Johannesburg March 17-20, 2009 Sadedin Limani1 DEVELOPMENT OF EXTRA-GOVERNMENTAL AND INDEPENDENT...

Johannesburg March 17-20, Johannesburg March 17-20, 20092009

Sadedin LimaniSadedin Limani 11

DEVELOPMENT OF EXTRA-GOVERNMENTAL AND INDEPENDENT RELIABLE M&E SYSTEMS

Sadedin LimaniFreelance, Albania

The development of extra-governmental and independent The development of extra-governmental and independent reliable M&E systems is already done a real need with reliable M&E systems is already done a real need with respect of right and effective implementation of Paris respect of right and effective implementation of Paris Declaration and Accra Agenda for Action in Developing Declaration and Accra Agenda for Action in Developing Countries. Countries. The paper aims to argue the usefulness of extra-The paper aims to argue the usefulness of extra-governmental organization and independent monitors as governmental organization and independent monitors as legal or physical subjects regarding the monitoring and legal or physical subjects regarding the monitoring and evaluation of development programs and strategies evaluation of development programs and strategies financed by state budget and donors and also present some financed by state budget and donors and also present some examples experienced in Albania with respect of efforts examples experienced in Albania with respect of efforts made in infrastructure project implementation field.made in infrastructure project implementation field.Throughout facts is tried to argue the need for establishing Throughout facts is tried to argue the need for establishing of a legal framework in country level as well as in of a legal framework in country level as well as in international level.international level.



Why is needed the reforming process of the Why is needed the reforming process of the international aid delivering and management?international aid delivering and management?

Such a reform has been declared at the meeting ofSuch a reform has been declared at the meeting ofHigh Level Forum of Paris and is also enshrined inHigh Level Forum of Paris and is also enshrined inthe Paris Declaration, looking at the accelerating ofthe Paris Declaration, looking at the accelerating ofMDGs achieving process. By such a measure isMDGs achieving process. By such a measure isexpected;expected;

reducing povertyreducing povertyreducing inequalityreducing inequalityincreasing growthincreasing growthincreasing building capacityincreasing building capacityaccelerating the process in its integrityaccelerating the process in its integrity



How should be reformed and in which way should be improved the process?

11 Strategies Strategies Strengthening country Strengthening country

strategiesstrategies

22 Alignment Alignment Increase alignment of aid with Increase alignment of aid with

partner country’s prioritiespartner country’s priorities

33 Accountability Accountability Donors and partner countries Donors and partner countries will respect the accountability to will respect the accountability to their citizens and parliaments for their citizens and parliaments for their development policiestheir development policies

44 Rationalizing Rationalizing Make aid as cost-effective as Make aid as cost-effective as possible possible

55 Measures Measures &Standards &Standards

Defining measurement and Defining measurement and standards of performance of all standards of performance of all actionsactions



Isn’t it the Paris Declaration an integral process?

Principles Indicators and targets for 2010

1 Ownership 1. Partners have operational development strategies

2 Alignment

2.Relible country system (good practices and reform programs), half of partner countries,

3.Aid flows are aligned on national priorities (halve the gap with at least 85% reported budget)

4.Strenghen capacity by coordinated support (50% of technical cooperation flows are implemented through coordinated programs with country strategies,)

5a.Use of country public financial management systems (good practices and reform programs)

5b. use of country procurement systems (good practices and reform programs)

6. Strengthen capacity by avoiding parallel implementation structures (reduce two-thirds of % of aid)

7.Aid is more predictable Halve the gap of aid not disbursed within the year scheduled

8. Aid is untied. Percent of bilateral aid that is untied (continued progress over time)

3 Harmonization

9. Use of common arrangements of procedures (66% of aid flows are provided in the context of program based approaches)

10. Encourage shared analysis (40% of donor missions to the field are joint, 66%of country analytic work is joint.

4 MfDR 11. Result oriented framework (reduce the gap by one third-of countries

5 Accountability 12. Mutual accountability (all partner countries have assessment reviews in place)



Not Only Money – Efficiency the FirstNot Only Money – Efficiency the First The scheme below present the integral mechanism of the development process based on The scheme below present the integral mechanism of the development process based on

the concept of efficiency of funds management. Based on the much known physicalthe concept of efficiency of funds management. Based on the much known physical

concept of the efficiency, the effectiveness of funds use could be presented concept of the efficiency, the effectiveness of funds use could be presented

schematically by borrowing its formulas.schematically by borrowing its formulas.



