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Kosova - Aid management in a transition country

Aid characteristics. Aid is project based ? almost no direct budget support or SWAPsSectorial allocation un-managed (e.g. health and education only 5%)Balance between TA (80%) and capital investments (15%) unmanaged. Aid characteristics. Aid not reflected in government budgetsAid non harmonised

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Kosova - Aid management in a transition country

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    1. Kosova - Aid management in a transition country Key challenges and opportunities Ms. Rozeta Hajdari Donor Coordination Crentre, OPM

    2. Aid characteristics Aid is project based – almost no direct budget support or SWAPs Sectorial allocation un-managed (e.g. health and education only 5%) Balance between TA (80%) and capital investments (15%) unmanaged

    3. Aid characteristics Aid not reflected in government budgets Aid non harmonised – each donor using individual procedures Bottom line : Aid most likely relatively ineffective and with high transaction costs

    4. Aid management progress Government increasingly ready to take on leadership Key ministries are being established and have rapidly enhanced capacity from scratch KDSP, MTEF, Sector plans are being made Some sectorial coordination effective, but ad hoc and informal

    5. Aid management progress DCC and coordinative representatives per sector are being established in line Ministries. Steering Council on Aid Coordination led by Senior Governmental Authorities Agency for European Integration is in place

    6. Aid management challenges Donors and Government in Kosova seem relatively unaware of Paris declaration principles Donor community (40 agencies) relatively fragmented and dis-organised Political interests on donor side might make cooperation difficult Weak capacity for aid coordination in line ministries Existing aid management database not interfacing with Financial Management Syst.

    7. Possible steps forward Make aid policy for Kosova Make MoU/Action plan for aid management agreed between donors and government Make Paris declaration baseline survey Enhance capacity in line ministries Do aid survey 2006 and install web-based data base

    8. On-going support to DCC Capacity Building for European Integration Project (CBEI), EAR funded, implemented by UNDP Kosovo Danish Ministry for Foreign Affairs Other potential donor on AIMS

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