political economy and results based financing: client’s power, voice, and the challenge of...
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Political Economy and Results Based Financing: Client’s Power,
Voice, and the challenge of monitoring
Agnes Soucat, World Bank and Gaston Sorgho, World Bank Insitute
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Results Based Financing: is it simple ?
• On the basis of the experiences of Results Based Financing presented to you.
• Which institutional and political conditions do you think have favored or hampered the development of these experiences ?
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Messages
• Services are failing poor people. But they can work. How?
• By strengthening incentives – For service providers to serve the poor– For the poor to seek services– Or both …..
• By empowering poor people to– Monitor and discipline service providers– Raise their voice in policymaking
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Outcomes are worse for poor peopleDeaths per 1000 births
Source: Analysis of Demographic and Health Survey data
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How are services failing poor people?
• Public spending usually benefits the rich, not the poor
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Expenditure incidenceHealth Education
Source: Filmer 2003b
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• Public spending benefits the rich more than the poor
• Money/goods/people are not at the frontline of service provision– Public expenditure tracking results on
what reaches or is at the facility level
How are services failing poor people?
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Nonwage funds not reaching schools and health services: Evidence from PETS (%)
Country Mean
Ghana 2000 49
Madagascar 2002
55
Peru 2001 (utilities)
30
Tanzania 1998
57
Uganda 1995 78
Zambia 2001 (discretion/rule)
76/10
Source: Ye and Canagarajah (2002) for Ghana; Francken (2003) for Madagascar; Instituto Apoyo and World Bank (2002) for Peru; Price Waterhouse Coopers (1998) for Tanzania; Reinikka and Svensson 2002 for Uganda; Das et al. (2002) for Zambia.
Country Mean
Chad 2004 45
Senegal 2003
40
Cameroon 2004
30
Rwanda 2003
60
Source: World Bank
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Access to primary school and health clinics in rural areas
Distance to nearest primary school (km)
Distance to nearest medical facility (km)
GNI per capita
Poorest fifth
Richest fifth
Ratio Poorest fifth
Richest fifth
Ratio
Chad 1998 250 9.9 1.3 7.6 22.9 4.8 4.8
Nigeria 1999 266 1.8 0.3 5.5 11.6 1.6 7.1
CAR 1994-95 819 6.7 0.8 8.9 14.7 7.7 1.9
Haiti 1994-95 336 2.2 0.3 6.4 8.0 1.1 7.2
India 1998-99 462 0.5 0.2 2.3 2.5 0.7 3.6
Bolivia 1993-94 1004 1.2 0.0 - 11.8 2.0 6.0
Morocco 1992 1388 3.7 0.3 13.1 13.5 4.7 2.9Source: Analysis of Demographic and Health Survey data. Note: GNI per capita is in 2001 US$. Medical facility encompasses health centers, dispensaries, hospitals, and pharmacies.
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• Public spending benefits the rich more than the poor
• Money/goods fail to reach frontline service providers
• Service quality is low for poor people
How are services failing poor people?
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Percent of staff absent in primary schools and health facilities
0
10
20
30
40
50
Bangladesh Ecuador India Indonesia Papua NewGuinea
Peru Zambia Uganda
Primary schools Primary health facilities
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A framework of relationships of accountability
Poor people Providers
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A framework of relationships of accountability
Poor people Providers
Policymakers
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Client-provider
Strengthen accountability by:
• Choice
• Participation: clients as monitors
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Which mechanisms reinforce client power?
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Which mechanisms reinforce client power?
• Money power– User fees – Bamako Initiative– Micro-insurance– Conditional Cash Transfer– Co management, participation
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Impact of social marketing on ITNs ownership
0
10
2030
40
50
60
7080
90
100
%
Poorest 2nd Qtl 3rd Qtl 4th Qtr Richest
BaselineAfter 3 yearsAfter 6 years
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Conditional Cash transfers
Providing resource to the poor to access services
• Mexico PROGRESA: decrease in number of illness episode among children
• Honduras: large increase (15-20%) of intake of antenatal care and growth monitoring
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Poor people
Policymakers
A framework of relationships of accountability
Providers
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Citizen-policymaker
• Political economy of public services
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Ah, there he is again! How time flies! It’s time for the general election already!
Why don’t services work for poor people?
