Addressing institutional issues in the Poverty Reduction Strategy Paper process

(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

SESSION 1

(2)

Thinking through PRS process

Scoping note

Decide on actionable steps Identify

critical pathways Conduct more

detailed diagnostics

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

AGO

ALB

ARE ARG ARM

AUS AUT AZE

! BENBFA

BGD

BGR

BHR BHS

BIH BLR

BOL

BRA

BRN BWA CAF

CAN CHE CHL

CHN CIV

CMR COG

COL

CRI

CUB CYP

CZE

DEU DNK DOM

DZA ECU

EGY

ESP EST

ETH

FIN FJI

FRA GAB

GBR GEO

GHA GIN

GMB GNB

GRC GTM

GUY

HKG HND

HRV HTI

HUN IDN

IND

IRL IRN

IRG

ISL ISR

ITA JAM

JOR

JPN KAZ

KEN

KGZ

KOR KWT

LBN LBR

LBY

LKA LSO

LTU

LUX LVA

MAR

MDA MDG

MEX

MKD MLI

MLT MMR

MNG MOZ

MUS MWI

MYS NAM NER

NGA

NIC

NLD NOR NZL OMN PAK

PAN PER PHL PNG

POL PRI

PRK

PRT PRY

QAT RUSROMSAU

SDN SEN

SGP SLE

SLV SOM

SUR

SVK

SVN

SWE SWZ

SYR TCD

TGO

TJK THA TKM

TTO TUN TUR

TWN TZA

UGA

UKR

URY

USA UZB

VEN VNM

WTB YEM

YUG

ZAF ZAR

ZMB

ZWE

0.5 1.5 2.5 3.5 4.5 5.5 6.5

Government effectiveness

Government effectiveness lowers infant mortality

Log infant mortality

0 10 20 30 40 50 60 70 80 90 100

-2.5 -1.5 -0.5 0.5 1.5 2.5

Controlling graft helps literacy

High %

Low %

High C orruptio n Low C orru ption

Graft and corruption Adult literacy

Infant mortality falls with improved voice

AFG AGO

ALB

ARE

ARG ARM

AUS AUT AZE

BDI

! BEN

BFA

BGD

BGR

BHR

BHS BIH

BLR

BLZ

BOL

BRA

BRB

BRN BTN

BWA CAF

CAN CHE CHL

CHN

CIV

CMR COG

COL

COM

CPV

CRI

CUB

CYP CZE

DEU DJI

DNK DOM

DZA ECU

EGY ERI

ESP EST

ET H

FIN FJI

FRA GAB

GBR GEO

GHA

GIN

GMB

GNB

GNQ

GRC GTM

GUY

HKG HND

HRV HTI

HUN IDN

IND

IRL IRN

IRG

ISL ISR

ITA JAM

JOR

JPN KAZ

KEN

KGZ KHM

KOR KWT

LAO

LBN LBR

LBY

LKA LSO

LTU

LUX LVA

MAR

MDA MDG

MDV MEX

MKD MLI

MLT MMR

MNG MOZ

MRT

MUS

MWI

MYS

NAM NER

NGA

NIC

NLD NOR NPL

NZL OMN

PAK

PAN PER

PHL

PNG

POL PRK

PRT

PRY

QAT

RUS ROM

RWA

SAU

SDN SEN

SGP

SLB SLE

SLV SOM

STP

SUR

SVK

SVN

SWE SWZ

SYR

TCD TGO

TJK T HA

TKM

TTO TUN

TUR

TWN

T ZA

UGA

UKR

URY

USA UZB

VEN

VNM

WTB YEM

YUG

ZAF ZAR

ZMB

ZWE

1.5 2.5 3.5 4.5 5.5

-2 -1.5 -1 -0.5 0 0.5 1 1.5 2

Voice and Accountability

Infant Mortality

r = 0.6

(5)

In-country data: “right” complement works in local government as well (2)

Merit-based Personnel Management Foster Quality of Services

LaPaz

Trinidad

Sucre

El Alto Oruro

Potosi Santa Cruz Cobija

Tarija Cochabamba y = 0.5825x + 24.174

R² = 0.5217

40 45 50 55 60 65 70 75

Meritocracy

Quality

Consultation with Consumers is Desirable For Poverty Reduction Impact

LaPazTrinidad

Sucre El Alto Oruro Potosi

Santa Cruz Cobija

Tarija Cochabamba y = 2.0499x - 53.165

R² = 0.6148

30 40 50 60 70 80

40 45 50 55 60 65

Consultation

Poverty Reduction

(6)

Institutions that matter most

1. Empower

2. Expanding opportunities

3. Providing security

Access to efficient service provision

Increasing access to markets

From economic shocks From crime, corruption, violence

Core Public Management

Participatory Governance

Organs of representation and participation

(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)

1. Empower

2. Expanding opportunities

3. Providing security

Core Public Management

Participatory Governance

Organs of representation and participation Adequate, predictable

flow of resources

Subsidiarity and flexibility Capable and motivated staff

(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)

1. Empower

2. Expanding opportunities

3. Providing security

Core Public Management

Participatory Governance

Regulatory reform

(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)

1. Empower

2. Expanding opportunities

3. Providing security

Core Public Management

Participatory Governance

Sound economic management

Safeguards against vulnerability Regulatory reform

(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-and-

spoke arrangements

(14)

1. Empower

2. Expanding opportunities

3. Providing security

Core Public Management

Participatory Governance

Sound economic management

Safeguards against vulnerability

Recourse, redress, enforcement Regulatory reform

(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

High Low

High Lo w

Participatory Governance

Core public management

a

b

c

d

(17)

Diagnosing deeper, taking action

Scoping note

Initial poverty analysis Participatory dialogue with partners Completion of PRSP