Harmonisation and Alignment

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Harmonisation and Alignment

• A Case Study on the Jamaican Experience
• 2003 to Present

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• Background
• In June 2002, Jamaica agreed to be one of three
  pilot countries
  
• The Planning Institute of Jamaica was assigned
  the role of Focal Point to lead the initiative
  
• The Official launch in Jamaica - Regional
  Workshop (Kingston) in January 2003.
  

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• FOCAL AREAS
• Financial Management and Audit
• Procurement
• Environment Social Safeguards
• A fourth initiative was included by
• the Government - Analytical Framework

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Jamaicas earliest experiences in promoting
harmonized approaches 1990s to 2002

• Administrative Reform Programmes
• Jamaica Social Investment Fund (JSIF)
• Early Childhood Development
• Public Sector Modernization Programme

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JSIF

• Prior to the launch of formal harmonization and
  alignment initiatives in 2003, IADB, WB, CDB, EU
  and the Government of Netherlands had positive
  results in bringing a coordinated approach to
  funding support to the Jamaica Social Investment
  Funds (JSIF).
• Operational activities were carried out through
  joint agreements on procurement, financial
  management and reporting requirements. Agreements
  were also reached among IDPs on the use of the
  operational manual of the JSIF.

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Financial Management and Audit

• Overall objective
• Harmonise financial management and audit
  standards and practices for project, sector and
  budget support - financial reporting, Terms of
  Reference (TOR) for auditors, reporting formats,
  the Auditor General Departments acceptability
  for external audits and disbursement forms and
  methods.

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Enterprise Management Resource System

• Ministry Paper 56 of 2002 mandated the
  establishment of a fully integrated Enterprise
  Resource Management System (ERMS) based on
  accrual accounting to replace the Financial
  Management Information System and Human Resource
  Management Information System.

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• Progress to date
• Accrual Accounting
• New accounting system to facilitate accrual
  accounting FinMan piloted in three ministries
  since April 2004. This is running parallel with
  the existing cash based system in the wider
  Government.

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• Progress to date
• Financial Reporting
• Standardisation of disbursement forms and methods
  being addressed by FinMan system.
  
• On going efforts to achieve standardisation of
  reporting formats.
  

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• Progress to date
• Auditing - Auditor Generals Department
• (AGD)
• Joint Financial Management and Audit mission of
  the World Bank and the IADB (July 16-17, 2003)
  
• Recommendations communicated to the AGD
  subsequent to the mission have been implemented
  
• Discussions on the introduction of Value for
  Money Auditing.
  

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Challenges related to Financial and
Management and Auditing

• Resource Gaps
• The full implementation of the accrual system
  will require additional resources.
  
• AGD resources will be required to improve the
  timelines and reliability of the external
  auditing process and, equip officers of the AGD
  through the provision of training and equipment.
  
• Securing acceptability of the AGD as auditor of
  externally financed government projects by all
  IDPs IDB for example has not given its approval
  for the AGD to undertake audits of their new
  projects.

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Procurement

• Progress to date
• World Banks Country Procurement Assessment
  Review (CPAR)
  
• Caribbean Regional Procurement Framework Review -
  a Country Procurement Assessment Report done
  
• Advanced discussions aimed at defining Jamaicas
  National Competitiveness Bidding (NCB) and
  International Competitiveness Bidding (ICB)
  thresholds in tandem with the FTAA Market Access
  and in light of Caribbean Single Market and
  Economy (CSME) procurement regime within CARICOM
  
• Joint IDB/WB Mission in early 2005.

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Next Steps - Procurement

• These include
• Standardisation of Bidding Documents
• Establishment of a system of Administrative
  appeals against decisions of the National
  Contracts Committee
  
• Undertaking a review of the approval thresholds
  which are considered too low by the IDPs.

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Challenges

• The need for certification of procurement
  officers and the facilitation of international
  exposure to procurement methodologies
  
• Fast-tracking the introduction of e-procurement
• Establishment of central procurement database.

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Environmental Assessment and Social Safeguards
(EASS)

• Overall objective
• Harmonize on issues related to E SS based on
  the governments own guidelines which reflect
  recommendations on the working group on E SS.
  

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Progress to date

• Comparative analysis of the ESS systems of the
  IDPs (WB,USAID,CIDA,CDB IDB) - most significant
  area for harmonisation was found to be the review
  and approval processes.
• CIDA developed its environment Programme for 2005
  2010, using a consultative process IDPs and
  GOJ.
  

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• Challenges
• The need for appropriate training and technical
  assistance for the National Environment and
  Planning Agency (NEPA)
  
• Ensuring that harmonization is consistent with
  bilateral Environmental Acts and MFIs policies
  and operating regulations as well as the
  governments own requirements under its permits
  and licensing system for project approvals.

