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By Sibry TAPSOBA Head, African Development Institute November 16-17, 2009 – Tunis, Tunisia

Challenges and Perspectives in the Financing of Capacity Development New Approach Charting the Way Forward. By Sibry TAPSOBA Head, African Development Institute November 16-17, 2009 – Tunis, Tunisia. Table of Contents. 1. Background 2. The concept of CD

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By Sibry TAPSOBA Head, African Development Institute November 16-17, 2009 – Tunis, Tunisia

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  1. Challenges and Perspectives in the Financing of Capacity Development New ApproachCharting the Way Forward By Sibry TAPSOBA Head, African Development Institute November 16-17, 2009 – Tunis, Tunisia

  2. Table of Contents 1. Background 2. The concept of CD 3. Capacity Development effort in Africa 4. The Bank’s involvement in CD 5. Some emerging lessons and best practices

  3. Background (1): Sluggish economic growth since the ‘80s

  4. Background (2):Institutional, human, and policy-related factors explain much of the growth sluggishness Some of the factors explaining slow growth in Africa: • Insufficient human capital; • Inappropriate policies; • Destructive and disorganizing conflicts; • Insufficient infrastructures; • Low economic integration; • Weak institutions; and • Deficient governance.

  5. The concept of CD (1): What is capacity? • Capacity: • Does not have a generally agreed definition; • But it is broadly considered to mean the combination of individual competencies, collective capabilities, assets, knowledge, and relationships that enables a human system to create value. • Capacity Development: The process of enhancing, improving and unleashing capacity; it is a form of change which focuses on improvements. • Capacity issues: A shorthand way of referring to both capacity as an outcome and capacity development as a process.

  6. The concept of CD (2):Capacity matters • Capacity has been deemed important since the emergence of development as a discipline and practice; • In the 1990s: renewed recognition of importance of CD in Africa (capacity was viewed as the missing link in Africa’s development); • The Paris Declaration on Aid Effectiveness and the Accra Agenda for Action have emphasized the centrality of CD to development effectiveness. • For the past decade or so, as much as 25% of ODA has been allocated to Technical Assistance, a proxy often used for CD effort (OECD).

  7. The concept of CD (3): Shifts in Approaches to Devlpt have led to changes in CD Strategies • 1960s-70s: - Development = volume of investment and know how • - CD strategy: focus on formal education & infrastructures • 1980s: - Efficiency, rather than Volume of investment matter the most • - CD strategy: focus on organizations, resulting in SAPs. • 1990s: - Development = sound institutions (as policies are rooted in institutions); • - CD strategy: get institutions right (result: governance reforms) • Late 1990s to-date: - Development = knowledge & learning • - CD strategy: focus on knowledge management

  8. The concept of CD (4): CD is difficult to measure • There does not exist any straightforward way of measuring capacity and capacity development; • The international development community most often refers to Technical Assistance to estimate capacity efforts; • However, TA and CD differ: • TA is often viewed as a substitute for real capacity building; • TA does not include local efforts to enhance capacity.

  9. CD effort in Africa (1): SSA is the world region that receives the highest share of TA • SSA is the only region with increasing share of world TA since the 1990; • About half of the world’s TA is going to Africa

  10. CD effort in Africa (2): Africa is the region with weakest capacity in the public sector • SSA’s capacity is particularly weak in public sector management and institutions, followed by policies for social inclusion and equity. Data used: CPIA Indexes for 2008; source: World Bank; 1 – 6 scale

  11. CD effort in Africa (3): TA to Africa is unevenly distributed • SSA’s share of TA to Africa has been increasing since the 1980s; • 5 North African countries receive about 35% of TA going to Africa; • In recent years TA to SSA, LICs, LDCs, HIPC, and Fragile States has increased; that to MICs has decreased

  12. Bank’s involvement in CD (1): The Bank uses many channels and instruments to support CD, but needs to scale up its effort • Most Bank departments have strategies that include a CD agenda • Most initiatives hosted by the Bank carry out CD activities (e.g.: Fund for African Private Sector Assistance—FAPA; African Water Facility; Making Finance Work for Africa; African Legal Support Facility; etc.); • However: most PCRs point to insufficient Bank support for CD; • Most Bank-financed CD activities are part of Project & Policy lending • The Bank funds most of its CD effort under the ADF financing window

  13. Bank’s involvement in CD (2): EADI has an important role in Bank’s efforts to strengthen capacity in Africa • Between 2002 and 2008: EADI implemented 299 training and learning events for over 13,600 beneficiaries from 52 countries • EADI’s activities related to development effectiveness: - Project implementation workshops; - Project Improvement Programs; - Development Management Training; • Policy dialogue activities (part of these in partnership with JAI): • - Annual meeting seminars; • - Eminent Speakers Program; • - African Economic Conference; • - Support to ACBF, AERC, etc.

  14. The Bank’s involvement in CD (3): The Bank’s approach to CD faces a number of Challenges • The Bank is one of the development institutions that still have to develop a branded framework for, and an articulated approach to, CD; • The Bank still has to develop a corporate system to record, evaluate, and report on its CD efforts in a systematic way; • The Bank has to treat CD as a strategic, cross-cutting issue, not as a collateral; • The Bank needs to balance its efforts to equally support between the demand and the supply side of the CD equation.

  15. The Bank’s involvement in CD (4): An emerging Bank’s strategy of CB aims to meet the challenges The Bank is now engaged in the process of developing a comprehensive and articulated CD strategy: • Geared toward responding to the abovementioned challenges; • To consolidate its competence in training while supporting other dimensions of CD through its operations; • To create a brand, coordinate, evaluate, and systematically report on Bank’s CD activities; and • To establish a niche in specific areas on the continent.

  16. Emerging Lessons & good practices • The countries that have invested in CD the most are those that developed the most over the past decades; • For viable, sustainable, and locally owned CD: • Finance it through the countries’ institutions, not through traditional TA, and involve leadership; • Countries have responsibility to develop CD programs; the role of donors is to support them; • It is at sectoral level that CD efforts succeed the most; • The Bank estimates that to sustain growth rates susceptible to halve extreme poverty and hunger by 2015, an additional US$50 Bn par year are required; EADI estimates that 25% should go to CD

  17. Thankyou !!! s.tapsoba@afdb.org

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