Getting it Right from the Start - Oxfam New Zealand

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8 Allow sufficient time for transitionThe SSDP calls for international donors to move away from „nongovernmentaid‟ and to channel their funds increasingly throughgovernment systems and institutions. In the long term, the governmentrequests donors to provide assistance through „general budget support,sector budget support and project support‟, and to provide „projectsupport that is directly managed by GoSS.‟ 65‘Phasing transitions fromhumanitarian aid is … animportant part oftransforming institutions. Incountries where currentstresses overwhelm nationalinstitutional capacity by alarge margin, nationalreformers often draw oninternational humanitariancapacity to deliver earlyresults. … a difficult trade-offoccurs in deciding on thetime needed to shift thesefunctions to nationalinstitutions. … For health,education, water andsanitation, it means reducinginternational roles step bystep over time as thecapacity of national or localinstitutions increases…’World Bank, World DevelopmentReport 2011, 19.The government‟s desire to see development assistance channelledthrough government institutions is in line with good developmentpractice, as reflected in the Paris Declaration on Aid Effectiveness, theAccra Agenda for Action and the Fragile States Principles. In thecontext of South Sudan, however, it is essential that such a shift bebased on a realistic assessment of the government‟s capacity tomanage aid funds in a manner that is transparent, accountable andmost importantly ensures uninterrupted service delivery to the people ofSouth Sudan.The GoSS has not as yet had full responsibility for the management ofany aid funds. The establishment of the World Bank-administered Multi-Donor Trust Fund (MDTF) was a shift in this direction – however evenin the case of the MDTF the procurement process has been onlypartially government-managed. And even with this arrangement, theinefficiencies of the fund – which failed to deliver timely assistance tothe people of South Sudan – provide an indication of what can happenwhen transition is rushed. 66 It‟s in everyone‟s interest to see the GoSSassume responsibility for the management of humanitarian anddevelopment assistance, but it won‟t happen overnight.NGOs are currently responsible for the delivery of an estimated 80 percent of health services in South Sudan. 67 As acknowledged by theGoSS, „if support is withdrawn, these services could collapse veryquickly‟ 68 – with disastrous implications for South Sudanese.Evaluations have shown that technical projects implemented byexperienced international agencies have been more effective thanthose driven by state building objectives or which „have to contend withdivided or inefficient national structures‟. 69 With this in mind, it isessential that humanitarian and development assistance, channelledthrough and delivered by international aid agencies, be allowed tocontinue alongside efforts to build government institutions and capacity– with a view to creating an environment whereby developmentassistance can be wholly delivered through national institutions andsystems in the years to come.In addition to support for government institutions, the continuation ofhumanitarian and development assistance by and through internationalaid agencies will require developing and implementing an appropriateregulatory framework aimed at facilitating the work of NGOs. There iscurrently a lack of clarity regarding the bureaucratic requirementsapplicable to NGOs operating in South Sudan – including issues suchas registration, taxes, work permit and visa requirements for26
international staff and social insurance for national staff – and there issome concern that the operating environment could become morerestrictive post-independence. Such a shift could jeopardise the criticalrole played by NGOs in the provision of humanitarian and developmentassistance – and particularly the delivery of basic services – to thepeople of South Sudan.Recommendations• Direct significant financial and technical resources towards buildingthe capacity of government institutions, particularly the MoFEP, tomanage aid funds; as well as the capacity of civil society to engagein the budget development process and to monitor governmentspending.• Support the GoSS to establish benchmarks for determining whethernational systems and institutions provide satisfactory assurance thatgovernment-managed aid brings maximum possible benefit to thepeople of South Sudan. 70 Benchmarks should measure thegovernment‟s capacity to ensure transparent management of aidthrough an appropriate legislative framework, and to monitor andreport on the use of funds. The passing of (and subsequentadherence to) the Public Financial Management Act, the ProcurementAct and the Audit Act, and the roll-out of the Financial InformationManagement System across all states, provide examples of minimumbenchmarks upon which such a transition could be based.• Ensure that funding mechanisms for the delivery of basic servicesare designed so as to facilitate eventual transition to governmentmanagement. External oversight must be retained, but governancearrangements should allow for a gradual increase in governmentinvolvement as benchmarks are met. The establishment ofappropriate safeguards to mitigate fiduciary risk (and at the sametime to strengthen public financial management systems) will be animportant component of any such transition strategy. 71• Recognise that the design of new funding mechanisms will taketime. With current funds coming to an end and new mechanismsonly in early stages of discussion, donors must ensure anuninterrupted flow of funds for basic services. In this regard, theproposed extension of the Basic Services Fund (BSF) is welcome,however the details of the extension must rapidly be finalised so asto ensure appropriate continuity of service delivery.• Support the GoSS to develop and implement an appropriateregulatory framework for NGOs operating in South Sudan – aimed atfacilitating, not restricting, the provision of humanitarian anddevelopment assistance. Such a framework should be informed byconsultation with NGOs, and should clarify in particular: whichgovernment ministry is the primary interlocutor for NGOs; NGOregistration requirements; immigration requirements for internationalstaff and employment requirements for national staff; and applicabletax exemptions.27
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Page 4 and 5: Recommendations1. Balance developme
Page 6 and 7: IntroductionOn 9 July, millions of
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Page 10 and 11: persons displaced. All this took pl
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