Mutual accountability: From Paris Declaration to Hanoi Core Statement

Mutual accountability: From Paris Declaration to Hanoi Core Statement Dar Es Saalam 11-2005 Vietnam: A big market with high GDP growth rate • • • • Population: 82 million Stable political system and social security GDP growth rate (1990 – 2005): > 7% GDP growth of 2005: 8.5% FDI: Some figures • 1987 – 2004: 500 projects with 48.5 billion USD capital; 500 projects in production and business activities • FDI = 20% of the total investment • FDI = 14.5% GDP • FDI = 50% exports • FDI = 740 000 direct jobs • FDI 2005: > billion (previsions) Vietnam: ODA recipeipts (1993 – 2004) • Engagements: 28.4 Billions USD • Disbursements: 14.8 Billions USD • Sectors invested: - Poverty reduction; - Economic and social infrastructures (Transport, Telecommunication, power supply, Agriculture, Rural development, Health, Education, …) Vietnam: ODA receipts (USD million) Receipts 2001 2002 2003 Net ODA 1450 1277 1769 Bilateral share 4.5% 3.6% 4.5% Net ODA/GNI 4.5% 3.6% 4.5% Vietnam: Top ten donors (2002-2003, USD million) Donors Japan WB (IDA) ADB (AsDF) France Denmark Germany Australia Netherlands United Kingdom Gross ODA 452 414 224 96 59 52 38 35 31 Constraints identified • Lack of an long term plan for ODA mobilisation and utilisation; • Lengthy decision making processes; • Deficiency in the legal framework; • Human capacity to execute ODA projects • … Mutual accountability: why and when ? Concepts: • OECD: Mutual assessment of progress in implementing agreed commitments of donors and recipient countries on aid effectiveness under aspects: Ownership, Alignment, Harmonisation, Simplication • Vietnam: In added: the division of responsibility based on riel context, conditions and capacities Mutual accountability: why and when ? Why and When ? • Needs on better and more effectiveness of ODA use • Differences on policies, objective, mechanism, methodologies of identifications, planning, implementing, monitoring and evaluation • Needs of change with volunteers: Opening, localisation and globalisation Hanoi Core Statement – The nationalisation of the Paris Declaration • Ownership: - Indicators: years Socio-Economic Development Plan (SEDP) is finalised and effectively implemented, CPRGS principals are integrated - Targets to 2010: Year SEDP targets are achieved Hanoi Core Statement • Alignment: Indicators and targets to 2010 + Donors assistance strategies are aligned to the SEDP and related national, regional, provincial and sector strategies (all donors) + Strengthening of PMUs (all PMUs) + Strengthening of building programmes capacities (100%) Hanoi Core Statement • Alignment: Indicators and targets to 2010 + Strengthening of Public procurement system (>50% of donors and >50% of aid flows) + Strengthening of Public financial management system (>50% of aid flows and donors channeling) + improve environmental and social safeguard (100% funded projects implemented to international standards and at least 30% using government systems Hanoi Core Statement • Harmonisation and simplification: Indicators and targets to 2010: + Fewer, better, core diagnostic and country analytical reviews (75%) + Common project cycle management tools agreed and used throughout the project/programmes cycle (> 50% of donors) + Coordination on policies and sector framework (75% of aid) + Donor delegation authority to country offices (75% of interventions) Hanoi Core Statement • Management for results : Indicators and targets to 2010 + Results framework developed and used to assess the performance of SEDP and sector programmes (DAC criteria and continuous monitoring) Hanoi Core Statement • Mutual accountability: + Periodic mutual assessment of progress (Annual assessment) Experiences 1- Division of responsibility • Donors: + UN institutions and Like Minded Donor Group : transaction cost + Partnership Group on Aid Effectiveness: public finance management, trade reform, … + WB and others: country assistance strategies + Banks Group: Project management, harmonisation of procedures, financial management, … + Consultative Group for Vietnam (CG): forum for discussions on policies, strategies; evaluation of reform schedule and financing Experiences 1- Division of responsibility • Vietnam Gov: + Building sustainable country system + Revision of ODA legal framework + Establishment of ODA master Plan (2006 – 2015) + Monitoring framework + Simplication of procedures: Procurement and financial systems Experiences 2- Strengthening of