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Achieving the Sustainable Development Goals in the Era of the Addis Ababa Action AgendaDevelopment Finance Assessments as a tool for Linking Finance with Results

Disclaimer: The views expressed in this publication are those of the authors and do not necessarily represent those of the United Nations, including UNDP, or the UN Member States or the AP-DEF and its development partners.

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Contents

1. Introduction . . . . . . . . . . . . . . . . . . . . . . 1

1.1 Context for Development Finance Assessments . . 1

1.2 Development Finance Assessments as a tool in the context of the Integrated National Financing Frameworks . . . . . . . . 2

1.3 What does the Development Finance Assessments offer? . . . . . . . . . . . . . . . . 3

1.4 What are the origins of the Development Finance Assessment? . . . . . . . . . . . . . . 4

2. What is a Development Finance Assessment?. . . 6

2.1 Purpose and objectives . . . . . . . . . . . . . 6

2.2 Overall approach . . . . . . . . . . . . . . . . . 7

2.3 Analytical framework . . . . . . . . . . . . . . 8

3. How to get started . . . . . . . . . . . . . . . . . 12

4. Links to Asia-Pacific Development Effectiveness Facility platform and resources . . . . . . . . . . 14

1Achieving the Sustainable Development Goals in the Era of the Addis Ababa Action Agenda

1. Introduction

1.1 Context for Development Finance Assessments

The Agenda 2030, with its ambition of being transformational, presents significant challenges for governments, in particular for their fiscal planning and budgeting capacity. At the same time, many developing countries are facing an increasingly complex landscape of development finance to manage at national level. Many countries are experiencing a shift in flows as domestic public and private resources increase, and the sources of external resources diversify.

To realise the ambitious Sustainable Development Goals (SDGs) will require a significant increase in investments. The cost of the SDGs is estimated in the trillions of dollars, at levels well beyond the resources currently available to countries. Meeting these investment needs will require raising and mobilising significant additional resources from multiple sources. But it will also require using and channelling resources efficiently. All actors – public and private, domestic and international – have contributions to make. Using resources effectively will mean these resources working to their comparative advantages in meeting a variety of types of investment needs.

Figure 1.1: Where is the need for the Development Finance Assessments? Linking Finance with Results

Financing for development in the Asia-Paci�c region has seen increases in both variety and scale over the past 10 years ...

... leading to success in reaching some developmentaltargets, although significant challenges still remain.

Integrated National Financing Frameworks (INFFs)can help governments address these challengesby strategically managing finance to achieve results.

Including a lack of clarity about the amount andtype of resouces required and how they can be best channeled for results to be achieved ...

Domesticprivate

Internationalprivate

Domesticpublic

Internationalpublic

Domesticprivate

Internationalpublic

Internationalprivate

Domesticpublic

MDGs

2015 2030

SDGs

Economicindicators

Socialindicators

Environmentalindicators

2005USD$ 3.8tn total

2014USD$ 8.9tn total

International private

International public

Domestic public

Domesticprivate

DEVELOPMENT FINANCE ASSESSMENTS 2

Meeting financing challenges will require countries to take a more strategic, holistic approach to mobilising and fostering financing. They must also make efforts to open the black box that often exists between finance and results, thereby allowing them to strategically manage finance to achieve the desired results at country-level.

The Third International Conference on Financing for Development (FfD) held in Addis Ababa in July 2015 opened the discussions on how to mobilise the unprecedented amounts of financial resources that will be required to achieve the SDGs. The Addis Ababa Action Agenda (AAAA) assumes that countries will use their own national development strategies and plans to respond to the SDGs and calls for the adoption of Integrated National Financing Frameworks (INFFs) as detailed in Figure 1.2 below.

Governments are now taking steps to create INFFs in order to link finance with results with the use of INFFs. They are requesting support from UNDP Country Offices to take forward policy and institutional reforms that enable a more integrated management of a broader set of finance flows to support the implementation of their national priorities and the SDGs. The Development Finance Assessment (DFA) is a tool used to accomplish this (see Figure 1.3 for information on government action).

