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Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

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Page 1: Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

Multi Donor Governance Trust Fund

AfDB Partnership

Forum March 2010

Carlos Santiso

Governance, Economic and Financial Reforms Department

(OSGE)

Page 2: Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

Overview

1. ADB’s Governance’s Work and Mandate

2. Multi Donor Governance Trust Fund

3. Way Forward

Page 3: Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

Governance at the forefront

Page 4: Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

Promoting good financial governance in Africa

The Bank focuses on economic and financial governance at three levels:

Crystallize the African Voice on Governance

Page 5: Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

• 71 Operations covered 34 Regional Member Countries (RMCs)

• 2008: UA 33.72 million of ISPs (2008) promoted economic and financial governance

• 2009: 25 governance-related operations amounting to UA 2.16 billion

An Active Portfolio

Bank Group Lending Operations in Support of Governance (2002-2009)

Page 6: Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

OSGE Results/Outcomes

Achievements in 2008 Achievements in 2009

19 operations (18 PBL, 1 ISP)

21 financing instruments (ADB, ADF-L, ADF-G, FSF, AFCR)

UA 682 million

25 operations (23 PBL, 2 ISP)

20 financing instruments (ADB, ADF-L, ADF-G, FSF, AFCR)

UA 2 billion

Page 7: Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

Multi Donor Governance Trust Fund- Nordic Trust Fund

Nordic Trust Fund on Governance (2002-2008)

• 40+ initiatives, 5+ million USD

• Main lessons (August 2008 evaluation): Enhance oversight and quality at entry, explore frontier areas, flexibility to respond, focus on demand side, extend to other donors

DFID Trust Fund (2008)

• Strengthen Bank capacity and quality at entry; targeted support

Lessons from other Trust Funds

• Coordination and oversight, strengthening Bank capacity, delegate authority for flexible response, support decentralization

Building on experience and lessons learned:

Page 8: Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

Multi Donor Governance Trust Fund

Overarching goal: Assist African countries to build capable and responsive states by strengthening transparency and accountability in the management of public resources

Specific objectives:

Becoming a catalyst for funding and a platform for knowledge where diverse development partners are encouraged to harmonize efforts

Bring innovative approaches in the area of economic and financial governance;

Serving as a vehicle to incorporate new development actors;

Enhancing and upgrading the Bank’s own capacity to deliver assistance

Page 9: Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

Focal Areas

Anticorruption – Promotion of integrity and credible oversight institutions and accountability systems; anti-bribery and business integrity

Financial governance – Revenue management (tax & non-tax), pro-poor budgeting, gender budgeting, expenditure management, public procurement, debt management

Economic governance – Public private partnerships, support to the investment climate and business environment

Sector governance – Governance and corruption risk management, corporate social responsibility, high risk sectors (extractive industries, natural resources, infrastructure)

Page 10: Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

A transparent, agile and accountable structure

Oversight Committee

Technical Committee

Coordinator and

Secretariat

Task Managers

Sponsor Departs

Focal Points

Policy Setting

Annual Review

Approval of proposals above > 500 k

Outreach

Screening

Implementation

Knowledge Management

Outreach

Client Service

First Screening

Cross-Sectoral Agreement

Strategic Alignment

Enhanced Transparency

Improved Quality

Increased Visibility

Strengthened Accountability

Improved Supervision

Synergy with Bank work

Better Client Orientation

Review, Selection, approvals of Proposals < 500 k

Page 11: Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

Multi Donor Governance Trust Fund- Nordic Trust Fund

The Multi Donor Governance Trust Fund-

• The Government of Norway has pledged 6.4 million NOK (approx USD 1.113 million) and Switzerland has pledged CHF 3 million (approx. USD 2.99 million Bank capacity and quality at entry; targeted support

• The Fund will be launched in April 2010

Next Steps:

Page 12: Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

Way Forward

• OSGE the leading department- active portfolio- in the Bank has a need for more human resources

• Secondments: 1 Germany, 1 United Kingdom

• TA: 1 France, 1 Norway (untied)

Future needs

• strengthening rather than shifting Bank capacity; through secondments, special leave, staff attachment, trust fund coordinator

• In depth sector expertise (revenue, budgeting, auditing)

• Gender and governance (mainstreaming)

• Support to the APRM, procurement network

• Decentralization of sector expertise (regional hubs and field offices)

Page 13: Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

(title)

FEEDBACK?

QUESTIONS?

READY TO JOIN?

For more on our work:

www.afdb.org/governance

Contact:

Carlos Santiso (Manager, OSGE1)

[email protected]