January 23, 2009

Evans and Embedded Autonomy What is a developmental state, according to Evans What are its internal and external characteristics? What are the characteristics of a ‘predatory’ state? How can one transform a predatory state into a developmental state? This is the key question in the institutions and governance approach to development

What is governance? World Bank Process and institutionalization through which decisions are made and authority exercised? Selection, accountability and replacement of authority Efficiency of institutions – resource allocation Respect for institutions – rule of law DFID How institutions rules and systems of the state operate at central and local level & how state relates to citizens Political systems, macro stability, promote growth, pro-poor policy, universal access to basic services, personal safety & security, manage national security, honest and accountable government

Evaluating Potential Governance Interventions (Grindle) What degree of conflict is likely Time required for institutionalization Organizational complexity Budgetary requirements Amount of behavioral change required

Pritchett & Woolcock Effective provision depends on structure of incentives Resources Information Decision-making Delivery mechanism Accountability

Problems in service provision All services provided by center, irrespective of their characteristics Works in “Denmark” now Makes ‘sense’ Fits with interests of donor agencies Provided a means to stay in power Fits with ‘creation myths’ of developed world

Three responses to failure Intensification Amputation Reform key policies Implementation by ‘10 smart people’

World Development Report 2004 Service provision – requires institutional relationships in which actors are accountable Actors Characteristics of services Accountability Delegation Finance Performance Information/monitoring Enforceability

16 Political Accountability Political competition, broad-based political parties Transparency & regulation of party financing Disclosure of parliamentary votes Checks & Balances Independent, effective judiciary Legislative oversight (PACs, PECs) Independent oversight institutions (SAI) Global initiatives: UN, OECD Convention, anti- money laundering Citizens/Firms Decentralization and Local Participation Decentralization with accountability Community Driven Development (CDD) Oversight by parent-teacher associations & user groups Beneficiary participation in projects Civil Society & Media Freedom of press, FOI Civil society watchdogs Report cards, client surveys Private Sector Interface Streamlined regulation Public-private dialogue Extractive Industry Transparency Corporate governance Collective business associations Effective Public Sector Management Ethical leadership: asset declaration, conflict of interest rules Cross-cutting public management systems: meritocracy, public finance, procurement Service delivery and regulatory agencies in sectors Governance Dimensions

Public Expenditure Tracking Budget: Formulation Analysis Expenditure Monitoring

Participatory Tools Public expenditure tracking surveys Social audits Citizen report cards, community scorecards Advocacy campaigns

Examples Budget formulation –Porto Alegre Brazil Budget review and analysis – Gujurat, India Expenditure tracking – Uganda Performance Monitoring – Bangalore, India