ODA in the New Member states

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ODA in the New Member states

• ODA Legal and institutional framework
  flexibility in ODA Management
• Some initial thoughts from a back bencher

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Chris Ormalm

• Internat. Economics - Internat.Project Mgmt
  Financg.
  - Development Economy
• Private Companies 4 years ODA 18 years
• NGOs Sida NGO Dept SALA IDA IPM
• International long-term Postings (Zimbabwe,
  Cambodia, Namibia, Czech Republic)
• Why Central Europe? Why for Gods sake - am I
  standing here?

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Definition of ODA

Bilateral or multilateral assistance addressing
poorer countries with the main ambition to
eradicate poverty, increase the rights of the
citizens and increase their dignity. It also
includes responding to urgent emergency or
humanitarian needs.
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Matter of Importance!!!!!!!

• In 10 years time the ODA contribution from the
  nations represented in this room will constitute
  a considerable part of total European Union ODA!
  If handled properly it could make a change for
  millions of people!
• Get it right from the start!

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Why are we here?

• New MS are changing fast
• - Member of the Club (EU) WELCOME!!!-
  Getting more International
• - Economy Growing LOTS OF MONEY
• New MS have to benefit the poor in the best
  possible way
• - ODA Increasing (Obligation 0,33 of GDP
  in 2015) - New Field Institutionally -
  Generally, fast Changes in NM - New ODA Agency
  to be established
• LEGISLATION
• - Legislative reasons, - Control reasons
• - Institutional reasons (The legislation
  backbone)
• FLEXIBILIY ODA in practicereality!

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• Imperfectionism
• Non-predictability
• Ad-hoc
• Practical things like illiteracy, non-education,
  no good communication
• Some phenomena not understandable to us
• Different Cultural, Social and Ethical values
• The more dirty, corrupt, non-predictable and
  vulnerable a country is ? The more important is
  the need!
• The main reason we are there is THOSE THINGS
  REQUIRED FOR INSTITUTIONAL AND FINANCIAL CONTROL
  DO NOT WORK PROPERLY!)
• .ORSHALL WE WORK IN GERMANY!!!!!!!???????????

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Main Needsto agree upon,,,,

• Financial Control and Institutional set-up for
  and ODA System
• Maximum Flexibility to address the needs of the
  poor -- imperfection!
• Make the best use of funds in order to MAKE A
  CHANGE!
• This is our Baseline!!!

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Main Assumptionsto agree upon,,,,

• Financial Control and Institutional set-up for
  and ODA System
• Maximum Flexibility to address the needs of the
  poor -- imperfection!
• Make the best use of funds in order to MAKE A
  CHANGE!
• The actors in this room are here for the believe
  in good ODA
• Commitment Agreement on a common agenda in order
  to try to elaborate on a best solution.
• Dare to confront your first thoughts by
  searching for alternatives!High in the
  Ceiling

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The Swedish ODASystem

• including the Support to
• Non-Governmental Organizations

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Sweden
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Swedish features

• Decentralization/Delegation of authorities -
  Assumption 1 Higher competence the closer you
  get!
• - Assumption 2 If you leave people with
  responsibility they take it, if you
  command them, they dont!
• Small Ministries ?? Many Authorities.
• Strong believe and trust in Authorities Public
  Administration
• Too much system thinking
• Strong support from Citizens for ODA
• Small International Country Many persons
  travel, live abroad

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.Swedish features cntd

• NGDOs supported by goverment but stand free.
• Stability, Peace and Consensus ? Continuity
  (Few changes!)
• Private-State deal
• Comparatively little legislation Other
  Methods.
• Few hierarchies, straight communication (You
  reform!)
• Balance Sheet mentality (Economics, Football)
• Boring, professionally oriented, structural and
  functionalistic (Systems ?? People)
• Rich Welfare Countries afford more.