1.2 Development Finance Assessments as a tool in the context of the Integrated National Financing Frameworks

Figure 1.2: What does an Effective System for Financing the SDGs at the country level look like? Building Block of the Integrated National Financing Frameworks

To move ahead on the 2030 Agenda, countries recognize the need to consider their current and future financing frameworks for delivering the SDGs. This Agenda requires both significant increases in resources as well as changes in the way existing resources are used and prioritized, calling for more effective integrated approaches to managing public and private finance to achieve sustainable development. INFFs can help governments develop a holistic vision of fiscal planning and management that transcends traditional public financial management and identifying incentives to align resources of private nature. As such, INFFs provide government with a comprehensive overview of the various entry points and options available as well as an understanding of how to use them strategically.

Building Blocks of the INFF

1 Leadership and institutional coherence

2 Vision for results

Long-termvision

Government action

Gove

rnm

ent i

n�ue

nce o

ver in

vestm

ents

Investment outputs Investment outcomes Results

Less direct

More direct

Link toSDGs

Medium-termdevelopment plans

Annual resultsplans

Privatesector

Internationalcommunity

Civilsociety

Costedtargets

Internationalprivate�nance

Domesticprivate�nance

Domesticpublic

�nance

Internationalpublic

�nance

5 Monitoring and evaluation

3 Strategic financing policy

4 Financing policies for specific flows

6 Accountability and dialogue

http://www.un.org/esa/ffd/wp-content/uploads/2015/08/AAAA_Outcome.pdf


As many countries are establishing INFFs, it is clear that doing so is an ambitious long-term endeavour but findings also demonstrate that a number of on-going policy and institutional reforms in the area of public finance and results-based management provide countries with a good starting basis to build upon. As detailed in Figure 1.2, the INFF is seen to have the following building blocks:

� Institutional coherence for establishing and managing an INFF: aspects will include leadership, coordination and political buy-in at the highest levels of government, as well as dialogue at various levels

� A national development vision/plan with well-articulated set of priorities and results related to the SDG agenda, including costed targets and indicators in long term, medium term, and annually

� An overall financing strategy that links national development results with sources of finance, with attention to long, medium and annual results

� Financing policies for specific finance flows: domestic public, international public, domestic private, international private

� A system for monitoring and evaluation of the effective use of finance for results, in various time frames

� An enabling environment for accountability and dialogue at both political and technical levels for the use of finance for results

1.3 What does the Development Finance Assessment offer?

UNDP’s Bangkok Regional Hub, in serving as the Secretariat for the Asia-Pacific Development Effectiveness Facility (AP-DEF) has been developing the Development Finance Assessment (DFA), a tool to respond to the growing demand from countries in the region to establish evidence and analysis, and introduce policy and institutional reforms for managing the increasing complexity of domestic and international sources of finance for development. DFAs were introduced as the very first development finance studies of their kind, seeking to bring together fragmented approaches on the use of the different sources of funds that may not all be primarily dedicated to address development challenges.1

The DFA provides governments with data and analysis on the quality of their national development strategies/plans and country results frameworks, changing trends in development finance and their alignment with national priorities and results. It aims to examine aspects that affect the national development planning and budgeting, including macroeconomic context, national development plans, relations between national planning and budgeting, progress on MDGs and readiness for SDGs. The analysis on financial flows should include a comprehensive analysis of each individual financial flow and their respective relevance to finance national development goals , with a focus on but also effectiveness. It also helps formulate recommendations for how institutions and systems might be adjusted to ensure that different sources of development finance are managed within a coherent framework, which better supports the implementation of the SDGs.

UNDP is already supporting a number of countries to implement the DFA methodology, with the use of a full detailed methodology guide published separately by UNDP.2 The findings emerging from DFAs provide useful data and analysis for discussing reforms at country level, and stimulating evidence-based dialogue and exchange among countries in the region that face similar change processes. Examples of DFAs’ impact in this area include: i) the restructuring of government departments to take a more integrated approach to managing finance for development across institutions or bringing closer together the planning and

1 Dealing with Complexity: How Governments are Managing Financing for Sustainable Development Lessons from Development Finance Assessments in Asia and the Pacific

2 Contact AP-DEF (details on last page) for the full methodology document for use at country level

https://www.climatefinance-developmenteffectiveness.org/sites/default/files/event/CFSDforum2015/financing/Dealing%20with%20Complexity_How%20Governments%20are%20Managing%20Financing%20for%20Sustainable%20Development.pdf



budgeting processes; ii) the development of new integrated policy frameworks that seek greater coherence across external financial flows; and iii) proposals for new policy dialogue structures for governments and their partners, providing a multi-stakeholder platform that could be used to review SDG implementation.

