Sierra Leone Multidonor Budget Support

1
Sierra LeoneMultidonor Budget Support

• Presentation to the CG
• 30 November 2006

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Global Harmonization Agenda put into practice
trough the MDBS

• On the global level donor harmonization is widely
  discussed, most Donors are committed to the
  process through the Paris Declaration
  
• The Multidonor Budget Support is a concrete
  example of donor harmonization in Sierra Leone
  
• Discussion on harmonization has been ongoing
  since 2004 between DfID, WB, AfDB, EC and the
  Government of Sierra Leone and agreement was
  reached in 2005
• First Joint Review mission took place in 2006

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What does MDBS mean ?

• Multi donor budget support in Sierra Leone
  started with a gradual approach, through
  concentration on Public Finance Management
  
• Following the Joint Review partners agreed to
  move to a more comprehensive approach the PRSP
  
• MDBS does not include joint or cross
  conditionality and donors have committed to
  streamlining conditionality
  
• The MDBS framework is open to all willing parties

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Rationale for the Government

• Lower transaction cost
• The Government has a coherent set of targets to
  achieve within one framework
  
• As Government policy the PRSP, is driving
  harmonization it will help the Government to
  achieve its own objectives, rather than donor
  driven objectives
• Harmonization is expected to lead to more
  predictability in budget support disbursements

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Rationale for the Donors

• Working together in united way will give the
  donors a broader and deeper agenda in dialogue
  with the Government
  
• Many of the reviews and assessments needed for
  monitoring progress can be conducted jointly,
  thus saving resources and avoiding duplication of
  efforts

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Tools for the MDBS

• Memorandum of Understanding (MoU) is the base
  document for the arrangement. It outlines the
  level of cooperation, roles and responsibilities
  for the donor partners and for the Government
• The MoU describes the way forward for the coming
  years on deepening the harmonization process
  
• MoU to be signed today !

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Tools for the MDBS cont.

• Progress Assessment Framework (PAF) annexed to
  the MoU, defines the goals, policies and
  measurable indicators
  
• This document is a matrix of measures and results
  that the Government commits to and the donors
  will jointly monitor
  
• Starting point was Public Financial Management,
  but the development partners and GoSL have
  already agreed to move forward to a comprehensive
  PRSP PAF

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Experience so far...

• WB, DfID and EC conducted a Joint Review in June
  2006 with very good results
  
• GoSL and development partners felt that MDBS
  improves sharing of information and widens
  understanding of Budget Support
  
• Inter Governmental cooperation and forward
  planning to be enhanced
  
• Increased communication and cooperation necessary
  for successful reviews

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Results of the First Review
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Final Steps

• Signing of the Memorandum of Understanding
• Signing of the Aide Memoir from the First Joint
  Review Mission
  
• Conclusion of the Progress Assessment Framework
  for 2007 shortly after this CG
  
• These Final Steps actually are only building
  blocks for continuing cooperation
  

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Thank you!

• Kirsi Pekuri
• European Commission Delegation in Sierra Leone
• on behalf of the budget support donors