Background

The Asia-Pacific region , has in the last two decades, witnessed unprecedented growth, development and growing domestic resources in a rapidly evolving development finance landscape. The level and drivers of economic growth across countries in the region as well as the lingering effects of global economic crises (2008-09) contribute to the simultaneous change occurring in both the domestic and the external development finance landscape. The sources of development finance in the region relative to other regions have evolved beyond government resources and traditional Official Development Assistance (ODA).

Domestic taxes and cross-border private flows are playing a greater role. Domestic tax revenue is increasingly becoming a key source of funding for development, in particular for middle income countries (MICs) richly endowed with natural resources. However, for some middle and Low Income Countries (LICs) and some Least Developed Countries (LDCs), their narrow tax base and limited options to raise domestic revenue are real challenges. Available data for the period 2003-2011, show that tax revenue as a per cent of Gross Domestic Product (GDP) for most countries in the region are below global averages: high income countries (38%), MICs (25%), and in low income countries (less than 20%).

External resources to the region are also increasing. Foreign Direct Investment (FDI), portfolio equity, long-term debt, short-term debt, remittances, South-South Cooperation (SSC), philanthropy and ODA are all playing a role with different added value for different elements of development planning and budgeting. This is true for the region as a whole, for every sub-region, and for most countries individually. Between 1990 and 2011, ODA as a share of total external finance to the region has significantly reduced from 14 per cent of US$227 billion (1990) to 3.4 per cent of US$120 trillion (2011). This share gets even smaller (0.2% for 2011) when domestic development finance sources are added. Many countries including a number of LDCs, Pacific Islands, and MICs maintain that development co-operation is still important and has a continued contribution to make towards their development paths. Afghanistan, Pakistan, Viet Nam, and India remain in the top ten recipients of ODA. Combined, these changes are creating increasing complexity for development planning, public investment programming, budgeting and in coordinating the various activities of various actors of development.

Recognising that this will look different in different country contexts, the AP-DEF has begun building the evidence from a ‘country up’ approach to capture the changing landscape at a regional level. As part of the region’s readiness for Post-2015, the Asia-Pacific Development Effectiveness Facility (AP-DEF) is helping countries from the region better understand the potential implications these may have for development partnerships and financing sustainable human development, beyond 2015.

The AP-DEF Secretariat has developed the Development Finance and Aid Assessment (DFAA) as an innovative tool to map the different finance inflows to their countries in recent years and to assess future flows and their feasibility. It also assesses the policy, legal and institutional framework governing different sources of development finance and cooperation, the technical systems and tools, and the human resource capacity engaged in accessing, managing, coordinating, delivering and reporting on each flow. In particular, the DFAA helps articulate the added-value that each source can bring in an increasingly complex and diverse landscape.

Three countries (Papua New Guinea, the Philippines and Viet Nam) have conducted DFAAs and two (Lao PDR and Bangladesh) are currently underway. Each country has adapted the generic DFAA methodology to reflect their policy context and questions and the significance of the different sources in funding their current or next medium-term national development plans, Post-2015 priorities and/or LDC graduation strategy. More countries from the region and beyond have shown interest in conducting a DFAA.

At this juncture, and prior to more countries conducting Development Finance and Aid Assessments, UNDP Asia-Pacific Regional Centre as the AP-DEF Secretariat, sees the need to undertake a methodological review of the DFAA. Therefore UNDP seeks to engage a short-term consultant to undertake a DFAA review.

Duties and Responsibilities

The purpose of this assignment is twofold: to review the DFAA methodology, key findings, conclusions and recommendations and to produce a DFAA Methodological Note and a Discussion Note: Development Finance and Aid Assessment Review – Lessons for Future DFAAs.

The DFAA Methodological Note and Discussion Note: Development Finance and Aid Assessment Review – Lessons for Future DFAAs will serve as key documents for the Post-Mexico Asia-Pacific Regional meeting in Bangkok, end of September 2014 and to inform a technical discussion on development finance and aid in a Post-2015 era. The DFAA Methodological and Discussion Note would be used for future DFAAs by interested countries from the region and beyond.

Scope of Work

Review the Development Finance and Aid Assessment (DFAA) methodology, key findings, conclusions and recommendations for Papua New Guinea, the Philippines and Viet Nam:

a. Review the generic DFAA Methodology (see Annex A1), how it has been adapted in each country study (see Annex A2 – A6) to reflect their specific policy context. The review should consider ten key elements of the DFAA methodologies and country DFAA reports:

• Rationale Policy Context: policy questions, analyses, a country is faced with;
• Coverage: range of development finance sources or inflows;
• Time-frame: past/current/future inflows;
• Focus: Development Cooperation Quantity, Quality or a Mixed Focus;
• In-depth Case Studies: Rationale and Selection Criteria;
• Institutions: Role and Arrangements;
• ODA Value Adding: Nature and Scope;
• Key Findings;
• Conclusions;
• Key Recommendations.

b. In undertaking (a) above, identify what has worked or not worked so well in the five countries that have conducted DFAAs. Consider key emerging lessons including key findings and recommendations that each of the countries have found useful and have considered in their national or sub-national policies and have commenced with implementation of the recommendations.