As an action oriented diagnostic tool, the DFA provides both the baseline and the road map for implementing reforms needed for countries to adopt INFFs. To stimulate further learning on what challenges will need to be addressed in developing INFFs, UNDP is building on on-going discussions in several countries in the region who have embarked in a process towards localizing the SDGs, while exploring different avenues of resource mobilization to finance development.

How are DFAs benefiting countries?

• In the Philippines, the DFA informed the Development Finance Chapter of Ambisyon 2040, the country’s Long Term Vision approved by the President

• Papua New Guinea has drawn on the DFA to formulate the Development Cooperation Policy • In Lao PDR, the assessment has been used to inform thinking around the evolution of the Round Table Process • In Bangladesh the government is taking forward groundbreaking institutional restructuring within the Ministry of Finance to more effectively manage flows of development finance as identified in the DFA

• In The Gambia, the DFA has been used to inform the national development cooperation dialogue and its resource mobilization strategy

• In Mozambique, the DFA is currently being used to strengthen government coordination, especially within the Ministry of Planning and Finance, with private sector, development partners and CSOs

• Malawi is planning to use the DFA to inform the revision of the Aid Effectiveness policy architecture, while broadening the scope beyond ODA to include consideration of other finance flows

1.4 What are the origins of the Development Finance Assessment?

Figure 1.3: Where are Development Finance Assessments taking place now?

Development Finance Assessments

Indonesia

Papua New Gueinea

Thailand

Lao PDR

Cambodia

Philippines

VietnamBangladesh

Nepal

Uganda

Mozambique

Malawi

Ivory Coast

The Gambia

Panama

BelizeEl SalvadorGuatamala

Peru

Paraguay

Mongolia

Myanmar

Cape Verde

Fiji

DFAs: Completed or Underway

� Papua New Guinea � Vietnam � Philippines � Lao PDR � Bangladesh � Myanmar

Strategic International Development Cooperation Reviews: Completed

� Thailand � Indonesia

� Fiji � Cambodia � Nepal � Mongolia � Mozambique � The Gambia

DFAs: Pipeline

� Uganda � Malawi � Cape Verde � Ivory Coast � Peru � El Salvador

� Belize � Panama � Paraguay � Guatemala


UNDP plays a critical role in supporting evidence-based dialogue, bringing in regional perspectives and facilitating experience sharing across countries. In contrast to some other international agencies focusing on specific flows, UNDP’s comparative advantage, in addition to its approach to sustainable development, lies in looking at how the interface among different flows can make a difference for sustainable development and ensure that the potential of each critical flow of resources can be harnessed to support the implementation of the SDGs when matched with adequate policy and institutional reforms. Such an approach focuses on policy development, strengthening institutions and systems needed to mobilise resources and maximise their use for development impact.

With its long-standing experience in capacity development, UNDP is well-positioned to play a catalytic role in supporting country efforts to establish their INFFs, ensuring stronger links and cross-sectoral coordination between finance and results through more integrated fiscal planning and budgeting processes. The DFA is a cross-disciplinary endeavour involving experts with a strong focus on development finance, the development effectiveness agenda, Agenda 2030 and South-South cooperation. The DFA process engages the UNDP regional hubs and country offices to promote peer to peer and South-South learning in order to enhance mutual benefit from the lessons derived from the assessment.

In taking forward the DFAs in the Asia-Pacific and now in Africa and Latin America, UNDP will consider a range of other tools when assessing how best to support governments to translate the 2030 development agenda into their own plans and to strengthen the management of their development financing resources.

