Post on 26-Dec-2015
AN INTRODUCTION
Country Systems
Outline
1. What are Country Systems? 2. What does it mean to use country
systems?3. Why does the ‘use of country
systems’ matter: what are the benefits and risks?
4. How do external partners use country systems?
5. What are current commitments on country systems?
What are country systems
Definition from Development Cooperation:
“National arrangements and procedures for public financial management, accounting, auditing, procurement, results frameworks and monitoring” (Paris Declaration Definition, 2005)
Core National Procedures
Planning
Budget
Treasury
ProcurementAccounting
Auditing
Accountability &
Reporting
Broadening the definition
Of country
‘Whole of Society’ approach to the definition of country systems, including local CSOs and private sector (USAID, 2013)
Of systems
Policy cycle from design to implementation, to evaluation or accountability measures (ODI, 2013)
What does it mean to use country systems?
Why does it Matter? Benefits of using country systems
Shift focus towards strengthening a country’s own systems instead of parallel ones
Reduces duplication and transaction costs Improves ownership over results of financing Ensures the sustainable management of resources in the
futureStrengthen transparency and domestic accountability
over public resources more generally
Risks of using country systems
Political: external funders may lose control over strategic objectives
Programmatic: results may be too slowInstitutional: weaknesses in domestic controlsEnvironmental: poor regulations to mitigate negative
effectsFiduciary: funds are not used for intended purposes
Lessons From Health…
Source; Don De Savigny & COHRED
What evidence do we have of external partners using country systems?
Examples from Development Cooperation:
48% of donor funds Use country PFM systems in 2010 (target 55%) 43% of donor funds recorded in government accounting systems
(target 75%) Fiduciary risk trumps development risk in decision
to UCS But increasingly, country led development of strategies for UCS Partner country leadership in the decision to
Use Country Systems crucial Use not just linked to specific aid modality Not an end in itself Political economy impacts on decision to use country systems
Tanza
nia
Ethio
pia
Mal
awi
Uga
nda
Ghana
Kenya
Burki
na F
aso
Rwan
da
Moz
ambi
que
Liber
ia
Sierr
a Leo
neM
ali
Cape
Verde
Burun
di
Congo
, Dem
. Rep
.
Sao T
ome
& P
rinci
pe0
10
20
30
40
50
60
70
80
90
2005 2007 2010
Percentage of ODA managed through country public financial management systems (2005, 2007 and 2010, selected African countries)
International commitments on country systems
Busan Partnership document §19: the use of country systems should be the default approach for
development co-operation in support of activities managed by the public sector
§34: continue to support national climate change policy and planning as an integral part of development countries’ overall national development plans, and ensure that – when appropriate – these measures are financed, delivered and monitored through developing countries’ systems in a transparent manner.
New Consensus on Effective Institutions Linking use of country systems to better public service delivery Partner led assessments and evidence on Country Systems Strengthen domestic accountability institutions