CAPACITY DEVELOPMENT IN AFRICA

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized CAPACITY DEVELOPMENT IN AFRICA MANAGEMENT ACTION PLAN FY06 FY08 Africa Region July 12,

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3 Capacity Development in Africa: Management Action Plan We often talk about building institutions or building capacity. That sort of suggests you can come in like an outside contractor and bring some bricks and mortar and you construct capacity. It does not work that way. You grow it. It s got to be indigenous. It s got to have indigenous roots. You can help people do it. But they need to do it themselves. Paul Wolfowitz

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5 Capacity Development in Africa: Management Action Plan Abbreviations and Acronyms AAA AAP ACBF ACGF AERC AfDB AFRVP AFRCE AFRCDs AFRC16 AFTFM AFTHD AFRPG AFTPI AFTPM AFTPC AFTPR AFTPS AFTQK AFTSD AFIK APF APRM AU CAS CDD CDMAP CIDA CFAA CLEAA COMESA CPAR CPIA DEC DFID EAC ECOWAS ESSD EU FAC GDLN HDN HIPC HIV-MAP IDA IDF IEG Analytical and advisory activities Africa Action Plan Africa Capacity Building Foundation Africa Catalytic Growth Fund African Economic Research Consortium African Development Bank Africa Region, Office of the Vice President Africa Region, Office of the Chief Economist Africa Region Country Departments (CD1 CD15) Africa Region Country Department for Regional Integration Africa Region Financial Management Unit (in AFTQK) Africa Region Human Development Sector Department Africa Region Partnership Group Africa Region Finance, Private Sector and Infrastructure Department Africa Region Poverty Reduction and Economic Management Sector Department Africa Region Procurement Unit (in AFTQK) Africa Region Public Sector and Capacity Building Sector Management Unit Africa Region Private Sector Management Unit Africa Region Operational Quality, Results and Learning Department Africa Region Environment and Socially Sustainable Development Sector Department Africa Knowledge Innovations Fund African Partnership Forum African Peer Review Mechanism African Union Country assistance strategy Community-driven development Capacity Development in Africa Management Action Plan Canadian International Development Agency Country Financial Accountability Assessment Capacity Development and Linkages for Environmental Assessment in Africa Common Market for Eastern and Southern Africa Country procurement assessment report Country policy and institutional assessment Development Economic Department Department for International Development (UK) East African Cooperation Economic Community of West African States Environment and Socially Sustainable Development Network European Union French Agency for Cooperation Global Distance Learning Network Human Development Network Highly Indebted Poor Country Initiative HIV Multisectoral AIDS Program International Development Association Institutional Development Fund Independent Evaluation Group

6 IFC IMF INF ISN LEG MDGs M&E MIGA NEPAD OED OPCS OECD-DAC PACT PEFA PETS PFM PER PREM PRS PRSC PSCAP PSRP SADC SIDA SPA STATCAP SWAPs UNECA UNESCO WBI International Finance Corporation International Monetary Fund Infrastructure Network Interim strategy note Legal Department Millennium Development Goals Monitoring and Evaluation Multilateral Investment Guarantee Agency New Partnership for Africa s Development Operations Evaluation Department Operations Policy and Country Services Network Organization for Economic Cooperation and Development Development Assistance Committee Partnership for Capacity Building in Africa Public expenditure and financial accountability Public expenditure tracking survey Public finance management Public expenditure review Poverty Reduction and Economic Management Network Poverty reduction strategy Poverty Reduction Support Credit Public Sector Capacity Building Program Public Service Reform Credit Southern African Development Community Swedish International Development Agency Strategic Partnership for Africa Statistical Capacity Building Program Sectorwide approaches United Nations Economic Commission for Africa United Nations Educational, Scientific and Cultural Organization World Bank Institute

7 Capacity Development in Africa: Management Action Plan Table of Contents Page Number Executive Summary i Part A: Background, Issues, Responses and Feedback Introduction 1 Background 1 The Issue 1 The Response 1 Lessons 2 The Africa Action Plan (AAP) 2 Consultations and Feedback 3 Part B: The Capacity Development Management Action Plan (CDMAP) Foundations of the CDMAP 7 OUTCOME 1: More Reliable and Accountable Public Financial Management Systems CDMAP Action 1: Public Financial Management and Public Procurement 8 CDMAP Action 2: Participation of Social Actors 12 CDMAP Action 3: Strengthening Oversight Capacity of Parliaments 13 CDMAP Action 4: Strengthening Oversight Capacity of Media 13 OUTCOME II: Effective Delivery of Public Services CDMAP Action 5: Supporting Justice Sector Institutions 14 CDMAP Action 6: Reforming Public Service Systems 15 CDMAP Action 7: Scaling-up Support to Local Governments 17 CDMAP Action 8: Increasing the Retention of Doctors and Nurses 20 OUTCOME III: Developing Skills for Growth and Competitiveness CDMAP Action 9: Supporting Regional Integration 23 CDMAP Action 10: Supporting African Business Schools 24 CDMAP Action 11: Supporting Tertiary Education: Science and Technology 25 OUTCOME IV: Delivering Essential Services in Post-Conflict Countries CDMAP Action 12: Growing Capacity in Post-Conflict States 28 OUTCOME V: Effective Management and Monitoring of Results CDMAP Action 13: Country National Development Strategies 31 CDMAP Action 14: Strengthening Country M&E Capacity 31 CDMAP Action 15: Aligning PRSPs and CASs 32 CDMAP Action 16: Real Time Results Training and Sustained Management Support 33 DOING BUSINESS DIFFERENTLY for Greater Effectiveness and Results CDMAP Action 17: Harmonizing Support for Technical Cooperation 34 CDMAP Action 18: Adapting Business Lines and Instruments 34 CDMAP Action 19: Energizing the Partnership for Capacity Building in Africa 35 CDMAP Action 20: Creating Capacity to Manage the CDMAP 35