Of course more broadly UNDP has a major role in Agenda 2030 to ensure the SDGs are integrated and balance the economic, social and environmental dimensions of sustainable development. In order to ensure the interlinkages and integrated nature of the SDGs, UNDP has developed a Rapid Integrated Assessment (RIA) tool to help countries assess their readiness for SDG implementation. The assessment is a first step in defining a roadmap for a country to implement the SDGs in the context of the national development priorities. It reviews the current national development plans and relevant sector strategies to:

� Determine SDG relevance to country context, both at the national and subnational level

� Provide an indicative overview of the level of alignment between the plans/strategies (at national or sub-national levels) and SDG targets

� Identify interlinkages across SDG targets and areas for multi-sectoral coordination


2. What is a Development Finance Assessment?

2.1 Purpose and objectives

The DFA’s general purpose can be formulated as:

To support government’s capacity to establish Integrated National Financing Frameworks (INFFs) designed to catalyse the resources needed to achieve their development priorities and results in the SDG context; Goals and to develop targeted, evidence-based policies and sound institutional solutions to implement them.

As such, the DFA is a useful tool for governments and their partners to identify opportunities and gaps towards establishing INFFs.

Overall objectives

• Establish a baseline for assessing the extent to which an INFF or some of its building blocks are already in place

• Provide a roadmap for implementation to help governments put in place the building blocks of an INFF, building on on-going policy and institutional reforms to take forward the DFA findings and recommendations

• Identify the specific roles and responsibilities of the government entity commissioning the DFA in taking forward some of the forthcoming recommendations that may fall beyond its mandate

Assessment objectives

• Provide an overview of the evolution of the flows of financing for development and their allocation and contribution to national priorities and results

• Assess the links between finance and results through the relations between the national planning and budgeting processes

• Assess the roles and responsibilities of national institutions in managing or influencing the development of individual financial flows

• Analyse the interface between different flows and both the complementarities and overlaps between the different sources of development finance in contributing to achieve sustainable development

• Assess the current institutional capacity, strategies and plans to respond to the SDGs

Improvement objectives

• Propose practical ways of strengthening the alignment of development finance with national priorities and results through relevant policy and institutional reform recommendations

• Draw together existing resource mobilisation projections and scenario analysis around selected priority flows

• Help governments develop the capacities needed to implement their national plans and strategies through evidence-based dialogue, results-oriented policies, and sound institutional solutions and systems

• Provide opportunities for country stakeholders to exchange experiences and ideas with other countries in the region

• Set in motion the strengthening of cross-government coordination


2.2 Overall approach

The DFA approach and analytical framework are guided by the following principles:

i) Use of existing data and policy analysis: The DFA does not involve primary data collection and research, but aims to aggregate existing data and analysis around different flows of development finance. Rather than duplicating highly technical assessments that are beyond the boundaries of the DFA methodology3, the DFA draws on existing assessments, data, and studies which are relevant to aspects of the INFF and to the objectives of the DFA.

ii) Focus on linking finance with results: The DFA suggests policy options for governments to consider maximising the use of existing resources to finance their development priorities in the context of the SDGs. That is, the DFA introduces the INFF as a practical and conceptual framework that will help governments work through the complexities of managing different types of finance to meet national results and the SDGs.

iii) An action-oriented diagnostic tool: Establishing an INFF is an ambitious and long-term endeavour. The DFA is a useful tool contributing to establish the baseline for developing an INFF and the roadmap for implementing the recommendations that emerge from the assessment.

Figure 2.1: The analytical boundaries of the DFA

3 Such as the analysis presented in PEFA, PER, CPEIR and other reports

Other Assessments

- Country Risk Assessment- IMF Article IV Assessments- Public Private Partnership (PPP) Assessments- Foreign Direct Investment (FDI)

Country Note (UNCTAD)- Aid for Trade Assessments- World Bank Migration and

Remittances Country Note

Climate Finance

- Climate Public Expenditure and Institutional Review (CPEIR)

- Climate Change Financing Frameworks (CCFF)- Mapping of Private Sector Climate Finance- Green Development Strategies- Intended Nationally Determined

Contributions (INDCs) Documents- Reducing Emissions from Deforestation

and Forest Degradation (REDD+) Assessments

Private Sector Development Performance

- Ease of Doing Business Report (World Bank)- Global Competitiveness Report

(World Economic Forum)- Index of Economic Freedom (Heritage Foundation)- Investment Survey (Commonwealth Business Council)- Business Environment and Enterprise

Performance Survey (European Bank for Reconstruction and Development)

- Entrepreneurship (Global Entrepreneurship Monitor)

