Government Priorities, the New Deal Compact for South Sudan

1. Government Priorities, the New Deal Compact for South Sudan Moses Mabior Director of Aid CoordinationMinister of Finance, Commerce, Investment and Economic Planning

2. What the New Deal for Fragile States is A recognition that peace- and statebuilding need to be prioritised • In Nov 2011 in Busan, the 18 g7+ countries agreed on a New Dealfor fragile states together with 24 donors. • The New Deal recognizes that fragile states need to focus on peace- and statebuilding first, so they overcome fragility and pursue development. • In the New Deal, governments and donors agreed on better solutions for fragile states, based on 3 pillars: • Peace- and statebuilding goals (PSGs) should guide the work in fragile states. • FOCUS principle for overcoming fragility with country-led assessments and plans. • TRUSTprincipleto build trust between donors, gov’t and citizens Compacts should underpin enhanced partnership.

3. MDGs: why they do not work for everyone Since 2000, fragile countries made less developm’t progress than others Change in the Human Development Index (HDI) for selected countries from 2000 to 2012 Since 2000, the Human Development Index of fragile states has increased much less than for other developing countries. Source: Human Development Report 2013 (UNDP)

4. More appropriate goals for overcoming fragility At the heart of the New Deal are 5 peace- and statebuilding goals (PSGs) 1. Legitimate politicsBecause political settlements and conflict resolution are very important in fragile states 5. Revenue and servicesBecause Governments must better manage public money and provide better services 2. SecurityBecause it is vital that citizens can live in security and safety 5 PSGs • 4. Economic foundationsBecause it is important to diversify the economy, create livelihoods and jobs • 3. JusticeBecause injustices should be corrected and citizens must be able to defend their rights

5. How to FOCUS on peace- and statebuilding Five key steps to ensure Gov’t and donors FOCUS on overcoming fragility • A nationally-led assessment of the causes of fragility and crisis. • Fragility assessment for South Sudan was completed in 2012. Fragility assessment One vision, one plan Use PSGs to monitor Support pol. dialogue Compact • A national plan and vision for how to overcome fragility. • Until 2016, the SSDP serves as our ‘one vision, one plan’. • An agreement between Gov’t and partners to work better together. • A New Deal Compact for South Sudan is currently being developed. • Use of the PSGs indicators to monitor progress in tackling fragility. • Data on many of the PSG indicators is available for South Sudan. • Increased support for credible and inclusive political dialogue. • Government and partners have begun allocating more resources.

6. Better ways to build trust among partners The New Deal contains principles for trust between Gov’t, donors & citizens TransparencyCitizens should have access to information on how aid and public money is spent Risk-sharingRisks and mistakes cannot be avoided outright, but donorsand Government should work together to manage them. Timely and predictable aidDonors should provide aid that arrives on time and facilitates national planning TRUST TRUST • Strengthen capacitiesDonors and Government should invest more to strengthen national institutions • Use of country systemsDonors should begin to use Gov’t (rather than parallel) systems to deliver aid

7. South Sudan Economic Partners ForumWashington DC, April 2013 – Agreement to develop a Compact

8. Why a New Deal Compact with partners is needed An enhanced framework to navigate peace- and statebuilding challenges Puts focus on major RSS objectivesHighlights key goals for peace- and statebuilding and helps communicate progress to citizens and partners Facilitates more effective aidPromotes new country-led ways of delivering assistance and encourages coherence Signals int‘l commitmentShows that donors will support peace- and statebuilding in RSS in the long-term Key benefits for RSS • Creates mutual accountabilityCommits Gov‘t and donors to achieving clear goals and deliver for citizens • Creates framework for dialogueStructures dialogue with donors and citizens around an agreed shared agenda

9. Resources to support the Compact The compact will serve as umbrella agreement for innovative donor support NEW DEAL COMPACT World Bank Budget Support Partnership(Pooled) Fund Private Investment Conference EU Budget Support AfDB Budget Support National Executionof UN Projects IMF Budget Support

10. Consultations on the CompactReaching out to people about the goals Gov’t and donors should work towards

11. Broad consultation process So far, more than 1,000 stakeholders helped define goals & benchmarks Donor community 27% 1,000+ stakeholders engaged so far Civil society, int’l / nat’lNGOs36% Bentiu Malakal Aweil Kwajok 10/10 state consultations already conducted Wau Rumbek National and state Gov’t 37% Bor 75 events in broadest policy outreach since independence Juba Yambio Torit participants

12. Consultation results: what people want Peace- & statebuilding benchmarks Aid effectiveness benchmarks National reconciliation Better aid flow & results reporting 1 1 Free and fair elections Joint aid planning, mgm’t & monitoring 2 2 Security sector capacity and reform Increased use of Gov’t systems 3 3 Protection of civilians & human rights Strengthened sub-national capacity 4 4 Access to justice& judicial capacity More predictable aid commitments 5 5 Accountability & anti-corruption 6 Infrastructure 7 Agriculture & economic diversification 8 Public financial managementincl. oil revenue management 9 Local service delivery 10

13. What the New Deal Compact will look like in practice A four-page compact document plus a policy matrix with 15 benchmarks + POLICY MATRIX 2014 COMPACT • A 4-page document that serves as the overall umbrella agreement. • The document sets out overall goal, principles, joint commitments, and modalities for the Compact. • A table with 15 annual benchmarks in the areas identified in the consultations. • Benchmarks are being developed in technical groups and will be reviewed on a regular basis with Gov’t, donors and civil society.

14. Local Services Support Joint Plan of Action Actions under the Local Service Delivery Benchmark will be guided by the LSS Joint Plan of Action. This is a cross-sectoral plan signed by six Undersecretaries to improve basic service delivery, organised around six core policy principles.

15. LSS Joint Plan of Action cont. The Joint Plan of Actions has identified priority actions under each policy area to address weaknesses in systems and capacity that prevent improvements in service delivery. Policy principles and priority actions Weaknesses in systems and capacities • Policy and institutional coherence • Complete/disseminate policies critical for service delivery • Improve communication between Gov’t entities Weak policy and institutional coherence 1 • Human Resource Management • Review and propose LG HR practices (HRM framework) • Strengthen pay and payroll management Weak HR and payroll management 2 • Sector effectiveness • Build capacity for capital investment management • Build capacity for education/health/water service delivery Inadequate, inequitableinfrastructure distribution 3 • Equitable and coherent funding • Development and implement LG PFM systems • Strengthen budgeting process at State and County level • Design sector County/facility grants for service delivery Inadequate, unbalanced,unclear funding modes 4 • Top-down / bottom-up accountability • Design an LG oversight, supervision and monitoring system at State level and feed findings up to national level • Review existing social accountability structures in South Sudan and identify linkages and overlaps Weak accountability 5

16. Conclusion The New Deal Compact will define a better framework for Gov’t-donor partnership • The New Deal for Fragile States helps us understand what needs to be done to build such foundations in politics, security, justice, economics, public finances and services, as well as aid effectiveness. • As a member of the g7+ and New Deal pilot country, South Sudan is forging a New Deal Compact with its donors to define a more focussed partnership, based on 15 benchmarks for peace- and statebuildingand aid effectiveness. • The Compact and its benchmarks will create a framework for mutual accountability and dialogue between Government, donors and citizens that will provide us with new momentum in our fight against fragility. • The Local Services Support Joint Plan of Action provides a cross-sectoral framework for strengthening systems for service delivery.