Transcript Document

Tracking Aid Flows in Malawi: Experiences,
Challenges and the Way Forward
21st October 2009
Hague, Netherlands
Contents
This presentation explains how Malawi begun aid
monitoring and reporting in the interest of improved
resource management. Specifically, we look at:
• why we collect aid data
• how we collect the data, and the analyses we undertake
• the challenges we have encountered
• our vision for the future
Why collect data?
• Ministry of Finance began collecting information on aid
inflows to Malawi in December 2005. Prior to this, only
debt data was held
• The Ministry of Finance consulted with users and
providers of data before designing a reporting format in
excel which included all information related to donor
financing (amount committed, relevant dates, currency
and amounts, disbursements etc)
• Information was initially collected to:
• Monitor the prevailing macroeconomic programme (PRGF)
• Provide a basis for project monitoring
• Improve budget comprehensiveness
Why collect data?
• As data collection and analysis improved, we did more:
• Annual reporting on aid inflows by sector, national development
strategy theme, donor, modality etc.
• Quarterly project monitoring reports and Aid Atlas production
• Calculate indicators of aid effectiveness and dependence:
predictability, use of national systems, use of PBAs, % of budget
• Promote sector-led aid effectiveness reviews as part of national
reviewing process of the Malawi Growth Development Strategy
The Evolution of Data Collection
• Due to the complexity of handling large volumes of aid
information using excel spreadsheets, the Government of
Malawi decided to adopt a comprehensive AIMS
• In 2008, with funding from UNDP, the Government adopted
the Aid Management Platform (AMP), which is a user-friendly
web-based system for tracking aid inflows.
• AMP has facilities for tracking the financial flows in donor
funded programmes as well as the physical implementation
progress.
• It also has a facility for generating customized reports on aid
management depending on the needs and requirements of the
user.
• The main attraction of the AMP, however, was our ability to
request changes to the system to improve its fit to Malawi’s
specific needs
Why AIMS was adopted
• AIMS can support poverty reduction through efficient aid
delivery as follows:
 Facilitate decision making on the allocation of resources by
providing an overall picture of aid flows;
 Assist in identifying funding gaps, alerting both the Government
and donors on the financing needs;
 Support the national strategies and MDGs by making information
relative to flows contributing to the specific indicators
 Support national PFMS by interfacing with the national budget;
 Improving aid predictability through multi-year programming;
 Foster transparency and accountability by recording and tracking
projects and financial flows.
Data Collection Formats
• The Ministry of Finance consulted with users and
providers of data before designing a reporting format
(screenshot overleaf).
• Key elements:
• All support is reported on, including to NGOs and selfadministered
• Annual projections are provided prior to the FY for all funding
streams, quarterly projections for pooled funding, SBS and GBS
• Actual disbursements are tracked on a monthly basis
• Technical Assistance should be reported separately
• Data requests to donors are made on a monthly basis
Data Collection Format
Aid Category / Project Name
Donor Project
Code
Total Donor Funding
Terms of funding
(Loan or Grant)
Included in 2007/08
Budget?