MDG Assessment

- Implementation - Performance- Reports

SDG Readiness

- Country Response / Localisation of SDGs- Costing of the SDGs- Rapid Integrated Assessment (RIA) (UNDP)- Mainstreaming, Acceleration, and Policy

Support for the 2030 Agenda (MAPS) (UNDG)

Planning and Budgeting

- Public Expenditure and Financial Accountability(PEFA): Policy Based Budgeting

- Country Policy and Institutional Assessment (CPIA) (World Bank)

- Busan Indicators- Development E�ectiveness Reports

Public Expenditure and Financial Accountability (PEFA)

- Budget Credibility- Comprehensiveness and Transparency- Predictability and Control in Budget Execution

- Macro/Fiscal - Revenues- Debt Sustainability- Plans/Budgets- Sectoral Expenditure- Medium Term Expenditure Framework (MTEF)

Public Expenditure Review/Public Expenditure and Institutional Review (PER/PEIR)

- Fiscal Report on the Observance of Standards and Codes (ROSC) (IMF)

- Commonwealth PFM Self Assessment Tool (CPFM-SAT)

- Open Budget Index (OBI) (International Budget Partnership)

- Chartered Institute of Public Finance and Accountancy (CIFPA) Toolkits

- Country Policy and Institutional Assessment (CPIA) (World Bank)

Other Public Financial Management (PFM)

CUSTOM DFA REPORT

- Macroeconomic Stability- E�ciency of Public Spending- Quality of Public Financial Management (PFM)- E�ectiveness of O�cial Development

Assistance (ODA)- Climate Finance- Private Sector Development Climate- Banking (private + public)


2.3 Analytical framework

In order for governments to achieve national development goals and the SDGs, they will need to establish comprehensive, long term approaches to aligning finance with results, taking into account the need for coherence across institutions, policies, and systems. The INFF helps them do this.

The DFA is a tool which can assist governments in determining the extent to which the building blocks of an INFF are in place, and where there are opportunities for reform. The DFA does this by providing governments with data and analysis on the changing trends in development finance and provoke dialogue on how institutions and systems might be adjusted to ensure that development finance is delivered in a coherent way across Government, and in support of nationally defined development results.

The DFA analytical framework is therefore directly linked to the concept of the INFF as well as its components (building blocks). The DFA analytical framework has two main parts:

(1) The DFA establishes a baseline of the existence of an INFF in the country, by looking at the degree to which the six Building Blocks are in place.

This part of the DFA will analyse in turn each of the six building blocks of: institutional coherence, a vision with results, an overall financing strategy, financing policies for specific flows, monitoring and dialogue. The analysis of the financing policies for specific flows, as indicated in the fourth building block will include a mapping and analysis of individual finance flows (summarized in the table below) and associated policy and institutional frameworks. Development finance flows are analysed according to two main categories: by source (domestic/external) and distinguishing them by public or private nature. In the course of the analysis, the DFA may also identify untapped sources of development finance the country may access in the near term and may also find duplications and overlapping sources that might be useful to take into account.

Figure 2.2: What Finance Flows are Analysed? Measuring government’s capacity to control and align finance flows with country’s priorities4

4 In this figure, the size of the circles would be proportional to the size of the flows, where their relative position on each axis would show the extent to which government can control/align the flow with country priorities. Recommendations from the DFA can envisaged policy options needed to change the size and the relative position of the flows.

Domestic

External

REV MIN

PB

SSC INV

PHIL

CFODA

NGOREM

FDI

PPP

LowDi�culty to Align with Country Priorities and Results

High

Low

Gove

rnm

ent C

ontro

l/In�

uenc

e on

Flow

s

High

Public FlowsREV – Government revenue (tax/non-tax)MIN – Mineral taxationPB – Public borrowingODA – O�cial development assistanceSSC – South-south cooperationCF – Climate �nance

Private FlowsINV – Domestic Private InvestmentFDI – Foreign Direct InvestmentPPP – Public Private PartnershipREM – RemittancesNGO – Non-governmental organizationsPHIL – Philanthropy/Corporate Social Responsibility


For each of the finance flows, the DFA aggregates existing data and analysis covering the following areas:

� Recent evolution and trends: quantitative importance of each individual flow and recent trends (last 10 years according to pre-established data series)

