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“WatSan and PRSPs”

“WatSan and PRSPs”. ODI/WaterAid/WSP Regional Workshop, Kam p ala, 2 nd - 4 th February, 2004 Peter Newborne, ODI Water Policy Programme. WatSan and PRSPs project. Phase I: 2002

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“WatSan and PRSPs”

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  1. “WatSan and PRSPs” ODI/WaterAid/WSP Regional Workshop, Kampala, 2nd- 4th February, 2004 Peter Newborne, ODI Water Policy Programme

  2. WatSan and PRSPs project • Phase I: 2002 • preliminary assessment of extent of incorporation of water (WSS and WRM) under PRSPs in five African countries: ie: review of PRSP preparation (both content & process) - findings of Phase I on separate sheet. • Phase II: 2003-2004 (until end March) - detailed study of how resources, allocated to WSS priorities under PRSPs in three African countries, are converting into expenditure on WSS outputs, for poverty impacts.

  3. Strengthening Design, Finance and Delivery ofWater Supply and Sanitation Programmes under PRSPs • Phase II: 2003-2004 (until end March) project purpose • To help strengthen the design, financing and delivery of water supply and sanitation programmes within PRSPs in selected countries in sub-Saharan Africa, as part of further development, implementation and monitoring of Poverty Reduction Strategies in the region - investigation of PRSP implementation: (i) finance, and (ii) design/delivery of WSS interventions under PRSPs in the region.

  4. Strengthening Design, Finance and Delivery ofWSS Programmes under PRSPs Research scope and focus - through the water sector’s experience, to review progress of PRSP implementation, in order to:- - investigate how resources, allocated to WSS priorities in PRSPs in the region, are converting into expenditure on WSS-related outputs/outcomes; - recommend how capacity for action by central & decentralised government may be strengthened to deliver on promises made in PRSPs - and those commitments may be developed - for achievement of water-related poverty reduction outcomes; - make recommendations for how external donors may support this effort.

  5. WatSan and PRSPs project • Phase I: 2002 • - preliminary assessment of extent of incorporation of water (WSS and WRM) under PRSPs in five African countries: ie: review of PRSP preparation (both content & process) • Phase II: 2003-2004 (until end March) • - detailed study of how resources, allocated to WSS priorities under PRSPs in three African countries, are converting into expenditure on WSS outputs, for poverty impacts • - ie: investigation of PRSP implementation: (i) finance, and (ii) design/delivery of WSS interventions under PRSPs in the region.

  6. Countries for Water & PRSPs study • ODI - WaterAid project Phase I: Zambia, Uganda, Malawi; Kenya, Madagascar Phase II: Zambia, Uganda, Malawi • WWF/ODI project - Zambia, Uganda, Kenya, Madagascar; Tanzania, Niger • Pakistan, Vietnam • Nicaragua; Mexico (WB Strategy for Poorest Southern States).

  7. HDI Rankings of WWF-Selected CountriesSource: UNDP 2002, as per World Water Development Report -WWDR

  8. Two HD Indicators for WWF-Selected CountriesSource: UNDP HDIs 2003 - www.undp.org

  9. PRSPs Processes - I Six core principles of PRSPs for strengthening link between debt relief & poverty reduction “comprehensive”: recognition that poverty is multi-dimensional PRSs should be:- • country-driven; • results-oriented; • comprehensive; • prioritised; • partnership-oriented; • based on long-term perspective.

  10. PRSP and Related Processes - II • PRSPs cover a three-year timeframe, with annual review and update • PRSP role as “platform for financing” • budget: key vehicle for PRSP implementation, annually • both PRSP and Budget need to be “nested” within longer term development policy and planning process • MTEF* is one planning tool, typically over 3 years: estimate of the resourses available for public expenditure, together with indicative plans for allocating those resources between competing priorities • Role/aim of MTEF:a linking framework to ensure expenditure driven by policy priorities and disciplined by budget reality (World Bank 1998). * Medium Term Expenditure Framework

  11. Key Parts of PRSPs • PRSP Priorities • “pillars”; key “principles”/”concepts”; cross-cutting themes • analysis of multi-dimensional aspects of poverty • poverty reduction and economic growth responses • PRSP Objectives • by sector/subject/theme • degree of prioritisation? • PRSP “Action Plan” (or “implementation matrix” etc.) • with costings • degree of clear prioritisation? NB: discontinuity of PRS process evident through discrepancies between above parts of PRSP in Zambia, Madagascar, Kenya &Vietnam.

