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Linking regions and central governments: Indicators for performance-based regional development policy 6 th EUROPEAN CONFERENCE ON EVALUATION OF COHESION.

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Presentation on theme: "Linking regions and central governments: Indicators for performance-based regional development policy 6 th EUROPEAN CONFERENCE ON EVALUATION OF COHESION."— Presentation transcript:

1 Linking regions and central governments: Indicators for performance-based regional development policy 6 th EUROPEAN CONFERENCE ON EVALUATION OF COHESION POLICY WARSAW, 30 NOV to 1 DEC NOTE : THIS PRESENTATION IS BEST VIEWED AS A SLIDE SHOW

2 This presentation will answer various questions –Questions in todays programme (click icon to reveal & hide) –As well as: 1.What contribution can indicators make to the governance of regional development policy? 2.How are indicator systems designed and used to enhance the performance of regional development policy? 3.What factors facilitate or inhibit the implementation of these indicator systems? 4.What lessons can be drawn about the use of indicators as a tool for enhancing governance? 2

3 Putting indicators systems in context What is the state of regional economies? What is the state of regional assets? What capabilities exist to implement different types of policies? BENCHMARKING REGIONAL ECONOMIES Indicators for benchmarking to enable sound policy choices How are policies being translated to programmes? What inputs are being used? What activities are underway? What outputs are being produced? What (intermediate) outcomes are observed? MONITORING Indicators for monitoring policy implementation and programming Monitoring information feeds into evaluation of programmes and policies Indicators contribute to models of what works UNDERSTANDING IMPACT Indicators for understanding policy impacts 3

4 What contribution can indicators make to the governance of regional development policy? There is mutual dependence among actors…but information gaps exist among actors operating at different or the same level of government In this context, indicator systems can be used to: –Reduce information asymmetries between levels of gov`t –Help the central government transfer knowledge across sub central authorities (facilitates benchmarking) –Encourage performance improvements; alter behaviour –Provide a common frame of reference and basis for dialogue among actors This includes benchmarking regional economies to provide an indication of starting position prior to the selection of appropriate policies and programmatic interventions 4 How can common interpretation of indicators be ensured? Common core set of indicators Joint selection (CG/SCG) Common methodologies & data timetables Ex ante: clarification regarding use Ex post: transparent, regular reporting Training How can common interpretation of indicators be ensured? Common core set of indicators Joint selection (CG/SCG) Common methodologies & data timetables Ex ante: clarification regarding use Ex post: transparent, regular reporting Training

5 How are indicator systems designed and used to enhance the performance of regional policy? No optimal design - objectives for the indicator system and for policies and programmes fundamentally affect design Incentives are inevitable; choice is which type to rely on: –Implicit (e.g. reputation effects) - arise because reporting performance data is not neutral –Explicit (e.g. rewards/sanctions) – arise through direct manipulation Use of data should be anticipated –Reduces inefficiencies –Tight linkages with high-stakes decisions should be carefully considered Partnership between levels of government is crucial for enhancing the usefulness of indicator systems 5 What do indicators measure? Emphasis on: Spending Processes/public admin Programmatic outputs Outcomes Indicators alone do not explain impacts. Impact assessment requires evaluation.

6 What factors constrain and facilitate the effective implementation of indicator systems? 6 Mechanisms that facilitate Participatory design Pilot projects Use of consultants Streamlining procedures Capacity support Linking indicators and actors realm of influence Strong enforcement context Factors that constrain Characteristics of regional policy Multi-sector (w/interactions) Multi-actor (w/joint outcomes) Multi-objective Multi-year Stakeholder capacity Data availability and quality Direct financial costs Indirect costs Where and how can causal links be established among indicators? Inputs activities outputs should be mapped Assumptions regarding linkages and time lags should be clear Intermediate outcomes can bridge outputs and final outcomes (regional economic growth) What time-lag is tolerable…that still allows establishing causal links? Research provides indication of lags OECD: human capital and infrastructure investments in ~ 3 yrs; innovation in ~5 yrs Also depends on extent of threats to internal validity Where and how can causal links be established among indicators? Inputs activities outputs should be mapped Assumptions regarding linkages and time lags should be clear Intermediate outcomes can bridge outputs and final outcomes (regional economic growth) What time-lag is tolerable…that still allows establishing causal links? Research provides indication of lags OECD: human capital and infrastructure investments in ~ 3 yrs; innovation in ~5 yrs Also depends on extent of threats to internal validity

7 What lessons can be drawn about the overall use of indicators as a tool for enhancing governance? IF appropriately designed and used: Indicator systems are an important tool in a good governance toolkit - there is an obligation to monitor (In addition to other benefits) they can help to: –Stimulate effort in particular areas –Facilitate collective learning But…some important caveats: –Benefits are not automatic and must be planned for –Costs and complexities should not be overlooked –Outcome measurement goes in the right direction, but it can be difficult. Focus on outcomes; seek intermediate measures 7 Can a limited number of indicators reflect complexity? Full complexity cannot be captured Choose and specify indicators strategically and carefully Are quantitative indicators appropriate …to express impacts? Qualitative information is crucial to understanding context Impact assessment is an evaluation task and cannot rely solely on indicators Indicators provide an indication… not an explanation Can a limited number of indicators reflect complexity? Full complexity cannot be captured Choose and specify indicators strategically and carefully Are quantitative indicators appropriate …to express impacts? Qualitative information is crucial to understanding context Impact assessment is an evaluation task and cannot rely solely on indicators Indicators provide an indication… not an explanation


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