1. Nolandia—a country case study The World Bank Core Course on Governance and Anticorruption Presented by: Randi Ryterman Sector Manager Public Sector Group April 24, 2007 Presented to:

2. The World Bank Page 2 Randi Ryterman Governance & Anticorruption Course 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

3. The World Bank Page 3 Randi Ryterman Governance & Anticorruption Course 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

4. The World Bank Page 4 Randi Ryterman Governance & Anticorruption Course … diagnose the problem … PER HIPC E.T. ROSC CPAR EC Audits CFAAIGR & GAC & Governance Cross- Country Ind. BEEPS & INVEST. CLIMATE SCORE CARDS QSDS Public Official Surveys PETs

5. The World Bank Page 5 Randi Ryterman Governance & Anticorruption Course 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

6. The World Bank Page 6 Randi Ryterman Governance & Anticorruption Course Choosing Entry Points sustainability Essential for sustainability Foundation performance of good performance Leadership & Coalitions Meritocracy Ownership Align engagement in GAC with priorities development priorities

7. The World Bank Page 7 Randi Ryterman Governance & Anticorruption Course Structuring Reforms quick wins Plan some quick wins to help motivate reforms means A means, not an end Visibility Enclaves Competition Use it in the design of reformoperation both the reform and operation

8. The World Bank Page 8 Randi Ryterman Governance & Anticorruption Course Final Tips If noone is losing sleep, then biting reforms are not biting Sometimes it’s as simple know as letting people know Insomniatest Communicate ModerateExpectations Threshold Threshold effect in governance reforms

9. The World Bank Page 9 Randi Ryterman Governance & Anticorruption Course Improving PFM – A Platform Approach Platform 1 A credible budget delivering a reliable and predictable resource to budget managers Platform 2 Improved internal control and public access to key fiscal information to hold managers accountable Platform 3 Improved linkage of priorities and service targets to budget planning and implementation Platform 4 Integration of accountability and review processes for both finance and performance management Integration of budget (recurrent & capital budgets)  Strengthen macro and revenue  Forecasting  Streamline spending processes Broad Activities  Re-design  Budgeting  Classification system  Initial design of FMIS for core business processes  Strengthen external audit and define internal audit function  Re-design budget cycle (e.g. MTEF)  Pilot program based budgeting & budget analysis  Further fiscal  Decentralization  Full design of FMIS  Develop IT  Management  Strategy  Initial design of asset register Enables a basis for accountability Enables focus on what is done with money Enables more accountability for performance management Cambodia – Sequence of Platforms Broad Activities Broad Activities Broad Activities Source: See “Study of measures used to address weaknesses in Public Financial Management systems in the context of policy-based support,” by Peter Brooke, at www.pefa.orgwww.pefa.org

10. The World Bank Page 10 Randi Ryterman Governance & Anticorruption Course 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 …

11. The World Bank Page 11 Randi Ryterman Governance & Anticorruption Course 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

12. The World Bank Page 12 Randi Ryterman Governance & Anticorruption Course 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

13. The World Bank Page 13 Randi Ryterman Governance & Anticorruption Course 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)

14. The World Bank Page 14 Randi Ryterman Governance & Anticorruption Course To Contact AskGov Email AskGov@Worldbank.org Call Colum Garrity (x33516) Call TG Leaders Remember to let us know what you think!!!