The 2006 Survey on Monitoring the Paris Declaration was undertaken in 34 countries

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1 2006 Survey on Monitoring The Pris Declrtion Country Chpters BOLIVIA The 2006 Survey on Monitoring the Pris Declrtion ws undertken in 34 countries tht receive id. The results of the survey re presented in two volumes. Volume 1 provides n overview of key findings cross 34 countries. Volume 2 presents the seline nd key findings in ech of the 34 countries tht hve tken prt in the survey. This chpter is sed primrily on the dt nd findings communicted y government nd donors to the OECD through the Pris Declrtion monitoring process. A more detiled description of this process, how this chpter ws drfted nd wht sources were used is included in Volume 1, Chpter 2. Both Volume 1 (Overview) nd Volume 2 (Country Chpters) of the 2006 Survey on Monitoring the Pris Declrtion cn e downloded t the OECD wesite: A second round of monitoring will e orgnised in the first qurter of 2008 nd will e n importnt contriution to the Accr High-Level Forum on Aid Effectiveness in Septemer 2005.

2 5 BOLIVIA BOLIVIA S 9 MILLION PEOPLE receive n verge nnul income per hed of USD 960 (gross ntionl income per cpit, 2004). At the time of the lst household survey in 1999, some 14% of the popultion fell elow the dollr--dy interntionl poverty line nd 34% elow the two dollrs--dy line. Bolivi hs endorsed the Pris Declrtion, nd the effectiveness of id is of the highest concern to oth the government nd the donor community. Net officil development ssistnce (ODA) to Bolivi in 2004 ws USD 767 million, representing 9% of gross ntionl income. A totl of 16 donors responded to the 2006 seline survey, ccounting for t lest 88% of officil id flows to the country. Some of the key chllenges nd priority ctions suggested y the survey re shown in the ox elow. DIMENSIONS BASELINE CHALLENGES PRIORITY ACTIONS Ownership Moderte Ntionl Development Pln is not opertionlised. Alignment Low Much donor-supported ctivity is de-linked from government systems. Hrmonistion Low Progrmme-sed pproches nd common procedures re not yet widely used. Mnging for results Moderte Monitoring nd evlution system for the ntionl development pln is not yet in plce. Agree on intermedite Ntionl Development Pln ojectives nd link to udget lloctions Drw up government inititive on cpcity development. Improve government s finncil ccounting for id. Remove ostcles to wider doption of progrmme-sed pproches. Specify intermedite indictors nd clrify responsiilities for monitoring nd evlution. OVERVIEW Box 5.1 Chllenges nd priority ctions Mutul ccountility Moderte Hrmonistion nd lignment pln exists ut is not eing ctively monitored. Agree on n pproch to hrmonistion nd lignment monitoring. OWNERSHIP OWNERSHIP IS CRITICAL to chieving development results nd is centrl to the Pris Declrtion. It hs een defined s country s ility to exercise effective ledership over its development policies nd strtegies. Achieving this especilly in countries tht rely hevily on id to finnce their development is not simple undertking. Nor, of course, cn it e mesured y single indictor. For donors, promoting ownership mens supporting countries ledership, policies, institutions nd systems. This is commonly referred to s lignment (see elow). Donors re in etter position to do this when governments set out cler priorities nd opertionl strtegies which is the min focus of Indictor 1 of the Pris Declrtion SURVEY ON MONITORING THE PARIS DECLARATION, BOLIVIA - OECD

