For effective aid management, government, donors, private sector and civil society are today moving towards

joint programme-based approaches (PBA) for the promotion of agriculture and rural development. The programmmebased approach is a coordination and communication mechanism to harmonize and align programmatic planning, financing, capacity development and general management and execution of an ARD program in a given country. The following definition is given by OECD/DAC:

Derived from practical experiences in the preparation and implementation of programme-based approaches (PBAs) as well as based on empirical evidence, the Global Donor Platform for Rural Development offers the following Cornerstones for effective agriculture & rural development (ARD) programmes under a PBA as a practical tool to facilitate the transition process from donor project aid to harmonized and government-led development approaches following the OECD-DAC guidelines for aid effectiveness.

PBAs are long-term approaches. The preparation process can take two to three years until the implementation process, including disbursement, actually starts. The traditional project cycle is here no longer valid, therefore rather than sequencing these cornerstones , the document refers to 1) the content definition process and to 2) the operational processes of a PBA including 2.1) ownership, harmonization, alignment and 2.2) monitoring, mutual accountability, and public financial management. The cornerstones are

Cornerstones for effective agriculture & rural development programmes under a programme-based approach
OECD DAC Definition of a Programme-based Approach Introduction:

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Programme-Based Approaches (PBAs) are a way of engaging in development cooperation based on the principles of co-ordinated support for a locally owned programme of development, such as a national development strategy, a sector programme, a thematic programme or a programme of a specific organisation. Programme-based approaches share all four of the following features: (a) leadership by the host country or organisation; (b) a single comprehensive programme and budget framework; (c) a formalised process for donor co-ordination and harmonisation of donor procedures for reporting, budgeting, financial management and procurement; (d) efforts to increase the use of local systems for programme design and implementation, financial management, monitoring and evaluation.

While there are other documents focusing in length on the characteristics of PBAs, and while the Platform acknowledges the complexity of PBAs, especially in ARD, we wish to provide with this document a concise checklist for easy reference, mainly to be used by ARD practitioners in the envisioning or planning stage of PBAs.

In addition to the presentation of these cornerstones, the Global Donor Platform is facilitating the process towards joint donor minimums standards for effective ARD programs. These standards, once agreed upon by the members of the Platform, are intended to serve as a Code of Conduct to demonstrate the way we (the members of the Platform) mean to do business in ARD. The Code of Conduct will be based on the Joint Donor Rural Concept, established by the Platform members in 2006, and the present document.

underpinned by practical guidelines, appropriate mechanisms & tools as well as by risks & pitfalls to the processes.

(Source: OECD/DAC (2006b, 19)

Ensure that sector policy & strategy are consistent with national and sectoral development plans, such as PRS, and include stakeholder & beneficiary consultations. Ensure that sector strategy provides a basis for developing an operational plan. Include joint institutional assessment from the outset. Promote innovative public/private partnerships for the decentralized delivery of services taking into account of area specific needs and potentials and sound and transparent

At the beginning of any PBA process, a common vision, agenda and scope of program has to be discussed, agreed and committed to by all stakeholders (government, donors, private sector, civil society): the choice of mechanisms, modalities and instruments can follow after. A more focused approach on agriculture key sub-sectors (e.g. agroforestry, technology,

1. Content definition process of PBAs in agriculture and rural development

Cornerstones Practical guidelines Risks & Pitfalls

Appropriate Mechanisms and Tools

Eager, experienced and knowledgeable donors may assume leadership functions in the content definition process that belong to the government.

commodity chains) rather than on rural development is recommended as such sub-PBAs are easier to manage due to less complexity. The participation of the private sector as driver of agricultural growth and the consideration of decentralization and devolution dimensions is of utmost importance in the content definition process. All actors do not need to agree on all issues. But there must be a consensus on key issues among a critical number of stakeholders. Plan for quick wins obvious to all stakeholders to assure their continuous support in often lengthy PBA processes. mechanisms (e.g., cost-sharing arrangements, competitive funds, capacity building facilities). Use universally accepted vocabulary by OECD/DAC.

Assessment of content key areas (based on analytical work). Sound sector strategy. Technical secretariat for the sector round table to ensure transparent information and communication.

Free-form fora for dialogue, brainstorming, trust building. PBA road map / action plan. Portfolio review/mapping exercise/stocktaking exercise.

Design the evaluation system at the design stage, and ensure baseline data is adequately generated (and keeping a simple focus)

> 2.1 ownership, harmonization, alignment

Identify lead donors based on comparative advantages, consider delegated cooperation and silent partnerships and The leadership is with the partner government. Lead ministry and coordination with other key ministries involved, especially Ministry of Finance, is defined from the outset Transparent country -led structures and mechanisms facilitate coordinated dialogue between donors and, especially relevant in ARD, representatives from civil society and the Donors should not insist on perfect operational systems led by the government, good enough will do, and learning-bydoing will eventually happen. Donors and other external actors should have a thorough understanding of what is an appropriate role for them in the PBA process, while taking proactive steps to strengthen Government ownership and leadership.

