WB Case Study on Aid Harmonization and Cooperation in Nepal - Bjorn-Soren Gigler

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Innovations for Enhanced AidHarmonization and CoordinationA case study of Nepal

Korea/ADB Conference on Knowledge Sharing and

Development Effectiveness in the Asia and Pacific Region

Bjorn-Soren Gigler, World Bank Institute

[email protected]

October 7, 2011



1) Background

SWAP in Nepal

2) Challenges

Lessons &

3) Open Aid

Map

1. Achievements

2. Key Challenges

i) Aid Effectiveness

ii) Aid Harmonization

iii) Civil SocietyOrganization

3. Lessons Learnt

1. World Bank

Projects in Nepal

2. Mapping for

Results

1. Health in Nepal

2. Aid in Nepal

3. SWAp

4. SWAp in Health

Sector

Agenda



Nepal

Landlocked, diverse country with an average $470 (GDP per capita)

• Population (million) : 29.3

• GDP per capita : $470 (South Asian average: $1,082)

• Poverty : 31% below poverty line

• Human Development Index : 0.428• Culturally, ethnically and religiously diverse

• Political transition in 2006

Source: World Bank (2011)



Nepal

Source: UNDP (2011)

Human Development Index : Trend 1980 – present

0.428



52.80%

34%

* country programmable aid as a % of total gov expenditure (Action Aid 2011)

Aid dependency *

• ODA has been increased greatly from 1960 ($8.2M) to 2009 ($994M)

• Highest aid dependent county in Asia

Aid in Nepal



S W A p

S W A p

$ millions 2004 2005 2006 2007 2008 2009

All 726.0 528.7 528.3 817.8 736.4 994.8

DAC countries 378.9 369.5 345.3 260.5 491.5 598.5

AusAID 3.2 1.1 5.5 1.7 12.6 10.8

DFID 114.3 104.7 58.2 50.8 51.3 140.3

GTZ 30.9 47.6 26.8 64.0 44.5 43.2

USAID 47.7 55.5 57.9 77.1 105.9 79.4

JICA 37.9 110.8 67.8 35.7 58.1 77.0

SDC 12.0 12.8 24.9 16.2 40.1 27.7

Finland 19.3 6.4 20.8 14.6 17.8 39.6

DANIDA 40.1 5.8 32.8 12.1 47.3 45.5

NORAD 65.4 8.1 31.0 52.1 33.6 66.2

Multilateral 347.2 159.2 183.0 457.3 244.9 396.3

IDA (WB) 215.8 35.0 25.0 330.8 158.0 284.2

UNICEF 6.5 5.5 6.4 7.7 6.0 7.4

UNFPA 3.3 4.8 3.9 4.3 5.6 4.4

ILO / WHO 0 0 0 0 0 0

AsDF (ADB) 80.0 73.9 97.2 0 0 25.1

25.3%



Aid Flows to Nepal in Health Sector

• Differences in Priority of Health Sectors (multi-lateral-bilaterals)

• Health expenditure per capita : $ 25

• Public exp. of total health expenditure : 35.3%

• Public exp. of total GDP : 5.8%

Energy only *

Transportation only*

Health



SWAp (Sector-Wide Approach)

• characterized by a set of operating principles rather than a specific package of

policies or activities.

• involves movement over time under government leadership towards:

- broadening policy dialogue

- developing a single sector policy (that addresses private and public sector issues)

and a common realistic expenditure program

- common monitoring arrangements- more coordinated procedures for funding and procurement.

World Health Organization, World Health Report (2000 )

An approach to international development that brings togethergovernments, donors and other stakeholders within any sector



Statement of intent to guide the partnership in health sector in Nepal

(initiated in Feb, 2004)

• To reduce transaction cost to the government

by aligning external support with Nepal government’s sector plan

by strengthening harmonization among the development partners in the health sector

S e c t o r W i d e

A p p r o a c h i n H e a l t h

Donor Country

(5)

International

Organization

(6)

• Australian Development Agency (AusAID)

• British Department for International Development (DFID)

• German cooperation agency (GTZ)

• U.S. Agency for International Development (USAID)

• Japan International Cooperation Agency (JICA)

•

Swiss development agency (SDC)

• The World Bank

• International Labour Organization (ILO)

• UN children’s fund (UNICEF)

• UN Population Fund (UNFPA)

• World Health Organization (WHO)

SWAp for Health in Nepal



KEY REGIONAL DIFFERENCES IN TERMS OF POVERTY

Data available

Indicator Poverty incidence

Time period 2001

Source CBS

M AP: POVERTY INCIDENCE

( DARKER COLOR HIGHER POVERTY )



001

Data available

Indicator

Time period 2001

Source CBS



World Bank Projects in Nepal



Nepal Health SWAP and development indicators



ECOND HEALTH SUPPORT PROGRAM (HSSP II)Data available

Number of districts 75

Total observations 4,161

MappingHealth center

location at the VDC

Status

Time periodSource Bert

Mismatched 62 VDCs

M AP: HEALTH CENTERS LOCATION AT VDC



Projects by Population Density



• December 2003 : Health Sector Strategy: An Agenda for Reform

• February 2004 : SWAp

• July 2004 : Letter of sector development policy by GoN

• August 2004 : Nepal Health Sector Programme- Implementation Plan (2004-2010)

• March 2005 : Signing of Joint Financing Arrangement (JFA) - GoN, DFID and World Bank

• June 2009 : Signing of JFA by AusAid as third partner to provide health sector budget

Progress

Pool Partner Non-signatorySignatory - Project Support

Nepal Government

• AusAid

• DFID• The World Bank

• ILO

• UNAIDS

• UNFPA• UNICEF

• WHO

• AusAid

• DFID• The World Bank

• GAVI

•

GFATM• NLRA

• Others



• Launched to support developing countries in achieving health sector MDGs

through health system strengthening, supporting national health plans and donorcoordination (September 2007)

• In first phase eight countries including Nepal selected for IHP+

• ‘Nepal Health Development Partnership Compact’ signed in February 2009

by Ministry of Health & Population (MHP) and eight health sector developmentpartners and it further commits to strengthen the SWAP in health sector.

