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									         “WatSan and PRSPs”
              ODI/WaterAid/WSP
             Regional Workshop,
         Kampala, 2nd- 4th February, 2004


                  Peter Newborne,
             ODI Water Policy Programme


Water
Policy                                      1
Programme
                WatSan and PRSPs project

• Phase I: 2002
- preliminary assessment of extent of incorporation of
  water (WSS and WRM) under PRSPs in five African
  countries: ie: review of PRSP preparation (both content
  & process)

- findings of Phase I on separate sheet.

• Phase II: 2003-2004 (until end March)
- detailed study of how resources, allocated to WSS
   priorities under PRSPs in three African countries, are
   converting into expenditure on WSS outputs, for poverty
   impacts.
       Water
       Policy                                                2
       Programme
     Strengthening Design, Finance and Delivery of
       Water Supply and Sanitation Programmes
                    under PRSPs


• Phase II: 2003-2004 (until end March) project purpose

• To help strengthen the design, financing and delivery of
  water supply and sanitation programmes within PRSPs
  in selected countries in sub-Saharan Africa, as part of
  further development, implementation and monitoring of
  Poverty Reduction Strategies in the region

- investigation of PRSP implementation: (i) finance, and (ii)
    design/delivery of WSS interventions under PRSPs in
    the region.

       Water
       Policy                                                   3
       Programme
     Strengthening Design, Finance and Delivery of
            WSS Programmes under PRSPs

Research scope and focus
- through the water sector’s experience, to review progress of PRSP
    implementation, in order to:-

- investigate how resources, allocated to WSS priorities in PRSPs in
    the region, are converting into expenditure on WSS-related
    outputs/outcomes;

- recommend how capacity for action by central & decentralised
    government may be strengthened to deliver on promises made in
    PRSPs - and those commitments may be developed - for
    achievement of water-related poverty reduction outcomes;

- make recommendations for how external donors may support this
   effort.

        Water
        Policy                                                         4
        Programme
                  WatSan and PRSPs project

• Phase I: 2002
• - preliminary assessment of extent of incorporation of water (WSS
  and WRM) under PRSPs in five African countries: ie: review of
  PRSP preparation (both content & process)

• Phase II: 2003-2004 (until end March)
• - detailed study of how resources, allocated to WSS priorities under
  PRSPs in three African countries, are converting into expenditure on
  WSS outputs, for poverty impacts
• - ie: investigation of PRSP implementation: (i) finance, and (ii)
  design/delivery of WSS interventions under PRSPs in the region.




         Water
         Policy                                                          5
         Programme
              Countries for Water & PRSPs study

• ODI - WaterAid project
    Phase I: Zambia, Uganda, Malawi; Kenya, Madagascar
    Phase II: Zambia, Uganda, Malawi

•   WWF/ODI project
-   Zambia, Uganda, Kenya, Madagascar; Tanzania, Niger
-   Pakistan, Vietnam
-   Nicaragua; Mexico (WB Strategy for Poorest Southern States).




             Water
             Policy                                                6
             Programme
     HDI Rankings of WWF-Selected Countries
Source: UNDP 2002, as per World Water Development Report -WWDR

                Niger                      172
                Zambia                     153
                Tanzania                   151
                Uganda                     150
                Madagascar                 147
                Pakistan                   138
                Kenya                      134
                Nicaragua                  118
                Vietnam                    109
                Mexico - national          54
    Water
    Policy                                                       7
    Programme
Two HD Indicators for WWF-Selected Countries
               Source: UNDP HDIs 2003 - www.undp.org
                                 Child Mortality Rural Water Coverage
                                 under five, per        % of rural pop. with sustainable
                                 1,000 births in 2001   access to impr..water, 2002

              Niger                     265                          56%
              Zambia                    202                          48%
              Tanzania                  165                          57%
              Uganda                    124                          47%
              Madagascar                136                          31%
              Pakistan                  109                          95%
              Kenya                     122                          42%
              Nicaragua                  43                          59%
              Vietnam                    38                          72%
              Mexico: national           29                          69%
     Water
              Mexico: South              41               32-43% (piped connect)
     Policy                                                                           8
     Programme
                          PRSPs Processes - I

Six core principles of PRSPs
for strengthening link between debt
    relief & poverty reduction
“comprehensive”: recognition that
    poverty is multi-dimensional

PRSs should be:-
       country-driven;
       results-oriented;
       comprehensive;
       prioritised;
       partnership-oriented;
       based on long-term
        perspective.

