Conceptual Framework of Costing Exercises
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Transcript of Conceptual Framework of Costing Exercises
INCREASING EXIGIBILITY IN FINANCEMENT FOR GENDER EQUALITY
Global Seminar on Costing Experiences and Methodologies for Gender Equality
Santa Cruz de la Sierra, Bolivia, 10, 11 and 12 September, 2013
Conceptual Framework of Costing Exercises
Raquel Coello-Cremades
WHAT IS A COSTING EXERCISE? Costing: “Monetary evaluation of the amount of resources and efforts
that must be invested for the production of a good or service. It represents the price and the expenses of a certain item without the consideration of any profit” (Maria Concepcion Martinez Medina, Budget Costing Guide with Gender Perspective. II Plan for Gender Equality in Honduras. UN Women 2012.)
Costing equality policies“Monetary evaluation of added resources and financial and non-financial efforts that must be invested in order to implement a public policy aimed at achieving gender equality. These exercises also involve a technical and political process that aim to influence in public planning and budgeting processes that can contribute to close gender inequality gaps and women empowerment” (Costing of social and public policies for equality in Latin America and the Caribbean. Concept Note. PNUD. 2013.)
STRATEGIC SENSE OF “COSTING EXERCISES”
Cost of real need vs. effectively assigned resources “financial gaps”
To identify possible alternatives to cover these needs (redistribution of expense or the generation/redefinition on income or search of external resources).
Identification of priorities, definition of interventions to address them and people accountable of their implementation instruments to make programs and policies viable and promote their incorporation in public planning and budgeting systems.
Instrument to initiate the discussion about the gender gaps in politic and economic policies and in particular fiscal policy.
THE COSTING-BUDGET COUPLING
GRB COSTING
The priorities of the gender equality and women’s rights
agenda are expressed in terms of the necessary financial resources to
implement them in a way that they can be included in
planning and budget processes.
The planning and budget processes promote the
incorporation of the gender based perspective
and the allocation of resources for the priorities of the gender equality and
women’s rights agenda.
THE COSTING-BUDGET COUPLING
What’s possible
What’s desirable
BUDGET: What we have
managed to incorporate
NEEDS, OBJECTIVES, GOALS:
What is neededCOSTING
TYPES OF APPROACHES OF COSTING EXERCISES
APPROACH OBJECTIVE PURPOSE
Impact Costing To measure socio-economic impacts of an especific intervention or problem.
- To show advere effects (of interviening or not intervining) - To justify the benefits of an especific investment
Interventions Costing
To estimate financial resources to carry out an intervention (good or service, or the achievement of a development goal).
- To know how much is needed- To calcuate alcular la brecha de financiamiento
Costing as a tool for the inclusionin public planning an budgeting processes
To incorporate the financial resources needed to carry out an intervention in the planning and budgeting process.
To know the budgeting processes in which the costed intervention must be included.
THESE THREE APPROACHES COMPLEMENT EACH OTHER
METHODOLOGICAL APPROACHES FOR COSTING
Costing Estimations Based on the Incremental Capital Output Ratio (ICOR) Estimations based on elasticities imputs-resultsEstimations Based on the Average of Single CostsEstimations of the cost of interventions based on the evaluation of needsEstimations developed using instruments of public planning and budgeting
METHODOLOGICAL APPROACHES OF COSTING (I)Name of the Approach
Purposes Limitations
Costing Estimates based on the Incremental Capital Ratio (ICOR )
Calculation of the rate of economic growth needed to reduce by half income poverty and define the amount of resources that must be invested to achieve this growth.
* It doesn’t allow going further on thick estimations and, therefore, it is not useful to guide planning, budgeting and resources allocation processes * It doesn’t take into consideration the investments that don’t have a direct and measurable impact on economic growth (for example, the investment in the improvement of the quality of education and the investment on the prevention of diseases).
Estimates based on economic elasticity inputs-results
It allows the estimating of the level of aggregated investment required to achieve a development goal (for example a MDG).The methodology involves the establishing of a “productive function” of the specific goal. This means, the construction of a model that includes the inputs required to achieve this goals as variables and the elasticity parameters .
