Joint Approaches to CD – Lessons Learnt and Way Forward in Ghana

Learning Network on Capacity Development LenCD FORUM Addressing the Paris Declaration Collective Responsibility for Capacity Development: What Works, and What Doesn’t? Working Group 4 (Oct. 3rd): Pursuing Joint Approaches to CD at the National Level Joint Approaches to CD – Lessons Learnt and Way Forward in Ghana Mr. Ernest Prempeh- Ministry of Finance and Econ. Planning, Ghana Mr. Kristian Lempa - GTZ Revenue Mobilization Support, Ghana

Structure 1. The New TA Approach 2. Ghana 2006 Survey: Results 3. Best Practice: PPME 4. Lessons Learnt and Way Forward

1. The New TA Approach Definition Problems: • Capacity Development • Harmonized TC

1.A. Definition: CD Differentiation: Capacity building: a process starting with a plain surface and involving the step-by-step erection of a new structure, based on preconceived designs Capacity Development: a process whereby people, organizations & society as a whole unleash, strengthen, create, adapt & maintain already existing capacity over time

1.A. Definition: CD • More than Human Resources and Institution Building: Capacity – “the ability to perform functions, solve problems, and set and achieve objectives” (UNDP 2002)

1.A. Definition: CD • More than Human Resources and Institution Building: Capacity Development – “(…) the process of strengthening the abilities or capacities of individuals, organisations and societies to make effective and efficient use of resources, in order to achieve their own goals on a sustainable basis.” (GTZ 2003)

Support Partners’ National Dev. Strategies PC Leadership Integration into Country Led Programmes Coordination of Multiple Donor Contributions 1.B. Definition: Harmonized TC

1.B. Definition: Harmonized TC Harmonized TC According to PD

1. The New TC Approach High Standards Necessary: • Holistic Understanding of CD • Comprehensive Approach to Harmonized TC

1. The New TA Approach: SWAPs/PBAs Alignment – Needs Driven Approach (to Support PC dev. Priorities) DPs Holistic CD SWAp/PBA PC able to deliver PRS Harmonization (to minimize transaction costs for PC and Maximize Aid Predictability) Ownership (to Support PC dev. Priorities)

1. The New TA Approach: SWAPs/PBAs CD First!

Ghana 2006 Survey: Results Indicator 4: Strengthen Capacity by Coordinated Support: • How much TC did you provide in FY 2005? • → Qd3. (USD): $ 153.248.315 • How much TC did you provide through coordinated programmes in support of CD in FY 2005? • → Qd.4 (USD): $ 67.333.779 Indicator 4: Qd.4/Qd.3 = 40% (target: 50%)

Ghana 2006 Survey: Results • Good Practices were Identified within the Framework of Programme Based Approaches (Health SWAp, Road Sector etc.) • Bulk of TA Remains Uncoordinated

Ghana 2006 Survey: Results • Some Donors Consider their TA to be Coordinated Because of the Consultations with GoG. However this is not in line with the definition of the Survey. • 6 out of 16 Donors Reported “0” Coordination • More Information is Required to Analyze the Coordinated TA

Structure 1. The New TC Approach 2. Ghana 2006 Survey: Results 3. Best Practice: PPME 4. Lessons Learnt and Way Forward

3. Best Practice: PPMEPublic Procurement in Ghana: Figures • accounts for up to 80 % of total government expenditure (non staff emoluments) → ODA/National Budget (excl. Grants): 42 % (in 2004) • 18 % of GDP (Africa: estimated 9-13 %) → in 2005: US$ 1.8 Bill. • 70 % of Imports → in 2005: US$ 3.8 Bill → Aid Effectiveness and V4M!

