When and How to Use GBS

1. When and How to Use GBS Rebecca Carter, Stephen Lister 9 May 2006

2. Overview of presentation • Recommendations based on evaluation findings • Context (when/where) • Where has PGBS been (successfully) used? • Where could PGBS be used? • Design (how) • How has PGBS been (successfully) used? • How should PGBS be used? When and How to Use GBS

3. Where has PGBS been used? Country contexts: • range of country contexts covered by study countries • political, economic and administrative background and performance • public finance management (PFM) standards • entry decisions not based on standard (e.g. PFM) benchmarks • importance of government–donor trust, plus confidence in reform progress • importance of macro-economic and fiscal discipline When and How to Use GBS

4. Where can PGBS be used? • Most relevant in aid-dependent countries (but cf. Vietnam..) • Not directly explored by this evaluation: • federal states / sub-national level • fragile states • Not a simple yes/no decision, importance of: • design • scale • persistence and learning • More on design issues ...... When and How to Use GBS

5. How has PGBS been used? • Always part of aid instrument portfolio (aggregate and for individual donors) • Always linked to national poverty reduction strategy • Always a core of PFM concerns • Selectivity in sector/reform focus (overload) • Spectrum of general/sector-focused GBS instruments • (but no standard evolutionary sequence) • Different approaches in linking results to disbursements When and How to Use GBS

6. How should PGBS be used? • Incremental approach, country-specific design • Explicit attention to best fit of aid instruments (at donor, national, sector level) • PFM core • cf. OECD DAC good practices for GBS, extend to sector-focused instruments • Longer term approaches, trust, mutual accountability • Manage risks, build (donor) public understanding When and How to Use GBS

7. Thank You When and How to Use GBS