Social Development Department Multi-stakeholder Engagement in GAC: Linking “Supply” and “Demand” for Good Governance Rob Chase Coordinator Demand for Good Governance Peer Learning Network April 24, 2008 Social Development Department The World Bank

An example from Chinje, Malawi… In the late 1990s, an illiterate woman joined a program developed by CARE that taught her how to listen to clients and keep track of drugs in the village health facility She got very good at it… How many drugs were available? How much money spent? What the shelf life was? Reported on: how health staff behaved? Health staff know that they will be evaluated every six months Ministry takes note of the evaluations Change in performance is dramatic This was a huge problem throughout Malawi Complete turnaround in the performance of this health center

An example from Chinje, Malawi… When the program was being introduced to other areas in Malawi, this illiterate woman was asked to present the program Clear Articulate Powerful In the past couple of years, the CARE program was expanded throughout Malawi and supported by the World Bank

GAC Strategy & Multi-stakeholder Engagement Guiding Principle #5: Engaging systematically with a broad range of government, business and civil society stakeholders is key to GAC reform and development outcomes – so, consistent with its mandate, the WBG will scale up existing good practice in engaging with multiple stakeholders in its operational work, including by strengthening transparency, participation and third-party monitoring in its own operations. “Multi-stakeholder engagement” ”Demand for Good Governance”

Multi-stakeholder Engagement Across Governance Entry Points Public Sector Management Institutional Checks & Balances Political Accountability GOOD GOVERNANCE Good Governance: Public Sector Management Sound public finance management Merit based civil service Transparent, competitive procurement Anticorruption in sectors Institutional Checks & Balances Independent, effective judiciary Legislative oversight (PACs, PECs) Independent oversight institutions (SAI) Global initiatives: UN, OECD Convention, anti-money laundering Political Accountability Political competition, broad-based political parties Transparency & regulation of party financing Disclosure of parliamentary votes Private Sector Interface Effective, streamlined regulation Transparent public-private dialogue Break-up of monopolies Transparency in Extractive Industries Corporate governance Collective business associations Civil Society & Media Freedom of press Freedom of information Civil society watchdogs Public hearings of draft laws Report cards, client surveys Participatory country diagnostic surveys Decentralization and Local Participation Decentralization with accountability Community Driven Development (CDD) Oversight by parent-teacher associations & user groups Beneficiary participation in projects Private Sector Interface Civil Society & Media Decentralization and Local Participation

Accountability Framework for Service Delivery Users Providers Policymakers Demand Side Approaches Supply Side Approaches Voice Service Compact Demand Side Approaches complement Supply Side Approaches Client Power Making Services Work for the Poor (WDR 2004)

“Supply” and “Demand” for governance Exploring the Analogy Supply curve: Agent: producer of public services (public authorities) Production function: q = q(technology, inputs) Optimization: cost minimizing quantity Q = S(P, technology, inputs) Cost, Price (P) Supply Quantity

“Supply” and “Demand” for governance Exploring the Analogy Demand Curve Agent: consumer of public services (citizens, businesses) Utility function: U = U(preferences) Optimization: Given prices, find utility maximizing quantity of public services to consume Q = D(P, preferences, other goods) Cost (AC), Price (P) Demand Quantity

“Supply” and “Demand” for governance Exploring the Analogy Equilibrium quantity and price from supply and demand intersection Requires transparent information Express demand through accountability mechanisms Shifts in demand or supply curves  improved service delivery development effectiveness Cost (AC), Price (P) Supply P Demand q* Quantity

Linking Supply and Demand Tools and Approaches Community Driven Development Intergovernmental Institutional Design Linking Supply and Demand Side Approaches and Tools for Effective Projects and Outcomes Law and Justice Pro-poor Approaches to Justice Reform This is in your handout but I’m not going to go through it in this presentation Local Public Financial Management System Participation and Civic Engagement Social Accountability

Social Accountability Sourcebook Participatory Budgeting Citizen Report Cards (CRC) Community Score Cards (CSC) Public Expenditure Tracking Surveys Right to Information (RTI) Compliance Social Audits Project Websites Community Radio Increasing Transparency & Access to Information Enhancing Accountability & Citizen Oversight Grievance Redress

Strengthening Demand for Good Governance Enabling environment for Social Accountability Right to information legislation and practice (Orissa implementation of India-wide RTI legislation) Independent, competitively owned media (Kenya, Eastern Europe) Independent, executive branch oversight (Supreme audit institutions, Parliamentary accounts committees) Opportunities for citizen and civil society input into development planning, implementation and monitoring (Uganda, PRSCs) Enhancing Demand-side Approaches in Bank Operations Public disclosure of project-level contracting (Bangladesh E-procurement) Participatory budgeting (Brazil) Citizen and community oversight of investment operations (India DPIPs) Community empowerment for improved local governance (Indonesia KDP) Direct Support for Civil Society Capacity Building local civil society capacity for oversight and participation (service delivery score cards, capacity of user groups, parental participation in schools, water users associations, community conservation groups)

Expanding Evidence Base Participation an end in itself Sen (1999): Poverty as lack of capabilities Olken (2007): Roads construction in Indonesia Participation, as means to an end, leads to better development outcomes: Bjorkman and Svensson (2007): Health provision in Uganda Arcand and Bassole (2007): CDD outputs in Senegal Pattanayak and Lvovsky (2008): Water and Sanitation in India But, this might be context specific: Banerjee et al. (2008): Education in India Progress to improve interaction between citizens and authorities Labonne and Chase (2008): Social capital in Philippines How demand side tools have been used for implementation in projects. Expand on this using the above examples.

Demand for Good Governance Peer Learning Network Cross-disciplinary community of practitioners engaged in or interested in tackling issues of good governance and anti-corruption from the demand-side Within and outside the World Bank Launched in December 2007 315 participants (85% Bank, 15% Civil Society) Harness the rich experience present across development sectors and organizations, Increase opportunities for exchanging knowledge, innovations and good practices among the diverse actors engaged in this work To mainstream the diverse demand side governance efforts and strengthen collaboration and coordination.

Demand for Good Governance Learning Summit June 2 and 3, 2008 Washington, D.C. Platform to enable our internal Bank members and external partners To share and exchange knowledge, information, and experiences of their work on DFGG Encourage productive engagement and build consensus on "how to do" as we seek to mainstream and scale-up. Focus – conceptual and operational What do we mean by the demand for good governance? What DFGG initiatives are going on? (Kiosk/ Poster Exhibition) What are the tricks of the trade for supporting DFGG in different contexts? For more information and resources on the DFGG, please visit FURL://dfgg

Launching Discussion What do we mean by the demand for good governance? Do you find the micro-economic analogy helpful? What DFGG initiatives are going on? How do your operations promote opportunities for multi-stakeholder engagement? What are the tricks of the trade? What constraints have innovative operations had to overcome and how can we eliminate them? Do demand-side approaches deliver development results? What evidence is available from other operations? How do we get more resources for this work? Can we move beyond trust funds to support DFGG?