The
Role of Development Co-operation Agencies
There is
well-established commitment amongst development agencies to the principles
of strategies for sustainable development (Box 2). Many of these principles
are shared by the Poverty Reduction Strategy approach, the Comprehensive Development
Framework and the vision outlined in the OECD’s Shaping the 21st
Century: The Contribution of Development Co-operation. Section 4 outlined
a number of examples of good practice in this area, demonstrating development
agency commitment to some of these principles. But it also outlined a number
of ways in which agencies have failed to support these principles in practice.
This
chapter identifies practical ways in which development agencies
can ensure that they support sustainable development strategies.
It does not discuss good development practice in general. But
as agencies move to more strategic approaches, the distinction
between good development practice and good practice in supporting
strategies will become increasingly blurred. Agency roles are
considered at four different levels
-
In
the ways in which the internal procedures and practices
of agencies need to be changed.
-
At
the international level in discussions and negotiations
on issues of relevance to sustainable development strategies.
-
At
the national level, in the policy dialogue with partner
country governments.
-
And
at the operational level in the projects and programmes
which development agencies support.
This guidance
does not imply that development agencies should be involved at every stage
or in each area of the strategy process of a country. The role of agencies
should be supplementary and not integral. The starting point is existing national
policies and strategies. The specific areas where support might be sought
are for the individual country to decide, in consultation with its development
partners. Once this decision has been made, agencies should follow the principles
and guidance set out in this chapter. They need to respect the choices and
priorities made by a developing country for its development path, and the
pace at which they are pursued. Agencies should share technical knowledge
and suggest alternatives, but resist any attempts to impose solutions. So
while there are areas in which agencies can make an important contribution,
there are also areas in which agencies should limit their role.
Supporting
the development of a vision
A long-term
vision with broad goals and objectives is central to a strategy. The development
of a country's vision should be underpinned by a broad consensus across a
wide range of stakeholders on the values and long-term goals of society. It
provides policy- and decision-makers with parameters within which to operate.
Agency roles in this area should be limited. It is for the national government,
in consultation with in-country stakeholders, to define their long-term vision.
At the national
level, agencies can encourage the concept of visioning as a means by which
policy- and decision-makers can engage with stakeholders to debate the issues
that are important to different groups; the matters on which people are prepared
to compromise; the kind of quality of life people want for themselves and
their children; and their changing priorities. It is of particular importance
that agencies encourage the link between the vision, the setting of priorities
and the budget process.
At the operational
level, agencies can provide support for research, scenario development
and participatory processes and forums which develop, communicate and update
a country's vision and help strengthen an open and listening government.
Supporting
convergence, complementarity and coherence between different frameworks
In country-level
strategic planning processes there needs to be greater coherence between objectives
for poverty reduction, economic growth and investment, and environmental management
in pursuit of sustainable development. There are a number of internationally
agreed commitments for sustainable development, in areas such as trade, the
environment, and the rights of indigenous peoples to their natural resources
which need to be taken into account. This guidance suggests how this integration
can be achieved and builds on the DAC Guidelines on Poverty Reduction which
deal extensively with improving policy coherence and the steps which are required
to work towards it.
Internally,
agencies need to develop and institutionalise multi-disciplinary and collaborative
ways of working, considering incentives for staff to change in this respect.
They also need to strengthen the policy and analytical capability and strategic
thinking of staff, and address the skills mix sought during recruitment.
Bilateral
development agencies can also contribute to developing coherence within their
own countries. This is particularly important where more than one line ministry
is engaged in development co-operation activities with developing country
partners. Development agencies can take a lead in encouraging agreement between
line ministries in their own countries on a common approach; commitment to
convergence and the principles of strategic planning for sustainable development;
and agreement to common objectives and plans.
At the national
level, agencies should promote coherence between a country’s existing
planning frameworks – including those developed as a domestic initiative and
those developed in response to international agreements. In particular, agencies
should encourage improving the quality of poverty reduction strategies, stressing
the need to establish an on-going process for strategic planning; integrate
economic, social, environment and governance issues; and develop closer working
relationships between different frameworks.