� Relevance and complementarity of each flow in financing development goals: government’s preferences/priorities against each flow, sector allocation, and – where applicable – by level of government (national and sub-national), coherence across policies governing different flows, linkages with national development strategies/plans and results frameworks as well as the measurability of their contribution to achieve results

� Policy and institutional setting governing and affecting the development of the flow: institutional arrangements; policies in place and coordination set up to regulate, oversee and manage these flows; degree to which government can control these flows and influence their alignment with national priorities; potential barriers in accessing them

� Availability of data and information to support policy decision making: availability and quality of evidence, including tools to record data and compatibility among differing management information systems as well as ease to collect information from a range of stakeholders

Figure 2.3: Example of trends in finance flows in Vietnam

From the DFA completed in Vietnam: more information found here.

For example, Vietnam (Figure 2.3) shows a shift of focus for bilateral cooperation: from poverty reduction to trade and from financial transfers to post-aid development partnerships. Several donors identified niche areas where they can offer a comparative advantage in policy advice and technical expertise. New assistance modalities are being designed to promote knowledge partnerships between public institutions, academic institutions and companies in Vietnam and in the donor country.

In Bangladesh, the DFA examined the development strategies/plans and country results frameworks and a major headline emerged from the analysis, which many countries across the Asia-Pacific region share: that to achieve its domestic development goals, they would need to harness private finance offers for achieving results. Bangladesh had set a goal for private investment to fund 78% (USD 319 Billion) of its 7th Five Year Plan (FYP)

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

02006

Budget revenues

Govt borrowing

ODA

SOEs

Domestic private investment

FDI

Remittances

INGOs

2007 2008 2009 2010 2011 2012

VND

billi

ons



which is estimated at USD 409 billion. It is clear from the DFA that aligning and developing non-public flows is one of the biggest challenges for the government (see Figure 2.4). The experience of the DFA has been that it has been proven to be very difficult to access and collate reliable data and evidence for many of the flows for the private sector and that the task of aligning private sector interests with country priorities is not always easy as some of these flows also undermine the SDGs. In alignment with these recommendations and the need to better direct both public and private flows to development results, the government is taking forward ground-breaking institutional restructuring within the Ministry of Finance to more effectively manage flows of development finance as identified in the DFA.

Figure 2.4: Harnessing private finance offers for achieving results in Bangladesh

Sources: Bangladesh Bank, World Development Indicators (World Bank), Ministry of Finance

(2) Based on the analysis in part (1), the DFA recommends prospective reforms to strengthen the INFF, including a Roadmap for Implementation.

Specific recommendations based on country context. While the DFA methodology has been developed for use across countries with some aspects of standardization in mind, there is an opportunity for each country/government to tailor the DFA to their specific context and needs. In identifying prospective reforms for the INFF, the recommendations in Part II may respond to a given country context in various ways, such as:

� Using the results of the DFA analysis to focus on scenarios and implications for LDC graduation, moving from LIC to MIC, etc.

� Going further in depth on specific ‘priority finance flows’

� If data is available, doing a prospective analysis of particular finance flows and presenting different financing scenarios to inform policy dialogue

30,000

25,000

20,000

15,000

10,000

5,000

02005 2006

Tax revenues

Public debt

Private Investment

Remittances

FDI

ODA

Domestic CCF

SSC

2007 2008 2009 2010 2011 2012 2013 2014


Roadmap for implementation. The DFA provides governments with policy and institutional recommendations. Part of the dialogue embedded in the DFA process aims at agreeing on a roadmap to support the government to: i) implement the main recommendations of the DFA analysis; ii) visualise the next logical and feasible steps to strengthen an INFF; and, if needed iii) to identify the basis for an INFF development support programme. Developing the Roadmap for Implementation is an important part of the DFA and may require consultation with a range of stakeholders.

Through this roadmap, the DFA provides the government with an intermediate milestone that visualises the sequencing of logical next steps and provide them with actionable suggestions for implementing the DFA findings. This may lead to further dialogue, perhaps with a wider range of stakeholders, focused on broadening country ownership for more coherent development finance management.

