Sida Peer Review Check-up: Note to Management

Publication Date: Apr 2006
Published by: Consultative Group to Assist the Poor (CGAP)
Document Type: Paper

View this Document   Email this Document

How can Sida improve its effectiveness in financial systems development?

This note to the management of the Swedish International Development Cooperation Agency (Sida) gauges the progress it has made since the CGAP sponsored Microfinance Donor Peer Review. The note makes additional recommendations for improving Sida’s effectiveness in financial systems development (FSD).

The note states that:

• CGAP conducted a peer review for Sida in May 2002 and presented recommendations to the management.
• At the request of Sida, CGAP conducted a peer review check-up in April 2006; this note summarizes the results from the check-up.
• During the check-up, the reviewers interviewed 20 Sida staff from across numerous departments.

The note then states that:

• Sida implemented peer review recommendations in the areas of:
  • Strategic clarity,
  • Staff capacity,
  • Accountability for results,
  • Appropriate instruments,
  • Relevant knowledge management.
• The check-up in 2006 analyzed each of these components.
• Sida staff’s self-assessment revealed that the Agency was better equipped in 2006 to support microfinance and FSD than it was in 2002.

The check-up team findings include:

• Sida is moving in the right direction to achieve its goals of promoting inclusive financial systems.
• Its comparative advantage in microfinance and FSD include:
  • Flexible grant funding;
  • Ability to fund regionally and globally;
  • Willingness to take risks;
  • Experience in microfinance.

The note concludes by urging Sida management to clearly define its comparative advantage in microfinance and FSD, consolidate its portfolio, and align its operations closely with its comparative advantage.