1. Debriefing of the Workshop on Sector Approaches Sarajevo – March 2010
Workshop on Sector Approaches in the Context of EU Integration
Sarajevo, Bosnia and Herzegovina March 2010

2. Where have we come from?
Pre-2007: Simple exchange of information between EC and other donors
From 2007: Enhanced donor coordination
Conferences in 2008 and 2009: More focus given to aid effectiveness
Agreement to move towards working together through a sector approach

3. State of Play
Key conclusion of October 2009 conference on aid effectiveness, reaffirmed in GAERC conclusions of December 2009:
“A move from a project based to a sector wide approach would improve the effectiveness and efficiency of financial assistance by strengthening ownership by the beneficiary countries and harmonisation between governments and donors working towards specific, well-defined results”.
Overall objective of the workshop:
to provide the opportunity to identify working methods for the formulation of sector approaches and to deepen expertise in their practical application in the context of enlargement.

4. What is a sector approach?
A way of working together between government, donors and other key stakeholders
A process aimed at:
broadening government and national ownership over public sector policy and resource allocation decisions within the sector
increasing the coherence between policy, spending and results
reducing transaction costs

5. What is a sector programme?
Government owned
Three core elements
Policy/strategy
Sector and donor coordination
Sector budget and medium term perspective
Other key elements
Institutional setting and capacity issues
Performance monitoring systems

6. Support to sector approaches
A sector approach is NOT a financing modality but rather a framework of programming and evaluation
Support to a sector programme within a sector approach can be provided by inter alia:
Projects
Resource pooling
Sector budget support

7. Other national revenues Co-financed activities
Financing Modalities .
Other national revenues
Sector Budget Support
Through Treasury
Sector Programme
Co-financed activities
'Pool Fund'
Donor X
Donor Y
Donor Z
Projects
PPP
Own Funds

8. What does it mean in an Enlargement context?
A sector programme for an IPA beneficiary country should identify what is needed to modernise a sector and align it to EU standards.
Should be based on a country's own national development plan and be underpinned by the EU's overall enlargement policy as well as by the country's Accession/European Partnership and SAA.
Should allow for EU integration priorities to be strategically planned for and sequenced at an early stage.

9. Objectives of the workshop
How best to design sector approaches
How to link sector approaches to EU integration objectives
How to manage the governance of sector approaches
How to establish a performance assessment framework for a sector approach

10. Main findings
Recognition that EU integration is the main driver for country strategies
Countries have progressed in setting up a framework for programme based/sector approaches
Building blocks are in place in most countries:
a coordinating body at center of government
a policy framework to link national strategies and EU integration priorities
a programming framework, linked to the budgetary process
Best practices abound

11. Main Challenges
Common understanding still need to be further developed, both in countries and among donors on concepts and methods
Hierarchy /Integration of strategies in a coherent framework - National plans - sector strategies - NPAA’s
Setting objectives/indicators require a performance assessment system - Decision making/ statistics/ analysis/ feed back
Linking budgetary processes / programming
Developing/maintaining capacity (human resources)

12. Practical issues
Timing required to develop PBA/Sector approaches (2 years in average)
Timeline for planning IPA: what can be reasonably achieved in 2010, and in the current financial perspective (by 2013)
Regulatory constraints
Synchronisation between donors/with countries

13. Next steps
Identification of sector or policy areas - define policy / result oriented indicators
Continue work at country level by authorities/donors
Toolkit for programming
Continued assistance to prepare strategies and make them operational
Continued development of budgetary and programming processes
Strengthening human resources 13

14. Which sectors should we focus on for the MIPDs 2011-2013?
Criteria
Sector programme exists or under development
Full political ownership by the country
Broad consensus among donors that the sector programme is sound and should be supported
Sector should be a priority for enlargement
Main focus on public governance stressed

15. What does it mean for IPA financial assistance?
Most IPA support under a sector approach will still be through projects BUT…
Better targeted
Part of a better defined sector strategy, encouraging better prioritisation and sequencing of IPA assistance
Sector budget support ONLY in exceptional circumstances
Move towards multi-annual programming

16. What does it mean for all donor assistance?
Working through a sector approach with Government and other donors should :
Allow for better identification of longer term priorities
Promote better division of labour between donors
Enhance performance management and increase focus on results
Better value for money and more efficiency and effectiveness