International Health Partnerships +

I H

P +

Donor Country

(2)

International

Organization

(6)

• Australian Development Agency (AusAID)

• British Department for International Development (DFID)

• The World Bank

• UN Children’s fund (UNICEF)

• UN Population Fund (UNFPA)

• World Health Organization (WHO)

• UNAIDS

• GDC

IHP+ Signatory



• Every year two Joint Annual Reviews (JAR) are held one for annual work plan

and budget and another for review of sector performance and till date nineJARs completed successful

• ‘Health sector development partners forum’ chaired by health secretary asagreed in statement of intent signed in 2004 & IHP+ national compact in 2009

• All major issues are duly discussed in the above two forums

Major Coordination with SWAp in Health



1) Background

SWAP in Nepal

2) Challenges

Lessons &

3) Open Aid

Map

1. Achievements

2. Key Challenges




3. Lessons Learnt

1. World Bank

Projects in Nepal

2. Mapping for

Results

1. Health in Nepal

2. Aid in Nepal

3. SWAp

4. SWAp in Health

Sector

Agenda



Key Achievements

• Improved health outcomes and increased capacity on financialexpenditure led to availability of more funds

• Joint planning and programming through JAR helped to prepare more

realistic and comprehensive health work plan & budget

•

The government financial & procurement system is graduallyimproving

• It helped to address the constitutional provision of basic health as a

fundamental right of the citizens

• SWAP implemented at district level with merging of many program

heads into one as “integrated district health program”



Key Challenges for Aid Effectiveness

• Governance and accountability

• Financial management and financial flows

• Frequent changes in government

• Lack of effective private sector integration and regulation

• Continued off-budget support in health sector (non-governmental)

• Higher aid dependency for Nepal Government

• In sufficient information systems specially financial, procurement,

vital registration, physical assets and human resource management



Key Challenges for Aid Harmonization

• Donor efforts at monitoring and evaluation are fragmented

• China and India are big partners in health sector with significant

contribution, but refused to coordinate so that still alignment and

harmonization is a problem

• Lack of open Information

• HIV is almost completely segregated from the rest of the health

sector



Key Challenges for Civil Society Participation

• Limited Information about the role of CSOs in Health sector

•

Lack of coordination of national civil society• Political affiliation of civil society organizations

• Selective engagement of very few organizations that are not

necessarily representative of people on the ground

• Civil society is not systematically involved in sector meetings

Limited CSO’s Participations



• Health sector SWAP has increased ownership, harmonization and aidalignment in general.

• The capacity of health sector in context of managing big program such asSWAP or health sector program is gradually increasing

• However, there are still needs for partners to have better coordination onthe matter of communications, monitoring and evaluation system andgeographical strategy.

• It is necessary to upgrade the national systems such as financialmanagement, audit of financial expenditures and informationmanagement and inter-agency coordination.

• Technical assistance and information system with open data is crucial.

• It is necessary to engage CSOs and citizens more for better monitoring aidflows and projects at the local level.

• It would be great to establish inter-agency linkage with other SWAPsbeyond health sector (i.e. education, environment) and try to coordinate& address the SWAP related common issues.

•

Lessons Learnt



1) Background

SWAP in Nepal

2) Challenges

Lessons &

3) Open Aid

Map

1. Achievements

2. Key Challenges




3. Lessons Learnt

1. World BankProjects in Nepal

2. Mapping for

Results

1. Health in Nepal

2. Aid in Nepal

3. SWAp

4. SWAp in Health

Sector

Agenda



Open Aid Partnership

Open Aid Partnership

visualizes thesub-national location

of donor-financedprojects



Open Aid Partnership- Objectives

• Improve Aid Transparency: increasetransparency through Open Data on aidflows and public service delivery

• Enhance Results: Better target, monitor,and coordinate aid flows within countries

• Establish Feedback Loop: Empower

citizens and CSOs to provide directfeedback on project outcomes

Increase Aid Transparency and Citizen Engagement for Better Results



• All Bank-financed projects are mapped

• Maps for all 142 IBRD and IDA countriesdeveloped

• More than 30,000 project locations mapped

combined with sub-national MDG indictors(poverty, infant mortality, malnutrition)

• Visualized geographic locations for 1,600active Bank projects

What we have done so far:Mapping for Results

maps.worldbank.org



Regions Countries

Sectors Projects

Mapping at Various Levels

maps.worldbank.org



Key Components of Partnership

• Open Aid Map a common platform to showlocations of donor programs

• Country Platforms for open aid flows andpublic expenditures

• Citizen Feedback Loops to promote citizenengagement in the delivery of public services

• Capacity Development to empower CSOs andCitizens to effectively use and generate data

• Impact Evaluations to assess the impact ofopen aid on development outcomes



Poverty and WB projects WB and USAID projects

Public Expenditures Feedback Loop

Nepal Country Platform Pilot



1) Open Aid Map

• Geo-coding ofdonor-financedprojects based on

IATI standard• Joint Open Aid

Map for better aidcoordination(AidData)

• Visualize projectsof 27 donorscombined withpoverty data



2) Country Mapping Platform

Enable governments to collect, make openlyavailable and visualize data on developmentassistance, budgets and public service delivery

WB Case Study on Aid Harmonization and Cooperation in Nepal - Bjorn-Soren Gigler

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