EFA: Resource Mobilization and Aid Effectiveness

1. EFA: Resource Mobilization and Aid Effectiveness Presentation to the EFA Working Group Meeting, UNESCO, Paris, July 19-21, 2005 Soe Lin, Advisor, Harmonization Unit World Bank

2. Outline of Presentation • MDG Context • Changing environment for resource mobilization • Refocusing resource mobilization • Significance of Paris Declaration • What it means for EFA-FTI programming • Building a stronger FTI platform • Key Messages

3. MDG Context

4. Meeting Commitments on MDG Agenda • The MDGs and the Monterrey Consensus created a powerful global compact for development • The compact anchored on mutual accountability explicitly recognized the close interlinkages between addressing debt, trade, levels of aid and aid effectiveness. • Rome and Paris High Level Forums provided framework for improving aid effectiveness and mutual accountability for results • Credibility of commitments will be tested by quality of implementation • There is both good and bad news on the EFA front

5. Several regions are off track to achieve universal primary completion by 2015

6. Two million additional primary school teachers are needed in Africa by 2015

7. Low-income countries are spending more on health and education

8. ODA is rising but short of what is needed Donors need to raise their post-Monterrey commitments and extend them beyond 2006

9. Changing environment for resource mobilization

10. ODA projections following Gleneagles G-8 Summit • Official Development Assistance projected to increase from $79 billion in 2004 to $129 billion in 2010-- by around $50 billion. • Aid to Africa expected to double from $25 billion to 50 billion • Part of projected increase reflects emergency aid, debt relief, and technical assistance • But usable financial resources for development programs will increase in the next several years to record levels. • Resource mobilization environment for EFA has improved

11. Strong commitment for education ODA • Education ODA in 2002 was $5.9 billion or about 8% of total ODA • Between 2000-2002 it increased by 23% • G-8 leaders reaffirmed importance of education for development and commitment to support EFA agenda in Africa • “We will work to support the Education for All agenda in Africa, including continuing our support for the Fast Track Initiative (FTI) and our efforts to help FTI-endorsed countries to develop sustainable capacity and identify the resources necessary to pursue their sustainable educational strategies.

12. But financing gaps remain large • FTI Secretariat has estimated that if 65 additional countries are to achieve universal primary education with gender equality, required funding levels will at a minimum increase by $3.7 billion per year. • This increase alone represents 4.7 percent of ODA in 2004

13. Refocusing Resource Mobilization

14. A multi-pronged approach to accelerate progress • Anchor efforts to achieve the MDGs in country-led development strategies that aim higher • Partner countries improve policy environments for growth, private sector development, investment. • Strengthen good governance and institutional building • Scale up human development services • Substantially increase the level and effectiveness of aid

15. Broader perspective on resource mobilization • Mobilizing resources to close large financing gaps for EFA when donor aid commitments are increasing substantively, pose a different challenge

16. Broader perspective on resource mobilization -continued • Continue efforts to raise profile of education and EFA in the fora and agendas of development financing. • Key is to help develop and implement country-led sustainable education strategies • This can have large payoffs in resource mobilization

17. Significance of Paris Declaration on Aid Effectiveness

18. Paris Declaration • Paris Declaration built on platform of ownership, harmonization, alignment, managing for results principles, mutual accountability • Who ‘signed’ it? • 35 donor countries • 26 multilateral donor agencies. • 56 countries that receive aid. • [14 Civil society organisations] • more effective aid: • 56 specific commitments. • 12 Indicators of progress.

19. Targets agreed (9) and under discussion (3 square bracked ) for 2010 (1/1)

20. Targets agreed and under Discussion for 2010 (2/2)

21. Targets Under Discussion for 2010 (3/3)

22. What It Means for EFA-FTI Programming

23. Partner Countries Lead in articulating country education strategy/priorities Properly cost the strategies,specify medium expenditure frameworks, prepare annual budgets Improve public financial management, procurement systems Define capacity building needs linked to national/sector strategies Donors Align support with country-led strategy/priorities Provide financial support “on” budget Provide technical cooperation through multidonor/coordinated arrangements. Use country systems and procedures for budgeting, accounting, auditing, financial reporting, procurement Reduce number of parallel project implementation units Supporting and implementing EFA-FTI effectively

24. Partner Countries Develop and monitor performance assessment frameworks Undertake independent or joint assesssments (with donors) in meeting commitments Donors Disburse aid resources in accordance with agreed schedule Continue making progress on untying aid Support program based approaches in education sector, using common arrangements for funding, procurement, reporting Increase number of joint missions and analytic work Supporting and implementing EFA effectively-continued

25. Selected examples of good practices • Bangladesh Primary Education Program (PEDP 11) • Mozambique Performance Assessment Framework • Ethiopia Public Sector Capacity Building Program • Bolivia Education Swap • Norway/Sweden reciprocal delegated cooperation in education and health sectors

26. Building a Stronger FTI Platform

27. Evolving FTI • FTI shifted focus to country-led process • Focus on country program development and resource mobilization • Key role of Country Coordinating Agency in program endorsement • Increased donor coordination and harmonization • Capacity development support through Education Program Development Fund • Resource mobilization through Catalytic Fund • FTI Partnership provides global development platform

28. To conclude • The FTI has taken on board key characteristics of a global partnership that mobilizes resources at country level to support sound/credible country-led education sector plans within the context of a completed PRSP • Indeed, the promise of additional resources is galvanizing political momentum for bolder and more ambitious actions.

29. To conclude-continued • The FTI has evolved in a way that is well placed to shoulder burden of education sector development and facilitate achievement of all EFA goals in low-income countries. • Guided by the Paris Declaration commitments, the partner country and its donors can ensure that the totality of the resource and aid package is consistent with a holistic education program.