1. 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

2. 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

3. 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

4. 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”

5. 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

6. 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)

7. “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

8. “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

9. “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

10. 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

11. 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

12. 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)

13. 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.

14. 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.

15. 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

16. 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?