United Nations Capital Development Fund

Transcription

1 United Nations Capital Development Fund Improving Infrastructure for Service Delivery at Community Level in Africa (emphasis on West African countries), UNCDF s Experience Dr. Kadmiel Wekwete, UNCDF Director of Local Development Practice Area Yaoundé, Cameroon May

2 UNCDF Overview UNCDF was established in 1966 the by General Assembly with unique a mandate to invest in the Least Developed Countries (LDCs); to build and strengthen their economic and social infrastructure. UNCDF contributes to attainment of Millennium Development Goals (MDG) at the local level and the Brussels Programme of Action for LDCs. UNCDF offers unique combination of investment capital (grants and credits), capacity building support and technical advisory services to promote: Decentralization and Local Development. Inclusive Financial Sectors. Investments range between $200,000 and $5 million, and leverage significant local and other development partner resources. Such investments involve high risk because they are invested among the poorest and focus on building the future. Active programme portfolio: Approx. US$ 125 million covering 39 LDCs. Closely aligned with UNDP, UNCDF works jointly with other UN system partners to promote sustainable development. 1

3 UNCDF Overview: Where UNCDF Works Currently working in 38 LDCs (to be update by Adam): Currently 39 LDCs with 6 more targeted by

4 UNCDF Overview: Comparative Advantages Focus on Least Developed Countries (LDCs) and two Practice Areas with high relevance for attainment of MDGs, particularly at local level. Unique investment/capital development mandate. Investments = both means and end. Investments (block grants to local authorities and grants/credits to microfinance institutions) are necessary instruments for effective capacity building and evidence-based upstream policy advice. Recognized strong in-house technical expertise with strong presence on the ground and strong implementation capacity. Results-based management culture with demonstrated track record of achieving results that are sustainable and scalable. Risk taking and innovative approach in terms of countries, products and the collaboration with other UN and non-un partners. Successful upscaling and replication of UNCDF work by other development partners e.g. World Bank (Local Development) and private sector (Inclusive Finance). 3

5 Local Governments as Key Entry Points Local development programs use local governments as the primary entry point and build both local and national systems for local public investments. The justification for choosing local governments is to promote local democracy, local governance and sustainable local development. Local governments (rural and urban) have clear mandates to provide infrastructure and service delivery and therefore development partners have to provide both capacity building and investment support. UN strong on capacity building and building systems of investment at local and national levels. 4

6 Infrastructure for Service Delivery Infrastructure is an umbrella term for many activities referred to as social overhead capital by development economists (Hirschman).For the low-income countries, basic infrastructure - water, irrigation, feeder roads- is the engine to economic growth. Infrastructure can deliver major benefits in economic growth, poverty alleviation and environmental sustainability provided the services respond to effective demand efficiently. Infrastructure typically represents about 20% of total investment and 40-60% of public investment. Public investment on average ranges 2-8% of GDP. 5

7 Types of Local Infrastructure Distinction made between Economic and Social infrastructure (World Development Report 1994). Public and private sectors are critical in the planning production and delivery of infrastructure in different combinations. Central and local governments are usually held accountable for the delivery of these infrastructure from which many services are generated. Economic Infrastructure: long-lived engineering structures, equipment and facilities: power, electricity, telecommunications, water supply, ports, waterways. Social Infrastructure: education, social services, health care. 6

8 Decentralization Improves Infrastructure Delivery at Local Levels Decentralization reinforces subsidiarity and makes local levels accountable for decision making in infrastructure and service delivery. Decentralization defines mandates and roles of sub-national entities, and through fiscal decentralization ensure provision of resources at local levels. Decentralization promotes allocative and productive efficiency. It promotes at the local levels, delivering services that are consistent with the preference of citizens and are citizen focused; which usually costs less than when services are delivered from outside. 7

9 World Development Report 1994 Messages on Infrastructure for Development Infrastructure can deliver major benefits in economic growth, poverty reduction and environmental sustainability. Need to ensure that incentives for the providers are right commercial management,wherever possible, competition and stakeholder involvement. Manage infrastructure like a business and avoid bureaucratizing and politicizing it. Introduce competition through competitive bidding to put pressure on suppliers to be efficient and accountable. This is very important for local and central governments also to curb corruption. Give the users and other stakeholders a strong voice and responsibility, in planning, prioritization and implementation. Central and local governments are key players to create policy and regulatory frameworks to guard public interest. 8

10 UNCDF - Experience Globally Shift from stand alone infrastructure support to an institutionally based framework, focusing on local governments. Supporting a clear definition of mandates at local government levels and promoting partnerships with central government, private sector and community based groups. Making infrastructure and service delivery pro-poor and demand driven. Create mechanisms that support local governments to engage and plan to reflect the important community priorities. Focus on rural environments and therefore make local development investments focus on specific rural economy needs agriculture, roads, natural resource management. Limited urban investments except for the small secondary towns embedded in the rural regions. Increasing emphasis is on agriculture related activities as the basic social services have been the focus of governments in the last 20 years. 9