Implementing Agency
Projected
Disbursements
2007/08
Actual Disbursements
2006/07
Projected disbursments
2007/08 - Quarterly
Q1
Q2
Actual Disbursements 2007/08
Jul-07
Aug-07
Projected Expenditure
2008/09 (Donor
Currency)
1) Budgetary Support (BOP)
(Total)
(Total)
(Total)
(Total)
(Total)
Non-tied
(Sub-total)
(Sub-total)
(Sub-total)
(Sub-total)
(Sub-total)
Dedicated
(Sub-total)
(Sub-total)
(Sub-total)
(Sub-total)
(Sub-total)
2) Project / Programme
specific funding
Promotion of Democratic
Decentralization
Macro-Economic Advisory
Services Project
Improving Basic Education
Promotion of sustainable
Structures for Health Delivery
Services
Crisis Prevention Malawi Forum for Dialogue and Peace
School Feeding Program
Insecticide Treated Moskito
Nets
Support to Local Government
Elections
Improving Basic Education
(next phase)
40,290,000
6,638,631
6,700,000
1,692,500
1,692,500
1,236,097
610,838
01.2483.4
7,290,000 Grant
Not in Budget
MLGRD
1,797,796
700,000
350,000
350,000
465,179
229,176
0
03.2274.3
04.2176.8
2,000,000 Grant
4,700,000 Grant
Not in Budget
Not in Budget
MEPD / MoF
MoE&VT
363,526
1,537,447
500,000
600,000
125,000
300,000
125,000
300,000
24,880
139,000
16,146
215,725
50,000
0
04.2022.4
8,000,000 Grant
Not in Budget
MoH
858,188
1,000,000
250,000
250,000
212,786
47,095
550,000
04.2204.8
05.2155.9
1,600,000 Grant
4,100,000 Grant
Not in Budget
Not in Budget
National Assembly
MoE&VT
477,644
1,163,601
350,000
900,000
117,500
225,000
117,500
225,000
85,477
61,290
20,154
6,453
0
500,000
05.2156.7
1,500,000 Grant
Not in Budget
MoH
406,026
400,000
200,000
200,000
247,330
75,548
05.2204.5
1,500,000 Grant
Not in Budget
MEC
34,403
125,000
125,000
155
541
07.2058.1
3,800,000 Grant
Not in Budget
MoE&VT
0
500,000
0
0
1,500,000
4,800,000 Grant
Not in Budget
MLGRD
0
600,000
0
0
1,600,000
1,000,000 Grant
Not in Budget
National Assembly
0
150,000
0
0
Promotion of Democratic
Decentralization (next phase) 07.2060.7
Crisis Prevention Malawi Forum for Dialogue and Peace
(next phase)
07.2163.9
3) Pipeline projects
(total)
Macro-Economic Advisory
Services Project (next phase)
5,300,000
08.2035.7
1,000,000
(total)
Grant
Not in Budget
MEPD / MoF
0
0
500,000
600,000
(total)
0
0
0
Note: A number of columns and rows have been deleted for presentational purposes
1,200,000
Donor ratings: Provision of Info
Sendout 1 Aug
07
Donor
GTZ
On time
USAID
On time
World Bank On time
ADB
On time
DfID
On time
KfW
On time
Norway
UNDP
UNICEF
EU
WfP
FAO
WHO
JICA
CIDA
Sendout 2 Sept
07
On time
On time
On time
Late
On time
Late
Late
Late
On time
On time
Late
Late
On time
Late
Not submitted Late
Not submitted Not submitted
Not submitted Not submitted
On time
Late
Sendout 4 Nov
07
On time
On time
On time
On time
On time
Late
Sendout Sendout Sendout
Dec 07 Jan 08 Feb 08
On time
On time
On time
On time
On time
On time
On time
Late
Late
On time
On time Not submitted
On time
On time
On time
On time
On time
On time
Late
Late
On time
Late
Not submitted Late
Not submitted Late
On time
On time
Sendout Mar
08
On time
On time
On time
On time
On time
On time
On time
Late
Not submitted Not submitted
Not submitted Late
Not submitted Late
Not submitted Not submitted
Not submitted Not submitted
Not submitted Not submitted
On time
On time
Sendout Apr Send out Send out
08
May 08 June 08 Total points
On time
On time
24
On time
On time
24
On time
On time
24
On time
On time
20
On time
Late
20
On time
On time
18
On time
Not submitted
Late
Late
Not submitted
Not submitted
Not submitted
Late
On time
Late
Late
on time
Not submitted
Not submitted
on time
Late submission
16
16
11
10
7
1
1
No Rating
No Rating
Data Analysis
• Annually, the data collected is analysed to provide a
comprehensive view of the distribution and
effectiveness of aid
• The reports (www.finance.gov.mw) look at:
•
•
•
•
Aid by donor
Aid by modality
Aid by national development strategy theme and functional sector
Aid Effectiveness (Predictability of aid; Proportion of aid
administered through the budget)
• Aid dependency (GDP, budget, development expenditure)
• Sector level analysis has been done for the 2007/08 FY annual
report.