3 INDICATOR 1 OPERATIONAL DEVELOPMENT STRATEGY Indictor 1 of the Pris Declrtion mesures the extent to which country hs n opertionl development strtegy to guide the id co-ordintion effort nd the country s overll development. It uses the World Bnk s 2005 Comprehensive Development Frmework (CDF) Progress Report s the sis of this judgement. In the CDF s terms, n opertionl strtegy clls for: coherent long-term vision nd medium-term strtegy derived from it; specific trgets serving holistic, lnced nd well-sequenced development strtegy; nd cpcity nd resources for its implementtion. Bolivi is considered to hve some of these elements nd not others, nd is consequently plced, long with 58% of the countries covered, in ctegory C of the CDF s descending scle running from A to E. Only countries in ctegories A or B re considered to hve n opertionl strtegy. Bolivi s policy frmework for poverty reduction hs een ffected y the frequent chnges of government tht were feture of the country s history etween 2000 nd Politicl instility nd underlying socil tensions ffected the opertionlistion of the country s first Poverty Reduction Strtegy Pper nd prevented greement on successor strtegy. For two yers ( ) Bolivi s reltions with its donors were conducted without even forml greement on medium-term policy directions. The stlemte t the politicl level reflected profound lck of consensus mong the min socil forces of the country on long-term development vision for Bolivi, nd led to n unusul stndstill in policy development. This period ws rought to n end with the election of Evo Morles s President with lrge populr following nd decisive congressionl mjority t the end of Bolivi now hs solid long-term Ntionl Development Pln, sutitled Bolivi Dign, Soern, Productiv y Democrátic pr Vivir Bien, which is sed on Morles election pltform. The generl ojectives set out in the pln re strongly owned y the governing prty, Movimiento l Socilismo, nd differ from previous government plns in tht they commnd quite rod socil consensus. It is expected tht in due course the comprehensive Ntionl Development Pln will e recognised s Bolivi s new poverty reduction strtegy (PRS). However, good del of work remins to e done to turn it into n opertionl document, with specific trgets nd prioritised, lnced nd well-sequenced implementtion pln. Vrious high-profile policy issues re likely to dominte government concerns for some time. They include the re-ntionlistion of oil nd nturl gs, implementtion of new lnd policy nd the formultion of new ntionl Constitution. At the sme time, the government wnts to ly the foundtions for new reltionship etween the centre nd the regions, sed on elected Prefects with much incresed utonomy nd powers to formulte development plns t the deprtment level. According to the World Bnk s Aid Effectiveness Review (AER), there hve een frequent Cinet chnges nd significnt level of resigntions from some of the more professionlised sections of the senior civil service. Such circumstnces my crete considerle delys in the elortion of policies tht will rethe new life into the poverty-reduction ojectives implicit in the ntionl pln, nd the costing nd funding of relevnt ctivities SURVEY ON MONITORING THE PARIS DECLARATION, BOLIVIA - OECD 2007

4 The linkge etween the udget nd government development ojectives is longstnding wekness of development plnning in Bolivi. Ministries nd locl governments re leglly required to prepre Annul Opertionl Plns tht estlish spending priorities. However, ccording to the AER report, in prctice these plns re not sed on relistic estimte of ville resources nd do not include results frmework linking policies, ojectives nd indictors to monitor them. Ultimtely, their impct on udget formultion is limited. The Morles government hs tken fresh pproch to this issue y plcing the supervision of pulic spending plns under the Ministry of Development Plnning rther thn the Ministry of Finnce, ut the implictions of this chnge re not yet cler. OTHER ASPECTS OF OWNERSHIP Although the government of Bolivi hs so fr only tken some of the steps necessry to provide solid frmework for the lignment of externl ssistnce with country policies, it hs resumed n ctive role in co-ordinting externl development ssistnce. The Vice-Ministry for Investment nd Externl Finnce now reports to the new Ministry of Development Plnning. Since My 2006, the government chirs five joint working groups which were previously co-chired y donor nd government representtives. Severl sector working groups re functioning well, ccording to the AER. The government is exploring how to reinstte scheduled Consulttive Group (CG) meetings, with nnul mini-cg meetings, nd otherwise regulrise the reltionship etween the country nd its donors. ALIGNMENT AFTER SEVERAL YEARS OF MARKING TIME, Bolivi s externl prtners especilly the ilterl donors re now moving ck into norml pttern of country ssistnce plnning sed on stle country policy frmework. The World Bnk, for exmple, is prepring two-yer interim strtegy s ridge towrds full-fledged fouryer Country Assistnce Strtegy. Undoutedly, there will e ccelerted progress on numer of items in the id lignment gend. The results of the seline survey confirm the need to inject new sense of urgency into these moves, nd revel some promising signs of progress. It is cler tht the speed with which Bolivi moves towrds the trgets set y the Pris Declrtion follow-up will e ffected y oth the willingness of donors to dopt new prctices nd the ility of the government to ddress vrious longstnding system issues ffecting such res s pulic finncil mngement (PFM) nd procurement. BUILDING RELIABLE COUNTRY SYSTEMS The World Bnk s Country Policy nd Institutionl Assessment (CPIA) gives Bolivi current score of 3.5 for the qulity of udgetry nd pulic finncil mngement, which is rely ove the verge for Interntionl Development Assocition countries. Although the country hs firly sophisticted integrted finncil mngement system (Sistem Integrdo de Gestión y Modernizción Administrtiv), the 2004 Hevily Indeted Poor Countries trcking exercise found tht the overll qulity of pulic finncil mngement met only 4 of 16 enchmrks, with some deteriortion since For exmple, the supreme udit ody, the Comptroller of the Repulic, hs een strengthened s n instrument of finncil uditing in the pulic sector since the pssge of the 1990 Finncil Administrtion nd Control Lw. However, it hs limited enforcement powers, nd does not yet conduct performnce udits of government policies nd progrmmes. INDICATOR SURVEY ON MONITORING THE PARIS DECLARATION, BOLIVIA - OECD

