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Mutual accountability : From Paris Declaration to Hanoi Core Statement

Mutual accountability : From Paris Declaration to Hanoi Core Statement. Dar Es Saalam 11-2005. Vietnam: A big market with high GDP growth rate. Population: 82 million Stable political system and social security GDP growth rate (1990 – 2005): > 7% GDP growth of 2005: 8.5%. FDI: Some figures.

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Mutual accountability : From Paris Declaration to Hanoi Core Statement

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  1. Mutual accountability: From Paris Declaration to Hanoi Core Statement Dar Es Saalam 11-2005

  2. Vietnam: A big market with high GDP growth rate • Population: 82 million • Stable political system and social security • GDP growth rate (1990 – 2005): > 7% • GDP growth of 2005: 8.5%

  3. FDI: Some figures • 1987 – 2004: 5 500 projects with 48.5 billion USD capital; 3 500 projects in production and business activities • FDI = 20% of the total investment • FDI = 14.5% GDP • FDI = 50% exports • FDI = 740 000 direct jobs • FDI 2005: > 5 billion (previsions)

  4. Vietnam: ODA recipeipts(1993 – 2004) • Engagements: 28.4 Billions USD • Disbursements: 14.8 Billions USD • Sectors invested: - Poverty reduction; - Economic and social infrastructures (Transport, Telecommunication, power supply, Agriculture, Rural development, Health, Education, …)

  5. Vietnam: ODA receipts(USD million)

  6. Vietnam: Top ten donors(2002-2003, USD million)

  7. Constraints identified • Lack of an long term plan for ODA mobilisation and utilisation; • Lengthy decision making processes; • Deficiency in the legal framework; • Human capacity to execute ODA projects. • …

  8. Mutual accountability: why and when ? Concepts: • OECD: Mutual assessment of progress in implementing agreed commitments of donors and recipient countries on aid effectiveness under 4 aspects: Ownership, Alignment, Harmonisation, Simplication • Vietnam: In added: the division of responsibility based on riel context, conditions and capacities

  9. Mutual accountability: why and when ? Why and When ? • Needs on better and more effectiveness of ODA use • Differences on policies, objective, mechanism, methodologies of identifications, planning, implementing, monitoring and evaluation • Needs of change with volunteers: Opening, localisation and globalisation

  10. Hanoi Core Statement – The nationalisation of the Paris Declaration • Ownership: - Indicators: 5 years Socio-Economic Development Plan (SEDP) is finalised and effectively implemented, CPRGS principals are integrated - Targets to 2010: 5 Year SEDP targets are achieved

  11. Hanoi Core Statement • Alignment: Indicators and targets to 2010 + Donors assistance strategies are aligned to the SEDP and related national, regional, provincial and sector strategies (all donors) + Strengthening of PMUs (all PMUs) + Strengthening of building programmes capacities (100%)

  12. Hanoi Core Statement • Alignment: Indicators and targets to 2010 + Strengthening of Public procurement system (>50% of donors and >50% of aid flows) + Strengthening of Public financial management system (>50% of aid flows and donors channeling) + improve environmental and social safeguard (100% funded projects implemented to international standards and at least 30% using government systems

  13. Hanoi Core Statement • Harmonisation and simplification: Indicators and targets to 2010: + Fewer, better, core diagnostic and country analytical reviews (75%) + Common project cycle management tools agreed and used throughout the project/programmes cycle (> 50% of donors) + Coordination on policies and sector framework (75% of aid) + Donor delegation authority to country offices (75% of interventions)

  14. Hanoi Core Statement • Management for results : Indicators and targets to 2010 + Results framework developed and used to assess the performance of SEDP and sector programmes (DAC criteria and continuous monitoring)

  15. Hanoi Core Statement • Mutual accountability: + Periodic mutual assessment of progress (Annual assessment)

  16. Experiences 1- Division of responsibility • Donors: + UN institutions and Like Minded Donor Group : transaction cost + Partnership Group on Aid Effectiveness: public finance management, trade reform, … + WB and others: country assistance strategies + 5 Banks Group: Project management, harmonisation of procedures, financial management, … + Consultative Group for Vietnam (CG): forum for discussions on policies, strategies; evaluation of reform schedule and financing

  17. Experiences 1- Division of responsibility • Vietnam Gov: + Building sustainable country system + Revision of ODA legal framework + Establishment of ODA master Plan (2006 – 2015) + Monitoring framework + Simplication of procedures: Procurement and financial systems

  18. Experiences 2- Strengthening of Country procurement system - Assistance of Like Minded Donor Group + Revision of relevant regulation + Promotion of transparency and fair competition + Information system (bulletin and website) => Final law document to be adopted by the National Assembly

  19. Experiences 3- Strengthening the public financial management - Assistance of 5 Banks Group - Pilot exercise (4 sectors and 4 provinces) + Strengthening medium term expenditure planning + Streamline the country’s fiscal planning framework + Modernisation of state budget management => Final Decree document to adopt by the Government

  20. Experiences 4- Developing a common results-based monitoring framework - Assistance of UNDP and other donors + Design common indicators + 5 years Plan (2006 – 2010) + Software on evaluation and monitoring => The software on assistance projects on evaluation and monitoring transferred (9/2005)

  21. Lessons learned • Necessary of participation of stakeholders on every step of the reform • Every stakeholders would benefit from the development of the country’s capacity and the Gov. system regardless of funding sources or aid modalities • Donors and recipient country could look into real situation with concrete analysis before set down targets and performance indicators

  22. Steps to continue • Undertake a baseline study of donor operation procedures (cycle time, cost, schedule, …) • Sharing opinions between Gov and donors on the 5 years Plan • Action Plan on environmental and social safeguards (including projects/program preparation) • Donors to continue to develop and implement joint activities • Donors to outline their plan for decentralisation • …

  23. Thank you for your attention !

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