Lessons from Ethiopia’s Productive Safety Net Programme & Aid Effectiveness

1. Lessons from Ethiopia’s Productive Safety Net Programme & Aid Effectiveness

2. Productive Safety Net Programme & Aid Effectiveness – Country Ownership • June 2003: PM Meles launched the multi-stakeholder New Coalition for Food Security;  • 2003-2005: The PSNP shifted from “project” approaches of individual donors to a programmatic aid modality: • donors finance a common programme, • Government systems used to increase ownership, • aid fragmentation & inefficiency reduced. • November 2011: the PSNP is a core Government programme using Government systems and personnel with coordinated donor support. It uses: • Government Public Financial Management system • Government Sector Ministries’ systems CHALLENGES: Since 2003, there has been a political shift towards ‘growth & transformation’ of the country’s economy. This change in development emphasis over time is related to the country’s evolving political approach. Without ensuring sustained political commitment to a programme, country ‘ownership’ challenges will emerge

3. Productive Safety Net Programme & Aid Effectiveness - Alignment • PSNP is a government programme which is fully aligned with government policy and strategy • It has one objective, one strategic planning & results framework, one accountability mechanism, one M&E system. • Aligned donor resources to the PSNP through: • the use of a World Bank- administered Multi-Donor Trust Fund (MDTF) and pooled Government accounts.; • Another MDTF ensures harmonized technical advice & inputs to Government (Donor Co-ord Team) CHALLENGES: Systemic constraints mean that not all government systems are able to deliver the PSNP to the required level of performance – and this compromises results Balancing an ‘ideal’ response to the use and development of government systems while still delivering the PSNP to protect the poorest in Ethiopia is a challenge

4. Productive Safety Net Programme & Aid Effectiveness - Harmonisation • The PSNP is a model for donor harmonisation and features a high degree of coordinated action between its 10 donors. • Two main factors can explain this evolution of donor relations: • The need to work together. PSNP is a radical departure from previous approaches to addressing food insecurity in Ethiopia through the emergency relief system, which was not working adequately and another approach was urgently needed • The introduction of coordination mechanisms to bring donors together more effectively • The level of organisation achieved by donors coordinating their actions, reduces government transaction costs considerably compared with alternatives CHALLENGES: Building and maintaining a suitable level of harmonisation is critical to success - but takes time and the more donors there are to harmonise the longer it takes.

5. Productive Safety Net Programme & Aid Effectiveness – Managing for Results • The PSNP has an elaborate system for managing for results: the routine government system supplemented by some specific additional measures. • The design for PSNP was entirely based around a log frame development process shared between Government & donors: • Outcome/impact level data are investigated through regular impact surveys • Activity/output level data are investigated through Regional Information centres • Three key joint programme oversight mechanisms: • The Rapid Response Team mechanism to allow a field-based reality check on specific issues that are felt to need investigation • The Joint Review and Implementation Support mission is a 6-monthly review looking at Activity-to-Outcome level progress. • The Joint Strategic Oversight Committee is the higher level decision-making body in which Ministers and donors make binding agreements on strategic issues CHALLENGES: How to ensure that an M&E system which is based on a sample and covers very diversified livelihood patters provides a complete overview of performance How to ensure that issues without strong political interest from Government, but strong interest from donors, are also managed effectively.

6. Productive Safety Net Programme & Aid Effectiveness – Mutual Accountability • Mutual accountability in the PSNP is a work in progress. • What is the mutual understanding of a “partnership” when viewed in the political context: • equal partnership? • Junior and senior partners? • The response to this situation from both donors and government has been pragmatic, and has followed a strategy of incremental change. CHALLENGES: How to ensure that political agendas do not lead to a lack of clear evidence-based discussion and a lack of transparency on conveying government thinking to its donor partners.

7. Lessons from the PSNP for aid effectiveness (1) • Maximum programme effectiveness for the PSNP is achieved by departing in places from a strict interpretation of the Paris Principles: • This implies a trade-off between shorter-term programme effectiveness and aid effectiveness. • The effect of this trade-off on longer-term development effectiveness has not been studied.

8. Lessons from the PSNP for aid effectiveness (2) • A number of specific lessons may enhance programme and system effectiveness & efficiency: • The extent of government ownership can change over time and also may be variable across Government systems • A pragmatic approach to alignment goes beyond alignment to system improvement • Dedicated donor coordination support leads to effective engagement with government • The scale and nature of the PSNP is only possible through a harmonised approach • Government transaction costs have been significantly lower due to donor harmonisation • A single strategic planning and M&E framework has brought more focus to agreed priorities and approaches • The improved data specifically required by donors has meant better decisions are made • An incremental approach and ongoing donor engagement with government has helped experience-based learning and the identification of opportunities for improvement • Joint oversight mechanisms help decision-making for planning and implementation • Mutual accountability requires a shared understanding and expectation of the nature of the partnership between government and donors