sustainable
  results
• Fear that financial resources can spill-over to
  unintended uses or not achieve expected results
  is prevalent (corruption, inefficiencies etc.)

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Elements The Concept of Absorptive Capacity

• This can be used as a reason for limiting
  external or underutilized financial assistance,
  worsening an ongoing resource mobilization
  challenge
• Thus we must pay special attention to the
  capacities of our organizations to deliver and to
  communicate this capacity to our financial
  partners

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Elements - Successful Proposal Development

• Proposal development work is an expertise in
  itself, requiring capacity strengthening and the
  systematic maintenance of that capacity within
  organizations

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Elements - Successful Proposal Development

• Why? - because proposal preparation processes can
  be a costly undertaking often borne in large part
  by the project proponent
• It is also very important to lower the
  transaction costs of your financing partners, to
  encourage a positive working relationship that
  both parties value
• If unnecessary mistakes are made at the proposal
  development and negotiation stage, it will not
  encourage confidence and trust among the various
  partners

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Elements - Successful Proposal Development

• The typical elements of proposals include
• Proposal summary
• Programme or Project rationale
• Project design
• Management and implementation
• Monitoring, review and reporting
• Risk factors to be monitored and contingency
  management plan
• Budget itemization and explanation

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Topic 5 Next steps

• More work is needed to clarify the global
  benefits of the Convention and to make a case for
  support in this regard this should be done
  quickly
• RMS training in the regional centres should start
  quickly
• Advisable to take a train-the-trainers approach
  so participants can return home to train others
  5-day course
• Complete training in each of the regional centres
  bringing representatives from Parties within the
  region to the training
• But, first start with a pilot training session in
  which prepared training material is tested -
  invite all Directors of regional centres and
  designated regional representatives of the
  Parties to this training

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Next steps

• Receive feedback from the pilot, and revise the
  training materials and approach as needed
• Roll-out training in all the regional centres at
  a pace dictated by available finances
• Encourage support from bilateral donors via the
  Technical Cooperation Trust Fund as a strategic
  priority in the RMS category