8 Part C: Results Measurement and Resource Requirements Monitoring Implementation Progress and Outcomes 36 Resource Commitments 37 Portfolio 37 Pipeline- CDMAP 40 Pipeline Other Capacity Development 40 Annual Disbursements 41 Tables 1. Outline of CDMAP Actions by Outcomes and FY08 Country Coverage Targets 8 2. Number of Accountants and Auditors to be Trained: FY06-FY Procurement by Training Program and Year Justice Sector Operations by Country Potential Public Service Reform Target Countries by Key Reform Programs Local Government Support by Key Programs and Countries Resource Commitments to Capacity Development Activities: FY CDMAP Actions by Outcomes, Country Coverage Targets, and Resource Requirements: FY06 FY Actual and Projected Annual Disbursements for Capacity Development FY Boxes 1. Peer Learning and Exchanges: The Africa Asia Link 6 2. Tanzania: Lessons of Experience in Successful Capacity Development Unleashing Development Capacity in Post-War Sierra Leone through Devolution and Empowerment Education, Science and Technology: The Backbone of the Korean Success Story Liberia: Internal World Bank Partnership at Work in Post-Conflict Capacity Development Impacts of Road Sub-sector Reform in Africa: The Tanzanian Example 39 Figure 1: Rwanda: Use of Assisted Deliveries over time 23 Annexes 1. Linkages of the CDMAP to the AAP and Recommendations of the Capacity Development Task Force CDMAP Actions, Countries, FY08 Targets and Measurable Outcomes Countries by CDMAP Actions 51

9 ACKNOWLEDGEMENTS This report is the product of a Bank-wide team effort. It was prepared by a team led by Benno Ndulu and Richard Cambridge and a drafting team consisting of Pamela Khumbah, Sahr Kpundeh, Helga Muller, and Mark Nelson. Others who contributed are Guy Darlan, Frederick Stapenhurst, Kreszentia Duer, Minneh Kane, Sameena Dost, Denyse Morin, Guenter Heidenhof, Yongmei Zhou, Susan Plaza, Onno Ruhl, Edward Olowo-Okere, V.S. Krishnakumar, Arianna Legovini, Iradj Alikhani, John Ngwafon, Jee-Peng Tan, Agnes Soucat, Francois Nankobogo, and Panagiotis Tzanopoulos. The team was guided by an Advisory Committee of Said Al Habsy, Demba Ba, Alan Gelb, Anthony Hegarty, Darius Mans, Haruna Mohammed, Tawhid Nawaz, Guy Pffermann, Sanjay Pradhan, and John Underwood. Additional advisory assistance was provided by Hart Schafer, John Page, Sudhir Shetty, Yaw Ansu, Michel Wormser, John McIntire, Gerard Byam, Colin Bruce, and Madani Tall. Gobind Nankani, Regional Vice President, Africa Region guided the overall effort.

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11 Capacity Development in Africa: Management Action Plan Executive Summary Capacity development differs from capacity building by emphasizing the creation of the right conditions for capacity to grow and be effectively utilized and retained. This is consistent with the World Bank s focus on country ownership, improved governance, and changing the way the Bank does its business to enable capacity to grow. From the perspective of a country, capacity development means creating space for learning by doing, using domestic accountability processes to create pressure for efficient government, and empowering social actors in the development of effective governance. Task Force on Capacity Development in Africa i. Introduction. The slow pace of capacity development in Africa remains a binding constraint to poverty reduction efforts. Accelerated progress requires that Africans take the lead in capacity development and aid management, addressing capacity development as a governance challenge by creating space for participation and scrutiny by social actors and making capacity development a core area of country-led development strategies. ii. The purpose of this management action plan is to describe how the World Bank Group will respond to the challenges and opportunities for capacity development in Africa during FY It outlines an ambitious program that relies on both increasing the effectiveness of the substantial spending which is already devoted to capacity development and on working more effectively with others to ensure results from new resources. By focusing on monitoring and accountability for those results, this strategy will define more clearly how these actions will lead to a major shift in the way the World Bank and our partners approach this critical challenge. iii. Key lessons. In response to a request by African Governors, the Bank established in November 2004, a Task Force on Capacity Development in Africa. In September 2005, the task force issued the report Building Effective States, Forging Engaged Societies, which reviewed the recent experience of Bank support for capacity development in Africa and made recommendations on practical ways for African countries and their international partners to address the capacity agenda more forcefully and with a greater sense of urgency. Also in 2005, the Independent Evaluation Group (IEG) (formerly the Operations Evaluation Department published the report World Bank Support for Capacity Building in Africa, which emphasized the importance of approaching capacity development as a core objective of the Bank s work, and ensuring that capacity development support be country owned, results oriented, and evidence based. In 2005 the Knowledge and Learning Group in the Africa Region issued the report Capacity Enhancement through Knowledge Transfer: A Behavioral Framework for Reflection, Action, and Results, which concluded that changes in Bank behavior and approaches to capacity enhancement were important. iv. These three reports emphatically concluded that the poor results from decades of support to capacity development in Africa were not so much a result of not knowing what to do. Rather, the challenge has been to recognize and be realistic about the long-term nature of capacity development and the importance of governance and partnership for getting results. It also has much to do with being strategic and selective in the application of financial resources earmarked for capacity development support across various types of countries, that is, pushing the frontiers of capacity development in the better-performing countries, using selective entry points in other countries, and building capacity from scratch in several conflict-affected countries. In sum, capacity development must be about raising the impact of all capacity development efforts by applying additional resources wherever required, but doing so in ways that are different than in the past. These new approaches are intended to generate durable i

