Capacity-Building and Reform in Developing Countries : Linking Policy and Politics

1. Capacity-Building and Reform in Developing Countries: Linking Policy and Politics The qualityof public sectororganizations has provedto be highlysignificant for economicgrowth, povertyreduction, reducedincomeinequality, improvedhealth etc. How do we get there? -National characteristics -International dimension

2. Outline • Introducing ourselves & our research: • Key questions • Background • Main Findings • Future Research • 3 Take-Away Points • Discussant • Q&A

3. Background: The State & Human Welfare • What we know: • Strong capable democracies are the most welfare enhancing form of political organization • What we don’t know: • How do you get it? • The West followed one particular recipe: • First state became strong, then democratic • Developing countries today following another: • Democratizing first, before becoming strong

4. Research Question • Key Research Question: • What are the consequences for human development of ‘reverse sequencing’ (democratizing before the state becomes strong)? • Main Research Finding: • Reverse sequencing can lead to more corruption, lower administrative capacity (i.e. states that are democratic but not strong & capable)

5. Democracy and Administrative Capacity in the World

6. Research Findings Mechanisms: • Democracies can’t use coercion to solve collective action problems & it becomes harder to state-build • Concrete case study: Taxation in Rwanda & Lesotho • Democracychangeselite-ruler relations, destabilizingrulers & increasing the importanceofpatronage (corruption) • Concrete case study: Food Security Policy in Malawi

7. Taxation in Rwanda & Lesotho • Question: • Are there differences in how they go about collecting tax in Rwanda (autocracy) compared to Lesotho (democracy)? • Methods: • Interviews with RRA & LRA officials & detailed process tracing • Findings: • Rwanda – use tax as a form of state-building to extend control of state over population (eg. aggressively extending tax-net). Have succeeded in increasing direct taxes. • Lesotho – avoid using tax to state-build - ‘too politically sensitive’ (instead emphasize voluntary compliance). Have not succeeded in increasing direct taxes, still reliant on trade

8. Food Security Policy in Malawi 1964-2009 • Question: • How did democratization impact on food security in Malawi? • Methods: • Diachronic comparison before & after multi-party elections in 1994 • Findings: • Democratization destabilized elite-ruler relations which led to: • Fragmentation of policy making, as it became arena for elite competition • Undermined capacity of bureaucracy to implement, as patronage increased • Affected relationship with donors, concerned about corruption • Grain sold to Muluzi supporters → shortages

9. Future Research • Party Systems & Elite Behaviour: are consolidated parties the missing link in containing elite behaviour & connecting elites to voters? • Compare Kenya & Ghana • Taxation & Democracy: has democracy made governments more accountable to private sector than to voters? • Quantitative Study of all 48 African countries

10. 3 Main Take Away Points 1) The West followed one particular recipe: • Strong first, democratic second Developing countries today following another: • Democratizing first 2) This may not lead to the same outcome: • Reverse sequencing can lead to more corruption, lower administrative capacity 3) We need to think more critically about the component parts of good governance – democratic institutions, bureaucracy, rule of law – and how sequencing in development of these institutions matters

11. Background: Administrative reforms in developing countries • The main research discourse Do not transfer Western models to developing countries • Bad experiences • Build on local knowledge and local circumstances • Significant adjustments • Routine explanation • A lack of empirical studies on public officials

12. Key research questions • How do public officials (i.e. public auditors) perceive what is legitimate structures and practices? • How do they reform their organizations? • How may problems of implementation be understood?

13. The State Audit Case (Riksrevisioner)Research Design and Data • Three parts: 1. Arenas 2. NAO Namibia 3. NAO Botswana • Methods • Observations (ap.100h + informal conversations) • Document studies • Personal interviews (59 with 46 persons)

14. Main findings • Arenas • Harmonization in line with international (Western) standards • When gap between international and local, discussed how to change the local norms • NAO Namibia & Botswana • Continuous change to achieve higher compliance with standards • Problems of implementation • Underestimation of time and support needed • Management • Motivation

15. Future Research • Professionalization of public sector officials in African countries • The role and impact on audit on public sector performance: • Quantitatively: Cross-country comparative research, developing + developed countries • Qualitatively: The dynamic interplay between audit and non-state actors

16. 3 Main Take Away Points • Professionals & Actors: • International instead of West – Africa • Not merely historic legacies & local conditions shape attitudes and action, identities are more dynamic 2) Sharing common understandings and practices –enables cooperation, internationally – regionally 3) Be critical to routine explanations: Ground conclusions on empirical work