5 INDICATOR 3 Tle 5.1 Are government udget estimtes comprehensive nd relistic? Government s udget estimtes of id flows for FY05 Aid disursed y donors for government sector in FY05 Bseline rtio* c=/ c=/ Anden Dev. Corp % Belgium % Cnd % Denmrk % Europen Commission % Germny % Glol Fund -- 0 IDB % IMF 0 0 Itly 3 0 0% Jpn % Netherlnds % Spin % Sweden % Switzerlnd % United Kingdom % United Ntions % United Sttes % World Bnk % Totl % * Bseline rtio is c = / except where government s udget estimtes re greter thn disursements (c = /). The government hs tken ction to del with some of the weknesses, notly y shrply reducing the ceiling on off-udget expenditures tht do not require congressionl pprovl. A strtegic frmework nd ction pln for strengthening pulic finnces hs een in plce since 2005, nd the results re eing keenly wtched. The AER reports tht there hve een inititives to introduce new technology into the pulic procurement system ut tht rules nd procedures do not meet interntionl stndrds. There is no centrl ody supervising nd regulting pulic procurement. Unfortuntely, numericl score for Indictor 2, n ssessment of the qulity of the procurement system, is not currently ville. ALIGNING AID FLOWS ON NATIONAL PRIORITIES As donors move to reorient their country ssistnce plns round the Ntionl Development Pln, ll prtners must work together to ensure tht donor finncil commitments re reflected fully nd ccurtely in the ntionl udget. This is the spect of lignment mesured y Indictor 3 of the seline survey. The generl trget for this indictor set y the Pris Declrtion (85%) clls for oth high level of udget relism on the prt of the country uthorities nd high degree of willingness nd ility of donors to provide informtion in timely fshion nd in suitle form. The tle provides government s udget estimtes of id flows for fiscl yer 2005 (numertor) s percentge of id disursed y donors for the government sector for the sme period (denomintor). This rtio tells us the degree to which there is discrepncy etween udget estimtes nd ctul disursements. The discrepncy cn e in two directions: indeed udget estimtes cn e either higher or lower thn disursements. In order to hve single mesure of discrepncy tht is lwys less thn 100%, the rtio is flipped when udget estimtes re higher thn disursements SURVEY ON MONITORING THE PARIS DECLARATION, BOLIVIA - OECD 2007