12 improvements in individual, organizational, and institutional capacities for effective governments and engaged societies. v. Consultations and feedback. In addition to these reports, several additional lessons have been drawn from consultations with African leaders from government, civil society, and the private sector. These consultations took place in the preparation of the Africa Action Plan (AAP), as part of the Task Force on Capacity Development, and most recently in a series of dialogues on the proposed Capacity Development Management Action Plan (CDMAP). These country consultations provided a number of key messages: The role of countries. Africans must take the lead in capacity development and aid management, and the Bank s interventions must be guided by this country-led process; therefore, capacity development from the Bank and other donors will be indicative and subject to change as countries refine their priorities The role of partners. The Bank is not the only actor in the area of capacity development. A true capacity-building partnership for Africa does not simply ask other donors to make more resources (trust funds and technical assistance) available, but must recognize that in several areas of the capacity development agenda, donors other than the Bank have comparative advantages, better country knowledge, and wider experience. The role of the private sector. The public sector is not the only player in the provision of essential services. Tapping more effectively into the capacities of communities, religious organizations, and private firms creates new avenues for sustainable capacity development. These nongovernmental players already provide health and education services, for example, to augment or sometimes substitute for the public sector s capacity to deliver. The role of the Bank and its comparative advantages. The comparative advantages of the Bank in capacity development are its global and Africa experience and knowledge, financial resources, and convening power for mobilizing international commitments to and support for the new capacity development paradigm and regional programs. The Bank also plays a critical role by setting an example, harmonizing its support with other donors, and helping countries take the lead in making sure that all international support is aligned with country-driven priorities. Improving governance and controlling corruption. Capacity development results would be difficult to achieve without addressing the broader question of governance including the specific issue of corruption. At the same time, progress in the effort to improve governance and reduce corruption requires increased capacity in many countries. For these reasons, CDMAP is strongly intertwined with this institutional priority of the Bank. On-going work to articulate the Bank s policy on governance and corruption will provide further guidance to implementation of CDMAP, and anticorruption will be addressed in a manner that is fully consistent with the Bank s overall multipronged strategy. vi. The Africa Action Plan. In September 2005, the Bank approved the Africa Action Plan (AAP), which promised that the details on the capacity development actions would emerge from the findings and recommendations of the Task Force on Capacity Development in Africa, and that the key and critical of these actions would be undertaken during the IDA14 implementation period (FY06 08). The AAP has four pillars: results management, building capable states and improving governance (including implementation of recommendations of the Task Force on Capacity Development in Africa), increasing shared growth, and leveraging the IDA-14 partnership. ii

