Greening development? - not just “aid”

1. Greening development? - not just “aid” ODI, 23 Sept 2008 Seán Doolan Environment adviser DFID Africa Division

2. Summary • Where do environment & climate change fit in donor priorities? • How raise profile – political & economic debate? • How support national & regional institutions & processes? • How engage country leadership in processes? • How integrate with development more broadly? • What approach? • What support? • How resource?

3. Insights • “Hard to be a long-term donor and see so little progress … or long-term recipient and not see this as entitlement” • Environmental programmes as part of “high politics” & “party politics” • Bilaterals more responsive to global & regional significance, policies & poverty • incentives & procedures? • Environmental screening not emphasised for bilaterals • opt outs, reliance on multilaterals, over-reporting • Delegation to multilaterals – scaling up, CC • Climate change to integrate environment & development

4. Reservations • Few references to donor documents & evaluations • Outcome-based “conditionality”? • Multi-donor trust funds -“off balance sheet finance”? • Environmental information – CITES not indicative • Neglects role of EC/EU in setting norms

5. Reservations • Predates shift towards general budget support • Sectoral allocations do influence aid emphasis • Income & population relate to MDGs • PLAID & aid effectiveness? • Coding, duplicate reporting, proxy indicators • Terminology, practitioners • Do not rectify all inconsistencies in reporting …

6. Observations – governance & political economy • Actors & institutional landscapes • Bargaining power of recipients, esp. BRICS • Policy instruments & procedures, political champions • Donors raise issues, local politics determine outcomes • “Windows of opportunity, strategic coalitions, alter incentives, redistribution of capabilities” • National development planning essential • Individuals & happenstance important

7. “Environment” in development cooperation - after 2000 • MDGs – expansion of “neutral aid” • poverty-environment linkages failed to gain traction • MDG 7 – now reported as “water” • Much in terms of safeguards, not investments • different to domestic environmental expenditure • Shift towards programmatic funding • General & sector budget support • Increase in social sector spend • Harmonisation & alignment (Paris & effectiveness) • Climate change

8. “Environment” – the future Economic growth & human development • NR-driven growth & conflict • Resource scarcity & competition (BRICS, climate change, fragile states, chronic poverty) • Underpinning delivery of other objective Need realistic integration • Reframing language, backstaging • Networks, coalitions & evidence • Public audit & accountability mechanisms • Niche actors & champions • Inter-institutional/sectoral linkages?

9. “Environment” – future drivers • Climate change • Political momentum • Environment marginalised by development architecture & instruments • Need to re-engage on both sides • “Environment” as driver of governance shifts? • “Environment” as result of shifts in governance & political economy?

10. Health– India, infection management Service delivery • nosocomial infections (MRSA …) • 63% injections unsafe in India • 2 million new Hepatitis B cases a year • 1.5 million deliveries PHCs, CHCs • 2,700 blood storage facilities • 280M AD syringes • 615 t needles • 550,000 outreach sites • Indian experience – WHO transfer

11. 1993 630,000 primary schools 44% with water supply 8% with sanitation 2003 1.12 million primary schools 70% with water supply 51% with sanitation India – school water & sanit’UNICEF partnership • Enrolment & retention figures • Morbidity, time • Teacher motivation

12. NRE context in Ghana NRE policy trade-offs - underestimated consequences • GoGh Strategic Env Assessment neglected Rethink policy dialogue & operational support to NRE • Inconsistent consideration of NRE in-country • Shift to budget support, harmonisation & alignment; country priorities & systems • Disengagement from NRE policy support (PPG7 analogy with Brazil) • NRE marginal to "on-budget" support, aid instruments & development policy

13. Government & donor alignmentNew aid architecture, JAS = 14 donors, 90% aid Growth & Poverty Reduction Strategy II Development Partners & GPS coordination Donor Ghana Partnership Strategy Joint Assistance Strategy (JAS) Donor Donor Donor Multi-Donor (General) Budget Support Prog Prog Prog

14. NREG preparation process(not linear) Government of Ghana Finance (MoFEP) Analytical work Ministries & Agencies High level committee Ghana Poverty & Reduction Strategy II Budgets & fund flows Policy matrices Ghana Joint Assistance Strategy Policy Dialogue – General Budget Support Missions, virtual networks Civil society NREG NREG task team ENR Sector group Development Partners

15. Donor coordination on NRE 2001 Coordination • projects around NR Management Programme • disbursement focus, differing project requirements 2004 Sector group started • information exchange 2005 Economic & Sector Work • discussion at different level • economic case, not " protection" 2006-7 Country Environmental Analysis • platform for dialogue during workshops 2007-8+ NRE Governance sector budget support

16. NREG - evolving mix of financing instruments? Multi-Donor Budget Support £€$ - MoFEP Sector-aligned programmes £€$ - Ministries Sector budget programmes £€$ - MoFEP & Ministries Projects £€$ - Sector agencies 2010 2015 2006 Sustaining progress Consolidating accountability Shift from enclave projects

17. Paris linkages - ownership • Anchored in sector dialogue & issues • Finance at centre, coordinating line Ministry inputs • Sub-sector matrices • Letter of Development Policy as overall statement • Nat’ Dev’ Planning Commission guidance on sector planning • Medium-Term Expenditure Frameworks • public financial management focus • analysis & planning on financial flows - budget cycle

18. Paris linkages - alignment • Single set of indicators, set by line Ministries & Agencies • Finance commissioning related studies using country procurement mechanisms • Multi-year budget commitment, annual assessments • Flexibility in evolving indicators & targets • Reinforcing country sectoral & national planning & systems

19. Paris linkages - harmonisation • Donor procedures differ, only some flexibility • Joint conclusions from joint assessments? • Reconciling HQs with in-country offices & processes • Active sector group dialogue key • Anchor in dedicated staff & in-country processes • Division of labour – NRE expertise can disappear • Linkage to general budget support dialogue problematical • General budget support useful for existing policies, not reform

20. Paris linkages - reflections High transactions costs in set-up • for both Government & development partners • Weak strategic planning, M&E & financial systems Quality of input • Bringing NRE agencies to speed with aid instruments • Policy matrices & indicators – sector plans vs dialogue • “Matrix fatigue” & “guided ownership” • Civil society engagement sensitive

21. Paris linkages - analysis Institutional planning & budgeting • Credibility of medium-term strategic planning & budgeting • Effectiveness of NRE country systems & processes to address development agenda Analytical work on NRE • Scarcity of analytical work to make economic case for NRE • Scarcity of institututional or expenditure analyses