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world development report 2004. Making Services Work for Poor People. WDR 2004 Messages. Services are failing poor people. But they can work. How? By empowering poor people to Monitor and discipline service providers Raise their voice in policymaking
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world development report 2004 Making Services Work for Poor People
WDR 2004 Messages • Services are failing poor people. • But they can work. How? • By empowering poor people to • Monitor and discipline service providers • Raise their voice in policymaking • By strengthening incentives for service providers to serve the poor
MDGs—Global aggregates Eradicate poverty and hunger Universal primary education Source: www.developmentgoals.org
Outcomes are worse for poor peoplePercent aged 15 to 19 completing each grade or higher Source: Analysis of Demographic and Health Survey data
Similar changes in public spending can be associated with vastly different changes in outcomes Sources: Spending data from World Development Indicators database. School completion from Bruns, Mingat and Rakatomalala 2003
A framework of relationships of accountability Policymakers Poor people Providers
A framework of relationships of accountability Policymakers Poor people Providers
PRONASOL expenditures according to party in municipal government Source: Estevez, Magaloni and Diaz-Cayeros 2002
A framework of relationships of accountability Policymakers Poor people Providers
Policymaker-provider:Contracting NGOs in Cambodia • Contracting out (CO): NGO can hire and fire, transfer staff, set wages, procure drugs, etc. • Contracting in (CI): NGO manages district, cannot hire and fire (but can transfer staff), $0.25 per capita budget supplement • Control/Comparison (CC): Services run by government 12 districts randomly assigned to CC, CI or CO
Utilization of facilities by poor People sick in last month Source: Bhushan, Keller and Schwartz 2002
A framework of relationships of accountability Policymakers Poor people Providers
Schools in Uganda received more of what they were due Source: Reinikka and Svensson (2001), Reinikka and Svensson (2003a)
Client-provider:EDUCO Program in El Salvador • Parents’ associations (ACEs) • Hire and fire teachers • Visit schools on regular basis • Contract with Ministry of Education to deliver primary education
EDUCO promoted parental involvement… …which boosts student performance Source: Adapted from Jimenez and Sawada 1999
WDR messages to donors • Harmonize policies and procedures around recipient’s systems • Where possible, integrate aid in recipient’s budget • Finance impact evaluation of service delivery innovations • $300 million a year in Bank projects allocated for evaluation
What are we up against when attempting to improve aid efficiency?