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1. Effective Public Management for Development and Democratic Governance: A New Initiative in the OAS Robert Devlin Director of the Department for Effective Public Management (DGPE/SAP) Seminar : Peace, Democracy and Conflict Resolution in the Americas (Washington DC, September 22 – 23, 2010) Insert date here

2. Latin America Has Made Much Progress in the Past 25 Years • Democracy, structural reforms, modernization, etc. But…… • It has lagged behind other developing regions (especially Asia) in competitiveness and economic development /productive upgrading which are keys for: • Structural change • High and sustainable growth rates for economic convergence with rich countries • Major and sustained reduction of poverty Devlin, Moguillansky

3. Latin America is the most Democratic Developing Region* (Regions; percent of countries) Americas Asia Pacific Central Europe–Asia Sub Sahara Africa Middle East-North Africa *Scores of 1.0-5.5 Source: Freedom House 97 % 79 % 72 % 67 % 23 %

4. But Latin America has Lagged in Economic Growth, Transformation and Convergence with Rich Countries Per capita income of high-income countries = 100 % Ireland Finland High Income OECD Singapore Korea Latin America Malaysia Source: Devlin – Moguillansky (2009)

5. The Key Components of Democracy social and economic rights civil and political rights Democratic procedures and institutions Source: IDEA (2009)

6. The Dilemma: What Road to Take? Source: Ameriprise

7. The Importance of the “How” for Effective Public Management of Policies and Programs Public Sector Implementation Implementation Public Policies Development Strategies Public Programs Source: Devlin-Moguillansky (2009)

8. Some Key “First Principles” for Effective Public Management

9. A “First Principle” • Montaigne: “ No wind works for the man who has no port of destination” • A national strategy with a M/L term vision is a key tool to compete internationally, grow and develop with social cohesion: • Proactive attitude • Objective of structural change • Realistic but ambitious goals • Systematic and effective public policies Source: Devlin-Moguillasky (2009)

10. Ireland: Strategic Productive Transformation and Upgrading Source: Devlin-Moguillasky (2009)

11. A “First Principle” A Public-Private Alliance is essential for formulation of development strategies in an era of: • Globalization • Rapid technological changes • Increasing international competition • Predominance of private markets • Democratic participation Source: Devlin-Moguillasky (2009)

12. The Alliance is Necessary Because: • The private sector (broadly defined) provides valuable market information, but it is incomplete • Market failure: information, coordination, technology, capabilities, etc. • Even though the public sector suffers from flaws and incomplete information, it can: • Encourage and lead a strategic national vision in M/L term • Support private sector coordination, access to information, capacities, provide incentives, etc. • Promote growth with social cohesion and poverty reduction. Source: Devlin-Moguillasky (2009)

13. Public-Private Alliances: The Playing Field Dialogue Implementation Area 1 Priorities Strategy Area 2 Consensus / Understanding Public- Private Alliance Consultation Scope Political Context Area 3 Area 4 Imposition Gov-Business-Academia Gov-Business-Academia-Labor Gov-Business-Academia-Labor-NGO Source: Devlin – Moguillansky (2009)

14. A “First Principle” • As the development strategy becomes more structured and specific in goals, there is an increasing need for: • Multidimensional mechanisms of coordination among ministries and agencies. • The coordination becomes even more significant if: • the central government and subnational governments put parallel measures in place • the economy is regionalized Source: Devlin-Moguillasky (2009)

15. Modelsof Effective Public Management Integrated management guided by strategic policy objectives Effectiveness of management Hierarchical control by ministries (“silos”) Degree of complexity and selectivity in objectives of policies and programs Source: Marshall (2009)

16. A “First Principle” • In order for the M/L term strategies to succeed: • Executing agencies should not be politicized • Personnel must have a high level of professionalism, career tracks, technical skills and relative stability. • Agencies and personnel need relative autonomy to implement mandates Under these conditions public agencies can be an effective technical arm of the strategy and display sufficient credibility to effectively collaborate with the private sector: PUBLIC SECTOR MANAGEMENT IS AS GOOD AS THE PEOPLE WHO DO IT!!! Source: Devlin-Moguillasky (2009)