          Water
          Policy                                9
          Programme
                      PRSP and Related Processes - II
•   PRSPs cover a three-year timeframe, with annual review and update

-   PRSP role as “platform for financing”

-   budget: key vehicle for PRSP implementation, annually

-   both PRSP and Budget need to be “nested” within longer term development
    policy and planning process

-   MTEF* is one planning tool, typically over 3 years: estimate of the
    resourses available for public expenditure, together with indicative plans for
    allocating those resources between competing priorities

-   Role/aim of MTEF:a linking framework to ensure expenditure driven by
    policy priorities and disciplined by budget reality (World Bank 1998).


                         *   Medium Term Expenditure Framework

          Water
          Policy                                                                10
          Programme
                       Key Parts of PRSPs
•   PRSP Priorities
-   “pillars”; key “principles”/”concepts”; cross-cutting themes
-   analysis of multi-dimensional aspects of poverty
-   poverty reduction and economic growth responses

• PRSP Objectives
- by sector/subject/theme
- degree of prioritisation?

• PRSP “Action Plan” (or “implementation matrix” etc.)
- with costings
- degree of clear prioritisation?

    NB: discontinuity of PRS process evident through discrepancies between
         above parts of PRSP in Zambia, Madagascar, Kenya & Vietnam.


         Water
         Policy                                                              11
         Programme
                 Progress in Production of PRSPs
            as at October 2003 (source IMF PRSPs website)


•   Full PRSPs: 35 countries (see separate handout)
•   Interim PRSPs: 18 countries ( “ “ “ )
•   Potentially 9 remaining HIPC countries not produced I-PRSP ( “ “ )
•   What about the other low-income or “other” countries listed in the
    WWDR, or as listed in World Bank Timelines website without explicit
    forecast as to PRSP production: Eritrea? Bhutan? Afganistan?
    Dominica? Haiti? Kazakstan? Yugoslavia?

•   NB: above WB website last updated in April 2002: more recent information?




            Water
            Policy                                                              12
            Programme
        PRSP Processes – Plenary discussion
• Possible focus/i of engagement:-
- PRSP implementation;
- PRSP preparation;
- in different countries/regions.

• Timing (as per WB Analysis of Implementation Progress, Sept 15th
  2003):-
- average duration from I-PRSP to full PRSP: 20 months
- annual PRSP progress reports (PRSP-PRs): 11 by 7 countries.




          Water
          Policy                                                     13
          Programme
Water
Policy      14
Programme
    WatSan and ATER, POVERTY &
          DEVELOPMENT


Status of Incorporation of Water Priorities
               under PRSPs




    Water
    Policy                                    15
    Programme
• Lessons from ODI/Water DFID-funded
  WatSan & PRSPs project: Phase I (2002)




     Water
     Policy                                16
     Programme
                     Treatment of Water-related Issues
                       in 10 WWF-Selected PRSPs - I


• Positioning of Water Objectives (see separate handout)

-   in 6 countries, WSS is Social/human

-   in 6 countries, WRM interventions are related to Economic and
    Growth, or Productive; but there is also some recognition of social
    functions of WRM, and in 2 countries of vulnerability aspects

-   WSS in 1 country is labelled solely Economic

-   Infrastructure in Kenya (& Zambia) clearly reflects different
    preoccupation, with physical installations

- for sector coherence: Zambia, Madagascar only?!

