governance reform: bridging monitoring & action framework patterns reforms april 28th.2011
TRANSCRIPT
Governance Reform:Bridging Monitoring & Action
Framework Patterns Reforms
April 28th.2011
The National Governance System Framework
Governance and corruption are not the same thing.
Governance Trajectories
Some Governance IndicatorsTypes of Indicators
Broad Intermediate Specific
Dimension ofGovernance
Bureaucratic capability
State Effectiveness (KK)
Quality of budget and financial management (CPIA 13);
Quality of public administration (CPIA15)
PEFA public financial management performance indicator set
State oversight institutions
Voice and accountability (KK);
Rule of Law (KK);Executive constraints
(Polity IV)
Property rights and the rule of law (CPIA12)
Global Integrity Index
Governance and poverty reduction outcomes
Control of corruption (KK);
Quality of the business environment and service provision (DB&ICS)
Two Approaches to Measuring Governance
Broad and Aggregated: Broad measures to measure governance at more aggregated levels. Help reveal systematic patterns – and basis for monitoring trends over time.
Specific and Disaggregated: Specific measures of quality of key governance subsystems, including using “actionable indicators” to benchmark and track reforms.
Way Forward: Match the governance indicator with the purpose of measurement and monitoring; intensified investment in specific indicators
Governance patterns: East Asia
Patterns: Middle East and North Africa
Governance patterns: Africa
Patterns: East Europe and Central Asia
Patterns: Latin America
REFORMS
• Strengthening Bureaucratic Quality
• Strengthening Checks and Balances
• Initiating Reform from the Front-line
Strategy – Strengthening Governance Institutions I
Five Common Themes
1. Understand the politics: why are a country’s governance strengths and weaknesses what they are? (Kenya vs Sierra Leone; Bangladesh)
2. Focus narrowly, embrace momentum3. Many opportunities for improving transparency – be proactive everywhere4. Monitor progress, using specific indicators5. Initiate dialogue on path to long-run sustainability
PFM operations perform satisfactorily regardless of governance starting
point, but ACSR operations are successful in stronger settings
All projects
CPIA (Q16)
< 3.0
CPIA (Q16) from 3.0 to 3.5
CPIA (Q16)
Greater or equal to 3.5
No. of projects
Projects with
Satisfactory or better
(%)
No. of projects
Projects with
Satisfactory or better (%)
No. of projects
Projects with
Satisfactory or better (%)
No. of projects
Projects with Satisfactory or better (%)
PFMPFM 39 85% 15 87% 18 83% 6 83%
ACSRACSR 24 58% 11 36% 9 78% 3 100%
Trends in PFM can be monitoredNet Change in HIPC Tracking Indicators, 2001-2004
2
6
1
6
7
Decline in categories
Decline in categories
No change Improvementin 1-2
categories
Improvementin or morecategories
8
7
6
5
4
3
2
1
0
Improving PFM – A Platform ApproachCambodia – Sequence of Platforms
Enables more accountability for performance management
Enables a basis for accountability
Enables focus on what is done with money
Platform 1A credible budget delivering a reliable and predictable resource to budget managers
Platform 1A credible budget delivering a reliable and predictable resource to budget managers
Platform 2Improved internal control and public access to key fiscal information to hold managers accountable
Platform 2Improved internal control and public access to key fiscal information to hold managers accountable
Platform 3Improved linkage of priorities and service targets to budget planning and implementation
Platform 3Improved linkage of priorities and service targets to budget planning and implementation
Platform 4Integration of accountabilityand review processes forboth finance andperformance management
Platform 4Integration of accountabilityand review processes forboth finance andperformance management
Broad Activities
• Integration of budget (recurrent & capital budgets)
Strengthen macro and revenue
Forecasting
Streamline spending processes
Broad Activities
Re-design
Budgeting
Classification system
Initial design of FMIS for core business processes
Strengthen external audit and define internal audit function
Broad Activities
Re-design budget cycle (e.g. MTEF)
Pilot program based budgeting & budget analysis
Further fiscal
Decentralization
Broad Activities
Full design of FMIS
Develop IT
Management
Strategy
Initial design of asset register
Strengthening administrative capability Some initial lessons
• Ambitious administrative reforms work only in those few countries with strong political commitment and coherence
• Latvia: EU accession market competitive pay, meritocracy, comprehensive administrative restructuring
• Tanzania: pay decompression; performance-based agency reforms
• Even in these countries, implementation was difficult
• In most countries, a more modest administrative reform agenda is more likely to get results: example of Albania
• Pay reform and meritocracy targeted at top 1300 civil servants• Underpinned by independent appeals body• Beneficiaries successfully resisted political push-back
Building the Demand SideA constellation of checks and balances
Broader International Community
Civil Society
Media
Judiciary
Legislature
Subnational governments and autonomous oversight agencies
Executive
Strengthening Justice Three emerging lessons
Incentives for effective judicial system:•Incentives of citizens and firms to use•Incentives of politicians to refrain from intervening•Incentives of judges to carry out their rolesJudicial reform requires enabling institutional environmentReform needs to address political obstacles
Successful implementation remains elusive
Independence without accountability results in poor performance
• ECA: independent courts, w/o accountability, result: court corruption
Decentralization and Local Governance1. Effective decentralization needs:
– Clear allocation of responsibilities between central and local governments
• Assignment of service provision responsibilities• Assignment of fiscal resources (including local tax base)• Central fiduciary and performance oversight over local
– Capacity of local governments (and central counterparts– Downward accountability between local governments and citizens
=> High risk of institutional limbo
2. Community Local governmentOpportunity for cumulative gains?
Governance --the Many Meanings of ‘Demand-Side’ Reform
Extent of Co-operation with State Institutions Required for Effectiveness
Marginal Some Significant
Balance between state and civil society counter-parts
Mostly state
Capacity building for:Judiciary;Parliament ; Supreme audit institution
Mixed Foster transparency and participation in policymaking and service provision
Support for:Freedom of Information Act;Asset Declaration;Enabling legal framework for civil society organizations;Enabling business environment;
Mostly civil society
Work with civil society advocacy and watchdog organizations;Foster development of competitive private sector
Support media reformSupport community-based initiatives
Strengthening checks & balances through transparency
• Strengthening national-level transparency• Supply: Building statistical capacity - Marrakech action plan for statistics• Information availability: Freedom of Information Act; support for media• Participatory poverty reduction strategies (PRSPs)
• Strengthening participation and transparency• Citizen Scorecards in Bangalore• Rajasthan India: leverage FOIA to compare official data with actual
experiences of hospital patients and food rationing recipients• Philippines: citizen monitoring of textbook distribution• Tanzania: local community tracking of health and education spending• Transparency & competition in public procurement, e-procurement
Governance and Poverty Reduction: Orchestrated Imbalance
A Governance Virtuous Spiral?
Performance of service provision and regulatory agencies agencies
Performance of central governance agencies
Engaging citizens, firms and communities
Governance from the Front-line I
Getting the Priorities Right