building capacity for resource mobilization

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Building Capacity for Resource Mobilization

Improving the Financial Conditions for Implementation of the Basel

Convention at the National and Regional Levels

Dr. Tom Conway

President, RFI

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Presentation Overview

1. Recalling resource mobilization studies that the Basel Convention COP has already requested

2. Reviewing key messages associated with environment-related multilateral financial mechanisms applicable to the Basel Convention

3. Understanding the concept and importance of mainstreaming waste management issues in development assistance programming

4. Identifying the typical elements of successful resource mobilization and programme/project management

5. Proposed RM capacity building next steps

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Topic 1: Studies for the COP

• “Mobilizing resources for a cleaner future: implementing the Basel Convention”

– Presented to COP 7

– Led to Decision OEWG IV/15 on Resource Mobilization

– Mobilizing Resources for a Cleaner Future responded to requests from Basel Convention Parties to enhance resources in support of implementation of the Convention. Parties raised concerns that resources available to advance Convention implementation fall far short of what is required, placing a serious constraint on their capacity

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Article 14 Study

Recommendations/options:

• Review Basel Convention Trust fund to bring it into line with requirements of the Convention

• Reorient Basel Convention Technical Cooperation Trust Fund around strategic priorities

• Maximize efforts to use current mandate of the GEF

• Approach GEF in context of GEF 5 for GEF to become a financial mechanism

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Mobilizing resources for a cleaner future

Key strategies recommended:

1. Better preparing developing and EIT Countries to request and receive assistance

2. Preparing the ground within financial institutions

3. Working with other MEAs and international institutions to advance coordinated approaches

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Strategy 1

Better preparing developing and EIT Countries

1. Life cycle ESM of wastes and SMC; is it properly articulated in country policy frameworks?

2. Promote integration of ESM of wastes and SMC into policy frameworks

3. Identify priority capacity building needs and gaps in context of global SD priorities

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Strategy 1

• Input: Consistent level of effort over the short term

• Input: Indicate anticipated level of effort in annual work plans; seek contributions from countries

• Input: Opportunities to use Regional Training Centres for training/sharing experiences

• Outcome: Improved readiness for developing and EIT Countries to engage and work effectively with international and bilateral financial aid institutions

• THIS IS WHAT WE RETURN TO TODAY

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Topic 2:Multilateral Financial Mechanisms:

Key Messages

Topic 2:Multilateral Financial Mechanisms:

Key Messages

• The studies that the COP has commissioned through the Secretariat have concluded on some basic messages about environment-related multilateral financial mechanisms

• These messages can be summarized as:

– The Convention is inadequately funded relative to the necessities of its implementation

– This shortfall is most acute at the national implementation level, and within the regional training centres charged with facilitating national implementation and regional cooperation for implementation

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Multilateral Financial Mechanisms:Key Messages


– The Conference of the Parties could take steps internal to its own financial operations to address some of these challenges via its two existing multilateral trusts funds: the Basel Convention Trust Fund (assessed contributions) and the Basel Convention Technical Cooperation Trust Fund (voluntary contributions)

– The Basel Convention, assuming adequate seed funding in its two trust funds, could also participate in partnership based, programmatic trust funds and help respond to cofinancing pressures (e.g the GEF)

– But, fundamentally, a major problem persists with the Basel Convention being orphaned from any major, predictable and sustainable multilateral financial mechanism: specifically the GEF

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• But, there are no silver bullets: a multi-faceted approach to resource mobilization and financial mechanism strengthening is needed – studies for the COP reinforce this message repeatedly

• And, that being said, understandably the GEF will receive a lot of attention because it is the largest environment-related multilateral financial mechanism

• The Basel Convention would be wrong not to seek to become more fully engaged with the GEF

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Multilateral Financial Mechanisms:The GEF


• More engagement with the GEF can take two forms:

1. Working within the GEF’s current mandate, operational programs and strategic priorities

2. Working to have the GEF designated as a financial mechanism of the Basel Convention in context of a multifaceted approach to resource mobilization just mentioned

• But, there is no getting around it - enhanced capacities for the Basel Convention Parties, the Regional Centres and the Secretariat will be needed to give these options full effect

