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Child Poverty in Mozambique. A Situation and Trend ... - Unicef

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A key cause of these weaknesses is the problem of ‘double fragmentation’<br />

highlighted by de Renzio & Sulemane (2006). The term refers, firstly, to the<br />

duplication of plann<strong>in</strong>g <strong>and</strong> budget<strong>in</strong>g systems between the sectors <strong>and</strong> the central<br />

agencies due to the external f<strong>in</strong>anc<strong>in</strong>g available at sectoral level (through SWAps, for<br />

example), particularly <strong>in</strong> key child-related areas such as health <strong>and</strong> education. This<br />

underm<strong>in</strong>es the CFMP <strong>and</strong> the State Budget as <strong>in</strong>struments for mak<strong>in</strong>g strategic<br />

resource allocation decisions.<br />

Officially, the M<strong>in</strong>istry of Plann<strong>in</strong>g <strong>and</strong> Development is charged with the coord<strong>in</strong>ation<br />

of other Government medium- <strong>and</strong> short-term plann<strong>in</strong>g documents (<strong>in</strong>clud<strong>in</strong>g the<br />

Government Five-Year Plan, the PARPA <strong>and</strong> the CFMP) <strong>and</strong> conduct<strong>in</strong>g overall<br />

monitor<strong>in</strong>g of Government performance, with budget<strong>in</strong>g lead by the M<strong>in</strong>istry of<br />

F<strong>in</strong>ance. 20 The sectors, however, reta<strong>in</strong> very strong de facto roles <strong>in</strong> plann<strong>in</strong>g <strong>and</strong><br />

budget<strong>in</strong>g. In particular, those that receive a large portion of their fund<strong>in</strong>g through<br />

external assistance reta<strong>in</strong> a large degree of autonomy from the Government’s central<br />

agencies. Until recently the majority of these funds were not recorded <strong>in</strong> the State<br />

Budget. A concerted exercise to place the majority of donor funds “on-budget” is<br />

presently underway. The shift <strong>in</strong> sectoral donor fund<strong>in</strong>g away from an exclusively<br />

project based approach towards SWAps <strong>and</strong> Common Funds with<strong>in</strong> the key sectors<br />

(which has strengthened the role of the sectoral Plann<strong>in</strong>g Directorates) has also<br />

helped. Additionally, the CFMP had also been limited until recently <strong>in</strong> the sense<br />

that it was a purely technical document for <strong>in</strong>ternal plann<strong>in</strong>g with<strong>in</strong> the M<strong>in</strong>istry of<br />

F<strong>in</strong>ance <strong>and</strong> the M<strong>in</strong>istry of Plann<strong>in</strong>g <strong>and</strong> Development. Importantly however, it was<br />

submitted to <strong>and</strong> approved by the Council of M<strong>in</strong>isters for the first time <strong>in</strong> 2006.<br />

The second aspect of ‘double fragmentation’ is the separation between plann<strong>in</strong>g <strong>and</strong><br />

budget<strong>in</strong>g <strong>in</strong>stitutions (the M<strong>in</strong>istry of Plann<strong>in</strong>g <strong>and</strong> Development <strong>and</strong> the M<strong>in</strong>istry of<br />

F<strong>in</strong>ance), which is also reflected <strong>in</strong> the division between the plann<strong>in</strong>g <strong>and</strong> budget<strong>in</strong>g<br />

<strong>in</strong>struments (PES <strong>and</strong> OE, BdPES <strong>and</strong> REOE). In particular, the State Budget does not<br />

relate strongly to the PES as it is formulated <strong>in</strong> an <strong>in</strong>cremental, <strong>in</strong>put-focused manner.<br />

Categories <strong>in</strong>clude what each <strong>in</strong>stitution can spend on salaries, goods <strong>and</strong> services,<br />

rather than specific outputs as detailed <strong>in</strong> the PES.<br />

There is also a third level of fragmentation, between plann<strong>in</strong>g <strong>in</strong>struments submitted<br />

to parliament <strong>and</strong> those that comprise the ‘contract’ between Government <strong>and</strong><br />

donors. Thus, <strong>in</strong> the medium-term, the PARPA (unlike the Five-Year Plan) is not<br />

submitted for Parliamentary approval. There is therefore a bifurcation of accountability,<br />

with the Five-Year Plan be<strong>in</strong>g accountable to the Parliament <strong>and</strong> the PARPA to<br />

donors. This is reflected on an annual basis by the division between the PES/BdPES<br />

<strong>and</strong> the donor-government review processes (see Section (v) below). This division<br />

of accountability underm<strong>in</strong>es accountability of the executive to the public, <strong>and</strong> may<br />

also reduce the dem<strong>and</strong> for participation (Hodges <strong>and</strong> Tibana, 2005). Thus, one could<br />

say that there exists, <strong>in</strong> fact, a system with ‘treble fragmentation’. To resolve this<br />

tension, the Government has decided to merge, start<strong>in</strong>g 2009, the PARPA with the<br />

Five-Year Plan, thereby avoid<strong>in</strong>g the production of two dist<strong>in</strong>ct medium-term plann<strong>in</strong>g<br />

<strong>in</strong>struments that are accountable to separate <strong>in</strong>stitutions. This decision also meets the<br />

dem<strong>and</strong> of civil society expressed <strong>in</strong> the 2005 Annual <strong>Poverty</strong> Report (see Box 2.3:<br />

“Civil Society Engagement <strong>in</strong> the PARPA: The <strong>Poverty</strong> Observatory <strong>and</strong> the RAP”).<br />

However, this bifurcation of accountability will cont<strong>in</strong>ue with respect to the annual<br />

plann<strong>in</strong>g <strong>in</strong>struments.<br />

20 The two <strong>in</strong>stitutions used to be merged with<strong>in</strong> a s<strong>in</strong>gle M<strong>in</strong>istry but were divided dur<strong>in</strong>g 2005 <strong>and</strong> many of the operational aspects of the<br />

division have yet to be worked through. The CFMP, for example, is a highly collaborative effort with significant <strong>in</strong>put from both m<strong>in</strong>istries.<br />

58 CHILDHOOD POVERTY IN MOZAMBIQUE: A SITUATION AND TRENDS ANALYSIS

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