At the operational
level, agencies can encourage convergence between frameworks and provide
support for policy coherence by building capacity for cross-sectoral and multi-disciplinary
working in the partner country. This may include strengthening skills in policy
and stakeholder analysis; abilities to build alliances across departments
(Box 24 gives an example of how this can be done in practice) and manage conflicting
interests and objectives to balance short- and long-term considerations; and
management tools for decision-making on complex issues.
|
Box .24: Fostering
coherence between different frameworks in Mali
In Mali, two strategic
planning processes began simultaneously in 1994: the elaboration of
a National Environmental Action Plan (NEAP) and of a National Action
Programme (NAP) for the Combat of Desertification. While the NEAP
process was to provide the overarching framework for various environment-related
programmes, specific action programmes for addressing desertification
issues were contained in the NAP.
To ensure coherence
between these different plans and programmes, a permanent secretariat
was formed to guide the process with staff drawn from the planning
units of five key ministries and chaired by the Ministry for Rural
Development and Environment. Under the NAP, a Donor Focal Point was
established with the following duties: (i) to collate and disseminate
information to national institutions and external partners; (ii) to
develop consultation mechanisms among external agencies; (iii) to
establish financing mechanisms; (iv) to support the implementation
of operational plans; and (v) to strengthen and support national structures.
Mali now has a
combined NEAP/NAP, containing national and local-level action plans
that have been co-ordinated among the national government, civil society
and development agencies. |
Co-ordination
of development agencies
Co-ordination
of development agencies in support of nationally-owned strategies is crucial.
Promoting country-leadership is the key tool for the co-ordination and harmonisation
of external partners’ interventions.
Internally,
it is important that agencies have the ability to engage meaningfully in-country
co-ordination efforts. This may be enhanced by the redeployment of staff and
decentralisation of authority from headquarters to country offices, where
possible, based on clear principles of subsidiarity.
The burden
on national governments to comply with the multiplicity of differing and complex
agency procedures will be eased through improving co-ordination and harmonising
those procedures. Major efforts are needed to simplify and harmonise procedures,
bearing in mind the need to ensure transparency and accountability. In this
regard, the DAC Task Force on Donor Practices is expected to provide further
guidance aimed at strengthening ownership and reducing the transaction costs
and accountability risks involved in delivering aid for both the development
agency and the partner country.
At the international
level, agencies should work to ensure co-ordination and consistency in
their commitment to the principles of strategic planning for sustainable development.
Working with other development agencies should be considered a precondition
for effective development assistance. The combined international efforts in
the HIPC initiative and agreement on key issues amongst the Utstein Group
are examples of the recent move to more common ways of working, closer co-ordination
and collective consensus on strategies. Annual World Bank/IMF meetings are
useful forums to develop closer working relationships and policy coherence
with bilateral and other international agencies in supporting country-level
strategy processes.
At the national
level, agencies should promote both country-leadership and agency co-ordination
(Box 25). There is an emerging practice of holding formal Consultative Group
meetings in recipient countries, for example in Bolivia, Ghana, Tanzania and
Uganda. This encourages country-ownership and co-ordination with agencies
active in-country and is a more helpful approach than holding such meetings
in Europe. The less formal in-country co-ordination meetings between agency
representatives and government are also useful forums. The partner country
should drive and chair these forums.
|
Box
. 25:
Improving
agency co-ordination around the poverty reduction strategy process
Ethiopia’s
Poverty Reduction
Strategy process has presented an opportunity for agencies and civil
society to engage with government in a meaningful dialogue. As one
of the most food insecure countries in the world, government, agencies
and civil society see an urgent need for greater co-ordination to
help Ethiopia pursue a more sustainable approach to poverty reduction.
The desire of so many to be involved in the process, and awareness
of the need not to overload government, has prompted agencies to improve
their co-ordination and seek to work better together. Joint communications
to government, reflecting the collective view of agencies, for example
on the draft interim PRSP, indicate a growing willingness by agencies
to co-operate for the common good. Consultative groups, led by government,
are helping to improve agency co-ordination and communication.
In Bolivia,
an informal network of bilateral agency representatives has been formed.
