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From Aid Effectiveness to Development Effectiveness in Ethiopia --- Two Case Studies

HLF4 KNOWLEDGE AND INNOVATION SPACE. From Aid Effectiveness to Development Effectiveness in Ethiopia --- Two Case Studies The Protection of Basic Services Project The Productive Safety Nets Programme. HLF4 KNOWLEDGE AND INNOVATION SPACE. Overall Story

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From Aid Effectiveness to Development Effectiveness in Ethiopia --- Two Case Studies

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  1. HLF4KNOWLEDGE AND INNOVATION SPACE From Aid Effectiveness to Development Effectiveness in Ethiopia --- Two Case Studies The Protection of Basic Services Project The Productive Safety Nets Programme

  2. HLF4KNOWLEDGE AND INNOVATION SPACE • Overall Story • Ethiopia’s progress against the Paris Principles and indicators is mixed. While • progress against some indicators is strong, others remain a work in progress. • However, Ethiopia is also home to two of Africa’s largest, multi-donor funded • initiatives that provide concrete examples of how developing countries and • donor partners can jointly overcome the challenges and trade-offs in • implementing the Paris Principles and moving from aid to development • effectiveness: • The Protection of Basic Service (PBS) Project • The Productive Safety Nets Programme (PSNP) • Components of these two programs can serve as models for other countries. 4/4

  3. HLF4KNOWLEDGE AND INNOVATION SPACE • The Protection of Basic Services (PBS) Project • PBS supports the decentralized delivery of five basic services specified in Ethiopia’s national poverty reduction strategy --- i.e., health, education, water & sanitation, rural roads, agriculture. • Development Objective: To expand access and improve the quality of these • five basic services in Ethiopia while continuing to deepen transparency and • local accountability in service delivery. • Currently, 11 development partners are involved in financing this project • alongside the Government of Ethiopia, which remains the single largest • financier. 4/4

  4. HLF4KNOWLEDGE AND INNOVATION SPACE • PBS (continued) • Four main components: • donor resources provided through government systems to regional governments to support the five basic services; • health commodities purchase and distribution; • PFM strengthening, Financial Transparency, Social Accountability; • Monitoring & Evaluation systems strengthening. • The donor-funded PBS Secretariat coordinates semi-annual reviews, provides technical analysis to inform policy dialogue, and serves as a single window for dialogue between Government and donors • PBS prevented significant donor fragmentation, creating a practical framework in which diverse donors with very different systems and vastly different risk tolerance could remain coordinated, aligned, and harmonized with government systems. 4/4

  5. HLF4KNOWLEDGE AND INNOVATION SPACE • The Productive Safety Nets Programme (PSNP) • June 2003: strong domestic will to change the uncoordinated, untimely, and • expensive project-based approach to emergency food aid and forge • stronger links between emergency response and longer-term development • The creation of the National Food Security Council • Donors also wanted to revise out-dated emergency aid system • Strong international political will in 2005 supported this trend • the G8 summit in Gleneagles, Scotland • Paris Declaration on Aid Harmonization 4/4

  6. HLF4KNOWLEDGE AND INNOVATION SPACE • PSNP (continued) • The PSNP shifted from a “project” approach of an individual donor to a • programmatic aid modality: • donors finance a common programme, • Government systems used to increase ownership, • aid fragmentation & inefficiency reduced. • Development Objective: improved effectiveness and efficiency of the PSNP • and Household Asset Building Programme (HABP) for chronically food • insecure households in rural Ethiopia. • Main components are: • Safety Net Grants, cash and in-kind transfers to chronically food- • insecure households • Drought Risk Financing --- provision of timely resources for • transitory food insecurity • Supporting the HABP • Institutional support for PSNP 4/4

  7. HLF4KNOWLEDGE AND INNOVATION SPACE • Paris Principle: Ownership • Paris Survey: Government Ownership in Ethiopia is strong. • The 5-Year Growth and Transformation Plan (GTP) aims to sustain high • growth rates, reduce poverty, meet the MDGs, and reach middle-income • status by 2025. The GTP is complemented by several sectoral • strategies and is liked to a MTFF. • PBS and PSNP • Both programs benefit from strong Government ownership and leadership. • Under PBS, the federal Government is the single largest financier of the block grant provided to regional and district governments. • PSNP was made possible by the Government’s leadership in creating the National Food Security Council. • Government ownership over various project components has changed over time. 4/4

