United Nations Development Assistance Framework for the ... · Bhutan UNDAF 2008-2012 I....

United NationsDevelopment Assistance Framework

for the Kingdom of Bhutan 2008-2012

ThimphuJune 2007

Bhutan UNDAF 2008-2012

1


Abbreviations and Acronyms

ACC Anti-Corruption CommissionAIDS AcquiredImmuneDeficiencySyndromeBDFC Bhutan Development Finance CorporationBICMA BhutanInfocommandMediaAuthorityCCA CommonCountryAssessmentCSO CivilSocietyOrganisationDOTS DirectlyObservedTreatmentShortCourseDYT DzongkhagYargyeTsogdu(DistrictDevelopmentCommittee)EC Election Commission of BhutanFAO FoodandAgricultureOrganisationGFATM GlobalFundtoFightAIDS,TuberculosisandMalariaGYT GewogYargyeTsogchung(BlockDevelopmentCommittee)IFAD InternationalFundforAgricultureDevelopmentJICA JapanInternationalCooperationAgencyMDG Millennium Development GoalMEA MultilateralEnvironmentAgreementMOA MinistryofAgricultureMOE MinistryofEducationMOF MinistryofFinanceMOFA MinistryofForeignAffairsMOH MinistryofHealthMOHCA MinistryofHomeandCulturalAffairsMOIC MinistryofInformationandCommunicationMOLHR MinistryofLabourandHumanResourcesMTI MinistryofTradeandIndustryMOWHS MinistryofWorksandHumanSettlementMSME Micro,SmallandMediumEnterprisesMSTF MultiSectoralTaskForceNA NationalAssemblyNEC National Environment CommissionNSB National Statistical BureauNCWC National Commission for Women and ChildrenOAG OfficeofAttorneyGeneralPC PlanningCommissionPTA Parent Teacher AssociationRAA RoyalAuditAuthorityRBM ResultsBasedManagementRBP RoyalBhutanPoliceRENEW Respect Nurture and Empower WomenRGoB RoyalGovernmentofBhutanRUB RoyalUniversityofBhutanSCF Save the Children FundSNV NetherlandsDevelopmentOrganisationSQCA StandardsandQualityControlAuthoritySTI SexuallyTransmittedInfection(s)TB TuberculosisYDF Youth Development FundUNCT UnitedNationsCountryTeamUNDMT UnitedNationsDisasterManagementTeamUNDP UnitedNationsDevelopmentProgrammeUNESCAP UNEconomicandSocialCommissionforAsiaandthePacificUNESCO UnitedNationsEducational,ScientificandCulturalOrganisationUNFPA United Nations Population FundUNICEF United Nations Children’s FundUNIFEM United Nations Development Fund for WomenWFP WorldFoodProgramme

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Table of Contents

I. Introduction..................................................................................................................5

II. UNDAF Results............................................................................................................5

III. Estimated Resource Requirements...........................................................................11

IV. Implementation..........................................................................................................11

V. Monitoring and Evaluation.......................................................................................12

Annexes ..........................................................................................................................13

Annex 1. UNDAF Results Matrix ......................................................................................14

Annex 2. Monitoring and Evaluation Framework............................................................ 25

Annex 3. Macro Assessment of the Public Financial Management system in Bhutan...32

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Executive Summary

TheUnitedNationsDevelopmentAssistanceFrameworkforBhutan(2008-2012)providesacollective,coherentandintegratedUNresponsetonationalneedsandprioritiesandisconsistentwithBhutan’soveralldevelopmentvisionarticulatedbyGrossNationalHappiness.TheUNDAFformulatedthroughahighlyconsultativeandparticipatoryprocesswiththeRGoBandotherstakeholdersembodiesarightsbasedandresultsdrivendevelopmentapproachaimedatpovertyreductionandpursuitoftheMDGs. TheimplementationoftheUNDAFcomesatacriticalperiodinBhutan’shistorywiththeadoptionoftheConstitutionin2008.Thepoliticaltransformationtoaparliamentarydemocracywillbringaboutfundamentalchangestothesystemofgovernancealongwithafarreachingimpactonsocial,economicand political dynamics. It is therefore, imperative for theUNSystem to ensure that the challengesfacingthecountryareadequatelysupportedtosustainthedevelopmentmomentumandensureasmoothpoliticaltransition.

Basedontheeconomic,socialandpoliticalchallengesidentifiedintheCCA,theBhutanMDGProgressReport2005andthenationalprioritiesenvisagedinthecurrentTenthPlanGuidelines,theRGoBandtheUNagenciesandotherpartnersidentifiedfivepriorityareastobeaddressedintheforthcomingUNDAFcycle.TheUNDAFoutcomesgivenbelowreflectasetofconcreteoutcomessuitedtothecomparativeadvantageandcapacitiesoftheUnitedNationsagenciesinsupportingthenationalpriorities.

NationalPriority UNDAF OutcomeTohalvepovertyby2013 By2012,opportunitiesforgenerationofincomeandemployment

increasedintargetedpoorareas.(MDG1,8)

Toimproveaccessibility,qualityandsustainabilityofhealthcaredeliverysystem

By2012,increasedaccessandutilizationofqualityhealthserviceswith emphasis on reproductivehealth,maternal and childhealthand nutrition, HIV/AIDS, TB, malaria and non-communicablediseases.(MDG4,5,6)

Toimprovequality,relevanceandcoverageofeducation

By2012,accesstoqualityeducationforallwithgenderequalityandspecialfocusonthehard-to-reachpopulationimproved.(MDG2,3)

Tofostergoodgovernanceasacore value for development

By2012,institutionalcapacityandpeople’sparticipationstrengthenedtoensuregoodgovernance.(MD&MDG1,3,8)

To enhance environmental sustainabilityanddisastermanagement

By2012,nationalcapacityforenvironmentalsustainabilityanddisastermanagementstrengthened(MDG7)

The UN System has set a resource mobilization target at about USD 70.24 million in grants forachievementoftheUNDAFOutcomes.TheUNDAFwillbeimplementedthroughgovernmentapprovedcountrycooperationmechanism.WorkamongUNagencieswillbecoordinatedinrelevantUNthemegroupbasedonUNDAFOutcomes.TheharmonisedprogrammecycleofindividualUNagencieswillfacilitateeffectiveindividualandjointprogrammingandjointmonitoringandevaluation.

TheUNDAFwasdevelopedinkeepingwithcurrentnationaldevelopmentprioritiesandparallelwiththeMDGNeedsAssessmentandCostingExercise.PendingthefinalisationoftheTenthPlantheneedforflexibilityintheUNDAFisimportanttoensureclosealignmentwiththeplan.AftertheTenthPlanisfinalized,boththeapproachandthestrategiesoftheUNDAFwillbeadjustedtoreflecttheprioritiesoftheTenthPlan.

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I. Introduction

The United Nations Development Assistance Framework is an essential component of the UNprogrammeforreformintroducedbytheSecretaryGeneralin1997.AsastrategicplanningframeworkforUNdevelopmentoperationsandassistanceat thecountry level itprovidesabasis for increasedcollaboration, coherence andeffectivenessofUNdevelopment cooperation activities.TheUNDAFisalsoapolicydialogueinstrumenttofacilitatethedevelopmentofpartnershipsamongUNagenciesandbetweentheUN,theRGoB,otherstakeholdersaswellasdonoragencies.

ThesecondUNDAFforBhutan(2008-2012)iscriticaltokeepBhutanontracktomeettheMDGsandalsocoincideswiththeimplementationoftheTenthPlan(2008-2013).TheUNCountryTeaminBhutanpublishedtheCommonCountryAssessmentinAugust2006.TheCCAprovidesasharedanalyticalperspectiveoftheUNSystemonthedevelopmentsituationinBhutan.UsingtheMDGsasaframe,theCCAhighlightsthesuccessesandthechallengesthecountryfacesinpolitical,social,environmentalandeconomicareas.

TheUNDAFStrategicPlanningWorkshopwasheldfrom30th–31stAugust2006inThimphu.TheparticipantsattheworkshopincludedrepresentativesoftheUNagencies,RGoBofficials,NGOsandsomedonorpartners.ThroughahighlyconsultativeandparticipatoryapproachtheworkshopidentifiedpriorityareasforUNassistancebasedonthecommonalitiesthatemergedamongtheMDGs,theCCA,thenationalpriorities envisaged in thecurrentTenthPlanGuidelines andother emergingprioritiesof theRGoB.Theparticipants identifiedPovertyReduction;Health;Education;GoodGovernance;andEnvironment andDisasterManagement as priority areas forUN assistance.Gender; ICT; andevidence-basedplanninganddecisionmakingwereidentifiedascrosscuttingissues.Emphasiswasgiven to identify areas of cooperation where the UN had comparative advantage which includes:continuedcommitmentbyUN toworkwith theRGoB; lead role inMDGs;access to internationalexperiencetoaddressdevelopmentissuesbasedonagencymandates,resourcesandothercompetenciesincludingthepotentialforsynergies.CentraltothestrategicframeworkreflectedintheUNDAFarehumanrightsbasedapproachandeffortsaimedatgendermainstreamingandreachingtheunreached.

Based on currently identified priority areas, five UNDAF working groups were established withrepresentatives from theUNagencies and theRGoBandother stakeholders.TheWorkingGroupsfocusedonrefiningUNDAFoutcomes,identifyingrelevantandrealisticoutputsanddevelopingtheM&Ematrix.TheUNDAFwasdevelopedinkeepingwiththecurrentnationaldevelopmentprioritiesandtheMDGNeedsAssessmentandCostingExercise.PendingthefinalisationoftheTenthPlantheneedforflexibilityintheUNDAFisimportanttoensureclosealignmentwiththeplan.AftertheTenthPlanisfinalised,boththeapproachandthestrategiesoftheUNDAFwillbeadjustedtoreflecttheTenthPlanpriorities.HencetheBhutanUNDAFisalivingdocumentwhichwillbereviewedandupdatedaspartofaregularannualM&Eprocess.TheUNCTbenefitedimmenselyfromthehighlyparticipatoryandproductivediscussionswiththeRGoBandotherstakeholdersintheformulationoftheUNDAF.

II. UNDAF Results

Bhutan’scurrentdevelopmentstrategyisfocusedonpovertyreductionandpursuitofMDGsasmajordevelopmentpriorities.TheseprioritiesreflecttheguidingprincipleofGrossNationalHappinessandareconsistentwithBhutan’sinternationalcommitmenttotheMillenniumDeclarationandinachievingtheMDGsandSAARCDevelopmentGoals.

ThenationalprioritiestobeaddressedandthedevelopmentoutcomestobeachievedbytheUNCountryTeamintheBhutanUNDAF(2008-2012)arebrieflydescribedbelow.TheresultsmatrixisgiveninAnnex1.

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UNDAFOUTCOMEONE:By2012,opportunitiesforgenerationofincomeandemploymentincreasedintargetedpoorareas.(MDGs1,8)

AlthoughBhutanhasmadesignificantsocio-economicprogress,about31.7%(2003)ofthepopulation,mainlyintheruralareas,continuetolivebelowthepovertyline.Thelackofeconomicopportunitiesandlowfarmproductivityhasbeenidentified,amongstothers,asimportantcausesofincomepoverty.InsupportingtheoveralldevelopmentobjectiveoftheRGoBtowardspovertyreduction,theUNSysteminBhutanwillfocusonenhancingfoodsecurityandimprovingopportunitiesforgenerationofincomeandemploymentintargetedpoorareas.

Toimproverurallivelihoods,theUNwillprovidesupporttoimproveaccesstosocialandeconomicservicesaswellasaccess to informationandmarkets.Achievingfoodsecurityamongsmallholderfarmersandothervulnerablegroups isvital toovercomepovertyandcontribute toachievementofotherMDGs.Agriculturalproductivitywillbe improvedwith introductionofnewtechnologiesandfarmingpractises,pestcontrolandbetterpostharvestmanagementpractices.

Employmentgenerationforyouth,particularly inruralareasconstitutesavitalconditiontoaddresspoverty and ensure balanced and equitable development. Due to various economic and structuralconstraints,theprivatesectorhasshownlimitedgrowthandformalsectoremploymentopportunitiesare limited. TheUNwill work closelywith the government, CSOs and the private sector to helpimprove the overall policy environment to promote private sector development. Incomegenerationand employment opportunitieswill be supported through promotion of cottage, small andmediumenterprises that isgendersensitiveandyouthoriented.To realise tangiblebenefits from integrationintotheglobaleconomy,capacitybuildingfor tradenegotiationsandexportpromotionwillalsobesupported.TheUNwillsupporttheRGoBtoimplementresultsbasedpolicy,plansandprogrammesgearedtowardspovertyreductionandattainmentoftheMDGsandothernationalpriorities.TheUNwillalsosupporttheRGoBtooperationalizethenationalM&EsystemformonitoringtheMDGsandothernationalgoals.

The following are the five Country Team Outcomes:

CT Outcome 1: Accesstosocio-economicservices,marketsandinformationimprovedforsmallholderandmarginalfarmersintargetedruralareas.

CT Outcome 2:Foodsecurityamongsmallholderfarmersandothervulnerablegroupsintargetedruralareasenhanced.

CT Outcome 3:CapacityoftheRGoBstrengthenedtoformulatepolicyframeworkforprivatesectordevelopmenttorespondtoeconomicconstraintsandvulnerabilitieswith

focusonemploymentgenerationandpro-poorgrowth.

CT Outcome 4:NewMicroandSMEsandjobscreatedwithemphasisonwomenandyouth

CT Outcome 5:Enhancedcapacityofpublicsectortoimplementresultsbasedpolicy,planandprogramdevelopmentespeciallyforMDGandpovertyreduction.