It reviewed the Interim PRSP and provided a collective view to government
on minimum expectations for the PRSP and how agency support could
flow from this. The network meets regularly to review successive documents,
analyse steps in the process, and agree common positions for liaison
and improved co-ordination with multilateral agencies. |
Supporting
national ownership and commitment
It is now
widely accepted that countries need to own and lead the development and implementation
of their strategic planning processes. Ownership cannot be imposed but must
grow out of genuine desire, active engagement and transparency on the part
of the national government and other stakeholders.
Internally,
agency programmes and planning cycles can support country ownership by recognising
and strengthening the country’s strategy. Agencies must assume a secondary
stakeholder role so that their country support strategies are based on and
subordinated to the country’s nationally-owned strategy where one exists.
Development co-operation agencies need to ensure that their internal procedures
and requirements reflect and respond to country needs and do not drive processes
in-country. This is particularly important in countries which are heavily
dependent on external support.
At the international
level, the development community should put into practice the commitment
to build on existing in-country strategic planning processes. Otherwise the
risk is that new, externally-defined strategies undermine local processes
by implying that an entirely new process is needed. Emphasis should be placed
on ensuring that existing country strategies are able to address emerging
issues.
There is
a recognised tension between country-ownership and agency concerns about strategy
content. The process needs to be results oriented and financial conditionality,
essentially for safeguarding scarce resources, needs to be used selectively.
Strict timetables are not advisable as they can erode or limit ownership and
commitment. It also tends to divert attention from the long-term substantive
issues of sustainable development, towards short-term financial issues which,
while urgent and important, should not assume a central role. Instead, agencies
should promote a broadening of ownership and joint agreement with country
partners around achievable targets and outcomes.
Early experience
with poverty reduction strategies has revealed some important lessons on supporting
national ownership and commitment, and on supporting strategies for sustainable
development more generally. A number of these lessons are outlined in Box
26.
| Box
. 26: Lessons from poverty reduction strategies - learning from experience
A new approach
to country development of poverty reduction strategies was introduced
in 1999 by the World Bank and the International Monetary Fund as a
basis for providing financial support. Countries were invited to design
their own strategy, and operationalise it with a Poverty Reduction
Strategy Paper (PRSP). The PRSP process should build on existing national
strategies and policies, be country owned and country driven. Some
countries already had what were, in effect, PRSs.
Whilst no formal
review of PRSPs has taken place, the country dialogues undertaken
as part of the process for developing this guidance included reviews
of the PRS process. The lessons outlined below draw from DAC member’s
engagement in other countries and in international PRSP-related workshops.
They are also consistent with broader international experience and
the PRSP Progress Reports of the World Bank/IMF:
-
The role of
external partners in promoting and ensuring country ownership
must be strengthened.
-
Greater attention
should be given to building on existing strategies. There is a
need to ensure completely new processes are not introduced and
that owners of existing strategies are not marginalised.
-
The pressures
caused by the incentives for developing even Interim PRSPs within
a short time-frame must be recognised and addressed.
-
Agencies and
countries need to consider consistency of the PRSP with other
international agreements for sustainable development .
-
Agency co-ordination
at the international and country levels is improving but needs
to be strengthened.
-
Multi-stakeholder
participation in the process has been inconsistent.
International
experiences to date has resulted in some changes including:
-
Articulation
of PRSPs as a means to operationalise the Comprehensive Development
Framework.
-
Recognition
of the need for a longer time horizon.
-
Recognition
of the need to institutionalise changes in the behaviour and ways
of working of both countries and agencies to ensure greater country
ownership.
The development
community, including the IMF, World Bank and countries themselves,
recognise that there remain a number of challenges to be addressed
to ensure the success of this approach. Countries in need of financial
support have to develop interim-PRSPs at a rapid rate, and external
partners and technical assistance could help ensure that quality and
content are not compromised. As PRSPs increasingly become the basis
for agency support, there is a need to improve the analysis, process
and content, ensuring the integration of key development issues, such
as gender and environment. The tension between country-ownership and
agency concerns about content need to be informed by guidance and
dialogue, and addressed on a country-by-country basis. There is also
a tension between the concept of country ownership and the prerogative
of the World Bank and IMF Boards to approve an I-PRSP/PRSP as a sound
basis for concessional assistance or debt relief. Active, constructive
dialogue with the country is helping to reduce this.