PC Procurement System 3. Best Practice: PPME 3. Alignment – Funding through PC PS in Accordance to NDS DPs 2. Holistic CD 4. Services 5. V4M 1. Harmonization at Global Level Ownership PRS

3. Best Practice: PPME 1996:PUFMARP 2002: OECD/DAC-WB ROUNDTABLE 2003: Public Procurement Act 663 2003: Country Procurement Assessment Report 2003: Ghana/Swiss Partnership for Transparency and Accountability in Public Procurement

3. Best Practice: PPME PPME - Harmonization at the Global Level: • Funding From Swiss Government • WB Baseline Indicator System + Swiss Performance Criteria • Pooled Idea – Output Agreed on Global Level (RTs) • → Development of a Framework for Procurement Assessment as Globally Coordinated CD

3. Best Practice: PPME Overall Effects: • More V4M • Increased reliance on NPS → Therefore: Increased PC Ownership • Development Results

PC Procurement System 3. Best Practice: PPME Alignment PC able to deliver DPs SWAp/PBA Development Harmonization Ownership PRS

4. Lessons Learnt and Way Forward • CD Central for SWAPs/PBAs → Alignment to NDS → Ability of PC “to deliver” CD as prerequisite for SWAPs/PBAs

4. Lessons Learnt and Way Forward • Commitment and Leadership of PC Government Mandatory for SWAp/PBA → Ownership – PC Priorities! • Therefore: CD to Facilitate Ownership → Interdependency of OS and Capacity

+ + + + + + 4. Lessons Learnt and Way Forward: Interdependency of Ownership and Capacity CD Ownership Capacity Aid Effectiveness

4. Lessons Learnt and Way Forward: Interdependency of Ownership and Capacity But: CD Kick Start Might be Necessary (e.g. WB: PCA 663) – Ownership Dilemma?

4. Lessons Learnt and Way Forward: Procurement: a Special Case • CD in Procurement “Win-Win” Situation → Value for Money for DP and PC → Positive Motivational Structure → Development Results THEREFORE: “AID EFFECTIVESS”

4. Lessons Learnt and Way Forward: Procurement: a Special Case • NPS as sample case of Ownership → should therefore increase comfort level for DPs to administer ODA through NPS → DPs can support similar ventures e.g. FM, M&E, MfDR

3. Lessons Learnt and Way Forward It’s all About Capacity!

4. Lessons Learnt and Way Forward Way Forward in Other Sectors: • Joint Technical Assistance • Sector Strategy TA • TA Pool

Lessons Learnt and Way ForwardJoint Technical Assistance • A formal agreement of two or more donors to implement a project with the approval of government or/and partner organizations • Directly linked to a country led sector strategy or programme

Lessons Learnt and Way ForwardSector Strategy TA • Government and DPs Commit to Following a Specific Sector Strategy (With Indicators and Time Frames) • PC’s Government has no Direct Access to the Funds for TC

Lessons Learnt and Way ForwardTA Pool • GMTA Pool • → PC’s Government Manages the Funds • DMTA Pool • → Donors or Donor Secretariat Manages the Funds on Behalf of PC’s government

Lessons Learnt and Way ForwardTA Pool PC Prefers Financial Contributions Instead of in Kind Funding

Stand Alone Programmes 4. Lessons Learnt and Way Forward + PC Ownership TAP SSTA JTA + Donor Harmonization

4. Lessons Learnt and Way Forward • In 2005 Ghana Received 316 Donor Missions, only 33% of them were Coordinated (Indic. 10a Target: 40%) • → e.g. Canada: 57 Missions – 1 Coordinated • GoG does not Have a System of Recording the Totality of the Visiting Missions • → CD + Harmonization

Aid Effectiveness + 4. Lessons Learnt and Way Forward + PC Ownership TAP SSTA JTA + Donor Harmonization

Lessons Learnt and Way ForwardConcluding Remarks Coordination of TC is no Guarantee for Performance, Development, Impact and Sustainability Capacity is not a One Stop Shop

Learning Network on Capacity Development LenCD FORUM Addressing the Paris Declaration Collective Responsibility for Capacity Development: What Works, and What Doesn’t? Working Group 4 (Oct. 3rd): Pursuing Joint Approaches to CD at the National Level Thank you very much for your attention! Mr. Ernest Prempeh - Ministry of Finance and Econ. Planning, Ghana Mr. Kristian Lempa - GTZ Revenue Mobilization Support, Ghana

Joint Approaches to CD – Lessons Learnt and Way Forward in Ghana