the world bank prem public sector governance the “tools of the trade”: an overview of the world...

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PREM Public Sector Governance

The “Tools of the Trade”:The “Tools of the Trade”: An An OverviewOverview of The World Bank’s of The World Bank’s

Governance Diagnostic and Assessment Governance Diagnostic and Assessment InstrumentsInstruments

Presented to:Presented to:

PREM – WBI Core Course onPublic Sector Governance &Anticorruption

Presented by:Presented by:

Francesca RecanatiniSenior EconomistWorld Bank Institute (WBIGP)www.worldbank.org/wbi/governance

February 14-17, 2005February 14-17, 2005

http://www.worldbank.org/wbi/governance

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PREM Public Sector Governance 3

Objective

Which are the key elements for a governance assessment?Which empirical tools and approaches are already available?How can we select among them?How can such assessments be used for policy purpose?

How to choose among governance tools?

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Key starting points

1. What is the purpose of the assessment?

Research and analysisAwareness raising Policy and Action planningCapacity buildingMonitoring

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2. What is the focus of the assessment?

Governance as a wholeCorruption Performance of a specific agency/sectorQuality of a specific public service delivered

Key starting points

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Suppose we have determined ...

The final purpose of the assessmentThe focus of the assessment

What next?

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Existing Empirical ToolsBEEPSIGRPublic Official surveysPETsQSDSScore CardsInvestment Climate SurveysEC Audits

PERCFAACPARGACCase StudiesHIPC Exp. TrackingROSC

www.worldbank.org/wbi/governance/assessing

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Governance Assessment

Analysis& use

Empirical tools & sample

Conceptual dimension

Implementation process

Use a working framework …

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Conceptual dimensionClear definition of the variable we focus on and its manifestationsTranslation of the definition into observable and measurable componentsSelection of methodological approachUnderstanding of the links between governance and

Performance outcomesDevelopment outcomes

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Linking the Tools to the Blueprint

PERHIPC E.T.ROSCCPAREC Audits

CFAA

IGR & GAC & Governance Cross-Country Ind.

BEEPS & INVEST.CLIMATE

SCORE CARDS

QSDS

Public Official Surveys

Political System- Cam paign Finance- Recruitm ent/Patronage

Executive Branch- Core Accountability M echanisms- Key Sectors: Revenue, Expenditure & Regulatory Agencies

Legislative Branch- Parliam entary O versight- Parliam entary Safeguards

Judicial Branch- Judicial Independence- Judicial Predictability- Prosecution & Trial of Corruption Cases

Sub-National Governm ent- Transparency and Responsiveness- Accountability M echanisms

Users- Households- Enterprises

Service Delivery Agencies- Accountability M echanisms- Accessibility and Responsiveness

PETs

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Conceptual dimension, cont.

Finding answers may require single or multiple methods and data formsThe methodological approach can be a combination of different methods (for example, qualitative, quantitative or mixed)To each method corresponds a set of empirical tools that we can useData can also be qualitative and/or quantitative

For more information on alternative methods www.worldbank.org/wbi/governance/assessing

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Purely QualitativeMethods: - Focus Group Discussions, interviews,

case studiesProblems:- Non-representative- Lack of counterfactuals, causality is

unclear- Small Samples Advantages- Open-Ended- Context, History

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Problems:- Structured Questions- “Top-Down”- Reflect Biases of ResearcherAdvantages:- Large Samples- Representative Samples- Clear Methods for Inferring

Causality

Purely Qualitative

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Mixed MethodsTake Best of Both Worlds - Advantages1) Quantitative Questions Informed by

Qualitative Investigation.2) Hypotheses Generated by Qualitative

tested for Generalizability by Quantitative.

3) Depth supplemented by breadth – “thick” understanding with generalizability.

4) History, Context, Process and Identifying Causal Links

5) Participation Remember!

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Mixed Methods – Problems

High CostTime ConsumingLarge Teams – Coordination ProblemsUsually poorly done – more research required to understand how methods compare

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Empirical dimension

Focus on institutions vs. individualsExperiential vs. perception dataOne vs. many types of respondentsStandard vs. customized empirical toolsDefinition of sample and field work detailsOpen end vs. close end questions

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CitizensCitizens

Government Government OfficialsOfficials EnterprisesEnterprises

Civil SocietyCivil Society

Private Sector

Private Sector

The State

The State

Linking the Tools to the Respondents

PETQSDSPERCFAACPAR

Score cards

GACIGR

BEEPSINV. CL.

