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This presentation by Rebecca Carter and Stephen Lister provides a comprehensive overview of when and how to effectively use Program-Based Budget Support (GBS). Key topics include recommendations from evaluation findings, contexts of successful implementation, and design considerations. The discussion covers various political, economic, and administrative backgrounds across countries, emphasizing the importance of trust between governments and donors. It highlights the incremental and country-specific design needed for GBS, along with the relevance of public finance management standards and long-term accountability.
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When and How to Use GBS Rebecca Carter, Stephen Lister 9 May 2006
Overview of presentation • Recommendations based on evaluation findings • Context (when/where) • Where has PGBS been (successfully) used? • Where could PGBS be used? • Design (how) • How has PGBS been (successfully) used? • How should PGBS be used? When and How to Use GBS
Where has PGBS been used? Country contexts: • range of country contexts covered by study countries • political, economic and administrative background and performance • public finance management (PFM) standards • entry decisions not based on standard (e.g. PFM) benchmarks • importance of government–donor trust, plus confidence in reform progress • importance of macro-economic and fiscal discipline When and How to Use GBS
Where can PGBS be used? • Most relevant in aid-dependent countries (but cf. Vietnam..) • Not directly explored by this evaluation: • federal states / sub-national level • fragile states • Not a simple yes/no decision, importance of: • design • scale • persistence and learning • More on design issues ...... When and How to Use GBS
How has PGBS been used? • Always part of aid instrument portfolio (aggregate and for individual donors) • Always linked to national poverty reduction strategy • Always a core of PFM concerns • Selectivity in sector/reform focus (overload) • Spectrum of general/sector-focused GBS instruments • (but no standard evolutionary sequence) • Different approaches in linking results to disbursements When and How to Use GBS
How should PGBS be used? • Incremental approach, country-specific design • Explicit attention to best fit of aid instruments (at donor, national, sector level) • PFM core • cf. OECD DAC good practices for GBS, extend to sector-focused instruments • Longer term approaches, trust, mutual accountability • Manage risks, build (donor) public understanding When and How to Use GBS
Thank You When and How to Use GBS