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Wednesday, December 8, 2010

Aid Policy and Management, the Rwandan Experience

Clement Ncuti, Budget Advisor, Rwanda, described the challenges facing the government in aid effectiveness at the ICGFM Winter Conference. These included:

Human and institutional capacities

  • Predictability because of aid conditionality

  • High transaction costs

  • Requests for unstructured data from donors

  • Lack of alignment with government priorities

Mr. Ncuti described the Rwanda aid effectiveness policy. He warned that the challenge is to implement the policy. Lessons were learned to improve the effectiveness of the policy after implementation. Aid effectiveness must be country driven in order to be successful.

The aid effectiveness policy goals of the Government of Rwanda are:

  • Use of reliable country systems

  • Alignment to national priorities

  • Strengthening local capacities

  • More predictable aid

  • Untied aid

  • Use of common arrangements

  • Results-oriented frameworks

  • Mutual accountability

Mr. Ncuti described the institutional framework in Rwanda for aid policy implementation. He described the criteria for placing aid on budget and the process of aligning aid to country priorities. Medium Term Expenditure Framework (MTEF) is used in the creation of budgets. The Government of Rwanda uses the Development Assistance Database (DAD) and an in-house Integrated Financial Management Information System. These systems are not integrated.

The key lesson learned, according to Mr. Ncuti is the need for mainstreaming of an Aid Policy requires extensive input and ownership over the policy from across government at both technical and political levels

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