What does it mean an integral process?What does it mean an integral process? That means that each factor of performance That means that each factor of performance (principles as ownership, harmonization, etc, (principles as ownership, harmonization, etc, indicator or sub indicator) has its own weight and indicator or sub indicator) has its own weight and influence. If we give a certain numeric value, by influence. If we give a certain numeric value, by quantifying them, then the resulting performance quantifying them, then the resulting performance should be presented as a product of all of them, should be presented as a product of all of them, as in the formula as in the formula ((ηηgg = = ηη11**ηη22*……..*……..ηηnn)).. So we can not So we can not realize the ownership principle without respecting realize the ownership principle without respecting standards put in partnership agreement, without standards put in partnership agreement, without respecting mutual accountability, alignment, and respecting mutual accountability, alignment, and without respecting measures which are parts of without respecting measures which are parts of bilateral or multilateral agreements. bilateral or multilateral agreements. Anyway this is only a schematic presentation that Anyway this is only a schematic presentation that serves to make clearer the respective influence of serves to make clearer the respective influence of each factor, because the development process each factor, because the development process scientifically is much more complicated and scientifically is much more complicated and follows its own laws.follows its own laws.



The development vision of Albania is to become a country with high living standards, which is integrated in the European and Euro-Atlantic structures, is democratic and guarantees the fundamental human rights and liberties. However we can say that Albania is yet in period of transition.

Albania has a great development potential, which derives from its geographical position, rich natural resources as minerals, water and other renewable energetically sources, a large seaside area (coastline 362 km), human resources and a large support from the international factor in the way of its development.Over a third of the territory of Albania – about a million hectares (2.5 million acres) – is forested and the country is very rich in flora. Proximity to European markets and favorable climate conditions are positive factors for the agricultural sector. Becoming part of international transport corridors will raise the importance of the country in the development of regional trade. Albania is also an attractive tourist destination as a result of its natural beauty and rich cultural heritage.



Social and economic situation in Albania at the beginning of democratic process ‘90

What’s the Poverty?What’s the Poverty?

The breaking of such a vicious circle has been made possibleby donors’ intervention.

Poverty Scheme

Poverty Small investments

Small effectiveness

Little food

Small education

Small productivity

Small production

Small profit



Stories about development(Choose the third one without corruption)

- What’s that? - That’s the scheme of

poverty. - Why are you so said? - Because we are poor. - That’s fine. Excellent

life, you are quit equal. You only need to redistribute your incomes.

- Do we remain than poor again?

- Sure, but you will not have any more rich people. Isn’t that fine?

First story: Communism’s solution

Second story: Get troubles

- What’s that? - That’s the scheme of

poverty. - Why are you so said? - Because we are poor. - That’s fine. It’s the time

to get troubles, make a rebellion or something as social eruption. The poor can profit by that?

- For how long? - What a question. Do it

first than look again what to do further.

Prepared by S. Limani

Third story: Get help from developed countries

- What’s that? - That’s the scheme of poverty. - Why are you so said? - Because we are poor. - That’s not a problem. You need help. There is a

solution. The international aid of developed countries. - Yes, but there are a lot of difficult things to be

completed. - Surely, you have to respect all of them especially you

need to fight corruption. Not so much difficult if you have a good will.

- What’s a good will? –asked the one his poor friend. - How to say, there is something as getting firstly rich

we both and then fight corruption of the others. - Aren’t we then corrupted persons? - Not at all! - Why? How could be possible? - Yes, because we get power. Isn’t it? - Do the developed understand? - How to say?! This is a challenge of the good will.



In total the Foreign Aid 5,3 billion Euro; 64% In total the Foreign Aid 5,3 billion Euro; 64% Grants, 24% Soft Loan, others CommercialGrants, 24% Soft Loan, others Commercial

Total Foreign Aid

Concession Loan

Grants

Non Concession credits



Albania and MDGs targets related to the Albania and MDGs targets related to the poverty and governance:poverty and governance:

Within a relative short period Albania has reached a considerable increase of GDP, from less than 200 US$ per capita at the beginning of democracy period of years 90, the figure of GDP reported officially in 2008, was 2960 US$ per capita. The high level of poverty evidences the fact of disproportional distribution of national incomes. As a result, based on data given by World Banc Evaluation Reports and Common Country Assessment prepared by UNDP, Albania doesn’t match the MDGs targets, which previous the eradication of extreme poverty and hunger and other dimensions of poverty as well as those of governance.



Albania and MDGs targets related to Albania and MDGs targets related to the poverty and governance:the poverty and governance:

Indicator Source 2002 2005 2010 2015 EU avg Absolute poverty headcount rate (%) LSMS 25.4 18.5 ---- 13 ---- Extreme poverty headcount rate (%) LSMS 4.7 3.5 ---- 0 ---- Unemployment rate (%) INSTAT 15.8 14.1 ---- 10 ---- Government effectiveness WBI 36.8 35.9 57.7 76 90.3 Rule of law WBI 16.8 21.2 56.5 74 89.3 Control of corruption WBI 23 27.6 54.7 73 89.