Data Analysis
Apart from the annual reports we also produce
• Quarterly Monitoring Reports for externally funded
projects and programmes
• The Aid Atlas which illustrates as donor involvement at
sector level
Aid by Development Partner in
2007/08 FY
Actual Disbursements 06/07
Donor
DfID
World Bank
EU
Norway
USAID
UN System
UNICEF
UNFPA
WFP
UNDP
FAO
WHO
ADB
GTZ
JICA
CIDA
Ireland
KFW
Total
Of which
humanitarian aid
DfID
EU
WFP
Total
MWK
16,370,155,476
6,254,248,402
8,507,084,917
8,636,581,618
5,052,439,387
7,331,976,213
2,249,166,835
US$
117,935,632
44,926,221
61,104,104
62,182,116
36,290,677
52,706,618
16,169,430
3,867,218,117
858,090,889
293,326,615
64,173,755
3,977,997,976
1,208,781,904
2,465,064,403
1,862,980,325
27,794,236
6,175,195
2,107,675
460,081
28,587,375
8,704,549
17,709,056
13,393,106
928,115,350
62,595,425,971
6,670,732
450,210,186
1,386,988,741
9,981,944
3,867,218,117
5,923,572,199
27,794,236
42,569,171
Actual Disbursements 07/08
Proportion of
Proportion
Total
MWK
US$
of Total
MWK
26.15
18,412,619,066
131,284,747
24.12
9.99
11,236,104,291
80,165,252
14.72
13.59
10,936,941,358
77,953,179
14.33
13.80
9,747,429,674
69,546,626
12.77
8.07
7,904,734,796
56,339,994
10.35
11.71
7,839,418,524
55,883,902
10.27
3.59
3,815,768,030
27,214,016
5.00
1,310,462,261
9,329,204
1.72
6.18
1,191,855,106
8,484,883
1.56
1.37
1,166,300,677
8,322,188
1.53
0.47
224,851,648
1,605,078
0.29
0.10
130,180,803
928,533
0.17
6.36
3,545,876,136
25,270,392
4.64
1.93
2,540,752,928
18,104,550
3.33
3.94
2,218,141,987
15,784,000
2.91
2.98
1,098,681,836
7,829,450
1.44
442,862,411
3,152,088
0.58
1.48
418,497,816
2,985,904
0.55
100.00
76,342,060,824
544,300,083
100.00
74,978,486
109,489,643
701,624,085
886,092,214
535,055
779969.67
4,995,257
6,310,282
Projected Disbursements 08/09
US$
15,044,530,222
12,173,457,874
4,963,248,098
6,664,239,322
10,785,111,428
13,457,945,737
4,163,005,910
0
6,223,211,180
3,071,728,647
0
0
7,208,618,140
719,651,418
2,316,566,272
1,668,519,701
0
1,667,376,979
76,669,265,191
107,079,955
86,645,000
35,326,087
47,432,950
76,763,397
95,787,386
29,630,336
0
44,293,917
21,863,133
0
0
51,307,585
5,122,143
16,490,364
11,875,746
0
11,867,612
545,698,225
Proportion of Total
19.62
15.88
6.47
8.69
14.07
17.55
5.43
0.00
8.12
4.01
0.00
0.00
9.40
0.94
3.02
2.18
0.00
2.17
100
Aid by Sector in 2007/08 FY
Graph 1: Donor allocations by sector
Agriculture
Democratic Governance
Economic Governance
1.4%
1.3%
Education
7.8%
10.4%
0.1%
3.1%
4.6%
Energy and Mining
Environment, Lands and Natural Resources
5.0%
Gender, Youth Development and Sports
13.2%
1.9%
Health
0.3%
ICT and R&D
Integrated Rural Development
Public Administration
12.0%
Roads, Public Works and Transport
Tourism, Wildlife and Culture
30.8%
0.2%
Trade, Industry and Private Sector Development
Vulnerability, Disaster and Risk Management
Water, Sanitation and Irrigation
5.8%
2.0%
Aid by MGDS theme in 2007/08
Graph 2: Donor Disbursements by MGDS theme
21.3%
27.4%
5.2%
1.4%
44.8%
Sustainable Economic Growth
Social Protection
Social Development
Infrastructure
Good Governance
Aid by Mode of Delivery in 2007/08
Modality
Budget Support
Pooled Funds
Project Support
Grand Total
Donor
DFID
EU
World Bank
Norway
Total
DFID
Norway
World Bank
Total
EU
USAID
