Regional Assistance Plan 20047

1
Regional Assistance Plan 2004-7

• Enhance the effectiveness of the World Bank and
  the IADB in reducing poverty, in order to help
  Latin America achieve the Millennium Development
  Goals
• By working on
• access to markets for poor people,
• transparent and accountable public sectors and
  political systems.
• HIV and Aids, and trade.

2
The Main Tools

• Trust Funds held by World Bank and IADB
• Regional funds held in our offices in the Andes,
  Brazil and Central America,
• DFID Advisors in our offices in the region, in
  the UK, and in partner institutions in
  Washington.
• Support to a number of UK NGOs working in Latin
  America.
• A bilateral programme in Nicaragua
• Working with the FCO on the Global Conflict
  Prevention Pool activities in the region

3
Evaluation 1 DFID is doing good work

• Despite a slow start and very limited
  implementation period
• Things have been done within the RAP framework
  that are relevant, effective and promising of
  wider impacts
• There are numerous examples of interesting and
  effective projects, both
• through the Trust Funds, and
• from initiatives in the regional offices
• This is particularly notable in view of the
  challenging circumstances

4
Evaluation 2 The basis of this success

• The main mechanism of success is change in
  stakeholder relations, rules, and policy
  processes, achieved through sound
  alliances/partnerships and strategic opportunism
• The experience is confirming that small financial
  resources applied by excellent staff can have
  disproportionate effects
• However, the lines of work that seem most
  relevant and promising are based on very hard
  work to sustain and adapt regional initiatives
  that existed pre-RAP, together with small
  projects funded through the trust funds
• The successes do not show that you can start
  being effective in 1-2 years, or even 3! Rather,
  they underline the cumulative effect of sustained
  work over more than one planning period

5
Evaluation 3 Relevance

• Several of the successes (e.g. on governance
  monitoring, trade options and fiscal
  decentralisation in CA South-South learning on
  AIDS) are highly relevant outside LA and to
  operationalising White Paper 3
• This aspect of LAD experience is being
  under-disseminated, within DFID as well as with
  partners a missed opportunity to underline
  relevance of Latin American work

6
Evaluation 4 Imperfect operationalisation of the
focus on World Bank and IADB

• The central place of influencing the big players
  is not in question
• We see credible evidence of positive influence on
  the IFIs, but it is uneven
• In Washington, more notable at the IDB than at
  the World Bank
• In the region, more notable in the Andes and
  Central America than in Brazil
• Some of the best claims to IFI influence arise
  from the use of the regional funds
• There are too many instruments, programmes, and
  sub-objectives

7
Evaluation 5 DFID should proceed with any
changes with the utmost care

• In order to avoid creating a renewed impression
  of fickleness and short-termism
• Adjustments must not interrupt partnership-buildin
  g efforts like the PAR (sub-national government
  learning network), and recently-renewed
  relationships with government and other
  stakeholders

8
Lessons that we took from the Evaluation

• Latin America work is very relevant to DFID as a
  whole.
• We have added significant value to the work of
  the World Bank and IADB
• Our main ways of working have all delivered good
  results
• but need to be simplified.
• The most promising lines of work require a
  country base- to ground-truth what we do.
• We would be unwise to drastically change course
  at this stage.

9
So first thoughts continuity

• Keep focus on World Bank and IADB
• Keep focus on markets and governance
• Keep our advisory staff in Nicaragua, Brazil and
  the Andes
• Keep working with British NGOs

10
The UK Government context more money, but less
staff

• DFID staff to be concentrated where they are most
  needed
• Staff working on Latin America will be reduced
• But maintain the advisors in the region
• And increase the programme spend.

11
The Latin American context exclusion

• Inequality is the big development issue
• Rooted in exclusion of the poor
• from markets,
• from political influence
• Democratic governments are making a difference

12
Closing the income gap in Brazil2001-2005
13
Widespread mistrust of institutionsApproval
ratings Latinobarometro 2006
14
Continuity, but more focus

• Exclusion from markets
• Initially small enterprises
• Exclusion from Governance
• Initially improved political analysis, and
  sub-national issues.
• HIV/AIDS
• support through other donors

15
New element uncertainty

• Political alignments in the region
• Position of IADB and World Bank, as other sources
  of finance increase
• SO
• Build in flexibility to the RAP, with annual
  reflection

16
New element climate change

• Poor have to adapt to
• More hurricanes, floods and droughts
• spread of diseases lower crop yields less fresh
  water.
• Latin American governments important for forests,
  biofuels, etc
• SO
• Offer some DFID support

17
New element Brazils global role

• In global negotiations trade, climate change,
  member of the 5 group
• In spreading ideas about tackling poverty
  HIV/Aids, vaccines, social protection
• SO
• Offer some DFID support, within wider UK
  government

18
SUMMARY

• Staff in Andes, Brazil and Nicaragua
• Carry forward programmes on markets and
  governance with World Bank and IADB
• Country programme in Nicaragua
• Support to UK NGOs
• Less work on HIV/AIDS and donor harmonisation
• New work on climate change and Brazils global
  role
• Annual reflection