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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.
How can Sector Budget Support embrace Civil Society and what can be achieved? How can such support offer an effective way to strengthen sector capacity and governance? In this first of a two-part series on capacity4dev.eu, Jozet Muller from the EU Delegation to South Africa shares her experience of engaging with civil society in ways that are helping to promote transparency and accountability.
Over the past couple of years a number of donor agencies have adopted Political Economy Analysis tools to assist development practice. The European Union Delegation to Zambia recently carried out two pilot political economy studies. Their experience provides lessons for developing an EC tool.
Capacity4dev Team created a new Article 19 April 2011
Budget Support involves channeling finances directly into the treasury of partner countries. It’s a form of development assistance that represents an important form of assistance for international donors like the European Commission and in the central African nation of Rwanda, government representatives are enthusiastic about its positive impact.
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.
 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.
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. 
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Capacity4dev Team
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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
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. 
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’. 

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