17. A Map of Characteristics of Civil Service Independent and critical thinking Low moral Effective Conservative Active Passive Indifferent Unconditional Dependent and without critical thinking Source: Marshall (2009)

18. Minister of Singapore, The Straits Times, March 3, 2007 “It is necessary to avoid a gap between the wages of public and private sectors in order to recruit qualified personnel who will remain in the public sector; otherwise, Singapore would lose a key advantage over other countries: the existence of a public administration that is honest, competent and effective.” Source: Devlin-Moguillasky (2009)

19. A “First Principle” The Effectiveness of Support Programs and Instruments Depends on How They are Implemented Source: Devlin-Moguillasky (2009)

20. Example of a checklist for Program conceptualization and design (1) • Clarity about the nature of the problem to be addressed Have the objectives been clearly and unambiguously defined, with a view to overcoming a specific constraint? • Additionality It is clear that the program will encourage the desired behavior, be well received by the designate users and does the scale of the financing match the expected actions and results? • Competition Does the program need to be competitive in terms of access? Any answer to this must take into account the capacity to define objectives in terms of social benefits, the ability truly to assess the merits of alternative proposals, administrative costs and user’s potential strategic behavior to obtain preferential treatment. • Consistency What are the possible interactions with other programs and how does the program fit into the overall set to support activities in relation to the identified objective? • Duration: How long will the program need to continue in order to achieve the objective and produce sustainable results? Is there a natural cycle for the development of the objective or should the program be introduced in segments? Is there a plan for ending the program? Source: Devlin – Moguillasky (2009) based on Cutler (2008)

21. Example of a checklist for Program conceptualization and design (2) • Risk calculation: In order to take a calculated risk, is it clear what the risk of program failure is in relation to the potential benefits? If both the risk and the benefits are considered to be high, it may be better to begin with an experimental program and, if this proves satisfactory, expand the program to its full scale on a pilot basis before launching it fully. • Risk management: Have those involved remained alert to possible conflicts with the objectives of other programs, both within and outside the set of programs for the export activity being supported? Given the danger of capture by lobby groups, is there an exit plan for shutting down the program based on its success or failure vis-à-vis the objective? One mechanism that can be considered for the purpose is to set a specific program duration (a sunset clause) that automatically requires an assessment of whether it should be continued or not. Possible abuse of the program on the part of users must be anticipated, by means including studies of the real behavior of agents in the market concerned. • Administration: Does the design of the administrative framework match the complexity of the program and its risks, so as to avoid excessive bureaucratic interference that would discourage its users? Examples of this would include unnecessarily slow processing of requests and disbursement of funds given the amounts involved or the need for timely action. Insofar as accounts or reports are required from those who benefit from the program, efforts should be made to apply procedures that are familiar to those in the industry. Source: Devlin – Moguillasky (2009) based on Cutler (2008)

22. A “First Principle” Structured public-private alliances • representing a diversity of social interests; • well established rules and codes of conduct; • transparency • monitoring and • evaluation modalities with accountability….. can minimize the risks of state “capture” and corruption. Source: Devlin – Moguillasky (2009)

23. Department for Effective Public Management (DGPE) of the Secretariat for Political Affairs (SAP) DGPE Strengthen the institutional capacity of states to manage their development strategies and democratic governance

24. Program Objectives 2010-2011 to Strengthen the Institutional Capacity of States and the Democratic Governance DEPM 1 2 3 Strengthening the executive and the legislature branch institutions for an effective and democratic governance through integral country-strategies of support, compatible with the development strategies Specifically and timely interventions at the request of member states themselves Reorganizing and strengthening the department structure (JAN. 2010) 4 5 Official forums and networks of horizontal cooperation in the field of public management Technical capacity building in the government institutions of member states

25. OAS Department for Effective Public Management (Departamento para la Gestión Pública Efectiva – DGPE) Secretariat for Political Affairs (SAP) CONCEPTUAL FRAMEWORK

26. OAS Department for Effective and Democratic Public Management (Departamento para la Gestión Pública Efectiva (DGPE)) Conceptual Framework

