National Development Plans and the Donor context

Safari Conference Centre02 November 2009

Presented by: Leonora JoodtChief Development Planner

REPUBLIC OF NAMIBIA

OFFICE OF THE PRESIDENTNATIONAL PLANNING COMMISSION

Presentation Outline• Role of Government in National Development

• Donor Participation in past formulation and implementation of NDPs

• Vision 2030’s position of Development Partners

• Donor’s role in the current plan

• NDP3 Resource Envelope and other finance options

Role of Government in National Development• Government has since independence (1990) adopted planning

system as a development tool- strong commitment to planning-reflected in Article 129 of the constitution –which establishes the NPCS

• NPCS in Office of President, charged with the responsibility for planning of national priorities and directing the course of national development, as well as mobilizing and management of external resources

• Since Independence Namibia has implemented the following plans:– 1991-1994: Transitional NDP– 1995-2000: NDP 1– 2001-2005: NDP 2– 2007-2012: NDP 3 (current plan that is being implemented)

• Government's role in planning is to provide an enabling environment through an appropriate set of policies and incentives to be conducive for economic growth.

• The various O/M/As are responsible to initiate, implement and monitor and evaluate programmes and activities

• As well as to consult and negotiate in the formulation, implementation, monitoring and reporting of the programmes and activities

Role of Government in National Development

Donor Participation in past formulation and implementation of NDPs

• Namibia needed investment in development efforts after independence, 21 March 1990

• GRN funding was not sufficient to address disparities• GRN saw development as collective effort with development

partners• Geneva 1995 Donor Round Table was held-dialogue with

Development Partners-to achieve NDP1• External resources/support was solicit to implement the first

plan • Donor support came in form of financial and technical

assistance-orientation of policies, strategies and development programmes

• Donor assisted to properly allocate resources-with focus on national priorities

• Support was provided at inception, financing and management of programmes.

• Much progress was achieved in NDP1 but major challenges remain to be met-addressed in NDP2– Poverty reduction– Employment creation– Reduction of inequalities– Combat HIV/AIDS

• Second Donor Round Table was held in Swakopmund in 2003 for NDP2

• Donors provided support for relevant policies

Donor Participation in past formulation and implementation of NDPs

• NDP1 actual investment was N$ 15.2 Billion –GDP growth of 3.7% was achieved against projected growth of 5%

• NDP2 actual investment was N$ 24.4 Billion-GDP growth of 4.7% was achieved against target growth rate of 4.3%

Donor Participation in past formulation and implementation of NDPs

Vision 2030’s position of Development Partners

• Vision 2030 is a broad, unifying framework that will help guide the country’s five-year development plans

• External development partners-guided by national development priorities

• Main priority remain poverty reduction-economic growth

• External assistance-improve status of marginalized groups

• Should not perpetuate dependency or undermine national priorities/policies

Vision 2030 New Ways of Thinking and working

• Move from developing and implementing a fixed plan,

• Move from a view that it is the state or Government alone that is responsible for sustainable development

• Move from centralized and controlled decision making

• Move from a focus on outputs (e.g.

projects and laws)

• Move from sectoral planning

• Operating adaptive, dynamic systems or processes that can continuously improve.

• Responsibility to society as a whole with full partnership;

• Sharing results and concerted actions;

• Focus on outcomes (e.g. impact)

• Integrated planning – within and between sectors and institutions

NDP3 KEY RESULT AREAS (KRA)

KRA1KRA1 – Equality & Social Welfare – Equality & Social Welfare KRA2KRA2 – Peace, Security & Political Stability – Peace, Security & Political Stability KRA3KRA3 – Productive & Competitive Human Resources – Productive & Competitive Human Resources & Institutions& Institutions KRA4KRA4 – Competitive Economy – Competitive Economy

KRA 4A: KRA 4A: MacroeconomyMacroeconomy KRA4B: KRA4B: InfrastructureInfrastructure

KRA5KRA5 – Quality Of Life – Quality Of Life KRA6KRA6 – Productive Utilization Of Natural Resources – Productive Utilization Of Natural Resources

& Environmental Sustainability & Environmental Sustainability KRA 6A: KRA 6A: Sustainable Utilization of Natural ResourcesSustainable Utilization of Natural Resources KRA 6B: KRA 6B: Environmental Sustainability Environmental Sustainability

KRA7KRA7 - Knowledge Based & Technology Driven - Knowledge Based & Technology Driven Nation Nation

KRA8KRA8 - Regional & Global Stability &Integration - Regional & Global Stability &Integration

Donor’s role in the current plan• Involved throughout the formulation, implementation,

monitoring and evaluation of the respective 10 KRAs• Support NDP3 priorities and programmes-financial and

technical assistance• Liaise and dialogue with GRN-mobilize development

assistance• Provide focused and relevant capacity building at all levels• Prepare and share with GRN compatible country strategy

papers for next 5 years-indicate areas of interest/support• Participate in design, monitoring, evaluation, review and

reporting of sub-sector programme progress• Participate and advise TWGs on needed actions to modify

plans when necessary to accomplish desired results with time frame

NDP3 Resource Envelope

ItemInvestment (N$ million)

Baseline Higher Growth

Total resources required to implement the Plan 76,300 94, 600

Resources likely to be available from domestic sources 54,600 61,600

Of which: Government 6,500 6,850 Parastatals 6,500 6,850 Domestic Private Sector 41,600 47,900

Resources likely to be available from foreign sources 15,700 22,000

Of which: ODA 7,000 7,000 FDI 8,700 15,000Potential gap 6,000 11,000

Other Financing Options

• Mobilize additional domestic resources through improved revenue collection, higher taxes on luxury consumption, more progressive income tax, sale of land, sale of non-performing assets, etc.;

• More ODA in the form of both grants and soft loans;

• Encourage additional domestic investment and additional FDI through the adoption of appropriate policies

I thank you!!