Transcript Slide 1
Challenges and Perspectives in the Financing
of Capacity Development New Approach
Charting the Way Forward
By
Sibry TAPSOBA
Head, African Development Institute
November 16-17, 2009 – Tunis, Tunisia
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Table of Contents
1. Background
2. The concept of CD
3. Capacity Development effort in Africa
4. The Bank’s involvement in CD
5. Some emerging lessons and best practices
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Background (1): Sluggish economic growth since the ‘80s
5,000
5,000
4,000
4,000
GDP per c apita
3,000
3,000
2,000
2,000
1,000
1,000
0
1980
0
1985
1990
1995
2000
2005
Eas t A s ia & P ac ific
South As ia
Sub-S aharan A fric a
Over the past three decades or so, there has been little
improvement in incomes of Africans, in contrast to Asians;
In the early 1980s, Africa’s GDP per capita was on average higher
than of East Asia’s; today it is the opposite.
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Background (2): Institutional, human, and policy-related
factors explain much of the growth sluggishness
Some of the factors explaining slow growth in Africa:
Insufficient human capital;
Inappropriate policies;
Destructive and disorganizing conflicts;
Insufficient infrastructures;
Low economic integration;
Weak institutions; and
Deficient governance.
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The concept of CD (1): What is capacity?
Capacity:
Does not have a generally agreed definition;
But it is broadly considered to mean the combination of
individual competencies, collective capabilities, assets,
knowledge, and relationships that enables a human
system to create value.
Capacity Development: The process of enhancing,
improving and unleashing capacity; it is a form of change
which focuses on improvements.
Capacity issues: A shorthand way of referring to both
capacity as an outcome and capacity development as a
process.
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The concept of CD (2): Capacity matters
Capacity has been deemed important since the emergence
of development as a discipline and practice;
In the 1990s: renewed recognition of importance of CD in
Africa (capacity was viewed as the missing link in Africa’s
development);
The Paris Declaration on Aid Effectiveness and the Accra
Agenda for Action have emphasized the centrality of CD to
development effectiveness.
For the past decade or so, as much as 25% of ODA has
been allocated to Technical Assistance, a proxy often used
for CD effort (OECD).
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The concept of CD (3): Shifts in Approaches to Devlpt
have led to changes in CD Strategies
1960s-70s: - Development = volume of investment and know how
- CD strategy: focus on formal education & infrastructures
1980s: - Efficiency, rather than Volume of investment matter the most
- CD strategy: focus on organizations, resulting in SAPs.
1990s: - Development = sound institutions (as policies are rooted in
institutions);
- CD strategy: get institutions right (result: governance reforms)
Late 1990s to-date: - Development = knowledge & learning
- CD strategy: focus on knowledge management
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The concept of CD (4): CD is difficult to measure
There does not exist any straightforward way of measuring capacity
and capacity development;
The international development community most often refers to
Technical Assistance to estimate capacity efforts;
However, TA and CD differ:
TA is often viewed as a substitute for real capacity building;
TA does not include local efforts to enhance capacity.
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CD effort in Africa (1): SSA is the world region that
receives the highest share of TA
Share (% ) of net ODA allocated to Technical Assistance
(source: OECD)
60
50
40
1996-97
30
2001-02
2006-07
20
10
0
SubSaharan
Africa
Central and Eastern Asia North Africa
South Asia
and the
and Middle
Pacific
East
Europe
Latin
America
and
Caribbean
• SSA is the only region with increasing share of world TA since the 1990;
• About half of the world’s TA is going to Africa
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CD effort in Africa (2): Africa is the region with weakest
capacity in the public sector
4.5
4.0
3.5
3.0
2.5
Economic
Management
Structural policies
Policies for Social
Inclusion/Equity
Public Sector
Management and
Institutions
Eastern Europe
South East Asia
Latin America and the Caribbean
Sub-Saharan Africa
East Asia
• SSA’s capacity is particularly weak in public sector management and
institutions, followed by policies for social inclusion and equity.
Data used: CPIA Indexes for 2008; source: World Bank; 1 – 6 scale
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CD effort in Africa (3): TA to Africa is unevenly distributed
Shares (% ) of African country groupings in total TA to Africa
80.0
70.0
1986-89
60.0
50.0
1990-94
40.0
1995-99
30.0
2000-03
20.0
2004-06
10.0
0.0
SSA
LICs
MICs
LDCs
HIPC
Fragile
States
SSA’s share of TA to Africa has been increasing since the 1980s;
5 North African countries receive about 35% of TA going to Africa;
In recent years TA to SSA, LICs, LDCs, HIPC, and Fragile States has
increased; that to MICs has decreased
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Bank’s involvement in CD (1): The Bank uses many channels
and instruments to support CD, but needs to scale up its effort
• Most Bank departments have strategies that include a CD agenda
• Most initiatives hosted by the Bank carry out CD activities (e.g.:
Fund for African Private Sector Assistance—FAPA; African
Water Facility; Making Finance Work for Africa;
African Legal
Support Facility; etc.);
• However: most PCRs point to insufficient Bank support for CD;
• Most Bank-financed CD activities are part of Project & Policy lending
• The Bank funds most of its CD effort under the ADF financing window
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Bank’s involvement in CD (2): EADI has an important
role in Bank’s efforts to strengthen capacity in Africa
• Between 2002 and 2008: EADI implemented 299 training and
learning events for over 13,600 beneficiaries from 52 countries
• EADI’s activities related to development effectiveness:
- Project implementation workshops;
- Project Improvement Programs;
- Development Management Training;
• Policy dialogue activities (part of these in partnership with
JAI):
- Annual meeting seminars;
- Eminent Speakers Program;
- African Economic Conference;
- Support to ACBF, AERC, etc.
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The Bank’s involvement in CD (3): The Bank’s
approach to CD faces a number of Challenges
• The Bank is one of the development institutions that still have to
develop a branded framework for, and an articulated approach to,
CD;
• The Bank still has to develop a corporate system to record,
evaluate, and report on its CD efforts in a systematic way;
• The Bank has to treat CD as a strategic, cross-cutting issue, not
as a collateral;
• The Bank needs to balance its efforts to equally support between
the demand and the supply side of the CD equation.
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The Bank’s involvement in CD (4): An emerging Bank’s
strategy of CB aims to meet the challenges
The Bank is now engaged in the process of developing a
comprehensive and articulated CD strategy:
Geared toward responding to the abovementioned
challenges;
To consolidate its competence in training while supporting
other dimensions of CD through its operations;
To create a brand, coordinate, evaluate, and systematically
report on Bank’s CD activities; and
To establish a niche in specific areas on the continent.
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Emerging Lessons & good practices
The countries that have invested in CD the most are those that
developed the most over the past decades;
For viable, sustainable, and locally owned CD:
Finance it through the countries’ institutions, not through
traditional TA, and involve leadership;
Countries have responsibility to develop CD programs; the role
of donors is to support them;
It is at sectoral level that CD efforts succeed the most;
The Bank estimates that to sustain growth rates susceptible to
halve extreme poverty and hunger by 2015, an additional US$50
Bn par year are required; EADI estimates that 25% should go to CD
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Thank you !!!
[email protected]
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