  12. Progress in Production of PRSPsas at October 2003 (source IMF PRSPs website) • Full PRSPs: 35 countries (see separate handout) • Interim PRSPs: 18 countries ( “ “ “ ) • Potentially 9 remaining HIPC countries not produced I-PRSP ( “ “ ) • What about the other low-income or “other” countries listed in the WWDR, or as listed in World Bank Timelines website without explicit forecast as to PRSP production: Eritrea? Bhutan? Afganistan? Dominica? Haiti? Kazakstan? Yugoslavia? • NB: above WB website last updated in April 2002: more recent information?

  13. PRSP Processes – Plenary discussion • Possible focus/i of engagement:- • PRSP implementation; • PRSP preparation; - in different countries/regions. • Timing (as per WB Analysis of Implementation Progress, Sept 15th 2003):- • average duration from I-PRSP to full PRSP: 20 months • annualPRSP progress reports (PRSP-PRs): 11 by 7 countries.

  14. WatSan and ATER, POVERTY & DEVELOPMENT Status of Incorporation of Water Priorities under PRSPs

  15. Lessons from ODI/Water DFID-funded WatSan & PRSPs project: Phase I (2002)

  16. Treatment of Water-related Issues in 10 WWF-Selected PRSPs - I • Positioning of Water Objectives (see separate handout) • in 6 countries, WSS is Social/human • in 6 countries, WRM interventions are related to Economic and Growth, or Productive; but there is also some recognition of social functions of WRM, and in 2 countries of vulnerability aspects - WSS in 1 country is labelled solely Economic - Infrastructure in Kenya (& Zambia) clearly reflects different preoccupation, with physical installations - for sector coherence: Zambia, Madagascar only?!

  17. Treatment of Water-related Issues in 10 WWF-Selected PRSPs - II • Poverty noted as predominantly rural, although urban (peri-urban) poverty is a serious problem • Gender: key role of women/girls in relation to WSS reflected in text of some PRSPs (Niger, Uganda, Kenya, Vietnam), but in PRSP water Objectives/Actions gender aspects are weak • Agriculture referred to as a driver of growth or key economic sector, in 7 PRSPs • Irrigation development clearly emerges as a key subject in 7 PRSPs • Flood/drought noted in 9 PRSPs.

  18. Treatment of Water-related Issues in 10 WWF-Selected PRSPs - III • IWRM: “integrated” WR management mentioned, as future need or incipient in 5 countries: Niger, Zambia (1 project), Tanzania, Nicaragua (compre- -hensive solutions), Madagascar (1 project; also to be developed nationally) • Freshwater ecosystems, environment or biodiversity: Zambia (important for tourism and fishing);Uganda (role of wetlands for c.5m); Kenya (conservation), Mexico-South (biod.= comparative advantage); Vietnam (pollution of rivers); Madagascar & Nicaragua (deterioration of watersheds); Tanzania (heavy dependence of poor on environmental resources) • Water “efficiency”: Pakistan; cf: Vietnam: manage water resources strictly; Mexico: WSS low cost-recovery; Madagascar: irrigation efficiency presumably part of improving inputs to rice production • Transboundary aspects: briefly mentioned in 2 PRSPs • Hydro-power: 5 PRSPs refer to building of hydro facilities - Zambia, Uganda, Pakistan, Kenya, Mexico - several with major cost (how funded?).

  19. Treatment of Water-related Issues in 10 WWF-Selected PRSPs - IV • Sanitation - relatively well integrated in 4 PRSPs; weak in 6 PRSPs - funding gap in Niger, Tanzania, Kenya; others? • M&E • M&E processes described in text of all PRSPs, more development of indicators & institutional system needed • Uganda:ahead of some countries, but Progress Report 2003 and WaterAid study confirms need for improvement • MDGs • mentioned in 4 PRSPs: Niger, Tanzania, Madagascar, Vietnam - water target referred to in Niger, Vietnam • reference to IDGs/DAC goals: Kenya, Nicaragua - Mexico-South: small probability of achieving MDG 1; WSS target feasible, assuming funds and, as/more important, political will.

  20. Sectoral Links in Selected PRSPs • Intra-sectoral: WSS-WRM Impression of some intra-sectoral (WSS-WRM) coherence portrayed in text of 5 PRSPs • Niger, Tanzania, Madagascar, Kenya, Vietnam • through linking of domestic and productive activities in rural lives/contexts • Inter-sectoral Water links to health and education noted in 6 and 3 countries, also environment (3 countries) articulated in PRSPs WSS: time fetching/carrying water explicitly referred to in 5 PRSPs (gender) (but, in prioritisation of investment, is consequent substantial loss of productive time taken into account?) NB: how are above links, as described, reflected in coordinated actions in practice? example of good practice: “matrix” of types of intervention and contributing/delivering depts. in the Madagascar PRSP Action Plan.

  21. Incorporation of Water Priorities in PRSPs - Plenary Discussion • How may the water "sector" support strengthening of PRSPs?

