Designing & Sequencing Reforms

1. The World Bank The Art of Designing & Sequencing Reforms Core Course on Governance and Anticorruption PRMPS & WBIGP Presented by: Randi Ryterman Sector Manager Public Sector Group February 14-17, 2005 Presented to:

2. Topics • Review and apply key tools thru two mini-cases • 20 minutes table discussion • 20 minutes class discussion • Thoughts on design & sequencing • When all else fails, what do you do? Resources to help you along the way

3. Tale of Two Countries • Using the governance triad, identify some of the possible governance issues – both strengths and weaknesses – in the country. • You have the budget to implement one diagnostic. Which do you choose? What do you hope to learn? • What are some of the types of governance reforms that might be appropriate in this setting? What are some of the possible entry points?

4. Delegation of Implementation Delegation and Voice Political Accountability Internal Accountability Public Goods and Services Client Power/Social Accountability The Governance Triad Politicians/ Policymakers Citizens Bureaucrats

5. Meritocracy Leadership Systems Food for Thought Foundation of good governance everywhere Essential in low capacity settings Mutually reinforcing only in high capacity setting

6. Entry Points Enclaves Competition More Food for Thought Think organizational, sectoral, and subnational A means, not an end Use it in the design of both the reform and operation

7. Thematic Groups 200+ public sector specialists mapped to the PSGB with a diverse training in: • Public Finance • Public Administration • Law • Political Science • International Relations • MBAs • Economics

8. Administrative & Civil Service Reform Gary Reid (X30895) Ranjana Mukherjee (X34301) Governance & Anticorruption Ed Campos (x84083) Decentralization Dana Weist (x82210) … organized in 6 Thematic Groups Tax Tuan Minh Le (x38485) Legal Institutions Rick Messick (x87942) Luba Beardsley (LEG) Public Expenditure Management Bill Dorotinsky (x37189) Anand Rajaram (x82359)

9. Websites

10. Governance Trust Funds • BNPP • Governance & Capacity Building windows • Untied; IDA only; Africa and post-conflict preference • June call for CY06 proposals (about $4 million) • Proposed Norwegian TF • Untied; IDA, Africa, and post-conflict preference • February-March call for proposals (about $4 million)

11. A A G G A A G G S S OV OV S S OV OV Just in Time Advisory Services & Knowledge for Public Sector Governance Services – for internal clients only Information services (Pakistan – public official questionnaires; AFR – HD performance indicators) TG-specific & integrated advisory services (Afghanistan – MoF restructuring; Moldova – governance in CEM; Sudan – federalism) Peer reviews and QERs (Bangladesh – PER review; Ethiopia – review of PCN for decentralization fiscal support; Paraguay – QER for MoF project) Clinics on special topics for project teams (SAR civil service retrenchment; India VAT implementation; Lesotho implementing and sequencing MTEF; Vietnam IFMIS)

12. By Whom?Everyone in the Network!!! Experienced staffwill dedicate 1-2 s/w each to advisory activities • Incentives to participate: • Intrinsic motivation ofreciprocity – the interdependence & coordination norms that characterize internal networks within the Bank • Showcase individual & group staff & regional work as a means not only for reputation enhancement within the Bank, but to provide better service delivery • Direct recognition (e.g., through the promotional process).

13. A A G G A A G G S S OV OV S S OV OV Just in Time Advisory Services & Knowledge for Public Sector Governance Types of Services Provided Clinics & Information Workshops (e.g., JiT facts, Monitoring reports presented to PSGB quarterly –(around 140 services provided in FY05-Q1) (e.g., VC with TORs, a CMU and/or Websites) client) 18% 24% JIT Advisory Services, Peer Reviews Quick & Comments Professional (e.g., on ESW, Advice Operations) 29% 29% (Note: Preliminary, based on 1st month of operation, October 25 to Nov 29, 2004; 27 working days; 84 official counts) 13

14. A A G G A A G G S S OV OV S S OV OV Just in Time Advisory Services & Knowledge for Public Sector Governance Direct Services to other Networks (Preliminary, based on 1st month of operation) WBI HD SDV 15% 23% 8% IMF 8% PSD or IFC 15% Infrastructure 8% LICUS OPCS 8% 15% (Note: Preliminary, based on 1st month of operation, October 25 to Nov 26, 2004; 27 working days, 84 counts) 14

15. A A G G A A G G S S OV OV S S OV OV Just in Time Advisory Services & Knowledge for Public Sector Governance The World Bank Thematic Groups Who Provided the Services Administrative & Civil Service Reform TG Tax Administration TG 4% 13% Public Expenditure TG (& PEFA) Decentralization TG 32% 19% Multi-Thematic 2% Legal-Judicial Reform TG Governance & Anticorruption TG 12% 18% (Note: Preliminary, based on 1st month of operation, October 25 to Nov 29, 2004; 27 working days; 84 official counts) 15

16. To Contact AskGov • Email AskGov@Worldbank.org • Call Colum Garrity (x33516) • Call TG Leaders • Future website • Remember to let us know what you think!!!

17. PSG Portfolio About 19% of the World Bank new lending (both in terms of the number projects and dollar commitments) in FY04 was made on governance themes, of which: Source: Business Warehouse, November 24, 2004.

18. Q & A