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Budget Support, Aid Instruments and the Environment - The country context

This study examines the linkages between environmental policies and outcomes, public expenditure on the environment and the influence of different modalities of development cooperation. It is based on four short country studies of Ghana, Mali, Mozambique and Tanzania.  The primary objective has been to analyse what lessons might be learned from the four case studies and to draw out key principles and best practices to help guide donor engagement within the environmental sector.

The origins of the study lie in concerns expressed within the international development community over the inadequacy of public funding for environmental objectives in many Developing Countries and the apparently limited attention given to the environment within national development strategies and within the daily practice of public administration.   With the advent of climate change and the likelihood of more severe environmental hazards arising from climatic variations, it has become increasingly important to find effective ways of addressing these concerns.

Five Key Lessons have emerged from this study relating to measures which Governments and Development Partners might take to expand the scope of public actions on the environment and increase their effectiveness:

  1. Recognise the limitations of environmental mainstreaming through Poverty Reduction Strategies.
  2. Focus on raising recurrent not project financing for the environment.
  3. Control the use of taxes, fees and levies as a direct method of financing environmental agencies.
  4. Structure Thematic and Sector Working Groups so as to maximise the quality of policy dialogue and minimise transaction costs.
  5. Use all avenues of dialogue within General Budget Support arrangements and make prudent use of Performance Assessment Framework indicators.

Staff

Cecilia Luttrell, Lidia Cabral, Andrew Lawson