Transcript 10. MfDR, Mr. Krishna Prasad Dhakal (PDF, 2.7MB)

Krishna Prasad Dhakal
Program Director
National Planning Commission Secretariat
management strategy that focuses on
using performance information to improve
decision making.
 MfDR is a
 MfDR mobilizes all human, financial,
technological and natural resources –
domestic and external – to achieve
desired development results.
It shifts the focus from inputs
(“how much money will I get,
how much money can I spend?”)
to measurable results
(“what can I achieve with the
money?”) at all phases of the
development process.
At the same time, MfDR focuses on providing sound
information to improve decision-making.
This entails tracking progress and managing business
based on solid evidence and in a way that will
maximise the achievement of results.
 MfDR implies that goals are clear,


measurable,
limited in number and concrete, with time-bound
targets.
At the same time, they must be expressed in human
terms (i.e. as development outcomes).
For this reason, MfDR is more than a methodology:
it is a way of thinking and acting, built on a
practical toolbox for improved public
management.
Source- www.oecd.org/dac/effectiveness/results
 Linking resources to results
 Improving the effectiveness of public management
 Optimum utilization of scarce resources
 Demonstrating results and value for money
 Aid-effectiveness
 Enhances government performance and accountability
through setting clear
objectives and goals,
 Evidence-based decision-making,
 Transparency and
 continuous adaptation
and improvements
 Developing performance and result culture
What is not counted?
What is counted?
How many clinics have
been built
Whether citizens’ health
has improved
How many schools have
How many girls and boys
are better educated
been constructed
How many dollars were
loaned to a country
Whether the country has
less poverty
 If you do not measure results, you cannot tell success





from failure
If you cannot see success, you cannot reward it
If you cannot reward success, you are probably
rewarding failure
If you cannot see success, you cannot learn from it
If you cannot recognize failure, you cannot correct it
If you can demonstrate results, you can win public
support
Soucrce- world bank
 MfDR concept emerged as a tool for linking outcome and
output with inputs and activities thereby improving the
effectiveness of resources spent.
 From the realization of the need for concepts that ensure
aid effectiveness (Monterrey conference on Finance and
development in Mexico, 2002) to evolution of the concept,
principles and practices (WB and Marrakech, Morocco
Round Tables, 2004) and to sharing of country practices on
MfDR in Vietnam (2007), it has attracted attention of both
donors and recipients as well as the development experts
around the world.