Table 2.5: Development Finance Assessments Report: Main Contents and Structure

Part 1: Introduction

1.1 Introduction and Objectives of DFA

1.2 Socio-economic and political context

Part 2: Baseline of INFF (structure is based on 6 Building Blocks)

2.1 Institutional Coherence

2.2 National Development Vision/Results Framework

2.3 Overall Financing Strategy

2.4 Financing Policies for Specific Finance Flows:

2.4.1 Domestic Public Finance

2.4.2 International Public Finance

2.4.3 Domestic Private Finance

2.4.4 International Private Finance

2.5 Monitoring and Evaluation System

2.6 Enabling Environment for Accountability and Dialogue

Part 3: Prospective Reforms for INFF

3.1 Conclusions and Recommendations

3.2 Roadmap for Implementation


3. How to get startedGovernment leadership and ownership of the DFA is essential. The development of INFF across a range of institutions, and the implementation of the necessary reforms to manage or influence multiple finance flows (private/public, domestic and external) for sustainable development, will all require engagement and strong leadership. The following steps are suggested as a starting point:

� Defining the DFA Host Institution. The strategic and holistic nature of the reforms proposed by the DFA will always exceed the mandate of a single ministry or government entity. The assessment will typically recommend reforms in areas that are beyond the individual jurisdiction of the Ministry of Finance, the Ministry of Planning /National Planning Commission and other Line Ministries. This is why the best possible location to host the DFA is at the President/PM Offices, but other arrangements may work if the PMO is already aware that the assessment is being carried out and interested in its results.

� Establishment of an Oversight Team. An Oversight Team should play the leadership and governance role in the assessment process. The members of the OT are drawn from the leading government entity in the assessment -typically from the Ministry of Finance- and other government agencies involved or other stakeholders, such as the Ministry of Planning or National Planning Commission, Presidential/PM Office and lead development partners.

� Appointment of the DFA Team Leader. The Oversight Team should appoint a Team Leader, who undertakes the day-to-day management of the DFA process.


Table 3.1: Steps and key milestones in undertaking a DFA

Step 1 Decision to take a DFA and institutional arrangements

OutputsDFA Concept Note

Appointment of the Oversight Team and the DFA Team Leader

• General Objectives of the Study • Preliminary overview of Available Financing and general scope of the DFA

• Establishment of the Oversight Team

Step 2 Mobilisation of the DFA team

Outputs

TOR of the DFA Team Recruitment of experts

• DFA team composition and skill mix requirements • Indicative work plan for the DFA team and budget

Step 3 Inception and start-up of the DFA

Outputs

Inception Workshop Inception Report

• Links with other assessments in progress (e.g. PFM, PEFA, PERs, etc.) • Approve objectives, scope, expected outputs, methodology • Management arrangements

Step 4 Review of fieldwork outcomes

Outputs

Interim WorkshopDFA first draft report

Flow analysis

• General data collection and analysis (formal and informal) • Finance flow data collection and analysis • Stakeholder mapping and interviews

Step 5 DFA Validation and Finalisation

Outputs

Validation Workshop Final DFA report

Implementation Roadmap

• DFA results presented to the Oversight Team for approval • Approval of the General Roadmap for Implementation • Translation of the DFA into national language

Step 6 Follow-up of the Assessment

Outputs

Agenda for follow-up action and further studies

• Publication and dissemination of the report • Implications of the roadmap for government • Subsequent coordinated actions with development partners


4. Links to Asia-Pacific Development Effectiveness Facility platform and resources

About AP-DEF–UNDP’s Bangkok Regional Hub is the Secretariat for AP-DEF, a country-led regional platform, chaired by the Government of Bangladesh, which supports Asia-Pacific countries to implement their national agendas on development finance and cooperation. The Facility is a platform for regional dialogue, cooperation, and sharing of country knowledge and experiences. It is responding to the growing demand from countries in the region to establish evidence and analysis, and introduce policy and institutional reforms for managing the increasing complexity of domestic and international sources of finance for development.

Contact information: Asia-Pacific Development Effectiveness Secretariat, UNDP Bangkok Regional Hub:Thomas Beloe: [email protected] Ashley Palmer: [email protected] Davis: [email protected]

United Nations Development ProgrammeBangkok Regional Hub3rd Floor United Nations Service BuildingRajdamnern Nok Avenue,Bangkok 10200Thailand

Email: [email protected]: +66 (0)2 304-9100Fax: +66 (0)2 280-2700Web: http://asia-pacific.undp.org

mailto:[email protected]

