AfDB Partnership Forum April 2012

Dr Feng Zhao, Division Manager

Human Development Department

(title )VALUE FOR MONEY, SUSTAINABILITY AND ACCOUNTABILITY

FOR HUMAN DEVELOPMENT RESULTS IN AFRICA

Africa is changing rapidly

o A decade of economic growth in Africao Additional fiscal space for social services

and growing private expenditure (health; education)

o Decreasing share of aid in Africa’s social spending

o Growing demand for transparency accountability as exemplified by the Arab Spring

Need shift from accountability to donors towards domestic accountability

At the same time, the current crisis of HIV/AIDS funding prompts for sustainability to be at the core of Africa’s agenda

The New Africa Needs More Value for Money

Countries achieve varying results at comparable levels of investment

In Education

Need for Value for Money in Education

Of those African children who start primary schooling, four out of ten drop-out before completion

Need for Value for Money In Health

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Total Health Expenditure per capita (USD at Purchasing Power Parity)

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Government Health Expenditure per capita (USD at Purchasing Power Parity)

The 2010 World Health Report estimates that globally, “20-40% of all health spending is wasted through

inefficiency”.

A New Agenda for Africa

“Tomorrow’s agenda will be domestic. It will be about value for money through more transparent budgeting practices, making use of evidence-based budgeting tools, introducing performance-based budgeting and result-based financing, and improving the efficiency of private spending through increased risk pooling.”

“The global health agenda in the coming decade will also be about sustainable delivery of the high-impact interventions …. Africa will, for instance, have to take ownership of tis AIDS response.”

“More importantly, tomorrow’s agenda will be about the building of domestic accountability. 2011 was marked by the Arab Spring… A new area of democratic governance is beginning where first and foremost have to be built towards African populations rather than toward donor countries. ”

--AfDB President Kaberuka in his Lancet Article published on December 2, 2011

Thrusts of AfDB

Building on MTS Governance pillar --toward improved governance in social sectors

oThere is a demand for increased leadership from African countries and institutions

oValue for Money and accountability are at the heart of the new Human Development Strategy under development at AfDB (together with two other pillars i.e. Competitiveness and Employment Opportunities, and Risk Protection, inclusion and social cohesion)

oAfDB knowledge broker also facilitating South-South sharing of experience

oAfDB is working with other agencies to make the case for more efficient spending in social sectors (e.g. dialogue between ministries of finance and health with partners of the Harmonization for Health in Africa, incl. forthcoming ministerial conference in Tunis in July 2012)

A Possible Transformative and Innovative Partnership

Value for Money in Social Service Program:-Strengthen dialogue between MoF/MoH and Chairs of Finance/Budget and Health Committees;-Develop capacity of MOFs and Parliamentary Finance/Budget Committees to fully play their role toward overall efficient health investment ; and-Enhance domestic accountability for health spending.oLeverage traditional and new sources of finance toward value for money

More information from:

Fabrice SergentHuman Development Department

+216 71 10 30 67f.sergent@afdb.org