Country brief. Rwanda. Ronald Nkusi MINECOFIN. September Contacts: / Country Case - Rwanda

Transcription

1 Cuntry brief Rwanda Rnald Nkusi MINECOFIN September 2015 Cntacts: / 1 Cuntry Case - Rwanda

2 The present cuntry brief was prepared by the External Finance Unit f the Ministry f Finance and Ecnmic Planning and UNDP Rwanda, as a part f effrts t further build up the repsitry f evidence and gd practices n the implementatin f the effective develpment cperatin principles at the cuntry level and facilitate mutual learning under the umbrella f the Glbal Partnership fr Effective Develpment Cperatin (GPEDC). Highlights fr Rwanda 1. Strng aid plicy with natinal mutual accuntability framewrk: Dnr Perfrmance Assessment Framewrk (DPAF) 2. Reductin f fragmentatin and Divisin f Labr agreement (DL) 3. Transparency: Pilting the use f the aid standard develped by IATI Linking Rwanda Develpment Assistance Database (DAD) with IFMIS. Annual ODA and Dnr Perfrmance Assessment Reprts 4. Bradening the develpment partnerships beynd aid: Remittances strategy Philanthrpy partnership strategy Private sectr financing mapping and strategy New DPAF t assess partnerships in trade, taxatin, FDI, PPPs, etc. Main changes since Busan Frum: impact / effects / prducts Organizatin: Fllwing the Busan HLF, the Gvernment reviewed the Dnr Perfrmance Assessment Framewrk (DPAF) in rder t update it with a select number f the new indicatrs articulated in the Pst-Busan Glbal Mnitring Framewrk, namely indicatr 1 (cuntry results framewrks), indicatr 3 (private sectr cntributin), indicatr 7 (mutual accuntability) and 8 (gender equality and wmen s empwerment). The changes t the DPAF were agreed with develpment partners in Octber Mrever, the Gvernment is undertaking tw pilt initiatives: 1) the Glbal Initiative fr Enhancing the Use f Cuntry Results Framewrks pilt and 2) the use f the aid transparency standard develped by the Internatinal Aid Transparency Initiative (IATI) in the natinal aid infrmatin management system called Rwanda Develpment Assistance Database (DAD). Ownership: The Gvernment f Rwanda has a well-established Natinal Aid Plicy (2006) and develpment cperatin architecture, including a sund mechanism fr assessing the perfrmance f develpment partners (DPAF), which takes place annually. The Gvernment s perfrmance is 2 Cuntry Case - Rwanda

3 assessed thrugh the annual review f the Ecnmic Develpment and Pverty Reductin Strategy 2. The results f bth reviews are published. The Gvernment als agreed n a Divisin f Labr (DL) arrangement with develpment partners in 2008, which is being fully implemented. Bth the DPAF and the DL have been instrumental in behaviral change amng develpment partners. The regular mnitring and reprting against the 22 indicatrs f the DPAF creates incentives fr better develpment effectiveness. Hwever, in the past years there is a trend f lwering perfrmance f dnrs against key indicatrs such as the use f the natinal financial systems and mid-term predictability. This is largely due t the increased use f prject mdalities as ppsed t budget supprt. The abve mentined DL agreement requires that DPs wrk in n mre than 3 sectrs and encurages delegated cperatin amng partners. The average number f sectrs fr all DPs stand at 3.5 fr the past three fiscal years, while the aggregated percentage f ttal aid ging t the 3 sectrs is cnsistently abve the target f 70% leading t its increase t 75% in the last fiscal year. The Ministry f Finance and Ecnmic Planning f Rwanda has hsted a number f peer exchange and learning events with cuntries like Tanzania, Zanzibar, Malawi, Kenya, Bangladesh and the Gambia, amng thers. Results: The DPAF pints t the success f DPs twards meeting indicatrs such as the use f natinal prcurement and auditing systems, shrt-term predictability, and in the implementatin f the DL agreement. Mutual accuntability in Rwanda als scres high as nted in the cnsecutive UN DESA mutual accuntability surveys at cuntry level. The Gvernment f Rwanda wuld like t see mre prgress being made in the channeling f funds thrugh the public sectr, the use f the PFM systems and in mid-term predictability, as well as in the targets fr indicatrs measuring the timeliness f disbursements and the quality f sectr budget supprt. Inclusiveness: The main plicy dialgue frum is called the Develpment Partners Crdinatin Grup (DPCG). It is chaired by the Permanent Secretary and Secretary f Treasury f MINECOFIN and is inclusive f all Permanent Secretaries f line ministries, as well as traditinal dnrs, SSC prviders and representatives f the private sectr, the Netwrk f Internatinal NGOs and the Rwanda Civil Sciety Platfrm. This ensures a high level f plicy and technical dialgue. Fr example, the DPCG served as the Steering Cmmittee fr the develpment f the Ecnmic Develpment and Pverty Reductin Strategy 2 f Rwanda. Furthermre, there are 15 Sectr Wrking Grups, which are als inclusive f the main stakehlders in the sectrs. The SWGs play an imprtant rle in ensuring alignment f ODA and ther resurces t the gvernment sectr pririties. These hld tw annual Jint Sectr Reviews (backward and frward-lking nes), which prvide imprtant inputs t the planning and budgeting prcess. Transparency and accuntability: Rwanda is pursuing a practive agenda n bth the transparency and accuntability frnts. The Ministry f Finance and Ecnmic Planning has been prducing an annual ODA reprt, which is publicly available n the Rwanda develpment partners website: as well as the utcmes f the Dnr Perfrmance 3 Cuntry Case - Rwanda