2. Operational processes of PBAs in agriculture and rural development

Cornerstones Practical guidelines Risks & Pitfalls

Appropriate Mechanisms and Tools

Training in PBA principles and methods (at central and regional levels). Code of Conduct (focuses on behavioral partnership principles). Memorandum of Understanding (focuses on operational mechanisms). Sector web site (maintained by the lead sector ministry) to ensure transparent information sharing.

PBA processes are administratively very intensive and demanding and therefore tend to become overly centralized and administration-oriented at the expense of service delivery at sub-national levels.

private sector. Under the leadership of the lead ministry, the portfolio of on-going donor projects needs to be aligned, in accordance with the sectoral strategy and as part of the PBA process. Division of labour among donors in the sector has to be requested and seen through by lead ministry. Make sure everybody speaks the same language, the key concepts of a PBA must be understood in same ways.

PBA is a public sector concept but there is a risk of assigning all the needed tasks to the public authorities. Many civil society and private sector actors will not be satisfied by a mere consultative role, they want to be part of decision-making and implementation.

concentrate number of donors in the sector; donors can also participate through project assistance and budget support, but with firm commitment to the sector strategy. The simultaneous use of various modalities for supporting a sector programme (project, SWAp, budget support) need to be closely coordinated to ensure consistent alignment.

Beneficiaries & stakeholders may become frustrated with consultations if they dont see improved service delivery in a reasonable period of time. Donor headquarters may not provide clear signals and adequate incentives to take extra efforts for promoting incountry harmonization activities and results

Sometimes donors condition the alignment to the readiness of the government structures and mechanisms. This may postpone the alignment into undefined future. There is a need for donors to encourage and support strengthening of Government systems and procedures from the outset.

Explicit portfolio alignment process of on-going projects and operational plan. Joint missions with jointly prepared ToR, joint analytical and study work Joint arrangements of technical assistance, coordinated by Government sectoral agency. Joint programmatic support modalities, such as budget support and basket funding. Joint Assistance Strategies.

Government & donors together should assess the efficiency and reliability of planning & budgeting systems, disbursement mechanisms, procurement & contracting systems, financial reporting, and control & audit.

Develop commitment by Government management for demand and effective use of the M&E systems. Information generated by performance monitoring system is now always effectively demanded by and used for management purposes and policy formulation and PBA implementation.

> 2.2 monitoring, mutual accountability & financial management

Cornerstones Practical guidelines Risks & Pitfalls
A common frame of result indicators consistent with the national development strategy and sectoral strategy, accompanied by consistent monitoring and evaluation are indispensable in a PBA. Funding and cost forecasts must be realistic. Processes and amounts of resource allocations to sub-national entities must be explicit in the MTEF.

Mechanisms and Tools

A frequent syndrome in M&E consists of too much data, less information, and little knowledge, and ineffective management.
Contact: Secretariat of the Global Donor Platform for Rural Development, c/o Federal Ministry for Economic Cooperation and Development (BMZ)

Publication date: June 2007

Government-led process of a public expenditure review, and formulation of a medium term expenditure framework, and annual budget (on a rolling basis), aligned with the ARD strategy. Increasingly apply government financial management mechanisms for donor resources and, if needed, prepare jointly a strategy and operational plan for the strengthening of the financial management systems.

All financial contributions by donors should be (if not transferred directly as sector budget support) reported on budget in the relevant ministries (including all grants, and funds channeled to private sector/NGOs), to get a total resource picture for the sector. A relevant MTEF is not possible if the donors dont disclose accurate financial data of their interventions. A sound annual budget needs to be consistent with the MTEF, and supported by an operational plan (with adequate consultation at the territorial level). Progressively align planning, supervision and reporting cycles of PBAs and projects to respective government procedures and reporting requirements. Various financing tools for PBAs: basket funds, budget support (non-targeted and targeted), projects. Various financial management assessment tools (PEFA, PER, CFAA, CPAR, PETS, ROSC). Joint review missions: include both external specialists and government, donor, private sector, civil society representatives.

Without a realistic and comprehensive Medium-Term Expenditure Framework (MTEF), a sector strategy has limited value.

National budgeting standards and practices often dont match with MTEF logic, this should not prevent the MTEF exercise, compatibility can be built in the making. To ensure aid predictability, provide partner government with credible medium-term aid commitments, and minimise the variability over the partner governments fiscal cycle.

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