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Programme Based Approaches-PBAs Sector Wide Approach-SWAPs

Programme Based Approaches-PBAs Sector Wide Approach-SWAPs. Friday Learning Session 21 September 2007. Why should PBAs/SWAPs matter to us?. Paris Declaration on Aid Effectiveness: PBAs/SWAPs is a key new aid modality - it is not a choice but a policy imperative

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Programme Based Approaches-PBAs Sector Wide Approach-SWAPs

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  1. Programme Based Approaches-PBAsSector Wide Approach-SWAPs Friday Learning Session 21 September 2007

  2. Why should PBAs/SWAPsmatter to us? • Paris Declaration on Aid Effectiveness: PBAs/SWAPs is a key new aid modality - it is not a choice but a policy imperative • SWAPs are a key to fulfil objectives of UN Reform (harmonisation, coherence). UNDP has committed to assist government build its capacity to manage this new aid modality • PBAs/SWAPs have implications on our work: • Different from conventional project approaches • Redefine our role vis-à-vis government and donors (pooled-funding/budget support, division of labour/comparative advantage) • Changes in the way we provide TAs (facilitator or “go between” between DPs and RGC). • Changes the way in which we communicate on our activities • These approaches are increasingly used in Cambodia • RGC committed to develop sector plans under NSDP - PBAs/SWAPs are multiplying: Health, Education, Trade (PBAs also used in HIV/AIDs, D&D, Land, Mine Action, Aid Coordination) • Development partners have committed to increase funds channelled through PBAs/ SWAPs

  3. Sector Approach Sector Programme Support to Sector Programmes

  4. What is PBA/SWAP? • A Programme-based approach is a way of engaging in development co-operation based on the principle of co-ordinated support for a locally owned programme of development, such as a national poverty reduction strategy, a sector programme, a thematic programme or a programme of a specific organisation. • A Sector-wide approach is a programme-based approach used for an entire sector.

  5. Objectives of PBAs/SWAPs Programme-based and Sector–wide approaches = new way of working, processes, aimed at: • Reducing aid fragmentation • Promoting aid coordination and dialogue • Enhancing policy coherence (policy › spending › results) and aid predictability • Reducing transaction costs associated with aid • Improving overall effectiveness of a programme/sector

  6. What a is a SWAP about? What a SWAp can be.. What a SWAp is not... • Focusing on strengthening the sector involving all stakeholders • Building trust through mutual transparency and patient dialogue • Dealing with the real, and often thorny issues and trade-offs in sectors • Strengthening domestic ownership and accountability • A financing modality (basket fund, budget support)… • Government decides, donors accept… • Donors gang up to twist arm on government… • Government and donors crowding out civil society and private sector…

  7. Key Components of an Effective SWAP

  8. Financing modalities Other Sector national budget revenues support ‘Pool Fund’ Donor X Donor Y Donor X Donor Z PPP Through Treasury Co-financed activities Projects Sector Programme Own funds

  9. PBAs/SWAPs and the Paris Declaration

  10. Challenges • Overcoming the politics of aid (both on government and donor sides) and balancing mutual accountability • Higher transaction cost for everyone during transition phase • Balance quick results with long term capacity development: results can be evaluated over 10 years. • A new way of managing development cooperation, requires new technical and management skills

  11. Challenges… • From the donor side: • Commitment to harmonize instruments (TA, projects) and procedures • Willingness to view sector analysis and strategy as a common exercise - act collectively rather than individually • Willingness to accept government ownership and leadership • From the Government side: • Seeing PBAs/SWAPs simply as a new way of attracting funds rather than as a results oriented strategy/policy • Limited Inter-ministerial cooperation (more difficult to implement SWAPs/PBAs on cross-sector issues) • Ensuring consistency between what is planned within a sector (SWAPs) and across sectors (NSDP) • Success depends on progress in Public Financial Management and Public Administrative Reform

  12. Challenges: health sector (109 projects)

  13. Key principles when engaging in SWAPs • Support government ownership and leadership • Work with government to strengthen institutional capacity and accountability • Set the sector programme in context • Take a long-term strategic view • Be pragmatic and flexible

  14. Country comprehensive view of an entire sector Partnerships with mutual trust and accountability External partners coordination and dialogue Increased used of local procedures Long term capacity development in sector Process-oriented approach through learning by doing Focus on projects to support narrowly defined objectives Recipient accountable to donor Bilateral negotiations and agreements Parallel implementation arrangements Short-term disbursment and success of projects Blueprint approach SWAPs Vs. Project Approach Sector Wide Approach Project Approach

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