POIPSOFJ SLJ

1
__________________________________________________
______ Harmonization
Alignment The AfDB Experience
in Country Analytic
Work __________________________________
Country Analytic Work (CAW) Workshop June
2005 Washington DC
OPERATIONS POLICIY REVIEW DEPARTMENT (POPR)
2
Overview of Presentation_________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__

• The AfDB Supports HA because.
• 2. Objective of the AfDB HA Agenda
• 3. Early AfDB Interventions to Promote HA
• 4. Present AfDB Activities to Promote HA
• Institutional Activities
• Country-Level Activities
• Global/Regional Activities
• 5. ADB Experience with Country Analytic Work
• CFAA
• CGP,
• CPAR,
• Convergence Mapping

3
The AfDB Supports HA

• because lack of harmonization.
• Undermines legitimate country ownership and
  leadership
• Increases transaction cost (about 5 of ODA or
  3.5 billion per year spent to deliver
  development assistance)
• Weakens country systems and strains local
  capacity
• Reduces development effectiveness
• Erodes public support for national development
  agenda.

4
Objective of the AfDB HA Agenda

• Strengthen country ownership government
  leadership
• Align donor policy, procedures, and practice with
  national PRS, priorities, processes, and systems
• Reduce transaction costs imposed by donor
  requirements
• Strengthen capacity of national systems and
  procedures
• Enhance development effectiveness to achieve MDGs
• 6. Ensure Mutual accountability between donors
  and RMCs

5
Early AfDB Interventions

• THE OECD-DAC
• Participation in OECD-DAC Task Forces that
  produced Good Practices Papers (GPP) on
• i) Donor Cooperation ii) Country Analytic Work
  iii) Public Financial Management iv) Reporting
  Monitoring v) Financial Reporting Auditing
  vi) Delegation Cooperation vii) Joint venture on
  Managing for Results.
• MDB WORKING GROUPS
• Participation in thematic MDB WORKING GROUPS on
  
• i) Financial Management ii) Procurement iii)
  Environmental and Social Safeguards iv)
  Evaluation Cooperation v) Governance Capacity
  Building vi) Disbursement

6
Current AfDB Activities

• Three Levels of AfDB Activities
• 1. Institutional Level Activities
• 2. Country Level Activities
• 3. Regional Global Level Activities

7
Institutional Activities

• Disseminate global consensus (the Rome
  Declaration, Marrakech Consensus, Paris
  Declarations) to RMCs, the Board, Mgmt., Staff
• Sensitise the Board, management, and staff about
  implications of harmonization, alignment, and MfR
  on Bank operations
• Review Bank policies, procedures, incentives, and
  practices to simplify and streamline as per GPPs
  (RB/CSPs, PRSP, JAS)
• Strengthen coordination capacity in POPR and
  capacity in operations, TWGs, Country offices
  to implement GPPs
• Revise and update AfDB HAMfR Strategy, and
  Monitor and Report on implementation progress,
  challenges, and lessons

8
Country-Level Activities

• Greater harmonization of Country Programming with
  other partners and alignment with RMC priorities
  through CSPs/PRSPs
• Technical financial assistance to RMC to
  finalize HA Action Plans and PRSPs(Uganda,
  Mozambique, Ethiopia)
• Sector/Thematic collaboration on HIV/AIDS, Water
  Sanitation, Social, Agriculture,
  Infrastructure, Financial Sector Capacity bldg
• Enhancing role of Country Offices to support RMC
  level activities
• Greater use of Common Arrangements, Joint
  Diagnostics and Assessments (Co-financing, DBS,
  CAW, JAS, RAS, SWAp, JAI, CAF, CPAR, CGP,
  standardized procurement documents, MTEF,
  harmonized evaluation procedures, etc)

9
Global Regional Activities

• Facilitate dialogue build consensus on best
  practices and good principles through regional
  foras (Addis Ababa, Marrakech, Tunis, Dar es
  Salaam)
• Support RMC level implementation of global
  consensus and GPPs
• Participate in HAMfR Technical Working Groups
• Contribute to information sharing via ICT
  platform (country analytic web sits
  harmonization results web sits)
• Collaborate with partners to develop indicators
  and targets monitor and report on country level
  implementation progress
• Lead the organization of regional follow-ups and
  dissemination efforts
• Support regional initiatives (NEPAD, SPA,
  COMESA,WAEMU, ECOWAS, SADC)