            Water
            Policy                                                        17
            Programme
                     Treatment of Water-related Issues
                       in 10 WWF-Selected PRSPs - II
-   Poverty noted as predominantly rural, although urban (peri-urban)
    poverty is a serious problem

-   Gender: key role of women/girls in relation to WSS reflected in text
    of some PRSPs (Niger, Uganda, Kenya, Vietnam), but in PRSP
    water Objectives/Actions gender aspects are weak

-   Agriculture referred to as a driver of growth or key economic
    sector, in 7 PRSPs

-   Irrigation development clearly emerges as a key subject in 7
    PRSPs

-   Flood/drought noted in 9 PRSPs.



            Water
            Policy                                                         18
            Programme
                     Treatment of Water-related Issues
                      in 10 WWF-Selected PRSPs - III
•   IWRM: “integrated” WR management mentioned, as future need or incipient
    in 5 countries: Niger, Zambia (1 project), Tanzania, Nicaragua (compre-
    -hensive solutions), Madagascar (1 project; also to be developed nationally)

•   Freshwater ecosystems, environment or biodiversity: Zambia (important
    for tourism and fishing); Uganda (role of wetlands for c.5m); Kenya
    (conservation), Mexico-South (biod.= comparative advantage); Vietnam
    (pollution of rivers); Madagascar & Nicaragua (deterioration of watersheds);
    Tanzania (heavy dependence of poor on environmental resources)

•   Water “efficiency”: Pakistan; cf: Vietnam: manage water resources strictly;
    Mexico: WSS low cost-recovery; Madagascar: irrigation efficiency
    presumably part of improving inputs to rice production

•   Transboundary aspects: briefly mentioned in 2 PRSPs

•   Hydro-power: 5 PRSPs refer to building of hydro facilities - Zambia,
    Uganda, Pakistan, Kenya, Mexico - several with major cost (how funded?).


            Water
            Policy                                                                 19
            Programme
                     Treatment of Water-related Issues
                      in 10 WWF-Selected PRSPs - IV
• Sanitation
- relatively well integrated in 4 PRSPs; weak in 6 PRSPs
- funding gap in Niger, Tanzania, Kenya; others?

• M&E
- M&E processes described in text of all PRSPs, more development
  of indicators & institutional system needed
- Uganda: ahead of some countries, but Progress Report 2003 and
  WaterAid study confirms need for improvement

•   MDGs
-   mentioned in 4 PRSPs: Niger, Tanzania, Madagascar, Vietnam
-   water target referred to in Niger, Vietnam
-   reference to IDGs/DAC goals: Kenya, Nicaragua
-   Mexico-South: small probability of achieving MDG 1; WSS target
    feasible, assuming funds and, as/more important, political will.
            Water
            Policy                                                     20
            Programme
               Sectoral Links in Selected PRSPs
• Intra-sectoral: WSS-WRM
Impression of some intra-sectoral (WSS-WRM) coherence portrayed in text of
   5 PRSPs
• Niger, Tanzania, Madagascar, Kenya, Vietnam
• through linking of domestic and productive activities in rural lives/contexts

• Inter-sectoral
Water links to health and education noted in 6 and 3 countries, also
  environment (3 countries) articulated in PRSPs

WSS: time fetching/carrying water explicitly referred to in 5 PRSPs (gender)
(but, in prioritisation of investment, is consequent substantial loss of productive
   time taken into account?)

NB: how are above links, as described, reflected in coordinated actions in
  practice? example of good practice: “matrix” of types of intervention and
  contributing/delivering depts. in the Madagascar PRSP Action Plan.


            Water
            Policy                                                                    21
            Programme
          Incorporation of Water Priorities
           in PRSPs - Plenary Discussion


• How may the water
  "sector" support
  strengthening of
  PRSPs?




     Water
     Policy                                   22
     Programme
  WATER, POVERTY & DEVELOPMENT


Making Scarce “PRSP” Resources for Water
            Interventions Count




     Water
     Policy                                23
     Programme
                     Positioning of Water Objectives
                        in WWF-Selected PRSPs
                     (recall of positioning of WSS and WRM)


• In 6 countries, WSS is Social/human;

• In 6 countries, WRM interventions are related to Economic and
  Growth, or Productive; but there is also some recognition of social
  functions of WRM, and in 2 countries of vulnerability aspects

• WSS in 1 country is labelled solely Economic

• - Infrastructure in Kenya (& Zambia) clearly reflects different
  preoccupation, with physical installations

• - for sector coherence: Zambia, Madagascar only?