There is growing
recognition of the need to consider poverty-environment linkages and
long term sustainability issues in PRSPs. Consideration of these issues
and their integration into the policy analysis process is being taken
up by individual countries and the Joint Staff Assessment guidelines
of the IMF/World Bank. The need to develop a common framework for
more systematic assessment of poverty and the impact of major policy
changes, would be strengthened by the inclusion of these issues.
Other challenges
include the need to improve development agency collaboration to achieve
consistent agency cohesion and compliance with the partnership principles
agreed with countries; the need to institutionalise changes in behaviour
and ways of working of both agencies and countries, in order to promote
country ownership; and staff capacity to accept and adapt to the process
approach inherent in poverty reduction strategies. |
At the national
level, agencies should encourage countries to strengthen their
leadership of, and commitment to, strategic planning process. It is particularly
important to encourage the full participation of all line ministries, including
planning and/or finance ministries. Agencies may encourage and support mechanisms
for a shared responsibility across government as well as between government
and other stakeholders; and promote new partnership agreements based on transparency,
accountability and joint monitoring.
At the operational
level, agencies should focus on playing a catalytic and
supporting role in country-level strategy processes. Agency should integrate
their support into the work programmes of mainstream ministries or the work
of other country participants, rather than setting up separate co-operation
procedures and mechanisms. Support could, for example, analyse how existing
frameworks can be used as building blocks for developing strategies for sustainable
development.
Working
to foster effective participation
Broad-based
participation in strategic planning will strengthen local ownership of the
process, content and outcomes. Participation depends on the capacity of those
responsible for organising and managing participatory processes, but also
on the capacity of participants to get engaged in them. Support for participatory
approaches is needed on an on-going basis.
Internally,
agencies should strengthen their expertise in participatory processes. All
agency staff need to be aware of the importance and implications of participation
and some will need to acquire consultative and participatory skills.
Agencies
should ensure that the development and review of their country support strategies
includes participation of in-country stakeholders. This needs to be done in
a manner that does not, in reality or in appearance, undermine the national
approach to participation.
At the national
level, agencies should promote multi-stakeholder participation
in strategy processes. Different forms of participation are appropriate in
different cultural contexts, for different requirements, and in different
circumstances. Agencies need to be sensitive to this and limit their role
to promoting inclusive participatory processes in general, rather than specific
solutions.
At an operational
level, agencies should recognise and strengthen existing national capacities
in participatory methodologies rather than rely on international expertise.
Agency support can, for example, be made available for participatory planning
processes to make use of this national capacity. Supporting training, and
international exchange of information and experience provides another way
of strengthening national capacity.
Strengthening
strategic analysis
Strategic
planning processes need to be based on and informed by sound diagnosis. Understanding
the causal links between the various dimensions of sustainable development,
particularly poverty, environment and growth, is crucial.
Internally,
as agencies agree strategic approaches and new partnerships with developing
countries, coherence will need to be maintained with an agency's safeguard
policies In particular, this means ensuring that poverty-environment linkages
and issues of long-term sustainability are integrated into the concept, development
and support of strategic planning approaches.
At the national
level, agencies can help to strengthen understanding of the long term
implications of policy decisions and promote improved integration of the various
dimensions of sustainable development into strategic planning processes. Where
integration is not possible and conflict remains, such as between long-term
environmental objectives and short term measures for poverty reduction, agencies
can promote processes to analyse trade-offs; transparency in the decision-making
process; and mobilisation of alternative support (e.g. GEF resources) to reduce
the possibility of compromising long-term objectives.
At an operational
level, agencies can strengthen capacity for policy analysis to improve
policy coherence and impact. This includes strengthening of appropriate analytical
tools and methodologies which help to quantify and integrate external costs
and benefits and integrate them into policies and planning. Strengthening
capacity in methodologies such as the World Bank’s Genuine Savings approach
and the World Economic Forum’s Environmental Sustainability Index may be useful
in this regard.
