Making More Effective: Aid Policy & Aid Coordination

1. Making More Effective: Aid Policy & Aid Coordination Ministry of Finance and Economic Development Sierra Leone DAD CoP, Yerevan Armenia. 5-9 October 2009

2. Presentation Outine • Effective Aid • Localising the Paris Declaration • Articulating an Aid Policy for Sierra Leone • Outline of the Aid Policy • Proposed roles for the Government • Aid Architecture • Challenges in making DAD more effective • Aid coordination through information Transparency • Way forward • Conclusions DAD CoP, Yerevan Armenia. 5-9 October 2009

3. Effective Aid • Aid is a critical part of the Sierra Leonean economy, amounting to around 20% of GDP, and roughly equating to Government’s own spending • Sierra Leone is a signatory to international agreements aimed at improving aid effectiveness. • 2005: Paris Principles on Aid Effectiveness. • 2007: Principles for Good International Engagement in Fragile States and Situations (Sierra Leone a pilot country) • Effective Aid: helps to improve development targets. • Sierra Leone remains well short of internationally agreed targets on Aid Effectiveness such as the Paris Indicators. DAD CoP, Yerevan Armenia. 5-9 October 2009

4. Localising the Paris Declaration • Ownership and Leadership (PRSP) • Alignment • Harmonisation • Mutual Accountability • Managing for Results DAD CoP, Yerevan Armenia. 5-9 October 2009

5. Articulating an Aid Policy for Sierra Leone • An Aid Policy allows the Gov to assert leadership over its aid and to hold donors to account. • A consultative Aid Policy has been developed (a copy will be distributed on request) • The document to be finalised by second week in October. DAD CoP, Yerevan Armenia. 5-9 October 2009

6. Outline of Aid Policy content • Introduction and Institutional Setting • Principles and Objectives • Aid Modalities • Guidelines for Aid Mobilisation • Guidelines for Aid Coordination • Guidelines for Aid Implementation DAD CoP, Yerevan Armenia. 5-9 October 2009

7. Proposed Roles for Gov of SL • Office of the President: Strategic leadership • MoFED: aid and aid data coordination, project approval, coordinated policy dialogue with partners in country through DEPAC and PRSP structures • MFAIC: identification of potential new donors and the mobilisation of resources from partners through foreign missions • HRMO: Coordination of TA • All MDAs: identification of projects, verification of aid data, implementation of projects DAD CoP, Yerevan Armenia. 5-9 October 2009

8. Aid Architecture Policy Dialogue • Development Partnership Committee (DEPAC) • Pillar and Sector Working Groups • District Coordination and M&E Committees Database Management (DAD) • Measurement of aid inflows for proper management • Appoint and train Focal Points in MDAs and with Donor Partners • Develop Standard Operating Procedures • Name and Shame DAD CoP, Yerevan Armenia. 5-9 October 2009

9. Challenges in Making DAD More Effective • MDAs need to internalise the concept of DAD and reporting in general • Capacity to manage and sustain the DAD. -Training of to manage the DAD at the MOFED and other MDAs - Getting the focal persons at the donor offices - Government taking over funding for sustainability. • Connectivity Issues - Offline Vs Online DAD • Limited credentials for DAD Local admin staff • Lack of detailed information in the DAD. Partners mostly provide the numbers and not details of activities, which limits effective planning. • Inadequate Reporting: reporting is usually late and has a lag. In our case sometimes the information is not available to the resident offices in time • Incorporating NGO Contributions into the DAD. DAD CoP, Yerevan Armenia. 5-9 October 2009

10. Aid Coordination through Information Transparency • Aid information sharing continues to pose a major challenge. • Without accurate and timely aid data, the Government is unable to plan effectively, identifying duplication and critical gaps. • The Government calls for all partners to use the DAD as their central reporting framework, and comply with its Standard Operating Procedures DAD CoP, Yerevan Armenia. 5-9 October 2009

11. Way Forward • Financial Support to sustain and improve on the DAD. Information they say is power and therefore is costly • Proper Alignment to National Priorities and activities: UN Joint Vision, EC/DFID Joint Support, AfDB/WB/IFC joint CAS • Harmonising Procedures: increase use of country systems, common missions and M&E, streamline procedures for approval • Build sustainable capacities • Increase accountability of partners: • Finalise, Commit and Implement an Aid Policy • Effective Government leadership DAD CoP, Yerevan Armenia. 5-9 October 2009

12. Conclusion • Government led aid coordination is critical to making aid more effective • The Government asks for the cooperation and support of all its partners in: • Working in a harmonized fashion to support the consultative Aid Policy process • Complying with our reporting procedures through the DAD so that aid data is timely, comprehensive and accurate DAD CoP, Yerevan Armenia. 5-9 October 2009

13. Conclusion Contd • The provision of accurate, relevant and timely data will enable Governments to plan better, implement budgets better, reduce transaction cost and duplication. DAD CoP, Yerevan Armenia. 5-9 October 2009

14. THANK YOU DAD CoP, Yerevan Armenia. 5-9 October 2009