Workshop on Sector Approaches in the Context of EU Integration Workshop on Sector Approaches in the Context of EU Integration

Sarajevo, Bosnia and Herzegovina 22-24 March 2010Sarajevo, Bosnia and Herzegovina 22-24 March 2010

Debriefing of theDebriefing of the

Workshop on Sector ApproachesWorkshop on Sector Approaches

Sarajevo – March 2010Sarajevo – March 2010

Where have we come Where have we come from?from?

Pre-2007: Simple exchange of Pre-2007: Simple exchange of information between EC and other information between EC and other donorsdonors

From 2007: Enhanced donor From 2007: Enhanced donor coordinationcoordination

Conferences in 2008 and 2009: More Conferences in 2008 and 2009: More focus given to aid effectivenessfocus given to aid effectiveness

Agreement to move towards working Agreement to move towards working together through a sector approachtogether through a sector approach

State of Play State of Play Key conclusion of October 2009 conference on aid Key conclusion of October 2009 conference on aid

effectiveness, reaffirmed in GAERC conclusions of effectiveness, reaffirmed in GAERC conclusions of December 2009: December 2009:

““A move from a project based to a sector wide approach A move from a project based to a sector wide approach would improve the effectiveness and efficiency of financial would improve the effectiveness and efficiency of financial assistance by strengthening ownership by the beneficiary assistance by strengthening ownership by the beneficiary countries and harmonisation between governments and countries and harmonisation between governments and donors working towards specific, well-defined results”. donors working towards specific, well-defined results”.

Overall objective of the workshop: Overall objective of the workshop: to provide the opportunity to identify working to provide the opportunity to identify working methods for the formulation of sector approaches methods for the formulation of sector approaches and to deepen expertise in their practical and to deepen expertise in their practical application in the context of enlargement. application in the context of enlargement.

What is a sector What is a sector approach? approach?

A way of working together A way of working together between government, donors and between government, donors and other key stakeholders other key stakeholders

A process aimed at:A process aimed at: broadening government and broadening government and

national ownership over public national ownership over public sector policy and resource allocation sector policy and resource allocation decisions within the sectordecisions within the sector

increasing the coherence between increasing the coherence between policy, spending and resultspolicy, spending and results

reducing transaction costsreducing transaction costs

What is a sector What is a sector programme? programme?

Government ownedGovernment owned Three core elementsThree core elements

Policy/strategyPolicy/strategy Sector and donor Sector and donor

coordinationcoordination Sector budget and Sector budget and

medium term medium term perspectiveperspective

Other key elementsOther key elements Institutional setting and Institutional setting and

capacity issuescapacity issues Performance monitoring Performance monitoring

systemssystems

Support to sector Support to sector approachesapproaches

A sector approach is A sector approach is NOTNOT a financing a financing modality but rather a framework of modality but rather a framework of programming and evaluationprogramming and evaluation

Support to a sector programme within a Support to a sector programme within a sector approach can be provided by sector approach can be provided by inter alia:inter alia: Projects Projects Resource pooling Resource pooling Sector budget supportSector budget support

Other national revenue

s

Sector Budget Suppor

t

Through Treasury

Sector Programme

Co-financed activities

'Pool Fund'

Donor XDonor Y

Donor X

Donor Z

Projects

PPP

Own Fund

s

Financing ModalitiesFinancing Modalities..

What does it mean in an What does it mean in an Enlargement context?Enlargement context?

A sector programme for an IPA beneficiary A sector programme for an IPA beneficiary country should identify what is needed to country should identify what is needed to modernise a sector and align it to EU standards. modernise a sector and align it to EU standards.

Should be based on a country's own national Should be based on a country's own national development plan and be underpinned by the development plan and be underpinned by the EU's overall enlargement policy as well as by the EU's overall enlargement policy as well as by the country's Accession/European Partnership and country's Accession/European Partnership and SAA. SAA.

Should allow for EU integration priorities to be Should allow for EU integration priorities to be strategically planned for and sequenced at an strategically planned for and sequenced at an early stage. early stage.

