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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