Nolandia—a country case study The World Bank Course on Public Sector Governance and Anticorruption Presented by: Francesca Recanatini Senior Economist Public Sector Group June 4, 2007 Presented to:

Topics Review and apply key tools thru a mini- case study 30 minutes table discussion 30 minutes class discussion When all else fails, what do you do? Resources to help you along the way

When governance breaks down... Outcomes: Services, Regulations, Corruption Political Actors & Institutions Political Parties Competition, transparency Executive-Central Govt Service Delivery & Regulatory Agencies Subnational Govt & Communities Formal Oversight Institutions Parliament Judiciary Oversight institutions Civil Society & Private Sector Civil Society Watchdogs Media Business Associations Cross-cutting Control Agencies (Finance, HR) Citizens/Firms State Capture Patronage & Nepotism Administrati ve Corruption

Remember the Suggested Five Step Approach… 1. Take stock of GAC landscape and legacy including the constraints GAC poses to growth and poverty reduction. 2. Formulate C-GAC strategy and entry points suitable for the country GAC challenges and government commitment. 3. Assess and mitigate risks (fiduciary and reputational) to the Bank’s proposed engagement. 4. Formulate partnership (including coalitions), consultations and communication plan. 5. Develop results framework including the M and E arrangements and GAC related triggers (as applicable).

Political Accountability Political competition, broad-based political parties Transparency & regulation of party financing Disclosure of parliamentary votes Formal Oversight Institutions 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 survey Private Sector Interface Streamlined regulation Public-private dialogue Extractive Industry Transparency Corporate governance Collective business associations Effective Public Sector Management Ethical leadership Public finance management & procurement Civil service meritocracy & adequate pay Service delivery and regulatory agencies in sectors … find appropriate entry points and a sustainable process of reform Outcomes: Services, Regulations

Choosing Entry Points sustainability Essential for sustainability Foundation performance of good performance Leadership & Coalitions Meritocracy Ownership Align engagement in GAC with priorities development priorities

Structuring Reforms quick wins Plan some quick wins to help motivate reforms Sometimes it is as simple know as letting people know Visibility Communication ModerateExpectations Thresold effect in Governance reforms

Nolandia 1. Identify some of the possible governance issues – both strengths and weaknesses—in the country. 2. You have the budget to implement one diagnostic. Which do you choose? What do you hope to learn? 3. What are some of the types of governance reforms that might be appropriate in this setting? What are some of the possible entry points? Why? How might reforms be sequenced? At each of your tables …

Services – for internal staff only - Information services (Pakistan – public official questionnaires; AFR – HD performance indicators) - TG-specific & integrated advisory services (Afghanistan – MoF restructuring; Moldova – governance in CEM; Sudan – federalism) - Peer reviews and QERs (Bangladesh – PER review; Ethiopia – review of PCN for decentralization fiscal support; Paraguay – QER for MoF project) - Clinics on special topics for project teams (SAR civil service retrenchment; India VAT implementation; Lesotho implementing and sequencing MTEF; Vietnam IFMIS) A A S S G G OV A A S S G G Advisory Services & Knowledge for Public Sector Governance PSG Help

Types of Services Provided JIT Advisory Services, 33% Clinics & Workshops (e.g., CMU advice) 7% Peer Reviews & Comments (e.g., on ESW, Operations) 26% Information (e.g., JiT facts, Data, CVs, TORs) 32% Since the fall of 2005, AskGov has provided over 1,300 services, averaging 87 activities per month SAR 12% Regional Breakdown of Services LAC 12% ECA 20% AFR 23% EAP 23% MNA 10% PSG Help AskGov is a demand-driven service to provide a variety of just-in-time advice and services to regional clients, pooling together expertise from throughout the Bank

Governance & Anticorruption Francesca Recanatini (x31557) Governance & Anticorruption Francesca Recanatini (x31557) Five Thematic Groups Public Finance Anand Rajaram (x82359) Tuan Minh Le (x38485) Public Finance Anand Rajaram (x82359) Tuan Minh Le (x38485) Decentralization Kai Kaiser (x82210) Decentralization Kai Kaiser (x82210) Legal Institutions Rick Messick (x87942) Luba Beardsley (x88164) Legal Institutions Rick Messick (x87942) Luba Beardsley (x88164) Administrative & Civil Service Reform Gary Reid (x30895) Administrative & Civil Service Reform Gary Reid (x30895)

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