* Calculate a global amount of resources needed but it doesn’t allow the analysis in detail and therefore it doesn't allow to generate detailed data for the budgeting and planning process.* It only allows the projection of a small number of sectors that have historic elasticity data to put together the productivity function. In the case of gender equality, this productivity function is very hard to build.* It is only possible to shape a small number of variables, leaving aside frequent investments that are important to achieve the goals that are being estimated.* These estimations don’t allow the guidance of planning; budgeting and resource allocation processes either.
METHODOLOGICAL APPROACHES OF COSTING (II)Name of the Approach
Purposes Limitations
Estimates based on the average amount of single costs
Calculating the investment needs required to close the gap in access or provision of public services taking into consideration the current expenses.
* This approached is based on the current expenses. If there are any changes in the inputs required, the single costs are not useful to obtain the total costs. * Normally, the target population requires greater levels of investment in comparison with the ones already made.
EXAMPLES Name of the experience Location Period Costed Policy or Action Evaluation of the cost of addressing domestic violence at a district level.
Albania 2011 Gender-based Violence
Costing of the National Plan of Action for Gender Based Violence for the Republic of Seychelles.
Seychelles Ene.2010-Dic.2011
Gender-based Violence
The price of protection: Costing the Implementation of the Domestic Violence Act in South Africa.
South Africa 2005 Gender-based Violence
Analysis of cots and possible impacts of different models of maternity and paternity leaves.
Uruguay 2012-2013 Amplification of maternity and paternity leaves
METHODOLOGICAL APPROACHES OF COSTINGEstimates based on the average amount of single costs
EXAMPLE: South Africa. Implementation of the Law Against Domestic Violence
SOURCE: Lisa Vetten, Debbie Budlender and Vera Schneider (2005) Costing the Implementation of the Domestic Violence Act in South Africa
METHODOLOGICAL APPROACHES OF COSTING (III)
Name of the Approach
Purposes Limitations
Costs estimates of interventions based on the evaluation of needs
It allows the calculation of the cost of carrying out certain interventions needed to reach the costing objective based on an evaluation of needs of the population regarding these interventions.These estimates provide detailed information on the resources necessary in terms of financing, infrastructure and human resources. Therefore, these estimates are useful in planning and budgeting processes.
* Needs are estimated in a separated manner for each intervention, therefore, it is not possible to account for all synergies that have to be considered later on and build within the analysis of the sector. This makes of it a time and work consuming process. * The links with macroeconomic variables (such as inflation growth) have to be shaped in a separate manner because the model does not include them.
METHODOLOGICAL APPROACHES OF COSTING Costs estimates of interventions based on the
evaluation of needsEJEMPLOS:
Costed Policy Name of the Experience Location Period Achievement of MDG 3
Costing of MDG 3 Belize 2010-2011
Costing of MDG 3 Ecuador 2007Costing of MDG 3 Morocco 2005Costing of MDG 3 Dominican
Republic2005
National Srategies for Gender Equality
Costing of the Equal Opportunities National Plan of Bolivia Bolivia 2009 to date
Costing analysis of the Jordanian National Strategy for Women Jordan Dic.2012 – Mar.2013
Assessment of financial resources for implementation of the National Action Plan (2012-2014) of the National Strategy of the Kyrgyz Republic for achieving of gender equality by 2020.
Kyrgystan Sep.Oct. 2012
Costing the Agriculture Gender Strategy
Costing the Agriculture Gender Strategy Rwanda 2011
EXAMPLES
METHODOLOGICAL APPROACHES OF COSTING (IV)Name of the Approach
Purposes Limitations
Estimates developed using public planning and budgeting instruments
It calculates the costs trough the definition of records of expenses associated with programmatic categories used in public planning and budgeting systems in each country. This makes it easier to directly incorporate interventions in annual operating plans and budgets of public institutions.
* The definition of records of expenses associated with categories set by financial regulations in the countries limits the detail and the disaggregation that the information can have.* On the other hand, the amounts allocated that respond to budgeting criteria are often subject to rooftops of expenses established for public institutions and, therefore, they don’t necessarily reflect the necessary amounts but rather the “possible” amounts according to the macroeconomic environment of each country.