13 vii. The Capacity Development in Africa Management Action Plan. CDMAP is primarily an implementation plan for the capacity development components of the AAP. It includes the organizing framework for Bank support to capacity development activities in Africa and a mechanism to inform the Board of Executive Directors on progress made by management in implementing capacity development programs. The latter will be done within the framework for reporting progress in implementing the AAP. viii. CDMAP is, therefore, a derivative of the AAP and the recommendations of the Bank Task Force on Capacity Development in Africa. It includes 20 actions. Foremost, CDMAP draws on actions already identified under the four major pillars of the AAP (annex 1). The primary focus of CDMAP is on five specific goals and outcomes, which are core to the development of effective states and engaged societies in Africa. These are (a) more reliable and accountable public financial management systems, (b) improved capacity for the effective delivery of public services, (c) better and more appropriate skills to support growth and competitiveness, (d) capacity to deliver essential services in post-conflict countries, and (e) improved capacity for country leadership for more effective management and monitoring for results. CDMAP also covers ways in which the Bank will do its business differently for greater effectiveness and capacity development results. CDMAP is, therefore, organized as shown in the table below and in annex 2. ix. Results. Getting results will depend as much on the effectiveness of how the support is provided and implemented as on the magnitude of support. Five main interventions will help to ensure that good outcomes do flow from the above actions. These are (a) explicit measurement and monitoring of capacity development outcomes as an incentive for results, (b) a greater focus on the demand side to strengthen domestic pressure for results through involvement of civil society and improved access to information, (c) increased use of local capacity to allow space for learning by doing, (d) strong partnerships to ensure complementarities and reduction of waste, and (e) strengthening the Bank s knowledge base, adaptation of procedures, quality assurance processes, and staff incentives for ensuring results in this area. x. As with the AAP, CDMAP has two levels of monitoring indicators: one set of indicators monitors short- to near-term outputs and deliverables in FY06-08, and the other covers several higher-level indicators, which measure outcomes or results from actions taken by the partner country, the Bank, and development partners (annex 2). xi. Resource commitments. About $3.4 billion 1 of net IDA commitments in the portfolio to FY05 is already dedicated to capacity development and another $5.4 billion from new lending (pipeline) in FY06 08 will be channeled to capacity development activities as shown in the table below. Resource Commitments to Capacity Development Activities Pipeline (New lending FY06 08) Other Portfolio (as of end FY05) CDMAP Focus Areas Capacity Development Non Capacity Develop-ment Total net commitment amount (billions of dollars) Amount dedicated to capacity development (8.7) activities (billions of dollars) Capacity development (percent of net commitment) xii. During FY06 08, the Bank is projected to provide new commitments of about $14.1 billion to Africa. Of this amount, about $3.2 billion will be committed through new lending for CDMAP as shown in the table below. IDA will commit a further estimated $2.2 billion to support other capacity 1 Unless otherwise noted, all dollar amounts are U.S. dollars. iii

14 development activities within investment operations. The proportion of the portfolio dedicated to capacity development will increase from 22 percent at the end of FY05 to 38 percent by the end of FY08. It is expected that this total level of Bank commitment will generate a further $1.5 billion in co-financing with other partners. CDMAP Actions by Outcomes, County Coverage Targets, and Resource Commitments: FY06 08 Focus Areas FY08 Country Coverage Targets IDA Resource Commitments (US$ millions) Outcome I: More reliable and accountable public financial management systems Action 1. Strengthening public financial management and accountability including 18 countries public procurement. Action 2. Supporting the participation of social actors and broadening the coalition 7 countries for good governance and the fight against corruption. Action 3. Strengthening oversight capacity of parliaments and strengthening 7 countries parliamentary networks. Action 4. Strengthening media environment and oversight capacity of the media. 7 countries Outcome II: Improved capacity for effective delivery of public services. 1,300.0 Action 5. Supporting capacity development for justice sector institutions. 22 countries Action 6. Reforming public service systems. 24 countries Action 7. Supporting the development of local government systems. 14 countries Action 8. Increasing the retention of doctors and nurses. 5 countries Outcome III: Better skills for supporting growth and competitiveness Action 9. Supporting regional integration 4 RECs 62.0 Action 10. Supporting African business schools 7 countries 7.5 Action 11. Supporting tertiary education particularly science and technology 8 countries Outcome IV: Build capacity to deliver essential services in post-conflict countries Action 12. Growing the capacity of post-conflict states to deliver essential services. 12 countries 69.0 Outcome V: More effective monitoring and management for results Action 13. Helping countries to undertake needs assessments and build outcomedriven capacity sensitive national development strategies. Action 14. Adopting a results focus and strengthening country monitoring & evaluation and national statistical data management systems. Action 15. Ensuring that PRSPs and CASs include explicit focus on capacity development. Action 16. Real time training of Bank and partner country staff on results management. 14 countries 15 countries 13 countries countries 5.0 Doing business differently for greater effectiveness and capacity development results Action 17. Harmonizing support for technical cooperation. 5 countries 1.0 Action 18. Avoiding doing harm to existing capacity and phasing out of PIUs. 10 countries 1.0 Action 19. Energizing the Partnership for Capacity Building in Africa ( PACT). All countries 60.0 Action 20. Creating a CDMAP monitoring and management function in AFR. All countries 3.0* TOTAL 3,182.1 * Includes estimated cross-support from WBI, OPCS, DEC and HDN. xiii. In FY02-05, IDA disbursed about $900 million a year to support capacity development activities in Africa. It is estimated that with the increased financial commitment to capacity development, management attention, and implementation support provided by CDMAP, annual disbursements for iv