By R. K. Laxman
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PRONASOL expenditures according to party in municipal government
Source: Estevez, Magaloni and Diaz-Cayeros 2002
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Citizen-policymaker
• Political economy of public services• Formal channels• Importance of non-formal channels• Role of information
– Citizen report card (initiatives in Vietnam, Indonesia, Philippines)
– Publicizing textbook distribution in Philippines—and engaging communities as monitors
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Schools in Uganda received more of what they were due
Source: Reinikka and Svensson (2001), Reinikka and Svensson (2003a)
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A framework of relationships of accountability
Providers
Policymakers
Poor people
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Policymaker-provider
• Contracting
• Nature of provider
• “Hard to monitor” versus “Easy to monitor”
• Information for monitoring
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What not to do
• Leave it to the private sector
• Simply increase public spending
• Rely on technocratic solutions only
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Of course we have progressed a great deal, first they were coming by bullock-cart, then by jeep and now this!
What not to do…
technocratic solutions…
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What is to be done?
• Tailor service delivery arrangements to service characteristics and country circumstances
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Short and long routes of accountability
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Poor people Providers
PolicymakersContracts-Purchasing
Selection of providers
Monitoring
Self Regulation
Legislative framework
Citizens’ Monitoring
Participatory budgeting
Coalitions
Money power Co-management
Monitoring Litigation
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Poor people Providers
Policymakers
Donors and service delivery: outside of the triangle
Global funds
Community Driven Development
Project Implementation
Units
Making Services Work for Poor People
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What are we up against when attempting to improve aid efficiency?
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What is to be done?
• Strengthen mechanisms of accountability
• Tailor service delivery arrangements to service characteristics and country circumstances
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Not One Size Fits All
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What is to be done?
Tailor service delivery arrangements to service characteristics and country circumstances
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So what about health services
Multiple outputs, different nature of services
-Population Oriented services
-Family Oriented services
-Individual Oriented services
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• Individual Oriented clinical care:– Large heterogeneity of
needs– Asymmetry of information– Conflict of interest and
supply driven demand– Difficult to monitor by both
poor users and government:
– Eg diagnostic and treatment of
• Pneumocystis carinii pneumonia
• Cerebral malaria• Toxemia
Complex services….
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• Population Oriented services:
- Homogeneity of needs
– Lower Asymmetry of information because of standards
– Easier to to monitor by government/policymakers:
– Eg :
• Systematic screening
• Expanded immunization
• Population treatment (ivermectine)
• Spraying
• Micronutrient supplementation
Services can be made less complex through standardization
• Individual Oriented clinical care:– Large heterogeneity of needs
– Asymmetry of information
– Conflict of interest and supply driven demand
– Difficult to monitor by both poor users and government:
– Eg diagnostic and treatment of • Pneumocystis carinii pneumonia
• Cerebral malaria
• Toxemia
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• Family Oriented services:
- Needs heterogenous
- More amenable to information
– Easier to to monitor by users:
– Eg :
• Information and peer support for safe sex
…or through empowerment ..and coproduction
• Individual Oriented clinical care:– Large heterogeneity of needs
– Asymmetry of information
– Conflict of interest and supply driven demand
– Difficult to monitor by both poor users and government:
– Eg diagnostic and treatment of • Pneumocystis carinii pneumonia
• Cerebral malaria
• Toxemia
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Easy of difficult to monitor
• Three types of monitors:
–clients
–Policymakers:
–Self Regulation of providers
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Who can monitor what
• Clients can monitor services that are transaction intensive, discretionary and with little asymmetry of information– Eg: use of soap. Handwashing, bed nets,
condoms, presence of teachers, presence of nurses, cleanliness of services, quanity and taste of water etc
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Who can monitor what
• Policymakers can monitor services that are standards and non transaction intensive even with high assymetry of information – E.g: water access, learning of kids, diseases
surveillance, quanity and quality of standards services (immunization, antenatal care)
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Who can monitor what
• Self regulation need to develop when services are both transaction intensive, discretionnary and with high assymetry of information– -eg clinical care: only doctors can monitor doctors,
engineers engineering
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No One Size Fits
All
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Eight sizes fit all?
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Clientelistic politics• Can be measured: benefit incidence• Dynamic• Political process complex: both pro-
poor and clientelistic streams• Working at the margin: opportunities
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Eight sizes fit all?
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Homogeneous
• 1. “Externality”
• Public Good: eg air and water quality,
• Externalities: e.g communicable diseases, curriculum, roads, water access
• Network externalities: ef electricity grid
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Homogeneous
2. Common needs eg
• Administrative requirements
• Antenatal care/ deliveries/ immunization
• School exams/ requirements
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Homogeneous
3. Common destiny eg
• Policies
• Legal framework
• Standards
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Eight sizes fit all?
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Eight sizes fit all?
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Eight sizes fit all?
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Eight sizes fit all?
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Eight sizes fit all?
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Eight sizes fit all?
Making Services Work for Poor People