1 / 15

Annual MDBs Meeting on Debt Issues 11-12 July, 2007 Washington, DC

"Building today, a better Africa tomorrow". Enhanced Engagement in Fragile States by the African Development Bank. Annual MDBs Meeting on Debt Issues 11-12 July, 2007 Washington, DC. Fragile States : Issues for Consideration. Africa on the move: A window of Opportunity

meriel
Download Presentation

Annual MDBs Meeting on Debt Issues 11-12 July, 2007 Washington, DC

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. "Building today, a better Africa tomorrow" Enhanced Engagement in Fragile Statesby the African Development Bank Annual MDBs Meeting on Debt Issues 11-12 July, 2007 Washington, DC

  2. Fragile States:Issues for Consideration ... • Africa on the move: A window of Opportunity • State of Fragility in a Continuum • Framework for Effective Engagement in Fragile States • Exit, Quality Management & Funding • Conclusion & Issues for further Consideration

  3. Africa on the Move… but Challenges Persist Dividends of debt relief beginning to flow Consensus that MDG targets will not be met Consensus on the need to focus on results a unique opportunity to make a collective push Improved growth and performance in Africa Increased focus of the global development community on Africa

  4. 18 RMCs at Completion Point – Mid May 07 Chart 1: RMCs by HIPC Status Completion Point Decision Point Pre-Decision Point Benin Burkina Faso Cameroon Ethiopia Ghana Madagascar Malawi Mali Mauritania Mozambique Niger Rwanda Sao Tomé & Principe Senegal Sierra Leone Tanzania Uganda Zambia Burundi Chad Dem.Rep.Congo Congo Gambia Guinea Guinea Bissau CAR Comoros Côte d’Ivoire Eritrea Liberia Somalia Sudan Togo 18 7 8

  5. Expected dates for HIPC Decision & Completion Points...

  6. DSF/DSA Classification of RMCs as at end-May 2007 ...

  7. State of Fragility in a Continuum…

  8. Development Challenges in Fragile States... • Key attributes of main focus: post-crisis/transition states • Poor governance structures, political instability andcorruption • Severely degraded institutional and administrative capacity • Physical infrastructure badly deteriorated or non-functioning, and social services are minimal or non-existent • Economic activity substantiallycontracted, and human develop ment indicators dropped from already low levels • Negative regional spill-over effects often large, with traditional commercial links severed or badly disrupted • .

  9. Limited Current Support to Fragile States … • PCEF contribution in 2006 is only about 2.4% of total allocation

  10. Proposed Framework for More Effective Engagement in Fragile States... • Provision of supplemental resources (i.e. beyond current ADF allocation) primarily for priority infrastructure investments and capacity building • Supplemental funding committed up-front for three years, and on grant terms, and Funds specifically dedicated from Bank’s ADF-X1 resources • Potential support for up to 2 ADF cycles, with exit expected after no more than 6 years

  11. Eligibility criteria for supplemental support...

  12. Supplemental Resource Pool (Fragile States Facility) to fund Incremental Assistance in Specific Cases Supplemental Resource Pool Eligibility and Engagement based on limited number of threshold indicators to fund incremental assistance in specific cases • Eligibility Thresholds: • Peace and Security • Unmet Needs Additional allocations for operations in selected post-crisis cases UA 330 m Selective capacity building support in other fragile circumstances Engagement Threshold: Country Commitment UA 33 m • Supplemental allocations to be anchored in known PBA determined amounts • Countries continue to receive annual PBA under ADF-11 • Supplemental funding of 2X a baseline PBA from ADF-10 • Funding provided up-front for 3 years, on grant terms

  13. Monitoring and Exit, Quality Management and Funding Mechanism • Regular performance assessmentand expected exit after 6 years • Annual CPIA exercise under ADF-11 PBA. • At close of 3 years, assessment of progress relative to initial commitments • Subject to progress & funding, possible renewal for final 3 years • Reduction of delivery bottlenecks • Variety of improvements underway Bank-wide • Rapid response template built on already approved measures • Funds mainly derived from dedicated ADF-11 pool • Possible financing options remain • Preferred option: separate Fragile States Facility (FSF) including the PCCF Exit Quality Funding

  14. Conclusions & Issues for further Consideration … • Selection mechanism and initial pool of prospective beneficiaries • Allocation mechanism: amounts; terms; caps; PBA carve-out, exit • Supplemental pool for capacity building support in wider group of Fragile States • Track record with PCEF and other efforts to date • Implications for Post Conflict Country Facility • Relative merits of financing alternatives • How to treat / finance possible additional eligible countries

  15. "Building today, a better Africa tomorrow" Thank You For Your Attention

More Related