Lesson 2: Policy cycle and Programming phase

Lesson 2: Policy cycle and Programming phase

Macerata, 9th OctoberStefano Fiorini – Alessandro Valenza

Project cycle management for international development cooperation

II. OPERATION CYCLE

CYCLE of OPERATION

The different phases

• Programming

• Identification

• Formulation

• Implementation

• Evaluation

Approach: problem solving

Example

Some references for defining the theoretical concepts (1)The Programming phase happens before the call for proposal/ projectare developed and it is at EC level. During the Programming phase, thesituation at national and sector level is analysed to identify

problems, constraints and opportunities which cooperation couldaddress. This involves a review of socio-economic indicators, and ofnational and donor priorities. The purpose is to identify the main

objectives and sector priorities for co-operation, and thus to provide arelevant and feasible programmingframework within whichprogrammes and projects can be identified and prepared. For each ofthese priorities, strategies that take account of the lessons of

past experience are formulated.

Some references for defining the theoretical concepts (2)• The identification phase delivers a project idea (a pre-feasibility study)

and identifies all the problems and possible solutions.

• The formulation phase is after the identification phase: projectapplicants’ delivery is a sort of feasibility study, explaining why andhow the proposed project is well-grounded and is likely to reach theobjectives, outputs and outcomes and in particular to address thechallenges and needs of beneficiaries and target groups. The mainpurposes are: confirm the relevance and feasibility of the project idea(see identification phase); provide more details about technical,operational, economic, financial aspects…; prepare a financialproposal and a financing decision.

Some references for defining the theoretical concepts (3)The implementation phase The purpose is to:

• Deliver the results, achieve the purpose(s) and contribute effectively to the overall objective of the project;

• Manage the available resources efficiently; and

• Monitor and report on progress.

The Evaluation phase. Make an “assessment, as systematic andobjective as possible, of an ongoing or completed project, programmeor policy,. The aim is to determine the relevance efficiency,effectiveness, impact and sustainability.

Between the identification/formulation and implementationphase there is the financing decision

• Before making a financing decision, the donor usually conducts an ex-ante assessment of the relevance and coherence of the project. The financing decision defines the end of the formulation phase and start-up of the implementation.

Cycle of operations and Documents

Key questions on steps

• Programming: which are the priorities?

• Identification: Is the project concept relevant (in line with the needs, challenges and consistent with the policy priorities)?

• Formulation: Is the project feasible, coherent?

• Implementation: Are results being achieved (efficiently and effectively)?

• Evaluation: Have planned benefits been achieved? What are the lessons learned?

• Audit: Has there been compliance with applicable rules and laws?

Project cycle and EvalautionCriteria

Programming

Indentification

Formuation

Formulation

Implementation

Evalaution

Relevance

Coherence

Feasibility

Impact

Effectiveness Performance

Efficiency

Definitions• Relevance : the project meets demonstrated and high priority needs

• Coherence: the project is strategically aligned with the concerning policy (vertical) – the program works in synergy and complementarily with other contextual intervention (horizontal)

• Feasibility: the project is well designed and will provide sustainable benefits to target groups

• Effectiveness: the project achieves outcomes / Impact accordingly with the targets

• Efficiency: the project achieves outcomes / Impact accordingly with the targets with the minor costs and in the shorter time.

• Impact: the project is capable to contribute significantly to the change

WORKOUT n.1 (Leaking roof)

Project life cycle – Example leakingroof

Minute 22.30 https://www.youtube.com/watch?v=OsKb9YRxgt4

Mark Friedman

https://www.youtube.com/watch?v=OsKb9YRxgt4

Fix the roof with the cycle of operationIdentification(Needs assessment)

Formulation phase

Implementation

Monitoring and evaluation

II. Programming

Program(me)

• It is a Policy delivery tool to provide goods and services

• Procedures are well defined (management, monitoring, control, evaluation)

• Budget is sharply allocated

• Timing and target population are defined

• No specific beneficiary is identified

1. Description of the current situation

2. Strategy and priorities

3. Budget

4. Implementing provisions

Program: document structure

Strategy

Global ObjectivesProgramming documents set out the strategic choices for EC co-operation, on the basis of the EU’s and the country’s priorities, making possible the setting of priorities within and across sectors and the choice of appropriate aid delivery modalities (i.e. project, sector programme support and/or budgetary aid);

Specific ObjectivesSpecific objectives and expected results for each cooperation area, including any conditionalities and

the main performance and outcome indicators.

Budget

Financial envelopes for each co-operation area including, where appropriate, the indicative timing and size of each installment of the Community’s contributions;

Implementing provisions

Programmes to be implemented in pursuit of these objectives, the targeted beneficiaries and the type of assistance to be provided (e.g. macroeconomic support, technical assistance, training, investment, supply of equipment, etc). Furthermore, project ideas may be formulated and general criteria for their realisation defined (such as geographical area, most suitable partners, suitable duration of projects

Evaluating programming

Relevance

Relevance: Definition

The term RELEVANCE, in the context of an evaluation,refers to the appropriateness of the explicit objectives ofthe program in relation to the socio-economic problems itis supposed to address.