6 The seline figure for Bolivi from the survey is 71%. However, this numer is reflection of the sizele discrepncies in oth directions tht exist etween the id reported y donors s disursed to the government sector nd tht recorded in the udget. According to the survey return, these discrepncies primrily reflect filures of notifiction on the prt of the different executing odies. In some cses, executing gencies chnnelling funds directly to lower tiers of government or other pulic odies filed to inform the uthorities out plnned expenditures nd neglected the estlished reporting procedures. In other cses, figures were reported tht exceeded wht could e relisticlly disursed within the yer. The second source of inccurte reporting pplies prticulrly to commitments tht re entered into the supplementry udget quite lte in the fiscl yer. The trget for this indictor therefore clls for significnt joint effort to include oth the cpture of id funds in the udget nd the relism of the sumitted expenditure estimtes. CO-ORDINATING SUPPORT TO STRENGTHEN CAPACITY The Pris Declrtion recognises cpcity development s n essentil condition for country ownership of the development gend nd for the strengthening of country systems. Frgmented donor support to cpcity development is seen s n importnt ostcle. The Declrtion therefore commits donors to providing more co-ordinted support to cpcity development under country ledership, with trget of 50% provided in this form y The seline survey indictes tht in Bolivi 80% of reported technicl ssistnce is considered co-ordinted in this sense. This is well over the trget. However, from the descriptive prt of the survey return it is pprent tht the reported percentge is considerle overestimte, sed on loose understnding of the concept of co-ordintion under government ledership tht is not consistent with the survey guidnce mterils or with the spirit of the Pris Declrtion. How much technicl ssistnce is co-ordinted with country progrmmes? Co-ordinted technicl co-opertion Totl technicl co-opertion Bseline rtio c=/ Anden Dev. Corp % Belgium % Cnd % Denmrk % EC % Germny Glol Fund IDB % IMF Itly 0 1 0% Jpn % Netherlnds % Spin % Sweden % Switzerlnd % United Kingdom 0 0 0% United Ntions % United Sttes % World Bnk % Totl % As the AER reports, only limited ction is eing tken towrds developing comprehensive ntionl cpcity-uilding strtegy linked to the Ntionl Development Pln. Cpcity development plns for sectors re eing considered in those sectors, strting with eduction, tht re moving towrds sector-wide pproches (SWAps). A group of donors proposes to move to direct udget support s soon s n endorsed poverty reduction strtegy is in plce, nd will e undertking joint support for cpcity in pulic finncil mngement. However, these developments re still t n erly stge. In order to meet the Pris Declrtion trget relisticlly, Bolivi will need to move eyond the position where technicl ssistnce ctivities re merely consistent with country policies, nd insted support well-considered government inititive to improve pulic-sector cpcity. INDICATOR 4 Tle SURVEY ON MONITORING THE PARIS DECLARATION, BOLIVIA - OECD

7 INDICATOR 5 Tle 5.3 How much id for the government sectors uses country systems? Aid disursed y donors for government sector Budget execution Pulic finncil mngement Finncil reporting c Auditing d Bseline rtio vg (,c,d) / Procurement Procurement systems e Bseline rtio e / Anden Dev. Corp % 0 0% Belgium % 2 100% Cnd % 1 5% Denmrk % 15 90% Europen Commission % 17 49% Germny % 23 55% Glol Fund IDB % 0 0% IMF Itly Jpn % 0 0% Netherlnds % 20 69% Spin % 0 0% Sweden % % Switzerlnd % 0 0% United Kingdom % 0 0% United Ntions % 8 56% United Sttes % 0 0% World Bnk % 0 0% Totl % 95 15% USING COUNTRY SYSTEMS Indictor 5 is mesure of the use of three components of country pulic finncil mngement systems y donors. In Bolivi, the mjority of externlly finnced projects nd progrmmes use donors systems nd procedures. According to the survey dt, 26% of flows mke use of ll three components in Bolivi. Given Bolivi s modertely high CPIA score for pulic udgetry nd finncil mngement, the verge should rise to 76% y If the current trend towrds SWAps continues, nd if the plnned rrngement for multi-donor udget support is consolidted, it is likely tht Bolivi will see sustntil improvement in the use of country PFM systems. Sector support modlities re lredy proving to foster stepped-up use of country systems, notly in eduction. The udget support progrmme will not only crete n utomtic relince on the country s udget execution nd finncil reporting rrngement, ut will ring with it monitoring of greed policy mtrices tht highlight improvement of finncil mngement systems. According to the survey results, only 15% of the id from reporting donors mde use of the country s procurement system. At present, no numericl rting of the qulity of the Bolivin procurement system is ville, so specific trget for incresed utilistion cnnot e set. However, in the view of the World Bnk s AER, the incresed use of progrmme modlities should led to more extensive efforts to mke use of country procurement systems nd contriute to their improvement SURVEY ON MONITORING THE PARIS DECLARATION, BOLIVIA - OECD 2007