Support can
be provided for capacity development in methodologies for strategic assessment
and environmental economics. This can include strengthening existing mechanisms,
such as state of environment reporting, poverty-environment studies and participatory
poverty assessments (Box 27) so as to include consideration of the links between
poverty and environment.
| Box
27: Supporting
strategic analysis: participatory poverty assessment in Pakistan
From March 2001
to April 2002, a participatory poverty assessment (PPA) exercise will
be undertaken in Pakistan, with development co-operation agency support.
This will inform the Poverty Reduction Strategy process and will be
carried out at national and provincial levels, and in 48 districts.
Development agency
support is assisting Pakistan to (a) strengthen this analytical tool
and methodology to ensure it captures a more comprehensive understanding
of the causes and consequences of poverty; (b) use it to strengthen
policy analysis skills; (c) inform the policy decisions and priority
setting in Pakistan’s development planning processes.
Poverty-environment
links will be identified within the research scope and methodological
framework of the PPA exercise. This will ensure the inclusion of fundamental
aspects of sustainable development which would otherwise not have
been captured.
The aim is to
strengthen the analysis for the PRS paper and process and to provide
a natural convergence point for poverty reduction programmes and implementation
of recommendations from the mid-term review of Pakistan’s National
Conservation Strategy. |
Partner countries
can be supported in analysing the economic, social and environmental implications
of international agreements which they enter into – such as trade, investment
etc. Strengthening the policy capabilities of environment ministries and civil
society environmental groups to engage in the strategic planning process is
likely to lead to a greater appreciation of environment-poverty-growth linkages
by other government ministries, particularly those economic, planning and
finance portfolios.
Strengthening
strategy management systems
Strategy
processes aim to bring about continuous improvement. This requires mechanisms
for information generation, debate, communication, decision-making and monitoring.
These need to be co-ordinated in a way which allows stakeholders to play their
part and at a pace suitable to all.
Supporting
management capacity at all levels
Effective
strategic planning processes require management systems that promote co-ordinated
cross-sectoral and multi-disciplinary ways of working. Responsibilities and
relationships between the different key participants, need to be clear. This
has implications at both the national and local level. Building capacity at
the local level is of particular importance in countries where decentralisation
is occurring.
At the national
level, agencies can promote capacity for decentralisation, devolution
and reform of local government so that it is accountable, transparent and
effective. They can encourage information and ideas from decentralised levels
to be considered centrally. Agencies can also promote the importance of policy
coherence at decentralised levels and of the need for strong local institutions
to forge coherence at higher levels.
At the operational
level, development agencies can support decentralisation by providing
support to strengthen local administrative, planning, analysis and other capacities;
by encouraging processes that are inclusive and representative; and by strengthening
mechanisms to feed local level policy issues to the national level. Agencies
can help to strengthen management and accountability systems at all levels,
and processes to agree the appropriate levels at which decisions should be
made.
To encourage
cross-sectoral working, greater co-operation between line ministries will
be required at all levels. Agencies can encourage this by providing support
for the establishment of formal and informal co-ordination mechanisms and
greater involvement with civil society. Changing the culture of organisations
to promote co-operation is key to this. Agencies can support strengthening
the management development capacity of staff. This can include developing
a range of skills in organisational and institutional management.
Public
communication
Sustainable
development and strategies to achieve it are complex issues. They are about
improving current circumstances and dealing with change. Good communication
is required to ensure broad ownership and participation. National and local
media are important vehicles for communicating these issues.
At the national
level, agencies may engage in promoting governments' awareness
of the importance of information, communication and education to enable the
effective involvement of citizens in sustainable development. Agencies can
promote the development of greater awareness among the population of sustainable
development and its links to a nation’s vision and strategic planning processes.
At a more
operational level, agencies can provide support for the development
of communication strategies, providing support for training in public communication
issues.
Conflict
prevention and management systems
An important
element of a country’s strategic planning system is the establishment of mechanisms
to reconcile the short-term positions and longer-term interests of different
stakeholders, in order to prevent differences escalating into conflict. The
appropriateness of such mechanisms are highly dependent on, and sensitive
to, the cultural context of a country. Agency roles in this area should be
limited.
Internally,
agencies should create more staff awareness of, and skills in, conflict management,
through training in and use of mediation and arbitration.
