Greening development? - not just aid ODI, 23 Sept 2008 Seán Doolan Environment adviser DFID Africa Division

Summary Where do environment & climate change fit in donor priorities? How raise profile – political & economic debate? How support national & regional institutions & processes? How engage country leadership in processes? How integrate with development more broadly? What approach? What support? How resource?

Insights Hard to be a long-term donor and see so little progress … or long-term recipient and not see this as entitlement Environmental programmes as part of high politics & party politics Bilaterals more responsive to global & regional significance, policies & poverty incentives & procedures? Environmental screening not emphasised for bilaterals opt outs, reliance on multilaterals, over-reporting Delegation to multilaterals – scaling up, CC Climate change to integrate environment & development

Reservations Few references to donor documents & evaluations Outcome-based conditionality? Multi-donor trust funds -off balance sheet finance? Environmental information – CITES not indicative Neglects role of EC/EU in setting norms

Reservations Predates shift towards general budget support Sectoral allocations do influence aid emphasis Income & population relate to MDGs PLAID & aid effectiveness? Coding, duplicate reporting, proxy indicators Terminology, practitioners Do not rectify all inconsistencies in reporting …

Observations – governance & political economy Actors & institutional landscapes Bargaining power of recipients, esp. BRICS Policy instruments & procedures, political champions Donors raise issues, local politics determine outcomes Windows of opportunity, strategic coalitions, alter incentives, redistribution of capabilities National development planning essential Individuals & happenstance important

Environment in development cooperation - after 2000 MDGs – expansion of neutral aid poverty-environment linkages failed to gain traction MDG 7 – now reported as water Much in terms of safeguards, not investments different to domestic environmental expenditure Shift towards programmatic funding General & sector budget support Increase in social sector spend Harmonisation & alignment (Paris & effectiveness) Climate change

Environment – the future Economic growth & human development NR-driven growth & conflict Resource scarcity & competition (BRICS, climate change, fragile states, chronic poverty) Underpinning delivery of other objective Need realistic integration Reframing language, backstaging Networks, coalitions & evidence Public audit & accountability mechanisms Niche actors & champions Inter-institutional/sectoral linkages?

Environment – future drivers Climate change Political momentum Environment marginalised by development architecture & instruments Need to re-engage on both sides Environment as driver of governance shifts? Environment as result of shifts in governance & political economy?

Health – India, infection management Service delivery nosocomial infections (MRSA …) 63% injections unsafe in India 2 million new Hepatitis B cases a year 1.5 million deliveries PHCs, CHCs 2,700 blood storage facilities 280M AD syringes 615 t needles 550,000 outreach sites Indian experience – WHO transfer

India – school water & sanit UNICEF partnership ,000 primary schools 44% with water supply 8% with sanitation million primary schools 70% with water supply 51% with sanitation Enrolment & retention figures Morbidity, time Teacher motivation

NRE context in Ghana NRE policy trade-offs - underestimated consequences GoGh Strategic Env Assessment neglected Rethink policy dialogue & operational support to NRE Inconsistent consideration of NRE in-country Shift to budget support, harmonisation & alignment; country priorities & systems Disengagement from NRE policy support (PPG7 analogy with Brazil) NRE marginal to "on-budget" support, aid instruments & development policy

Donor Ghana Partnership Strategy Joint Assistance Strategy (JAS) Multi-Donor (General) Budget Support Prog Development Partners & GPS coordination Government & donor alignment New aid architecture, JAS = 14 donors, 90% aid Growth & Poverty Reduction Strategy II

NREG preparation process (not linear) Government of Ghana Development Partners Missions, virtual networks NREG task team Ghana Poverty & Reduction Strategy II Ghana Joint Assistance Strategy Policy Dialogue – General Budget Support Analytical work NREG Ministries & Agencies Civil society Policy matrices Finance (MoFEP) High level committee Budgets & fund flows ENR Sector group

Donor coordination on NRE 2001 Coordination projects around NR Management Programme disbursement focus, differing project requirements 2004 Sector group started information exchange 2005 Economic & Sector Work discussion at different level economic case, not " protection" Country Environmental Analysis platform for dialogue during workshops NRE Governance sector budget support

NREG - evolving mix of financing instruments? Shift from enclave projects Consolidating accountability Sustaining progress Multi-Donor Budget Support £$ - MoFEP Sector budget programmes £$ - MoFEP & Ministries Sector-aligned programmes £$ - Ministries Projects £$ - Sector agencies

Paris linkages - ownership Anchored in sector dialogue & issues Finance at centre, coordinating line Ministry inputs Sub-sector matrices Letter of Development Policy as overall statement Nat Dev Planning Commission guidance on sector planning Medium-Term Expenditure Frameworks - public financial management focus - analysis & planning on financial flows - budget cycle

Paris linkages - alignment Single set of indicators, set by line Ministries & Agencies Finance commissioning related studies using country procurement mechanisms Multi-year budget commitment, annual assessments Flexibility in evolving indicators & targets Reinforcing country sectoral & national planning & systems

Paris linkages - harmonisation Donor procedures differ, only some flexibility Joint conclusions from joint assessments? Reconciling HQs with in-country offices & processes Active sector group dialogue key Anchor in dedicated staff & in-country processes Division of labour – NRE expertise can disappear Linkage to general budget support dialogue problematical General budget support useful for existing policies, not reform

Paris linkages - reflections High transactions costs in set-up for both Government & development partners Weak strategic planning, M&E & financial systems Quality of input Bringing NRE agencies to speed with aid instruments Policy matrices & indicators – sector plans vs dialogue Matrix fatigue & guided ownership Civil society engagement sensitive

Paris linkages - analysis Institutional planning & budgeting Credibility of medium-term strategic planning & budgeting Effectiveness of NRE country systems & processes to address development agenda Analytical work on NRE Scarcity of analytical work to make economic case for NRE Scarcity of institututional or expenditure analyses