         Water
         Policy                                                         24
         Programme
              Targeting of Water Interventions
         in WWF-Selected PRSPs (see separate handout)
•   Zambia, Madasgascar, Pakistan, Vietnam, Mexico: investment to follow
    regional policy, targeting locations with particular economic growth potential

•   Madagascar and Nicaragua: both high development potential and
    poor/disadvantaged areas

•   Tanzania and Uganda: targeting according to poverty

•   Kenya: focus on “ASALs” (arid and semi-arid lands)

•   Vietnam: “disaster prone areas” (eg. Mekong Delta)

•   Pakistan: I-PRSP proposal for sub-national, as well as national, PRSPs

•   “Trickle out” of benefits of growth from well-integrated areas to weakly-
    integrated areas (WIAs)? generally slow and patchy, and growth orientation
    insufficient on its own, without investment for social protection.


          Water
          Policy                                                                25
          Programme
Financial Allocations in WWF-Selected PRSPs
                                                   Percentage allocation

Niger                      WSS & WRM               3% of PRSP + Rural Dev?
Zambia                        “         “          3.5%
Tanzania                      “         “          11%
Uganda                         WS(S)               Tripled in 3 years since 1999
Madagascar              WSS (and WRM?)             4.2%
Pakistan             WSS & WRM (Irrigation)        0.15% & o.35% of GDP
Kenya                             WSS              3.04% declining
                    WRM (including major hydro?)
Nicaragua                   WSS; WRM               2.84% of HIPC; little HIPC?
Vietnam             Water not separately costed except Irrig. 13% of capital
Mexico-South         Not costed: objective is to   redress anti-South bias


        Water
        Policy                                                               26
        Programme
         Targeting of Interventions under PRSPs
• Strategic Goals
- economic growth and/or poverty reduction
- information/analysis of poverty realities and growth opportunities

•   Operational Objectives
-   need clarity what is being sought, when
-   eg. economic: improvement of economic performance/production
-   or poverty reduction: but who/where are the poor? “unserved/least
    served”; “dispersed/isolated”; “vulnerable”
-   balance between financial-natural-physical-social-human, as per
    livelihoods principles
-   clear/robust performance criteria: equity, sustainability, efficiency.




            Water
            Policy                                                           27
            Programme
             From PRSP Priorities to resource targeting…


GOVERNMENT REVENUES                               EXTERNAL FUNDS
- Tax and non-tax                                 - Budget Support
                                                  - “Project” support

RESOURCE “ENVELOPE”                            MTEF
- resource projections                         - 3 years +
- budget guidelines and expenditure limits     indicative
(MoF)                                          resource
                                               allocation plan
- line ministry expenditure proposals

PRSP             PRSP         PRSP             BUDGET                      Local
Priorities       Objectives   Action Plan                                  Govt.
                                               -prepared         Funds                Funds
                              -with costings   -appraised        release              targeting   T
                                                                           Line
                                               -approved                   Agencies


              PRSP document
              Water
                                                   Budget formulation and execution
              Policy                                                                              28
              Programme
                    PRSPs and Budgeting
•   Budget
-   key public implementation mechanism of PRSP (and MTEF)
-   whole cycle from start to finish typically takes 3 years
-   start, ideally, 1 year before; execution = 1 year; further year to
    prepare and audit accounts
-   budget cycle needs to be “nested” within longer-term policy and
    planning process
-   time-lapse in practice for routine M&E data to inform budget
    formulation; use of periodic in-depth Public Expenditure Reviews
    (PERs)

NB: policy processes are “outside the circle” in the following diagram:
  see second diagram below…



