Conceptual framework of the Aid on Budget Study CABRI

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Conceptual framework of the Aid on Budget
StudyCABRI

• 6 8 October, 2008
• Gisenyi - Rwanda

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Putting Aid on Budget Study

• 2007 CABRI and the Strategic Partnership with
  Africa (SPA) Aid on Budget Study
• Internationally accepted standards of PFM and
  international aid effectiveness commitments
• Paris Declaration and centrality of alignment for
  aid effectiveness

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Putting Aid on Budget Study cont.

• Aim - optimise country level processes for
  reflection and integration of aid flows at all
  stages of the budgeting process.
• Misconceptions to avoid
• Aid on Budget not synonymous to budget support
• Projects are not necessarily off-budget
• Putting aid on budget not a mere technical
  exercise

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Dimensions of capturing aid
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Process and Outputs
Group A Countries
Group B countries
10 Country Case Studies
Inception Report
Literature Review
International reference group

• Synthesis Report
• Good Practice Note

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Conceptual framework

• Different aid disbursement channels
• Channel 1 funds disbursed via Ministry of
  Finance
• Channel 2 funds disbursed to government, but via
  sector ministry or special project unit
• Channel 3 funds managed by donor, and government
  receives services or assets in kind
• Desired effects of aid on budget depend on
• Quality of information
• Timeliness and accessibility
• Improved processes relating to non-aid resources

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Key findings of the study

• Reporting vs. integrating aid
• Use of country systems relevant for all aid
  modalities
• Quantity vs. quality of aid integrated
• Institutional framework and incentives for use of
  country systems.

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Key findings of the study cont.

• Ensure that safeguards and compromises do not
  undermine benefits
• Strong link between partner countries' aid
  effectiveness strategies and strategies for
  strengthening PFM
• Importance of joint work by government and donors
  under government leadership.

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Rwanda Working Session

• First CABRI working session
• Strong leadership from MINECOFIN in research and
  design
• Collaboration of different stakeholders
• Peer exchange with Mozambique, South Africa,
  Tanzania and Uganda.

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Rwanda Working Session cont.

• Research Process

Phase 1 Identified gaps in reported ODA
Phase 2 Quality ODA information in the budget
process
Phase 3 Analysis of information needs and
data collection instruments
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Thank you!