AfDB Partnership Forum April 2012 Dr Feng Zhao, Division Manager Human Development Department (title ) VALUE FOR MONEY, SUSTAINABILITY AND ACCOUNTABILITY FOR HUMAN DEVELOPMENT RESULTS IN AFRICA

Africa is changing rapidly o A decade of economic growth in Africa o Additional fiscal space for social services and growing private expenditure (health; education) o Decreasing share of aid in Africa’s social spending o Growing demand for transparency accountability as exemplified by the Arab Spring  Need shift from accountability to donors towards domestic accountability At the same time, the current crisis of HIV/AIDS funding prompts for sustainability to be at the core of Africa’s agenda

The New Africa Needs More Value for Money Countries achieve varying results at comparable levels of investment In Education

Need for Value for Money in Education Of those African children who start primary schooling, four out of ten drop-out before completion

Need for Value for Money In Health The 2010 World Health Report estimates that globally, “20-40% of all health spending is wasted through inefficiency”.

A New Agenda for Africa “Tomorrow’s agenda will be domestic. It will be about value for money through more transparent budgeting practices, making use of evidence-based budgeting tools, introducing performance-based budgeting and result-based financing, and improving the efficiency of private spending through increased risk pooling.” “The global health agenda in the coming decade will also be about sustainable delivery of the high-impact interventions …. Africa will, for instance, have to take ownership of tis AIDS response.” “More importantly, tomorrow’s agenda will be about the building of domestic accountability was marked by the Arab Spring… A new area of democratic governance is beginning where first and foremost have to be built towards African populations rather than toward donor countries. ” --AfDB President Kaberuka in his Lancet Article published on December 2, 2011

Thrusts of AfDB Building on MTS Governance pillar --toward improved governance in social sectors o There is a demand for increased leadership from African countries and institutions o Value for Money and accountability are at the heart of the new Human Development Strategy under development at AfDB (together with two other pillars i.e. Competitiveness and Employment Opportunities, and Risk Protection, inclusion and social cohesion) o AfDB knowledge broker also facilitating South-South sharing of experience o AfDB is working with other agencies to make the case for more efficient spending in social sectors (e.g. dialogue between ministries of finance and health with partners of the Harmonization for Health in Africa, incl. forthcoming ministerial conference in Tunis in July 2012)

A Possible Transformative and Innovative Partnership Value for Money in Social Service Program: - Strengthen dialogue between MoF/MoH and Chairs of Finance/Budget and Health Committees; - Develop capacity of MOFs and Parliamentary Finance/Budget Committees to fully play their role toward overall efficient health investment ; and - Enhance domestic accountability for health spending. o Leverage traditional and new sources of finance toward value for money

More information from: Fabrice Sergent Human Development Department