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Process/Capacity Building dimension

To increase impact and sustainability:Consultative and participatory approach to discuss purpose, use and features of the assessmentEngage local NGOs and academic institutions to adapt/revise toolsPublic dissemination of resultsJoint design of policy recommendations

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Governance Assessment

Enhanced local

capacity

Greater consensu

s

Knowledge for policy

and/or research

Broader awarenes

s

Measuring governance: possible outcomes

Internet, radio

Policy dialogue

Focus groups

Workshops

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Where we are

We defined our objectiveWe identified a tool and a methodWe defined the sampleWe specified the details of the field workWe defined the process

What next?

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Analytical and Policy dimension

The use of data to identify an issuemeasure a phenomenonunderstand a processcompare experiencesevaluate constraintsquantify costs and benefitslink effect to a causeevaluate policy choices

Focus on links between governance manifestations and:

- Quality of services

- Growth - Public

sector characteristics

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Empirical analysis – a word of caution

The data has to handle with care to interpret correctly the resultsKey elements:

Characteristics and size of sampleModus of data collectionObjectiveness of the dataRigor of the approachMargin of errorSignificance

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Key dimensions for governance analysis1. Identify both weak institutions (in

need of reform) and strong institutions (example of good governance)

2. Unbundle corruption by type – administrative, capture of the state, bidding, theft of goods and public resources, purchase of licenses and regulations

1. Identify both weak institutions (in need of reform) and strong institutions (example of good governance)

2. Unbundle corruption by type – administrative, capture of the state, bidding, theft of goods and public resources, purchase of licenses and regulations

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3. Assess the cost of each type of corruption on different groups of stakeholders

4. Identify key determinants of good governance

5. Develop policy recommendations

Key dimensions (cont.)

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An example – Peru 2002

Issue: the government wanted to monitor progress in terms of

Transparency of public administration activitiesCivil society “participation” and voiceQuality of public services

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Peru 2002, cont.

Purpose of assessment: monitoringFocus of the assessment:

TransparencyCitizens’ “Participation” and VoiceQuality of public services

What next?

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Purpose of assessment: monitoringFinal users: government and civil societyKey feature:

Comparability across timeAbility to identify progresses

Type of information needed: agency-specificApproach: objective, and based on citizen’s feedback

Peru 2002, cont.

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Conceptual dimensionTransparency in the management of resourcesQuality of basic health and education servicesQuality of complaint and feedback mechanisms

Empirical Tool Score card/Questionnaire to householdsFocus on agency-specific informationObjective, experiential dataClose-end questions

Peru 2002, cont.

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Process/Capacity building:Partnership between WBI and with National Statistical Office on methodological issuesData and results publicly available

Analytical dimensionMonitoring of indices’ performance over timeLink between indices of performance and measures of poverty

Peru 2002, cont.

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Peru 2002 – Decisions taken

To develop the following yearly indicators:

Index of transparency and civil society participationIndex of quality of public services

To focus on households/users onlyTo promote a partnership between the National Statistical Agency and citizens

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Governance and A-C diagnostic surveys

A demand-driven process to improve governance, build local capacity and consensusKey elements: participation, transparency and analytical rigorOutcomes: greater local capacity, new policy actors, baseline governance data, and action plan for policy reform

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Challenge: poor governance and corruption

1. Establishment of Steering Committee

2. Diagnostic surveys + analysis

3. Draft of the NAS

4. Public dissemination + discussion

5. Revision of the NAS

6. Implementation by Government

7. Monitoring and Evaluation of NAS

WB

I T

ech

nic

al A

ssis

tan

ce

Key Partnership: Government + Civil Society

Country Implemented

The process

GuatemalaHighly fragmented civil societyJoint effort to build consensus and focus on rigorous approach

Sierra LeoneStrong commitment (civil society, state, donors) => surveys and report within a year. Results will be used for Institutional Reform Loan

HondurasCNA: report and strategy to newly elected gov (January 2001); integration of strategy in the 2002-2006 government plan

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Governance Variables for Selected Countries (View of the Firm, EOS 2003) - Percentage Firms Reporting Low Governance

0

20

40

60

80

100

Per

cen

tage

Fir

ms

(%)

Bolivia Costa Rica Ecuador Guatemala Nicaragua Paraguay

Source: EOS (firm survey), 2003. Y-axis displays percentage of firms who reported low Governance (1-3) in each governance dimension.