15 capacity development will increase to about $1.1 billion in FY06, $1.3 billion in FY07, and about $1.4 billion in FY08. xiv. Implementation organization. AAP and CDMAP are institutional priorities. For successful implementation, the African Region (AFR) will collaborate with a range of stakeholders within and outside of the Bank. At the international level, strong partnerships will be further enhanced with OECD/DAC on the Paris Declaration and Paris 21 agreements on capacity development and statistical capacity; with the United Nations Development Program (UNDP), the Strategic Partnership for Africa (SPA), and bilateral donors on the country partnership framework and public service reform. Within Africa, AFR will work closely with the African Development Bank (AfDB) on regional integration and public goods; the New Partnership for Africa s Development (NEPAD) on the governance agenda; and the United Nations Economic Commission for Africa (UNECA) and the Africa Capacity Building Foundation (ACBF) on peer learning and regional networks. xv. Within the Bank, six major partners are essential for successful implementation of key actions under CDMAP, that is, World Bank Institute (WBI) for needs assessments, involvement of social actors, and peer learning; Poverty Reduction and Economic Management Network (PREM) for governance and the development of country strategies; Development Economics Department (DEC) and the Operations Policy and Country Services Network (OPCS) for results measurement and monitoring and public financial management; and Human Development Network (HDN) and the International Finance Corporation (IFC) for science and technology and business education at the tertiary level. xvi. AFR will be responsible for the monitoring and management of CDMAP, and it will mobilize and coordinate resources with the above units to achieve the agreed objectives of this high priority institutional program. A new unit with the appropriate capacity will be responsible for the overall strategic direction and monitoring of this program. This function will be supported by a network of full or part-time staff in each country and sector department in AFR. Dedicated time of staff from the WBI, HDN, PREM, DEC, and OPCS Networks will be secured through normal work program agreements (WPAs) and cross-support arrangements. The Regional Vice President will provide institutional updates on progress in implementation of the CDMAP to the President and Board, and will seek guidance and/or further support for the program through the Operations Policy Committee when appropriate.. v

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17 Capacity Development in Africa: Management Action Plan Part A: Background, Issues, Responses, and Feedback We must keep in mind that strong capacity cannot be achieved overnight. It is like a garden that needs to be cultivated with time, under the right environment with constant care and attention. Paul Wolfowitz 1. Introduction. The purpose of this management action plan is to describe how the World Bank Group will respond to the challenges and opportunities for capacity development in Africa during FY It outlines an ambitious program that relies on both increasing the effectiveness of the substantial spending that is already devoted to capacity development and on working more effectively with others to ensure results from new resources. By focusing on monitoring and accountability for those results, this strategy will define more clearly how these actions will lead to a major shift in the way the Bank and our partners approach this critical challenge. 2. Background. Capacity development in the countries of Sub-Saharan Africa is both an outcome and a result, which the Bank Group supports as part of its overall development strategy; however, the demand for capacity development must be a country-driven process to which the Bank can contribute. In the end, capacity development must be seen as the process by which a country can increase and enhance the quality of the stock, flow, and retention of capable individuals in the public and private sectors and, in civil society, administer public and private institutions (policy formulation, planning, and implementation; economic management; service delivery; and monitoring and evaluation for accountability, transparency, and results). The process must also contribute to the establishment of the enabling environment for effective state functioning through a system of transparent rules, procedures, and processes that are governed by the rule of law. Capacity development by its very definition takes time. It is first and foremost a long-term process that must include two essential dimensions, that is, (a) individuals and institutions learning by doing and weaning themselves gradually of a dependence on short-term technical or other non sustainable assistance and (b) conscious trade-offs between the immediate completion of measurable activities and outputs and achievement of long-term sustainable systems and outcomes. Moving beyond capacity building to capacity development and retention will require an unrelenting focus on unleashing, nurturing, and retaining existing capacity and the better use of local and diaspora talent. 3. The issue. The lack of capacity is a binding constraint to Africa achieving the Millennium Development Goals (MDGs). The development community spends nearly $6.0 billion a year on technical cooperation in Africa, and a 2005 Independent Evaluation Group (IEG) study estimated that in the past 10 years, the World Bank Group alone spent nearly $1.0 billion a year on capacity development activities in Africa. Against the backdrop of greater international commitment of financial support to Africa and the agreement of development partners and countries to emphasize results that is, the Paris Declaration on Development Effectiveness there is a clear recognition that both the amount and effective use of the resources dedicated to capacity development has not delivered the desired results in Africa. 4. The response. In November 2004 a task force on capacity development in Africa was established by the Bank following a discussion with the African Governors of the World Bank at the Annual Meetings in Washington D.C. The task force issued the report Building Effective States, Forging Engaged Societies, which reviewed the recent experience of Bank support for capacity 1