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UNDAFOUTCOMETWO:Increasedaccessandutilizationofqualityhealthserviceswithemphasisonreproductivehealth,maternalandchildhealthandnutrition,HIV/AIDS,TB,malariaandothernon-communicablediseases.(MDGs4,5,6)

TheRGoBhassucceededinexpandingnationalhealthcoveragesignificantlyandmadeconsiderableprogress towardsachieving theMDGof reducingchildandmaternalmortality.However,maternalmortalityratesremainonthehigherside.HIV/AIDSprevalenceisrelativelylowandBhutanhastheopportunity to avert a full blown epidemic.Tuberculosis remains amajor public health concern inBhutan andnumberof cases anddeaths frommalaria appear tobedeclining.However, challengesremaininprovidingqualityservicesparticularlytothehard-to-reachpopulation.Utilizationofhealthcareservicesisaffectedbylackofawarenessofavailableservicesandknowledgeofpreventionandcareindicatingtheneedtoaddressdemandsideintervention.Thereisalsoaneedtoenhanceknowledgeof infectiousdiseasesamongthegeneralpopulationandalsoprovidenecessaryskillsandaccess tobasicpreventionservicesincludingsafewaterandsanitation.

Ascontributiontothenationalgoaltoimproveaccessibility,qualityandsustainabilityofhealthcaredelivery system,UN Systemwill support capacity building of RGoB to formulate and implementevidencebasedpoliciesandstrategiestocreateanenablingenvironmenttoaddresstheabovehealthrelated challenges. Capacity building of health personnel to deliver quality services will also besupported.Further theUNwillalsoassist inenhancingthecapacityofkeygovernmentagencies toprepareforandrespond topublichealthemergencies.TheUNwillalsoworkwith thegovernmentto respond to prevention, care and treatment ofHIV/AIDS and STI though existingmulti-sectoralmechanismsatnationaland local levels.TheUNwillalsoassist theRGoB toenhancecommunitypartnershipsthroughinvolvementofcommunityorganisationsandotherrelevantpartnerstopromotehealthrelatedbehaviouralchangeinterventions.

The following are the four Country Team Outcomes:

CT Outcome 1:CapacityofRGoBtoformulateandimplementevidence-basedpoliciesandstrategiesthatcreateanenablingenvironmentforreproductivehealth,maternal

andchildhealthandnutrition,STI,HIV/AIDS,TBandmalariaprogrammes

strengthened.

CT Outcome 2:CapacityofRGoBstrengthenedtoincreaseaccesstoanddeliveryofqualityhealthservicesforallincludingreproductivehealth,maternalandchildhealthand

nutrition,TB,malariaandothernon-communicablediseases.

CT Outcome 3:Capacityofgovernmenttorespondtoprevention,careandtreatmentofHIV/AIDSandSTIthroughmulti-sectoralapproachstrengthened.

CT Outcome 4:RGoBandcommunitypartnershipsenhancedtopromoteutilisationofhealthservices.

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UNDAFOUTCOMETHREE:By2012,accesstoqualityeducationforallwithgenderequalityandspecialfocusonthehard-to-reachpopulationimproved.(MDGs2,3)

Sincelackofeducationisrecognisedasbothacauseandconsequenceofpoverty,concertedeffortsareneededtoprovideaccesstoqualityeducation.Qualityandrelevanceofeducationisalsoimportantfordevelopinghumancapitalwhichisvitalforeconomicdevelopment.WhileBhutanisontracktowardsachievingthesecondMDGofuniversalprimaryeducationby2015,disparitiesinenrolmentandotherindicatorscontinuetoexistbetweenruralandurbanareas.Thechallengesincludeimprovingthequalityofeducation,enhancingaccessuptobasiceducationlevel(classX)includingthehard-to-reachpopultionandachievinggenderparityatalllevels.Amongothers,theschoolfeedingprogramisseenasvitalinfurtherclosingdisparitiesinenrolmentandenhancingaccesstothechildren,especiallythegirls,fromthehardtoreachsectionofthepopulation.

TheUNwill support theRGoB to strengthen capacity of stakeholders to deliver quality education,enhancenationalcapacitytoreviseandimplementtheeducationcurricula.Supportwillalsobeprovidedtoenhancecapacityofstakeholderstodelivernonformaleducationforadultsandyoungpeople.Capacitywillalsobeenhancedtosupportchildfriendlyschoolsandaddressrequirementsofchildrenwithspecialneeds.SchoolsupportsystemandmonitoringmechanismwillalsobestrengthenedatnationalandlocallevelswiththeprovisionofnecessarysupportfromtheUN.Inordertoenhanceenrolmentandreducedropoutrates,especiallyofgirls,schoolfeedingandfeedinginfrastructureandwaterandsanitationfacilitieswillbeprovidedinselectedprimaryandsecondaryschools.Thepromotionofhealth,hygieneandnutritioneducationinschoolswillalsobesupported.Inviewoftheyoungdemographicstructureof the country, theUNwill support theRGoB in strengthening thenational capacity to address theemergingchallengesfacedbytheyoungpeople.Thenationalcapacitybuildingwillfocusonenhancingcapacityofkeypartnerstopromotehealthyandpositivebehaviour;andbuildingofcapacityofrelevantpartnerstoprovideasupportive,preventiveandparticipativeenvironmentforyoungpeople.


CT Outcome 1:Improvedqualityofeducationdeliveredbyrelevantstakeholders.CT Outcome 2:Nationalcapacitytoreviseandimplementtheeducationalcurriculaenhanced.CT Outcome 3:Schoolenrolment,particularlyforgirls,increasedthroughimprovedfacilities,schoolfeedingandtargetedadvocacy.

CT Outcome 4:Nationalcapacitystrengthenedtoaddresstheemergingchallengesfacedbyyoungpeople.

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UNDAFOUTCOMEFOUR:By2012,institutionalcapacityandpeople’sparticipationstrengthenedtoensuregoodgovernance.(MDGs1,3,8)

Bhutan has made significant strides towards further promoting a system of governance that isresponsiveandaccountabletothepeoplethroughseriesofpoliticalreformsaimedatdecentralizationanddemocratization.Thecountrywillundergoamajorpolitical transitionwith theadoptionof theConstitutionin2008.Thisisexpectedtobringaboutfundamentalchangesinthegovernancesystemandwillinvariablyposenumerouschallengesincludingtheneedtoenhancepeople’sparticipationandestablishmentofnewsystemsandinstitutionsneededtosupportgoodandeffectivegovernance.

TheUNwill also support theRGoB and other stakeholders to strengthen transparency, efficiency,effectiveness,participationandaccountabilityatalllevels.Thefoundationofparliamentarydemocracyisfreeandfairelections.TheUNSystemwillsupportcapacitydevelopmentofalltherelevantagenciesat thenationalandlocal levels.Asaccountabilityingovernanceisbasedonsystemicpreventionofcorruption,supportforenhancingthecapacityofkeyagencieswillbeprovidedtocombatcorruption.Supportwillalsobeprovidedtoenhancecapacityofthejudiciaryinensuringdemocraticgovernanceand rule of law. E-governance and e-literacy initiatives will be supported to improve access toinformationandservicedelivery.Consideringtheimportantrolethatthemediacanplayinfosteringgoodgovernance,theUNwillhelpstrengthenthecapacityofthemedia.

Community participation and empowerment are vital for effective decentralisation. The UN willcontinue supporting the ongoing decentralisation process through capacity development of localgovernance systems including targeted support for blockgrantswhichhas proved to be a successin Bhutan. In particular, support will be provided to local governments and CSOs to enhance theparticipationofwomen.

TosupportBhutaninmeetingitsinternationaltreatyobligations,theUNwillhelpstrengthennationalcapacitytoformulate,reviewandimplementlegislationsinlinewithratifiedinternationalconventionsattherequestoftheRGoB.


CT Outcome 1:Transparency,efficiency,effectiveness,participationandaccountabilitystrengthenedatalllevels.

CT Outcome 2:Strengthenednationalcapacityandsystemstoformulate,reviewandimplementnationallegislationsinlinewithratifiedinternationalconventions.

CT Outcome 3:Capacityofkeyinstitutionstosupportparliamentarydemocracystrengthened.CT Outcome 4:Localgovernancesystemsandcapacitystrengthenedwithincreasedparticipationofwomen.

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UNDAFOUTCOMEFIVE:By2012,nationalcapacityforenvironmentalsustainabilityanddisastermanagementstrengthened.(MDG7)

Byplacingenvironmentconservationatthecoreofdevelopmentplanning,Bhutanhaslongrecognizedthat sustained growth and poverty reduction will hinge on environmental sustainability. Bhutan’sstrongeffortshavebeenwidelyrecognisedandareseenasexemplaryinbalancingdevelopmentwithenvironmentalconservation.However,increasingpopulationandgrowingeconomicactivitiesposesamajorchallengetostayonthiscourse. To support the national priority of environment sustainability, theUNSystemwill support the keystakeholderstoenhancenationalcapacitytomainstreamenvironmentconcernsintopoliciesplansandprograms.TheUNwillalsohelpstrengthentheinstitutionalcapacitiesofthekeyagenciestoimplement,monitor and evaluate rules and regulations for environmental mainstreaming. Support will also beprovidedtoenhancenationalcapacitiestomeetreportingrequirementsfortheMultilateralEnvironmentAgreements.As a part of supporting rural livelihoods in remoteGewogs, theUNwill partnerwithgovernmentandprivatesector tosupportcommunities to implement renewableenergyprogramandprovideaffordableandrenewable/alternativeenergytechnologies.TheUNwillalsocontinuetosupporttheRGoB’seffortsinconservationofbio-diversityandecosystemswhichwillincludeoperationalizationoftheprotectedareasandthebiologicalcorridors.

Disaster management capacity must be strengthened as Bhutan is vulnerable to numerous naturalhazardssuchasglaciallakeoutbursts,floods,earthquakes,landslides,andforestfires.AlthoughBhutandoesnotcontributetogreenhousegasemission,thecountryisvulnerabletoeffectsofclimatechangeTheUNwill focus on supporting capacity strengthening of key government agencies to implementdisastermanagementframework,mainstreamdisaster/climateriskreductionintoplansandpolicesandtostrengthennationalandlocalcapacityfordisasterpreparednessandresponsesystems.


CT outcome 1:Nationalcapacitytomainstreamenvironmentalconcernsintopolicies,plansandprogramsenhanced.

CT Outcome 2:Nationalcapacityfordisasterandriskmanagementstrengthened.CT Outcome 3:Accesstosustainableenergyandlivelihoodsforremotegewogsimproved.CT Outcome 4:Conservationofbio-diversityandecosystemsenhanced.

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III. Estimated Resource Requirements

TheUnitedNationsCountryTeamestimatesthatapproximately,USD70.24millionisrequiredfortheachievementoftheUNDAFOutcomesdescribedinSectionII.

TheindicativeresourcemobilizationtargetforthisUNDAFcovering2008-2012byUNDAFoutcomesareasfollows:

UNDAF Outcomes USD Millions UN Agencies

UNDAFOutcome1: 12.66UNDP,UNICEFFAO,UNESCO,WFP,UNIFEM,UNFPA,IFAD*

UNDAFOutcome2: 15.60 UNICEF,UNFPA,WHOUNDAFOutcome3: 19.46 UNICEF,UNFPA,UNESCO,

WFPUNDAFOutcome4: 10.90 UNDP,UNICEF,UNCDF,

UNESCO,UNIFEM

UNDAFOutcome5: 11.62UNEP,UNDP(includingGEFandGEF/SGPfunding),UNESCO,UNICEF,WFP

TOTAL 70.24*ResourcesfromIFADhavenotbeenincludedintheresourcemobilisationtargetasIFADfinancingisyettobedecidedbytheRGoB.

WhiletheabovetablereflectsUNresourcemobilisationtargets,theattainmentofUNDAFOutcomeswillrequireadditionalresources.TheneedforcontinuedsupportforBhutan’sdevelopmentiscriticalatthisjunctureconsideringtheimmensechallengesandopportunitiespresentedbyprofoundsocio-politicalchangesusheredinbydemocratisation,decentralisationandpursuitoftheMDGsandothernationaldevelopmentpriorities.Inthiscontextitisimperativetomobiliseadequatelevelsofresourcestoensureasmoothpoliticaltransitionandsustainthedevelopmentmomentumgainedthusfar.Infrastructure,inparticularroadaccess,continuestoremainacriticaldeterminantofdevelopmentinBhutanandwillimpacton,amongstotherdevelopmentgoals,theattainmentoftheMDGs.TheUNSystemwillsupporttheRGoBinthisimportantphaseofpoliticaltransitionandeconomicdevelopmentbysupportingthegovernmentthroughitsregularresourcesaswellasthroughmobilisingadditionalresources.

IV. Implementation

TheUNDAFwillbeimplementedinclosecollaborationbetweentheRGoBandtheUNSystem.Otherkeypartnersincludecivilsocietyorganisations,stakeholdersatlocallevelsanddevelopmentpartners.SincetheTenthPlanisyettobefinalised,therolesofmulti-andbi-lateraldevelopmentpartnershavenotbeenspecified in thecolumnpertaining to the“roleofpartners” in theUNDAFresultsmatrix.Buildingonpastpractices,theUNsystemintendstocontinueworkingwiththesepartnersbaseduponnationalprioritiesandmandates.Resultsbasedplansofthesectors,DzongkhagsandGewogswillbeusedtocoordinateatargetedapproach.