METHODOLOGICAL APPROACHES OF COSTING Estimates developed using public planning and
budgeting instruments
Name of the Experience Location Period Costed Policy or Action
Costing case studies of multidisciplinary packages of services to assist woman and girls victims of violence
Asia Pacific 2012 Violence
Budget costing of the Second National Plan of Gender Equality of Honduras (PIEGH)
Honduras 2012 to date National Strategy for Gender Equality
Costing National Plan of Prevention and Combat to Domestic Violence
Mozambique 2008-2011 Violence
EXAMPLES
METHODOLOGICAL APPROACHES FOR COSTING
Estimates of the cost of
interventions based in the
evalauation of needs.
Estimates developed using instruments of
publuc planning and budgeting
Incorporation of
interventions in public
planning and budgeting
COSTING METHODOLOGIES AND TOOLS
Name of the Methodology or Tool Type of sectoral policy costed
Methodological Approach Experiences where the methodology or tool has been applied
MDG Gender Needs Assessment Tool
MDG 3 and 7 strategic prioritary policies
Estimates of costing on interventions based on the evaluation of needs.
Belize, Bolivia and Dominican Republic (adapted)
Gender Equality Costing Tool / Equal Opportunities National Plan of Bolivia
Equal Opportunities National Plan of Bolivia
Use of public budgeting and planning instruments
Bolivia
Methodology for the Second National Plan of Gender Equality of Honduras (II PIEGH)
Equal Opportunities National Plan
Use of public budgeting and planning instruments
Honduras
Methodology for costing of multidisciplinary packages of services to assist woman and girls victims of violence.
Violence against women and girls
Use of public budgeting and planning instruments
Indonesia and Cambodia
COSTING EXPERIENCES
STAGES OF COSTING EXPERIENCESSTAGE 1: Design of the costing exercise
Definition of the policy or intervention to be costed (pertinence and social and political opportunity)Establishment of objectives to be achieved with costing and expected results (what do we want do do with the results obtained from the costing process).Mapping of available information.Establishment of strategic alliances with actors that participate of the process.
COSTING EXPERIENCES
STAGES OF COSTING EXPERIENCES
STAGE 1: Design of the costing exercise
STAGE 2: Development or adaptation of a costing tool or methodology
Revision of methodologies and tools available. Analysis of its pertinence, adaptability, etc.Decision: Adaptation vs. Elaboration of new tool/methodology (Depending on the objectives, expected use of results, available information and alliances established as defined in Stage 1).Adaptation of the tool/methodology or elaboration of a new one.
COSTING EXPERIENCES
STAGES OF COSTING EXPERIENCES
STAGE 1: Design of the costing exercise
STAGE 2: Development or adaptation of a costing tool or methodology
STAGE 3: The costing tool or methodology is applied
Selection of inputs/actions that are necessary to carry out the policy or intervention that we want to cost.Application of the tool/methodology.Possibility of calculating cost but also benefit.Socialization and validation of results.
COSTING EXPERIENCES
STAGES OF COSTING EXPERIENCES
STAGE 1: Design of the costing exercise
STAGE 2: Development or adaptation of a costing tool or methodology
STAGE 3: The costing tool or methodology is applied STAGE 4:
Systematization of the process and dissemination of results
Elaboration of report of results.Socialization and dissemination of the report. Systematization of the process and the tool/methodology.
COSTING EXPERIENCES
STAGES OF COSTING EXPERIENCES
STAGE 1: Design of the costing exercise
STAGE 2: Development or adaptation of a costing tool or methodology
STAGE 3: The costing tool or methodology is applied
STAGE 4:Systematization of the process and dissemination of results
STAGE 5:Use of results
•Incidence in laws, •Accountability in resources allocation•Incorporation in budgets•Mobilization of external support...
FINAL CONCLUSIONS
Costing exercises are processes that require of multiple elements to be completed:
•Articulation with the context: Motivation
•Straight definition of objectives and purposes.
• Adequate strategic alliances.
• Good knowledge of available information.
• Technical handling of existing tools, capacity for their adaptation or for the formulation of new tools.
• Have a validation process.
• Systematization of results, process, methodology and diffusion.
• Impact strategies for the use of results.
THANK YOU!!!
Raquel Coello [email protected]
Costing of policies and interventions for Gender equalityConcepts, methodologies and practical experiences
MORE INFORMATION…