8 AVOIDING PARALLEL IMPLEMENTATION STRUCTURES The Pris Declrtion clls for sustntil reduction in the numer of project implementtion units (PIUs) tht re prllel in the sense tht ppointment decisions nd ccounting reltionships involve the donor lone. The current seline figure for Bolivi is given s 66 such structures. This my well e n underestimte. According to the descriptive prt of the survey return s well s the view of the World Bnk s AER, lmost ll externlly funded projects re run y PIUs tht re effectively prllel structures. There re some exceptions. For exmple, some Jpnese-funded ctivities restrict themselves to posting Jpnese experts within executing gencies tht re deprtments of the government, nd providing them with only their slries nd n llownce for minor expenses. Also, in sectors like eduction where the dilogue etween the donors nd the government hs een intensive nd cpcity support hs een stronger, there is more relince on minstrem government structures. Nevertheless, this would seem to e n re tht would enefit from greter donor efforts in Bolivi, in comintion with the thoroughgoing pproch to cpcity development suggested ove. The government hs requested tht externl prtners move wy from prllel PIUs nd llow units to e sored into the pproprite government offices t the end of projects. The Pris Declrtion trget for country with 66 such units in 2006 is to reduce the numer to 22 y PROVIDING MORE PREDICTABLE AID It is mjor undertking to improve the predictility of support nd mesure performnce in this regrd. Indictor 7 focuses on the government s ility to record disursements in its ccounting system: Bolivi recorded 63% of its id in While this totl might seem to suggest resonle level of predictility together with moderte level of ccurcy in the recording, the rekdown y donor revels high level of How mny PIUs re prllel to country structures? Prllel PIUs (units) Anden Dev. Corp. 0 Belgium 0 Cnd 5 Denmrk 3 Europen Commission 0 Germny 0 Glol Fund 0 IDB 0 IMF -- Itly 1 Jpn 0 Netherlnds 0 Spin 10 Sweden 0 Switzerlnd 8 United Kingdom 1 United Ntions 31 United Sttes 0 World Bnk 7 Totl 66 oth under- nd over-ccounting of disursements y government. The figures provided y the donors themselves do not indicte high level of predictility, with unscheduled over- or underdisursement in lmost ll cses. The tle looks t predictility from two different ngles. The first ngle is donors nd government s comined ility to disurse id on schedule. In Bolivi, donors scheduled USD 722 million for disursement in 2005 nd ctully disursed ccording to their own records less thn expected (USD 628 million). The discrepncy vries considerly mong donors. The second ngle is donors nd government s ility to record comprehensively disursements mde y donors for the government sector. In Bolivi, government systems recorded only USD 455 million out of the USD 628 million notified s disursed y donors (72%), indicting tht significnt proportion of disursements were not cptured, either ecuse they were not ppropritely notified y donors or ecuse they were inccurtely recorded y government. INDICATOR 6 Tle SURVEY ON MONITORING THE PARIS DECLARATION, BOLIVIA - OECD

9 INDICATOR 7 Tle 5.5 Are disursements on schedule nd recorded y government? Disursements recorded y government in FY05 Aid scheduled y donors for disursement in FY05 Aid ctully disursed y donors in FY05 FOR REFERENCE ONLY Bseline rtio* c=/ c=/ Anden Dev. Corp % Belgium % Cnd % Denmrk % Europen Commission % Germny % Glol Fund IDB % IMF Itly Jpn % Netherlnds % Spin % Sweden % Switzerlnd % United Kingdom % United Ntions % United Sttes % World Bnk % Totl % * Bseline rtio is c = / except where disursements recorded y government re greter thn id scheduled for disursement (c = /). Indictor 7 on predictility hs een designed to encourge progress on oth of these ngles so s to grdully close the predictility gp y hlf y In other words, it seeks to improve not only the predictility of ctul disursements ut lso the ccurcy of how they re recorded in government systems n importnt feture of ownership, ccountility nd trnsprency. In Bolivi, this comined predictility gp mounts to USD 267 million (37% of id scheduled for disursement). Closing this predictility gp will require donors nd government to work incresingly together on vrious fronts t the sme time. They might work t improving: the relism of predictions on volume nd timing of expected disursements; the wy donors notify their disursements to government; the comprehensiveness of government s records of disursements mde y donors. INDICATOR 8 UNTYING AID According to OECD dt covering 79% of 2004 commitments, 78% of id to Bolivi is untied. It is not cler whether donors hve mde ny specific commitments to reduce the remining tied id, or whether the government is monitoring the issue SURVEY ON MONITORING THE PARIS DECLARATION, BOLIVIA - OECD 2007

