1. 1 CE Results Framework for PRSCs in Lao PDR September 2, 2004 Moira Hart-Poliquin Chirine Alameddine The World Bank Institute

2. 2 1. Lessons Learned from Past PRSCs 2. Why a consistent CE framework makes sense for PRSCs 3. How CE could support PRSC reforms in Lao PDR DESIGNING CE STRATEGIES IN SUPPORT OF PRSCs

3. 3 PRSC Investment in CE (FW) tackles both: Ownership Institutional incentives and policies Implementation Organizational systems and processes Selectivity of results is key; results should be realistic, relevant, and feasible Need convincing approach to capacity problem in order to sell tough targets Strengthening systems and processes builds confidence and ability to achieve results Challenges to policy reform are two-fold PRSC tackles policy reform for PRSP Ownership Implementation

4. 4 Supports shift towards results-oriented indicators and progress benchmarks Helps to align donor support Has the explicit goal of aligning Bank support Requires ongoing monitoring and feedback into program implementation for long term institutional capacity building Main Message: A strategic and structured approach to CE makes sense for improving: M&E donor alignment design and targeting of CE interventions institutional constraints as well as organizational and individual capacity issues LESSONS LEARNED FROM PAST PRSCs

5. 5 WHY A CONSISTENT AND SYSTEMATIC CE FW MAKES SENSE FOR PRSC PRSCs important entry point because government-owned and supported indirectly by donors financially and technically Use PRSC results matrix to prioritize and develop shared view (with government and donors) on capacity constraints and effective interventions that go beyond training and focus on capacity issues at the organizational and individual levels. Donor Coordination: E.g., Japan & EU have CD programs in Laos Opportunity to coordinate and target these investments to have a greater impact Promote with partners moving beyond traditional training to measure and monitor organizational and individual capacities. Use supervision process to monitor progress on capacities related to the results matrix

6. 6 Objective InstitutionalOrganizationalIndividual Baseline Capacity Inputs/ Interventions Outcome/ Indicator Results Chain Current level of capacity Interventions to address constraints Simple, customized and measurable indicators BENEFITS OF A CONSISTENT AND SYSTEMATIC CE FW More effective design of capacity interventions Better Monitoring Improved donor coordination

7. 7 Building Constituencies for Change - Exposing Lao leaders to lessons learned from leaders in China and Vietnam on facilitating reform. Examples: Service Delivery: Improved tracking, better PEM, policies for improved transparency PSD: Market-oriented reform, transition of economic institutions, SMEs, and attracting investment Leadership Skills- Strengthening leadership skills and confidence to make change, achieve PRSC triggers and implement new policies through innovative approaches (e.g. Rapid Results to help jump start and enhance implementation) Assessing Capacity Needs- For each set of triggers, identify organizational and individual constraints where knowledge sharing, training, study tours, or twinning could contribute to removing bottlenecks SUPPORTING PRSC REFORMS THROUGH…

8. 8 HOW CAN CT MEMBERS SUPPORT THIS PROCESS Applying a consistent CE framework to support the PRSC outcomes Advocating for improved coordination Strengthening analytical capacity by involving local experts/partners in analytical work from the initial design stage

9. 9 THANK YOU

10. 10 Objective: Developing a public expenditure tracking system that will lead to a situation where the GOL/MOE can determine what fund are going where and for what result InstitutionalOrganizationalIndividual Baseline Capacity No tradition of expenditure tracking for purpose of accountability for equity and efficiency MOE does not have education policy division to analyze results of PETS activities and present them in ways that are useful to decision-makers Limited knowledge of public expenditure tracking systems Inputs/ Interventi ons Participation of MOE in first PETS activity, as part of multi-agency team, with Bank support Creation of education policy division in MOE, under EDP II, with training and specific policy exercises Participation in Bank- funded multi-country PETS training course (2004) Participation in Bank- funded multi-agency PETS exercise (2004/05) Outcome/ Indicator MOE decision-makers appreciate benefits of first PETS exercise and plan to adapt, expand and repeat exercise First PETS successfully undertaken in 2005 in social sectors Expanded PETS undertaken in later years Example: CE issues in Education Results Chain Education Division policy created and staffed with appropriately trained personnel PETS-related policy produced to acceptable standard

11. 11 Objective: Effective Decentralization InstitutionalOrganizationalIndividual Baseline Capacity Clarity of roles and responsibilities Donor coordination Existence and quality of business processes Effectiveness of organizational structure Adequacy of skills Inputs/ Interventi ons TA for policy options Promote dialogue on strengthening the road transport industry (private sector) Processes for key support functions: fin. mgmt., procurement, M&E TA for manuals, guidelines, procedure Training in key support functions: fin. mgmt., procurement, M&E Outcome/ Indicator Accountability structure Shift in key roles across public-private sector boundary Performance-related skills improvement Example: CE issues in RMP2 Results Chain

12. 12 Objective: Functional budget classification InstitutionalOrganizationalIndividual Baseline Capacity Centralized control approach in MoF and at policy level Agencies preference for budget consolidation to allow flexibility Lack of technical skills to prepare classification structure Inputs/ Interventio ns Knowledge sharing/dialogue/study tours to neighbors for decision makers make the case for move from expenditure system to functional Long term coaching for training in designing and implementation of a “ functional ” classification system TOTs for extensive training at agency, with local institutional base and provincial level in application of system Outcome/ Indicator Timeliness, transparency, and coherence of budget envelopes FY2004 budget presented following administrative, functional and simplified line-item structure Same system applied for execution and accounting Results Chain Example: CE issues in PEM