Transcript What is Budget Support, and Why

The Future Approach to EU
Budget Support
Structured Dialogue Meeting 9th/10th November 2011
Lars Wilke, DG DEVCO A2
Economic Analysis, Public Finance, and Budget Support
Communication- Outline
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What is Budget Support, and Why
Lessons learnt
A Modern Approach to Budget Support
Transparency and Accountability
Way forward
What is Budget Support, and Why
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BS as package: Policy dialogue, financial transfers, performance
assessment and capacity building
Means of delivering better aid (not an end in itself)
Most suitable form of aid consistent with aid effectiveness agenda
Green Paper October 2010 – Wide consultation process of
stakeholders, including civil society organisations and partner
countries.
In this Communication, the Commission sets out a new policy on
budget support and puts forward policy proposals for an EU
coordinated approach
Lessons Learned
Positive experiences
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OECD-DAC evaluations
Encouraging results from new pilot evaluation methodology – Tunisia, Mali
and Zambia
Budget Support and MDG performance
Scope for Improvement
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Court of Auditor findings and recommendations
Calls for greater coherence and consistency of EU support
Need for more transparency and accountability
A modern approach to budget support
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Continued importance of budget support instrument
Stronger link with fundamental values of the EU (human rights, democracy
and rule of law)
Greater differentiation of budget support operations, allowing the EU to
respond better to the political, economic and social context of the partner
country
Strengthened eligibility criteria and more rigorous assessment; new
eligibility criterion on budget transparency
Stronger focus on accountability and transparency
Strengthened risk management framework
Continued emphasis on results, performance tranches, government ownership
and predictability
Strengthened EU Coordination
Transparency and accountability
 Strengthening openness, transparency and
accountability of the budget process in partner
countries
 Supporting a participatory budget support
approach
 Integrating programmes to support national
legislative and oversight bodies, including CSOs
 Increasing transparency by publishing relevant
information on budget support financing
agreements and performance reviews
Conclusions and Way Forward
Communication seeks to
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Make budget support more efficient and effective in delivering development
results
Equip the EU and Member States with an “EU Coordinated Approach” on
budget support
New guidelines to reflect guiding principles
Endorsement of the communication by Council
Conclusions in Mai 2012