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SWAps and Use of Country Systems

SWAps and Use of Country Systems March 24 -28, 2008 Why to update the Guidelines? Current Guidelines issued in 2002 “Interim” reviewed as SWAps evolve to reflect experience Reflect modernization of FM and Disbursement policies.

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SWAps and Use of Country Systems

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  1. SWAps and Use of Country Systems March 24 -28, 2008

  2. Why to update the Guidelines? • Current Guidelines issued in 2002 • “Interim” reviewed as SWAps evolve to reflect experience • Reflect modernization of FM and Disbursement policies. • There is a current review Bank-wide on the investment lending side on SWAps

  3. Key messages • Nature and scope of the Guidelines • Conceptual issues on SWAps • FM Specifics

  4. Key messages • Nature, scope and approach • No need of separate guidelines, but rather streamlined into the FMPM. • Integrate the SWAps discussion with the work on the Use of Country Systems. • Provide principles (core staff) and good examples – there is no a single model of SWAps.

  5. Interim Guidelines (2002) Country ownership Partnership and consultation Comprehensive sector policy framework Expenditure framework Uniform implementation structures and procedures FMPM (2005) Pooling of: Expenditures to be financed Flow of government and donors funds through jointly agreed channels Use of Country Systems Conceptual issues on SWAps

  6. Key messages • SWAps: mix of IL + DPLs? (Traceability of expenditures) • SWAps: Bridging operations to move to sector budget support. • Presence of defining features vary from one operation to other: • Common element: Sector/Sub-sector strategy • Implementation arrangements: Ring-fenced arrangements to full use of country systems • Is there any need to review the defining features? What about MICs?

  7. FM Specific Issues - Strong co-relation between SWAps and UCS • To what extent, can PFM system issues be addressed through SWAp operations? • Should country level risks be addressed through the same SWAp operation? • Transitional arrangements vs. long-term capacity building efforts • What are the common elements of both initiatives? How should these be reflected in the FMPM and/or Guidelines?

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