Posts Tagged ‘International Aid Transparency Initiative’

“Dead Aid” Debate needs Big Data

Thursday, April 12th, 2012

Doug Hadden, VP Products

House of Lords - Well Known Aid Effectiveness Experts?

If we could only harness the hot air coming from the foreign aid debate as a new renewable energy source. There’s a school of thought that aid is ineffective – as encapsulated (poorly) by Dambiso Moyo in Dead Aid, There is little agreement among experts. And, the pantheon of development experts, the House of Lords in the UK want to scrap the foreign aid target. (Stick that in your wig, so to speak.)  Not to say that the aid debate doesn’t have moments of levity – as recently supplied by New York University professor William Easterly.

William Easterly on Aid Effectiveness in Judea

 

Narrative vs Data

The aid effectiveness debate thrives on narrative. Facts are used to support points of view or confirmation bias. Data is powerful. Data disrupts the “truthiness” of an argument .You only need to look at Hans Rosling’s gapminder.org to see the power of data in action. There have been huge strides to liberate data from documents thanks to Aid Data.

The data provides insight. Helps to determine what works and what doesn’t. But, the depth and breadth of aid and economic data is limited. But that’s all going to change.

Towards Big Data and Transparency

It’s rather ironic that so many politicians are prepared to abandon foreign aid just at the point of the aid data explosion. The effects of aid are difficult to measure (except at the micro level) because of factors like remittances, foreign direct investment, protective tariffs in developed countries, government spending, and governance. Thanks to the International Aid Transparency Initiative (IATI) and the opening of more public data – led by the World Bank, it seems that we’ll soon learn how to make aid effective (or definitive proof that aid is a waste of money.)

This is very much a “big data” problem:

  • Structured and unstructured data including open data and documents
  • Multiple data sources at different levels of information abstraction
  • Complex semantics requiring taxonomies and perhaps linked data
  • Multi-variate information (remittances, FDI etc.)
  • Social networking information and activity streams
  • Information-sensing mobile devices and crowdsourced information
  • Geographic-based information
  • Potential for petabytes of data
  • Need for visualization and data exploration

Benchmarking Effectiveness

Foreign aid is an easy target for politicians. Many want a level of certainty about aid effectiveness well beyond standard government programs. For example, the No Child Left Behind funding for 2012 is expected to be over $14B. That’s 1/3 of the entire 2013 State Department and USAID budget request which could be cut down to $38B by Congress. Is there the same scrutiny in developed countries for domestic programs as there is for foreign?

FreeBalance to Share Expertise on Leveraging Debt Management for Effective Public Financial Management

Wednesday, October 26th, 2011

Framework for Interfacing Debt Management Systems with Financial Management Information System (FMIS) focus of Commonwealth Secretariat workshop in London, UK

Ottawa, Canada (October 26, 2011)FreeBalance, a For Profit Social Enterprise (FOPSE) software company that helps governments around the world to leverage robust Government Resource Planning (GRP) technology to accelerate country growth, will be presenting at the “Leveraging Debt Management for Effective Public Financial Management: Framework for Interfacing Debt Management Systems with IFMIS” workshop organized by the Commonwealth Secretariat. This workshop runs from October 26 – 27 and will be held in London, UK. Over 30 Ministry of Finance, Treasury, and Accountant General representatives from 12 countries will be participating in the two-day workshop. Attendees from the World Bank, International Monetary Fund (IMF) and Public Expenditure and Financial Accountability (PEFA) Secretariat will also be participating.

During the workshop, Doug Hadden, Vice-President Products at FreeBalance will be participating in the “FMIS Implementation: Experiences and Best Practices for Interface with Debt Management” session on Thursday, 27 October 2011 from 11.30-13.00. Mr. Hadden will be joined on a panel with representatives from Thailand, Chile, and Brazil. Other workshop sessions include: Framework for Public Financial Management – Sound Practices; Framework for Government Cash and Debt Management; and, Transparency, Performance Assessment and Accountability in PFM and Debt Management.

“FreeBalance looks forward to sharing good practices in FMIS implementations and debt management integration with attendees,” said Manuel Pietra, FreeBalance President & CEO. “Integration has significant benefits. Tight integration with commitment accounting systems enables better cash, debt, investment and liquidity management. Integration can be accomplished with aid management, budget preparation and budget execution systems. Government Resource Planning systems can seamlessly be integrated and support the International Aid Transparency Initiative standards.”

The FreeBalance Accountability Suite is a Government Resource Planning (GRP) solution that supports transparency and accountability. FreeBalance solutions for governments and external aid projects and funds simplify administration and reduce transaction costs for government or private organizations managing aid projects. The FreeBalance Accountability Suite automates reporting to donors, project finance management, and project performance management. The FreeBalance solution operates in developing nations around the world, including low-capacity countries, and providing effective donor reporting that meets international standards.

FreeBalance recently published an Aid Transparency Integration white paper that describes how integration between donor and government financials systems reduces transaction costs and corruption through automation. This improves efficiency and effectiveness by data harmonization. The white paper details how manual methods of integration compromises data quality and timeliness resulting in less coordination and less effective aid. And, the white paper advocates the use of program budgeting by all aid stakeholders for timely reporting and ease of integration with project documents.

FreeBalance is active in 19 countries, including Antigua & Barbuda, Afghanistan, Canada, Iraq, Kosovo, Kyrgyz Republic, Liberia, Mongolia, Namibia, Pakistan, Sierra Leone, Southern Sudan, Timor-Leste, and Uganda among others. FreeBalance software manages more than a quarter trillion ($US) annual budgets worldwide. 

About FreeBalance
FreeBalance helps governments around the world leverage robust Government Resource Planning (GRP) technology to accelerate country growth. FreeBalance software solutions for public financial and human resource management support reform and modernization to improve governance, transparency and accountability. Good governance is required to improve development results. For more information, visit www.freebalance.com.

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