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ANALYTICAL FRAMEWORK

• Objective
• To have development partners support a
  government-led and country-owned development
  strategy, thereby minimizing coordination risks,
  reduce transaction costs and ensure better
  alignment of IDPs activities with the GOJs
  social and economic policies.

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Progress to Date

• Development of the Medium Term Socio-Economic
  Policy Framework (MTSEPF) - the most successful
  attempt at harmonization since the formal
  initiative in early 2003
• Formulation of the strategy first became
  necessary when
  
• The IMFs Staff Monitored Programme
• with Jamaica ended in March 2003
• EU Targeted budget support programme ended
• in June 2003.
• Involved collaborative efforts between the EU
  GOJ in the initial analytical work, and the other
  IDPs and government at the drafting stage.
  
• Approved by the National Planning Council and
  Cabinet in July 2004.

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MTSEPF

• The MTSEPF has created a platform for greater
  collaboration among donors/lenders.
  
• The IDPs seem keen to align their strategies on
  the MTSEPF and to increase coordination and
  harmonization of their activities provided there
  is a clear definition of Government priorities,
  evident links between the strategy and
  expenditure, and a robust framework for
  monitoring and evaluation.

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MTSEPF

• Challenges
• Despite MTSEPF, different documentation
  requirements of the decision-making and
  authorizing bodies of the IDPs
  
• Fiscal constraints currently facing the
  Government
  
• Varied programme cycles and Assistance Strategies
  of IDPs.
  

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PIOJ Donor Coordination Initiative

• Thematic Working Groups (TWG) Governance,
  Environment/Rural Development, Private Sector
  Development and Youth - Vehicle for enhancing
  aid effectiveness under Harmonisation.
• Aimed at greater country ownership, better
  aligned development assistance with GOJ
  priorities and more effective programming of IDP
  resources.

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Way Forward for Donor Coordination

• Refinement of donor coordination strategy to
  ensure effectiveness following drafting of the
  MTSEPF
  
• New Strategy to reflect commitment by the GOJ for
  a greater role for IDPs in the review and
  monitoring of the Policy Framework
  
• Increased emphasis on Sector Wide Approaches
  (SWAPs) and Programme Based Approaches (PBAs)
  
• Refinement of the Donor Coordination strategy to
  benefit from IDP inputs incorporating SWAPs and
  PBAs.

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General Considerations

• The road to harmonization and alignment involves
  complex processes and the achievement of the
  objectives does not constitute ends in and of
  themselves. Harmonization and alignment have
  become not only necessary but imperatives
• Commitment needed in financial terms as well as
  in effort, time and the willingness to subject
  individual perspectives, by government and IDPs,
  towards achievement of the greater good.

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Lessons Learnt

• Need for greater dissemination of information on
  harmonization initiatives downwards to
  operational levels of the public sector and to
  IDPs as well
• IDP operatives on the ground remained bound by
  existing principles, practices and procedures
  despite the fact that the representatives should
  have been given greater autonomy to facilitate
  the harmonisation efforts
• Inadequate information flows from/with the DAC
  working groups
  
• Working relationships, mechanisms and available
  resources brought to the table should be
  clearly defined to facilitate meaningful planning
  and budgeting
• Projects/Programmes may provide the best means of
  further implementing harmonised approaches.

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Public Sector Modernisation II

• DFID and CIDA jointly funding a successor public
  sector modernisation programme.
  
• Acceptance by DFID and CIDA of Governments
  financial statements, procurement based on
  Government procedures and fielding of joint
  review missions.

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Challenges

• Severe financial and human resource constraints
  on the part of the government
  
• Inadequate IDP programmatic resources to meet the
  imperatives of harmonization and alignment.

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Next Steps - Government

• Increased effort will need to be made on the part
  of the Government to increase awareness of
  technical teams around harmonisation
  
• Task Forces should be established within
  Government ministries and agencies to champion
  harmonization and disseminate information
  
• Activities are to be identified that do not
  require funding, and where technical assistance
  support is desirable, to pursue these initiatives
  simultaneously with mobilizing financing
  resources.

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Next Steps - IDP

• Donors need to be forthcoming in helping to set
  up the necessary implementation structures and
  dedicated budgets from head offices using well
  targeted grant resources where possible
• DAC should seek to promote greater interaction
  between partner/pilot countries to learn from
  shared experiences, identify best practices, and
  generally to find ways through mutual
  collaboration of deepening the harmonization and
  alignment experience

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Next Steps IDP

• Increased emphasis must be placed hereafter on
  ensuring greater alignment between IDP country
  strategies and Governments development
  strategies
• Need for clear measurable benchmarks and
  indicators to assist countries to track progress
  in implementing the Harmonisation Initiative
  
• The provision of a dedicated fund (preferably
  grants) to address resource constraints faced by
  partner countries in implementing harmonisation
  initiatives, should be explored.

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• The End