  8. HLF4KNOWLEDGE AND INNOVATION SPACE • Paris Principle: Alignment • PBS and PSNP • PBS is well-aligned, making extensive use of Government systems for financial transfers but also for financial transparency, health commodity distribution, and M&E. • The Project also includes dedicated resources building country systems. • PSNP is increasingly well-aligned over time. • The use of country systems has improved. 4/4

  9. HLF4KNOWLEDGE AND INNOVATION SPACE • Paris Principle: Harmonization • PBS and PSNP are both models of excellent harmonization. • Both initiatives rely on semi-annual joint review missions involving all donor partners and different levels of Government to develop a shared understanding of results and challenges. This has prevented the proliferation of “donor missions” taxing Government capacity. • Both are coordinated through a cohesive donor group led by a combination of permanent and rotating co-chairs. • Both programmes feature donor coordination secretariats, fostering better harmonization and alignment, and providing analytical work to inform policy dialogue. • Both use commonly agreed implementation arrangements and harmonized procedures which have significantly reduced transaction costs. 4/4

  10. HLF4KNOWLEDGE AND INNOVATION SPACE • Paris Principle: Managing for Development Results • PBS and PSNP are examples of how Ethiopia has met the Paris target. • Both programmes use government M&E systems and report against a single, shared, results frameworks. • To ensure quality assurance and transparency, both programmes provide additional dedicated resources for systems-strengthening. • Both feature additional investigative studies beyond the government system to explain the actual results and the problems faced during implementation. Together with the government system these provide the information required for programme management and review. This has strengthened the mutual accountability and transparency to stakeholders, including citizens. • . 4/4

  11. HLF4KNOWLEDGE AND INNOVATION SPACE • Paris Principle: Mutual Accountability • PBS and PSNP • In both programs, the semi-annual joint review missions are the main fora for the mutual assessment of both Government and donor performance. • The regularity and systematization of these reviews has contributed to improved dialogue and assessments over time.. 4/4

  12. HLF4KNOWLEDGE AND INNOVATION SPACE • Development Results – Moving to Development Effectiveness • PBS Indicators: • Primary School Education (Grade 1-8) • Gross enrolment rate increased from 79.8% in 2005 to 94.2% in 2010 • and primary net enrolment rate increased from 68.5% to 87.9% for the same period • Health • Maternal Mortality Ratio (MMR) decreased from 871/100,000 in 2005 to 470/100,000 in 2010 • Under five mortality rate decreased from 123/1000 in 2005 to 87/1000 in 2010 • Access to potable water • Increased from 35% to 65.8% in rural areas during the same period 4/4

  13. HLF4KNOWLEDGE AND INNOVATION SPACE • Development Results – Moving to Development Effectiveness • PSNP-related impacts: • Covers 8 regions, 318 districts and more than 7.7 million beneficiaries • As a result of this intervention, improved household food security • Household asset protected, i.e., Distress sales of livestock decreased • Transforming livelihoods – increased growth in livestock holdings • Increased the utilization of health and education services, potable water, rural feeder roads • More than 269,000 households became food self-sufficient 4/4

  14. HLF4KNOWLEDGE AND INNOVATION SPACE • Lessons Learned • Ownership is a dynamic phenomenon --- one that changes over time and • may vary across programme components. • In capacity-constrained environments, it is necessary to set aside • dedicated resources in programme design to build country systems and • facilitate alignment. This allows Government and donors to jointly identify • and mitigate risks. • To improve harmonization, dedicated human and financial resources are • necessary for effective coordination. In PBS and PSNP, donors and • government are unanimous that donor coordination secretariats have been • a critical design feature of these programmes which enables effective • coordination, alignment, and harmonisation, reduces transaction costs on • both donors and Government, and ensures the quality of donor- • Government dialogue. • Using and investing in government M&E systems is essential to a • sustainable managing for results agenda. • Regular and joint fora for dialogue and exchange are invaluable for • building trust and realizing mutual accountability. A clear set of • indicators for gauging progress over time is necessary. 4/4

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