• Is the Program/ Project justified in relation to the needs?

• Can their raison d'être of the Program still be proved?

• Are the expected or unexpected effects globally satisfactoryfrom the point of view of direct or indirect beneficiaries?

Sources of information: interviews, context indicators,documents and studies

Analytical tools for relevance

SWOT

PEST

Analytical tools: PEST

• PEST analysis is a tool from business science. It is a useful tool for understanding the general feature of the Context.

• PEST is an acronym for Political, Economic, Social and Technological factors which provide a framework for reviewing a situation, or a strategy.

• It is very simple, and is a good subject for work group session or brainstorming meeting.

• PEST factors are essentially external, completing a PEST analysis is helpful prior to completing a SWOT analysis

PEst MATRIX CRITERIA

political•ecological/environmental issues•current legislation home market•future legislation•international legislation•regulatory bodies and processes•government policies•government term and change•trading policies•funding, grants and initiatives•home market lobbying/pressure groups•international pressure groups•wars and conflicts

economic•home economy situation•home economy trends•overseas economies and trends•general taxation issues•taxation specific to product/services•seasonality/weather issues•market and trade cycles•specific industry factors•market routes and distribution trends•customer/end-user drivers•interest and exchange rates•international trade/monetary issues

peST MATRIX CRITERIA

social•lifestyle trends•demographics•consumer attitudes and opinions•media views•law changes affecting social factors•brand, company, technology image•consumer buying patterns•fashion and role models•major events and influences•buying access and trends•ethnic/religious factors•advertising and publicity•ethical issues

technological•competing technology development•research funding•associated/dependent technologies•replacement technology/solutions•maturity of technology•manufacturing maturity and capacity•information and communications•consumer buying mechanisms/technology•technology legislation•innovation potential•technology access, licencing, patents•intellectual property issues•global communications

Analytical tools: SWOT

• SWOT is an acronym for Strengths, Weaknesses, Opportunities, Threats.

• A SWOT analysis is a subjective assessment of data which is organized by the SWOT format into a logical order that helps understanding, presentation, discussion and decision-making. The four dimensions are a useful extension of a basic two heading list of pro's and con‘

• Strengths and Weaknesses are internal factors , whereas

• Opportunities and Threats might be: • Obstacles or Advantages for strengths and weaknesses coming from external

factors

• The evolution in the near future

SWOT Analysis

PEST AND SWOT COMBINATION

• PEST helps the identification of SWOT factors.

• PEST assesses more generally the global situation.

• SWOT is an assessment of the more specific sector / territory or policy / project / programme.

Practical example (1) Assessment the relevance of the issues: PEST

PESTAnalysis factors

Importance / Impact/ Time frame

Political

Economical

Social

Technological

Relative Importance:

- Critical-

Important

- Un-important

- Unknown

Impact

• Very positive• Positive• Medium• Negative• Very negative

Time frame (short / long term)


PESTAnalysis factors


Political

Economical

Social

Technological


- Critical-

Important

- Un-important

- Unknown

Impact


Time frame (short / long term)

SWOT

P

E

S

T

StrengthsHere you have to locate the items that in the PEST Are short term important / criticalPositive/ very positive

WeaknessesHere you have to locate the items that in the PEST Are short term important / criticalNegative / Very

negative

OpportunitiesHere you have to locate the items that in the PEST Are long term important / criticalPositive/ very positive

ThreatsHere you have to locate the items that in the PEST Are Long term important / criticalNegative / Very negative

POLITICAL

ECONOMIC

SOCIAL

TECHNOLOGICAL

S W

T O

COMPARATIVE ADVANTAGE

STRUCTURAL GAPS

Verify the Relevance of the analysis

Verify the Relevance of the analysis

S T

W O

• Obstacles (needs)

• Potential for solutions

WORKOUT n.1 (PEST AND SWOT)


Political Economic Social Tec.

Practical example (1) Assessment the relevance of the issues: PESTPESTAnalysis factors


Political

Economical

Social

Technological


- Critical- Important- Un-

important

- Unknown

Impact


Time frame

short

long term

SWOT

P

E

S

T

StrengthsHere you have to locate the items that in the PEST Are short term important / criticalPositive/ very positive

WeaknessesHere you have to locate the items that in the PEST Are short term important / criticalNegative / Very

negative

OpportunitiesHere you have to locate the items that in the PEST Are long term important / criticalPositive/ very positive

ThreatsHere you have to locate the items that in the PEST Are Long term important / criticalNegative / Very negative

POLITICAL

ECONOMIC

SOCIAL

TECHNOLOGICAL

SWOT Analysis

SWOT Analysis

COMPARATIVE ADVANTAGE

STRUCTURAL GAPS

SWOT Analysis

ObstaclesPotential for solutions