27. OAS/DGPEHigh level Networks and Ministerial Meetings Inter-American Government Procurement Network (RICG) Network of e-Government Leaders of Latin America and the Caribbean (Red GEALC) High-Level Inter-American Network on Decentralization, Local Government and Citizen Participation (RIAD) Forum of Presidents of Legislative Branches (FOPREL) Latin American and Caribbean Council on Civil Registry, Identity and Vital Statistics (CLARCIEV) Meeting of Presidential Chiefs of Staff (upcoming)

28. OAS/DGPE Training Courses of the Institute for Public Management Introducción a la Formulación de Estrategias de Gobierno Electrónico Edición 40; Edición 41 (portugués); Edición 42 (inglés); Edición 43 Aspectos Regulatorios del Gobierno Electrónico Edición 4, 2010; Edición 5, 2010 Interoperabilidad y Procesos Públicos Interinstitucionales Edición 4, 2010 e-Congreso y la Modernización de las Instituciones Legislativas Edición 2, 2010 Cursos de Catastro Información del Curso Convocatorias Abiertas Introducción a la Gestión Catastral Edición 2, 2010 Modernización de la Gestión Catastral Edición 3, 2010 Uso de la Tecnología SIG en el Catastro Edición 3, 2010 Otros Cursos Información del Curso Convocatorias Abiertas Estrategias Efectivas de Comunicación Institucional Edición 2, 2010 Estrategias de Descentralización y Participación Ciudadana Edición 3, 2010 Formulación de Estrategias para la Participación Electoral Edición 2, 2010 Mecanismos y Estrategias para la Promoción de la Transparencia y la Integridad Edición 3, 2010 Sistemas de Gestión y Certificaciones de Calidad, Herramienta de Competitividad para la Administración Pública Young Political Leaders in the Caribbean Edition 2, 2010 Estrategias de Gestión Turística Municipal Integral Edición 1, 2010 Trade and Environment in the Americas 1st Edition, 2010 Estrategias de Atención a la Primera Infancia

29. Special Programs Program for the Universalization of Civil Registry in the Americas (PUICA) MuNet Cadastre MuNet e-GOVERNMENT Guide of Mechanisms for the Promotion of Transparency and Integrity in the Americas

30. Implementation of the Integrated Country Support Strategies for Public Management, in the Executive and Legislative Branches of Selected Countries Institutional Support The following Country Strategy programs are or will be launched: • 2010 Plurinational State of Bolivia (“Bolivia”) El SalvadorParaguay • 2011 (tentative) Grenada / St Lucia Guatemala

31. Advantages the Integrated Country Strategy • OAS only responds to a government request • OAS has no ex-ante prescriptions:ensures that projects in Program reflect the priorities identified by the government itself. • Technical assistance is aimed at concrete management goals expressed in the countries own development strategy/plan. • An initial comprehensive on-site diagnostic mission includes technical discussions with relevant players in different sectors and at different levels of government to learn about their needs. • After field mission, the DGPE prepares an integrated proposal based on the government’s identification of technical assistance needs and on the capacity of the OAS to provide effective support. • Helps governments define in an integrated way its goals and priorities for strengthening public institutions, since front line areas and levels of government work together to provide input for the support strategy. • By understanding the “ big picture” , developed by the government with the support of OAS staff, the OAS and donors can channel technical assistance and funding more effectively and efficiently, promoting synergies and avoiding duplication of effort.

32. Institutional Support Country Program Strategy for Bolivia (2010 - 2014): Effective Public Management for “Vivir Bien“ • Strategic organization of the state and coordination mechanisms. • Implementation of autonomous territorial processes at a departmental and municipal levels, as well as in indigenous communities. • Forums and Mechanisms for transparency, accountability and citizen participation for the citizen oversight. • Management of objectives for the upgrading of production processes and economic development based on the National Development Plan. • Professionalization of the civil service • Modernization of technologies and capabilities of the Plurinational Legislative Assembly (ALP). • Institutional Strengthening of the electoral and the civil Registry body.