Objectives of the Objectives of the workshopworkshop

How best to design sector approachesHow best to design sector approaches How to link sector approaches to EU How to link sector approaches to EU

integration objectivesintegration objectives How to manage the governance of How to manage the governance of

sector approachessector approaches How to establish a performance How to establish a performance

assessment framework for a sector assessment framework for a sector approachapproach

Main findingsMain findings Recognition that EU integration is the main Recognition that EU integration is the main

driver for country strategiesdriver for country strategies Countries have progressed in setting up a Countries have progressed in setting up a

framework for programme based/sector framework for programme based/sector approachesapproaches

Building blocks are in place in most countries:Building blocks are in place in most countries: a coordinating body at center of governmenta coordinating body at center of government a policy framework to link national strategies a policy framework to link national strategies

and EU integration prioritiesand EU integration priorities a programming framework, linked to the a programming framework, linked to the

budgetary processbudgetary process Best practices aboundBest practices abound

Main ChallengesMain Challenges Common understanding still need to be further Common understanding still need to be further

developed, both in countries and among donors developed, both in countries and among donors on concepts and methodson concepts and methods

Hierarchy /Integration of strategies in a Hierarchy /Integration of strategies in a coherent framework - National plans - sector coherent framework - National plans - sector strategies - NPAA’sstrategies - NPAA’s

Setting objectives/indicators require a Setting objectives/indicators require a performance assessment system - Decision performance assessment system - Decision making/ statistics/ analysis/ feed backmaking/ statistics/ analysis/ feed back

Linking budgetary processes / programmingLinking budgetary processes / programming Developing/maintaining capacity (human Developing/maintaining capacity (human

resources)resources)

Practical issuesPractical issues

Timing required to develop PBA/Sector Timing required to develop PBA/Sector approaches (2 years in average)approaches (2 years in average)

Timeline for planning IPA: what can be Timeline for planning IPA: what can be reasonably achieved in 2010, and in the reasonably achieved in 2010, and in the current financial perspective (by 2013)current financial perspective (by 2013)

Regulatory constraintsRegulatory constraints Synchronisation between donors/with Synchronisation between donors/with

countriescountries

Next steps Next steps Identification of sector or policy areas Identification of sector or policy areas

- define policy / result oriented - define policy / result oriented indicatorsindicators

Continue work at country level by Continue work at country level by authorities/donorsauthorities/donors

Toolkit for programmingToolkit for programming Continued assistance to prepare Continued assistance to prepare

strategies and make them operationalstrategies and make them operational Continued development of budgetary Continued development of budgetary

and programming processesand programming processes Strengthening human resourcesStrengthening human resources

Which sectors should Which sectors should we focus on for the we focus on for the MIPDs 2011-2013? MIPDs 2011-2013?

CriteriaCriteria Sector programme exists or under Sector programme exists or under

developmentdevelopment Full political ownership by the country Full political ownership by the country Broad consensus among donors that the Broad consensus among donors that the

sector programme is sound and should be sector programme is sound and should be supportedsupported

Sector should be a priority for Sector should be a priority for enlargementenlargement

Main focus on public governance stressedMain focus on public governance stressed

What does it mean for What does it mean for IPA financial assistance?IPA financial assistance?

Most IPA support under a sector Most IPA support under a sector approach will still be through approach will still be through projects BUT…projects BUT… Better targeted Better targeted Part of a better defined sector strategy, Part of a better defined sector strategy,

encouraging better prioritisation and encouraging better prioritisation and sequencing of IPA assistancesequencing of IPA assistance

Sector budget support ONLY in Sector budget support ONLY in exceptional circumstancesexceptional circumstances

Move towards multi-annual Move towards multi-annual programming programming

What does it mean for all What does it mean for all donor assistance?donor assistance?

Working through a sector approach with Working through a sector approach with Government and other donors should : Government and other donors should :

Allow for better identification of longer Allow for better identification of longer term priorities term priorities

Promote better division of labour between Promote better division of labour between donors donors

Enhance performance management and Enhance performance management and increase focus on results increase focus on results

Better value for money and

more efficiency and effectiveness