2. NRE context in Ghana
NRE policy trade-offs - underestimated consequences
Government’s own Strategic Env Assessment neglected
6% growth - agriculture & private sector key
Environmental degradation counts for 10% GDP loss
Constraints on growth prospects
Rethink policy dialogue & operational support to NRE
Inconsistent consideration of NRE in-country
Shift to budget support, harmonisation &
alignment; country priorities & systems
Disengagement from NRE policy support
NRE marginal to "on-budget" support,
aid instruments & development policy
3. 3 year NRE process & dialogue
Country environmental analysis & analytical gap-filling
• Language from stated GPRS II priorities
• Ministry of Finance to centre stage, workshops
• NRE back to machinery of Government
In-country dialogue
• Sector group, Consultative Group meetings
• Triggers for financing of forestry in general budget support
• Need for NRE engagement beyond general budget support
Cross-cutting priority in
Joint Assistance Strategy
• 14 donors
• 90% of ODA flows to Ghana
4. Country Environmental Analysis
history
2006: Country Env Analysis with France, NL & DFID
– Underlying causes of depletion/degradation in 4
sectors underpinning economic growth in Ghana
• Forestry & wildlife, agricultural soils, mining, urban
environment
• policy/institutional/public expenditure analyses
– Policy/ institutional/ management recommendations
– Environmental health effects related to
water & air pollution
2005: Economic & Sector Work (WB,DFID) on NR
Management & Growth Sustainability
forestry, wildlife, agricultural soils, lake Volta, coastal
fisheries
5. NRs = Ghana’s golden goose
Need stewardship for long-term growth
1.57
0.56
0.27
3.49
0.16
2.1
1.4
0.35
0
1
2
3
4
Agriculture Wildlife Fisheries Forests Lake Volta Air
Pollution
(outdoor )
Air
Pollution
(indoor)
Water
Supply,
Sanitation
and
Hygiene
MeanEstimate(percentageofGDP)
• NRs = 15% GDP
• NRs = 25% Govt revenues
• Substantial source of
livelihoods
• Loss of NR stocks &
degradation of urban
environment cost
approximately 10% GDP
• Reducing potential growth
by 1% each year
6. Donor
Donor
Donor
Donor
Ghana Partnership Strategy
Joint Assistance Strategy
Multi-Donor (General)
Budget Support
Prog Prog Prog
Development Partners & GPS coordination
Government & donor alignment
New aid architecture
Growth & Poverty Reduction Strategy II
7. Ghana - initial constraints
Institutional capacity
• Effectiveness of NRE country systems &
processes to address development agenda
Analytical work on NRE
• Scarcity of analytical work to make economic case
for NRE
• Scarcity of institututional or expenditure analyses
8. Evolution of Ghana dialogue
Country Environmental Analysis
– Technical expertise, mission mode
– National & international consultancy
– Anchored in ENR sector group
– Drew on long-term institutional memories
– Coalition around economic impacts, links to GPRS II
agenda of public financial management & governance
NRE Governance Programme
– Rent-seeking sectors (forestry, mining) + environment
– Artisanal issues, civil society, climate change
– Cross-Government working, with Finance at centre
– Multiple development partners
9. Sector programmes - SBS/SWAp
5 typical elements
Sector policy
in macro-framework
Public finance
management
Accountability &
performance
monitoring
Institutions &
capacities
Aid alignment and
harmonisation
Services &
enabling
environment
www.train4dev.net
10. Government
leads..
SBS/SWAp harmonisation & alignment
The ideal….
Donor2
Donor 3
Based on assumptions:
• Trust & personal ties
• Joint objectives or shared
cause
• Loyalty towards the country
group
• Everybody has a voice
•Once you are in, you stay in
www.train4dev.net
11. NREG preparation process
(not linear)
Government of Ghana
Development Partners
Missions,
virtual
networks
NREG
task team
Ghana Poverty & Reduction Strategy II
Ghana Joint Assistance Strategy
Policy Dialogue – General Budget Support
Analytical work
NREG
Ministries &
Agencies
Civil society
Policy
matrices
Finance
(MoFEP)
High level
committee
Budgets &
fund flows
ENR Sector
group
13. Paris linkages I - links
NREG leverage of other (vertical) financing
– Forestry (EC Voluntary Partnership Agreement on
timber trade)
– Minerals (EITI, artisanal issues, revenues – oil & gas?)
