Mutual Accountability and Aid Transparency - Rwanda –

1. Mutual Accountability and Aid Transparency- Rwanda – IATI Partner Country Meeting, 4th July 2011 Paris, France Ronald NKUSI Director, External Finance Unit Ministry of Finance and Economic Planning

2. Outline • National Mutual Accountability Framework • Major Behavioral Changes – outcome of the MA survey • Factors promoting behavioral changes • Aid Transparency • Aid on Budget • Domestic accountability and Role of Parliament

3. National Mutual Accountability Framework • Rwanda Aid Policy - Key national foundation for mutual accountability • Consistent with national development strategy priorities • Clear institutional responsibilities with GoR’s vision and preference • Product of inclusive consultations which is endorsed by the Cabinet • National Aid Coordination Forum – DPM, DPR, DPCG, and BSHG –led by the Government. • Assessment of progress towards aid effectiveness targets addressed through the fora • Review mainly Ministries, DAC donors and local government agencies, limited assessment at implementation agencies (i.e. NGOs). • Review comprehensively donor and sector performance individually • Sector level MA mechanisms: Joint Sector Reviews and Sector Working Groups

4. National Mutual Accountability Framework – Cont’d • Performance Assessment Framework – an integral and key instruments of MA • Common Performance Assessment Framework (CPAF) – Sector level assessment on outcome targets and policy actions, drawn from the Economic Development and Poverty Reduction Strategy (EDPRS) M&E Framework • Donor Performance Assessment Framework (DPAF) – Donor assessment on aid effectiveness targets, drawn from the Paris Declaration on Aid Effectiveness and Rwanda’s Aid Policy • Review comprehensively donor and sector performance individually • Areas for further Improvement • Inclusiveness (local government, CSOs, private sector, etc.) could be further strengthened. • Limited dialogue on analytic inputs engaged by Parliaments, CSOs, etc • Accessibility and use of information by stakeholders be improved

5. Major Behavioural Changes • Major behavioural Changes by GoR • Improvement of PFM and strong efforts for Public Sector Reform to ensure efficient use of funds and effective implementation (i.e. Introduction of SPIUs) • Reporting of aid information to the Parliament • Strong leadership by Government – Kigali Statement of Action, Division of Labour • Open and candid dialogue between GoR and DPs • Major behavioural changes by DPs • Trust in leadership of the country • Increased alignment of DP support with GoR priorities • Greater aid predictability • Greater use of country systems (more GBS, SBS support) • Agreement to shift sector as per DoL and respect Silent Periods. • DPAF, DoL, DPM providing political engagement seen as good practical steps, tools and processes

6. Factors Promoting Behavioural Changes • Aid Transparency: • Development Assistance Database (DAD)’s new feature to undertake DPAF and PD Survey through the system increases the comprehensiveness of aid information reported through the DAD. • DPAF through DAD further enhances aid transparency; not only the volume and allocation but also modalities and alignment/compliance with aid effectiveness agreements. • Comprehensive, timely, and adequate information supports comprehensiveness of national budget preparation – through providing key information for budget consultation. • NGO module in plan: comprehensive aid information supports national ownership and accountability for ODA to Rwanda

7. Factors Promoting Behavioural Changes • Aid on Budget: • By Organic Finance Law, all revenues (resources) must be included in the Finance Law. • Resources/support executed by Government agencies • Availability of timely, adequate, comprehensive and quality information on commitments • Enhances national ownership and domestic accountability • Rolling out of SmartFMS – aid on budget a pre-requisite for any resources to be executed by Government agencies

8. Factors Promoting Behavioural Changes • Domestic Accountability: • Performance Contract drawn from Ministries annual workplans, linked with national budget and its execution => aid on budget critical element of enhancing domestic accountability • Parliament overseeing not only national budget execution but also implementation of national development strategy (Economic Development and Poverty Reduction Strategy) => Parliament’s oversight role over value for aid money (regardless of aid modalities) • Alignment of aid delivered by NGOs and comprehensive aid information (on- and off-budget) is essential in ensuring oversight role of Parliament

9. Challenges – Example of Health Sector • Lack of aid transparency (timely commitment, etc.) challenges putting aid on budget • Significant level of aid executed by NGOs or direct execution – accountability • Oversight by Parliament on aid execution a challenge On Budget Off-Budget

10. Work in progress • Development Assistance Database (DAD) upgrading • Use of common project identifier • Use of GoR Chart of Account • Linking DAD with SmartFMS • NGO module • Strengthened Sector Working Groups/SWAp and PBAs • Single Project Implementation Units (SPIUs) – transparency and aid on budget • Aid Procedure Manual to further facilitate aid management process including donor appraisal/supervision missions policy.

11. Thank you