 At the Paris
High-Level Forum on Aid
Effectiveness (2005), donor agencies and partner
countries committed to specific action for country
ownership, harmonization, and mutual
accountability for the use of aid.
Five Principles of MfDR
1. Focusing the dialogue on results at all phases of
the development process
- Ensuring outcome and output at all phases of
development process.
2. Aligning programming, monitoring, and
evaluation with result
- Implementation strategies design to support
outcome and output.
3. Keeping measurement and reporting simple
- Designing simple indicators to measure outcome,
enhance data base and practice simple
formats for
regular reporting.
4. Managing for, not by, results
- Expected outcome and output determining
activities and inputs – reversing the conventional
trend of determining outcome based on inputs.
5. Using results information for learning and decision
making
 setting goals and agreeing on targets and strategies;
 allocating the available resources to activities that will
contribute to the achievement of the desired results;
 monitoring and evaluating whether the resources
allocated are making the intended difference;
 reporting on performance to the public;
 feeding back information into decision-making.
World bank (2004)
 Measureable Indicators
 Result matrix
 Business plan
 Result-based budgeting
 Result-based M&E
 A business plan is a formal
statement of a set of business goals,
the reasons they are believed
attainable, and the plan for reaching
those goals. It may also contain
background information about the
organization or team attempting to
reach those goals.
 The concept of business plan was
come from private sector
 Business plan is a backbone of MfDR.
 Business plan is normally prepared
for 3 years in rolling basis.
 Business plan is to update every
years because of its rolling feature.
 MfDR links macro and micro plan.
 It establishes relationships between central\periodic
plans and sectoral\ministerial plan and activities.
 Key outcomes (i.e. strategic objectives)
 Performance measures and targets
 Time frames and responsible agencies
 Expenditure/Budget estimates
 Monitoring and Evaluation mechanisms
 Critical factors for successful implementation
(key success factors)
A business plan will• Clarify thematic priority areas of interventions;
• Specify Budget allocation required for achieving
outcomes by driving the budgetary system toward a
performance base;
• Serve as a basis for negotiation between the budgetary
authority and the related organization;
A business plan will• Work as a basis for developing key performance
indicators;
• Work as a basis for performance contract with the
pilot organizations;
• Work as a basis for performance measures of the
implementation plans;
• Help in prioritizing outcomes; and
• Help in aid harmonization and aid effectiveness.
Indicative Table of Contents for the
Business Plan
 Development Context and Background
 Vision and mission, goals, mandates, objectives and
priorities
 Major problems, challenges and opportunities
(performance gaps and readiness analysis)
 Key objectives and Expected outcomes – linked to TYP
 Quantitative Targets – linked to TYP but disaggregated
for each of three year
 Strategies and Policies - linked to TYP
 Core programs to achieve the objectives and
quantitative targets (review of ongoing programs and
prioritization)
 Budget Allocation (Investment plan linked
to MTEF)
 Institutional development – address sources of
gap
identified through Readiness Assessment Analysis
 Monitoring and Evaluation
 Critical factors for successful implementation-
Risk/Assumption
APPENDICES
 Appendix I: Results Matrix ( with all the essential
components )
 Appendix II: Results Based Monitoring Framework
 Any other Appendices
Category
Impact
Outcome
Outputs
Activities
Inputs
Indicators
Means of
verifications
Risk and
Assumption
Nepal as Leader
 The Government of Nepal is regarded as a leader in
the implementation of managing for development
results (MfDR) in the South Asia region.
 It has taken concrete steps in developing some core
elements of results-based management.
 It has established an MfDR framework and put in
place mechanisms that link planning, budgeting,
project and/or program implementation, and
monitoring to development results (outputs and
outcomes).
 MfDR was started in 2007 with a technical
assistance of ADB.
 The first project (Fiscal year 2007-2009) initiated MfDR
in 3 Ministries (Education, Local Development and Physical
Planning) and 3 districts (Dang, Jumla and Jhapa).
 The second project funded by ADB (from July 2009-
introduced MfDR in 2 more ministries
(Agriculture and Energy) and 6 departments.
July 2011)
 Now 5 Ministries and 8 Departments have
prepared business plans and they are in the
process of implementation.
 Result-based budgeting (RBB) is already in
implemented in 2 Government institutions
(Department of Transport Management and Katmandu Valley Traffic
Police Division.)
 Government of Nepal is planning to continue
MfDR in above-mentioned 13 government
ministries and departments.
 GoN will introduce MfDR in other 13 (4
ministries namely Health and Population, Forest and Soil
Conservation, Irrigation and Peace and Reconstruction and 9
more departments) government institutions.
 GoN will mobilize its own resources to bring in
action above-mentions activities.
Major steps taken in this regard are Preparation of Periodic Plans (PRSP & TYIP), and
Long Term Vision Documents
 Linking Budget Allocation to Development
Priorities through MTEF and Business Plans
 Establishment & Strengthening of M&E Systems
(PMAS, PPIS)
 Start of Results Based Monitoring (Result-based
M&E guidelines 2011 is prepared by NPC for donorfunded p1 projects.)
Major steps taken in this regard are Performance-based Budget Release
 Tracking of High Priority Policies
 Public disclosure of the Key Information
 Public Sector Reform
 To integrate, streamline, and institutionalize
MfDR framework at all levels of the Government.
 To enhance institutional and individual capacity in
public sectors.
 Political transition
 To establish and strengthen effective M&E system.
 To ensure quality of service performed.
 We are moving forward on the way of RBB/MfDR
with great enthusiasm and hope.
 We do believe that the global partnership and
experience sharing are equally important in this
endeavor.