day 2.3 - swa’s role in improving aid effectiveness in the wash sector
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SWA’s Role in Improving Aid Effectiveness in the WASH sector
SWA Country Processes Task TeamGeneva, November 2013
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Agenda
1. Background
2. Aid effectiveness and the WASH sector
3. Strengthening country processes: examples from Liberia and Niger
4. Learning from other sectors
5. Trends: the changing aid landscape
Aid Effectiveness - Background
‘Aid effectiveness is the effectiveness of development aid in achieving economic and social development.’
‘It is about improving the quality of aid and its impact on development.’
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Why the need for increased effectiveness?
• Delivering effective development assistance is not only about quantities of aid but also about how it is delivered and used
• From 1970s to mid 1990s the predominant financing modality was the project based approach
• High transaction costs; burden on recipient countries to comply with many different donor requirements and procedures
• Fragmentation (donor darlings and orphans), duplication, lack of coordination, wasted resources
• Little accountability
• Isolated stand-alone projects, lack of longer-term focus on strengthening country processes; no capacities to sustain project results
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The International Aid Effectiveness Agenda
• 2005 Paris Declaration
• 2008 Accra Agenda for Action
• 2011 Busan Partnership Agreement complemented by
the New Deal for Engagement in Fragile States
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Principles of Aid Effectiveness
1. Ownership: Partner countries exercise effective leadership over their development policies and strategies and coordinate development actions
2. Alignment: Donors base their overall support on partner countries’ national development strategies, institutions and procedures
3. Harmonisation: Donor actions are coordinated, where their procedures are simplified and they share information to avoid duplication
4. Managing for results: Managing resources and improving decision making for results; and
5. Mutual accountability: Donors and partners hold each other accountable for development results.
Aid Effectiveness in the WASH Sector
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Strengthening Country Processes to deliver universal access to lasting services
• Increased sector capacity ensures governments can be held accountable for delivering sustainable WASH services to all citizens.
• Sector’s capacity to organize and oversee the delivery of services are fundamental to accelerating progress.
• Key building blocks of an effective sector include:
• Sector policy/strategy
• Sector coordination and dialogue
• Sector financing and budgeting
• Sector performance monitoring and learning
• Systemic approach to strengthening WASH sector capacities
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Virtuous cycle ofaid effectiveness
Source: Adapted from Williamson et al., 2008
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In practice…
• Remarkable gains in access to WASH
• Benefits are very unevenly distributed
• Aid is not well targeted
• Harmonisation and alignment continue to be a challenge.
• Processes remain highly fragmented, with multiple funding sources and dispersed domestic institutional arrangements
• Aid dependency and unpredictability
• Budget (Sector) support not significant
• Funding focused on new infrastructure insufficiently for sustaining a service
• Weak absorption capacity at all levels
Strengthening WASH Systems: The Cases of Liberia and Niger
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Key Findings
• Persistent aid dependence
• Susceptibility of the sector to broader institutional gaps of parent Ministries
• Improving policy and governance environment often not followed by expected investments
• Continuation of traditional funding modalities
• Need for cross-sector learning
• The 2015 Funding Cliff: Drastic funding falls beyond 2015
• Balancing the need for improving access, capacity, and institutional development
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Declining levels of Available funding: 2015 funding cliff?
Figure 1 Comparison of available financing, selected sub sector headings
Source: Constructed from MHE BPO data, Joint Review 2013
0%
20%
40%
60%
80%
100%
120%
2014 2015 2016
Comparison of Available financing for Based on Scenarios 1 and 2
Rural Water Scenario 2
Rural Water Scenario 1
Basic Sanitation:Hygiene promotionScenario 2
Basic Sanitation:Hygiene promotionscenario 1
Urban Water Scenario 2
Urban Water Scenario 1
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Liberia Funding gap after 2015
Learning from Other Sectors
Lessons from the health and education sectors
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Global Partnership for Education (GPE)
• Linking Partnership Mission with aid effectiveness - GPE Compact on Mutual Accountability outlines commitments of developing country governments, donors, and other partners respectively
• Strengthening structures and institutions e.g. through national education plans, Local Education Groups, sector coordination framework document and JSRs
• Sector-specific indicators to measure aid effectiveness
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Education example
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Mutual accountability
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International Health Partnership (IHP+)
• IHP+ Global Compact provides a set of principles and commitments for all signatories, calling for well-coordinated collective efforts focusing on delivering accessible sustainable health systems, and backing comprehensive country owned and developed health plans.
• IHP+ Results monitoring process reports donor and country progress against adapted Paris indicators
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Examples of IHP+ SPMs
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IHP+ Example 2
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Lessons learned
• Global and Country Compacts provide measurable tools for reinforcing mutual accountability at the country level
• Linking Partnership vision and mission to aid principles necessitates discussion of ways of working to achieve these goals
• Shared understanding of sector specific milestones and indicators promotes open dialogue to define and measure commitments
• Use and support country level networks increases bottom-up accountability and enhances feedback on partner performance
• Utilising existing data collection processes minimises transaction costs
• Assessing performance between partners and non-partners provides evidence of the role of a common framework for action
The Role of SWA
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Trends
Aid Effectiveness is more important than ever...
• Fiscal austerity in OECD countries is putting pressure on donor aid -increased emphasis on “value for money”, sustainability and impact of ODA
• Relative decrease for WASH as a proportion of total ODA
• In many low income countries, WASH sector remains highly dependent on aid
But the landscape it becoming more complex....
• Significant increase in the share of non-traditional donors
Discussion points
Thank You!