The main strategic priorities of Albania for the The main strategic priorities of Albania for the futurefuture

1. Integrate the country into the European 1. Integrate the country into the European Union and NATO.Union and NATO.2. Develop and consolidate the democratic 2. Develop and consolidate the democratic state, based on the fundamental liberties state, based on the fundamental liberties and rights of individuals. Exercise good and rights of individuals. Exercise good governance, fight corruption and other governance, fight corruption and other negative phenomena that obstruct the negative phenomena that obstruct the development and integration of the country, development and integration of the country, and guarantee the functioning of the rule of and guarantee the functioning of the rule of law. law. 3. Achieve rapid, balanced and sustainable 3. Achieve rapid, balanced and sustainable economic, social and human development.economic, social and human development.



Achieve rapid, balanced and sustainable Achieve rapid, balanced and sustainable economic, social and human developmenteconomic, social and human development

The transport The transport infrastructure, in particular road transport, will be infrastructure, in particular road transport, will be improved and will enable the creation of an integrated economic improved and will enable the creation of an integrated economic space space The energy The energy system will be developed based on market principles. system will be developed based on market principles. The capacity to produce energy will increase aiming to cover the The capacity to produce energy will increase aiming to cover the aggregate demand for energy at a minimal social and aggregate demand for energy at a minimal social and environmental cost. environmental cost. The water supply and sanitation The water supply and sanitation sector will be developed sector will be developed according to European Union standards; to improve living according to European Union standards; to improve living conditions, conserve the environment, and develop the economy conditions, conserve the environment, and develop the economy in a sustainable manner. By 2013, the share of the population in a sustainable manner. By 2013, the share of the population covered by the following services will be: (a) 95% for water covered by the following services will be: (a) 95% for water supply; (b) 83% for sewerage; and (c) 45% for wastewater supply; (b) 83% for sewerage; and (c) 45% for wastewater treatment.treatment.The spatial planningThe spatial planning will be implemented by introducing a new, will be implemented by introducing a new, comprehensive and integrated model, which will guarantee comprehensive and integrated model, which will guarantee management and control over the territory. management and control over the territory. The regionalThe regional developmentdevelopment will be based in an integrated and will be based in an integrated and coherent policy, which will be implemented aiming to achieve coherent policy, which will be implemented aiming to achieve balanced and to reduce inequalities between regions.balanced and to reduce inequalities between regions.



An efficient monitoring and evaluation An efficient monitoring and evaluation

country system isn’t yet in place.country system isn’t yet in place. However the NSDI present a good concept of monitoring process, whichformally involves also the enhancing of transparency, accountability, etc., in reality the process doesn’t follow the principles of the International AidManagement Approach. The 45 indicators presented in the NSDI, serve mainly to the high level authorities and refer to macro level, which doesn’t allow to now really the situation of the specific sectors. That comes because the structures of institutions aren’t yet organized in such an appropriate manner and are not good performed that could them allow managing, monitoring and evaluating properly the policies designed. Besides that,among others is noticed:

Data aren’t available for a large public or community.Problems are evidenced only after the blasting of scandals, emergency situations, etc.Ex-ante and ex-post analyses aren’t yet applicable for large information of public.The information of the civil society is mainly a success-based approach then a problematic one, which could help the increasing of public awareness regarding to a given situation.



A general view of situation regarding to A general view of situation regarding to

projects implementation of infrastructureprojects implementation of infrastructure Energy Sector: 8 projects started within the period 2002-2006 of a value about 230 million Euros, have incurred delays from 1-3 years, in specific cases even more.Road Sector: From 4 projects to be started within the period 2006-2008, with a value of 180 million Euros, two of them didn’t started yet. The one with a delay of two years and the other is going to be delayed much more, because of the reasons described below of this presentation.Public Works Sector: Water and Urban Development projects, started within the period 2004-2007 by a value of about 73 million Euros, are not respecting the end date. Delays are calculated at least 1-2 years.



