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