CABRI response to Accra Action Agenda

1. CABRI response to Accra Action Agenda 5th Annual Seminar Dakar, Senegal 7-8 April 2009

2. Context • A reminder of AAA adopted at the High Level Forum • An overview of the work CABRI undertook that relates to ‘use of country systems’ • Developing a response to the AAA • Discussion

3. Accra Action Agenda • Purpose: acceleration of actions towards achievement of aid effectiveness targets as set out in Paris Declaration • Three main focus strategies • Increasing country ownership • Build more effective and inclusive partnerships • Achieving development results • Important implications for bringing aid on budget • Increasing country ownership • Build more effective and inclusive partnerships • Achieving development results

4. …what AAA said on Use of Country Systems • Accelerate the strengthening and use of country systems to the maximum extent possible • Provisions • Use country systems as a first option • Donors must provide reasons for, safeguards and measures when not using country systems • Mutual assessments of country systems • Donor plans to implement, incentivise staff, etc. • 65% of aid as programme-based aid • 50% of aid use country fiduciary systems • Important to remember purpose of PD and AAA • Increase effectiveness of aid • Paris Declaration and AAA commitments are the means towards this end

5. CABRI work on Aid on Budget • CABRI’s response aimed at ensuring that use of country systems result in improved aid effectiveness • Draws on CABRI’s work and SBOs experience • Aid on Budget Study • Discussions of SBOs • Aid on Budget Working Session in Rwanda

6. Lessons from Aid on Budget work • Use of country systems can contribute to improved aid effectiveness • Not all systems used at once; countries should make measured progress weighing up risks • Bringing Aid on Budget does not equal budget support: progress should be made in all modalities • Putting effort into clear, useful, commonly understood definitions of aid categories helpful • Countries should define criteria for use of country systems • Streamlined country systems

7. … allows for development of a response • CABRI recognises role of aid and international recognition of developing country ownership and leadership. • But • Use of country systems should not be applied as a blanket approach • A developing country also faces risks when integrating aid into country systems • Development, fiduciary and reputational risks • Unreliable and unpredictable aid flows • Unreliable and unpredictable flow of aid information • Cost of putting aid through fiduciary systems can outweigh its benefits

8. …but • Greater emphasis on upstream budget cycle – planning and budget • Stronger role for developing countries in determining whether and where aid should be integrated into budget cycle • Putting forward targets and use of fiduciary systems as a first choice for donors, can undermine developing country choice and increase developing country risk

9. questions to guide discussion • Are the five points appropriate given country experiences • Use of country systems not used as blanket approach • Acknowledge risks for developing countries • Aid on plan and on budget as default? • Stronger role for developing countries • Default use of fiduciary systems undermine developing country choice, ignore developing country risks • Other points? • What are appropriate forums for presenting CABRI position?

10. thank you!