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• Let me give you a sense of what I am talking about:

1. Because international mechanisms like the GEF fund only the incremental costs of global environmental benefits, the Convention cannot just claim global benefits, it must concisely and precisely identify where these benefits will occur and how they could be operationalized in the context of the financial mechanism (Basel’s GEF Operational Programme)

2. Because, at least initially, the Basel Convention will work with the GEF’s current mandate and focal areas, the Basel Convention must have clear plans as to how enhanced ESM of wastes will advance the strategic priorities of the existing focal areas – “Mobilizing Resource for a Cleaner Future” gave a good start to that work, but not complete

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3. There must be better cooperation between waste management experts at the national level and their GEF focal points and national officials responsible for the files covered by the GEF programme focal areas

4. There must be better coordination between Parties at the regional and global levels arguing for enhanced access to the GEF for waste management issues in the GEF Council and Assembly

5. The COP of the Basel Convention must send a strong message to the GEF Council and Assembly on its own part – likely too late for GEF 4, start now for GEF 5 , do not delay further

6. Project design, proposal preparation, and programme/project management capacities must be significantly strengthened at all levels of the Convention – access to GEF is no guarantee without quality

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Topic 3: Importance of Mainstreaming Waste Management Issues

Topic 3: Importance of Mainstreaming Waste Management Issues

• However, the previous topic having been addressed, the reality is that far more money moves to developing and CEIT countries through official development assistance than through dedicated environmental financing channels

• This will be even more the case going forward as a result of the Millennium Declaration and the Millennium Development Goals

• As more money goes to development assistance programming such as the MDGs, where does this leave waste management issues?

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Importance of Mainstreaming Waste Management Issues


• Financial pressures on donors are moving in the wrong direction from the point of view of building more or enhanced dedicated environmental funds

• The question for the Basel Convention therefore becomes: what can the Parties and the Convention at all administrative levels due to show, and consistently argue for, the links between ESM of wastes and agreed development objectives, particularly the MDGs?

• Doing this requires enhanced capacity at all levels of the Convention based on the conclusions of our assessments to-date

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• We know that there are strong links – the Convention’s studies have indicated this, as have other studies like the World Banks’ Toxics and Poverty, but concisely documenting these links clearly in a communications package and campaign, is absolutely essential – there is no shortcut

• This campaign must then be carried forward in campaigns at the national level to convince you own political leaders and policy decision makers

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• Why? – because in the context of recipient country driven official development assistance programming it is vital that waste management issues appear in the development policy documents of your countries (PRSPs, EDPRSs, Country Assistance Strategies, Country Development Programming Documents etc.)

• Waste management issues will not be prioritized in negotiations between your government’s and your development assistance partners without this mainstreaming or integration – period!

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• To do this Basel Convention representatives must have training and increase their own awareness about how development assistance planning documents are produced at the national level and how you can best influence the relevant planning processes

• Without training, it will be easy to get lost at sea in what appears to be, and is, a complex process

• The Secretariat should be assisting in this capacity building

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• For agencies of government to mainstream their priorities in the overall national planning process (i.e. the PRSP or country assistance strategy process), it is particularly important to understand the various “points of influence” in the development planning process and cycle

• Several “points of entry” in the general stages of developing a poverty reduction strategy, for example, can help focus the range of possible priorities/initiatives

• Your work must be timed right within the typical 3-5 year development planning cycle at the national and regional levels

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National Development Planning National Development Planning

National Development Priorities

and Planning Process

Monitoring Implementation

And Impact

National Development And Poverty Plan

Situation Assessment and Analysis

Implementation

Resource Allocation And Aid Coordination

Country ProgrammesAnd Projects

UNDAFCAS

Other Donors’Business

Plans

CCA

Annual PRSP Reports

MDG Reports

Source: UNDG Guidance Note to UN Country Teams

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Priorities for Growth &

Reducing Poverty

Implementation

Outcomes/Impacts

PRSP/Strategy • macro policies • governance • sector policies• costing & funding• M&E, indicators

Participation• Government• Elected Officials• Civil Society• Private Sector• External Partners

Analytical workby countries, partners

Other Development

AssistanceStrategies

CEAs & SEAsby WB & partnersData/Diagnosis

CAS

WB development assistance

strategy

Loans / Grants

COUNTRY

Existing Country Policies

etc.