TheUNDAFwillbeimplementedthroughgovernmentapprovedcountrycooperationprogrammesoftheUNagencies.IndividualUNcountryprogramsandprojectswillhaveexplicitlinkswiththeUNDAFOutcomesandcontributetothenationaldevelopmentgoals.Joint-programmingwillbefurtherexploredamongUNagenciesbuildingonalreadyongoingeffortssuchasclosecollaborationonHIV/AIDSandin theareaofeducationanddisastermanagement.TheUNDAFwillbeoperationalisedthroughtheCountryProgrammeActionPlans(CPAP)mechanism.InimplementingtheUNDAF,theUNCTwillfocusonresultsandUNDAFindicatorswillbeusedtotrackoutcomechangesandimplications.WorkamongUNagencieswillbecoordinatedinrelevantUNthemegroupsbasedonUNDAFOutcomes.

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Optimalusewillbemadeofexistinggovernmentcommittees/taskforceswherenecessaryandtotheextentpossibleratherthancreatingnewentities.TheHarmonisedApproachtoCashTransfer(HACT)will be implemented from 2008 to reduce transaction costs for implementing partners and enhancenational ownership and capacity of national systems and institutions. The UN will work with theRGoBto increase theuseof thenationalsystems inkeepingwith theprincipleand thespiritof theParisDeclaration.TheUNCTunder the leadershipof theUNResidentCoordinatorwill ensure theimplementationoftheUNDAF.

V. Monitoring and Evaluation

Monitoringandevaluationareessentialtoensureprogrammaticcoherenceandefficientutilizationofresources.TheUNCTandtheRGoBhave,throughaprocessofjointconsultation,agreedonanM&Ematrixpresented inAnnex2.Thematrix aimedat providing rigorousmonitoring andevaluationofUNDAFimplementation,comprisesof realisticandaccessible indicators for theUNDAFoutcomes.ThebaselinedatawillbeobtainedfromtheCCA,MDGReportsandrelevantgovernmentpublications.TheindicatorscouldchangeovertimeasnewsourcesofdataandinformationbecomeavailableandastheUNprogramsevolveduringtheUNDAFperiodtoreflecttheemergingneedsandprioritiesoftheRGoB.ItistheintentionoftheUNDAFtousedisaggregateddatawhereverpossible.TheUNiscommittedtostrengthenthecapacityofkeynationalagenciestocollect,analyseandusedata.

1. Coordination and Harmonisation Mechanisms

EffectiveimplementationoftheUNDAFwillrequiregreaterharmonisationamongUNagencies.Theharmonisedprogrammecycle(2008-2012)ofindividualUNagencieswillfacilitateeffectiveindividualandjointprogrammingandjointmonitoringandevaluation.Itisexpectedtoreducetheburdenongovernment.TheofficeoftheUNRCwillbeusedtocoordinateintra-UNagencies’ input into theUNDAF framework. The existingRGoB donor coordinationmechanismwillbeusedtocoordinatesimilarareasofinterestandworkwithotherdonors.

2. UNDAF Annual Review and Evaluation

Annual UNDAF reviews will be conducted jointly by the UNCT and the RGoB to assessachievementsandshortcomingandidentifystrategiesformeetingtheresultssetoutinthematrix. SuchregularreviewswillensurethattheUNDAFremainsrelevanttothenationaldevelopment priorities. The theme groups will prepare annual progress reports for the UNRC including trackingofquantitativeandqualitativeindicators.BasedonthesereportstheUNRCwillbring outtheannualreportsummarizingprogresstowardsUNDAFoutcomes.

TheUNDAFevaluationwillalsobeundertakenjointlybytheUNCTandRGoBintwostages.

a)UNDAFOutcomeassessmentledbyrelevantUNthemegroupswillbeconductedin collaborationwiththeRGoBinthecourseofimplementation.Theresultswillbe usedtoassessprogresstowardsthenationaldevelopmentgoalsandtheMDGsand providerecommendationsforactionstoimproveperformance. b) FinalUNDAFevaluationwillbeconductedjointlybytheUNCTandRGoBthroughtheSteeringCommitteein2011.

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Annexes

1. UNDAF Results Matrix

2. Monitoring and Evaluation Framework

3. Macro Assessment of the Public Financial Management system in Bhutan

13

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UN

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1:B

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ploymentincreasedintargetedpoorareas(M

DG1,8)

Cou

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Accesstosocio-economicservices,markets

and

info

rmat

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impr

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for

sm

allh

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r1 and

marginalfarmersintargetedruralareas.

1.1Accessimprovedthroughruralinfrastructuresuchasfarm

roads,pow

ertillertracks,suspensionbridges,andmuletracks.

(IFAD)

1.2Improvedpostharvestmanagem

entfacilitiesandpractices

promoted.(IFAD)

1.3Accesstoruralcreditandmarketsim

proved.(IFAD)

1.4AccesstoICT,m

edia,postalandothergeneralpublicservices

andmarketinformationimproved,particularlyforwom

enand

youth,throughtheestablishm

entofcommunityinformation

centers.(UNDP,UNV,UNESC

O)

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ernm

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MOA,M

OIC,

BDFC

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Adm

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GYTs/DYTs

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Out

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Foodsecurityamongsm

allholderfarmersand

othervulnerablegroupsintargetedruralareas

enhanced.

2.1A

griculturalproductivityenhancedthroughincreasedsupplyon

inputslikehighyieldingvarietyseeds,seedlings,fertilizersand

improvedirrigationsystem

s.(IFAD,FAO)

2.2Capacityofrelevantagenciesandaffectedcom

munitiesen

hancedtoaddresstheenvironm

ent-povertynexus.(UNDP)

2.3Capacityofsm

allfarmersenhancedthroughformationofself-

helpgroupsandtargetedextensionservices.(UNDP,UNV,

IFAD)

Gov

ernm

ent:

MOA,N

EC,

DzongkhagAdm

in,

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IX

1 Smallholderdefinedasresourcepoorandlowincomefarmerswithlessthan5acresofagriculturalland.

14

Bhu

tan

UN

DA

F 20

08-2

012

Nat

iona

l pri

orit

y or

goa

ls:Tohalvepovertyby2013

UN

DA

F o

utco

me

1: B



DG1,8)

Cou

ntry

Tea

m o

utco

mes

Cou

ntry

Tea

m o

utpu

tsR

ole

of p

artn

ers

Res

ourc

e m

obili

zati

on

targ

ets

(USD

mill

ion)

CT

Out

com

e 3

CapacityoftheRGOBstrengthenedto

formulatepolicyfram

eworkforPrivate

Sect

or D

evel

opm

ent t

o re

spon

d to

eco

nom

ic

constraintsandvulnerabilitieswithfocuson

employmentgenerationandpro-poorgrowth.

3.1

CapacityofRGoB

enhancedtoformulateindustrialandtrade

policiesthatarepro-poor,gendersensitiveandcultureandheritage

based.(UNDP,UNESC

O,U

NC

TAD

, UN

ESC

AP

)3.2

Capacityofpublicandprivatesectorenhancedtomeetinternational

standardsforexports.(UNDP,U

NC

TAD

, UN

ESC

AP

)3.3

Accesstointernationalm

arketsenhancedthroughimprovednegotiation

capacityandunderstandingofglobalandregionaltradeagreementsand

facilities.(UNDP,U

NC

TAD

, UN

ESC

AP

)

3.4

Capacityofrelevantagenciesenhancedinlabourmarketanalysisto

guidenationalemploymentandhum

anresourcedevelopm

ent

policies,plansandstrategies.(UNDP)

Gov

ernm

ent:

MTI,M

OA,

MOLHR,M

OF,

MOHCA,N

CWC,

PC

Oth

er p

artn

ers:

CSO

s,M

ultilateral

agencies,B

ilateral

agencies

UNDP:1.20

U

NESC

O:0.10

CT

Out

com

e 4

New

MicroandSMEsandjobscreatedwith

emphasisonwom

enandyouth.

4.1

Com

munityempowermentandformationofcooperativespromoted

toaddressissuesofproductioncapacityandpostharvestmanagem

ent,

marketing,accesstocreditandinformationfacedbysm

all

producers.(UNDP)

4.2

Capacityofrelevantinstitutionsenhancedtomanageandimprove

accesstomicrofinance.(UNDP)

4.3

CapacityandskillsdevelopedtosetupandmanageMicroandSMEs

throughimprovedaccesstomicro-finance,businessdevelopm

ent

services(BDS),m

arketingandrelevantextensionservicesfor

productionandpost-harvestmanagem

ent.(UNDP,UNV,IFA

D)

4.4M

icroandSMEdevelopmentpolicyformulatedwhichisgender

sensitiveandyouthoriented.(UNDP)

Gov

ernm

ent:

MTI,M

OA,

MOLHR,N

CWC,

PC,MOIC

Oth

er P

artn

ers:

BDFC

,CSO

s,

Mul

tilat

eral

agencies

IFA

D*TBD

U

NDP2.70

Thro

ugho

ut th

e R

esul

ts M

atri

x, th

e U

N a

genc

ies

whi

ch m

ainl

y pr

ovid

e TA

are

indi

cate

d in

ital

ic fo

nt.

15

Bhu

tan

UN

DA

F 20

08-2

012

Nat

iona

l pri

orit

y or

goa

ls: Tohalvepovertyby2013

UN

DA

F o

utco

me

1: B



DG1,8)

Cou

ntry

Tea

m o

utco

mes

Cou

ntry

Tea

m o

utpu

tsR

ole

of p

artn

ers

Res

ourc

e m

obili

zati

on

targ

ets

CT

Out

com

e 5

Enhancedcapacityofpublicsectorto

implem

entresultsbasedpolicy,planand

programdevelopmentespeciallyforM

DGand

povertyreduction.

5.1

MDGbasedmonitoringandevaluationsystem

integratedintothe

nationalM

&EsystemthroughoperationalizationofM

ISsuchas

Gew

ogPlanningInformationSystem

(GPIS)Drukinfoand

VulnerabilityAssessm

entM

apping.(UNDP,UNICEF,W

FP)

5.2

Nationalcapacity,atcentralandlocallevels,forcollection,analysis

andproductionoftimely,reliableanddisaggregatedstatisticaldata

enhanced.(UNDP,UNICEF,W

FP,U

NFPA,U

NIFEM,U

NE

SCA

P)

5.3

Nationalcapacity,atcentralandlocallevels,enhancedtoim

plem

ent

RBMinplanning,monitoringandevaluationsystem

takinginto

considerationcrosscuttingissuessuchasICT,environment,genderand

governance.(UNDP,UNICEF,W

FP,U

NE

SCA

P)

Gov

ernm

ent:

PC,N

SBandother

rele

vant

min

istr

ies

agenciesand

dzongkhags

Oth

er p

artn

ers:

Mul

tilat

eral

agencies

UNDP2.00

UNFPA0.33

UNICEF1.58

UNIFEM0.05

(fortheSA

ARC

Genderdatabase)

WFP0.10

Coo

rdin

atio

n M

echa

nism

s an

d P

rogr

amm

e M

odal

itie

s:UNthem

egrouponPovertywillbeestablishedtocoordinateandmonitorworkam

ongtheUNAgencies.Otherrelevantdevelopmentpartnerswillbeinvitedtothethem

egroup.

TheofficeoftheUNRCwillbeusedtocoordinateworkinsimilarareasofinterestandtosupportgovernm

ent’sdonorcoordinationmechanism

.

EstablishedRGoB

mechanism

swillbeusedtocoordinateandfacilitatetheimplem

entationoftheUNDAF.TheDADMwilltakeleadroleinaidcoordination.

Theleadgovernm

entagencieswillbePC

S,M

OA,M

TI,M

OLHR,N

SB,

RelevantG

overnm

entA

genciesandCSO

swillbeinvolvedintheimplem

entationofalltheoutcom

es.

*TheresourcefiguresforIFA

DwillbeincludedifandwhentheRGoB

decidestoseekfinancingfromIFA

D.

16

Bhu

tan

UN

DA

F 20

08-2

012

Nat

iona

l pri

orit

y or

goa

ls: T

oimproveaccessibility,qualityandsustainabilityofhealthcaredeliverysystem

UN

DA

F O

utco

me

2:By2012,increasedaccessandutilizationofqualityhealthserviceswithemphasisonreproductivehealth,m

aternal

andchildhealthandnutrition,HIV/AIDS,TB,m

alariaandothernon-com

municabledisease.(MDG4,5,6)

Cou

ntry

Tea

m o

utco

mes

Cou

ntry

Tea

m o

utpu

tsR

ole

of p

artn

ers

Res

ourc

e m

obili

zati

on

targ

ets

(USD

mill

ion)

CT

Out

com

e 1

CapacityofRGoB

toformulateand

impl

emen

t res

ults

ori

ente

d po

licie

s an

d strategiesthatcreateanenablingenvironm

ent

forreproductivehealth,m

aternalandchild

health,STI,HIV/AIDS,TBandmalaria

programmesstrengthened.

1.1Researchandanalysesincludinghealthsurveillanceandmonitoring

systems,knowledgeandbehaviour,epidemiology,supportedby

disaggregateddata,wherepossible,toguidepolicy,strategiesand

guidelinesdevelopmentconducted.(UNFPA,U

NICEF,W

HO)

1.2Enhancedskillsandtechnicalknowledgeofrelevantnationaland

localinstitutionstoformulate,updateandimplem

entpolicies,

strategiesandguidelines.(UNFPA,U

NICEF,W

HO)

1.3Program

memonitoring&managem

entsystemsstrengthened.

(UNFPA,U

NICEF,W

HO)

Gov

ernm

ent:

MOH,PC,N

SB,

NCWC,

Oth

er P

artn

ers:

YDF,RENEW

Multilateralagen-

cies,B

ilateral

agencies

UNICEF:0.80

UNFPA:0.15

WHO*

CT

Out

com

e 2

CapacityofRGoB

strengthenedtoincrease

accesstoanddeliveryofqualityhealth

servicesforallincludingreproductivehealth,

maternalandchildhealthandnutrition,

TB,m


municable

diseases.