10
Country Analytic Work

• Guiding Principles, to the extent possible,
• Reinforce the ability and willingness of RMCs to
  own externally supported programs and strengthen
  their internal accountability
• Avoid duplication and reduce RMC administrative
  burden by rationalising stock and application of
  diagnostic tools (common use)
• Design and implement CAWs in a way that will
  reinforce existing RMC institutional capacity and
  build new ones
• Promote policy coherence between donors and
  partners through systematic sharing of diagnostic
  tools and dissemination of findings
• Share information and findings with all
  interested parties

11
AfDB Experience with CAW

• Country Financial Accountability Assessment
  (CFAA)
• Diagnostic tools designed to enhance knowledge
  about the strength and weaknesses of RMC public
  financial management and accountability
  arrangements, and efforts to improve them
• Since 2002, the AfDB has participated in eleven
  CFAAs, with Govt. World Bank donors (UNDP, EU,
  DFID), more planned for 2005
• The scope of CFAA partnership covers conducting
  the review disseminating review findings post
  review Action-Plan and review updates
• CFAA findings inform the preparation of CSP, CGP,
  CPAR, etc.

12
AfDB Experience with CGPs

• Country Governance Profile (CGP)
• Launched in 2002 as diagnostic tools to collect
  baseline governance information to appraise
  governance-related risks and opportunities, and
  agree with RMCs on reform priorities and a
  roadmap
• The scope of CGP is defined by the five
  governance priorities in the AfDB policy
  Accountability Transparency Legal and Judicial
  Reform Combating Corruption and Stakeholder
  Participation
• CGPs integrate findings from other diagnostics,
  and its finding lead to policy dialogue on
  governance reforms and follow-up Plans
• To-date, AfDB has participated in fourteen CGPs
  in collaboration with the Govt, UNDP, ACBF five
  are planned for 2005 discussion is underway with
  the WB and DFID on future undertakings

13
AfDB Experience with CPARs

• Country Procurement Assessment Review (CPAR)
• A diagnostic tool to examine transparency of
  procurement systems, compliance with accepted
  practice, and capacity of regulatory bodies. Its
  findings lead to RMC dialogue and development of
  Action Plans.
• Ownership, Participation, Partnership guide
  preparation of CPAR the review process involves
  three-missions (launch, principle, validation)
  final output is submitted to Govt. and
  peer-review before circulation and product is
  integrated with other fiduciary ESW.
• In recent years the AfDB has collaborated with
  the World Bank to carry out six CPAR, and
  additional review are under consideration

14
MAPPING CFAA CGP CONVERGENCE
Opportunity For Convergence
Opportunity For Convergence
CFAA
CGP (Five Key Elements)
CFAA
CGP (Five Key Elements)
Transparency
High
Transparency
High
Accountability
Medium
Accountability
Accountability
High
Combating Corruption Money Laundering
Combating Corruption Money Laundering
Low
Medium
Participation
Low
Participation
Low
Legal and Judicial Systems
Legal and Judicial Systems
Low
Low
15

• MAPPING CPAR CGP CONVERGENCE

Opportunity For Convergence
CPAR
CGP (Five Key Elements)
Transparency
High
Accountability
Medium
High
Accountability
Combating Corruption Money Laundering
Medium
Legal Judicial Systems
Medium
Participation
Low
16
Early Lessons in CAW.

• Enhanced use of JAS RAS will create increased
  demand for CAWs
• Given their specialized and thematicfocus, CAW
  findings are most meaningful when viewed jointly
  and as complimentary products
• CAWs are leading to greater consensus and
  adoption of common diagnostic frameworks,
  benchmarks, and non-compliance remedies
• The timing and process of CAWs need better
  coordination and sequencing with one or more ESW
  and diagnostic products
• CAWs need better harmonization and
  rationalization (CGPs, WB Governance
  Institutional Assessment, and the NEPAD/APRM)
• CAW effectiveness requires better harmonization
  of rules, policies, and statutory requirements
  (Article of Agreement on the origin of goods and
  services)

17
Early Lessons in CAW (cont.)

• The WB drives CAWs, with little ADB involvement
  upstream in the planning timing of CAWs, and
  in post-review follow-up activities
• Presentation of CAW products to the respective
  Bank Boards and building joint institutional
  ownership requires further improvement
• Resource constraint (financial human) and
  organizational structures (lack of field
  presence) is curtailing AfDBs role in CAWs
• Working relations between MDB staff needs to
  improve the through joint training and team
  building efforts (e.g., current ADB/IMF/WB staff
  exchange)

18

• THANK YOU