1. Recourse “from below” : Strengthening Systems for Accountability and Global Governance Werner Kiene Chairman Serge Selwan Operations Officer The World Bank Inspection Panel Marrakech, Morocco July 22, 2009

2. Political Institutions Political competition, broad-based political parties Transparency & regulation of party financing Citizens Local Governments & Communities Decentralization with downward accountability Community Driven Development (CDD) Oversight by parent-teacher associations & user groups Civil Society & Media Right to information Freedom of press Civil society watchdogs Private Sector Contracting out Extractive Industry Transparency Initiative Collective business associations Executive Transparent budgeting & procurement Civil service meritocracy & adequate pay User participation & Accountability in service delivery agencies Complexity: Issues in National Accountability System Actors, Functions and Problems of accountability breakdowns Outcomes: Services, Corruption, Inequity Formal Oversight Institutions Independent judiciary Legislative oversight Independent oversight (SAI) Global initiatives: UN, OECD Convention, anti-money laundering State Capture Patronage & nepotism administrative corruption

3. CSO and IFIs: Three key relationships 1. CSO and the Bank as an intern. Institution 1. Directly 2. Through their Representative on the Ex. Board 2. CSO and the Bank as financier of specific projects and programs 3. CSO an the Bank as a supporter of improved governance and accountability in Partner Countries

4. Financial Institutions within the overal Accountability System YES ! : In development we make mistakes. BUT there are safeguards and “checks and balances” to minimize and correct them Financial institutions “preaches accountability and good governance ” (DGG !) BUT also lives by it. Financial institutions have: Policies, Procedures, Rules Evaluation, Audit Corruption investigations The Inspection Panel (and similar mechanisms)

5. Governance / Accountability Innovations:  Supply-side  Supply-side: Capacities and organizational arrangements in government institutions –human resource & financial management systems – to deliver public goods and services and control them  Demand-side  Demand-side: Capacities of non-Executive institutions & accountability arrangements – elections, political parties, parliaments, judicial systems, private sector, media, civil society organizations, local communities – that enable citizens and firms to hold public institutions to account

6. Countries differ in “supply”/”demand” approaches Trajectories are driven by political forces Key issue: How to sequence reforms? Key issue: Role of CSO Executive Capability Quality of checks and balance institutions Ι ΙΙ ΙΙΙ Source: Global Monitoring Report, 2006 Reforming accountability systems : In some countries, this will mean moving from reforms of bureaucracy to support checks and balances

7. A steady shift of the Development paradigm Development “from the top” Development “at the base” Development “from” below Similar shift in the Accountability paradigm Accountability “to the top” i.e to financiers Accountability “initiated by the top” Accountability “initiated from below” We are part of important shift : From “Push” mechanisms To “Pull” mechanisms

8. Examples of “New Demand-led” initiatives… from “below”… from the “affected” 1. At level of Projects / Programs: “Participatory Budget- and Public Expenditure Tracking” “Community Score Cards” “Citizen Report Cards” 2. At level of Dev. Institutions: Independent Grievance Mechanisms  World Bank Inspection Panel  Copied now by other Int. Financial Institutions  Discussions on similar mechanisms in other organizations  In Developing Countries ??

9.  1:Policies/Procedures (Safeguards and Standards)  2: Inspection Panel / CAO / IRM Important internal accountability “innovations” in the development Banks to support this shift to “bottom-up paradigm”

10. Core Project Objective “What to do” Objectives “How to do” Objectives Social Safeguards Environmental Safeguards “How to do ” Objectives Requirements on consultation ………..on project design …………..on supervision World Bank Vision: A World Without Poverty 1.Innovation: “ Safeguards, Policies and Procedures” Do the “right” things….. But also do them right

11. The logic behind a Complaint to the World Bank Inspection Panel Harm or Fear of harm Implementation by national/local organization Legal Project Agreement Project Document CASProject Idea Designed outcomes Nat. Govmt World Bank Bank Policies/ Procedures Implementation Plan Nat Policies Complaint Affected Pop. CSO’s

12. Conclusion One: Accountability is essential Bank and CSO are important partners 1.In Bank’s own governance 2.In assisting in governance expansion among its partners Key ingredients of accountability are 1.Information disclosure 2.Recourse There is a need to learn and teach about universal and specific skills to manage and enhance accountability This is overarching purpose of workshop

13. Conclusion Two: Shift in the Accountability paradigm Demand-led Accountability, “initiated from below” is central for success New demand-led institutions are emerging and need to be further developed and experiemented with… Bank pushes DGG World Bank Inspection Panel is a model: Ingredients can be adapted BUT note Demand and Supply interaction

14. Conclusion Three: “Recourse mechanisms”….The next “frontier” to support the move to more democracy and sustainable development:  With structure and budget  With procedures  With independence

15. www.inspectionpanel.org ipanel@worldbank.org