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6 th ARMFA General Meeting Anatananarivo, Madagascar Technical Workshop 8 th - 9 th October 2007. Achieving Good Governance Stephen Vincent global Transport Knowledge Partnership (gTKP). Achieving Good Governance. 1. What is “Good Governance”. Good Governance. - “Fair play”
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6th ARMFA General MeetingAnatananarivo, MadagascarTechnical Workshop 8th - 9th October 2007 Achieving Good Governance Stephen Vincent global Transport Knowledge Partnership (gTKP)
Achieving Good Governance 1. What is “Good Governance”
Good Governance • - “Fair play” • - Value for money • Principles understood in every language and in every culture ARMFA Antananarivo 9th October 2007
Good Governance in Transport • - Effective and efficient institutional and management arrangements • The provision of a reliable, safe and secure transport system • Responding to the needs of the poor and marginalized sections of society • Providing the enabling environment for developing markets • Charles Melhuish • Former Lead Transport Specialist, Asian Development Bank ARMFA Antananarivo 9th October 2007
OVERVIEW – the “big picture”Outputs from Good Governance in the Road Sector Government Policy & Regulation ROAD ADMINISTRATION OUTPUTS - Good Roads - Public Transport - Freight Services - Efficiency - Value for Money Good Governance ROAD FUND • PRIVATE SECTOR • Contractors • Transport Operators ARMFA Antananarivo 9th October 2007
Getting things right:Benefits of Good Governance in the Road Sector GOOD GOVERNANCE OUTPUTS - Good Roads - Public Transport - Freight Services - Efficiency - Value for Money Strong Economy Poverty Reduction Votes in Elections! ARMFA Antananarivo 9th October 2007
King Report 2002 – Corporate Governance(South Africa) • The seven characteristics of good corporate governance: • Discipline • Transparency • Independence • Accountability • Responsibility • Fairness • Social responsibility ARMFA Antananarivo 9th October 2007
Achieving Good Governance 2. Existing solutions
Good governance - existing solutions:(1) Road Fund Board • - Independent Chairman • - Private sector/road stakeholder representation ARMFA Antananarivo 9th October 2007
Good governance - existing solutions:(2) Policies, Legislation and Regulation • Policy framework that promotes good governance • Organisation structure that supports good governance • Carefully drafted legislation ARMFA Antananarivo 9th October 2007
Good governance - existing solutions:(3) Objective decision processes • Decision processes written down and understood by all • Accurate data • Decision support analysis software (eg setting priorities) • Full details published in the public domain ARMFA Antananarivo 9th October 2007
Good governance - existing solutions:(4) Audit regime • Technical audit • Financial audit ARMFA Antananarivo 9th October 2007
Are these existing solutions working? ARMFA Antananarivo 9th October 2007
Achieving Good Governance 3. Assessing performance
Is good governance being achieved? • gTKP governance roundtable discussions • March/April 2007 in Asia, Africa, Washington • There are still extensive governance problems in the road sector! ARMFA Antananarivo 9th October 2007
Examples of poor governance(from Arusha gTKP roundtable April 2007) • Political influence of operational decisions • Widespread corruption • Staff lacking appropriate skills • Lack of accountability • Failure to control vehicle overloading • Poor representation of civil society • Lack of support for “whistleblowers” ARMFA Antananarivo 9th October 2007
Difficulties with measuring performance • Managers/Politicians don’t want to hear bad news • Problems obtaining accurate/objective data • Need feedback mechanisms to act on results • Need sector/overall results (not individual projects) ARMFA Antananarivo 9th October 2007
Is the management of road assets effective, efficient and giving value for money? Is the road network providing the service that road users need? Road user needs Is appropriate information in the public domain to assess both value for money and accountability in the road sector? Value for money Transparency Does the road sector have appropriate staffing, skills and technical solutions? Skills & Technology Has a realistic assessment of road sector funding requirements been made, and are reliable and sustainable funding mechanisms in place? Funding Road Sector Performance(example of proposed “key questions” approach) ARMFA Antananarivo 9th October 2007
