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UNCT engagement in a Changing Aid Environment

UNCT engagement in a Changing Aid Environment. Aid and funding modalities. Glen Cove, 19 th February 2009. Summary: processes & mechanisms to handle the aid effectiveness agenda. Role of the UN in development cooperation. Policy dialogue and advice Advocacy Technical assistance

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UNCT engagement in a Changing Aid Environment

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  1. UNCT engagement in a Changing Aid Environment Aid and funding modalities Glen Cove, 19th February 2009

  2. Summary: processes & mechanisms to handle the aid effectiveness agenda

  3. Role of the UN in development cooperation • Policy dialogue and advice • Advocacy • Technical assistance • Capacity development of national partners

  4. Characteristics of a SWAp Sector reform program / SWAp Project type aid Earmarked funds Pooled funds/TA Stand alone projects Budget support • A clear nationally-owned sector policy and strategy • A medium term expenditure framework that reflects the sector strategy • Systematic arrangements for programming resources that support the sector • A performance monitoring system than measures progress and strengthens accountability

  5. What is direct budget support • General budget support (direct to the overall budget to the government, without sector earmarking) • Sector support • Pooled funding Condition: approved PRSP, sector plans, medium term expenditure frameworks

  6. What is pooling? • Funds from participating donors are pooled with those of governments in a common account in support of an agreed expenditure program. • Stakeholders finance agreed proportions of the expenditure program. • Funds are not attributable to individual transactions.

  7. Medium-Term Expenditure Framework (MTEF) A multi-year public expenditure planning exercise: • To set out the future budget requirements for existing services, • To assess the resource implications of future policy changes and any new programmes. • It uses the best available estimates of national economic growth to project how much money will be available in future years • compares available funds with the cost of government expenditure plans.

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