Greening development? - not just “aid”

ODI, 23 Sept 2008

Seán Doolan

Environment adviser

DFID Africa Division

Summary• Where do environment & climate change fit in donor

priorities?• How raise profile – political & economic debate?• How support national & regional institutions &

processes?• How engage country leadership in processes?• How integrate with development more broadly?

• What approach? • What support?• How resource?

Insights

• “Hard to be a long-term donor and see so little progress … or long-term recipient and not see this as entitlement”

• Environmental programmes as part of “high politics” & “party politics”

• Bilaterals more responsive to global & regional significance, policies & poverty • incentives & procedures?

• Environmental screening not emphasised for bilaterals• opt outs, reliance on multilaterals, over-reporting

• Delegation to multilaterals – scaling up, CC• Climate change to integrate environment & development

Reservations

• Few references to donor documents & evaluations

• Outcome-based “conditionality”?

• Multi-donor trust funds -“off balance sheet finance”?

• Environmental information – CITES not indicative

• Neglects role of EC/EU in setting norms

Reservations

• Predates shift towards general budget support• Sectoral allocations do influence aid emphasis• Income & population relate to MDGs

• PLAID & aid effectiveness? • Coding, duplicate reporting, proxy indicators• Terminology, practitioners• Do not rectify all inconsistencies in reporting …

Observations – governance & political economy

• Actors & institutional landscapes• Bargaining power of recipients, esp. BRICS• Policy instruments & procedures, political champions• Donors raise issues, local politics determine outcomes• “Windows of opportunity, strategic coalitions, alter

incentives, redistribution of capabilities”• National development planning essential• Individuals & happenstance important

“Environment” in development cooperation - after 2000

• MDGs – expansion of “neutral aid”• poverty-environment linkages failed to gain traction• MDG 7 – now reported as “water”

• Much in terms of safeguards, not investments• different to domestic environmental expenditure

• Shift towards programmatic funding• General & sector budget support• Increase in social sector spend• Harmonisation & alignment (Paris & effectiveness)• Climate change

“Environment” – the future

Economic growth & human development• NR-driven growth & conflict• Resource scarcity & competition (BRICS, climate change, fragile states,

chronic poverty)• Underpinning delivery of other objective

Need realistic integration• Reframing language, backstaging• Networks, coalitions & evidence• Public audit & accountability mechanisms

• Niche actors & champions• Inter-institutional/sectoral linkages?

“Environment” – future drivers

• Climate change• Political momentum• Environment marginalised by development architecture

& instruments• Need to re-engage on both sides

• “Environment” as driver of governance shifts?• “Environment” as result of shifts in governance &

political economy?

Health – India, infection managementService delivery

• nosocomial infections (MRSA …)• 63% injections unsafe in India• 2 million new Hepatitis B cases a year• 1.5 million deliveries PHCs, CHCs• 2,700 blood storage facilities• 280M AD syringes• 615 t needles• 550,000 outreach sites• Indian experience – WHO transfer

India – school water & sanit’UNICEF partnership

1993

• 630,000 primary schools

• 44% with water supply

• 8% with sanitation

2003

• 1.12 million primary schools

• 70% with water supply

• 51% with sanitation

• Enrolment & retention figures• Morbidity, time• Teacher motivation

NRE context in Ghana

NRE policy trade-offs - underestimated consequences GoGh Strategic Env Assessment neglected

Rethink policy dialogue & operational support to NRE Inconsistent consideration of NRE in-country Shift to budget support, harmonisation & alignment; country priorities & systems Disengagement from NRE policy support

(PPG7 analogy with Brazil) NRE marginal to "on-budget" support, aid instruments & development policy

Donor

Donor

Donor

Donor

Ghana Partnership Strategy

Joint Assistance Strategy

(JAS)

Multi-Donor (General)

Budget Support Prog Prog Prog

Development Partners & GPS coordination

Government & donor alignmentNew aid architecture, JAS = 14 donors, 90% aid

Growth & Poverty Reduction Strategy II

NREG preparation process (not linear)

Government of Ghana

Development Partners

Missions, virtual

networksNREG

task team

Ghana Poverty & Reduction Strategy II

Ghana Joint Assistance Strategy

Policy Dialogue – General Budget Support

Analytical work

NREG

Ministries & Agencies

Civil society

Policy matrices

Finance (MoFEP)

High level committee

Budgets & fund flows

ENR Sector group

Donor coordination on NRE

2001 Coordination • projects around NR Management Programme • disbursement focus, differing project requirements

2004 Sector group started• information exchange

2005 Economic & Sector Work • discussion at different level• economic case, not " protection"

2006-7 Country Environmental Analysis• platform for dialogue during workshops2007-8+ NRE Governance sector budget

support

NREG - evolving mix of financing instruments?

Shift from enclave projects

2006 2010 2015

Consolidating accountability

Sustaining progress

Multi-Donor Budget Support

£€$ - MoFEPSector budget programmes

£€$ - MoFEP & Ministries

Sector-aligned programmes£€$ - Ministries

Projects£€$ - Sector agencies

Paris linkages - ownership

• Anchored in sector dialogue & issues• Finance at centre, coordinating line Ministry inputs• Sub-sector matrices• Letter of Development Policy as overall statement • Nat’ Dev’ Planning Commission guidance on sector

planning • Medium-Term Expenditure Frameworks

- public financial management focus - analysis & planning on financial flows

- budget cycle

Paris linkages - alignment

• Single set of indicators, set by line Ministries & Agencies

• Finance commissioning related studies using country procurement mechanisms

• Multi-year budget commitment, annual assessments

• Flexibility in evolving indicators & targets• Reinforcing country sectoral & national planning

& systems

Paris linkages - harmonisation

• Donor procedures differ, only some flexibility• Joint conclusions from joint assessments?• Reconciling HQs with in-country offices &

processes• Active sector group dialogue key• Anchor in dedicated staff & in-country processes• Division of labour – NRE expertise can disappear• Linkage to general budget support dialogue

problematical• General budget support useful for existing

policies, not reform

Paris linkages - reflections

High transactions costs in set-up• for both Government & development partners• Weak strategic planning, M&E & financial

systems

Quality of input• Bringing NRE agencies to speed with aid

instruments• Policy matrices & indicators – sector plans vs

dialogue• “Matrix fatigue” & “guided ownership” • Civil society engagement sensitive

Paris linkages - analysis

Institutional planning & budgeting• Credibility of medium-term strategic planning &

budgeting• Effectiveness of NRE country systems &

processes to address development agenda

Analytical work on NRE• Scarcity of analytical work to make economic

case for NRE• Scarcity of institututional or expenditure

analyses