  22. WATER, POVERTY & DEVELOPMENT Making Scarce “PRSP” Resources for Water Interventions Count

  23. Positioning of Water Objectives in WWF-Selected PRSPs (recall of positioning of WSS and WRM) • In 6 countries, WSS is Social/human; • In 6 countries, WRM interventions are related to Economic and Growth, or Productive; but there is also some recognition of social functions of WRM, and in 2 countries of vulnerability aspects • WSS in 1 country is labelled solely Economic • - Infrastructure in Kenya (& Zambia) clearly reflects different preoccupation, with physical installations • - for sector coherence: Zambia, Madagascar only?

  24. Targeting of Water Interventions in WWF-Selected PRSPs (see separate handout) • Zambia, Madasgascar, Pakistan, Vietnam, Mexico: investment to follow regional policy, targeting locations with particular economic growth potential • Madagascar and Nicaragua: both high development potential and poor/disadvantaged areas • Tanzania and Uganda: targeting according to poverty • Kenya: focus on “ASALs” (arid and semi-arid lands) • Vietnam: “disaster prone areas” (eg. Mekong Delta) • Pakistan: I-PRSP proposal for sub-national, as well as national, PRSPs • “Trickle out” of benefits of growth from well-integrated areas to weakly-integrated areas (WIAs)? generally slow and patchy, and growth orientation insufficient on its own, without investment for social protection.

  25. Financial Allocations in WWF-Selected PRSPs

  26. Targeting of Interventions under PRSPs • Strategic Goals • economic growth and/or poverty reduction • information/analysis of poverty realities and growth opportunities • Operational Objectives • need clarity what is being sought, when • eg. economic: improvement of economic performance/production • or poverty reduction: but who/where are the poor? “unserved/least served”; “dispersed/isolated”; “vulnerable” • balance between financial-natural-physical-social-human, as per livelihoods principles • clear/robust performance criteria: equity, sustainability, efficiency.

  27. From PRSP Priorities to resource targeting… EXTERNAL FUNDS - Budget Support - “Project” support GOVERNMENT REVENUES - Tax and non-tax RESOURCE “ENVELOPE” - resource projections - budget guidelines and expenditure limits (MoF) - line ministry expenditure proposals MTEF - 3 years + indicative resource allocation plan PRSP Priorities PRSP Objectives PRSPAction Plan -with costings BUDGET -prepared -appraised -approved Local Govt. Funds release Fundstargeting T Line Agencies PRSP document Budget formulation and execution

  28. PRSPs and Budgeting • Budget • key public implementation mechanism of PRSP (and MTEF) • whole cycle from start to finish typically takes 3 years • start, ideally, 1 year before; execution = 1 year; further year to prepare and audit accounts - budget cycle needs to be “nested” within longer-term policy and planning process • time-lapse in practice for routine M&E data to inform budget formulation; use of periodic in-depth Public Expenditure Reviews (PERs) NB: policy processes are “outside the circle” in the following diagram: see second diagram below…

  29. Budget Cycle: the theory Annual Review of SWAP 11. Approval of audited accounts by Parliament 10. Preparation of auditedaccounts 9. State accounts prepared by MF 1. Resource Projections prepared by MF and approvedby Cabinet 8. Budget executed by line agencies 7. Budget appropriations voted by Parlaiment 2. Budget Guidelines and Expenditure Limits circulated by MF Government Donor Meeting 3. Line Agency expenditure proposals prepared and submitted toMF 6. Budget approved by Cabinet and submitted to Parliament 4. Proposals appraised by MF and negotiations with line agencies 5. State budget prepared by MF Donor Budget Meetings for SWAP IMF Negotations PER inputs & analysis Source: Norton and Elson, 2002, What’s Behind the Budget (p.8), ODI, adapted from Foster and Fozzard, 2000, Aid and Public Expenditure: A Guide ODI Working Paper 141.

  30. Linking Policy, Planning and Budgeting: the theory (1) REVIEW POLICYReview the previous planning and implementation period (2) SET POLICY AND UNDERTAKE PLANNING ACTIVITY Establish resource framework, set out objectives, policies, strategies and expenditure priorities (6) EVALUATE AND AUDITPolicy activities’ effectiveness and feed the results into future plans (5) MONITOR activities andACCOUNT for expenditures (4) IMPLEMENT PLANNED ACTIVITIES Collect revenues, release funds, deploy personnel, undertake activities (3) MOBILIZE AND ALLOCATE RESOURCES Prepare budget Source: World Bank (1998), Public Expenditure Management handbook (p.32)

  31. Channelling of Expenditure under PRSPs • What can go wrong? (pessimistic scenario) • resource “envelope” does not match projections • external funds are delayed/blocked • public resources are applied “off-budget” • donors withhold budget support in preference for “off-budget” (project support, bypassing national system) • actual allocations by MoF do not match budget (eg. expenditure cuts; political capture, eg. for different sector or strategic goal) • funds releases to line agencies delayed by MoF • decentralisation does not function to enable funds release to local government • line ministries/agencies or local govt. change operational objectives • line ministries/agencies or local govt. fail to analyse/plan poverty realities/targets, or fail to distribute funds as per their targets • funds released to third parties are misapplied.