c. The Development and Finance Expert will be required to conduct interviews via skype or telephone with the main partner country counterpart agencies for each country DFAA; ADB Manila Regional Office and Country Offices in Lao PDR and the Philippines; Development Initiatives (Nairobi Office); UNDP Country Offices in the 5 DFAA countries and the UNDP Bureau Policy and Programme Support (BPPS) based in New York.

d. Desk-based literature review of the findings, conclusions and recommendations as well as methodologies used in similar studies including an analysis of strengths and weaknesses of key components of their methodologies. Similar studies to be reviewed to include:

• UNDP Bureau of Development Policy (BDP) in Rwanda and Ethiopia on innovative financing for development and prospects of non-traditional sources of financing; 
• Overseas Development Institute (ODI) studies on age of choice; and
• Development Initiatives studies in four African countries (Kenya, Ghana, Mozambique and Burundi) on the implementation of the Millennium Development Goal 8 (MDG8) as part of evaluating progress on the Global Partnership for Effective Development Cooperation (GPEDC), post Busan. 

e. Draw out and capture lessons learned and strengthen the DFAA methodology by drawing on (a), and (b) and elements from the methodologies of other similar studies and analysis in (c).

Produce a Development Finance and Aid Assessment Methodological Note and a Discussion Note: Development Finance and Aid Assessment Review – Lessons for Future DFAAs:

Use the analysis and findings from the review in (1) above to develop: 

• a DFAA Methodological Note; and
• a Discussion Note: Development Finance and Aid Assessment Review – Lessons for Future DFAAs.

Include in the DFAA Methodological Note, options (including templates) of the DFAA methodology and DFAA TIPS for different/specific country contexts such as fragile states, aid dependent countries or highly indebted poor countries, etc.

Produce two power point presentations: i) on the DFAA methodological review process, key features of the DFAA Methodological Note including options for different country context, and related strength of each feature; and ii) on the key lessons highlighted in the Discussion Note: Development Finance and Aid Assessment Review – Lessons for Future DFAAs and an overview of the DFAA review process.

Remark:

Annexes A1-A6, and B1-B3 will be made available to the successful candidate upon taking on the work.

Competencies

• Excellent knowledge of economic and development cooperation issues of developing countries in Asia and the Pacific, including development finance challenges and related fields;
• Public financial management expertise and experience;
• Strong analytical skills;
• Excellent ability to synthesize information and analysis from a number of sources;
• Ability to conduct interviews with relevant stakeholders proactively and appropriate to the country context;
• Uses information and internet technology applications effectively as a tool and resource;
• Ability to work independently, against tight deadlines;
• Excellent ability to write clearly, insightfully and persuasively in an accessible, journalistic style;
• Excellent communication skills including presentations, networking and interpersonal skills;
• Proven ability to persuade and influence others to cooperate;
• Ability to work independently, against tight deadlines.

• Display culture, gender, religious, race, nationality and age sensitivities and adaptability;
• Highest standards of integrity, discretion and loyalty.

Required Skills and Experience

• Master's Degree in International and Development Studies, Economics, Finance or related area.

• At least 10 years of relevant professional work experience;
• Previous experience in producing or facilitating development policy-related knowledge products;
• Specialist knowledge of development issues and particularly development cooperation, public finance, global frameworks for financing development, development, economics, and the Millennium Development Goals progress in Asia and the Pacific, and the Post-2015 Development Agenda Process;
• Excellent knowledge of economic and development cooperation issues, development finance challenges and related fields of developing countries globally and in particular in Asia and the Pacific;
• Experience in conducting reviews and/or evaluations of development programmes, reports and analysis in related areas and produced high quality review or evaluation reports;
• Expertise in developing high quality training, instructive or guideline manuals in related areas;
• Ability to use information and internet technology applications effectively as a tool and resource.

• Proficiency in English with advanced command of speaking and writing.

• 25 August - 24 November 2014.

• Home-based with possibility of travel to Asia-Pacific countries.  

• The Development Finance and Aid Expert will report directly to the Governance and Development Effectiveness Specialist on the work progress.  

• Cover Letter: Brief motivation letter explaining why the applicant thinks is an outstanding candidate for the job.
• Financial proposal: indicating all-inclusive lump sum fee in USD;
• Personal CV and/or signed P.11: including past experience in similar projects and the name and contact details of 3 references.

Financial Proposal:

The financial proposal will specify the lump sum professional fee in USD and payments will be made to the Individual Consultant based on the number of days worked and upon completion of the deliverables. In the event of unforeseeable travel, payment of travel costs including tickets, lodging and terminal expenses should be agreed upon, between the respective business unit and Individual Consultant, prior to travel and will be reimbursed.

Evaluation:

The award of the contract will be made to the individual consultant whose offer has been evaluated and determined as:

• Responsive/compliant/acceptable;
• Having received the highest score out of a pre-determined set of weighted technical and financial criteria specific to the solicitation.

Technical Criteria weight; 70%

• Experience related to services: 50 points;
• Expertise & Availability: 50 points;

Expertise & Availability: 30 points.

Financial Criteria weight; 30%

Only candidates obtaining a minimum of 350 technical points would be considered for the Financial Evaluation.