18 development in Africa and made recommendations on practical ways for African countries and their international partners, including the World Bank Group, to address the capacity agenda more forcefully and with a greater sense of urgency. An emphasis was given to engaging social actors in the process of capacity development and accountability and to doing business differently to achieve effective results. In early 2005 the Independent Evaluation Group (IEG), formerly the Operations Evaluation Department, published Capacity Building in Africa: An OED Evaluation of World Bank Support, which emphasized both the importance of approaching capacity building as a core objective of the Bank s work and ensuring that capacity-building support is country owned, results oriented, and evidence based. Also in 2005 the Knowledge and Learning Group in the Africa Region issued the report Capacity Enhancement through Knowledge Transfer: A Behavioral Framework for Reflection, Action, and Results. The report concluded that changes in Bank behavior and approaches to capacity enhancement were important. Key factors include empowering country partners by creating the space for country stakeholders to learn by doing, rather than filling the space with Bank-prepared solutions; adapting knowledge to the local context by emphasizing the best local fit that applies the best global practice; and behaving as an enabler by nurturing effective behavioral competencies, such as listening, curiosity, patience, humility, flexibility, empathy, and building trust. 5. Lessons. These three reports emphatically concluded that the poor results from decades of support to capacity development in Africa were not so much caused by not knowing what to do. Rather, the challenge has been to recognize and be realistic about the long-term nature of capacity development and the importance of governance and partnership for getting results. It also has much to do with being strategic and selective in the application of financial resources earmarked for capacity development support across various types of countries, that is, pushing the frontiers of capacity development in the better-performing countries, using selective entry points in other countries, and building from scratch in several conflict-affected countries. In sum, capacity development must be about raising the impact of all capacity development efforts by applying additional resources only where required, but doing so in ways that are different than in the past and generate durable improvements in individual, organizational, and institutional capacities for effective governments and engaged societies. 6. The Africa Action Plan. In September 2005 the Bank approved the Africa Action Plan (AAP), which outlines 25 priority actions to be undertaken by the Bank Group during the IDA14 implementation period (FY06 08) as well as a monitoring framework with clear, quantitative targets, implementation responsibilities, and measures to mitigate risks. It has the following four pillars: Results management. The Bank will strengthen country-based, outcome-oriented strategies; develop results-based country assistance strategies; establish short-term indicators of progress in priority areas; and develop improved monitoring and evaluation frameworks in projects. Building capable states and improving governance. The Bank will support governance reforms in countries with committed leadership; help strengthen institutions of accountability, such as parliamentary committees and civil society; and implement the recommendations of the Task Force on Capacity Development in Africa. Increasing shared growth. The Bank will assist in strengthening the drivers of growth, that is, infrastructure, regional integration, and private sector and agricultural productivity, and in building the capacity of the poor and women to participate in and contribute to growth through rural development, small and medium enterprises (SMEs), and service delivery. Leveraging the IDA-14 partnership. The Bank will work with development partners to ensure harmonization and alignment to national goals; strengthen efforts to make Bank analytical, 2

19 operational, and country knowledge available to development partners as a public good; enable strategic use of global programs and partnerships to leverage additional resources; and create an Africa Catalytic Growth Fund (ACGF) to support the scaling up of regional investments and turn-around situations with high risk, but potentially high reward, such as in post-conflict countries. 7. Consultations and feedback. African leaders from government, civil society, and the private sector were consulted in the preparation of the AAP, the Task Force on Capacity Development, the studies by IEG, and the Africa Region (AFR) Knowledge and Learning Group (paragraph 3) and most recently in a series of dialogues on the proposed Capacity Development Management Action Plan (CDMAP). These country consultations emphasized the critical importance of country ownership, donor partnerships, and the specific role of the Bank Group. 8. The role of countries. A key message is that Africans must and will take the lead in capacity development and aid management and that the Bank s interventions must be guided by this country-led process; therefore, capacity development support from the Bank and other donors should be indicative and subject to change as countries refine their priorities. At the same time, the Bank s global experience and knowledge of development is an important source of guidance to countries as they develop the content and sequencing of their capacity development programs. The CDMAP must thus be a living document. 9. The scale of Bank support in the design and implementation of capacity development programs will depend on the specific circumstances of that country: There are many ways in which countries can be categorized, including the following: Whether a country is categorized as a high-performing country, that is, those countries that have already made significant progress in the area of capacity development and have set up comprehensive programs for capacity development. In all cases such countries have made significant progress in public financial management as reflected by their PEM scores of 8 or more and/or have achieved scores for government effectiveness (Kaufmann and Kraay) close to the world average. These include Benin, Burkina Faso, Mali, Rwanda, Uganda, Tanzania, and Ethiopia. Whether the country is emerging from conflict where building capacity from scratch is necessary and capacity development becomes a big part of the agenda, which would enable scaling up further support as risks are reduced. These countries include the Democratic Republic of Congo (DRC), Angola, Liberia, Sierra Leone, Sudan, and particularly Southern Sudan, Burundi, and Guinea Bissau. 10. The role of partners. Another key message is that the Bank is not the only actor in the area of capacity development. Most other development partners have put Africa and capacity development at the center stage of their development strategies. The Bank must be cognizant that without the active partnership of both partner country and other donors, achievement of results could be slower and less sustained than is desirable. A true capacity development partnership for Africa does not simply ask other donors to make more resources (trust funds and technical assistance) available, but must recognize that in several areas of the capacity development agenda, donors other than the Bank have comparative advantages, better country knowledge, and wider experience. These partners must be in the forefront, and credit and recognition must be given to their substantive as well as financial contributions. 3

