1. Impact-orientation of decentralization policies in Bolivia Marcelo Renjel, Kathrin Lorenz

2. Objectives 2. Present and discuss experiences for decentralization support in implementing impact-oriented change management 1. Present the linkages between decentralization policy and poverty reduction in Bolivia

3. Poverty reduction in the context of the Bolivian decentralization process Decentralization of major state reform process (begun in 1985) Decentralization of major state reform process (begun in 1985) Popular Participation Law - Recognition of social organisations (rigths and duties) - Resources and responsabilities for delivering social infrastructure and services Popular Participation Law - Recognition of social organisations (rigths and duties) - Resources and responsabilities for delivering social infrastructure and services Administrative Decentralization Law (deconcentration at intermediary level) Administrative Decentralization Law (deconcentration at intermediary level)

4. Poverty reduction in the context of the Bolivian decentralization process Bolivian PRSP - built on national dialogue - municipalization of resources and responsabilities - introduced pro-poor formular for resource allocation (National Compensation Policy) - extended the social control mechanisms to the departamental and national levels Bolivian PRSP - built on national dialogue - municipalization of resources and responsabilities - introduced pro-poor formular for resource allocation (National Compensation Policy) - extended the social control mechanisms to the departamental and national levels

5. Existing problems: decentralization as a tool for PRSP implementation Lack of ownership for PRSP at all levels Lack of ownership for PRSP at all levels Lack of focus and setting priorities Lack of focus and setting priorities Focus on redistribution (assistencialism) vs. system of incentives Focus on redistribution (assistencialism) vs. system of incentives Lack of budget tracking and other monitoring mechanisms Lack of budget tracking and other monitoring mechanisms Weak capacities at all levels for implementation Weak capacities at all levels for implementation

6. Thematic pillars: Integral approach on decentralization policy support with four thematic pillars (decentralization, public administration, social equity, civil society-public sector interaction) Thematic pillars: Integral approach on decentralization policy support with four thematic pillars (decentralization, public administration, social equity, civil society-public sector interaction) Counterpart institutions: Integral approach through wide range of counterparts at all levels, improving possibilites for feed-back and upscaling (Policy design process on national level (concurrence, subsidiarity and articulation between levels), capacity building for institutional development, Local planning; civil society empowerment (FAM and social control mechanisms). Counterpart institutions: Integral approach through wide range of counterparts at all levels, improving possibilites for feed-back and upscaling (Policy design process on national level (concurrence, subsidiarity and articulation between levels), capacity building for institutional development, Local planning; civil society empowerment (FAM and social control mechanisms). GTZ Programm supporting decentrlaization and poverty reduction in Bolivia, since 2001

7. Impact-oriented management for poverty reduction Introducing impact-oriented management in changes processes of the counterparts and for overall programm management of PADEP. Introducing impact-oriented management in changes processes of the counterparts and for overall programm management of PADEP. Underlying assumption: better outcomes at the level of counterparts lead to impacts on national policy goals such as poverty reduction. Underlying assumption: better outcomes at the level of counterparts lead to impacts on national policy goals such as poverty reduction.

8. Results Chain Impact of national policies in Bolivia for the population Outcome of decentralization support at actor level (institutions) Change management with counterparts

9. Impact oriented change processes Impact orientation in planning, implementation, monitoring and management of change processes Positive outcomes and milestones are defined together with the counterpart institutions and always in light of their possible contribution to impacts Macro orientation and micro flexibility: duration of 2- 3 years, periodic monitoring along milestones Impact-oriented management in specific change processes of counterparts Impact-oriented mangement of PADEP

10. Impact orientation as management tool Bolivian policy goals of decentralization Decentralization Public Administration Social Equity Civil Society/ Public Sector- Interaction Change Process Impact contributions Management

11. Lessons learned Sequencing implementation of management system: actor-based and bottom-up approach as first step Sequencing implementation of management system: actor-based and bottom-up approach as first step Impact orientation as management tool Impact orientation as management tool Change management processes with counterparts: ownership and sustainability Change management processes with counterparts: ownership and sustainability Internal management tool vs. management tool for government Internal management tool vs. management tool for government Actor impacts vs. structural impacts Actor impacts vs. structural impacts

12. Challenges for decentralization Improve implementation of decentralization policies, for instance via the application of results-based management instruments in all key institutions (First experiences with PADEP‘s management instrument: Not sustainable for government YET) Improve implementation of decentralization policies, for instance via the application of results-based management instruments in all key institutions (First experiences with PADEP‘s management instrument: Not sustainable for government YET) Design systems of incentives to promote pro- poor policies at local level (MDGs) Design systems of incentives to promote pro- poor policies at local level (MDGs) Improve articulation between levels in the new constitution Improve articulation between levels in the new constitution