Addressing institutional issues in the Poverty Reduction Strategy Paper process
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1 SESSION 1 Addressing institutional issues in the Poverty Reduction Strategy Paper process Scoping notes, detailed diagnostics, and participatory processes Public Sector Reform and Capacity Building Unit Africa Region, World Bank
2 Thinking through PRS process Scoping note Conduct more detailed diagnostics Identify critical pathways Decide on actionable steps Initial poverty analysis Participatory dialogue with partners Completion of PRSP
3 Scoping note: institutional underpinnings, options, prospects Which institutions matter most? Evidence on governance-poverty nexus Elements for pro-poor governance Where is country X today? Its institutional capability to reduce poverty How should it proceed? Prospective reform pathways
4 Cross-country data on participatory governance and public management Government effectiveness lowers infant mortality Infant mortality falls with improved voice Log infant mortality SLE AGO MWI GNB MLI SOM LBR MOZ NER TCD ZMB ETH BFA GIN CAF MDG UGA IRGZAR COG BEN MMR GAB PAKYEMTZA LSO TGO CIV SDN NGA HTI ZWE KEN BGD GHA SENGMB SWZ BOL NAM PNG IND BWA CMR PRK GUY EGY IDN ZAF MNG MAR NIC GTM TKM DOM TUR HND PER BRA SYR DZA ALB KGZ ECU VNM CHNPHL TJK SLV THA MEX IRN JOR LBY UZB SUR KAZ COL LBN TUN PRY OMN AZE BGR RUS ROM MDA SAU PAN WTB VEN MUS ARG FJI YUG GEO ARM LKA LVA BHSURY BIH UKR MKD BLR JAM QAT TTO CRI KWTLTUEST MYS CHL PRI SVK BRN HUN POL ARE BHRKOR HRV CYP CUB GRC MLT CZE ISR PRTTWN USA CAN ITA! AUTIRLAUS ISLESP LUX SVN JPN HKG FRADEU NZL NOR DNK SWE FIN GBR NLD CHE SGP Infant Mortality IRG MMR PRK SLE AFG SOM ZAR TJK SDN TKM BDI RWA GNQ BTN VNM SYR DZA CHN CUB UZB LBY NGA IDN AGO LBR GIN MOZ TCD NER DJI ZMB UGA ETH BFA CAF LAOMRT KHM COG GAB TGO CIV YEM LSO HTI PA K TZA GMB NPL ZWE SEN SWZ BGD KEN ERI GHA COM PNG CMR EGY MAR SAU BHR MDV AZE YUG BIH BRN TUR QAT PER KAZ GTM IRN TUN OMN BLR ARE GNB KGZ LBN PRY RUS GEO HRV LKA DOM HND ALB BRA MEX SLV THA ECU PHL JOR SUR WTB COL VEN ROM MYS HKG FJI MDA ARM UKRMKD KWT MWI NIC SGP MDG MLI BOL NAM IND BEN ARGBGR PAN LVA CHL BWA STP GUY CPV MNG ZAF URY JAM LTU EST SVK TWN TTO MUS SLB BHS BLZ POL HUN KOR CYP GRC ISR CZE SVNFRA JPN r = 0.6 CRI BRB MLTUSA CAN PRT ITAESP! ISL AUT NZL LUX GBR IRL NLD AUS DEU DNK NOR CHE 0.5 Government effectiveness Voice and Accountability FIN SWE High % 100 Adult literacy Low % Controlling graft helps literacy High Corruption Graft and corruption Low Corruption
5 In-country data: right complement works in local government as well (2) Quality Merit-based Personnel Management Foster Quality of Services y = x R 2 = LaPaz Trinidad Oruro Sucre El Alto Santa Cobija Cruz Potosi Cochabamba Tarija Meritocracy Poverty Reduction Consultation with Consumers is Desirable For Poverty Reduction Impact y = x R 2 = El Alto Oruro LaPaz Trinidad Santa Cobija Cruz Sucre Potosi Tarija Cochabamba Consultation
6 Institutions that matter most Core Public Management Participatory Governance 1. Empower Organs of representation and participation 2. Expanding opportunities Access to efficient service provision Increasing access to markets 3. Providing security From economic shocks From crime, corruption, violence
7 Institutions that empower the poor Formal organs of participation Fair and transparent electoral processes Power-sharing arrangements other than winner take-all Oversight by political principals Parliamentary oversight Informal and indigenous organs Civil society and associational life
8 Core Public Management Participatory Governance 1. Empower 2. Expanding opportunities Access to efficient service provision Adequate, predictable flow of resources Organs of representation and participation Subsidiarity and flexibility Capable and motivated staff Increasing access to markets 3. Providing security From economic shocks From crime, corruption, violence
9 Institutions that expand opportunity: (a) ensuring access to basic services Adequate and predictable resource flows Pro-poor allocations Transparent budget processes Subsidiarity, flexibility accountability Demarcation of responsibilities Participation in design, delivery, monitoring Information to generate demand-side pressures Capable and motivated staff Merit-based recruitment and pay Within a hard budget constraint
10 Core Public Management Participatory Governance 1. Empower 2. Expanding opportunities Access to efficient service provision Increasing access to markets Adequate, predictable flow of resources Organs of representation and participation Subsidiarity and flexibility Capable and motivated staff Regulatory reform 3. Providing security From economic shocks From crime, corruption, violence
11 Institutions that expand opportunity: (b) increase access to markets Legal and regulatory reform Enforcement of anti-exclusion laws Incentives of deepening land and credit markets Recognition of property rights over physical assets Information On land and credit markets
12 Core Public Management Participatory Governance 1. Empower 2. Expanding opportunities Access to efficient service provision Increasing access to markets Adequate, predictable flow of resources Organs of representation and participation Subsidiarity and flexibility Capable and motivated staff Regulatory reform 3. Providing security From economic shocks From crime, corruption, violence Sound economic management Safeguards against vulnerability
13 Institutions that provide security from (a) economic shock Sound macro management Hard budget constraint for aggregate fiscal discipline Efficient administration of tax and customs Independent central bank Safeguards against vulnerability Access to social insurance through hub-andspoke arrangements
14 Core Public Management Participatory Governance 1. Empower 2. Expanding opportunities Access to efficient service provision Increasing access to markets Adequate, predictable flow of resources Organs of representation and participation Subsidiarity and flexibility Capable and motivated staff Regulatory reform 3. Providing security From economic shocks Sound economic management Safeguards against vulnerability From crime, corruption, violence Recourse, redress, enforcement
15 Institutions that provide security from (b) crime, corruption, violence Enforcement mechanisms Police and courts that guarantee equal protection under the law Independent, adequately funded courts Alternative recourse and redress Anonymous mechanism of registering complaints Alternative dispute resolution
16 Country X s existing capability, prospects, options Core public management High Low Participatory Governance High Low a b c d
17 Diagnosing deeper, taking action d? Scoping note c? Initial poverty analysis Participatory dialogue with partners Completion of PRSP
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