WORKSHOP 20 JANUARY 2009. 9:00 - 14:00 DEÁK PALOTA (1052 BUDAPEST, DEÁK FERENC UTCA 15.)

LAW ON THE HORIZON! THE LEGAL FRAMEWORK OF OFFICIAL DEVELOPMENT ASSISTANCE AND THE

DIRECTIONS FOR REFORM IN HUNGARY.

Ministry of Finance of Slovak Republic

Content

LEGAL FRAMEWORK LEGISLATIVE FRAMEWORK INSTITUTIONAL FRAMEWORK PRIORITIES FINANCIAL SOURCES REPORTING & STATISTICS CHALLENGES PREPARATION OF ODA ACT

LEGAL FRAMEWORK

Medium–term Strategy for ODA – 2003-2008

ODA National Programme – annual document

Act on the Official Development Aid

Directive for the provision of ODA

Bilateral agreements – beneficiary countries/ IOs / IFIs

Financial guidelines

LEGISLATIVE FRAMEWORK

Constitution Act Competence Act State Budget Act Budgetary Rules Act Accounting Act Public procurement Act Financial supervision and internal audit Act

Government Decrees

INSTITUTIONAL FRAMEWORK

Ministry of Foreign Affairs of SR

Ministry of Finance of SR

Slovak Agency for International Development Cooperation

Administrative and Contracting Units – BBF & TF

ODA - challanges and solutions from financial perspective

PRIORITIES

Multilateral• EU Development Policy – Development Cooperation Instrument• Preparation for EDF• Western Balkan Fund• Contributions to IFIs

BilateralBalkan Countries – Serbian Republic, Montenegro Republic, Bosnia & HerzegovinaEU Neighbouring Countries – Ukraine and BelarusAsian Countries – Afghanistan and Kazakhstan African Countries – Kenya, EthiopiaOther countries - Albania, Kyrghistan, Macedonia, Mongolia,

Mozambique, Sudan, Tadzikistan and Uzbekistan.

FINANCIAL SOURCES

Multilateral ODA

EU contributions - % from Own Resources, EDF

Contributions to IOs – UNEP, FAO, etc.

Contributions to IFIs – WBG (IDA), EBRD etc.

Debt relief – HIPC, initiative G8 MDRI

FINANCIAL SOURCES

Bilateral ODA

Operating by two Administrating and Contracting Units (ACUs)– Bratislava-Belgrade Fund & UNDP Trust Fund

Since January 2007 Slovak Agency for International Development Cooperation (SAIDC)

Humanitarian Aid

FINANCIAL SOURCES

Budget planning

3 years budget programming

Budget specification for coming year and 2 years outlook (ministries)

Government decision on Budget proposal

Approval of Budget Law by National Parliament.

Budget Law implementation

FINANCIAL SOURCES

Budget spending

MoF

State Treasury

Ministries

SAIDC + IAs

Beneficiaries

FINANCIAL SOURCES

ODA

PROGRAMME 05T

MFA Ministry of Interior Ministry of Agriculture Ministry of Environment and Ministry of Education

MoF, Ministry of Defence and others authorities are out off the 05T programme

REPORTING

• Bilateral ODA• Beneficiary on regular quarterly base • ACUs/IAs on MFA request• MFA SR on Government Decree No. 332/2002

• OECD/ DAC on voluntary base

Report of Slovak ODA to the Government - yearly

REPORTING

Multilateral ODA

MoF SR from EU + IOs + IFIs

MFA SR

Report of Slovak ODA to the Government

OECD

STATISTICS

CALCULATION OF ODA PERCENTAGE - RATIO

Bilateral ODA Multilateral ODA

GNI (by Statistical Office)

+

= ODA %

ACU TFACU BBFHumanitarian Aid

EU ContributionsContributions to IOs Contributions to IFIsDebt Relief

STATISTICS

Year IN THOUSAND SKK ODA/ GNI (%)

2002 257 000 0,024

2003 553 500 0,048

2004 910 500 0,072

2005 1 739 551 0,120

2006 1 638 118 0,103

2007 1 673 054 0, 933

2010 3 200 000 0,17

2015 7 800 000 0,33

ODA - challanges and solutions from financial perspective

Contributions to ODA by Ministry of Finance in 2007

FORM OF ODA IN THOUSAND SKK

Contribution to EU budget 897 463

Debt relief / forgiveness 452 900

WBG – IDA replenishment of sources 23 760

WBG - MDRI 1 430

EBRD - WBF 8 401

Administrative costs 2 500

Total 1 388 454

CHALLENGES

ODA efficiency and effectiveness

Improvement of the ODA reporting & statistics

Meeting the UN Millennium Goals and EU commitments

Introduction of budgetary support towards developing

countries

Enhancing Slovak entities to implement ODA projects

within the international field

Establishing Trust Funds

Public awareness

ODA - challanges and solutions from financial perspective

Act on Official Development Assistance

Involvement during preparation of the Act

• Ministry of Foreign Affairs (Gestor)• Ministry of Finance• Administrative and Contracting Units / Agency• Slovak Academy of Science• NGDOs Platform

ODA - challanges and solutions from financial perspective

Comments

• Clear definition of the subject (purpose)• Financing• Position of Agency• Planning (Financial and Programmed)• References to other acts• Feedback with Slovak foreign policy• Not ODA priorities but goals• Territorial and sector priorities

ODA - challanges and solutions from financial perspective

Act on Official Development Assistance

Article 1

§1 Scope of the Act§2 Definition of the terms§3 ODA principles§4 ODA goals§5 Planning instruments for ODA§6 Forms of ODA implementation§7 Funding of ODA implementation§8 ODA Authorities§9 The Agency§10 Competences of Agency§11 Final provisions

Article 2Competence Act (amendment)Article 3Entry in to force

LAW ON THE HORIZON! THE LEGAL FRAMEWORK OF OFFICIAL DEVELOPMENT ASSISTANCE AND THE DIRECTIONS FOR REFORM IN HUNGARY.

Thank you for your kind attention

Any questions?Dusan Wunder PhD. Sector ODA Coordinator, Department of International

Relations, Ministry of Finance of the Slovak Republic

E-mail: Dusan.Wunder@mfsr.sk