Source:Environment Department World Bank

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• There is no successful resource mobilization without enhanced management capacities to administer resource mobilization activities and project design and delivery

• Much of this topic is parallel with sound management practices generally, but we need to be conscious of what to focus on and this requires training for all of us at one point or another

• It makes good sense to orchestrate such training at the regional level because some of these capacities should be maintained regionally at lower cost for the benefit of all countries of the region

Topic 4: Typical Elements of Successful Resource Mobilization

Topic 4: Typical Elements of Successful Resource Mobilization

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• But much improved capacities will also need to reside at the national level

• It is a partnership concept

• To start, it is advisable to focus on continuous improvement in key areas

– research, data gathering, management and analysis (social, economic and environmental analysis)

– policy analysis, policy design and coordination, strategic planning, interagency coordination mechanisms

– outreach and management of stakeholder relationships

Typical Elements of Successful Resource Mobilization


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– project and programme design and management

– proposal preparation in approved formats

– financial management best practices for programmes and projects

– monitoring, evaluation and financial audit infrastructure (within the organization or within a partner organization tasked with these responsibilities as a service unit)

• Each of these capabilities constitutes a training module in the courses that are offered to help organizations to improve their resource mobilization and programme and project management capacities at regional and national levels



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• One major failure in donor assisted programme or project management erases many successes…pay special attention to your organization’s internal capacities to deliver your portion of successful programmes and projects!



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• This also brings-up the important term of “absorptive capacity”

• In a competitive donor aid environment, recipient countries or organizations should seek to demonstrate strong absorptive capacity for development assistance

• Most organizations can identify a development problem - poverty, illiteracy, ill health, low or negative rates of growth – but :

– struggle to devise an appropriate policy and then transform the policy into a practical programme or project

– do not have the capacity to coordinate development aid and assert leadership (donor activism but recipient passivity)

Elements –The Concept of Absorptive Capacity


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• As such programme or project financial assistance is taking place under conditions of weakness, usually in a piecemeal manner

• This is often viewed as a lack of absorptive capacity to use the provided, or potentially available, resources as intended with good prospects to achieve expected and sustainable results

• Fear that financial resources can spill-over to unintended uses or not achieve expected results is prevalent (corruption, inefficiencies etc.)



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• This can be used as a reason for limiting external or underutilized financial assistance, worsening an ongoing resource mobilization challenge

• Thus we must pay special attention to the capacities of our organizations to deliver and to communicate this capacity to our financial partners



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• Proposal development work is an expertise in itself, requiring capacity strengthening and the systematic maintenance of that capacity within organizations

Elements - Successful Proposal Development


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• Why? - because proposal preparation processes can be a costly undertaking often borne in large part by the project proponent

• It is also very important to lower the transaction costs of your financing partners, to encourage a positive working relationship that both parties value

• If unnecessary mistakes are made at the proposal development and negotiation stage, it will not encourage confidence and trust among the various partners



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• The typical elements of proposals include:

– Proposal summary

– Programme or Project rationale

– Project design

– Management and implementation

– Monitoring, review and reporting

– Risk factors to be monitored and contingency management plan

– Budget itemization and explanation



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1. More work is needed to clarify the global benefits of the Convention and to make a case for support in this regard – this should be done quickly

2. RMS training in the regional centres should start quickly:

– Advisable to take a train-the-trainers approach so participants can return home to train others – 5-day course

– Complete training in each of the regional centres bringing representatives from Parties within the region to the training

– But, first start with a pilot training session in which prepared training material is tested - invite all Directors of regional centres and designated regional representatives of the Parties to this training

Topic 5 – Next stepsTopic 5 – Next steps

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– Receive feedback from the pilot, and revise the training materials and approach as needed

– Roll-out training in all the regional centres at a pace dictated by available finances

– Encourage support from bilateral donors via the Technical Cooperation Trust Fund as a strategic priority in the RMS category

Next stepsNext steps

building capacity for resource mobilization

Documents

basel convention cop

basel convention parties

financial institutions

financial conditions

basel conventionunderstanding

key messages

national implementation

support of implementation