11 UNCDF - Experience Globally continued UNCDF capital grants provided to local governments show a strong focus on basic infrastructure services(economic and social).these include education, health, water supply, community facilities, markets, agriculture and natural resource management, roads, bridges and culverts. This demand is reflected on the discretional capital block grants provided by UNCDF and does not reflect the flows through central transfers (conditional, unconditional and equalization grants). This demonstrates the huge deficit that continues to exist in many of the LDCs to satisfy the basic millennium goals. Local governments which are at the front end of the demands expressed by the local communities shoulder the burden. 10

12 Outreach of UNCDF Local Development Investments During 2007 Country/Project No. of Countries Local Gov ts Supported Average Local Gov ts per Country No. of Projects Beneficiaries (Millions) West Africa Eastern/Southern Africa Asia (includes Yemen) Latin America TOTAL ,

13 Expenditure and Types of Local Development Investments During 2007 Type of Investment No. of Projects Investment (in $ Millions) Average Unit Cost (in Dollars) Percentage of Projects Education ,013 12% Health ,553 5% Water Supply ,754 30% Local Governments, Community Facilities ,193 1% Markets, Agriculture, Natural Resources Management ,292 43% Roads, Bridges, Culverts ,457 9% TOTAL 1, , % 12

14 Local Development Investments by Sector in

15 UNCDF Pro-Poor Infrastructure and Service Delivery: Sector/Local Coordination 2003/4 Study focused on Uganda, Mali, Senegal and Ethiopia and made critical recommendations to central and local governments on Infrastructure and Service delivery. Need to delineate and coordinate linkages between central government and local governments in Infrastructure & Service Delivery(ISD). Local governments have capacity to plan and deliver, ensuring adequate Operations & Maintenance (O&M). Intensity and complexity of linkages is most evident in health, education, transport and a variety of extension services. Far too often central government departments ignore or overlook local governments which undermines local planning and prioritization. Many lessons exist in infrastructure facility being provided(health service or education) and lacking staff and equipment because the sector was not involved in planning. 14

16 UNCDF Pro-Poor Infrastructure and Service Delivery: Financing Pre-announced and pre determined capital allocations make planning meaningful and improves community interest and downward accountability on the part of Local Authorities (Las). Local Governments (LG) discretion over capital funds is very critical to encourage ownership, flexibility and accountability. Far too often they are in a recipient position which does not help them to grow. Financing instruments should be designed to improve LG performance and encourage compliance with LG statutory provisions. Own source revenues are the key to the future sustainability of providing ISD. 15

17 UNCDF Pro-Poor Infrastructure Service delivery: Planning and Budgeting Lessons Planning for Infrastructure and Service delivery must go beyond immediate assessment needs and should look at long-medium term issues; cost benefit and O&M. Inclusive planning, particularly involving other lower structures, marginalized groups and civil society is critical for enhancing local ownership and legitimacy. Flexibility is called for in procurement taking into account rural and urban needs, and ensuring that necessary capacities are built. Connection between capital and recurrent budgets need to be clearly established and articulated. 16

18 Performance Based Funding for Local Governments Accessing capital funding by local governments must be based on meeting the minimum conditions based on the statutory provisions as stipulated in local government statutes and regulations. Ensuring performance requires a set of performance measures and these include: quality of planning, fiscal effort, compliance with procurement procedures, financial management, transparency, operations and maintenance. A combination of minimum conditions and performance measures is an important way of reinforcing LGs as providers of public goods. 17

19 UNCDF in West Africa 2008 UNCDF operates in 10 countries in West Africa: Benin (Borgou) Burkina Faso (Namatenga) Guinée Conakry (Siguiri and Kouroussa) Guinée-Bissau (Gabu) Liberia(national programme) Mali (Mopti and Timbuctou) Mauritanie (Kiffa) Niger (Mayahi et Diffa), Senegal (Louga), Sierra Léone (Kenema) UNCDF is expecting a growth in the number of intervention countries in West Africa from 10 currently to 14 by

20 Summary of Some Key Achievements in West Africa Investments to Promote Sustainable Livelihoods Burkina Faso: Strong focus on investments in Natural Resource Management (NRM) and food security; Support to irrigation infrastructure investments which reclaimed 361 hectares of desert land for agriculture, now producing 126 tons of paddy rice and 90 tons of vegetables. Niger: Strong focus on natural resource management and food security; Reclaimed 510 hectares of land and increased local production of food staples; Supported 262 women groups and set up rural cereal banks. Senegal: Strong focus on local economic development and ISD; Supporting national development system for decentralization and local development. 19

21 United Nations Capital Development Fund Investing in the Least Developed Countries Yaoundé, Cameroon May