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Public Spending and the Human Development Sector Mukesh Chawla ECSHD.

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Presentation on theme: "Public Spending and the Human Development Sector Mukesh Chawla ECSHD."— Presentation transcript:

1 Public Spending and the Human Development Sector Mukesh Chawla ECSHD

2 Half a head of lettuce…. The customer only wanted half a head of lettuce, and insisted the stock boy check with the manager before denying the request. The boy approached his boss: “Some moron wants to buy half a head of lettuce,” he said. Just then he saw that the customer was standing right behind him. “And this gentleman has agreed to buy the other half.” – (Readers Digest, June ’02)

3 The story of this half……or why must all PERs worry about HD spending Public expenditures on HD activities – health, education and social protection – constitute significant proportion of total public expenditures The unique and socio-political nature of HD spending Critical importance of incidence and outcome effects of HD spending

4 And the other half…or why must HD spending be overseen by PE Reviews Rationale of public spending on HD typically remains unexplored if sound PER-type analysis is not carried out Periodic quantitative and qualitative analysis of outcome effects and incidence important to effect corrections in conceptualization and implementation

5 Of morons and lettuce heads More and more PERs focusing on public spending on HD Focus on effectiveness, outputs and outcomes increasingly driving HD economists towards analysis of policies, budgets and service delivery Sector studies inspired by findings of gaps in effectiveness and efficiency of public spending

6 Integration and Synergy: HD in PERs Georgia (2002) – Emphasis on HD issues in a conventional PER China (2002) – Good integration of HD issues in a PER focusing on provincial expenditures Ukraine (2001) – HD sectors 35% of total local Government budget, but scope for more detailed analysis of HD issues Ethiopia (2001), Nicaragua (2001): Focusing PE on poverty reduction (the other emerging trend, given PRSP and the need for medium-term expenditure framework)

7 Integration and Synergy: PERs initiating HD work Turkey – PE analysis motivated detailed health sector review and a new health sector reform project Slovakia – Social Sector Expenditure Review initiated health project

8 The reality check Much of PER work still concentrates on big ticket items only, underplaying importance of HD sectoral issues Much of lending (and even ESW) activities proceeds without an analysis of the appropriate role of public spending and provision in HD Much of social-sector analysis not integrated with medium-term expenditure framework

9 Revisiting Anand ….or how many halves will make a full lettuce head How can we manage such a (VERY) large PE agenda within a common framework? –Over time –Across networks and other partners –To ensure it supports government’s decision cycle (PRSP etc.) –To derive an external assessment of budget systems –To inform our CAS

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