2.1Improvedavailabilityinhealthfacilitiesofessentialcom

modities,

equipmentandmodificationoffacilitiesforRHandM

CH

program

mes.(UNFPA,U

NICEF)

2.2C

apacityofhealthmanagersandprovidersatdifferentlevels

enh

ance

d to

del

iver

com

preh

ensi

ve a

nd c

lient

-ori

ente

d se

rvic

es o

n reproductivehealth/maternalhealth,childhealth,andyouthfriendly

healthservices.(UNFPA,U

NICEF,W

HO)

2.3M

anagem

entcapacityandtechnicalknowledgeofhealthservice

pro

vide

rs a

t all

leve

ls e

nhan

ced

to p

rovi

de e

ffec

tive

prev

entio

n an

d treatmentinterventionsformalaria,TBandnon-com

municable

diseases.(WHO)

2.4.C

apacityofRGoB

andcom

munitiesstrengthenedtoexpand

coverageofwaterandsanitationprogram.(WHO)

2.5Strengthenedcapacityofrelevantinstitutionsatnationalandlocal

levelstodevelopanddeliverinformation,counsellingandtargeted

healthinterventionsonvictimsofviolenceagainstw

omenand

children.(UNFPA,U

NICEF)

2.6C

apacityofkeygovernmentagenciesforpreparednessandresponse

topublichealthemergenciesenhanced.(UNFPA,U

NICEF,W

HO)

Gov

ernm

ent:

MOH,M

OHCA,

Judiciary,

MOA,M

OFA

Oth

er p

artn

ers:

localw

atersupply

caretakers.

Mul

tilat

eral

agencies,B

ilateral

agencies,NCWC,

RENEW,Y

DF

UNICEF3.00

UNFPA2.75

WHO*

17

Bhu

tan

UN

DA

F 20

08-2

012

Nat

iona

l pri

orit

y or

goa

ls: T

oimproveaccessibility,qualityandsustainabilityofhealthcaredeliverysystem

UN

DA

F O

utco

me

2:By2012,increasedaccessandutilizationofqualityhealthserviceswithemphasisonreproductivehealth,m

aternal

andchildhealthandnutrition,HIV/AIDS,TB,m


municabledisease.(MDG4,5,6)

Cou

ntry

Tea

m o

utco

mes

Cou

ntry

Tea

m o

utpu

tsR

ole

of p

artn

ers

Res

ourc

e m

obili

za-

tion

targ

ets

CT

Out

com

e 3

Capacityofgovernmenttorespondto

prevention,careandtreatmentofHIV/AIDS

andST

Ithroughmulti-sectoralapproach

strengthened.

3.1Nationalcapacitystrengthenedformulti-sectoralplanning,

coordination,managem

entandmonitoringofeffectiveintegrated

HIVprevention,treatmentandcarestrategiesandplans.(UNFPA,

UNICEF)

3.2Convergenceamongstkeynationalpartnerfacilitatedand

strengthenedtoim

plem

entm

ulti-sectoralNationalA

IDSStrategic

PlanthroughcapacitybuildingofRGoB

oncomprehensiveHIV

prevention,treatment,careandsupportincludingpreventionof

mothertochildtransm

issionofHIV,m

onitortheHIVandAIDS

epidem

icthroughenhancedsurveillancesystemanddeliverquality

HIV/AIDSinformationandeducation,particularlytovulnerable

groups.(UNICEF,W

HO,U

NFPA)

Gov

ernm

ent:

N

atio

nal

Com

mis

sion

for

HIV/AIDS,M

OH,

MOE,relevant

min

istr

ies

Oth

er p

artn

ers:

YDF,RENEW,

Mul

tilat

eral

agencies,

MST

F,religious

institutions,

UNICEF:0.90

UNFPA0.25

WH

O

CT

Out

com

e 4

RGoB

andcom

munitypartnershipsenhancedto

prom

oteutilisationofhealthservices.

4.1Capacityofreligiousandcom

munityinstitutions,villagehealth

workersandhealthpersonnelatcentralandlocallevelsenhanced

tocoordinate,develop,implem

entandmonitorhealth-related

behaviouralchangeinterventions.(UNFPA,U

NICEF,W

HO)

4.2Skillsofdistrictlevelmanagersandhealthworkersinsocial

communicationandcommunitypartnershipdevelopmentenhanced.

(UNFPA,U

NICEF)

Gov

ernm

ent:

MOH,N

CWC,

DYT,G

YT

Oth

er p

artn

ers:

YDF,RENEW,,

media,religious

inst

itutio

ns

UNICEF0.60

UNFPA0.15

WH

O

Coo

rdin

atio

n M

echa

nism

s an

d P

rogr

amm

e M

odal

itie

s:UNthem

egrouponHealthwillbeestablishedtocoordinateandmonitorworkam


egroup.TheofficeoftheUNRCwillbeusedtocoordinateworkinsimilarareasofinterestandtosupportgovernm


.

EstablishedRGoB

mechanism



Theleadgovernm

entagencywillbetheMinistryofHealth.

RelevantG

overnm

entA

genciesandCSO



es.

UNthem

egrouponHealthwillbeestablished,otherrelevantdevelopmentpartnerswillbeinvited.

Note:*TheW

HOresourcemobilisationtargetforUNDAFOutcome2(the4CTOutputs)isestimatedUSD

7.00million.

18

Bhu

tan

UN

DA

F 20

08-2

012

Nat

iona

l Pri

orit

y : T

oimprovequality,relevanceandcoverageofeducation

UN

DA

F O

utco

me

3:By2012,accesstoqualityeducationforallw

ithgenderequalityandspecialfocusonthehard-to-reachpopulationimproved.(MDG2,3)

Cou

ntry

Tea

m O

utco

me

Cou

ntry

Tea

m O

utpu

tsR

ole

of p

artn

ers

Res

ourc

e m

obili

za-

tion

tar

gets

(mill

ion

USD

)C

T O

utco

me

1

Improvedqualityofeducationdelivered

byrelevantstakeholders.

1.1Capacityofkeypartnersincludingparentsandcommunitiesto

provideyoungchildrenwithearlylearningopportunities

strengthened.(UNICEF)

1.2CapacityofMinistryofEducationandotherpartnersatalllevels

includingcommunityinCom

munity/Primaryschoolsstrengthened

tomanagechildfriendlyschoolsandschoolfeeding.

(UNICEF,WFP,U

NESC

O)

1.3Capacityofteachersandrelevanteducationpartnerstoaddressthe

educationofchildrenwithspeciallearningneedsenhanced.(UNICEF)

1.4CapacityofstakeholdersstrengthenedtodeliverNFE

servicesfor

adultsandyoungpeople.(UNICEF,UNESC

O)

Gov

ernm

ent:

MOE,N

CWC,

GYT/DYT,D

zongkhag

Adm

inis

trat

ion

Oth

er P

artn

ers:

media,C

SO,PTA,

Multilateralagencies,

Bilateralagencies

UNICEF:2.75

WFP:0.50

UNESC

O:0.06

CT

Out

com

e 2

Nationalcapacitytoreviseand

impl

emen

t the

edu

catio

nal c

urri

cula

enhanced.

2.1CapacityofMOEstrengthenedtoreviseeducationalcurriculain

linewithemergingneedsincludinglifeskills,adolescentreproduc-

tivesexualhealth,m

ulti-gradeteaching,childfriendlyschools.

(UNICEF,UNFPA,U

NESC

O)

2.2CapacityofCollegesofEducationandotherrelevantinstitutions

strengthenedtoprovidepreandin-serviceteachertrainingbased

onmodifiedcurriculumtodeliverqualityeducationandmonitor

learningachievements.(UNICEF,UNFPA,U

NESC

O)

2.3Schoolsupportsystemandmonitoringmechanism

strengthenedat

nationalandlocallevel.(UNICEF,WFP,U

NFPA

Gov

ernm

ent:

MOE,M

OH,R

UB,

Oth

er P

artn

ers:


Bilateralagencies

UNICEF:1.75

UNFPA1.00

UNESC

O0.15

WFP:0.05

CT

Out

com

e 3

Schoolenrolment,particularlyforgirls,

increasedthroughimprovedfacilities,

schoolfeedingandtargetedadvocacy.

3.1C

ommunityprimaryandmonasticschools/n

unne

ries

pro

vide

d w

ith

w

aterandsanitationfacilitiesandhealth,nutritionandhygiene

education.(UNICEF,W

FP)

3.2Schoolfeedingandfeedinginfrastructuresinselectedprimary/

secondaryschoolsprovided.(WFP)

3.3C

apacityofkeystakeholderstosupporttimelyandincreased

enrolmentstrengthened.(WFP,U

NICEF)

Gov

ernm

ent:

MOE,

MOH,M

OA,D

ratsang

Lhentshog,D

zongkhag

Adm

in,D

YT,G

YT

Oth

er P

artn

ers:

, Media,CSO

s,


Bilateralagencies

WFP:10.00

UNICEF2.25

19

Bhu

tan

UN

DA

F 20

08-2

012

Nat

iona

l Pri

orit

y :T

oimprovequality,relevanceandcoverageofeducation

UN

DA

F O

utco

me

3:By2012,accesstoqualityeducationforallw

ithgenderequalityandspecialfocusonthehard-to-reachpopulationimproved.(MDG2,3)

Cou

ntry

Tea

m O

utco

me

Cou

ntry

Tea

m O

utpu

tsR

ole

of p

artn

ers

Res

ourc

e m

obili

zati

on

targ

ets

(mill

ion

USD

)C

T O

utco

me

4

Nationalcapacitystrengthenedto

addresstheem

ergingchallengesfaced

byyoungpeople.

4.1Capacityofkeypartnerstopromotehealthyandpositivebehaviour

am

ongyoungpeoplethroughlife-skillseducationstrengthened.

(UNFPA,U

NICEF)

4.2Capacityofrelevantpartnersenhancedtofurtherprovideasupportive,

preventiveandparticipativeenvironm

entforyoungpeople.(UNICEF,

UNFPA)

Gov

ernm

ent:

MOE,M

OH,

MOLHR,N

CWC

Oth

er P

artn

ers:

CSO

s,Bilateralagencies

UNICEF:0.80

UNFPA:0.15

Coo

rdin

atio

n M

echa

nism

s an

d P

rogr

amm

e M

odal

itie

s UNthem

egrouponEducationwillbeestablishedtocoordinateandmonitorworkam




.

EstablishedRGoB

mechanism



Theleadgovernm

entagencywillbetheMinistryofEducation.

RelevantG

overnm

entA

genciesandCSO



es.

20

Bhu

tan

UN

DA

F 20

08-2

012

Nat

iona

l Pri

orit

y:Tofostergoodgovernanceasacorevaluefordevelopment

UN

DA

F O

utco

me

4:B

y2012,institutionalcapacityandpeople’sparticipationstrengthenedtoensuregoodgovernance.(MDG1,3,8)

Cou

ntry

Tea

m o

utco

mes

Cou

ntry

Tea

m o

utpu

tsR

ole

of p

artn

ers

Res

ourc

e m

obili

za-

tion

targ

ets

CT

Out

com

e 1

Transparency,efficiency,effectiveness,

participationandaccountabilitystrength

-enedatalllevels.

1.1.B

etterservicedeliveryandincreasedaccesstoinformation

throughpromotionandimplem

entationofe-governanceatall

levels.(UNDP,UNESC

O,U

NV)

1.2D

igitaldivide,betweenrural-urbanareas,menandwom

en,

reducedthroughimplem

entationofe-governanceande-literacy.

(UNDP,UNV)

1.3A

ccesstoinformationandtransparencyenhancedthrough

strengthenedroleandcapacityofthemedia.(UNDP,UNICEF,

U

NESC

O)

1.4C

apacityofkeynationalagenciesenhancedincom

bating

corruptionandprom

otingaccountability.(UNDP)

1.5N

ationalcapacityatcentralandlocallevelenhancedtoensure

soundpublicfinancialm

anagem

entpractices.(ExCom

Agencies)

Gov

ernm

ent:

MoF,

MOIC,B

ICMA,R

AA,

ACC,M

oHCA,O

AG,

Localgovernm

ents,

Oth

er P

artn

ers:

CSO

s an

d Media,M

ultilateral

agencies,B

ilateralagencies

UNICEF:0.20

UNDP:1.90

UNESC

O:0.10

CT

Out

com

e 2

Strengthenednationalcapacityandsys

-temstoformulate,reviewandim

plem

ent

nationallegislationsinlinewithratified

internationalconventions.

1.1Enhancednationalcapacityininternationaltreatyreporting

obligations.(UNDP,UNICEF,UNIFEM)

2.2Capacityofjudiciary,lawenforcementandrelevantagencies

strengthenedindevelopingandimplem

entingjuvenilejustice

systemandwom

enandchildfriendlyprocedures.(UNDP,

UNICEF,UNIFEM)

2.3Strengthenedcapacityofrelevantinstitutionstoenhance

knowledgeandinformationonratifiedconventionsamong

partnersandthepublic.(UNDP,UNICEFUNESC

O)

2.4Capacityandmechanism

sofrelevantagenciestodraft,reviewand

im

plem

entnationalpoliciesandlegislationsstrengthened.(UNDP,

UNICEF,U

NESC

O)

Gov

ernm

ent:OAG,Par

-liament,Judiciary,M

oFA,

PCS,RBP,NCWC,M

oF

Oth

er P

artn

ers:

CSO

s,

Media,M

ultilateral

agencies,B

ilateralagencies

UNICEF:1.45

UNIFEM:0.03

UNDP:0.80

UNESC

O:0.01

21

Bhu

tan

UN

DA

F 20

08-2

012

Nat

iona

l Pri

orit

y: Tofostergoodgovernanceasacorevaluefordevelopment

UN

DA

F O

utco

me

4: B

y2012,institutionalcapacityandpeople’sparticipationstrengthenedtoensuregoodgovernance.(MDG1,3,8)

Cou

ntry

Tea

m O

utco

me

Cou

ntry

Tea

m O

utpu

tsR

ole

of p

artn

ers

Res

ourc

e m

obili

zati

on

targ

ets

(mill

ion

USD

)C

T O

utco

me

3

Capacityofkeyinstitutionstosupport

parliamentarydem

ocracystrengthened.