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Hierarchy of Authorization

• No Specific ODA Legislation
• Politics for Global Development (PGU)
• General Ordinance for all Public Authorities
• Ordinance for Sida (Instruction)
• Annual letter of Appropriation ( Budget)
• Country Co-operat. Strategies
• Sida General Guidelines, Strategies at Work
• Department Guidelines (Strategies Policies,
  studies)

• Parliament
• Government Office
• MFA
• MFA/Sida (December)
• Everybody every XX year
• Sida HQ (Board)
• Departments

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ODA Budget Planning

• Separate Budget Line (No 7)
• Annual Planning Cycles
• Three Year budgeting (Prognosis)
• What is not contracted has to be repaid.
• Parallel Tracks Operational Delegation
• Financial Delegation
• Programme officers register (Plus)

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Line Department Procedures

• Regional Dept - Sector Dept - Embassies
• PRSP/Country Co-operation Strategy etc
• Request from South/Gvmt Discussions
• Feasability Study (Procurement first)
• Procurement Procedures for Operations
• Contract Sida Std Conditions..
• Inception Report Operations-
• Assessment Evaluation
• Audits

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Tendencies ODA in General

• Budget Support
• Concentration
• Post Conflict focus
• Donor Co-operation (Basket funds etc)
• In southern hemisphere and between donors.
• Eradication of Poverty back on the top.
• PRSP is King.sorry Queen
• Coherence (areas, finance-socio economics)

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Support to Civil Society
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Non-Profit Legal Codex

• Legislation on Idealistic Organization (VBOs)
• - Can have incomes from books etc
• - Certain rules of objectives and activities
• - Audit Control (Plain or Advanced)
• - Membership control regulated
• - No Tax regulations as long as money is
  getting into activities.
• - 90 Accounts
• Economic Associations (Ek förening)
• Private Personal Companies (HB)
• Private Companies (Share Holding Company)

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Sida SEKA Department

• NGO Division
• - Framework Support- Development Education-
  Political Parties
• Humanitarian Assistance Emergency Rf
• Sida Civil Society Center
• Admin Back-up

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Framework Organizations

• UMBRELLAS/PLATFORMS
• LO/TCO Union
• Sw. Mission Council
• Sw Co-operation Org
• SHIA (Handicap Org)
• OPC (Social Democrat)
• Forum Syd (Platform)

• ORDINARY NGOs
• Sw Red Cross ()
• Save the Children
• Plan Internat.
• Pentacostal Chc
• Lutheran Church ()
• Africa Groups
• UBV
• Diakonia

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Sida NGO DivisionRegulatory Instruments
Control

• Framework Agreement (Contract) 5 year contract,
  3
  year budget.
• Sida General Conditions for Support to NGDOs
• Sida Guidelinnes to Sida NGO division Support
• Ex-ante/Ex-post control system
• Dialogue Quarterly and annual meetings
• Samples Field visit
• Various joint working groups Long-term
  Coherence
• Ordinary Audits of Organizations Accounts
  (Required in Conditions)
• Organizational/System Evaluation Audits
• Capacity Studies
• 90-Accounts

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What is in the documents?

• General conditions (Procurement, Audit,
  Documentation, Separate Bank Acct. WHAT?
• Guidelines (Guiding Principles, Roles of
  Actors, Procedures.HOW?)
• Contracts - Binding agreement - Specifying
  exact terms, dates, input, obligations,
  frequency of meetings
• - Specific adaption to circumstances
• Constant procedure of updating the templates!

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Finances

• Request for funds on a quarterly basis
• A condition Money to be requested in accordance
  with needs No high liquidity
• Reservations- Three year budget
• - First two years no problem
• - Third year..

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Tools Instruments

• Project/Programme Support (90)
• Volunteer grant
• Trainee Grant
• Exchange Programmes
• Development Education
• Admin top-up 8-9,5 (New Guidelines 8 plus
  special contribution to Umbrellas)

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Tendencies NGO Co-operation

• Civil Society wider context (Popular
  movements.to professional NGOs)
• Advocacy Service Delivery Complexity
• From NONGO? SONGO Competencies
• Globality
• Projects initated in the South
• From activity to impact. (The good intension vs
  Agents of Change)
• From Project to Programme
• From donor dependancy to mutuality
• Interrelation with Government Public Admin.
• Correlation academic research and onthe field
  experience
• Too little European Co-operation

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Questions

• Do you have separate legislation for non-profit
  organizations? Co-operatives etc?
• Can you collect funds anytime, anyway you want?
• Can an NGO sell African good with a profit in
  your country?

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