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Modalities for Supporting PRSs

Modalities for Supporting PRSs. Finnish Aid in a PRS Context Helsinki Workshop 19-22 May 2003. One model. Country-level partnership with PRSP at the centre. CSP as business plan General budgetary support aligned with country budget/MTEF and PRS cycle

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Modalities for Supporting PRSs

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  1. Modalities for Supporting PRSs Finnish Aid in a PRS Context Helsinki Workshop 19-22 May 2003

  2. One model • Country-level partnership with PRSP at the centre. CSP as business plan • General budgetary support aligned with country budget/MTEF and PRS cycle • Shared performance matrix based on PRS matrix with clear, mutually agreed triggers for on/off financing

  3. ……. • Fully predictable & harmonised donor funding fully integrated into Govt. budget & macro-framework • Govt monitoring & review systems used to assess performance linked to PRS review & results-oriented budget • Government identified TA financed from a pooled-fund supported by external partners

  4. Possible/feasible/desirable? • It’s already happening (in patches) – DFID/SIDA/Netherlands/World Bank • Not clear yet whether the model is producing results (in terms of effectiveness/outcomes – see GBS evaluability study) • Some signs that it is helping to improve the way Govts. do business & enhancing aid relationships

  5. But challenges lurk… • Can all aid agencies feasibly move in the same direction simultaneously? • What about successful initiatives that fall outside the scope of budget support? • Concerns about over-centralisation (PRSP/MTEF/GBS – role of MoF) • How to ensure a place at the ‘policy table’ for BS and non-BS donors (& NGOs)?

  6. Alternative modalities • Consider different types/levels of partnership within broad PRSP framework e.g. work with sub-national authorities (India/South Africa) & private sector partners • Maximise overall donor effort by being selective with clear links to PRSP framework e.g. identifying projects & programmes with ‘upstream’ linkages & learning opportunities

  7. Alternative modalities • Identify funding modalities that can be easily harmonised & are consistent with building local institutional capacity • Share analytic work/risk assessments which also help build country capacity – PERs, CFAA etc. • Link ‘projects’ to removal of key obstacles to PRSP implementation – at local or sector level

  8. Organisational Issues • How to maximise the impact of aid in a PRSP context? • Alignment & harmonisation require greater on-the-ground capacity (at least initially!) • Requires greater consistency of messages between HQ & field • More emphasis on ‘policy influencing’ skills, though traditional technical skills still matter • More joining up/working with & through multilateral sources e.g. World Bank/EC/ UNECA/ AfDB/ADB etc.

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