3.1Enhancedcapacityofthreebranchesofgovernmentaswellas

mediainsupportingeffectivecoordinationandadvocacyfor

parliamentarydem

ocracy.(UNDP)

3.2Enhancedcapacityofkeyagenciesinconductingfreeandfair

electionsatnationalandlocallevels.(UNDP)

3.3Enhancedpublicawarenessongenderinclusivedemocratic

governance,rights,anddutiesthroughciviceducation.(UNDP,

UN

IFE

M)

3.4Enhancedinstitutionalcapacityofthejudiciaryinensuring

democraticgovernanceandruleoflaw.(UNDP)

Gov

ernm

ent:M

oF,

Judiciary,M

OIC,

BICMA,M

OHCA,ECB,

CabinetSecretariat,

OAG,Parliament,NCWC

Oth

er P

artn

ers:C

SOs,

Media,M

ultilateralagen-

cies,B

ilateralagencies

UNDP3.00

CT

Out

com

e 4

Localgovernancesystem

sandcapacity

strengthenedwithincreasedparticipation

ofwom

en.

4.1Strengthenedcapacityoflocalgovernm

entstoplan,im

plem

entand

managetheirresourcestopursuetheMDGs.(UNDP,UNCDF,

UNICEF)

4.2Increasedandeffectiveparticipationofwom

enindecisionmaking

andindevelopmentactivities.(UNDP,UNFPA,U

NICEF,

UNESC

O,UNV)

4.3Localcapacityfordevelopmentandfinancialmanagem

ent

enhancedthroughblockgrantsandintegratedapproachatgew

og

level.(UNDP,UNCDF)

Gov

ernm

ent:

MoH

CA,

PCS,RCSC

,MoF,

NCWC,Local

governments

Oth

er P

artn

ers:

CSO

s,

Media,M

ultilateral

agencies,B

ilateral

agencies

UNCDF:0.50

UNDP:2.40

UNICEF:0.50

UNESC

O:0.01

Coo

rdin

atio

n M

echa

nism

and

Pro

gram

me

Mod

alit

ies:

UNthem

egrouponGovernancewillbeestablishedtocoordinateandmonitorworkam




.

EstablishedRGoB

mechanism



Thekeygovernm

entagencieswillbeParliament,Judiciary,ACC,O

AG,EC,PC,M

OIC,M

OHCA,M

FA,M

OIC,B

ICMA,N

CWC

RelevantG

overnm

entA

genciesandCSO



es.

22

Bhu

tan

UN

DA

F 20

08-2

012

Nat

iona

l Pri

orit

y:Toenhanceenvironm

entalsustainabilityanddisastermanagem

ent

UN

DA

F O

utco

me

5:B

y2012,nationalcapacityforenvironmentalsustainabilityanddisastermanagem

entstrengthened(M

DG7)

Cou

ntry

Tea

m o

utco

mes

Cou

ntry

Tea

m o

utpu

tsR

ole

of p

artn

ers

Res

ourc

e m

obili

-za

tion

targ

ets

CT

out

com

e 1

Nationalcapacitytomainstream

environm

entalconcernsintopolicies,

plansandprogramsenhanced.

1.1C

apacityofnationalandlocalagenciestomainstreamenvironmtal

concernsintotheirpoliciesandplansstrengthened.(UNDP,UNEP)

1.2Environmentm

ainstreamingtoolsstrengthened(UNEP,UNDP)

1.3N

ationalandlocalinstitutionalcapacitiesfordevelopment,

implem

entation,monitoringandevaluationofguidelines,rulesand

regulationsforenvironmentalm

ainstreamingenhanced(UNDP,

U

NEP,U

NE

SCA

P)

1.4N

ationalcapacitytomeetreportingrequirem

entsforM

EAs

strengthened.(UNEP,UNDP)

Gov

ernm

ent:

NEC,PC

Lineministries,DECs,

GYTsDYTs,

Oth

er p

artn

ers:

RSPN,M

ultilateralagencies,

Bilateralagencies,CSO

s,

U

NEP:0.50

UNDP:1.20*

CT

Out

com

e 2

Nationalcapacityfordisasterandrisk

managem

entstrengthened.

UNDMT(UNDP,UNICEF,W

FP,

UNFPA,FAO,W

HO)andUNESC

O

2.1Capacityofnationalfocalagencyandotherstakeholdersto

im

plem

entdisastermanagem

entframew

orkstrengthened.(WFP,

UNDP,UNV,U

NICEF,U

NE

SCA

P)

2.2Nationalandlocalcapacityfordisasterpreparednessandresponse

systemstoprevent,m

itigateandcopewithdisasters/clim

atechange

strengthened.(WFP,U

NDP,U

NV,U

NICEF,U

NE

SCA

P)

2.3Disaster/climateriskreductionmainstreamedintonationalpolicies

andplans.(UNDP,W

FP,U

NICEF,UNESC

O)

Gov

ernm

ent:

MOHCA,M

OH,M

OE,

NEC,SQCA,M

TI,local

governments

Oth

er p

artn

ers:

vulnerablecom

munities,

CSO

s,Bilateralagencies

UNICEF:0.50

UNESC

O:0.10

WFP:0.02

UNDP:4.20**

CT

Out

com

e 3

Accesstosustainableenergyandliveli-

hoodsforremotegewogsimproved.

3.1Capacityofrelevantagenciesandcommunitiestoim

plem

ent

Renew

ableEnergyProgramim

proved.(UNDP)

3.2Effectiveandaffordablerenew

able/alternativeenergytechnologies

forrem

otegewogssupported.(UNDP)

Gov

ernm

ent:

MTI,BPC

,Dzongkhag

adm

inis

trat

ion

Oth

erpartners:privatesector

CSO

s,rem

otecommunties,


Bilateralagencies

UNDP:2.80***

CT

Out

com

e 4

Conservationofbio-diversityandeco

-system

senhanced.

4.1N

ationalcapacitytooperationalizenewprotectedareasand

biologicalcorridors.(UNDP)

4.2C

onservationofbio-diversitystrengthened.(UNDP)

Gov

ernm

ent:M

OA,N

EC,

relevantDzongkhags,

Oth

er p

artn

ers:

NGOs,CSO

s

UNDP:2.30***

*ofwhich0.5misGEFfunding

**ofwhich3.5misGEFfunding

***indicatesGEFfunding

23

Bhu

tan

UN

DA

F 20

08-2

012

Coo

rdin

atio

n M

echa

nism

s an

d P

rogr

amm

e M

odal

itie

s:

UNthem

egrouponenvironmentanddisastermanagem

entw

illbeestablishedtocoordinateandmonitorworkam

ongtheUNAgencies.O

therrelevant

developm

entpartnerswillbeinvitedtothethem

egroup.TheofficeoftheUNRCwillbeusedtocoordinateworkinsimilarareasofinterestandtosupport

government’sdonorcoordinationmechanism

.

EstablishedRGoB

mechanism


entationoftheUNDAF.TheDADMwilltakeleadroleinaid

coordination.Thekeygovernm

entagencieswillbetheNEC,PCS,M

OAandM

OHCA.RelevantG

overnm

entA

genciesandCSO

swillbeinvolvedinthe

implem


es.

24

Bhu

tan

UN

DA

F 20

08-2

012

Ann

ex 2

. M

ON

ITO

RIN

G A

ND

EV

AL

UA

TIO

N F

RA

ME

WO

RK

24 25

UN

DA

F ou

tcom

e1:

By

2012

, opp

ortu

nitie

s for

gen

erat

ion

of in

com

e an

d em

ploy

men

t inc

reas

ed in

targ

eted

poo

r are

as.

UN

DA

F In

dica

tors

:Po

pula

tion

belo

w n

atio

nal p

over

ty li

ne (M

DG

1 i

ndic

ator

), Po

verty

seve

rity

Inde

x by

gen

der o

f HH

hea

d, U

nem

ploy

men

t rat

e –

byge

nder

, age

grou

p, ru

ral-u

rban

(MD

G 8

i ndi

cato

r), L

abou

r for

ce p

artic

ipat

ion

rate

– b

y ge

nder

, age

gro

up a

nd ru

ral,

urba

n ar

eas,

(MD

G 8

indi

cato

r), G

ini c

oeff

icie

nt –

nat

iona

l, ru

ral-

urba

nC

T O

utco

me

Indi

cato

rs &

Bas

elin

e So

urce

s of V

erifi

catio

nR

isks

and

Ass

umpt

ions

H

ouse

hold

inco

me

by g

ende

r of h

ead

of h

ouse

hol d

N

o of

HH

with

in 0

.5 h

ours

wal

king

dis

tanc

e fr o

mth

e ne

ares

tro

ad h

ead

N

o of

peo

ple

avai

ling

cred

it (b

y ge

nder

)

Num

ber o

f Com

mun

ity In

form

atio

n C

entre

s pro

vidi

ng m

arke

tin

form

atio

n an

d ot

her m

u lti-

med

ia se

rvic

es

Num

ber o

f use

rs a

vaili

ngC

IC se

rvic

es (b

y ge

nder

and

age

)

MoA

, NSB

, MO

ICR

isks

:

Nat

ural

dis

aste

rs

M

alnu

tritio

n ra

te o

f chi

ldre

n un

der f

ive

Fo

od p

over

ty li

ne

Fo

odIn

secu

rity

Inde

x

Prop

ortio

n of

hou

seho

ld e

xpen

ditu

re d

evot

ed to

food

MoA

, NSB

WFP

, UN

DP,

MO

HR

isks

:

Nat

ural

dis

aste

rs

PS

D p

olic

y in

pla

ce a

nd im

plem

ente

d (N

o PS

D p

olic

y)

Empl

oym

ent r

ate

in p

rivat

e se

ctor

–to

tal,

wom

en, m

en, y

outh

Ex

port

dive

rsifi

catio

n an

d co

ncen

tratio

n in

dice

s

Impr

oved

per

form

ance

as m

easu

red

by W

orld

Ban

k’s D

oing

Bus

ines

sInd

icat

ors

MTI

, NSB

, RM

A, M

OF,

MoL

HR

UN

CTA

D (H

andb

ook

ofSt

atis

tics 2

005)

Wor

ld B

ank

(Doi

ng B

usin

ess

2006

)

Ass

umpt

ions

:

The

bene

fits o

ftra

depr

omot

ion

and

priv

ate

sect

or d

evel

opm

ent w

ill

accr

ue a

nd b

e m

ade

avai

labl

e

Sust

aine

d di

alog

ue w

ith th

epr

ivat

e se

ctor

CT

Out

com

e 1

Acc

ess t

o so

cio-

econ

omic

serv

ices

, mar

kets

and

in

form

atio

n im

prov

ed fo

r sm

allh

olde

r and

mar

gina

lfa

rmer

s in

targ

eted

rura

l are

as

CT

Out

com

e 2

Enha

nced

food

secu

rity

amon

g sm

all h

olde

r far

mer

s in

targ

eted

rura

l are

as.

CT

Out

com

e 3

Cap

acity

of t

he R

GoB

st

reng

then

ed to

form

ulat

e po

licy

fram

ewor

k fo

r priv

ate

sect

or d

evel

opm

ent t

ore

spon

d to

eco

nom

icco

nstra

ints

and

vul

nera

bilit

ies

with

focu

s on

empl

oym

ent

gene

ratio

n an

d pr

o-po

orgr

owth

.

Bhu

tan

UN

DA

F 20

08-2

012

26

UN

DA

F ou

tcom

e1:

By

2012

, opp

ortu

nitie

s for

gen

erat

ion

of in

com

e an

d em

ploy

me n

t inc

reas

ed in

targ

eted

poo

r are

as.

UN

DA

F In

dica

tors

:Po

pula

tion

belo

w n

atio

nal p

over

ty li

ne (M

DG

1 i

ndic

ator

), Po

verty

seve

rity

Index

by

gend

er o

f HH

hea

d, U

nem

ploy

men

t rat

e –

byge

nder

, age

grou

p, ru

ral-u

rban

(MD

G 8

i ndi

ctor

), La

bour

forc

e pa

rtici

patio

n ra

te –

by

gend

er, a

ge g

roup

and

rura

l, ur

ban

area

s, (M

DG

8 in

dicat

or),

Gin

i coe

ffic

ient

–na

tiona

l, ru

ral -

urba

nC

T O

utco

me

Indi

cato

rs &

Bas

elin

eSo

urce

s of V

erifi

catio

nR

isks

and

Ass

umpt

ions

N

umbe

r of n

ew M

SMEs

regi

ster

ed (b

y ge

nder

and

age

)

Num

ber o

f MSM

Es a

vaili

ng M

icro

fina

nce

and

busi

ness

de

velo

pmen

t ser

vice

s (by

gen

der a

nd a

ge)

N

umbe

r of p

artic

ipan

ts in

ent

repr

eneu

rshi

p tra

inin

gpr

ogra

mm

es (b

y ge

nder

and

age

)

NSB

, MoL

HR

, BD

FCL,

RM

A, M

TI (R

TIO

s)In

terv

iew

s, su

rvey

s, fie

ldm

o nito

ring

and

eval

uatio

n, a

nd M

I SR

epor

ts

Ris

ks:

R

ural

cap

abili

ty to

pay

bac

kth

e cr

edit/

loan

Will

ingn

ess o

f loa

n pr

ovid

er to

impl

emen

t ref

orm

sA

ssum

ptio

ns:

Su

stai

ned

econ

omic

gro

wth

N

atio

nal M

&E

syst

emop

erat

iona

l and

use

d fo

r pla

nnin

gan

dm

onito

ring

D

ata

disa

ggre

gate

d by

rura

l, ur

ban,

Gew

ogs,

gend

er a

nd

age.

