Transcript Document 7353981

Our journey together so far …
… and a chance to practice (without injury):
The ‘Uttarstan’ Case Study
Presented to:
Course on Public Sector
Governance and
Anticorruption
June 7, 2007
The World Bank
Presented by:
Francesca Recanatini
Senior Economist
Public Sector Governance (PREM)
Utterstan: Farrah Manuela – A Country
Economist with a problem …
Wd
j Ri
ver
Agricultural Areas
Desert Area
(Highest rates of
Unemployment;
lowest literacy rates)
Wbinsti
Paved roads
Unpaved roads
Capitol: Prembai
Pop: 12m
Special Industrial
Zones
The World Bank
PREM Public Sector
Governance ‹#›
Uttarstan: Farrah has two weeks to
outline a governance strategy …
The Government of a large
blend country with has
asked the Bank to outline a
strategy and programs to
improve governance,
reduce corruption, and
strengthen public services
for poverty reduction
Where to start?
The World Bank
PREM Public Sector
Governance ‹#›
Uttarstan: The Assignment more specifically
Manuela and her team are to
prepare a 10 minute presentation
for an upcoming meeting with the
Government and civil society:
· An assessment of the governance environment
in Uttarstan;
· An outline of the Bank’s proposed assistance
strategy, including lending and non-lending
(e.g., technical assistance, surveys, studies);
· Identification of key stakeholders, partners and
coalitions (e.g., donors, media, NGOs); and
· Identification of risks, mitigation measures,
and the potential impact of the strategy.
… all within the Bank’s budget
The World Bank
PREM Public Sector
Governance ‹#›
Uttarstan: What resources does Farrah
have?

Her own belief that economic growth is the
solution to many governance problems

Her colleagues & consultants
– Prof. Bunni Narberg: Local Political
Scientist with deep historical insight
– Steve Michaels: Public Sector Specialist
(ACSR), focusing on core organizations
– “Chips” O’Toole: PFM Specialist, believing
in well-proven models of PFM

Jack Post, CD, with a concern about poverty
but first and foremost about a financial crisis

Wealth of governance information on the
Bank’s Intranet

The Network (& AskGov)
The World Bank
PREM Public Sector
Governance ‹#›
Do we have an idea of the ‘desired state’?
Desired
State
(Good Equilibrium)
Status
Quo
(Bad
Equilibrium)
The World Bank
PREM Public Sector
Governance ‹#›
Uttarstan: How would we understand
the political context?
Party
Seats Percent
Ruling Coalition
Opposition
238
141
53%
32%
Independent
71
450
15%
100%
Independent
Percent
Independent
Seats Percent
Independent
Seats
Percent
Infrastructure
18
4%
Infrastructure
18
4%
Infrastructure
18
4%
Privateand
Sector
Party Sector
11Development
2%
Finance
Private
11
2%
Party
Finance and Private Sector11Development
2%
Party
RuralDevelopment
DevelopmentParty
Party 99
2%
Rural
2%
Rural Development Party 9
2%
Independent
EnvironmentParty
Party
66
1%
Environment
1%
Independent
Environment
Party
6
1%
Independent
SocialDevelopment
DevelopmentParty
Party 55
1%
Social
1%
15%15%
Social Development Party 5
1%
15%
Other
22
5%
Other
22
5%
Other
22
5%
Total:
71
15%
Total:
71
15%
Total:
71
15%
Opposition
Opposition
32%
32%
Ruling Coalition
SeatsPercent
Ruling Coalition
SeatsPercent
New Freedom Party 126
28%
New Freedom Party 126
28%
Agrarian League
69
15%
Agrarian League
69
15%
New Democratic Party 31
7%
New Democratic Party 31
7%
New Welfare Party
12
3%
New Welfare Party
12
3%
Total:
238
53%
Total:
238
53%
Ruling
Ruling
Coalition
Coalition
53%
53%
Opposition
Seats Percent
Opposition
Seats
Uttarstan Motherland Party 97 Percent
22%
Uttarstan
Motherland
Party
97
22%
Uttarstan Youth Party
44
10%
Uttarstan
Youth
Party
44
10%
Total:
32%
141
Total:
141
32%
The World Bank
PREM Public Sector
Governance ‹#›
Uttarstan: What are possible ‘entry points’?
Citizens/Firms
Political Accountability
• Political competition, broad-based political
parties
• Transparency & regulation of party financing
• Disclosure of parliamentary votes
• Independent,
effective judiciary
• Legislative
oversight (PACs,
PECs)
• Independent
oversight
institutions (SAI)
• Global initiatives:
UN, OECD
Convention, antimoney laundering
Effective Public
Sector Management
• Ethical leadership
• Public finance
management &
procurement
• Civil service
meritocracy & adequate
pay
• Service delivery and
regulatory agencies in
sectors
Civil Society & Media
• Freedom of press, FOI
• Civil society watchdogs
• Report cards, client
survey
Private Sector Interface
• Streamlined regulation
• Public-private dialogue
• Extractive Industry
Transparency
• Corporate governance
• Collective business
associations
Citizens/Firms
Citizens/Firms
Formal Oversight
Institutions
Decentralization and Local Participation
• Decentralization with accountability
• Community Driven Development (CDD)
• Oversight by parent-teacher associations & user
groups
• Beneficiary participation in projects
The World Bank
Citizens/Firms
Outcomes:
Services,
Regulations
PREM Public Sector
Governance ‹#›
Choosing Entry Points
Leadership &
Coalitions
Essential for sustainability
Meritocracy
Foundation
of good performance
Ownership
Align engagement in GAC with
development priorities
The World Bank
PREM Public Sector
Governance ‹#›
Structuring Reforms
Visibility
Enclaves
Competition
The World Bank
Plan some quick wins
to help motivate reforms
A means, not an end
Use it in the design of
both the reform and operation
PREM Public Sector
Governance ‹#›
Final Tips
Insomnia
test
Communicate
Moderate
Expectations
The World Bank
If noone is losing sleep, then
reforms are not biting
Sometimes it’s as simple
as letting people know
Threshold effect in
governance reforms
PREM Public Sector
Governance ‹#›
Uttarstan: How to diagnose?
Global Clarity
No
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
Rank
India
Mozambique
Nepal
Russia
Tanzania
Algeria
Nicaragua
Serbia and Montenegro
Eritrea
Papua New Guinea
Philippines
Uganda
Vietnam
Albania
Libya
Palestinian Authority
68
Uttarstan
69
70
Yemen
Congo, Republic of
The World Bank
Anticorruption complaints received
by the vigilance authority, 1995-2002
Agency
1. Ministry of Public Works and Highways
2. Ministry of Environment and Natural Resources
3. Ministry of Education, Culture and Sports
4. Uttarstan Customs Agency/Uttarstan Ports Authority
5. National Irrigation Administration
6. Bureau of Revenue
7. Ministry of Health
8. Ministry of the Interior and Local Government
9. National Power Corporation
10. Bureau of Immigration
11. All Others
TOTAL
Complaints
Percent
Total
1,762
1,149
1,046
517
393
355
289
247
217
199
384
6,558
26.9
17.5
15.9
7.9
6.0
5.4
4.4
3.8
3.3
3.0
5.9
100.0
Uttarstan Public Opinion Survey (2003)
• Private sector and
• Civil society
PREM Public Sector
Governance ‹#›
Uttarstan: How to diagnose? (Cont.)
Time to start a business
Time to Start a Business (Days)
100
90
89
Shorte st Time - Global
80
72
70
60
47
50
50
41
35
40
30
30
21
24
20
10
2
0
Australia
Nepal
The World Bank
Pakistan
Malaysia Bangladesh
China
S.A.
Average
Sri Lanka
India
Uttarstan
PREM Public Sector
Governance ‹#›
Uttarstan: What are the available tools?
PER
HIPC E.T.
ROSC
CPAR
EC Audits
Public Official Surveys
IGR & GAC &
Governance
CrossCountry Ind.
CFAA
Political System
- Campaign Finance
- Recruitment/Patronage
Executive Branch
- Core Accountability Mechanisms
- Key Sectors: Revenue, Expenditure &
Regulatory Agencies
Legislative Branch
- Parliamentary Oversight
- Parliamentary Safeguards
Judicial Branch
- Judicial Independence
- Judicial Predictability
- Prosecution & Trial of Corruption Cases
Sub-National Government
Service Delivery Agencies
- Transparency and Responsiveness
- Accountability Mechanisms
- Accountability Mechanisms
- Accessibility and Responsiveness
QSDS
Users
SCORE CARDS
PETs
The World Bank
- Households
- Enterprises
BEEPS & INVEST.
CLIMATE
PREM Public Sector
Governance ‹#›
Uttarstan: What’s the PFM situation?
Three Objectives of Public Financial
Management Systems:

