Organisation for Economic Co-operation and Development Second World Forum on Statistics,

1. Organisation for Economic Co-operation and Development Second World Forum on Statistics, Knowledge and Policy “Measuring and Fostering the Performance of Governments” Arturo González de Aragón, C.P.A., Auditor General Superior Audit Office of Mexico Istanbul, Turkey June 28, 2007 1

2. Introduction Valuable opportunity to debate Meeting in Palermo, Italy (2004) “Making Governments Accountable” Heads of the Supreme Audit Institutions (SAIs) of the People’s Republic of China, India and Japan, and a representative from the New York Times Performance assessment system Universally accepted key indicators 2

3. Governmental Accountability Modern supreme auditing = performance analysis and goals & objectives fulfilment assessment Criteria Efficacy Efficiency Economy Accurate and precise indicators to assess governmental management 3

4. Supreme Audit Institutions and Indicators Supreme Audit Institutions  foster performance assessment systems Lack or insufficiency of indicators Search for techniques and resources to conduct revisions and support observations External references  natural option 4

5. INTOSAI (1) International Organization of Supreme Audit Institutions (1953) 186 member countries Increase of technical capabilities Experience and information exchange Performance audits Performance Assessment System

6. INTOSAI (2) Institutional effort to define criteria and a legal framework to carry out performance audits XIX INTOSAI Congress Debate on a Performance Assessment System based on Universally Accepted Key Indicators Mexico City, November 2007 6

7. Indicator Systems Key Indicator System Essential tool for SAIs Definition of vulnerable national areas Adequate public policies design strategy to address national issues Better public resources allocation 7

8. Indicators Nature Identification of their nature Quantitative Qualitative Quantitative data – objective indicators – hard data Information expressed in figures Standardization Qualitative data – subjective indicators – perception Thorough description of events, situations, behaviours, ideological positions, etc. 8

9. Key Indicator System Quantitative and qualitative data weighting Public policies design Measurement and improvement of governmental performance Transparency and sound governmental practices Current situation and future trends Risk areas and improvement opportunities Corrective and preventive measures to ensure attainment of foreseen goals and objectives 9

10. International Benchmarking Supra-national key indicators Comparative assessment “Millennium Development Goals” 48 indicators Structural indicators of the European Union Six strategic areas (economy, employment, research, economic reform, social issues and environment) 10

11. Key Indicators System and SAIs Three “E’s” to measure governmental performance Efficacy Efficiency Economy Three “C’s” to measure citizenry satisfaction Quality of the good or service Competence of the actors Client - citizen satisfaction 11

12. Superior Audit Office (SAO) of Mexico’s Proposal (1) We cannot improve what we cannot measure Performance Assessment System – universally accepted key indicators. PREMISES: FIRST: Public policies design  indicator system  short- and long-term goals and objectives SECOND: Comparison between similar public policies  best practices  gap detection  improvement programs THIRD: Best practices  objectives and goals  maximum outcome yielding at minimum cost  efficiency and efficacy  outcome attainment 12

13. SAO’s Proposal (2) TASKS INTOSAI – OECD – Sound governmental practices Best practices Continuous improvement - Excellence Process re-engineering Supreme Audit Institutions Outcome-focused audits Virtuous circle Sound practices Governance 13

14. SAO’s Proposal (3) Systematization of available indicators Political- Administrative Three societal levels Economy Society

15. Political-Administrative • sound regulatory framework • guarantees • civic liberties • governmental capacity • governance • citizenry participation Political-Administrative • Indicators: • public order • legal assurance • governmental capacity • governance

16. Economy • life-quality • efficient resources allocation • technological progress • employment • fair sharing of produced goods • environment Economy • Indicators: • GDP • Per capita Income • Public Debt • Investments • Public expenditure • life quality • competitiveness • technological progress • macroeconomic stability • employment • markets • trade

17. Society • nutrition • education • health • housing • poverty line • culture • Indicators: • illiteracy and education years • healthy life years • infectious diseases uprooting • housing for all families • adequate nourishment • cultural patrimony sharing: • books, magazines, radio, television, theaters, telephone • information access Society

18. Existing indicators • Organization for Economic Co-operation and Development (OECD) • United Nations Organization (UNO) • World Health Organization (WHO) • United Nations Educational, Scientific and Cultural Organization (UNESCO) • World Trade Organization (WTO) • World Bank (WB) • International Monetary Fund (IMF) • International Transparency (IT) • Agencies • rating • non-governmental for development • national

19. Conclusions (1) • Universally accepted key indicator system: • SAIs  public policies design • Risk areas. Improvement opportunities • Governmental performance • Critical outcomes vision • Rational public resources allocation • Transparency and accountability

20. Conclusions (2) • Key indicator systems  consensual agreement • Universal nature  governmental performance assessment • Domestic indicators  national planning systems design; policies; regional and sectorial plans; short, mid- and long-term programs, and annual budgets

21. Conclusions (3) • Public accountability • Accountability • not a gracious concession • legal, ethical and moral duty

22. Democracy is the system in which subjects rule, those who rule are always ruled, and where rulers and subjects both belong to the one and same society.

23. Mr. Arturo González de Aragón, C.P.A. Auditor General Superior Audit Office of Mexico