        Water
        Policy                                                            29
        Programme
                               Budget Cycle: the theory
                   Annual                                          10. Preparation           11. Approval of
                  Review of                 9. State accounts        of audited             audited accounts
                   SWAP                      prepared by MF           accounts                by Parliament


                                                                                         1. Resource
                 8. Budget executed by                                               Projections prepared
                      line agencies                                                  by MF and approved
                                                                                          by Cabinet




             7. Budget
                                                                                          2. Budget Guidelines
        appropriations voted
                                                                                         and Expenditure Limits
           by Parlaiment
                                                                                             circulated by MF



Government
  Donor           6. Budget approved by                                         3. Line Agency expenditure
 Meeting         Cabinet and submitted to                                       proposals prepared and
                        Parliament                                              submitted to MF


                                                                4. Proposals appraised
                                         5. State budget        by MF and negotiations
                                         prepared by MF                                              Donor Budget
                                                                   with line agencies
                                                                                                     Meetings for
                IMF                                                                                     SWAP
             Negotations
                                                                     PER inputs &
                                                                       analysis


              Water
              Policy            Source: Norton and Elson, 2002, What’s Behind the Budget (p.8), ODI, adapted from      30
              Programme         Foster and Fozzard, 2000, Aid and Public Expenditure: A Guide ODI Working Paper 141.
          Linking Policy, Planning and Budgeting:
                         the theory
                                              (1)
                                  REVIEW POLICY
                           Review the previous planning and
           (6)                  implementation period                                   (2)

 EVALUATE AND AUDIT                                                  SET POLICY AND UNDERTAKE
      Policy activities’                                                 PLANNING ACTIVITY
effectiveness and feed the                                          Establish resource framework, set
 results into future plans                                          out objectives, policies, strategies
                                                                        and expenditure priorities

             (5)
                                                 (4)                                      (3)
 MONITOR activities and
ACCOUNT for expenditures           IMPLEMENT PLANNED                      MOBILIZE AND ALLOCATE
                                        ACTIVITIES                             RESOURCES
                                   Collect revenues, release                      Prepare budget
                                   funds, deploy personnel,
                                      undertake activities
              Water
              Policy                                                                                 31
                          Source: World Bank (1998), Public Expenditure Management handbook (p.32)
              Programme
     Channelling of Expenditure under PRSPs

•   What can go wrong? (pessimistic scenario)
-   resource “envelope” does not match projections
-   external funds are delayed/blocked
-   public resources are applied “off-budget”
-   donors withhold budget support in preference for “off-budget” (project
    support, bypassing national system)
-   actual allocations by MoF do not match budget (eg. expenditure cuts;
    political capture, eg. for different sector or strategic goal)
-   funds releases to line agencies delayed by MoF
-   decentralisation does not function to enable funds release to local
    government
-   line ministries/agencies or local govt. change operational objectives
-   line ministries/agencies or local govt. fail to analyse/plan poverty
    realities/targets, or fail to distribute funds as per their targets
-   funds released to third parties are misapplied.



         Water
         Policy                                                              32
         Programme
• WaterAid “snapshot” tests for equity and
  (social/financial) sustainability
  - recommendations from WatSan & PRSPs
  project: Phase II (2003-2004)




     Water
     Policy                                  33
     Programme
      Making Scarce PRSP Resources for Water
      Interventions Count - Plenary Discussion



• How may the water "sector" support better targeting
  of resources under PRSPs?




      Water
      Policy                                        34
      Programme
      Strengthening Incorporation of Water Priorities
                   under PRSPs/CSPs

                    Recall of Workshop Questions
- How may the water sector (including WSS and WRM)
  support strengthening of PRSPs, to further water-related
  poverty reduction objectives?

- What opportunities are there for advocacy/policy work
  relating to ongoing PRSP/CSP processes?

- Actions, next steps…




        Water
        Policy                                               35
        Programme
          Why has Water not been better Represented
                     in PRSPs to-date?