R

esul

ts b

ased

nat

iona

l pla

ns d

evel

oped

usi

ngdi

sagg

rega

ted

data

R

esul

ts b

ased

Dzo

ngkh

ag p

lans

dev

elop

ed u

sing

disa

ggre

gate

d da

t a

Num

ber o

f off

icia

ls tr

aine

d in

RB

M a

t cen

tral l

eve l

N

umbe

r of o

ffic

ials

trai

ned

in R

BM

at D

zong

khag

leve

l

Out

put m

onito

ring

by D

BA

,Im

pact

mon

itorin

g by

PC

S G

ewog

GPI

S re

ports

Surv

ey R

epor

tsN

atio

nal a

nd D

zong

khag

Plan

sPr

ogre

ss R

epor

t fro

mPC

on

RB

M tr

aini

ng

Ass

umpt

ions

:

Polic

y le

vel s

uppo

rt, te

chni

cal

advi

ce a

nd a

id fl

ows f

acili

tate

dby

dev

elop

men

t par

tner

s is

alig

ned

to n

atio

nal p

riorit

ies

H

arm

oniz

atio

n ef

forts

of b

oth

the

dono

rs a

nd th

e go

vern

men

tse

rve

to st

reng

then

nat

iona

l ca

paci

ties

CT

Out

com

e 4

New

Mic

ro a

nd S

MEs

and

jobs

crea

ted

with

em

phas

is o

n w

omen

and

yout

h.

CT

Out

com

e 5

Enha

nced

cap

acity

of p

ublic

se

ctor

to im

plem

ent r

esul

ts-b

ased

polic

y, p

lan

and

prog

ram

dev

el-

opm

ent e

spec

ially

for M

DG

and

pove

rty re

duct

ion.

Bhu

tan

UN

DA

F 20

08-2

012

27

UN

DA

F ou

tcom

e2:

B

y 20

12, i

ncre

ased

acc

ess a

nd u

tiliz

atio

n of

qua

lity

heal

th se

rvic

es w

ith e

mpha

sis o

n re

prod

uctiv

ehe

alth

, mat

erna

l and

chi

ld h

ealth

and

nut

ritio

n,H

IV/A

IDS,

TB

, mal

aria

and

oth

er n

on- c

omm

unic

able

dis

ease

.U

ND

AF

Indi

cato

rs: M

ater

nal M

orta

lity

Rat

io,

Infa

nt M

orta

lity

Rat

e, U

nder

-5 M

orta

lity

Rat

e, C

ontra

cept

ive

prev

alen

ce ra

te; I

ncid

ence

of v

acci

n e-p

reve

ntab

le d

isea

ses

Cou

ntry

Tea

m o

utco

mes

Indi

cato

rs &

Bas

elin

eSo

urce

s ofV

erifi

catio

nR

isks

and

Ass

umpt

ions

CT

Out

com

e 1

Cap

acity

of

RG

oB to

form

ulat

e an

d im

plem

ent

evid

ence

-bas

ed p

olic

ies a

nd st

rate

gies

that

cre

ate

an e

nabl

ing

envi

ronm

ent f

or re

prod

uctiv

e he

alth

,m

ater

nal a

nd c

hild

hea

lth, S

TI, H

I V/A

IDS,

TB

an

dm

alar

iapr

ogra

mm

es st

reng

then

ed.

Nat

iona

l stra

tegi

es/g

uide

lines

in p

lace

to in

crea

seth

e ac

cess

to q

ualit

y re

prod

uctiv

e he

alth

, chi

ldhe

alth

, HIV

/AID

S, in

form

atio

n an

d se

rvic

es

Sex

and

age

disa

ggre

gate

d da

ta a

vaila

ble

and

used

MO

H, M

OF,

PC

, N

SB,

Dat

a co

llect

ed is

relia

ble,

tim

ely

and

disa

ggre

gate

d.Ti

mel

y ad

optio

n of

polic

y an

d st

rate

gies

CT

Out

com

e 2

Cap

acity

of

RG

oB st

reng

then

ed to

incr

ease

acc

ess

to a

nd d

eliv

ery

of q

ualit

y he

alth

serv

ices

for a

llin

clud

ing

repr

oduc

tive

heal

th, m

ater

nala

nd c

hild

heal

th a

nd n

utrit

ion,

TB,m

alar

ia a

nd o

ther

non

-co

mm

unic

able

dis

ease

s.

Ant

enat

al a

nd p

ostn

atal

hea

lth c

over

age

(%)

Pr

opor

tion

of b

irths

atte

nded

by

skill

ed h

ealth

pers

onne

l

Perc

enta

ge o

f pop

ulat

ion

with

acc

ess t

o sa

fedr

inki

ng w

ater

syste

ms a

nd sa

nita

tion

V

acci

natio

nco

vera

ge fo

r chi

ldre

n an

d m

othe

rs

Perc

enta

ge o

f pop

ulat

ion

with

acc

ess t

o D

OTS

and

mal

aria

trea

tmen

t

Perc

enta

ge o

f chi

ldre

n w

ho a

re u

nder

wei

ght

Pe

rcen

tage

of c

hild

ren

with

sym

ptom

s of

mic

ronu

trien

t def

icie

ncy

(Iron

/Vita

min

A)

MO

H, N

CW

C, N

SB

CT

Out

com

e 3

Cap

acity

of g

over

nmen

t to

resp

ond

to p

reve

ntio

n,ca

re a

nd tr

eat m

ent o

f HIV

/AID

S an

d ST

Ithr

ough

mul

ti-se

ctor

al a

ppro

ach

stre

ngth

ened

.

Pr

opor

tion

of th

e po

pula

tion

aged

15-

24 w

ithco

rrec

tkno

wle

dge

of H

IV/A

IDS

Pe

rcen

tage

of t

hose

eng

agin

g in

risk

y be

havi

our

acce

ssin

gV

CT

serv

ices

eac

h ye

ar

N

umbe

r of p

regn

ant w

omen

atte

ndin

g an

tena

tal

care

rece

ivin

g in

form

atio

non

pre

vent

ion

ofm

othe

r-to-

child

tran

smis

sion

MO

H

CT

Out

com

e 4

RG

oB a

nd c

omm

unity

par

tner

ship

s enh

ance

d to

prom

ote

utili

satio

n of

hea

lth se

rvic

es.

Pr

opor

tion

of V

illag

e H

ealth

Wor

kers

serv

ice

Cov

erag

e in

the

com

mun

ity

No.

of p

atie

nts v

isiti

ng th

e he

alth

faci

litie

s

MO

H

Com

mun

ities

ava

iling

heal

th se

rvic

es.

Bhu

tan

UN

DA

F 20

08-2

012

28

UN

DA

F O

utco

me

3: B

y 20

12, a

cces

s to

qual

ity e

duca

tion

for a

ll w

ith g

ende

r equ

ality

and

spec

ial f

ocus

on

the

hard

-to-re

ach

popu

latio

n im

prov

ed.

UN

DA

F In

dica

tor s

: (1)

Net

Enr

olm

ent R

ate

disa

ggre

gate

d by

sex

and

Dzo

ngkh

a gs-

wis

e (2

)You

th (1

5 -2

4 yr

s.) li

tera

cy ra

te (d

isag

greg

ated

)In

dica

tors

& B

asel

ine

Sour

ces o

fV

erifi

catio

nR

isks

and

A

ssum

ptio

nsC

T O

utco

me

1

Impr

oved

qua

lity

ofed

ucat

ion

deliv

ered

by

rele

vant

stak

ehol

ders

.

C

over

age

of E

CC

E (E

arly

Chi

ldho

od C

are

and

Educ

atio

n)ed

ucat

ion

prog

ram

s for

NFE

lear

ners

Perc

enta

ge o

f chi

ldre

n st

artin

g sc

hool

at t

he a

ge o

f six

(dis

aggr

egat

ed b

y ge

nder

at D

zong

khag

s lev

el)

Tr

ansi

tion

r ate

to se

cond

ary

educ

atio

n (d

isag

greg

ated

)

Net

Com

plet

ion

Ra t

io (d

isag

greg

ated

by

sex

and

leve

ls)

% o

f dro

p-ou

ts a

nd re

peat

ers (

disa

ggre

gate

d by

sex

and

leve

l)

Num

ber o

f adu

lts a

nd y

oung

peo

ple

enro

lled

in N

FE

MO

E

Dat

a co

llect

ed is

relia

ble,

ti mel

y an

d di

sagg

rega

ted.

CT

Out

com

e 2

Nat

iona

l cap

acity

to re

vise

and

impl

emen

t the

educ

atio

nal c

urric

ula

enha

nced

.

A

dopt

ion

of re

vise

d cu

rric

ulum

Pe

rcen

tage

of t

each

ers t

rain

ed in

the

revi

sed

curr

icul

um(d

isag

greg

ated

)

Stan

dard

test

s dev

elop

ed fo

r mea

surin

gle

arni

ng a

chie

vem

ent

linke

d to

nat

iona

l cur

ricul

um

MO

E Ti

mel

y ad

optio

n of

the

revi

sed

natio

nal c

urric

ulum

CT

Out

com

e 3

Scho

ol e

nrol

men

t ,pa

rticu

larly

for g

irls,

incr

ease

dth

roug

h im

prov

edfa

cilit

ies,

scho

ol fe

edin

g an

dta

rget

ed a

dvo c

acy.

G

ende

r par

ity in

dex

(GPI

)

Pupi

l-tea

cher

ratio

(dis

aggr

egat

ed)

N

umbe

r of f

emal

e te

ache

rs in

r em

ote

scho

ols

N

umbe

r of s

choo

ls h

avin

gsc

hool

feed

ing

faci

litie

s and

chi

ldre

nbe

nefit

ing

Pr

opor

tion

of sc

hool

s with

func

tiona

l wat

er &

sani

tatio

nfa

cilit

ies (

disa

ggre

gate

d)

MO

E, M

OH

CT

Out

com

e 4

Nat

iona

l cap

acity

to p

rovi

dede

velo

pmen

t opp

ortu

nitie

s for

youn

g pe

ople

stre

ngth

ened

.

N

umbe

r of y

oung

peo

ple

rece

ivin

g lif

e sk

ills e

duca

tion

N

umbe

r of

youn

g pe

ople

eng

aged

in v

olun

tary

act

iviti

es

N

umbe

r of c

ouns

ello

rs tr

aine

d

Num

ber o

f you

ng p

eopl

e re

ceiv

ing

coun

selli

n gvo

lunt

ary

deve

lopm

ent p

rogr

ams

MO

E, M

OLH

R,

CSO

sC

ontin

ued

supp

ort o

fG

over

nmen

t, ci

vil s

ocie

ty a

nd

deve

lopm

ent p

artn

ers f

orde

velo

pmen

t of c

hild

ren

and

youn

g pe

ople

.

Bhu

tan

UN

DA

F 20

08-2

012

29

UN

DA

F O

utco

me

4 :B

y 20

12, i

nstit

utio

nal c

apac

ity a

nd p

eopl

e’s p

artic

ipat

ion

stre

ngth

ened

to e

nsur

e go

od go

vern

ance

.U

ND

AF

Indi

cato

rs:V

ote r

turn

out d

isag

greg

ated

, pub

lic tr

ust i

n go

vern

men

t ins

titut

ions

, pro

porti

on o

f wom

en h

oldi

ng e

lect

ed p

osts

, % o

f pop

ulat

io n h

avin

gac

cess

to IC

T an

d m

edia

.So

urce

s of v

erifi

catio

n:El

ectio

n C

omm

issi

on, N

CW

C, B

I CM

A, C

entre

for B

huta

n St

udie

s, M

OIC

, BIC

MA

, UN

DP,

Wor

ld B

ank,

Cou

ntry

Tea

m O

utco

me

Indi

cato

rs a

nd B

asel

ine

Sour

ces o

f Ver

ifica

tion

Ris

ks a

nd A

ssum

ptio

nsC

T O

utco

me

1

Tran

spar

ency

, eff

icie

ncy,

effe

ctiv

enes

s, pa

rtici

patio

n an

dac

coun

tabi

lity

stre

ngth

ened

at a

llle

vel s

N

umbe

r of I

CT ,

med

ia a

nd o

ther

pub

lic se

rvic

esca

tere

dby

com

mun

ity in

form

atio

n ce

ntre

s

Publ

ic p

erce

ptio

n ab

out t

he q

ualit

y an

d co

nten

t of

new

s and

pro

gram

mes

by

the

med

ia

Publ

ic p

erce

ptio

n of

cor

rupt

ion

in th

e de

liver

y of

gove

rnm

ent s

ervi

ces

MO

ICA

CC

BIC

MA

CB

SM

edia

A: p

eopl

e ar

e w

illin

g an

dab

le to

use

new

com

mun

icat

ion.