World Bank
UN System
UNICEF
UNFPA
UNDP
WFP
FAO
WHO
DFID
Norway
ADB
BMZ
JICA
CIDA
Irish Aid
KfW
Total
Kwacha
6,223,454,791
2,708,386,124
2,802,648,001
1,578,798,014
13,313,286,930
7,049,719,824
3,822,866,513
580,199,465
11,452,785,803
8,119,065,591.00
7,904,734,795.76
7,853,256,826.00
7,137,794,440.44
3,815,768,030.05
1,310,462,260.78
1,166,300,677.67
490,231,020.83
224,851,647.61
130,180,803.50
5,064,465,963.97
4,345,765,147.00
3,545,876,136.00
2,540,752,928.00
2,218,141,987
1,098,681,836.00
442,862,411.00
418,497,816.00
50,689,895,878
75,455,968,610
($)
Proportion
44,411,248
19,307,356
20,000,000
11,274,554
94,993,158
50,262,822
27,307,552
4,150,000
81,720,374
57,865,853
56,339,994
56,015,252
50,888,645.00
27,214,016
9,329,204
8,322,188
3,489,626
1,605,078
928,533
36,075,622
30,964,519
25,270,392
18,104,550
15,784,000
7,829,450
3,152,088
2,985,904
361,276,269
537,989,802
18
15
67
100
Aid in Support of Programme Based
Approaches in 2007/08
Programme Base Approach Donor
Value of Support (K)
DfID
6,223,454,791
Budget Support
EU
2,708,386,124
Norway
1,578,798,014
World Bank
2,802,648,000
Total
13,313,286,929
DfID (pooled)
5,415,477,970
Health SWAP
Norway (pooled)
2,787,955,805
ADB (project)
311,805,650
UNICEF (project)*
239,000,000
Other Discrete Donors*
105,000,000
Total
8,859,239,424
World Bank
580,199,465
NAC Funding
DfID
562,009,121
Norway
776,124,102
Total
1,918,332,688
1,072,232,733
Agricultural Inputs Subsidy DfID
Norway
258,786,607
Total
1,331,019,340
Grand Total
25,421,878,381
Proportion of Total
Value of Support ($) Support (%)
44,411,248
19,307,356
11,274,554
20,000,000
94,993,158
18
38,625,571
19,904,910
2,227,951
1,703,541
748,418
63,210,391
12
4,150,000
4,000,640
5,551,603
13,702,243
3
7,636,611
1,851,039
36,892,137
2
192,643,727
34
Predictability of Project Support
Graph 4: Predictability of Project Support, 2007/08
100
80
Percentage Variance
60
40
20
-
(20)
(40)
(60)
(80)
BMZ
World Bank
UNICEF
Norway
UNDP
EU
WFP
WHO
CANADA
JICA
FAO
DFID
USAID
ADB
KFW
Donor
Predictability of Budget and Pooled
Support
Modality
Donor
Budget Support DfID
EU
Norway
ADB
World Bank
Health SWAP DfID
Norway
World Bank
DfID
NAC
Norway
World Bank
Agricultural Inputs DfID
Norway
Subsidy
Projection
Q3
Q4
Actual
Q2
Total
Q1
Q2
Q3
Q4
Total
Currency Q1
Variance
GBP
22,000,000
22,000,000
22,000,000
22,000,000
Euro
(24)
8,000,000
9,000,000 17,000,000
8,000,000
60,480 4,805,168 12,865,648
NoK
40,000,000
20,000,000
60,000,000
40,000,000 20,000,000
60,000,000
UAC
14,900,000
14,900,000
(100)
USD
20,000,000
20,000,000
20,000,000
20,000,000
GBP
No quarterly projections provided
0
19,267,100 7,920,300
8,040,500 3,306,320 19,267,120
NoK
52,500,000
52,500,000 105,000,000
67,500,000
37,500,000 105,000,000
USD
No quarterly projections provided
10,000,000
(100)
GBP
No quarterly projections provided
2,000,000
2,000,000
2,000,000
NoK
30,000,000
30,000,000
30,000,000
30,000,000
USD
2,000,000 3,500,000 9,000,000 4,150,000
4,150,000
(54)
3,500,000
GBP
3,795,240
2
3,795,240
3,795,240
73,880 3,869,120
NoK
10,000,000
10,000,000
10,000,000
10,000,000
-
Reporting Aid on the budget
Graph 5: Proportion of Aid using Budget Execution Procedures
100
90
80
Percentage of Aid on Budget
70
60
50
40
30
20
These donors channelled no funds through the Government of