20 11. The role of the private sector. The public sector is not the only player in the provision of essential services. Tapping more effectively into the capacities of communities, religious organizations, and private firms creates new avenues for sustainable capacity development. These nongovernmental players already provide health and education services, for example, to augment or sometimes substitute for the public sector s capacity to deliver. Such civil society and private sector engagement requires a clarification of roles and the right incentives 12. The role of the Bank and its comparative advantages. Africans see the Bank s comparative advantages in capacity development to be (a) its global and Africa experience and knowledge and (b) its convening power for mobilizing international commitments to and support for the new capacity development paradigm and regional programs. They also see the Bank as playing a critical role by setting an example, harmonizing its support with other donors, and helping countries take the lead in making sure that all international support is aligned with country-driven priorities. 13. The Bank s position as a major financier of development operations in Africa makes it possible to work through the Partnership for Capacity Building in Africa (PACT) to mobilize support for new capacity development initiatives and to mobilize additional resources to support regional programs, including regional economic communities (RECs), regional professional networks such as the Africa Economic Research Consortium (AERC), regional business and technical education programs, and Pan-African programs, such as Capacity Development and Linkages for Environmental Assessment in Africa (CLEAA). The Bank will also lead by example in the design and implementation of its own programs, particularly by improving the design of capacity development components in projects, ensuring that these support overall capacity development objectives at the country level, and tracking its progress in achieving these goals. Although a variety of operational contexts and related partnership configurations will influence the Bank s role in country-specific circumstances, the Bank has a particularly strong role to play in supporting cross-country and peer learning as well as in supporting relevant analytical work. 14. Improving governance and controlling corruption. Capacity development would be incomplete if it did not address the broader question of governance and speak to the specific issue of corruption. Within the proposed plan, corruption will be addressed in a manner that is consistent with the Bank s overall multi-pronged strategy, which focuses on (a) preventing fraud and corruption in World Bank financed projects, (b) helping countries that request Bank support in their efforts to reduce corruption, (c) mainstreaming anticorruption efforts in Bank relationships with partner countries, and (d) supporting international efforts to reduce corruption. Strengthening public sector management and institutions in partner countries is mutually supportive of actions to address corruption and improve governance, because the focus is on creating an enabling environment to improve the quality of institutions, laws, incentives, transparency, accountability, and effective leadership. Many of the other proposed actions in the plan, which seek to strengthen both fiduciary reforms and institutional capacity, including civil service reforms, judicial reforms, support for freedom of information, and decentralization reforms, are part of a broader strategy to address corruption and improve governance more generally. Additionally, the strategy includes steps to scale up wider collaboration with other development partners to harmonize procedures and preventive measures, particularly in high-risk countries, as well as develop joint learning programs for Bank and partner country staff to help raise their understanding and sensitivity to the linkages between addressing corruption and improving governance. These interventions will address corruption within the broad framework of prevention, education, and enforcement. 15. Doing business differently. AFR will/must change the way it conducts its business for capacity development. It will organize itself to increase internal accountability for results on the capacity development agenda. This is recognition that mere exhortation and good will alone have 4

21 not produced results of the desired scale and effectiveness in the past. AFR will do its business in an unusual manner to provide space to countries and partners for learning by doing, that is, better recognition and management of the tension between short-term targets and capacity development. An example is challenging the wisdom and acknowledging the sometimes negative impact of freestanding project implementation units (PIUs) on capacity development in many countries across a wide range of Bank-assisted operations. There are situations for which judgment must be employed and trade-offs calculated, accepted, and implemented. 16. The Bank will use all approaches at its disposal to increase the use of local capacity for its work. This will require the Bank and other donor partners to resist, almost instinctively, demanding distractive parallel reporting on programs and projects. Even as the results agenda is primarily focused on recipient countries, the Bank will also hold itself accountable for results. This will require moving out of the comfort zone of internal, albeit independent, evaluations into more independent monitoring and peer feedback. 17. Quick disbursal of assistance (budget support) has many benefits for capacity development, especially when the agenda targets public sector management, local government, tertiary education and training, and investment climate reform; however, a reliance on this form of programmatic lending may not work in many circumstances. The Region must clearly look at hybrids in which policy-based, fast-disbursing assistance can be mixed with the details of long-term investments in capacity development programs. 18. Pilots/good practice. Although support for pilots and the use of good practices that fit with country circumstances is an ongoing practice in AFR, the proposed program includes both scaling up of ongoing pilot programs and piloting new good practice experiences in Africa and from other parts of the world. For example, increasing outreach and facilitating peer-to-peer and South-South exchanges of experience among public servants, communities, and nongovernmental and civil society organizations across local, national, and regional boundaries would be supported. Such networks will also foster the appropriate utilization of already existing programs and facilities at educational and training institutions that are already incorporating new technologies and new teaching methods into their operations. The capacity development experience of several Asian countries and other South-South exchanges of knowledge on capacity development will be actively explored. Box 1 outlines the Africa-Asia link. 5

22 Box 1: Peer Learning and Exchanges: The Africa-Asia Link In the past few years, African countries have begun to look at Asia as one possible role model for economic development. Several successful Asian countries are reaching out to Africa through activities designed to promote peer-to-peer exchanges and knowledge sharing between the two regions. The Shanghai conference, which took place in May 2004, culminated a year of global learning and knowledge exchange among practitioners in some 120 countries. African countries took an active role. The conference in Shanghai symbolizes the progress that China has made in lifting 400 million people out of poverty since China s willingness to share its experiences led to the idea of inviting policymakers and people working on poverty programs in other developing countries to learn from each other and examine questions vital to reducing poverty and achieving the Millennium Development Goals. More than 100 case studies became the starting point for uncovering how successful poverty-reducing policies and programs evolved into large-scale solutions. Other Asian countries are also taking a lead. Singapore and Malaysia have recently proposed helping finance a major scholarship and peer exchange program for African professionals. The aim would be to share the lessons from a part of the world where capacity development has thrived and where the private sector has become a major engine of growth and demand for quality government services. Through the scholarship program, African professionals would attend degree or certificate programs at one of the growing numbers of top-quality public administration institutions that have emerged in the two countries. Although the two Asian nations would fund some of the costs, further funding from the World Bank and other donors will also be needed. Other programs, possibly involving a wider network of Asian countries, could focus on peer exchanges and just-in-time learning opportunities. As an example, delegations from six African countries, together with their World Bank counterparts and key donor representatives, will visit Singapore and Vietnam in June 2006 to learn about Asia s experience in the past few decades in aligning strategies for education and skills development with the growth agenda. 6