4 Assessment Framewrk. It is currently wrking n the fllwing enhancements f its Develpment Assistance Database (als pen t the public: which has infrmatin n dnr prjects in Rwanda: Linking the DAD with the IFMIS fr better integratin f ODA in the budget;; Capturing ODA flws t INGOs thrugh the establishment f an INGO database, which serves as a registratin platfrm and will be linked t the DAD by the end f 2015;; Pilting the infrmatin prvided by develpment partners HQs and the aid standard f IATI in the DAD. The pilting f the use f aid data frm the IATI Registry was dne in A dedicated web-platfrm was created, which allws fr imprt and analysis f the IATI data and its cmparisn with the data entered by DPs in the natinal system. The results f the pilt pint t the need fr increased transparency and better quality f data published glbally thrugh IATI s it can be used by gvernments at the cuntry level. At present, the cuntry level data is mre granular and accurate. With regard t accuntability, a new DPAF will be elabrated, which will lk int assessing the partnership between Rwanda and develpment partners in the areas f trade, taxatin, FDI, and PPPs, amng thers. This has been agreed at the 2015 Develpment Partners Retreat and the draft prpsal will be tabled fr discussin/agreement at the 2016 Retreat. Next steps: Develpment Effectiveness Agenda Pursue the pilt initiative n strengthening the use f cuntry results framewrks. Further imprve the capture f infrmatin n aid and ther types f flws in the DAD and link the DAD t the IFMIS. Imprve the plicy dialgue, develpment effectiveness, sectr budget preparatin and mnitring, as well as the wrking methds f the Sectr Wrking Grups. In this regard, the Ministry f Finance and Ecnmic Planning cmmissined a review f the perfrmance f the SWGs in April 2015, which came up with a number f recmmendatins. The Ministry is leading a cnsultatin prcess with DPs t revise the JSRs calendar in rder t allw fr effective engagement f all stakehlders in the budgeting prcess and t cme up with a jint list f recmmendatins fr imprving the perfrmance f the SWGs. Cntinue t prduce and imprve the cntent and the disseminatin f the annual ODA and DPAF reprts. Develp the new DPAF t measure beynd aid partnerships between Rwanda and DPs in the areas f trade, taxatin, FDI, PPPs, etc. Develp a philanthrpy partnership strategy Define recmmendatins and implement a remittances mbilizatin strategy Pursue implementatin f a private sectr financing strategy and cllabratin with the Rwandan Private Sectr Federatin and ther private sectr actrs 4 Cuntry Case - Rwanda

5 Cntinue t hst and exchange experiences with ther partner cuntries. Recmmendatins: Fr ther cuntries and supprt t yur cuntry The recmmendatins f Rwanda are the fllwing: At natinal level: Natinal leadership and senir level engagement in setting the gvernment pririties in develpment plicy and cperatin are fundamental t successful and natinally-led develpment prcesses. Defining targets and indicatrs f perfrmance and mutual accuntability are meaningless if there is n plitical will t mnitr and hld all stakehlders t accunt. Taking risk in implementing bld initiatives such as DL arrangements is necessary and pays ff in the end. Being practive in defining the cperatin framewrk puts yu in a better negtiatin psitin. Rwanda has always taken the lead in develping plicies, strategies and tls fr better develpment effectiveness and management f external resurces. Each f the plicies and tls elabrated in this paper are an initiative f GR and have been develped in cnsultatins with lcal and internatinal partners. At internatinal level: Maintain the mmentum in implementing the Busan agreement and the cmmitments f develpment partners (use f cuntry systems, transparency and predictability, untying aid, reducing fragmentatin are critical fr partner cuntries). Fllw thrugh n the cmmitment made t prvide 0.7% f GNI as ODA. Mbilize ther financial flws (internatinal and dmestic, public and private) t accelerate pverty reductin, ecnmic grwth and reduce inequalities within and amng cuntries. Ensure that the 2030 Agenda has a rbust mnitring and mutual accuntability framewrk that is able t push prgress n glbal challenges and plicy issues that cannt be reslved at the cuntry level. Strengthen reginal leadership n develpment plicy and cperatin in Africa. Key experiences t share: Transparency: pilting the use f the aid standard develped by IATI Cuntry results framewrks and mutual accuntability: natinal mutual accuntability framewrk (DPAF) & GPEDC pilt fr strengthening the use f cuntry results framewrks Reductin f fragmentatin and DL: implementatin f the 2008 Divisin f Labr agreement with develpment partners 5 Cuntry Case - Rwanda

6 Develpment f a new DPAF t track partnerships beynd aid, i.e. in the areas f trade, taxatin, FDIs, PPPs Review f the perfrmance f Sectr Wrking Grups Expanding partnerships with SSC prviders, the private sectr and fundatins 6 Cuntry Case - Rwanda