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DFID’s work on VFM so far…. Claire Vallings Governance and Social Development Department DFID 30 March 2011. OVERVIEW. Value for Money generally in DFID Value for Money in Governance. DFID’s VFM Thinking. VFM is about improving aid effectiveness:

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DFID’s work on VFM so far…

Claire Vallings

Governance and Social Development Department

DFID

30 March 2011


Overview l.jpg
OVERVIEW

  • Value for Money generally in DFID

  • Value for Money in Governance


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DFID’s VFM Thinking

  • VFM is about improving aid effectiveness:

    - “we maximise the impact of UK aid so it makes the most difference to the poorest people in the world”

  • This requires:

    • Clear Vision

    • Clear Results

    • Robust Partnerships

    • Strong Organisational Processes

    • Maximum Value


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VFM is not about

  • ‘How To’ Guidance and fixed ‘formulae’

  • Analysis delinked from process

  • An add on

  • Race to the bottom / cheapest

    • (Education in Ghana vs DRC)

  • Risk avoidance

  • Measuring only what can be measured


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VFM is about

  • Proportionate, considered approach

  • Maximising resources

  • Using common sense

    • not ‘what’s the VFM of conflict prevention?’

    • but ‘am I preventing conflict as cost effectively as I can?’

  • Being consistent – what do you want to achieve?


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Overall

  • Joint learning process – DFID doesn’t have all the answers. But keen to share knowledge and lessons

  • Continual improvement rather than a hurdle to jump over

  • VFM should reinforce poverty and results focus, and enhance effective partnerships

  • Building an organisational VFM culture, with partners

  • Trail blazing - innovation welcome!


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Where are we on governance?

  • Indicators

  • VFM Analytical Framework / Approach


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Indicators

  • Theory of Change: articulate the logic of intervention

  • Confusion btw output and outcome

  • Need more on gender and pro-poor outcomes

  • Possible over-reliance on perceptions

    Future work:

  • Unit cost comparison

  • Measures of efficiency




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Conclusions

  • Still early days – don’t panic!

  • Be proportionate / use common sense

  • Do engage


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