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Mutual Accountability and Aid Transparency - Rwanda – IATI Partner Country Meeting, 4th July 2011 Paris, France Ronald NKUSI Director, External Finance.

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Presentation on theme: "Mutual Accountability and Aid Transparency - Rwanda – IATI Partner Country Meeting, 4th July 2011 Paris, France Ronald NKUSI Director, External Finance."— Presentation transcript:

1 Mutual Accountability and Aid Transparency - Rwanda – IATI Partner Country Meeting, 4th July 2011 Paris, France Ronald NKUSI Director, External Finance Unit Ministry of Finance and Economic Planning 1

2 Outline National Mutual Accountability Framework Major Behavioral Changes – outcome of the MA survey Factors promoting behavioral changes Aid Transparency Aid on Budget Domestic accountability and Role of Parliament 2

3 National Mutual Accountability Framework Rwanda Aid Policy - Key national foundation for mutual accountability Consistent with national development strategy priorities Clear institutional responsibilities with GoRs vision and preference Product of inclusive consultations which is endorsed by the Cabinet National Aid Coordination Forum – DPM, DPR, DPCG, and BSHG – led by the Government. Assessment of progress towards aid effectiveness targets addressed through the fora Review mainly Ministries, DAC donors and local government agencies, limited assessment at implementation agencies (i.e. NGOs). Review comprehensively donor and sector performance individually Sector level MA mechanisms: Joint Sector Reviews and Sector Working Groups 3

4 National Mutual Accountability Framework – Contd Performance Assessment Framework – an integral and key instruments of MA Common Performance Assessment Framework (CPAF) – Sector level assessment on outcome targets and policy actions, drawn from the Economic Development and Poverty Reduction Strategy (EDPRS) M&E Framework Donor Performance Assessment Framework (DPAF) – Donor assessment on aid effectiveness targets, drawn from the Paris Declaration on Aid Effectiveness and Rwandas Aid Policy Review comprehensively donor and sector performance individually Areas for further Improvement Inclusiveness (local government, CSOs, private sector, etc.) could be further strengthened. Limited dialogue on analytic inputs engaged by Parliaments, CSOs, etc Accessibility and use of information by stakeholders be improved 4

5 Major Behavioural Changes Major behavioural Changes by GoR Improvement of PFM and strong efforts for Public Sector Reform to ensure efficient use of funds and effective implementation (i.e. Introduction of SPIUs) Reporting of aid information to the Parliament Strong leadership by Government – Kigali Statement of Action, Division of Labour Open and candid dialogue between GoR and DPs Major behavioural changes by DPs Trust in leadership of the country Increased alignment of DP support with GoR priorities Greater aid predictability Greater use of country systems (more GBS, SBS support) Agreement to shift sector as per DoL and respect Silent Periods. DPAF, DoL, DPM providing political engagement seen as good practical steps, tools and processes 5

6 Factors Promoting Behavioural Changes Aid Transparency: Development Assistance Database (DAD)s new feature to undertake DPAF and PD Survey through the system increases the comprehensiveness of aid information reported through the DAD. DPAF through DAD further enhances aid transparency; not only the volume and allocation but also modalities and alignment/compliance with aid effectiveness agreements. Comprehensive, timely, and adequate information supports comprehensiveness of national budget preparation – through providing key information for budget consultation. NGO module in plan: comprehensive aid information supports national ownership and accountability for ODA to Rwanda 6

7 Factors Promoting Behavioural Changes Aid on Budget: By Organic Finance Law, all revenues (resources) must be included in the Finance Law. Resources/support executed by Government agencies Availability of timely, adequate, comprehensive and quality information on commitments Enhances national ownership and domestic accountability Rolling out of SmartFMS – aid on budget a pre-requisite for any resources to be executed by Government agencies 7

8 Factors Promoting Behavioural Changes Domestic Accountability: Performance Contract drawn from Ministries annual workplans, linked with national budget and its execution => aid on budget critical element of enhancing domestic accountability Parliament overseeing not only national budget execution but also implementation of national development strategy (Economic Development and Poverty Reduction Strategy) => Parliaments oversight role over value for aid money (regardless of aid modalities) Alignment of aid delivered by NGOs and comprehensive aid information (on- and off-budget) is essential in ensuring oversight role of Parliament 8

9 Challenges – Example of Health Sector 9 Lack of aid transparency (timely commitment, etc.) challenges putting aid on budget Significant level of aid executed by NGOs or direct execution – accountability Oversight by Parliament on aid execution a challenge On Budget Off-Budget

10 Work in progress 10 Development Assistance Database (DAD) upgrading Use of common project identifier Use of GoR Chart of Account Linking DAD with SmartFMS NGO module Strengthened Sector Working Groups/SWAp and PBAs Single Project Implementation Units (SPIUs) – transparency and aid on budget Aid Procedure Manual to further facilitate aid management process including donor appraisal/supervision missions policy.

11 Thank you 11

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