•   Institutional dispersion: water sector often fragmented, with several
    institutions whose roles/responsibilities are unclear or overlapping;

•   Weak sector stakeholders: in terms of capacity, individually or collectively,
    to identify and advocate policy reforms;

•   Donor dependence: in many low-income countries, historic high level of
    donor funding for water sector (50-90%); = less incentive to engage &
    actual engagement by water ministries and local government in
    budget/public expenditure processes;

•   Weak inter-sectoral links: water sector inactive/ineffective in promoting
    “knock-on” benefits of water-related investments in other sectors (eg.
    health/education);

•   Failure to link WSS & WRM to development and growth: as above
    PRSP analysis suggests, water sector needs to better link water-related
    actions/activities to economic growth & development.


            Water
            Policy                                                                  36
            Programme
                            Making the Case for Water
•   Integrated water strategies: one document for clear, well-presented water case in
    each country, presenting unified proposals, supported with examples of best practice,
    and financially sound/sustainable mechanisms for implementing actions

•   Water “Audit”: drive IWRM strategy based on water audit, identifying/recording
    where/when water resources are available, their allocation & distribution amongst
    different sectors/user-types, and “mapping” institutions’ roles/responsibilities

•   Economic and development contribution: since growth-based strategies constitute
    major PRSP element, alongside measures for social protection, water sector needs to
    further study and better articulate economic & development benefits of investment in
    WSS & WRM

•   Value of Capacity-building: chronic lack of capacity at local level; the water sector
    (WSS & WRM) offers great opportunities for decentralised capacity-building with
    benefits both within and beyond water-related agencies

•   Public participation in local and national planning processes: water is commonly
    recognized as a priority issue at local level, so key to strengthen local participation in
    policy processes

•   M&E: devise simple & clear performance indicators to guide targeting of water-related
    interventions and to track their links to, and impacts upon, other anti-poverty measures.

              Water
              Policy                                                                             37
              Programme
  What opportunities are there for advocacy/policy work
       relating to ongoing PRSP/CSP processes?
                      International
Products:
- Scorecard; Water initiatives critique; NGO case studies; WWF/ODI
      PRSP and CSPs study
- Position summary (including a joint position, covering both WSS and
      WRM issues) for input into policy “windows”:-
     (i) CSD 12 (April 2004 and 2005); (ii) Cotonou Mid-Term Review;
     (iii) WB-IMF PRSPs Review in 2005.
- Use indicators as drivers via UN JMP on MDGs (WaterAid on working
      group)
- Use Irish-Dutch-UK Presidencies of the EU.

Messages:
- MDG-PRSP inconsistencies
- Diminishing aid levels
- Poor targeting of resources in-country.

         Water
         Policy                                                         38
         Programme
  What opportunities are there for advocacy/policy work
       relating to ongoing PRSP/CSP processes?
                         National

- Use PRSP research to target countries
  eg. use IWG’s priority countries assessment: choose several countries
  of common interest to target for PRSP policy/advocacy work, where
  either the PRSP still to be prepared, or where PRSP review scheduled

- Explore joint NGO capacity-building in recipient nations
  (eg. WWF-UK and WaterAid)

- Work with key donor country agencies (eg. Nordics, UK): present the
  Water & PRSPs assessments to them

- Case Study of WRM resource flows to match WaterAid’s WSS
  resource flow studies (results of latter due by end March 2004)?

          Water
          Policy                                                          39
          Programme
       Strengthening Incorporation of Water Priorities
                    under PRSPs/CSPs


Other possible actions:-

-   Development of an environmental sustainability “snapshot” (to
    complement WaterAid’s on social/financial sustainability.)

-   Joint fieldwork to pilot and demonstrate, at local/district level,
    multiplier effects of water investments on food security, production,
    health, education etc.

-   Further study of productivity benefits and opportunity cost in
    poor rural communities of water investments (eg. time-management
    dilemmas around fetching/carrying water versus time in eg. fields )



          Water
          Policy                                                            40
          Programme
  WATER, POVERTY & DEVELOPMENT


• THANK YOU




    Water
    Policy                       41
    Programme

								
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