How to Deliver Value for Money in DFID’s BER Programmes including updates on Economy and

How to Deliver Value for Money in DFID’s BER Programmes including updates on Economy and - Description

Effectiveness. Edward Hedley & Gulden . Bayaz. 29 September 2016. Introduction to this presentation:. DFID’s approach to . VfM. IFC’s approach to . VfM. in BER. Effectiveness: suggested . VfM. ID: 638117 Download Presentation

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How to Deliver Value for Money in DFID’s BER Programmes including updates on Economy and

Effectiveness. Edward Hedley & Gulden . Bayaz. 29 September 2016. Introduction to this presentation:. DFID’s approach to . VfM. IFC’s approach to . VfM. in BER. Effectiveness: suggested . VfM.

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How to Deliver Value for Money in DFID’s BER Programmes including updates on Economy and




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Presentation on theme: "How to Deliver Value for Money in DFID’s BER Programmes including updates on Economy and"— Presentation transcript:

Slide1

How to Deliver Value for Money in DFID’s BER Programmes including updates on Economy andEffectiveness Edward Hedley & Gulden Bayaz

29 September 2016

Slide2

Introduction to this presentation:DFID’s approach to VfMIFC’s approach to VfM in BEREffectiveness: suggested VfM indicators and using ToCs to explain impact pathwaysEmerging issues on economy, effectiveness and equity from consultations to prepare BERF VfM Evidence Note

Slide3

DFID’s approach to conceptualising VfMDFID uses the NAO Framework of 3Es (Economy, Efficiency, Effectiveness) plus the 4th E (Equity).The ways VfM is measured in DFID programmes:Quantitative methods (mainly using Cost Benefit Analysis, Unit Costs analysis, Efficiency Savings).Qualitative methods (case studies, before and after studies, procurement practices, etc).The trend is towards using VfM indicators, which are like logframe indicators but have costs attached to them. Monitored periodically (annually or bi-annually).This is the general approach for DFID

programmes

and not different in BER.

Slide4

IFC’s approach to conceptualising VfM in BERThe way VfM is addressed in IFC BER programmes:Based on three levels: reform, outreach (number of benefitting firms), compliance cost savings Aimed to cover IFC’s main workstreams in BER (such as tax compliance, business entry, business licensing, etc)Benchmarks were defined for the VfM of projects (based on information from 200+ previous/ ongoing IFC projects)

VfM

metric

Calculation

Cost per BE reform

Cost / No. of reforms

Outreach per 10 million population

Cost / Number of firms benefiting per 10 million population

Compliance cost savings per 10 million population

Compliance cost savings per 10 million / Cost

Slide5

Other VfM frameworks relevant to BERSimilar VfM frameworks in other BER outcome areas: Work is under way, by the IFC, to address the VfM in jobs measurement, similar to the private sector cost savings based framework.Feedback from key informants for the VfM Evidence Note was that public sector cost savings should also be considered for a similar VfM framework.

Slide6

Example cost effectiveness indicators (by IFC workstreams) Indicators

Applicable IFC

workstreams

Business entry

Business licensing

Inspection

Tax process simplification

Tax comp mgmt.

SME taxation

Risk-based audit

Trade logistics

Cost Effectiveness

Cost per £

of increased income for beneficiaries

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Cost per job created

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Slide7

Using ToCs to explain programme effectiveness (1)ToCs are helpful:To communicate expected results to internal and external audiences.To explain programme attribution from inputs to high level impacts, such as changes in Doing Business indicators.To articulate impact pathways on how reforms such as PPPs, regulatory work or competition relate to poverty reduction.

When they are populated with context-specific evidence.

Slide8

Using ToCs to explain programme effectiveness (2)ToCs and programme impact:Business registration related cost savings and job creation links example. Positive example from Mexico (Bruhn, 2008) but did this assumption apply in Nigeria? In terms of higher level impacts, particularly to poverty reduction, an analysis of BRICK Kenya ToC (2014) found that: The ToC needed clearer links on how reforms such as regulation, competition and PPPs had impact on poverty reduction.More evidence was needed on the assumption that: regulatory work impacted mainly large companies and they are the ones creating jobs for the poor.Links between competition, consumers and poverty and how different segments of population will be affected from price fluctuations, etc .

Slide9

Emerging Issues from Evidence Note Consultations (1)Economy:Further disaggregating project budgets and expenditure information by IFC. Providing unit costs of key inputs under economy related information.Expenditure tracking to assign costs at workstream levels.Effectiveness:Better understanding of government opportunity costs (costs to the government of implementing one type of reform over another).The need to use political economy analysis at design and during implementation, particularly for ‘resource allocations between project components’ (IFC, 2014).

Slide10

Emerging Issues from Evidence Note Consultations (2)Equity:Better understanding beneficiaries of reform and equitable reach of BER programmes, for instance impacts broken down by income quintiles.Better understanding of the gender impact of programmes (more than gender-disaggregation of project data): to examine, through in-depth studies, changes in social statures of womenTo choose sectors that have more potential for engaging and benefitting women.