CT

Out

com

e 2

Stre

ngth

ened

nat

iona

l cap

acity

and

sy

stem

s to

form

ulat

e, re

view

and

impl

emen

t nat

iona

l leg

islat

ions

inlin

e w

ith ra

tifie

d in

tern

atio

nal

conv

entio

ns

N

umbe

r of o

ffic

ials

from

key

natio

nal a

genc

ies

train

ed in

dra

fting

and

revi

ewin

g na

tiona

lle

gisl

atio

ns in

line

with

ratif

ied

conv

entio

ns

Num

ber o

f nat

iona

l leg

isla

tions

supp

orte

d

Qua

lity

repo

rts su

bmitt

ed b

y R

GoB

to

treat

y bo

dies

OA

G,

Parli

amen

tJu

dici

ary

MoF

AN

CW

C

A: R

GoB

com

mitt

ed to

enha

nce

its c

apac

ity to

mee

t its

obl

igat

ions

unde

r rat

ified

conv

entio

ns

CT

Out

com

e 3

Cap

acity

of k

ey in

stitu

tions

tosu

ppor

t par

liam

enta

ry d

emoc

racy

st

reng

then

ed

Pu

blic

per

cept

ion

of g

over

nmen

t eff

icie

ncy

V

oter

per

cept

ion

on h

ow fr

ee a

nd fa

ir th

e el

ectio

ns

are.

N

umbe

r of j

udge

s, la

wye

rs, p

rose

cuto

rs se

nsiti

zed

onIn

tern

atio

nal b

est p

ract

ices

on

cons

titut

iona

l law

B

read

th o

f dis

sem

inat

ion

and

qual

ity o

f vot

er a

ndci

vic

educ

atio

n pr

ogra

ms a

nd m

ater

ials

CB

S, Ju

dici

ary,

MO

IC,

BIC

MA

, MO

HC

A,

ECB

, OA

G, N

CW

C,

MoE

, Med

ia

A: K

ey in

stitu

tions

are

wel

lst

affe

d to

fulfi

l the

ir m

anda

tes

R :

Tim

e co

nstra

int f

orca

paci

ty b

uild

ing

of th

e ke

yin

stitu

tions

to su

ppor

t pa

rliam

enta

ry d

emoc

racy

.

Bhu

tan

UN

DA

F 20

08-2

012

30

UN

DA

F O

utco

me

4 :B

y 20

12, i

nstit

utio

nal c

apac

ity a

nd p

eopl

e’s p

artic

ipat

ion

stre

ngth

ened

to e

nsur

e go

od go

vern

ance

.U

ND

AF

Indi

cato

rs: V

oter

turn

out d

isag

greg

ated

, pub

lic tr

ust i

n go

vern

men

t ins

titut

ions

, pro

porti

on o

f wom

en h

oldi

ng e

lect

ed p

osts

, % o

f pop

ulat

io n h

avin

gac

cess

to IC

T an

d m

edia

.So

urce

s of v

erifi

catio

n:El

ectio

n C

omm

issi

on, N

CW

C, B

ICM

A, C

entre

for B

huta

n St

udie

s, M

OI C

, BIC

MA

, UN

DP,

Wor

ld B

ank,

Cou

ntry

Tea

m O

utco

me

Indi

cato

rs a

nd B

asel

ine

Sour

ces o

fV

erifi

catio

nR

isks

and

Ass

umpt

ions

CT

Out

com

e 4

Loca

l gov

erna

nce

syst

ems a

nd

capa

city

stre

ngth

ened

with

incr

ease

d pa

rtici

patio

n of

wom

en.

N

umbe

r of a

nnua

l Gew

og p

lans

form

ulat

ed a

ndim

plem

ente

d ba

sed

on R

BM to

pur

sue

the

MD

Gs

Pe

rcen

tage

of a

nnua

l gra

nts p

rovi

ded

and

util

ized

by G

YTs

and

DY

Ts

N

umbe

r of i

nteg

rate

d ge

ogce

nter

s est

ablis

hed

that

prov

ide

mu l

ti-se

ctor

al a

dmin

istra

tive,

soci

al a

nd

econ

o mic

serv

ices

to c

omm

unity

mem

bers

.

Perc

enta

ge o

f wom

en in

dec

isio

n m

akin

g at

all

leve

ls

MoH

CA

, Loc

algo

vern

men

ts, R

CSC

,PC

S, N

CW

C, C

BS,

M

oF, M

oA

A: D

ecen

traliz

atio

n co

ntin

ues t

o be

a

natio

nal p

riorit

yfo

r the

RG

oB

A: A

dequ

ate

supp

ort f

or a

nnua

lgr

ants

pro

vide

d

R: L

ittle

or l

ow m

eani

ngfu

lpa

rtici

patio

n of

wom

en d

ue to

pers

istin

g st

ereo

type

s

Bhu

tan

UN

DA

F 20

08-2

012

31

UN

DA

F ou

tcom

e 5:

By

2012

, nat

iona

l cap

acity

for e

nviro

nmen

tal s

usta

inab

ility

and

dis

aste

r man

agem

ent s

treng

then

edU

ND

AF

Indi

cato

rs: n

atio

nal p

olic

ies a

nd p

lans

inco

rpor

atin

g en

viro

nmen

t/dis

aste

r/clim

ate

conc

erns

; num

ber o

f Dis

aste

rMan

agem

ent P

lans

; nu

mbe

r of

rem

o te

hou

seho

lds w

ith a

cces

s to

rene

wab

le e

nerg

y

Cou

ntry

Tea

m o

utco

mes

Indi

cato

rs &

Bas

elin

eSo

urce

s of V

erifi

catio

nR

isks

and

Ass

umpt

ions

CT

Out

com

e 1

Nat

iona

l cap

acity

to m

ains

tream

envi

ronm

enta

l con

cern

s int

o po

licie

s,pl

ans a

nd p

rogr

ams e

nhan

ced.

N

umbe

r of N

atio

nal a

nd se

ctor

al g

uide

lines

and

tool

sde

velo

ped

for m

ains

trea m

ing

envi

ronm

enta

l con

cern

sin

to p

olic

ies a

nd p

lans

N

umbe

r of s

ecto

ral p

lans

inc

orpo

ratin

g en

viro

nmen

tal

conc

erns

in m

id-te

rm10

th a

nd 1

1th P

lan

N

umbe

r of e

nviro

nmen

t edu

catio

n an

d aw

aren

ess

prog

ram

s for

the

parli

a men

taria

ns c

ondu

cted

Envi

ronm

enta

lInf

orm

atio

n M

anag

emen

t Sys

tem

oper

atio

nal

Tim

ely

subm

issi

on o

f nat

iona

l rep

orts

on

MEA

s

10th P

lan

mid

-term

revi

ewdo

cum

ent,

11 F

YP

docu

men

t; Se

ctor

al p

lans

and

polic

ies;

gui

delin

es a

ndto

ols;

EIM

S, n

atio

nal

repo

rts o

n M

EAs

CT

Out

com

e 2

Nat

iona

l cap

acity

for d

isas

ter a

nd ri

skm

anag

emen

t stre

ngth

ened

.

N

umbe

r of s

ecto

ral p

lans

and

pol

icie

s inc

orpo

ratin

gdi

sast

er ri

sk re

duct

ion

N

umbe

r of d

isas

ter m

anag

emen

t pla

ns d

evel

oped

and

adop

ted

(in D

zong

khag

s, ge

wog

s and

thom

des)

N

umbe

r of v

ulne

rabl

e co

mm

uniti

es id

entif

ied

and

train

edin

dis

aste

r/clim

ate

risk

man

agem

ent

G

uide

lines

for d

isas

ter r

educ

tion

and

post

dis

aste

rco

nstru

ctio

n de

velo

ped

11th F

YP

docu

men

t;Se

ctor

al p

lans

and

pol

icie

s;D

isas

ter m

anag

emen

t pla

ns;

Trai

ning

repo

rtsG

uide

lines

CT

Out

com

e 3

Acc

ess t

o su

stai

nabl

e en

ergy

and

livel

ihoo

ds fo

r rem

ote

gew

ogs

impr

oved

.

N

umbe

r of K

W e

nerg

y pr

oduc

ed fr

omre

new

able

sour

ces

N

umbe

r of m

ale/

fem

ale

head

ed h

ouse

hold

s usi

ngre

new

able

/alte

rnat

ive

ene

rgy

tech

nolo

gies

in re

mot

ege

wog

s

Prop

ortio

n of

men

and

wom

en u

sing

sust

aina

ble

ener

gy

sour

ces f

or in

com

e ge

nera

tion

Pro j

ect r

epor

ts;

DO

E re

ports

Parti

cipa

tion

ofpr

ivat

ese

ctor

CT

Out

com

e 4

Con

serv

atio

n of

bio

-div

ersi

ty a

nd

ecos

yste

ms e

nhan

ced.

N

umbe

r of n

ew p

rote

cted

are

as/b

iolo

gica

l cor

ridor

sfu

nctio

nal

N

umbe

r of a

gro-

biod

iver

sity

pro

gram

sim

plem

ente

d

Proj

ect r

epor

ts;

Nat

iona

l rep

ort t

o U

NC

BD


Annex 3 Macro Assessment of the Public Financial Management system in Bhutanin preparation for the introduction of

the UNDG-Harmonised Approach to Cash Transfer

Background

The UNDG ExCom agencies, UNDP, UNICEF,WFP and UNFPA have adopted the HarmonisedApproach to Cash Transfer (HACT) as a common framework for financial transactions withimplementing partners to reduce transaction costs and enhance national ownership and capacity ofnationalsystemsandinstitutions.InBhutan,theHACTwillbeintroducedin2008,correspondingwiththenewUNDAF-programmecycle.Priortotheintroduction,theagenciesarerequiredtoundertakeamacroassessmentof thecountry’spublicfinancialmanagementsystemandmicroassessmentsofimplementing partners’ financial management capacity. This report presents the findings of macroassessment. AstheHACTGuidelinesstipulates themacroassessment isbasedonreviewingexistingstudiesonthecountry’spublicfinancialmanagement(PFM)system.TherelevantstudiesfortheBhutanmacroassessmentincludetheWorldBank’sCountryFinancialAccountabilityandAssessment(CFAA)2002andNoteonPublicFinancialAccountabilityandManagement(PFAM)October2005.TheviewsofUNExComagencieshavebeen taken intoaccount in the textand thechecklist,whereappropriate.AWorldBankdocumenttitledRoadmaptowardsUniversalRelianceinBhutan’sCountrySystems;PublicFinancialManagement(2006)hasbeenusedasanindicationfordonorinvolvementandlikelyfundingsourcesforPFM-improvement.

1.Objective

The objectives for conducting themacro assessment cover a developmental aspect and a financialmanagementaspect:

a)Development:tohelpExComAgenciesandgovernmenttoidentifystrengthsand weaknessesinthecountry’sPFMthattheycanflagforfollowupassistance.

b)FinancialManagement:toassisttheExComAgenciesinunderstandingmorefully thefinancialenvironment.

2. Summary of findings and key risks

InthePFAM(2005),theWorldBankconcludesitsassessmentthatRGoB’spublicfinancialmanagementsystemscanbereliedupontoprovideassuranceontheuseoftheBank’sDevelopmentPolicyGrant.TheWorldBank recognizes the financial procedures for use of donor funds to be sound.Donor-fundedexpendituresaresubjecttosameinternalcontrolsandbudgetandaccountingrequirementsasgovernment-fundedexpenditures.The2005NoteechoestheWorldBank’searlierstatementinCFAA2002commendingtheRoyalGovernmentofBhutanfortheimportanceattachedtogoodgovernanceandinimprovingthegovernment’sPFMsystemandaccountability.

However,thePFAM(2005)identifieschallengesinthefourfinancialareas:BudgetFormulationandExecution;InternalControl;PublicSectorAccountingandFinancialRecording;andExternalAudit.Certain areas, identified for improvement like enhancing transparency of the budget process andimprovingthecashtransfersystemarecurrentlybeingaddressed.TheadoptionoftheAuditActbytheNationalAssemblyin2006addressesanearlieridentifiedriskrelatedtoformalizingtheRoyalAuditAuthority’sindependence.

TheUNDG’smacroassessment-checklist,attachedasanannex,identifiedtwooftheelevenindicatorsaslowriskandsixindicatorsasmoderaterisk.Twoareaswereidentifiedassignificantriskandonearea as high risk.The high risk area refers to the delay in transferring cash from centre to projectlevel.Thereasonsforthisdelayareexpectedtoemergemoreclearlyduringthemicro-assessment,and

32

Bhutan UNDAF 2008-2012subsequentlymeasuresforimprovementwillbeidentified.Thetwoareasidentifiedassignificantrisksareinternalcontrols,andstaffqualificationandskills.BothareaspresentopportunitiesfortheUNtoworkwiththeRGoBandotherdonorstostrengtheninternalcontrolsandtoenhancestaffcapacityinfinancialmanagement.Theneedtoenhancestaffqualificationandskillsisespeciallypertinentinviewoftheinitiativesundertakensince2005asaresultoftherecommendationsoftheGoodGovernancePlusdocumentandtheevolvingdecentralizationprocessafter2008.

BasedontheWorldBank,RoadmaptowardsUniversalRelianceinBhutan’sCountrySystems,PublicFinancialManagement (2006) this assessment has identified additional opportunities for theUN tosupport in risk areas and areaswhere no donor(s) support has been identified.While theRoadmapshowsalikelysourceoffund,itneithercontainsinformationonthecurrentstatusofdonorsupport,norinformationonthequantumanddurationofassistance.TheUNwouldneedtodiscusswiththeRGoBifsupportisforthcomingintheseareasorifotherdonorhavebeenidentified.

ThetablebelowcombinestheUNDGchecklistresults,WorldBank’srecommendationsfromthePFAM(2005)andtheWorldBank’sRoadMap.