Malawi Budget in 2007/08
10
-
ld
or
W
n
Ba
k
fID
D
EU
ay
B
AD
N
w
or
W
Kf
U
N
D
EF
IC
N
P
A
C
JI
A
ID
C
U
Development Partner
BM
Z
O
FA
O
H
W
A
FP
N
U
U
ID
SA
FP
W
s
Iri
h
d
Ai
Direct Project Support - Analysis by Donor
- Av. Disbursement Rates vs Project Ages -
Direct Project Support - Analysis by Sector
- Av. Disbursement Rates vs Project Ages Gender, Youth Dev elopment & Sports
Economic Gov ernance
Env ironment, Lands & Natural Resources
Public Administration
Tourism, Wildlife & Culture
Vulnerability , Disaster & Risk Management
Tota l
D isb u rse m e n t
R a te
Water, Sanitation & Irrigation
Trade, Industry & Priv ate Sector Dev elopment
Proje ct Ag e
R a tio
(Ag e /Pe riod )
Education
Agriculture
Integrated Rural Dev elopment
Health
Democratic Gov ernance
ICT and R&D
Roads, Public Works &Transport
Energy & Mining
0%
20%
40%
60%
80%
100%
120%
140%
Direct Project Support
- Over-aged Projects Cumulative Undisbursed
Balance
Average Disbursement
Rate
Overage Months
Number of Projects
25-36
5
16,070,375
65.7%
19-24
10
5,792,780
92.7%
13-18
19
29,982,837
88.0%
7-12
11
62,309,022
66.8%
1-6
24
38,783,027
70.0%
Total
69
152,938,042
76.6%
Achievements
• November 2008 Government launched the 16 sector
working groups as a means of implementing the
Development Assistance Strategy (DAS)
• Donor membership of SWGs enables DPs to participate
in monitoring sector performance against mutually
agreed objectives
• Malawi adopted AMP which has deepened the analysis of
aid flow as illustrated in the Malawi Aid Atlas. The Atlas
illustrates donor involvement at sector level by
capturing the level of financial resources disbursed
• Division of labour is emphasised as a mechanism for
reducing fragmentation and enhancing effective delivery
of aid
Challenges
Progress in Malawi has been made in spite of a number
of challenges
• Some donors remain reluctant or unable to provide
data regularly: UN agencies are particularly culpable,
but intermittent problems exist with most donors;
• Quality assurance of data remains difficult:
information is taken on trust
• Whilst there is a criteria of including aid on the
national budget there are still exists gaps in
definitions
• Aid flow projections – preferably monthly or quarterly
will assist in analysis
Vision for the Future
• We will strive to improve the process and outcomes of
tracking aid through improved collection and analysis of
aid data and increased accountability
• Changing the way donors operate through aligning their
procedures/practices with Government systems;
• Provide limited access to donors to record information
directly in AMP, of course this is subject to further
discussions with GDI and donors;
• Extend usage of AMP to implementers of donor funded
projects and programmes in Government
Where IATI can Add Value
• In the case of Malawi IATI would very much help on
Information on non-DAC and NGOs in areas of aid
predictability and transparency
• Provide agreed aid information definitions and
classifications
• Given the experiences and lessons, Malawi is well
positioned to provide practical pilots to the IATI
concepts
• Capacity building in the Ministries of Finance and
Development Planning and Coorperation
Zikomo
Thank you