At the national
level, agencies can help strengthen awareness of, and trust in, alternative
dispute systems, both within and outside government, and how they may contribute
to and compliment traditional systems of dispute management
At an operational
level, agencies should limit their role to the provision of support for
strengthening national capacity in dispute resolution. Such support can include
providing training for mediators, assisting the development of alternative
methodologies and practice; and enabling international networking.
Information
systems
Strategic
planning and decision-making for sustainable development depends on credible
and reliable information on environmental, social and economic conditions,
trends, pressures and responses, and their correlation with strategy objectives
and indicators. Too often, development interventions to support information
systems have not been demand- or purpose-led, leading to a lack of good information
to support policy and decision-making.
Internally,
agencies should promote sharing of lessons in supporting country-level strategies:
among different departments within organisations; among different agencies
of the international development community; and between agencies and country
partners.
At the national
level, agencies can play a useful, catalytic role in promoting international
exchange and learning of strategic approaches to sustainable development,
and in supporting efforts to improve the demand by policy-makers for up-to-date
information on sustainable development.
At the operational
level, agencies can support the strengthening of capacities in
data gathering and analysis, and the development of information management
systems. Wherever possible, local institutions should be used for information
gathering, analysis and planning. Where external sources are required, twinning
and co-operation with local institutions should be arranged.
In-country
monitoring of strategies
Monitoring
and evaluation is critical for improving strategic processes. Its enables
a country to track progress and to distil and learn lessons, and so respond
to emerging challenges.
Internally,
agencies need to ensure that support for the monitoring of a country's
strategy is not based on their accountability needs, but is primarily for
the purpose of helping a country’s own learning and improving progress towards
its agreed objectives and goals. However, such indications of progress can
be used to assess the contribution and possible impact of agency support.
(See section 6.11 on joint monitoring between the agency and country partner
of an agency’s success in supporting strategies for sustainable development).
At the national
level, agencies can play an important role in supporting and advocating
the development of indicators and monitoring instruments for a country’s own
assessment of progress towards sustainable development. Only if such instruments
are nationally-owned are they likely to be successful. It is important to
underline the role of both data and indicators, and the organisational aspects
relating to monitoring.
At the operational
level, agencies can support capacity-building for statistical and other
analysis to monitor strategy processes, indicators and progress towards nationally-defined
objectives. This could include capacity to develop and analyse qualitative
as well as quantitative data and the development of systems which ensure that
national policy and programmes are reviewed and revised to reflect impact
at the local level.
Financial
resources for strategies
A strategic
planning process needs to be fully integrated into the national budget to
ensure that plans have the financial resources to achieve their objectives.
Conversely, the national budgetary process needs to be informed by meaningful
planning. The precise form of such budget processes will vary from country
to country. In a number of cases they have adopted Medium-Term Expenditure
Frameworks (MTEFs), as a means by which to relate key country priorities to
overall budget allocations.
Internally,
agencies need to ensure that their financial commitments and programmes flow
out of, and are based on, a country’s development strategy and national budget
and priorities. Agency decision-making systems should not slow down developing
country government’s efforts to boost and co-ordinate budget allocation, particularly
in countries still dependent on agency financial support. Financial commitments
by agencies need to take into account the timing of the country’s budget process,
making timely financial commitments and allocations. Greater openness by agencies
to changes in possible future financial support and a commitment to longer
term support would increase transparency and assist countries to plan on the
basis of more predictable resources.
At the national
level, agencies can strengthen capacity for building budgets based on
strategic priorities. They may also have a role in encouraging greater accountability
in making allocations through strengthening links between the budget process
and policy prioritisation.
Agencies
can also consider how better integration of agency resources into the government
financial management systems can be achieved with greater transparency and
accountability: the provision of budgetary support through programme aid and
sector-wide approaches may be useful in this regard. As agencies increasingly
move towards providing programme and sector support, ensuring effective participation
by a wide range of stakeholders in the budget process, and in the setting
of priorities, becomes increasingly important.
At an operational
level, agencies can provide resources to strengthen financial management
capacity and to encourage greater transparency of the budget process, allowing
for wider stakeholder participation in the budgetary decision-making and prioritisation
process. Improving these skills and transparency in this area is essential
for developing a trusting partnership between agencies and country partners.