Macrofiscal discipline and stability
– Support economic growth and stability
(and reduce poverty)
– Avoid public finance crises

Strategic allocation of resources
– Match government policy with programs,
objectives


And assure social safety nets, and promote
growth
Technical efficiency
– Getting the most from each zloty spent

And just delivering core services
The World Bank
PREM Public Sector
Governance ‹#›
Utterstan: What about issues of
decentralizaton … urban vs rural?
Wd
j Ri
ver
Agricultural Areas
Wbinsti
Do we know the
accountability relationships?
Central
Government
(Policymakers
/Politicians)
Desert Area
(Highest rates of
Unemployment;
lowest literacy rates)
SubNational
Level
Paved roads
Unpaved roads
Capitol: Prembai
Pop: 12m
“Compact”
B
A
Local Political
Representatives
Top Down
Decentralized
Civil Service
C
Devolved
Deconcentrated
F
“Voice”
D
Special Industrial
Zones
Front-Line
Provider
“Client
E Power”
G
Bottom-Up
Citizens /
Firms
Kai Kaiser
Picture in E:\Pro_PRMPS\Decentralization Strategies.doc
February 14, 2005 3:11 PM
The World Bank
PREM Public Sector
Governance ‹#›
Uttarstan: What’s our results focus?
Risk analysis and mitigation?
Do we have a results focus?
 Are there donors, partners,
NGOs with whom we should
cooperate? (e.g. TA)
 How can we increase
demand/pressure for
reducing corruption?

The World Bank
PREM Public Sector
Governance ‹#›
Uttarstan:
What Communications Strategy do we
need?
Radio: The
swath & the
dagger
Reaching Out
TV: Raising the
ante
Print Media:
Amplifying the
problem
The World Bank
Advertising: Creating
a
PREM Public Sector
Governance ‹#›
‘brand name’
Uttarstan: The Assignment
Manuela and her team are to prepare a
10 minute presentation for an
upcoming meeting with the
Government and civil society:
1. An assessment of the governance environment
in Uttarstan;
2. An outline of the Bank’s proposed assistance
strategy, including lending and non-lending
(e.g., technical assistance, surveys, studies);
3. Identification of key stakeholders, partners and
coalitions (e.g., donors, media, NGOs); and
4. Identification of risks, mitigation measures,
and the potential impact of the strategy.
… all within the Bank’s budget
The World Bank
PREM Public Sector
Governance ‹#›
Uttarstan: Our real goal …
The World Bank
PREM Public Sector
Governance ‹#›
Group
Discussions
The World Bank
PREM Public Sector
Governance ‹#›