10 HARMONISATION ACHIEVING A GREATER DEGREE of lignment of externl support with country policies nd systems is going to tke sustntil effort in Bolivi. The opportunities provided y the expected period of policy stility will need to e seized with oth hnds y the donor community. For its prt, the government will hve to recognise tht the relistion of its development vision for the country depends on ddressing the vrious long-delyed prolems ffecting the systems nd cpcities of the stte. Tckling the system prolems would encourge donors to tke steps to enhnce the effectiveness of their id, including dopting more hrmonised prctices nd less frgmented funding flows tht reduce trnsction costs for government. USING COMMON ARRANGEMENTS Currently, 32% of reported government-sector id uses progrmme-sed pproches (PBAs). This figure reflects the relity tht lrge numer of disprte externlly finnced projects nd greements re still in plce 820 ccording to World Bnk estimte for the end of On the other hnd, the proportion of udget support hs remined low ecuse the se conditions for strting multi-donor udget support were not stisfied up to the end of In fct, eduction is the only re with strong support for SWAp. The use of PBAs should increse over the coming yers, putting the trget of 66% y 2010 within esy rech. Certin common procedures nd t lest some of the elements of progrmme-sed pproch cn e seen in the joint support to the Eduction Reform Progrmme, the Omudsmn, the griculturl technology system nd the wter sector. The Pris Declrtion clls upon donors nd government to uild upon exmples such s these. How much id is progrmme sed? INDICATOR 9 Tle 5.6 Progrmme-sed pproches Totl disursed Bseline rtio Budget support Other PBAs Totl c=+ d e=c/d Anden Dev. Corp % Belgium % Cnd % Denmrk % Europen Commission % Germny % Glol Fund IDB % IMF Itly % Jpn % Netherlnds % Spin % Sweden % Switzerlnd % United Kingdom % United Ntions % United Sttes % World Bnk % Totl % 2006 SURVEY ON MONITORING THE PARIS DECLARATION, BOLIVIA - OECD

11 INDICATOR 10 Tle 5.7 How mny donor missions re co-ordinted? Co-ordinted donor missions (missions) Totl donor missions (missions) Bseline rtio c=/ Anden Dev. Corp % Belgium Cnd % Denmrk % Europen Commission % Germny % Glol Fund % IDB % IMF 0 5 0% Itly 0 6 0% Jpn % Netherlnds % Spin 0 5 0% Sweden % Switzerlnd % United Kingdom 0 1 0% United Ntions % United Sttes World Bnk % Totl (discounted*) % * The totl of co-ordinted missions hs een djusted to void doule counting. A discount fctor of 35% hs een pplied. INDICATOR 10 Tle 5.8 How much country nlysis is co-ordinted? Co-ordinted donor nlyticl work * (units) Totl donor nlyticl work (units) Bseline rtio c=/ Anden Dev. Corp % Belgium Cnd 0 1 0% Denmrk Europen Commission 0 5 0% Germny % Glol Fund IDB % IMF 0 5 0% Itly Jpn % Netherlnds Spin % Sweden % Switzerlnd United Kingdom 0 6 0% United Ntions % United Sttes World Bnk % Totl (discounted*) % * The totl of co-ordinted nlysis hs een djusted to void doule counting. A discount fctor of 25% hs een pplied SURVEY ON MONITORING THE PARIS DECLARATION, BOLIVIA - OECD 2007