33. MTLCC2 MTLCC2 MTLCC3 MTLCC3 MTLCC4 MTLCC4 MRE2 MRE2 EGPP3 EGPP3 EGPP4 EGPP4 MOP2 MOP2 MDPyEP3 MDPyEP3 MDRyT2 MDRyT2 MPD2 MPD2 ALP3 ALP3 ALP6 ALP6 ALP7 ALP7 MMAyA2 MMAyA2 MPD0 MPD0 MDPyEP1 MDPyEP1 MDPyEP2 MDPyEP2 Social Control Control Social MTLCC1 MTLCC1 MRE1 MRE1 ductiva MDRyT1 MDRyT1 MMAyA1 MMAyA1 MRE3 MRE3 MRE4 MRE4 MPRES2 MPRES2 EGPP1 EGPP1 Org. Estrat MOP1 MOP1 Productive Transformation “ VIVIR BIEN ” é MPD1 MPD1 MPD3 MPD3 MOP3 MOP3 MMAyA3 MMAyA3 gica MPD4 MPD4 ALP1 ALP1 ALP2 ALP2 ALP4 ALP4 Autonom í í a Territorial MEF1 MEF1 ALP5 ALP5 ALP8 ALP8 EGPP2 EGPP2 MA1 MA1 MA2 MA2 MPRES1 MPRES1 MEF2 MEF2 RC1 RC1 MA3 MA3 MEDU1 MEDU1 MEDU2 MEDU2 Institutional Support Country Program Strategy for Bolivia (2010 - 2014): Effective Public Management for “Vivir Bien“ MAPPING PROJECTS/ SUBPROGRAMS “VIVIR BIEN” Strategic Organization Territorial Autonomy

34. PROGRAM COORDINATION Each level of coordination will be executed as follows: Program Management Unit (UAP) for the entire program: Representative(s) of the Ministry of Presidency with the Ministry of Foreign Affairs Representative of the Director of the Department for Effective Public Management (DGPE/SAP/OEA) Subprogram Management Unit (UASP), for each subprogram: Subprogram Manager (designated by the Plurinational State of Bolivia) Subprogram Manager (designated by OAS (DGPE Director/SAP/OEA) Subprogram Coordinator ( to be hired) Finance Assistant ( to be hired) Project Management Unit (UGP), for each project: Project Manager (designated by the Plurinational State of Bolivia) Project Manager (designated by the OAS Subprogram Manager) Senior Consultant ( to be hired) Country Program Strategy for Bolivia (2010 - 2014): Effective Public Management for “Vivir Bien“

35. Country Program Strategy for Bolivia (2010 - 2014): Effective Public Management for “Vivir Bien“ PROGRAM COORDINATION The following chart shows the coordination structure of the program: STEERING COMMITTEE MANAGEMENT TECHNICAL DIRECTION PROGRAM MANAGEMENT UNIT (UAP)

36. Country Program Strategy for Bolivia (2010 - 2014): Effective Public Management for “Vivir Bien“ TIMETABLE • 2 – week Field Mission DGPE TEAM (May, 2010) • Preparation of the Program Profile I (July 2010) • Roundtable with Donors in La Paz, Bolivia to begin to coordinate activities (August 2010) • Prioritize and complete profile IIs; of each subprogram project (September 2010) • Meeting between President Evo Morales and Secretary General José Miguel Insulza to sign the Program Agreement(October 2010) • Start of urgent projects (October 2010) • Donor resource mobilization to fully fund implementation of the Program (October 2010 onwards)

37. Country Program Strategy for Bolivia (2010 - 2014): Effective Public Management for “Vivir Bien“ URGENT PROJECTS Design and create the State Service for Autonomy Process (SEA) Facilitate dialogue for the National Autonomy Council Facilitate transparency and citizen oversight in the management of municipal budgets Modernize the processes, procedures, capabilities and technologies of the Plurinational Legislative Assembly Strengthen and Decentralize the Civil Registry and Interconnection Services. Support a law and system for attracting FDI.

38. GRACIAS! OBRIGADO! MERCI! THANK YOU!