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Aid Effectiveness in Ethiopia

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Aid Effectiveness in Ethiopia

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  1. Aid Effectiveness in Ethiopia AbduljelilReshad Director, Resource Mobilization Directorate, FMOH, Ethiopia

  2. Background • Code of conduct /2005/ and HHM /2007/ was developed and endorsed, • CountryIHP roadmap for Ethiopia was launched (February, 2008) • Country IHP Compact developed & signed (Aug 2008) • IHP has built on the existing sector coordination and dialogue mechanisms , • MDG Performance Fund JFA developed and signed (April 2009)

  3. Background cont…. • 9 Major DPs Joined MDG-PF, • HSDP IV has been developed Using JANS attributes through participation of all partners • FMA conducted: JFA was reviewed as per FMA recommendation • Inline with HSDP IV Partnership framework and GHI strategy developed and endorsed, • GHI plan developed , provisionally endorsed and agreed to submit to US congress ,

  4. Aid Effectiveness: Ethiopian Definition • Aid supports HSDP priorities and strategies, • Preferably finance underfinanced areas, including health systems strengthening-HEP, HC construction, Service delivery at primary level, • Improved Harmonization and alignment of planning, budgeting and reporting,

  5. Progress so far (1) • Majority of development aid is now supporting the priorities and strategies of Government, • Different DPs support different strategies within government defined priorities:

  6. Progress so far (2): • There is clear evidence that development aid shifted to underfinanced areas: • PBS contributed in financing of employment of human resource (38000 HEWs and nurses and other health professionals), • About 50 % of 2,500 HCs constructed are financed by development aid, • The gains in malaria, TB and HIV aids are possible through GFTAM and PEPFAR Funding, • There is a recent increase in funding for maternal health: commodities, drugs, supplies, ME, Ambulance, etc…

  7. Progress so far:(3) • There is also increasing use of government planning , budgeting and reporting system: • Increasing number of bilateral DPs are part of the MDG PF; the size of the pooled fund tripled in three years to more than $100 million per year, • GF support for HSS is increased, • Predictability of funding Improved , Almost All DPs are participating in the RM exercises, • Big international agencies and DPs are financing through the budget support (PBS), • About 80% of DP activities are on plan , • 58% of DP activities on budget, • With the exception of few, most are using government reporting systems,

  8. Challenges • Some Bilateral Agency rules and regulation remains a challenge towards moving forward to one budget, • International development aid environment becoming more focused on attribution which will compromise the effort to reduce government transaction cost, • Government’s systems needs to be strengthened further to get the best out of available resources, • Requirement repetitive assessment by some DPs,

  9. What should the government do to improve aid effectiveness further? • Further Strengthening its systems: • Planning, Budgeting, Procurement, • In Ethiopian case, implement IFMS, The new grant management system, • Strengthening its dialogue and mutual accountability mechanisms with partners, • Continue to take proactive role to ensure partners only support country’s priorities,

  10. What should DPs do? • Explore their systems of planning, budgeting and reporting and as much they can be flexible to adapt to recipient country systems, • Move away from attribution, virticalization towards strengthening country health systems despite growing domestic pressures, • build in country capacity to understand and meet specifics , • As much as possible use government preferred service delivery, planning, budging and reporting systems.

  11. Conclusion (1) • Country IHP developed and endorsed by Major DPs, • National Health sector strategic Plan developed with the involvement of All DPs and stakeholders, • FM and procurement system improved from time to time to ensure value for money, • DPs supports the national strategic plan, mainly underfunded and government priorities,

  12. Conclusion (2) • Predictability of DPs funding Improved , Flow of fund increased , • Still there is a need to adhere country planning, budgeting and reporting system , • Needs further effort to in place mutual accountability ,

  13. Thank you so much for Your Attention • .