Country procurement system - Assistance of Like Minded Donor Group + Revision of relevant regulation + Promotion of transparency and fair competition + Information system (bulletin and website) => Final law document to be adopted by the National Assembly Experiences 3- Strengthening the public financial management - Assistance of Banks Group - Pilot exercise (4 sectors and provinces) + Strengthening medium term expenditure planning + Streamline the country’s fiscal planning framework + Modernisation of state budget management => Final Decree document to adopt by the Government Experiences 4- Developing a common results-based monitoring framework - Assistance of UNDP and other donors + Design common indicators + years Plan (2006 – 2010) + Software on evaluation and monitoring => The software on assistance projects on evaluation and monitoring transferred (9/2005) Lessons learned • Necessary of participation of stakeholders on every step of the reform • Every stakeholders would benefit from the development of the country’s capacity and the Gov system regardless of funding sources or aid modalities • Donors and recipient country could look into real situation with concrete analysis before set down targets and performance indicators Steps to continue • Undertake a baseline study of donor operation procedures (cycle time, cost, schedule, …) • Sharing opinions between Gov and donors on the years Plan • Action Plan on environmental and social safeguards (including projects/program preparation) • Donors to continue to develop and implement joint activities • Donors to outline their plan for decentralisation • … Thank you for your attention ! [...]... framework (75% of aid) + Donor delegation authority to country offices (75% of interventions) Hanoi Core Statement • Management for results : Indicators and targets to 2010 + Results framework developed and used to assess the performance of SEDP and sector programmes (DAC criteria and continuous monitoring) Hanoi Core Statement • Mutual accountability: + Periodic mutual assessment of progress (Annual assessment).. .Hanoi Core Statement • Alignment: Indicators and targets to 2010 + Donors assistance strategies are aligned to the SEDP and related national, regional, provincial and sector strategies (all donors) + Strengthening of PMUs (all PMUs) + Strengthening of building programmes capacities (100%) Hanoi Core Statement • Alignment: Indicators and targets to 2010 + Strengthening of... implemented to international standards and at least 30% using government systems Hanoi Core Statement • Harmonisation and simplification: Indicators and targets to 2010: + Fewer, better, core diagnostic and country analytical reviews (75%) + Common project cycle management tools agreed and used throughout the project/programmes cycle (> 50% of donors) + Coordination on policies and sector framework... targets and performance indicators Steps to continue • Undertake a baseline study of donor operation procedures (cycle time, cost, schedule, …) • Sharing opinions between Gov and donors on the 5 years Plan • Action Plan on environmental and social safeguards (including projects/program preparation) • Donors to continue to develop and implement joint activities • Donors to outline their plan for decentralisation... evaluation and monitoring => The software on assistance projects on evaluation and monitoring transferred (9/2005) Lessons learned • Necessary of participation of stakeholders on every step of the reform • Every stakeholders would benefit from the development of the country’s capacity and the Gov system regardless of funding sources or aid modalities • Donors and recipient country could look into real situation... Group - Pilot exercise (4 sectors and 4 provinces) + Strengthening medium term expenditure planning + Streamline the country’s fiscal planning framework + Modernisation of state budget management => Final Decree document to adopt by the Government Experiences 4- Developing a common results-based monitoring framework - Assistance of UNDP and other donors + Design common indicators + 5 years Plan (2006... ODA master Plan (2006 – 2015) + Monitoring framework + Simplication of procedures: Procurement and financial systems Experiences 2- Strengthening of Country procurement system - Assistance of Like Minded Donor Group + Revision of relevant regulation + Promotion of transparency and fair competition + Information system (bulletin and website) => Final law document to be adopted by the National Assembly