Overview of DFID’s Governance Programme in Latin America 2005-2008

1. Overview of DFID’s Governance Programme in Latin America 2005-2008 Lessons from Latin America ODI London 11 September

2. Overall Objectives and Approach for the PSPS Programme To “enhance the impact of the World Bank and IADB activities “on poor people’s ability to shape, participate in and benefit from public sector and political systems that are increasingly representative, accountable and transparent.” • supporting improved political analysis • promoting wider consultation and dialogue with and between government and civil society • facilitating lesson learning and exchanges between and among countries, areas and agencies • focusing on a limited number of key thematic areas such as decentralization, fiscal and budgets and inclusion.

3. Objectives Public Sector and Political Systems • Supporting ‘country dialogue processes’ with IFIs (analysis, consultation) • Improving the political representation of the poor • Improving the pro-poor focus of budgets at national and sub-national levels • Data and evidence on poverty, social protection, equality of opportunity, and social inclusion estimated budget £2,170,000 for three years (From TF Agreement)

4. Sub-regional characteristics • Central America • Small, aid dependent countries • Poverty and post-conflict • Proximity to USA • Andean Region • Political and social instability, conflict • Ethnic and social exclusion • Drug production and crime • CAN Trade block • 2/3 land area is lowland Amazon and high biodiversity • Brazil • Most developed countries in LA • Large MIC • Trade integration

5. Some Success Stories in Brief • Strengthening Governance Analysis and Governance Indicators with the IADB (Governance Reviews / DATAGOB) • Improving and Drilling Down in Social Sectors in Central America and Peru (WB) • Sub-National Analysis and Political Work in Brazil (WB and IADB) • AAA and Social Protection in Urban Areas/ Bolivia (PAR Value Added)

6. Why focus on sub-national governance in Middle Income Countries of Latin America? • Rising quantity of investment at sub-national level in all regions • Inequality is territorial and spatial as well as by particular groups (ethnicity, race, gender) For addressing ‘lagging regions’ and inequality • Sub-national governments provide more opportunity for engagement by citizens and civil society • Increasing importance of decentralization for managing political and social conflict

7. Some highlights and key activities with SNGs • Politics of the budget and analysis at sub-national level in Brazil with WB • Supporting accountability and civil society at sub-national level in Central America • A series of different kinds of projects and activities supported by the Trust Funds at WB and IADB • PAR

8. The Regional Learning and Exchange Programme on Sub-National Governments and Poverty Reduction (PAR)

9. AIM AND PURPOSE OF PAR • The aim of the Paris to contribute to improving the impact of sub national governments on the reduction of poverty in Latin America. • The purpose is to add value to IFI policies and programmes for supporting sub-national governments to reduce poverty.

10. What is it? • PAR developed out of existing relationships and contacts resulting from sub-national activities in all three RUs • It is intended to be ‘tool’ or mechanism to amplify the impact of in-region engagement and influencing

11. How does PAR fit as part of the overall DFID LAD strategy and approach?

12. “Through”, “With” and “Around” Engagement Strategies ‘Around’ National Governments ‘Through’ WB and IADB Trust Funds CSOs PAR ‘With’ DFID TA and Brokering at country level Regional Organizations NGOs IMPACT on SNGs

13. Supporting interaction at multiple entry points HQ / Central Regional Cross Region Cross Institution Country Level Sub-National

14. Why pursue this way of working? PAR is based on the ‘around’ strategy that was intended to: Strengthen regional capacity of stakeholders for engaging with IFIs PAR Expand work to include experiences, knowledge from other countries in the region Use and apply best practices across the region Maintain on the ground knowledge and focus on limited areas

15. Key distinctive elements of the PAR approach • Focused but flexible • ‘Learning Laboratories’ • The ‘right’ partners in the ‘right’ places at the ‘right’ time • Linking levels of action from local, to regional to international • Based on people and relationships • Maximizing comparative advantage and resources • Relatively low financial inputs

16. Relationships!

17. Bolivian Amazon Region Work areas

18. Learning LabsBorder and Urban • Strengthens and improves partnership • a ‘driver of innovation’ • Allows for the generation of relationships with IFIs and PPAs, giving us something concrete to focus on • Allows us to have something to contribute to the WB and IADB, as well as others • Allows for the generation of innovative models that can then be expanded and scaled up

19. Why is this different from other ways of working for donors? • True partnership rather than funding a ‘project’ • Using regional actors to focus on specific problems within and between countries • Not a traditional ‘network’ but using network technology? • Knowledge and relationship based, rather than $$ • Mechanism for adding value and leveraging • Driving innovation in challenging areas

20. Some lessons from the donor perspective • Important to nurture and facilitate horizontal relationships between partners • Contracting mechanisms matter – centralized versus decentralized • Importance of communications, coordination and face to face • Emerging and growing importance of ‘broker’ role, connecting across ‘chains of engagement’ • BUT beyond connecting also ‘preparing the conditions’ on both sides