PERFORMANCE BASED ALLOCATION SYSTEM (PBAS)

1. PERFORMANCE BASED ALLOCATION SYSTEM(PBAS) Project retreat Ouaguadougou 4-5 nov.09 Mohamed Tounessi

2. Background of the evolving PBAS System • IFAD’s Sixth Replenishment (2004-2007) • Enhance development effectiveness • Maximize impact of scarce resources on rural poverty • Focusing resources on the best opportunity for accelerated and sustained rural poverty reduction • PBAS: decision making tool, integrated into Corporate management process • PBAS: • policy dialogue tool with Government • link with COSOP and PSRP

3. PBAS Objective • Ensure that countries that have created a conducive national, sectoral and local framework for sustainable rural poverty reduction, receive ex-ante allocations of IFAD resources in line with their demonstrated ability to use such resources effectively.

4. Key PBAS Indicators 3 levels • Country performance assessed at three levels: • Level 1: Macro and Broad Framework, that influence all growth and poverty reduction process, including rural poverty reduction • Level 2: Rural development sector framework • Level 3: Portfolio Performance

5. Level 1:Indicators of Broad FrameworkAchievements • IFAD’s mandate – Rural Poverty Reduction • No competence to produce performance assessment of the broad framework • Analysis Sources: Country Policy and Institutional Assessment (CPIA)

6. CPIA Criteria4 key areas under screening • 1. Economic Management • Management of inflation and macroeconomic Imbalances • Fiscal policy • Management of external debt • Management and sustainability of the Development Programme (Governance) • 2. Structural policies • Trade policy and foreign exchange regime • Financial stability • Banking sector efficiency • Competitive environment for private sector

7. 3. Policies for Social Inclusion/ Equity • Gender • Equity of public resources use • Building up human resources • Social protection and labour • Monitoring and analysis of poverty outcomes and impacts

8. 4. Public Sector Management and Institutions • Property rights and rule-based governance (Governance) • Quality of budgetary and financial management • Efficiency of revenue Mobilization (Governance) • Quality of public administration (Governance) • Transparency, accountability (Governance) • Corruption in the public sector (Governance)

9. Indicators of Rural Sector Framework(Level 2) • Strategic framework 2008-2012 and rural policy papers are IFAD’s indicators for sustainable rural poverty reduction • 5 key areas under screening • 1. Strengthening the capacity of the rural poor and their organizations • 2. Improving equitable access to productive natural resources and technology • 3. Increasing access to financial services and markets • 4. Promoting equitable gender relations • 5. Improving governance relative to rural development issues and activities

10. Sectoral Policy and Institutional Assessment Scoring

11. Indicators Portfolio Performance (Level 3) • Individual Project Performance • “Project at Risk” (P.A.R.) methodology • “ Problem Project” not meet criteria for Implementation Progress (I.P) • And or Achievement of Development Objectives (D.O.) • IFAD Portfolio Review • IFAD’s Project Status Report (P.S.R)

12. IFAD P.A.R. flag indicators • Loan effectiveness • Compliance with loan covenants • Project Management Performance • Availability of counterpart funds • compliance with procurement procedures • Quality and timeliness of audit • Disbursement rate • Performance of M & E System • Beneficiary participation • Responsiveness of service providers • Gender focus in implementation • Poverty focus in implementation • Rating guidelines by indicator from 1 to 4 • (Annex 3 handout)