Mutual accountabilityMutual accountability: From : From Paris Declaration to Hanoi Core Paris Declaration to Hanoi Core

Statement Statement

Dar Es Saalam 11-2005Dar Es Saalam 11-2005

Vietnam: A big market with high Vietnam: A big market with high GDP growth rateGDP growth rate

• Population: 82 million

• Stable political system and social security

• GDP growth rate (1990 – 2005): > 7%

• GDP growth of 2005: 8.5%

FDI: Some figuresFDI: Some figures

• 1987 – 2004: 5 500 projects with 48.5 billion USD capital; 3 500 projects in production and business activities

• FDI = 20% of the total investment

• FDI = 14.5% GDP

• FDI = 50% exports

• FDI = 740 000 direct jobs

• FDI 2005: > 5 billion (previsions)

Vietnam: ODA recipeiptsVietnam: ODA recipeipts(1993 – 2004)(1993 – 2004)

• Engagements: 28.4 Billions USD• Disbursements: 14.8 Billions USD• Sectors invested: - Poverty reduction;

- Economic and social infrastructures (Transport, Telecommunication, power supply, Agriculture, Rural development, Health, Education, …)

Vietnam: ODA receiptsVietnam: ODA receipts(USD million)(USD million)

Receipts 2001 2002 2003

Net ODA 1450 1277 1769

Bilateral share 4.5% 3.6% 4.5%

Net ODA/GNI 4.5% 3.6% 4.5%

Vietnam: Top ten donorsVietnam: Top ten donors(2002-2003, USD million)(2002-2003, USD million)

Donors Gross ODA

1 Japan 452

2 WB (IDA) 414

3 ADB (AsDF) 224

4 France 96

5 Denmark 59

6 Germany 52

7 Australia 38

8 Netherlands 35

9 United Kingdom 31

10 United State 27

Constraints identifiedConstraints identified

• Lack of an long term plan for ODA mobilisation and utilisation;

• Lengthy decision making processes;

• Deficiency in the legal framework;

• Human capacity to execute ODA projects.

• …

Mutual accountability: why and Mutual accountability: why and when ?when ?

Concepts:• OECD: Mutual assessment of progress in

implementing agreed commitments of donors and recipient countries on aid effectiveness under 4 aspects: Ownership, Alignment, Harmonisation, Simplication

• Vietnam: In added: the division of responsibility based on riel context, conditions and capacities

Mutual accountability: why and Mutual accountability: why and when ?when ?

Why and When ?

• Needs on better and more effectiveness of ODA use

• Differences on policies, objective, mechanism, methodologies of identifications, planning, implementing, monitoring and evaluation

• Needs of change with volunteers: Opening, localisation and globalisation

Hanoi Core StatementHanoi Core Statement – The – The nationalisation of the Paris nationalisation of the Paris

DeclarationDeclaration

• Ownership:- Indicators:5 years Socio-Economic Development Plan (SEDP) is finalised and effectively implemented, CPRGS principals are integrated

- Targets to 2010:5 Year SEDP targets are achieved

Hanoi Core StatementHanoi Core Statement

• Alignment: Indicators and targets to 2010

+ Donors assistance strategies are aligned to the SEDP and related national, regional, provincial and sector strategies (all donors)

+ Strengthening of PMUs (all PMUs)

+ Strengthening of building programmes capacities (100%)

Hanoi Core StatementHanoi Core Statement

• Alignment: Indicators and targets to 2010+ Strengthening of Public procurement system (>50% of donors and >50% of aid flows)+ Strengthening of Public financial management system (>50% of aid flows and donors channeling)+ improve environmental and social safeguard (100% funded projects implemented to international standards and at least 30% using government systems

Hanoi Core StatementHanoi Core Statement

• Harmonisation and simplification: Indicators and targets to 2010:+ Fewer, better, core diagnostic and country analytical reviews (75%)+ Common project cycle management tools agreed and used throughout the project/programmes cycle (> 50% of donors)+ Coordination on policies and sector framework (75% of aid)+ Donor delegation authority to country offices (75% of interventions)

Hanoi Core StatementHanoi Core Statement

• Management for results : Indicators and targets to 2010

+ Results framework developed and used to assess the performance of SEDP and sector programmes (DAC criteria and continuous monitoring)

Hanoi Core StatementHanoi Core Statement

• Mutual accountability:

+ Periodic mutual assessment of progress

(Annual assessment)

ExperiencesExperiences

1- Division of responsibility• Donors:

+ UN institutions and Like Minded Donor Group : transaction cost+ Partnership Group on Aid Effectiveness: public finance management, trade reform, …+ WB and others: country assistance strategies+ 5 Banks Group: Project management, harmonisation of procedures, financial management, …+ Consultative Group for Vietnam (CG): forum for discussions on policies, strategies; evaluation of reform schedule and financing

ExperiencesExperiences

1- Division of responsibility• Vietnam Gov:

+ Building sustainable country system

+ Revision of ODA legal framework

+ Establishment of ODA master Plan (2006 – 2015)

+ Monitoring framework

+ Simplication of procedures: Procurement and financial systems

ExperiencesExperiences

2- Strengthening of Country procurement system

- Assistance of Like Minded Donor Group

+ Revision of relevant regulation

+ Promotion of transparency and fair competition

+ Information system (bulletin and website)

=> Final law document to be adopted by the National Assembly

ExperiencesExperiences

3- Strengthening the public financial management- Assistance of 5 Banks Group- Pilot exercise (4 sectors and 4 provinces)+ Strengthening medium term expenditure planning+ Streamline the country’s fiscal planning framework+ Modernisation of state budget management=> Final Decree document to adopt by the Government

ExperiencesExperiences

4- Developing a common results-based monitoring framework

- Assistance of UNDP and other donors

+ Design common indicators

+ 5 years Plan (2006 – 2010)

+ Software on evaluation and monitoring

=> The software on assistance projects on evaluation and monitoring transferred (9/2005)

Lessons learnedLessons learned

• Necessary of participation of stakeholders on every step of the reform

• Every stakeholders would benefit from the development of the country’s capacity and the Gov. system regardless of funding sources or aid modalities

• Donors and recipient country could look into real situation with concrete analysis before set down targets and performance indicators

Steps to continueSteps to continue

• Undertake a baseline study of donor operation procedures (cycle time, cost, schedule, …)

• Sharing opinions between Gov and donors on the 5 years Plan

• Action Plan on environmental and social safeguards (including projects/program preparation)

• Donors to continue to develop and implement joint activities

• Donors to outline their plan for decentralisation• …

Thank you for your attention !Thank you for your attention !