By Organization for Economic Cooperation and Development

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That decisions to use country systems will delay funds being made available, especially in fragile states or emergency situations (“delaying risk”). Donors may vary in their tolerance for different risks based on their own legal frameworks, political commitments or internal incentives. Some donors therefore place developmental risk higher up the scale than fiduciary risk, whilst others try to avoid reputational risk more than the risk of delaying the availability of aid money. In finding the right balance in all these areas, it is fundamental that aid practitioners, aid sceptics and the public at large better understand what using country systems entails, the risks of both using and not using a country’s systems, and the ways in which mutual support and partnership can help achieve the commitments set in Paris and Accra.

Thus, communicating budget changes in advance is crucial to allow partners time to adjust their budgets and work plans. u le O Ensuring flexibility and predictability D Br o supporters of the multilateral system or specific agencies, cuts need to be communicated in advance because they can have a major impact on these agencies’ planned activities. n w _it E d it e io s u Lect An In the current context of economic uncertainty, mechanisms to move funding around within the system and to cross over financial years can be helpful.

2. Statistics: what every country needs e R O EC In the Paris Declaration and the Accra Agenda for Action, “country systems” include national arrangements and procedures for public financial management, procurement, audit, monitoring and evaluation, and social and environmental procedures. For example, in the case of public financial management, national systems for the management of funds are those established by the country’s general legislation and implemented by government. 2). u Lect r All countries need statistics.

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