Bad

Good

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Extent of corruption

0% 20% 40% 60% 80%

% of public officials report frequent publicfunds mis-management

% of public officials report frequentpurchase of positions in their institutions

% public officials report frequent cases ofcorruption in public administration

% firms report bribes used frequently inpublic services

% users report bribes used frequently inpublic services

% firms report bribes used frequently inpublic contracts

Peru Colombia Honduras Ecuador

(Various countries, 2001)

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National and municipal agencies are ridden by different types of corruption

(based on public officials' responses, a Latin American country, 2001)

0

5

10

15

20

25

30

35

Irregula use ofpublic

resources

Bribes to obtainpublic contracts

Bribes tochange a legal

decision

Bribes to obtaina public service

% r

epor

tin

g th

at t

his

for

m o

f co

rru

pti

on is

ve

ry f

req

uen

t

Municipal agencies National agencies

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Bribes and Quality of Service in Public Sector

(as reported by public officials in Honduras, 2001)

0 0.05 0.1 0.15 0.2 0.25 0.3 0.35

% reporting bribes paid to obtain public services

% reporting purchase of positions in theirinstitutions among superiors

% reporting purchase of positions in theirinstitutions among co-workers

% reporting public funds mismanagement isfrequent

% of public contracts awarded because bribeswere paid

Executive Judicial Legislative Municipal

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0

10

20

30

40

50

60

70

80

90

% th

at r

ate

as im

por

tan

t ob

stac

le

Cost involved Educational system notupdated

Teachers' professionalcapacity

Inadequate infrastrustureand equipment

Households' opinion: obstacles to good education

Bo Bombali SL

c

Quality of education by district(Sierra Leone 2003)

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Obstacles to using courts in Zambia

(as reported by households and firms)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

% o

f re

spon

dent

s ag

reei

ng th

at

the

obst

acle

is v

ery

impo

rtan

t

Small Medium Large lowincome

middleincome

highincome

Too long the process

Court decisionsinfluenced by corruption

Gratifications

Businesses Households

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Percentage of household income spent on bribes to obtain services, by income status (as reported by households), Sierra Leone, 2003

0% 5% 10% 15% 20%

Public health services

Public education services

Income Tax Department

Judges/Courts officials

Municipal/Dist. Councils

Surveys and Lands

percentage of household income spent on bribeshigh income

middle income

low incomeThe thin lines represent margins of error (or 95% confidence intervals) for each

Corruption increases inequality

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The costs of corruption(Investment Climate Survey, Guatemala, Honduras

and Nicaragua, 2003)

0

1

2

3

4

5

6

7

8

9

(% o

f ex

pen

dit

ure

)

Cost of security Cost of bribes

Guatemala Honduras Nicaragua

As reported by managers

Costs of bribes by firm size, Guatemala

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

Large Medium Small Micro

Costs of security by firm size, Guatemala

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

Large Medium Small Micro

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The costs of corruption(Investment Climate Survey, Guatemala,

Honduras and Nicaragua, 2003)

0

2

4

6

8

10

12

Guatemala Honduras Nicaragua

MicroSmallMediumLarge

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Cost of Corruption:discouraged users by service

0% 5% 10% 15% 20% 25%

Municipal and District Councils

Public education services

Public health services

Sierra Leone Roads Transport Authority(RTA)

Sierra Leone Housing Corporation(SALHOC)

Proportion of head of households reporting that they decide to not conduct procedures with these institutions because they couldn't pay the unofficial costs

Sierra Leone Housing Corporation

0% 10% 20% 30%

high incomemiddle incomelow income

0% 10% 20% 30%

Sierra Leone Roads Transport Authority

Corruption imposes barriers to households to access basic social

services

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Mechanisms to participate to policy process

0

10

20

30

40

50

60

Association/NGO Direct tie topublic officials

None

Southern Northern Eastern Western

% of households reporting to use the following channel to participatein the policy process

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The determinants of The determinants of governance – a set of new governance – a set of new

indicatorsindicatorsInternal TransparencyMeritocracyQuality of norms and rules“Accountability” & citizen voiceRule application and supervisionSalary SatisfactionAgency MissionsPoliticizingQuality of services

