2. Krishna Prasad Dhakal Program Director National Planning Commission Secretariat

3. MfDR is a management strategy that focuses on using performance information to improve decision making. MfDR mobilizes all human, financial, technological and natural resources – domestic and external – to achieve desired development results.

4. It shifts the focus from inputs (“how much money will I get, how much money can I spend?”) to measurable results (“what can I achieve with the money?”) at all phases of the development process.

5. At the same time, MfDR focuses on providing sound information to improve decision-making. This entails tracking progress and managing business based on solid evidence and in a way that will maximise the achievement of results.

6. MfDR implies that goals are clear, measurable, l imited in number and concrete, with time-bound targets. At the same time, they must be expressed in human terms (i.e. as development outcomes). For this reason, MfDR is more than a methodology : it is a way of thinking and acting, built on a practical toolbox for improved public management. Source- www.oecd.org/dac/effectiveness/results

7. Linking resources to results Improving the effectiveness of public management Optimum utilization of scarce resources Demonstrating results and value for money Aid-effectiveness

8. Enhances government performance and accountability through- setting clear objectives and goals, Evidence-based decision-making, Transparency and continuous adaptation and improvements Developing performance and result culture

9. What is not counted?What is counted? How many clinics have been built Whether citizens’ health has improved How many schools have been constructed How many girls and boys are better educated How many dollars were loaned to a country Whether the country has less poverty

10. If you do not measure results, you cannot tell success from failure If you cannot see success, you cannot reward it If you cannot reward success, you are probably rewarding failure If you cannot see success, you cannot learn from it If you cannot recognize failure, you cannot correct it If you can demonstrate results, you can win public support Soucrce- world bank

11. MfDR concept emerged as a tool for linking outcome and output with inputs and activities thereby improving the effectiveness of resources spent. From the realization of the need for concepts that ensure aid effectiveness (Monterrey conference on Finance and development in Mexico, 2002) to evolution of the concept, principles and practices (WB and Marrakech, Morocco Round Tables, 2004) and to sharing of country practices on MfDR in Vietnam (2007), it has attracted attention of both donors and recipients as well as the development experts around the world.

12. At the Paris High-Level Forum on Aid Effectiveness (2005), donor agencies and partner countries committed to specific action for country ownership, harmonization, and mutual accountability for the use of aid.

13. Five Principles of MfDR

14. 1. Focusing the dialogue on results at all phases of the development process - Ensuring outcome and output at all phases of development process. 2. Aligning programming, monitoring, and evaluation with result - Implementation strategies design to support outcome and output.

15. 3. Keeping measurement and reporting simple - Designing simple indicators to measure outcome, enhance data base and practice simple formats for regular reporting. 4. Managing for, not by, results - Expected outcome and output determining activities and inputs – reversing the conventional trend of determining outcome based on inputs. 5. Using results information for learning and decision making

16. setting goals and agreeing on targets and strategies; allocating the available resources to activities that will contribute to the a chiev ement of the desired results ; monitoring and evaluating whether the resources allocated are making the intended difference ; reporting on performance to the public ; feeding back information into decision-making.

17. World bank (2004)

18. Measureable Indicators Result matrix Business plan Result-based budgeting Result-based M&E

19. A business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.business

20. The concept of business plan was come from private sector Business plan is a backbone of MfDR. Business plan is normally prepared for 3 years in rolling basis. Business plan is to update every years because of its rolling feature.

21. MfDR links macro and micro plan. It establishes relationships between central\periodic plans and sectoral\ministerial plan and activities.

22. Key outcomes (i.e. strategic objectives) Performance measures and targets Time frames and responsible agencies Expenditure/Budget estimates Monitoring and Evaluation mechanisms Critical factors for successful implementation (key success factors)

23. A business plan will- Clarify thematic priority areas of interventions; Specify Budget allocation required for achieving outcomes by driving the budgetary system toward a performance base; Serve as a basis for negotiation between the budgetary authority and the related organization;

24. A business plan will- Work as a basis for developing key performance indicators; Work as a basis for performance contract with the pilot organizations; Work as a basis for performance measures of the implementation plans; Help in prioritizing outcomes; and Help in aid harmonization and aid effectiveness.

25. Indicative Table of Contents for the Business Plan Development Context and Background Vision and mission, goals, mandates, objectives and priorities Major problems, challenges and opportunities (performance gaps and readiness analysis)

26. Key objectives and Expected outcomes – linked to TYP Quantitative Targets – linked to TYP but disaggregated for each of three year Strategies and Policies - linked to TYP Core programs to achieve the objectives and quantitative targets (review of ongoing programs and prioritization)

27. Budget Allocation (Investment plan linked to MTEF) Institutional development – address sources of gap identified through Readiness Assessment Analysis Monitoring and Evaluation Critical factors for successful implementation- Risk/Assumption

28. APPENDICES Appendix I: Results Matrix ( with all the essential components ) Appendix II: Results Based Monitoring Framework Any other Appendices

29. CategoryIndicatorsMeans of verifications Risk and Assumption Impact Outcome Outputs Activities Inputs

30. Nepal as Leader The Government of Nepal is regarded as a leader in the implementation of managing for development results (MfDR) in the South Asia region. It has taken concrete steps in developing some core elements of results-based management. It has established an MfDR framework and put in place mechanisms that link planning, budgeting, project and/or program implementation, and monitoring to development results (outputs and outcomes).

31. MfDR was started in 2007 with a technical assistance of ADB. The first project (Fiscal year 2007-2009) initiated MfDR in 3 Ministries (Education, Local Development and Physical Planning) and 3 districts (Dang, Jumla and Jhapa). The second project funded by ADB (from July 2009- July 2011) introduced MfDR in 2 more ministries ( Agriculture and Energy) and 6 departments.

32. Now 5 Ministries and 8 Departments have prepared business plans and they are in the process of implementation. Result-based budgeting (RBB) is already in implemented in 2 Government institutions (Department of Transport Management and Katmandu Valley Traffic Police Division.)

33. Government of Nepal is planning to continue MfDR in above-mentioned 13 government ministries and departments. GoN will introduce MfDR in other 13 (4 ministries namely Health and Population, Forest and Soil Conservation, Irrigation and Peace and Reconstruction and 9 more departments) government institutions. GoN will mobilize its own resources to bring in action above-mentions activities.

34. Major steps taken in this regard are- Preparation of Periodic Plans (PRSP & TYIP), and Long Term Vision Documents Linking Budget Allocation to Development Priorities through MTEF and Business Plans Establishment & Strengthening of M&E Systems (PMAS, PPIS) Start of Results Based Monitoring (Result-based M&E guidelines 2011 is prepared by NPC for donor- funded p1 projects.)

35. Major steps taken in this regard are- Performance-based Budget Release Tracking of High Priority Policies Public disclosure of the Key Information Public Sector Reform

36. To integrate, streamline, and institutionalize MfDR framework at all levels of the Government. To enhance institutional and individual capacity in public sectors. Political transition To establish and strengthen effective M&E system. To ensure quality of service performed.

37. We are moving forward on the way of RBB/MfDR with great enthusiasm and hope. We do believe that the global partnership and experience sharing are equally important in this endeavor.