– Environment (SEA, climate change, intersectoral
dialogue)
– Complementary civil society & accountability facility
Central elements
– Anchored in sector dialogue & issues
– Public financial management focus – revenues &
financial flows
– Overarching platform for dialogue – tripartite
– Consolidate on use of SEA in national planning &
GPRS III
14. Paris linkages II – country-focus
Ownership
– Letter of Development Policy - statement of Govt priorities
– Finance coordinating inputs by line Ministries
– Medium-Term Expenditure Frameworks & financial flows
– Nat’ Dev’ Plan’ Commission guidance on sectoral planning
Alignment & harmonisation
– Single set of indicators, set by line Ministries & Agencies
– Finance commissioning related studies using country
procurement mechanisms
– Multi-year budget commitment, annual assessments
– Flexibility in evolving indicators & targets
– Reinforcing country sectoral & national planning & systems,
including SEA, PSIA, public financial management
15. Paris linkages III – challenges
National institutions
• Function separation & mandate clarity
• Weak strategic planning, M&E
National funding
• Fragmentation of budgets, lack of ‘‘openness’’,
available budget resources
• Lack of engagement with national budget
processes due internally generated funds
• Inconsistencies in financial reporting &
administration / audit
• Accountability of NRE expenditure & flows
(Parliament, Finance, civil society)
16. Paris linkages IV - challenges
High transactions & quality costs in set-up
• for both Government & development partners
• Bringing NRE agencies to speed with aid instruments
• Policy matrices & indicators – sector plans vs dialogue
• “Matrix fatigue” & “guided ownership”
• Civil society engagement sensitive
Harmonisation & alignment
• Incoherence in donor positions & practice & Paris
principles, esp. environmental assessment
• Donor procedures differ, only some flexibility
• Joint conclusions from joint assessments?
• Reconciling HQs with in-country offices & processes
17. Government
leads..
SWAp/SBS … occasional reality
Donor 3
May also be:
• Multiple objectives,
not always shared
• Distrust & rotation
• Loyalty towards HQ
& patrons
• Some have bigger
voices than others
•Suddenly you go
HQ and
hinterland
HQ and
hinterland
HQ and
hinterland
HQ and
hinterland
HQ and
hinterland
NGOs
www.train4dev.net
NGOs
18. Paris linkages V - reflections
Harmonisation & alignment
• Active sector group dialogue key
• General budget support useful for existing policies,
not reform
• Linkage to general budget support dialogue
problematical – need focus
• Anchor in dedicated staff & in-country processes
Capacity
• Local NRE targets & M&E focus, capacity
• Capacity for cross-sectoral policy coherence
• Division of labour – NRE expertise can disappear
• Multi-stakeholder dialogue & accountability
20. Typical challenges in SWAp/SBS
For donors
– take the back seat
– recognise own limited capacity to understand
& deal with complexity
– accept that ownership is more important than
perfection
– curb disbursement & visibility pressure
– patience
21. Typical challenges in SWAp/SBS
For governments
– open books & embrace dialogue – also on
sensitive issues
– build additional order in own house
– get results on the agenda, curbing patron-
client relations
– patience
22. Joint challenges in SWAp/SBS
• Initially higher transaction costs
• Get a critical mass of development
partners & sectors aboard
• Balance quick results with long term
capacity development
• Take decentralisation & reality outside
capital into account
23. Considerations for sector budget support
• In principle, most completely aligned modality
• Requires ‘adequate’ PFM
• May undermine PRS and wider coherence
• Fear of mismanagement
• Excessive donor focus on PFM
• Dialogue on policies & medium term outcomes,
losing touch with ground realities
• May add inputs without addressing capacity
constraints
• Longer term sustainability
24. Ghana - donor coordination on NRE
• 2001 Coordination
– on project basis around NR Management Programme
– not strong, focus on disbursement
– differing project requirements
• 2004 Sector group started
– information exchange
• 2005 Economic & Sector Work
– discussion at different level
– economic case, not " protection"
• 2006-7 Country Environmental Analysis
– platform for dialogue during workshops
• 2007-8+ NRE Governance sector budget support
25. Environmental degradation = ½ of ODA
2003-4 rates
1 8 0
3 0
1 1 5
1 3 5
2 7 0
0
5 0
1 0 0
1 5 0
2 0 0
2 5 0
3 0 0
Water &
Sanitation
O utdoor air
pollution
I ndoor air
pollution
A gric ultural
Land
T imber
MillionsUS$
26. NREG objectives (2007-2009/’13)
Sub-sector Policy objectives
Environment • Improve cross-sectoral environmental management,
including climate change response
• Apply SEA to inform decision-making & mainstream
environment in sectors
• Improved EIA processes & compliance
Forestry &
wildlife
• Ensure effective law enforcement (trade agreement)
• Ensure predictable & sustainable financing of the forest
& wildlife sectors
Mining • Address social issues in mining communities
• Enhanced policy & regulatory framework & effective
coordination among key government agencies
• Improve mining sector revenue collection, management,
& transparency