23 Part B: The Capacity Development in Africa Management Action Plan 19. Foundations of the CDMAP. The Capacity Development in Africa Management Action Plan is primarily an implementation plan for the capacity development components of the AAP. It includes the organizing framework for Bank support to capacity development activities in Africa and a mechanism to inform the Board of Executive Directors on progress made by management in implementing capacity development programs. The latter will be done within the framework for reporting progress in implementing the AAP. 20. The CDMAP is, therefore, a derivative of the AAP and recommendations of the Bank Task Force on Capacity Development in Africa. It includes 20 actions. Foremost, the CDMAP draws on actions already identified under the four major pillars of the AAP (annex 1). 21. Forty of 47 Sub-Saharan countries are directly covered or have agreed to implement one of the 20 CDMAP actions (annex 3). Seven countries are not specifically covered. Togo and Zimbabwe are currently in arrears. Four middle-income countries, that is, Botswana, Namibia, Swaziland, and Gabon have working relationships with the Bank Group and are partners in several ways, primarily through existing capacity development activities in ongoing Bank or Global Environment Facility (GEF) funded and Bank-executed activities under investment projects. In the case of Botswana, a rich program of knowledge sharing is the preferred approach. One other country, Equatorial Guinea will pursue capacity development programs on their own. 22. The primary focus of the CDMAP is on five specific goals and outcomes, which are core to the development of effective states and engaged societies in Africa, and include the following: More reliable and accountable public financial management systems; Improved capacity for the effective delivery of public services; Better and more appropriate skills to support growth and competitiveness; Capacity to deliver essential services in post-conflict countries; and Improved capacity for country leadership for more effective management and monitoring for results. 23. The CDMAP also covers ways in which the Bank will do its business differently for greater effectiveness and capacity development results. This action plan is, therefore, organized as shown in table 1 and annex 2. 7

24 Table 1: Outline of CDMAP Actions by Outcomes and FY08 Country Coverage Targets FY08 Country CDMAP Actions Coverage Targets OUTCOME 1: More reliable and accountable public financial management systems Action 1. Strengthening public financial management and accountability, including 18 countries public procurement Action 2. Supporting the participation of social actors and broadening the coalition for 7 countries good governance and the fight against corruption Action 3. Strengthening oversight capacity of parliaments and strengthening 7 countries parliamentary networks Action 4. Strengthening media environment and oversight capacity of the media 7 countries OUTCOME II: Improved capacity for effective delivery of public services Action 5. Supporting capacity development for justice sector institutions 22 countries Action 6. Reforming public service systems 24 countries Action 7. Supporting the development of local government systems 14 countries Action 8. Supporting the retention of doctors and nurses 5 countries OUTCOME III. Development of skills for growth and competitiveness Action 9. Supporting regional integration 4 RECs Action 10. Supporting African business schools 7 countries Action 11. Supporting tertiary education, particularly science and technology 8 countries OUTCOME IV. Deliver essential services in post-conflict countries Action 12. Growing the capacity of post-conflict states to deliver essential services 12 countries OUTCOME V. More effective monitoring and management for results Action 13. Helping countries to undertake needs assessments and build outcome-driven, 14 countries capacity-sensitive national development strategies Action 14. Adopting a results focus and strengthening country monitoring and 15 countries evaluation and national statistical data management systems Action 15. Ensuring that PRSPs and CASs include explicit focus on capacity 13 countries development Action 16. Real-time training of Bank and partner country staff on results management 14 countries Doing business differently for greater effectiveness and capacity development results Action 17. Harmonizing support for technical cooperation 5 countries Action 18. Avoiding harming existing capacity and phasing out of PIUs 10 countries Action 19. Energizing the Partnership for Capacity Building in Africa All countries Action 20. Creating a CDMAP monitoring and management function in AFR All countries OUTCOME I: More Reliable and Accountable Public Financial Management Systems CDMAP Action 1: Strengthening public financial management (PFM) and accountability, including public procurement 24. A. Public financial management. The overall PFM capacity development program supported by the CDMAP will cover the following: Budget formulation, revenue management, and predictability and effective control of the budget. In this area, the objective is to assist focus countries in implementing the budget in an orderly and predictable manner and ensuring that arrangements exist for the exercise of control and stewardship in the use of public funds. The CDMAP will support countries in implementing effective internal audit systems and effective controls over revenues, 8