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In 2014, experts working for the European Commission carried out a synthesis of budget support evaluations from seven different countries. “We have learned that the funds we provide don’t just go into a black hole,” said Jürgen Lovasz, Team Leader for Budget Support in the Evaluation unit at DEVCO. These funds have been used – as intended – to improve people’s livelihoods. 
A Joint Evaluation of Budget Support to Tanzania from 2005/06 to 2011/12 was completed earlier this year, with the results discussed this month in Brussels. While the general consensus is that its use has been positive, showing good results, some important lessons arose during its implementation, and can be applied to other Budget Support situations.
 When you think about development challenges, a lack of trained accountants might not immediately come to mind. Yet poor public sector financial management is often at the root of patchy service delivery in other sectors, from health and education to transport. South Africa recognised this underlying issue, and with EU support embarked on a capacity development programme.
The Ebola epidemic has taken many lives, breaking up families and leaving numerous children parentless. But it has also left its mark on the economies of affected countries. In Sierra Leone it has more or less ‘destroyed’ the economy, disrupting all key sectors including agriculture, mining and tourism. Donor support has been too slow to arrive and has not ‘kept pace’ with the disease, according to Alimamy Bangura, Director of the Economic Policy and Research Unit at Sierra Leone’s Ministry of Finance.
Capacity4dev Team created a new Article 11 November 2015
The balance of international aid is shifting, with emerging donors contributing a growing proportion of the international development budget. The surge in investment needs careful handling to avoid gaps and overlaps, and to keep poverty reduction and lowering inequality at the heart of aid. Collaborative projects between the EU, emerging donors and beneficiary countries could be the way forward, according to a European Commission report, ‘The European Union, Africa and New Donors’. 
Zambia can sound like a success. One of sub-Saharan Africa’s fastest-growing economies – with an average annual expansion of 3% between 2004 and 2013 – it was classed by the World Bank as a lower-middle-income country in 2011.
SMEs in developing countries face significant financing challenges due to the lack of appropriately-sized loans available to them. Needs on either end of the spectrum are – relatively – better addressed; large firms have a variety of mechanisms to choose from and grassroots initiatives fill the gap on the microfinancing end. The funding gap for SMEs, however, is estimated by the International Finance Corporation to be at least $2 trillion, with more than 200 million SMEs in need of a loan or overdraft. 
Public group
Owned by: 
Enrique Rebolledo
Created: 
21 September 2015

Climate finance tools, instruments approaches, experiences and lessons learned

73 members 76 posts 3 recommendations
Effective capacity development involves understanding and supporting change management processes, according to consultants Carole Pretorius and Nico Pretorius who took part in a special capacity development workshop in Brussels recently.
Public group
Owned by: 
Capacity4dev Team
Created: 
30 November 2010

A group to discuss and support the pragmatic and gradual introduction of a "political economy" approach in EC Development Cooperation.

293 members 96 posts 2 recommendations

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