This is necessary for increasing opportunities for agencies to provide direct
budget support.
Agency financial
support through a project approach can still be viable, but agencies need
to work closely with government to ensure that project interventions are compatible
with the government’s strategic goals and priorities; and that they are sensitive
to local conditions. and that they fully participate in government efforts
to co-ordinate agency support and agency compliance with the principles of
the strategic partnership between agencies and government.
Working
together in practice
The preceding
sections have set out how development agencies can support strategies for
sustainable development. Cutting across the recommendations suggested in this
chapter is the need for agencies systematically to support the strengthening
of country capacity in all aspects of strategic planning processes and the
need for sharing of international knowledge and experience. Many of these
recommendations will require changes in the culture, behaviour and procedures
of agencies, so that they support – rather than control – in-country
strategic processes. Box 28 gives an example of how this is working well in
practice.
|
Box
. 28 : Agency adherence to the principles of strategic planning for
sustainable development: the example of Uganda
Uganda’s National
Poverty Eradication Action Plan (PEAP) was developed in 1997. In 1999/2000,
when the PRSP approach was introduced, the PEAP was due to be revised
to take account of work undertaken since 1997. This included a Plan
for the Modernisation of Agriculture (PMA), a Participatory Poverty
Assessment, a Poverty Status Report and the establishment of a Poverty
Action Fund.
The PEAP was reviewed
by a participatory drafting process. It also had strong national ownership
and political commitment. This commitment and ownership, together
with the collaboration of a number of bilateral agencies, enabled
the government to agree with the IMF and World Bank that the PEAP
would be accepted as Uganda’s Comprehensive Development Framework
and its PRSP.
Agency support
to this process was critical in ensuring commitment to an existing
process; in strengthening the quality of the process; and in supporting
additional analysis. The provision of moral (as well as financial)
support to key stakeholders, such as the Poverty Monitoring Unit in
the Ministry of Finance and Economic Planning, was important in developing
trust, open dialogue and the provision of targeted, demand-led support
to the process.
This targeted
support was helpful in undertaking poverty-environment analysis and
integrating these aspects into the PEAP and the Plan for the Modernisation
of Agriculture. It also helped to support the National Environment
Management Authority to lobby those leading on the process to strengthen
the integration of the environment and long-term sustainability into
the PEAP and the PMA. This will improve the achievement and sustainability
of the intended outcomes.
The challenges
for agencies in this process included the need to resist the temptation
to direct the process; to ensure that external requirements did not
drive Uganda’s agenda; and to improve agency co-ordination and coherence
on both the process and content of the PEAP. Agency commitment to
addressing these challenges has resulted in more focused and effective
Consultative Group meetings which are now being held in Uganda. The
less formal in-country co-ordination meetings between agency representatives
and government are now much more cohesive with stronger commitment
to the government strategy and the partnership principles of the PEAP;
there is greater subsidiarity of agency programmes to the government’s
objectives and procedures.
Internal challenges
included improving harmonisation of policies between agency head-quarters
and country offices: head-quarter commitment to supporting strategic
planning approaches are not always well reflected at country office
level. This reflects the need to strengthen agency staff capacity
to adapt to the change; the need for changes in agency procedure and
practice; and greater flexibility in providing assistance sensitive
to the country context. |
Monitoring
the response of DAC members to this policy guidance
Scope
Development
co-operation has the potential to either strengthen or weaken a country’s
strategic planning processes. Its impact is seldom neutral. Agency application
of, or support to, the principles outlined in this guidance (Box 2) will make
a positive contribution to the capacity of partner countries to strengthen
their strategic planning processes for sustainable development. Development
co-operation activities undertaken without regard to these principles could
easily undermine such processes.
The application
of these principles is not only relevant for support to a country’s overall
strategic framework, but also to the range of initiatives which flow from
this, such sector- wide approaches (SWAPs), policy reform or capacity strengthening.
Monitoring the extent to which DAC Members’ follow this policy guidance should
include reviewing the range of these initiatives with regard to the recommendations
outlined in this guidance. Issues relating to convergence and coherence (Section
6.2) and co-ordination (Section 6.3) and ownership (Section 6.4) have particular
relevance in this regard.
