European Commission DG DEV B2 CONDITIONALITY REFORMULATED THE BURKINA FASO PILOT CONDITIONALITY REFORMULATED THE BURKINA FASO PILOT

European Commission DG DEV B2 Conditionality Reformulated The Burkina Faso Pilot MANDATE - December 1996 Four objectives: to improve government ownership to smooth aid flows and reduce lumpiness and number of disruptive suspensions; to enhance aid effectiveness through monitoring of performance indicators for the areas of budget management and of equitable growth; and to improve donor co-ordination.

European Commission DG DEV B2 Conditionality Reformulated The Burkina Faso Pilot Chronology Agreement given by Burkina Faso Government in 1997 Two missions in 1998 Two missions in 1999 Final mission June 2000 Involved: B, Dk, D, F, J, Nl, CH, EC, WB, A, C, UNDPIMF

European Commission DG DEV B2 Ownership was limited to few individuals Reform objectives and expected results are not explicit or well known in gvt Neither side inclined to measure effectiveness of policies Burkina is a good performer - yet results on the ground often disappointing Conditionality Reformulated The Burkina Faso Pilot Need to question current aid modalities confirmed

European Commission DG DEV B2 Conditionality Reformulated The Burkina Faso Pilot

European Commission DG DEV B2 Conditionality Reformulated The Burkina Faso Pilot

European Commission DG DEV B2 Ownership is not the adoption of the politically correct rhetoric Government must be sovereign in choice of policies and measures Shift from conditionality to agreement on policy objectives and more result-oriented support Conditionality Reformulated The Burkina Faso Pilot CONCLUSIONS TO DATE - Ownership

European Commission DG DEV B2 Indicators are necessary both for government and donors Possible to identify useful indicators: on service delivery in social sectors on efficiency in budget mgmt in other sectors? Care is needed when government sets its objectives (trend based) Conditionality Reformulated The Burkina Faso Pilot CONCLUSIONS TO DATE - Indicators

European Commission DG DEV B2 Health indicators Fréquentation des centres de santé : nombre de nouveaux consultants/ population Taux de vaccination (distinguer privé/public) Nombre de césariennes effectuées Taux de vaccination (BCG, DTCP3, Rougeole) Nombre de 2ème consultation prénatale Coûts des services.

European Commission DG DEV B2 Education Taux brut de scolarisation (garçons/ filles) (public/privé) Taux dinscription en première année de primaire (garçon/filles) Taux de réussites aux examens primaire Nombre de livres par élève (stat ou enquête) Coûts des services

European Commission DG DEV B2 Budget management Ecart entre les inscriptions budgétaires et les objectifs affichés au niveau sectoriel Taux dexécution du budget Part du budget allant aux structures les plus périphériques (par enquête) Coûts unitaires de produits de consommation dans les marchés publics/ achats locaux du secteur privé (ou bailleurs de fonds) (par enquête) Délais de paiement des fournisseurs

European Commission DG DEV B2 Conditionality Reformulated The Burkina Faso Pilot

European Commission DG DEV B2 Link between results and disbursement is necessary for transition from traditional dialogue The disbursement of funds should be graduated A shift to performance based disbursement must be gradual Conditionality Reformulated The Burkina Faso Pilot CONCLUSIONS TO DATE - Aid flows

European Commission DG DEV B2 International developments make focus on performance a necessity (HIPC II, PRSPs) Focus on policy objectives and performance leads to broader dialogue and... to a contractual relationship based on mutual obligations. Conditionality Reformulated The Burkina Faso Pilot MAIN CONCLUSIONS

European Commission DG DEV B2 Conditionality Reformulated The Burkina Faso Pilot New mechanism for EC Quick Disbursing Support Evaluated by IMF Disbursed in all or nothing form Basic Resources Macroeconomic support Linked to public finance mgmt Linked to social services delivery Additional Resources Additional Resources (disbursed in graduated form) Institutional support Public analysis of previous years results using efficiency indicators Public analysis of previous years results using outcome indicators Size of disbursement dependent upon achievement of targets Policy ReviewPolicy ReviewPolicy ReviewPolicy Review

European Commission DG DEV B2 Can the approach be used/adapted to other donors ? How could donors implement new approach in light of HIPC II/ PRSPs ? How to avoid opaque selectivity ? Conditionality Reformulated The Burkina Faso Pilot ISSUES FOR DEVELOPMENT