Indicator Risks Recommendations Remarks *

1 Budget Information Low

2 Budget Performance ModerateIntroduce multiyear rolling budget with links to the Medium Term Fiscal Framework-Ongoing

World Bank/IDF Grant

Establish organisational structure and independence including clear mandate forinternal audit units and; staff to be trained inthe use of professional audit methods

World Bank 3 Internal Controls Significant

Update FRR 2001 as part of GG + recommendations. NA

4 BankReconciliations Moderate

Upgrade BAS to monitor suspense andadvance accounts and provide ageinginformation on suspense balance.

NA

5 Transfer of cashresources High Development of e-transfer system - ongoing DANIDA

6 Cash and assetposition Moderate

Improve cash planning and forecasting Provide information on liabilities and probable contingencies.

DANIDA (feasibility study)

7 Coverage of external audit Low Introduce selective audits using sampling

techniques; train audit and accounts personnel World Bank/IDF Grant?

8 Follow up action to audit reports Moderate Mechanism needed in MOF to actively track

and monitor response to audit observations. NA

9 Transparency of Audit Process Moderate

Greater professional leadership; Equal opportunities for regular in-service training; training for senior managers.

World Bank/IDF Grant DANIDA 10 Staff qualification

and skills Significant Expansion in opportunities and enrolment at the RIM for finance staff. NA

11 Financial Systems Moderate Enhance database networking User training DANIDA

*Thiscolumnrepresentslikelysourceofdonorsupport.Informationsource:WorldBank,RoadmaptowardsUniversalRelianceinBhutan’sCountrySystems,PublicFinancialManagement(2006)

3. Findings in more detail

A. Budget Formulation and Execution

Theprocedures forbudget formulationand implementationarecomprehensivelydocumented in theBudgetManual2001.BudgetdecisionsaretakenthroughinteractionsbetweentheCouncilofMinistersandtheMinistryofFinance(MOF),PlanningCommissionSecretariatandthelineministriesandother

33


34

budget entitiesbefore submission to theNationalAssembly for approval.Thebudget integrates allexpendituresincludingdonorfundedactivities.

The CFAA (2002) states that the budget is “somewhat transparent” and recommends making thebudgetdocumentsmoreuserfriendlyalongwithwidercommunicationonchangesinthebudgetandperformanceagainstapprovedbudget.TheWorldBankalsorecommendsimprovingthebudgetprocessbyincorporatingkeyprogramperformanceindicators.Themultiyearrollingbudgetandthemediumtermfiscalframework(MTFF),recentlyintroducedandsupportedbytheWorldBank,integrateskeyprogrammeperformanceindicatorsalongsidewiththebudgetindicators.

ThebudgetexecutionphasecommenceswiththereleaseoffundsthroughtheLetterofCreditsystem.TheCFAA(2002)notesthat theMOFensurestimelinessinreleaseoffundstoconcernedagenciesuponfulfilmentofthenecessaryformalities.TheUNagencieshaveexpressedconcernonthedelaysincashtransfersfromthecentretoprojects,attimesexceedingafewmonths.HenceitisidentifiedasasignificantriskfortheHACT-implementation.TheRGoBhasestablishedanelectronictransfersystemfor the agencies inThimphuwithDANIDAsupport.Whileplans to connect all spending agenciesthroughoutBhutanexist,itssuccessandcoveragewillbecontingentontheexpansionofcommunicationinfrastructure. ThePFAM(2005)statesthatin-yearadjustmentstothebudgetaremadetomeetfiscaldeficittargetsandoverdraft facilities–extendedby theRoyalMonetaryAuthority-areusedquite regularly.Theseoccurrencesindicatesignificantopportunitiestoimprovecashplanningandforecastingproceduresatthecentreandagencylevels.DANIDAhasbeenidentifiedasalikelysourceoffundtosupportthisarea. B. Internal Control

TheCFAA(2002)noteswhileseriouseffortsaremadetocomplywithfinancialregulations,thattheinternalcontrolconcepthasnottakendeepholdingovernmentoffices.TheFinanceandAccountingManualandRevenueManual2001 layout the transactionalcontrolonallgovernment receiptsandpaymentsrulesandprocedures.ThePFAM(2005)statesthatthelargenumberofirregulartransactionsrecorded inexternalaudit reports indicatenon-compliancewith transactionalcontrol.However, thereportacknowledgesthatfollowupmechanismtoestablishindividualaccountabilityhasassistedintheadjustmentandrecoveriesaswellinreducingthetotalnumberofirregularities.

Though internal auditorsareposted inall the lineministries, theiroperationsare limited. It canbeattributed to a poor understanding of the need for them and a failure amongmanagers to give theinternal auditors aneffective role.Moredetailedguidanceand intensive trainings forboth auditorsandmanagersarerecommendedtomaketheinternalauditunitsmoreeffective.TheWorldBankhasbeenidentifiedasalikelysourceoffundtostrengthentheinstitutionalframeworkforinternalauditfunctions.

C. Public Sector Accounting and Financial Recording Systems

TheFinancialRulesandRegulations(FRR)2001specifytheaccountingpracticesandresponsibilitiesforfinancialmanagementinallagencies.TheCFAA(2002)notesthattheexistingaccountingsystembasedoncashaccountingiseasilyunderstandableforthosewhoproduceaccountinginformationandthosewhoreceiveit.However,thelackofinformationonamountsreceivableandpayablefromtheaccountingsystemreducestheusefulnessofaccountingsystemformanagementpurposes.DANIDAhasbeenidentifiedasalikelyfundingsourcetoconductafeasibilityassessmentforadoptingaccrualaccounting.Governmentdebtisalsoexcludedfromtheaccountingsystem,recordedseparatelybytheDepartmentofAidandlaterincludedintheannualfinancialstatement.

The PFAM (2005) recognises significant improvement in the accounting and reporting functionbroughtaboutbyintroducingthecomputerisedBudgetingandAccountingSystem(BAS)andCentralBudgetSystem(CBA)intheMOF.WhiletheBAShasbeeninstalledacrossallspendingagencies,majorchallenges remain inenhancingusercapacityandnetworkingof thedatabase to improve thetimeliness


35

andpreparationofconsolidatedfinancialstatements.DANIDAisidentifiedasalikelyfundingsourcetosupportimprovingandenhancingtheBAS andtoprovideextensiveusertraining.

ThePFAM(2005)statesthatbankreconciliationsareconductedregularlyandspendingagenciesarerequiredtosubmitabankreconciliationstatementaspartofthemonthlyfinancialreport.ThePFAM(2005)highlightsthelackofinformationonsuspenseandadvanceaccountsandtheneedtoprovideageinginformationofthesuspensebalance.ThisofferstheUNanopportunitytosupportupgradingtheBAStointroduceamechanismtomonitorsuchaccountsandupdateinformationaccordingly.

D. Assessment of Supreme Audit Institution’s capacity to undertake required audits

TheCFAA(2002)statesthattheRoyalAuditAuthority(RAA)-thegovernment’sexternalauditor-hasdevelopedrapidlyandcontinuestoimprovehavinggoodfinancialskillscomparedwiththerestofgovernment.TheRAAisnotedtoenjoyconsiderablepracticalindependence,performsitsworkwithoutinterferenceandiswidelyrespectedandconsideredautonomous.TheNationalAssemblyadoptedtheAuditActinJune,2006,whichprovidesthelegalcontextfortheRAA’sindependence.TheauditorgeneralisrequiredtoaddressauditreportsdirectlytotheNationalAssembly.Althoughthelegislature’sroleinscrutinyofexternalauditreportshasbeensteppedupwiththeestablishmentofPublicAccountsCommittee,itsroleisstillemerging.

TheRAAisresponsibleforauditofallpublicfundsandalsocertifiestheannualfinancialstatementprepared by theMOF.Whilemajority of audits focus on compliancewith FRR, value formoney/performanceauditsarealsocarriedout.SinceJanuary2002,theRAAreportshavebeenmadeavailabletothepublicandontheinternet;thesearedebatedinthemediawhenofpublicinterest.

TheCFAA(2002)notes the limitedcoverageofauditdue to thecurrentapproach thatauditseverytransaction and it recommends improvements through selective audits performed using samplingtechniques.However,thiswouldrequireenhancingthecapacityoftheauditorsandaccountingstaffingovernmentagencies.TheWorldBankhasbeenidentifiedasalikelysourceoffundingtosupportthisarea.Althoughauditreportshaveshownadecliningtrendinthereportingoffinancialirregularitiesandsatisfactoryratesofadjustment/recoveryindicatingauditeffectiveness,thePFAM(2005)recommendstheMOFtosetupmechanismtoactivelytrackandmonitortheresponsetoauditobservationsbythespendingunits.Thismightbeanarea,whereUNsupportcouldbeconsidered.

E. Staff qualifications and skills

TheWorldBank’sCFAA(2002)isoftheviewthatbetterstaffingandtrainingarerequiredtoincreaseBhutan’s pool of financialmanagement specialists. Training opportunities for theNational FinanceService (NFS) staff are identified as “infrequent or nonexistent” and that staff,whoworkondonorprojectsandaremostlyThimphu-based,havebetteraccesstotrainingopportunities,whilethosepostedtoDzongkhagshavealmostnone.LimitedorganisationalandfinancialresourcesaswellaslackofdonorattentiontothisareahavebeencitedasthereasonsforlimitingtheNationalFinanceServicecapacitytoactfullyeffectivelyinPFM.AnotherareaofimprovementidentifiedbytheCFAA(2002)includestheneedforprofessionalleadershipinaccountingandfinancialmanagement.TheUNagencieshavealsoidentifiedstaffqualificationandskillsasanareaofsignificantriskfortheHACT-implementation. WiththebifurcationoftheDepartmentofBudgetandAccountsintotheDepartmentofNationalBudgetandDepartment of PublicAccounts, theNFS has been dissolved and its former staff placed underrespectivedepartments.However,thechallengesconcerningthestaffqualificationandtrainingneedsremainsvalid.

Inaddition,theCFAA(2002)highlightstheneedtoprovidebettertrainingforseniorofficersworkinginadministrationandfinance,andothermanagerswhosupervisefinanceelsewhereinthepublicsector.FurtherspecialisedtrainingisneededforinternalauditorsandstaffoftheDepartmentofBudgetandAccounts.TheneedtoexpandopportunitiesandincreaseenrolmentsintheRoyalInstituteofManagement(RIM)isalsohighlightedintheCFAA(2002).AdetailedtrainingneedsassessmenthasbeencarriedoutjointlybytheRGoBandWorldBankin2004.Thisreportprovidesdetailedidentificationoftraining


36

needsforpublicfinancialmanagementpersonnel.ThefindingsofthereportcouldbeusedtoidentifyareasofUNsupporttofurtherenhanceprofessionalismandstrengthenPFMatalllevels.

F. Recent initiative undertaken by the Royal Government concerning public financial management system:

Since2005,theRoyalGovernmenthasundertakentheseveralinitiativestofurthergoodgovernanceandstrengthenpublicfinancialmanagementsystem.Thefollowingrecentinitiativesareworthmen-tioninginthecontextofthemacroassessment:1. EstablishmentoftheAntiCorruptionCommissionin2006;2. AdoptionoftheAuditActbytheNationalAssembly2006;3. ImplementationoftherecommendationsoftheGoodGovernancePlusReport2005 pertainingtoBudgetingandPlanning(MTFF,MYRB,AlternativePlanningFramework);4. EnhancedDecentralisationintheTenthPlan;5. BifurcationoftheDepartmentofBudgetandAccountstoDepartmentofNational BudgetandDepartmentofPublicAccountsin2006;and6. EstablishmentofPublicAccountsCommittee. Theimplementationoftheaboveinitiativeswillrequireassistancetostrengthensystemsandprocedures,andenhancecapacity at national and local levels. In lightof the enhanceddecentralisationprocessenvisaged in thedraft constitution, significant assistancewill be required to invest indecentralizedPFM-capacity.However,thecapacitygapsandneedshavenotyetbeenassessed.

4. Suggested Opportunities for Capacity Development

The assessment based on World Bank studies and interactions with the UN Agencies indicatesopportunitiesforcapacitydevelopmentinimprovingsystemsandproceduresforinternalcontrolandinenhancingthecapacityandstaffskillsofpersonnelengagedinpublicfinancemanagementatalllevels.Thehighriskareapertainingtodelays incashtransferfromcentre toproject levelcouldbeanareafortheUNandRGoBtolookintointhemicro-assessment.TheWorldBankdocumenttitledRoadmap towardsUniversalReliance inBhutan’sCountrySystems; PublicFinancialManagement(2006)providessomeindicationofdonorinterestintheseareas.However,informationonthequantumanddurationofassistanceisnotavailablefromthisdocument.FurtherthereareotherareassuchasupdatingtheFRR2001;up-gradationofBAS;andestablishmentofmechanismtotrackandmonitorresponsetoauditobservationsthathaveemerged.However,thecapacitygapsandneedsintherecentlyundertaken initiatives to improve thePFMasoutlined in thepreviousparagraphhavenotyetbeenassessed.ThereforeitisrecommendedthattheUNSystemmaintainaflexibleapproachtothecapacitydevelopmentneedstoallowincorporatingemergingRGoB’sneedsincapacitybuildinginkeepingwiththechangingscenarioofthePFMsysteminBhutan.

Bibliography

WorldBank,CountryFinancialAccountabilityandAssessment,2002WorldBank,NoteonPublicFinancialAccountabilityandManagement,2005WorldBank,RoadmaptowardsUniversalRelianceinBhutan’sCountrySystems,PublicFinancialManagement(2006)

Theabovementioneddocumentsweretherelevantdocuments,norADBnorIMFhadrecentlyproducedrelevantdocumentspertainingtheissue.

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ly m

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d.

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