Indicators
In collaboration
with partners, development co-operation agencies will have to develop indicators
for assessing their own performance in supporting strategy processes, at the
local, regional or national levels. These will have to be based on countries’
own indicators for measuring progress towards achieving the target and adjusted
to the roles of external agencies. The questions outlined in Box 29 could
be useful in this regard.
Box . 29:
Key questions for assessing, and learning from, development agency performance
in supporting strategy processes
-
To what extent is the agency’s country
assistance strategy based on, and aligned to, the partner country’s
own sustainable development strategy?
-
What specific
programmes does the agency finance which support strategic planning
for sustainable development? To what extent do they respond to
the principles outlined in this policy guidance?
-
To what extent does the country assistance
strategy contain a specific analysis of the partner’s capacity
in relation to strategic planning for sustainable development
(participation, analysis)?
-
To what extent is this analytical
work done jointly with other agencies and country partners?
-
What actions has the agency taken
to promote convergence, complementarity and coherence between
planning frameworks in the country?
-
When providing support in sectors
such as agriculture, transport, health, energy, trade and investment,
how does the agency foster relevant cross-sectoral linkages and
policy coherence in the country?
-
To what extent are the activities
supported by the agency in the country co-ordinated with those
of other bilateral and multilateral development agencies, under
the leadership of the partner country? What support for such country-led
co-ordination is the agency providing? Is strategic selectivity
or division of tasks emerging? How is in-country co-ordination
helping to resolve differences or friction among agencies?
-
How has the agency undertaken, where
possible, any harmonisation of policies and procedures with other
agencies at the country or sector level?
-
How is the agency sharing experiences
gained in relation to strategic planning for sustainable development
with other actors?
-
How has the agency distributed, and
developed understanding of the content of, this guidance among
its staff? How are issues relating to strategies for sustainable
development included in the agency’s staff training programmes?
-
To what extent are the values and
principles contained in this guidance known and embraced by agency
staff?
-
How are agencies learning internally
from their assistance to a country’s strategic planning process?
-
What changes has the agency made
as a result of this learning to improve its adherence to the principles
outlined in this policy guidance (notably relating to participation,
country ownership and cross-sectoral policy integration)? How
have staff incentives changed for supporting strategies for sustainable
development ?
-
What special efforts has the agency
made to support and facilitate civil society participation in
strategic planning processes?
-
How do the agency safeguard policies
and the application of strategic assessment methodologies relate
to a country’s strategic planning framework ?
-
To what extent does the agency encourage
and support the application of strategic assessment methodologies
when supporting sector wide approaches (SWAPs) and policy reform?
-
To what extent is the agency able
to provide long-term funding for strategic planning processes?
If the agency is providing shorter-term funding (e.g. annually)
to what extent/how has the agency ensured that this contributes
to, and is consistent with, a country’s longer term planning process
for sustainable development?
-
To what extent is the agency funding
clearly linked with the national budget of the country?
-
In what ways has the agency promoted
a broadening of ownership and joint agreement around achievable
targets and outcomes?
|
Options
for monitoring
Possible
options for monitoring the extent to which DAC members follow this guidance,
and effectiveness in providing support for the development and operation of
strategies for sustainable development include:
-
At
the country-level in a partnership between developing countries
and development agencies: In line with the partnership
principles advocated in this guidance, reviews of agency assistance
programmes could be undertaken jointly between the agency
and country, with a view to learning together from the successes
and failures in supporting national strategies. Partner countries
themselves are best placed to evaluate the contribution of
agencies’ efforts to support their strategic planning processes.
Assessing agency performance through a partnership between
agencies and developing countries is therefore a necessary
approach. It would help identify constraints and actions required
by agencies and partner countries alike to improve the partnership,
laying the ground for continuous improvement. The assessments
could take the form of separate thematic evaluations, or be
integrated as one component of other relevant evaluations.
-
At
the international level through peer review between DAC members.
It would also be useful to assess progress by peer review
undertaken by other development agencies. This would have
the benefit of enabling comparisons to be made and learning
from how different agencies have provided support. Monitoring
the effectiveness of donors in supporting strategy processes
and capacities in partner countries could be integrated as
part of the regular DAC Peer Review Process