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Index of Quality of Rules (to manage personnel and

budget resources)

60

62

64

66

68

70

72

74

76

78

80

Colombia (2001) Honduras (2001) Peru (2001)

PersonnelBudget

As reported by public officials

High

Low

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Index of Voice and Accountability

0

10

20

30

40

50

60

70

80

90

Ecuador (2000)Paraguay (1999)Bolivia (1999)Colombia (2001)Peru (2001)Honduras (2001)Indonesia (2001)

As reported by public officials

High

Low

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South North East West WHOLEProv. Prov. Prov. Area COUNTRY

Corruption in budget 35 43 48 39 40

Overall corruption 22 32 35 33 32

Corruption in public contracts 18 35 29 33 30

Corruption in personnel (2) 39 44 55 53 49

Accessibility for poor 85 74 87 74 78

Audit Mechanisms 55 59 66 58 58

Enforcement of rules 70 67 80 73 71

Politicization 21 34 22 34 32

Quality of rules 62 62 70 61 63

Resources 54 51 47 55 52

Transparency 51 55 53 51 55

Citizen voice 70 59 65 66 66

Meritocracy 66 65 70 69 68

Governance & corruption indicators by

province

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Enforcement Citizen Wage

Audit of rules Resources Transparency Voice Satisfaction

Presidential Affairs 52 74 51 55 59 17Ministry of Finance 57 68 52 54 60 25Quasi-independent institutions 69 85 41 63 78 32Ministry of Trade and Industry 64 84 60 59 63 19Ministry of Internal Affairs 60 76 57 61 76 0Ministry of Energy and Power and NPA 72 92 62 61 69 25Ministry of Foreign Affairs & International Cooperation 50 74 54 50 30Ministry of Development & Economic Planning 54 72 69 57 58 25Ministry of Social Welfare, Gender & Children's Affairs 59 71 53 56 58 13Ministry of Health & Sanitation 54 71 53 55 65 21Ministry of Information and Broadcasting 55 68 51 51 60 18Ministry of Education, Science and Technology 54 69 51 55 67 26Ministry of Youth and Sports 56 76 50 52 72 25Ministry of Labor and Industrial Relations 61 71 48 56 64 25Ministry of Agriculture and Food Security 60 69 46 58 66 16Ministry of Local Government & Municipal and district councils 58 72 54 57 63 15Ministry of Transport & Communications 64 77 46 57 66 31Ministry of Works and Public Maintenance 53 67 52 53 68 5Ministry of Lands, Housing & Country Planning 54 57 56 13Ministry of Mineral Resources 60 67 68 55 55 21House of Parliament 54 53 41 59 50 13Office of the Attorney General, Minister of Justice and Director

of Public Prosecutions60 75 49 55 67 25

Traffic Police and Sierra Leone Road Transport Authority 41 74 64 54 63 34Supreme Courts 64 78 55 56 72 43Local Courts 61 68 41 53 77 36SALWACO/GVWC and SIERRATEL 56 73 53 57 58 35SALPOST 61 66 46 54 60 28Sierra Leone Ports Authority 53 66 56 54 59 42SL National Tourist Board and SL Standards Bureau 44 47 49 51 63Police and Prisons 59 68 57 53 66 25Post-conflict institutions 60 71 47 54 64 44WHOLE COUNTRY 58 71 52 55 66 25

Governance & corruption indicators by province

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WBI Governance on the Web

About Governance Diagnostics and Statistical Capacity Building: http://www.worldbank.org/wbi/governance/capacitybuild/about.html

Governance Diagnostic Surveys Country Sites: http://www.worldbank.org/wbi/governance/capacitybuild/d-surveys.html

Worldwide Governance Indicators 1996-2002: http://www.worldbank.org/wbi/governance/govdata2002/index.html

The Business Environment and Enterprise Performance Survey (BEEPS) 1999-2000: http://info.worldbank.org/governance/beeps/

The Business Environment and Enterprise Performance Survey (BEEPS II) 2002: http://info.worldbank.org/governance/beeps2002/

Courses and Surveys: Governance Diagnostic Capacity Building: http://www.worldbank.org/wbi/governance/capacitybuild/courses.html

Step by Step Guide to Governance Diagnostic Empirical Tools Implementation: http://www.worldbank.org/wbi/governance/capacitybuild/diagnostics.html

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