Progress of the Water and Urban Progress of the Water and Urban Development ProjectsDevelopment Projects

Erogazioni 2000-2007

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

13.453.17521.803.051

17.541.904 25.498.728

23.706.679

34.498.536

21.024.846

18.528.846

0

5.000.000

10.000.000

15.000.000

20.000.000

25.000.000

30.000.000

35.000.000

40.000.000

1 2 3 4 5 6 7 8




Capacità di spesa e disponobilità di finanziamenti esteri

167.357.345

192.631.827

219.843.765

0

50.000.000

100.000.000

150.000.000

200.000.000

250.000.000

2005 2006 2007

Dis

poni

bili,

Ero

gati

Disponibili

Erogati34.498.536

21.024.062 18.528.846




Performance

219.843.765

192.631.827167.357.345

0

50.000.000

100.000.000

150.000.000

200.000.000

250.000.000

2005 2006 2007

Anni

Fo

nd

i D

isp

on

ibili

Disponibili

Performance21%

11%8%



Results of analyses that caused the Results of analyses that caused the delays of projects’ implementation:delays of projects’ implementation:

The reasons of projects’ implementation delaysThe reasons of projects’ implementation delayshave to be looked at the barriers created by lowhave to be looked at the barriers created by lowmanagement capacities of domestic structures as management capacities of domestic structures as follow:follow:

Barriers of institutional, legal and administrative Barriers of institutional, legal and administrative character,character,Barriers caused by a slow or very slow reforming Barriers caused by a slow or very slow reforming process,process,Slow proceeding of procurement procedures, by Slow proceeding of procurement procedures, by donors as well by domestic structures,donors as well by domestic structures,Low quality of studies, especially of feasibility Low quality of studies, especially of feasibility studies and low quality of technical designs.studies and low quality of technical designs.



Paris Declaration and the Project Paris Declaration and the Project Implementation StructuresImplementation Structures

The reforming process of units in avoiding parallel structures financed by different donors, in increasing the performance and capabilities of them during project implementation phase, looks to be misinterpreted or worse is found the case for getting political profits or advantages. A lot of directors have been dismissed; the procedures of reporting, payments, project management and monitoring did more complicate. It was clear to reveal that the most interested factor was getting in hand ore having under a strong political supervision the procurement procedures.

Some finished procedures after the publication of the winner, besides that it was declared also by domestic authorities or their evaluation commissions have been claimed by, some times, ridiculous reasons (World Banc Projects, Italian Cooperation etc.).



Paris Declaration and the Water Strategies

The preparation of Water Supply and Sewage Strategy didn’t follow the approach proposed by Paris Declaration principles. A formal meeting has been called to justify the consultation procedures with donors. Being weakly and hurriedly (hastily) prepared, the donors representative presented a lot of essential comments, which didn’t reflected correctly. The rural areas aren’t yet within a specialized structure of services that belong to the water supply and sewerage systems. As a result the investments aren’t properly supervised and monitored. The investments’ planning is following the old approach, based on the political outputs. As a result is difficult to tell the efficiency of the investments, missing a specialized structure proposed at the old Rural Strategy prepared with the support of the World Banc. There is a tendency that the Central Government exercise the competencies of defining priorities of investments within the water sector, while formally is defined clearly by decentralization law of local power that such a duty belong to the local authorities.



The consequences of slow adoption of Paris Declaration principles with respect of strategies and

project implementationAlbania has passed and is yet in very big difficulties of electrical energy supplying system, transmission and distribution network, because of slow implementation of respective projects. As a result many businesses have depressed (in the period of limited energy supplying) their activities and large areas have suffered the electrical energy missing.The slowness of road projects was reflected at the tourism sector, trade, transport etc. The increasing of access of vulnerable strata of population and also of the rural areas at the water services isn’t yet at the desired level because of slow implementation of projects. This has influenced directly also at the seaside area. Some very important projects related to the Treatment Plants and Water Supply didn’t match the schedule time previewed. All this factors bring to the increasing cost of life, which has as consequence the further polarization of the society.



The putting in place of a clear legal framework regarding to M&E is already done an immediate

alternativeA right legal framework on establishment of an efficient and effective monitoring and evaluation system would regulate the responsibilities and tasks of respective institutions, respective different groups of interests and also would facilitate the donors’ support and their activities and would normalize the process of projects implementation.The right implementation of the Paris Declaration and Accra Agenda request a new approach and methodology related to monitoring and evaluation, in doing them legally more obligatory. Such obligation derives by the large and direct impact of projects’ implementation on poverty reduction and economic development of the country, as the scheme on above slides is shown. The legal framework of such an initiative should comprise among others, legal issues, standard issues related to performing of monitoring and evaluation process, technical issues of implementation and other things to be defined by actors involved.