  32. WaterAid “snapshot” tests for equity and (social/financial) sustainability - recommendations from WatSan & PRSPs project: Phase II (2003-2004)

  33. Making Scarce PRSP Resources for Water Interventions Count - Plenary Discussion • How may the water "sector" support better targeting of resources under PRSPs?

  34. Strengthening Incorporation of Water Priorities under PRSPs/CSPs Recall of Workshop Questions • How may the water sector (including WSS and WRM) support strengthening of PRSPs, to further water-related poverty reduction objectives? • What opportunities are there for advocacy/policy work relating to ongoing PRSP/CSP processes? - Actions, next steps…

  35. Why has Water not been better Represented in PRSPs to-date? • Institutional dispersion: water sector often fragmented, with several institutions whose roles/responsibilities are unclear or overlapping; • Weak sector stakeholders: in terms of capacity, individually or collectively, to identify and advocate policy reforms; • Donor dependence: in many low-income countries, historic high level of donor funding for water sector (50-90%); = less incentive to engage & actual engagement by water ministries and local government in budget/public expenditure processes; • Weak inter-sectoral links: water sector inactive/ineffective in promoting “knock-on” benefits of water-related investments in other sectors (eg. health/education); • Failure to link WSS & WRM to development and growth: as above PRSP analysis suggests, water sector needs to better link water-related actions/activities to economic growth & development.

  36. Making the Case for Water • Integrated water strategies: one document for clear, well-presented water case in each country, presenting unified proposals, supported with examples of best practice, and financially sound/sustainable mechanisms for implementing actions • Water “Audit”: drive IWRM strategy based on water audit, identifying/recording where/when water resources are available, their allocation & distribution amongst different sectors/user-types, and “mapping” institutions’ roles/responsibilities • Economic and development contribution: since growth-based strategies constitute major PRSP element, alongside measures for social protection, water sector needs to further study and better articulate economic & development benefits of investment in WSS & WRM • Value of Capacity-building: chronic lack of capacity at local level; the water sector (WSS & WRM) offers great opportunities for decentralised capacity-building with benefits both within and beyond water-related agencies • Public participation in local and national planning processes: water is commonly recognized as a priority issue at local level, so key to strengthen local participation in policy processes • M&E: devise simple & clear performance indicators to guide targeting of water-related interventions and to track their links to, and impacts upon, other anti-poverty measures.

  37. What opportunities are there for advocacy/policy work relating to ongoing PRSP/CSP processes? International Products: - Scorecard; Water initiatives critique; NGO case studies; WWF/ODI PRSP and CSPs study - Position summary (including a joint position, covering both WSS and WRM issues) for input into policy “windows”:- (i) CSD 12 (April 2004 and 2005); (ii) Cotonou Mid-Term Review; (iii) WB-IMF PRSPs Review in 2005. - Use indicators as drivers via UN JMP on MDGs (WaterAid on working group) - Use Irish-Dutch-UK Presidencies of the EU. Messages: - MDG-PRSP inconsistencies - Diminishing aid levels - Poor targeting of resources in-country.

  38. What opportunities are there for advocacy/policy work relating to ongoing PRSP/CSP processes?National - Use PRSP research to target countries eg. use IWG’s priority countries assessment: choose several countries of common interest to target for PRSP policy/advocacy work, where either the PRSP still to be prepared, or where PRSP review scheduled - Explore joint NGO capacity-building in recipient nations (eg. WWF-UK and WaterAid) - Work with key donor country agencies (eg. Nordics, UK): present the Water & PRSPs assessments to them - Case Study of WRM resource flows to match WaterAid’s WSS resource flow studies (results of latter due by end March 2004)?

  39. Strengthening Incorporation of Water Priorities under PRSPs/CSPs Other possible actions:- • Development of anenvironmental sustainability “snapshot” (to complement WaterAid’s on social/financial sustainability.) • Joint fieldwork to pilot and demonstrate, at local/district level, multiplier effects of water investments on food security, production, health, education etc. • Further study of productivity benefits and opportunity cost in poor rural communities of water investments (eg. time-management dilemmas around fetching/carrying water versus time in eg. fields )

  40. WATER, POVERTY & DEVELOPMENT • THANK YOU

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