1. Our journey together so far …
… and a chance to practice (without injury):
The ‘Uttarstan’ Case Study
Presented by:
Francesca Recanatini
Senior Economist
Public Sector Governance (PREM)
Presented to:
Course on Public Sector Governance and Anticorruption
June 7, 2007
The World Bank
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2. Utterstan: Farrah Manuela – A Country Economist with a problem …
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3. Uttarstan: Farrah has two weeks to outline a governance strategy …
The Government of a large blend country with has asked the Bank to outline a strategy and programs to improve governance, reduce corruption, and strengthen public services for poverty reduction
Where to start?
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4. Uttarstan: The Assignment more specifically
Manuela and her team are to prepare a 10 minute presentation for an upcoming meeting with the Government and civil society:
· An assessment of the governance environment in Uttarstan;
· An outline of the Bank’s proposed assistance strategy, including lending and non-lending (e.g., technical assistance, surveys, studies);
· Identification of key stakeholders, partners and coalitions (e.g., donors, media, NGOs); and
· Identification of risks, mitigation measures, and the potential impact of the strategy.
… all within the Bank’s budget
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5. Uttarstan: What resources does Farrah have?
Her own belief that economic growth is the solution to many governance problems
Her colleagues & consultants
Prof. Bunni Narberg: Local Political Scientist with deep historical insight
Steve Michaels: Public Sector Specialist (ACSR), focusing on core organizations
“Chips” O’Toole: PFM Specialist, believing in well-proven models of PFM
Jack Post, CD, with a concern about poverty but first and foremost about a financial crisis
Wealth of governance information on the Bank’s Intranet
The Network (& AskGov)
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6. Do we have an idea of the ‘desired state’?
Status Quo
(Bad Equilibrium)
Desired
State
(Good Equilibrium)
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7. Uttarstan: How would we understand the political context?
Independent
15%
Opposition
32%
Ruling
Coalition
53%
Ruling Coalition
Seats
Percent
New Freedom Party
126
28%
Agrarian League 69
New Democratic Party 31 7%
New Welfare Party 12 3%
Total:
238
Uttarstan Motherland Party 97
22%
Uttarstan Youth Party 44
10%
141
Infrastructure 18 4%
Finance and Private Sector Development Party 11 2%
Rural Development Party 9
Environment Party 6 1%
Social Development Party 5
Other 22 5% 71
Party
450
100%
Private Sector Party
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8. Uttarstan: What are possible ‘entry points’?
Citizens/Firms
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
Effective Public Sector Management
Ethical leadership
Public finance management & procurement
Civil service meritocracy & adequate pay
Service delivery and regulatory agencies in sectors
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
Citizens/Firms
Citizens/Firms
Decentralization/local government can be an entry point
Upward influence of local governance – Philippines
Pressures from below can induce reforms at the top -- China
Decentralization and Local Participation
Decentralization with accountability
Community Driven Development (CDD)
Oversight by parent-teacher associations & user groups
Beneficiary participation in projects
Outcomes: Services, Regulations
Citizens/Firms
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9. Choosing Entry Points Leadership & Coalitions
Meritocracy
Ownership
Essential for sustainability
Foundation
of good performance
Align engagement in GAC with
development priorities
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10. to help motivate reforms both the reform and operation
Structuring Reforms
Visibility
Enclaves
Competition
Plan some quick wins
to help motivate reforms
A means, not an end
Use it in the design of
both the reform and operation
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11. If noone is losing sleep, then Sometimes it’s as simple
Final Tips
Insomnia
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Communicate
Moderate
Expectations
If noone is losing sleep, then
reforms are not biting
Sometimes it’s as simple
as letting people know
Threshold effect in
governance reforms
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12. Uttarstan: How to diagnose?
Global Clarity
Anticorruption complaints received by the vigilance authority,
Uttarstan Public Opinion Survey (2003)
Private sector and
Civil society
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13. Uttarstan: How to diagnose? (Cont.)
Time to start a business
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14. Uttarstan: What are the available tools?
PER
HIPC E.T.
ROSC
CPAR
EC Audits
CFAA
IGR & GAC & Governance Cross-Country Ind.
BEEPS & INVEST.
CLIMATE
SCORE CARDS
QSDS
Public Official Surveys
PETs
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15. Uttarstan: What’s the PFM situation?
Three Objectives of Public Financial Management Systems:
Macrofiscal discipline and stability
Support economic growth and stability (and reduce poverty)
Avoid public finance crises
Strategic allocation of resources
Match government policy with programs, objectives
And assure social safety nets, and promote growth
Technical efficiency
Getting the most from each zloty spent
And just delivering core services
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16. Utterstan: What about issues of decentralizaton … urban vs rural?
Do we know the accountability relationships?
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17. Uttarstan: What’s our results focus? Risk analysis and mitigation?
Do we have a results focus?
Are there donors, partners, NGOs with whom we should cooperate? (e.g. TA)
How can we increase demand/pressure for reducing corruption?
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18. Uttarstan: What Communications Strategy do we need?
Reaching Out
Radio: The swath & the dagger
Print Media: Amplifying the problem
TV: Raising the ante
Advertising: Creating a ‘brand name’
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19. Uttarstan: The Assignment … all within the Bank’s budget
Manuela and her team are to prepare a 10 minute presentation for an upcoming meeting with the Government and civil society:
An assessment of the governance environment in Uttarstan;
An outline of the Bank’s proposed assistance strategy, including lending and non-lending (e.g., technical assistance, surveys, studies);
Identification of key stakeholders, partners and coalitions (e.g., donors, media, NGOs); and
Identification of risks, mitigation measures, and the potential impact of the strategy.
… all within the Bank’s budget
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20. Uttarstan: Our real goal …
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21. Group Discussions
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