The legal frame work should consider the:Institutionalization of the monitoring and evaluation procedures,Private initiative of different organization or individuals that are interested to exercise such an activity,The legal obligation with respect of professionalism and accuracy of data and they elaboration,Legal interdependence between institutions,The legal obligations of defined state structure which are occupied with policies and strategies designing, project implementation etc, for providing data,The approaches and standards to be used and to be respected during the exercising of the activities of monitoring and evaluation,The Unit would be guided by Aid Effectiveness Principles based on the MfDR approach,Reporting period, formats of reports and other documents should be well defined by the legal framework,Etc to be defined after that the initiative has started.



New extra-governmental or independent New extra-governmental or independent institution should be defined and createdinstitution should be defined and created

For such an initiative would be For such an initiative would be considered the experience already considered the experience already known in Albania by the former UNDP known in Albania by the former UNDP project (2001) and pushed further by the project (2001) and pushed further by the USAID support.USAID support.With respect of implementation the With respect of implementation the above mentioned idea, could be created above mentioned idea, could be created the National Institute for Monitoring and the National Institute for Monitoring and Evaluation for Country Development and Evaluation for Country Development and Poverty Reduction or any similar other Poverty Reduction or any similar other Unit or Institution.Unit or Institution.



International contribution would be very fruitful In leaning of national processes related to monitoring and evaluation activities performing in the developing countries, an international initiative, in compiling of an international convent with respect of obligatory implementation of monitoring and evaluation rules and approaches, taken by Independent Associations, as for example IDEAS or any Consortium of different international association, would be a good support for achieving the development results. It is easily evidenced that the states react better and with more awareness and responsibilities regarding to international convents. Such a convent should be born and leaned over the experience, documents, declarations or approaches up to know declared and approved solemnly by all participants of meetings regarding to the International Aid Effectiveness.Such initiative is fully justified and derives directly from the right of the beneficiaries to be informed in the right time, correctly and in all phases of the project designing, approval, implementation and impact evaluation. There are namely the taxpayer that should pay all loans and credits, there is also namely for them given all assistance by credits, for their life improving and not for governments. The reports should be publicly published and largely delivered.



- Country System is the first option

- Additional measures to strengthen country system rather than undermine it.

- Donors offer 66% of aid as program based approaches

A. Strengthening Country Ownership Development

Strengthen Capacities to Lead Management

- Parliament’s role and local authorities in implementing and monitoring policies

- Policies and programs will be designed and implemented respecting international commitments

Strengthen & Use Development Country System

Broaden Policy Dialog on Development

- Strong Institutions - Strong Systems - Strong local expertise

1

2

3

B. Building more effective & inclusive Partnership for Development

- Respecting country priorities - Good practice on country-led

division of labor - Start dialog on international

countries level - Not insufficient aid

Reduce fragmentation of aid

Increase Aid Value for money

Work with all development actors

Engagement of civil society

Adapt policies for fragile countries

- Untie the aid to the maximum extent possible

- Preparation of individual plans - Promote local procurement by

respecting transport and regional firms

- Urging south-south cooperation and triangular cooperation

- Improve coordination of CSO (Civil Society Organization)

- Improve coordination of CSO with government program

- Enhance CSO-s Accountability

- Increasing capacities of governance,

- Achieving peace and state objectives

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C. Delivering &Accounting for Development Results

Delivering Results

More accountable and transparent for results

Change Conditionality of Ownership

Broaden Policy Dialog on Development

- Strengthen the quality of policy design, assessment, improving information system.

- Develop cost-effective results management to asses the impact of policies and adjust them

- Monitoring of policies performance - Incentives to improve aid effectiveness - Address legal or administrative impediments

to implement international commitments on aid effectiveness

- Delegating sufficient authority to country offices

- More transparent aid and facilitate parliamentary oversight in public management

- Mutual assessment review ( Donor-Country)

- Fight corruption by investigation, legal redress account and transparency

- Conditionality will be based on implementation national development strategies

- Make public all conditions - Increasing emphases on harmonized

results-based conditionality

- Better linkage between expenditures and results over medium term.

- Further improving the medium-term predictability of aid including tools to measure it.

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Accra Agenda for Action Operation Scheme

If the Paris Declaration of Aid Effectiveness offers the reforms and the way to achieve results based on good approaches, Accra Agenda offers the possibilities on how to act in accelerating the development progress. Accra Agenda reveals and learns:1. We are making progress but not enough. Yet the pace of progress is to slaw.2. Further reforms and faster actions are needed.3. Aid is only one part of the development picture.4. Democracy, economic growth, social progress and care for the environment are the prime engines of development of all countries



Not Only Money – Efficiency the FirstNot Only Money – Efficiency the First

Do not forget!Do not forget!

Thanks!Thanks!

Johannesburg March 17-20, 2009 Sadedin Limani1 DEVELOPMENT OF EXTRA-GOVERNMENTAL AND INDEPENDENT...

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