12 CONDUCTING JOINT MISSIONS AND SHARING ANALYSIS The seline figure for co-ordintion of donor missions is t 17% when compred with the Pris Declrtion trget of 40%. The UN system nd the World Bnk ccount for lrge proportion of reported joint exercises. The solute numer of missions is nonetheless still very high. Although there hs een trend mong donors to decentrlise their offices nd decision mking to the country level, this hs not led to sustntil reduction in the numer of missions. Delierte efforts will therefore e needed to meet the trget even if PBAs, nd the joint ctivities tht they imply, increse in importnce s expected. Jointly conducted nlyticl work is on the rise, with the seline proportion t 30%. Leding exmples include the Country Finncil Accountility Assessment, the Institutionl nd Governnce Review, nd the joint Country Socil Assessment. Externl prtners hve posted t lest 27 documents on the multi-donor interntionl wesite for country nlyticl work ( However, donors will hve to mke mjor nd concerted effort if they re to meet the Pris Declrtion trget of 60% of nlyticl work done jointly. MANAGING FOR RESULTS THE PARIS DECLARATION clls for prtner countries nd donors to work together to mnge resources on the sis of desired results nd use informtion to improve decision mking. This mens oth strengthening the cpcity to undertke such mngement nd helping to increse the demnd for focus on results. Indictor 11 mesures one component of this effort: the estlishment of cost-effective results-oriented reporting nd ssessment systems y the country. Bolivi is not mong the very smll group of Interntionl Development Assocition countries judged to hve lrgely developed results monitoring system ccording to the CDF. Insted, it flls into ctegory C of this ssessment long with the 42% of the smple tht hve some (ut not ll) of the elements of such system. This reflects prticulr strengths nd indequcies in three res: the qulity of the ville development informtion, the degree to which stkeholders hve ccess to it, nd the extent of co-ordinted monitoring nd evlution of the country s development efforts. The AER reports tht the vilility nd qulity of poverty-relted dt hs improved. However, ction is needed to strengthen informtion reliility, timeliness nd comprehensiveness. There hve een regulr surveys of living conditions, nd sttisticl cpcity is eing strengthened with support from multi-donor trust fund. However, country-level monitoring nd evlution system is not in plce. Under the first PRS, nnul progress reports were prepred y the Unidd de Análisis de Polítics Económics (politicl economy nlysis unit) on ehlf of n inter-ministeril council on monitoring nd evlution, ut this rrngement no longer opertes. The Ntionl Development Pln identifies 2006 nd 2010 trgets for six sic indictors of poverty nd inequlity. However, these re not yet cked up with intermedite indictors to trck progress towrds their chievement on n nnul sis. Although the Ntionl Development Pln hs een pulished nd udget execution dt re ville on government wesites, there re no known plns to disseminte or promote discussion of the pln s implementtion. These issues will need ttention if the government is to ply its prt in relising the Pris Declrtion vision. INDICATOR SURVEY ON MONITORING THE PARIS DECLARATION, BOLIVIA - OECD

13 INDICATOR 12 MUTUAL ACCOUNTABILITY THE PARIS DECLARATION RECOMMENDS tht donors nd prtner countries e ccountle to ech other for the use of development resources, nd in wy tht strengthens pulic support for ntionl policies nd development ssistnce. This in turn requires governments to improve country ccountility systems nd donors to e trnsprent out their own contriutions. Is there country-level mechnism permitting joint ssessment of progress in implementing greed commitments on id effectiveness, including those in the Declrtion itself? Such mechnism does exist in Bolivi. Bolivi ecme hrmonistion pilot country fter the 2003 Rome Declrtion on Hrmonistion nd Alignment. Together with externl prtners, the government prepred Ntionl Pln for Alignment nd Hrmonistion, tht ws presented t the Pris High- Level Forum in This ws reviewed in n evlution workshop held in Novemer 2005, which led to joint declrtion of intentions y prticipting donors nd the government. Further steps to institutionlise joint reviews of progress in id effectiveness re nticipted. BASELINES AND TARGETS THE TABLE BELOW presents the 2005 selines nd trgets for Bolivi. The seline vlues re formulted through the discussion ove, which drws on vrious sources of informtion. The min source is the seline survey undertken in Bolivi under the egis of the Ntionl Co-ordintor (Fernndo Jiménez Zellos). Tle 5.9 Bselines nd trgets INDICATORS 2005 BASELINE 2010 TARGET 1 Ownership Opertionl PRS C B or A 2 Qulity of PFM systems Qulity procurement systems Not ville Not pplicle 3 Aid reported on udget 71% 85% 4 Co-ordinted cpcity development 80% 50% 5 Use of country PFM systems (id flows) 26% 51% 5 Use of country procurement systems (id flows) 15% Not pplicle 6 Prllel PIUs In-yer predictility 63% 81% 8 Untied id 78% More thn 78% 9 Use of progrmme-sed pproches 32% 66% 10 Co-ordinted missions 17% 40% 10 Co-ordinted country nlyticl work 30% 66% 11 Sound performnce ssessment frmework C B or A 12 Reviews of mutul ccountility Yes Yes ACRONYMS AER CDF CG CPIA Aid Effectiveness Review Comprehensive Development Frmework Consulttive Group Country Policy nd Institutionl Assessment ODA officil development ssistnce PBA progrmme-sed pproch PFM pulic finncil mngement PIU project implementtion unit PRS Poverty Reduction Strtegy SWAp sector-wide pproch SURVEY ON MONITORING THE PARIS DECLARATION, BOLIVIA - OECD 2007

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