Ministry of Finance and

Economic Planning

Delivering Local Services in the

midst of Conflict in South Sudan

Emmanuel Ssewankambo – Country Manager and Local Services

Support Advisor, BSI South Sudan

Slide 1Sep-15

Ministry of Finance and

Economic Planning

Presentation Outline

The presentation focuses on:

A. Overview of the Change Process

B. The main output/change; significant aspects that

contributed to the change; and lessons learnt to-date

Slide 2

Ministry of Finance and

Economic Planning

Part A: Overview of the Change Process

Shifting from addressing a disagreement on how aid should

be delivered to a government-led process to strengthen

service delivery

Slide 3Sep-15

Ministry of Finance and

Economic Planning

No agreement on the best approach to

deliver the services

• Before independence, South Sudan was characterized by:

– weak institutions and government systems;

– appalling levels of services delivery in quantity and quality terms;

– services mainly delivered by donors through international NGOs.

• Government was interested in budget support but donors disagreed and gave it no

chance - concerned about the fiduciary risks

Slide 4

Ministry of Finance and

Economic Planning

LSSAI Conceived to find some middle ground

and initiate a constructive process of dialogue

• In June 2011, BSI supported MoFEP to develop an LSS Aid Instrument Note

– that initiated a dialogue process on how aid should be delivered whilst strengthening and

using parts of Government systems;

– for primary education, primary health care and small scale infrastructure.

• Given donor concerns about fiduciary risks associated with using Government

systems, a Risk Management Strategy was developed focusing on parts of the

system

• However, the relationship between donors and Government deteriorated when oil

was shut down in January 2012 - donors did not want to talk about LSSAI anymore

• BSI supported MoFEP and sector ministries to develop SDFs

• Focus shifted to strengthening systems across sectors that culminated into the LSS

Joint Plan of Action – Dec 2012

• Donors interested returned with the development of the New Deal Compact

• Then tragically, conflict returned – but in the midst of conflict transfers were made

and the agenda has continued to advance

Slide 5

Ministry of Finance and

Economic Planning

But the story was not a linear process as it

sounds

Slide 6

Ministry of Finance and

Economic Planning

Part B: The main output/change; significant aspects that

contributed to the change; and lessons learnt to-date

Slide 7Sep-15

Ministry of Finance and

Economic Planning

Establishing a system of intergovernmental

transfers to fund local service delivery

Slide 8

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County Grant

County and Service Delivery Units Grants Budget Outturns 2014/15 and Budget 2015/16

Budget 2014/15

Outturn 2014/15

Budget 2015/16

Ministry of Finance and

Economic Planning

Aligning donor projects to Government

systems

• The World Bank and Danida funded LGSDP/LOGOSEED establishing a

system of funding priority community infrastructure projects using country

systems

– The Payam Development Grant has been used for financing 34 sub-projects of

which 30 have been completed and handed over, three are on-going and one has

stalled due to cost escalation.

– Spearheading the implementation of mechanisms for participatory planning,

budgeting and implementation of projects by local governments

• GESS funded by DFID shadow-aligning with Government systems –

– Using the same systems for budgeting and reporting of capitation grants for

Primary and Secondary education, funded by Government and DFID respectively

– Anecdotal evidence that due to the capitation grants, schools are no longer levying

as many ad hoc fees on pupils as before, which has had an immediate contributory

effect of reducing school drop-out rates

Slide 9

Ministry of Finance and

Economic Planning

Developing & strengthening systems for

supporting service delivery

• LG PFM and HRM systems

–BSI supported MoFEP to mobilize specialized support to develop the

LG PFM and LG HRM Manuals and oversee the production of these as

Government documents

–The issued LG PFM and LG HRM manuals are the basis for supporting

systems strengthening at the sub-national level

–BSI is supporting MoFEP to coordinate the implementation of other TA

and donor programmes to roll-out the LG PFM systems (EU, World

Bank, DFID etc..)

• Establishing oversight and accountability structures

–State Transfer Monitoring Committee – including SMT and sector

transfer monitoring committees

–County Transfer Monitoring Committee at the state level

–LG Audit and Performance Assessment system

Slide 10

Ministry of Finance and

Economic Planning

And the reform is Government owned and led

Slide 11

Ministry of Finance and

Economic Planning

Main aspects leading to positive changes

• A reputable and charismatic convener

• Supportive technical teams in MoFEP and sector Ministries for strengthening

and using Government systems

• Some donors with experience working with, along and supporting Government

systems

– Designing capitation grants in education sector and

– LGSDP/LOGOSEED

• Political endorsement – budgeting and implementing transfers in 2013/14 was

possible because it was part of the Government’s Budget priorities

• Complementary TA/donor programmes

– Focus on strategic advice – BSI

– Focus on systems design – BSI, GESS, HPF etc…

– Focus of supporting implementation – GESS & HPF (DFID); LGSDP (WB);

EU-TAPP

Slide 12

Ministry of Finance and

Economic Planning

Main aspects curtailing positive changes

• The security context - limiting the movements, and oversight of transfers

• Increasingly unsustainable fiscal context - the reduced revenue and increased expenditure;

• limited external financing – focussing more on humanitarian than development assistance

• Depreciation of the local currency against the US dollar – reducing the real value of

transfers

• Uncertain attitude of Development Partners leading to short-lived support to some of the core

processes ( State IFMIS; Sub-national payroll etc..)

• Role of the political market place – leading to reluctance to sanction States that do not abide

with the transfers guidelines

• Staffing challenges in Government

• Inadequate numbers;

• High turn-over as staff go for further studies

Slide 13

Ministry of Finance and

Economic PlanningLessons to-date

• Be realistic about how long reforms take – there is need for sustained

and consistent support over several years

• Continuous learning and improvement – be flexible and evolve the

agenda with the context

• Traction was possible because of focusing initially on actions that

could be operationalized at the technical level not those that required

high level political endorsement.

• But political leadership is key to provide authorising space and in

ensuring that reforms hold.

• Facilitation and brokering are just as, if not more, important than the

technical advice

Slide 14

Ministry of Finance and

Economic Planning

THANK YOU

Slide 15Sep-15