08/12/2011
1
Synthesis of the main results of the
Budget Support Evaluation in South
Africa (2000-2010)
Enzo Caputo
Independent Consultant
Brussels, 8-9 July 2014
Key elements of the South African Context
South Africa (SA): a middle income country.
2. ODA = 1.3% of the national budget. Specificities of the
Reconstruction and Development Programme Fund.
3. Role of National Treasury in strengthening ownership
and increasing alignment and harmonisation of ODA.
4. The SA-EU Trade and Development Co-operation
Agreement (TDCA), and the SA-EU Strategic
Partnership/Joint Action Plan: an opportunity for a wide
exchange of policy experience.
1.
Shift from support to rehabilitation (1994-2000), to policy
support: SBS key instrument of this evolution.
Scope of the analysis - Overview of the SBS interventions
Pre-TDCA
TDCA
EU-SA strategic partnership
RCF I
Gov.
Wat.
Soc.
Urb.
Post-Apartheid Reconstruction
Eco.
RCF II
SWEEP I&II
Employment creation
Innovation for poverty alleviation
Legislative SSP
Access to Justice & HR
e-Justice
Masibambane I
Masibambane II
NDPS
P
Masibambane III
Partnership for Health II
PrimHealth
PrimEdu
Urban development support to e-Thikwini
Urban renewal programme in the Eastern Cape
Other non-budget support interventions: e.g. LED programmes, TABEISA, HIV & higher education, Victim empowerment programme,
TDCA Dialogue Facility…TOTAL BS = 1bn € over 10 years
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
South Africa: Main findings on Step 1
Ratio of RDP receipts to total ODA flows to South Africa
•
Despite the reduced amounts, SBS funds have strengthened the ownership
of GoSA over development cooperation funds.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
EU
All donors except US
All donors
Sources: National Treasury/RDP audited reports, National Treasury/IDC data for RDP receipts reported on the
basis of fiscal years and http://stats.oecd.org/qwids/ for ODA data reported on the basis of calendar years.
•
Very high rates of disbursements & high predictability of SBS disbursements: on
average 95% of forecasted funds were disbursed within the same fiscal year; these
averages however hide major delays in the payment of a number of tranches.
Share of SBS funds as % of additional allocations
… thereby increasing the fiscal space for key policy experimentation.
•
140%
120%
100%
80%
60%
40%
20%
0%
Sources: own calculations based on data retrieved from the Budget Reviews (2001-2011) for GoSA
additional allocations and EUD data for SBS commitments.
Effects on Public Spending / Budget management
1.
Strengthened Treasury’s capacity to provide rapid and
flexible responses to the requests of funds for
innovative policies and pilot initiatives, in targeted
sectors.
2.
No important contributions to national or local PFM
improvements. Good PFM has been a success factor
rather than an SBS contribution.
The SA-EU dialogue framework
Strategic Partnership Joint Action Plan (JAP)
(2007)
SADC-EU
Berlin
initiative
Parliamentary
dialogue
TDCA
(signed in 1999, fully implemented in 2004)
Agreement on S&T co-operation
(1997)
Africa-EU
strategic
partnership
Cotonou
Partnership
agreement
Political
dialogue
(JAP + Title I)
Joint Co-operation Council
Summits
Annual
SADC EPA
Trade:
Titles II & III
Trade
cooperation
council
Tax &
Customs
Economic
cooperation:
Titles IV
Other areas:
Titles VI
Energy
ICT
Civil
aviation
Maritime
transport
Migration Environment
S&T
Health
Social Education/
dialogue
Training
Justice &
crime
Dialogue forums
Statistics
Development
co-operation:
Titles V
Annual
consultations
Specific
interventions
MDP
6 monthly
Senior Official
PSC & ad hoc
Policy Dialogue & Capacity development
1.
2.
3.
Two dimensions of dialogue:
•
Policy dialogue directly linked to BS (exchange on the
specific programmes, performance assessment
framework, assessment of KPI…) => strong since the
beginning of the evaluation period (Water, Urban
Development, SWEEEP…).
•
Policy dialogue that takes place at the broader level of
the strategic partnership (sharing of lessons learnt) =>
increased and successful attention in the second part of
the period (Health, Governance…, but not Employment
and Education).
SBS has supported capacity development through
strong effective mobilisation of national technical
resources (Water, Employment…), and through
innovative CSO involvement (Justice, Health…).
Link between capacity development and exchange
of know-how has shown important contributions in
the second period (Health…).
Summary on the direct contributions of the SBS package
1.
The various components of the SBS package have
operated in different ways in each programme:

2.
The role of funds was usually significant, while the strength
and the quality of dialogue depended on a number of factors.
Some examples on the contribution to policy
experimentation:




Innovation for Poverty Alleviation (Funds and SP).
Risk Capital Fund (Funds and Knowhow).
PrimCare (Funds and Knowhow).
Access to Justice (Funds and dialogue-trust).
South Africa: Main findings on Step 2 and
Step 3
Water and Sanitation Sector - Key findings
• Main changes at outcome/impact level:
 Significant achievements in terms of increased access to water
and sanitation facilities and, to a lesser extent, in terms of the
quality of the drinking water.
 Maintenance and operations remain weak.
Households with access to piped water (provincial and national level)
100%
90%
Western Cape
80%
Eastern Cape
Northern Cape
70%
Free State
KwaZulu-Natal
North West
60%
Gauteng
Mpumalanga
50%
Limpopo
South Africa
40%
30%
2002
2003
2004
2005
2006
2007
2008
2009
2010
Sources: own calculations based on data from the GHS survey (2002-2011).
2011
Water and Sanitation Sector - Key findings
• Determining (policy and historical) factors:
 New sector strategies and huge public investment (high political
priority).
 Transfer of WATSAN responsibilities to local government and
support at local level (Masibambane) have proven determinant
for success in the poorest areas.
 New approach to sector collaboration.
 Persistent weaknesses in capacities at municipal level.
 Low involvement of CSOs.
•
Contribution of SBS (especially in the first period) via:
 Support to the establishment of a new comprehensive strategy
through Masibambane.
 Build capacities at local government level & promotion of sector
leadership.
 Promotion of a wide range of innovative pilot projects.
 Weak dialogue in the second phase to stress the CSO
component (SBS strategic dialogue has lost some of intensity in
the second period).