System of Transparent Allocation of Resources - STAR
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System of Transparent Allocation of Resources - STAR
GEF Expanded Constituency WorkshopMarch 1 – 3, 2011
Kyiv, Ukraine
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Introduction
• Issues from GEF4 to GEF5 • GEF Council requested reforms in resource
allocation framework (RAF)
• Recipient countries requested new rules
• GEF evaluation office provided useful comments
• This presentation demonstrates how the GEF meets these new challenges
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Outlines
• What is new from GEF-4 RAF to GEF-5 STAR
• Impacts of the new things
• Overall allocations of the GEF-5
• Future development of the STAR
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What is new in the GEF-5 STAR?
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New allocation area and countries
GEF-4 RAF
• Areas: Biodiversity and Climate Change
• Country categories:• Individual and group
• LDC and SIDS in group
GEF-5 STAR
• Areas: Biodiversity, Climate Change, and Land Degradation
• Country categories:• All the countries are equal
• No group countries
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A new major component
GEF-4 RAF
• GEF Benefits Index (GBI)
• GEF Performance Index (GPI)
GEF-5 STAR
• GEF Benefits Index (GBI)
• GEF Performance Index (GPI)
Social Economic Development Index measured as GDP index (GDPI)
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New rulesGEF-4 RAF
• Caps:• 10% for BD and 15% for
CC
• Floors:• No
• Others:• 50% rule,
• Set-aside 10%
GEF-5 STAR
• Caps:• 10% for BD and LD, 11% for
CC
• Floors:• $2 mn in CC, $1.5 mn in BD,
and $0.5 in LD
• Others:• Flexibility for small countries
(90% rule), • More weight (25%) for marine
scores in GBIBD, • 5% of CC scores are from
countries’ forested areas• Set-aside 20%
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Programs not yet in the STAR
• International Waters
• Persistent Organic Pollutants and Sound Chemicals Management
• Corporate budgets
• Country Support Programme
• Regional and global projects/programs
• Small Grants Programme
• Earth Fund (private sector)
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Impact of “no group” allocation
GEF-4 RAF
• Individual countries in CC :• 50
• Individual countries in BD:• 58
• Individual countries in LD:• None
GEF-5 STAR
• Individual countries in CC :• 144
• Individual countries in BD:• 144
• Individual countries in LD:• 143
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Distribution of GEF-5 Resources
$ Million
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GEF-5 Resources to LDC and SIDS
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Initial GEF-5 STAR Allocations
GEF-4 - RAF GEF-5
$3.1B Replenishment $4.25Bn
Initial allocation STAR Envelopes (M$)
Country CC BD CC BD LD Total Flexible
Albania Group Group 2.00 1.50 0.58 4.08 Yes
Bosnia and Herzegovina Group Group 2.77 1.50 0.66 4.93 Yes
Croatia 0.00 Group 3.33 1.50 0.76 5.59 Yes
Georgia Group Group 2.00 1.50 2.05 5.55 Yes
Montenegro Group Group 2.00 1.50 0.65 4.15 Yes
Republic of Moldova Group Group 2.00 1.50 4.88 8.38 No
Serbia 0.00 Group 4.46 1.50 0.70 6.66 Yes
The former Yugoslav Republic of Macedonia Group Group 2.00 1.50 2.48 5.98 Yes
Ukraine 18.90 Group 22.46 1.50 2.99 26.94 No
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Conclusions
The GEF used new methodology and updated indicators to meet the challenges of donors and recipient countries
The new allocation system (STAR) is
1. more complete than the GEF-4 RAF
2. increasing the shares of allocation to the least developed countries
3. providing wider and more even allocations
4. ensuring small countries to have enough funds to implement at least one project in GEF-5 period
5. more transparent in resource allocations
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Next steps
• Implement the STAR
• Develop new GBI for persistent organic pollution and international waters
• Improve GBIBD, GBICC and GBILD
• Update and improve GPI and GDPI
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Thank you!