Problems understood but not being solved Problems not understood (or being ignored) Key questions - measurement values • Understandable by everyone • Including: • Road Users • Politicians • Media Example of good practice Satisfactory Minor failings Cause for concern Serious cause for concern ARMFA Antananarivo 9th October 2007
Key questions - Status/Priority Matrix Serious cause for concern Cause for concern Minor failings Satisfactory Example of good practice Road user needs Value for money Transparency Skills & Technology Funding Action plan needed! ARMFA Antananarivo 9th October 2007
Performance: Road asset value predictions Predicted effect of intervention (eg organisational reform) Annual, audited road asset valuation valuation of road assets Original pessimistic prediction if no action is taken Corrective action taken as a result of measurement 0 5 years ARMFA Antananarivo 9th October 2007
Discussion / Interaction Government Road users Performance measurements International agencies ARMFA Antananarivo 9th October 2007
Achieving Good Governance 4. Improving governance
Understand the different levels at which governance needs to work Governance Environment Political obstruction from Government Ministers is very difficult to overcome! Institutional reform/reorganisation takes a long time to implement Institutional Operational Working procedures are difficult to change Training is needed if there are skill deficiencies ARMFA Antananarivo 9th October 2007
Performance measurement as a tool for continuous improvement ARMFA Antananarivo 9th October 2007
Isolated actions to improve governance Approach A: Localised actions ROAD SECTOR Political interference Poor decisions Corruption ARMFA Antananarivo 9th October 2007
Overall performance measurement driving actions to improve governance Approach B: ROAD SECTOR Measure & improve overall performance Political interference Many actions Poor decisions Corruption ARMFA Antananarivo 9th October 2007
Business Process Reengineering: work backwards from the output to design systems - Refine every Activity to improve the output - Eliminate Activities wherever possible - Rethink who does what - Rethink how things are done - The best process should also result in good governance Activity Output ARMFA Antananarivo 9th October 2007
Transparency • Re-assess what should be in the public domain • How should information be made available? (eg - use the Internet?) • Is civil society able to interpret the data provided? • What feedback mechanisms exists to act on results? • Transparency can assist in driving improvement ARMFA Antananarivo 9th October 2007
The role of civil society in governance • The important role of civil society was highlighted in the gTKP roundtable discussions. • Civil society needs both data about roads and the skills to analyse this data. • Must be realistic about what can be achieved through voluntary assistance! ARMFA Antananarivo 9th October 2007
Stakeholders/Civil Society Example: 1998 road users workshop in Pakistan ARMFA Antananarivo 9th October 2007
Pakistan 1998 road users workshop ARMFA Antananarivo 9th October 2007
Leadership in improving governance • Nothing will change without strong leadership from the top of an organisation. • Leadership must be realistic – understand how long changes will take. • Leadership must identify and remove obstacles. ARMFA Antananarivo 9th October 2007
Unique solutions • Each country needs its own unique solution • Depends on politics, culture & skills available • Exchanges of experience between countries can speed up finding sustainable solutions ARMFA Antananarivo 9th October 2007
Achieving Good Governance 5. Potential for gTKP to assist
global Transport Knowledge PartnershipgTKP • A partnership for international exchange of knowledge about transport. • Governance in Transport is one of the focus areas of gTKP. • A workplan for governance has been developed from the results of roundtable discussions in Asia, Africa and Washington. ARMFA Antananarivo 9th October 2007
gTKP Governance in Transport gTKP Governance in Transport Roundtable at Asian Development Bank Manila 07-08 March 2007 Delegates: India, China, Indonesia, Bangladesh, Malaysia, Australia, Philippines ARMFA Antananarivo 9th October 2007
gTKP Governance in Transport Infrastructure Governance Roundtable World Bank, Washington – 30 March 2007 ARMFA Antananarivo 9th October 2007
gTKP Governance in Transport gTKP Governance in Transport Roundtable Discussion Arusha, Tanzania 19 April 2007 ARMFA Antananarivo 9th October 2007
Potential for ARMFA and gTKP to work together • Capture and exchange case study experience • Develop benchmarks to compare progress. • Book about road infrastructure to educate the public, politicians, and the media. • Identify country knowledge champions. • Workshops, seminars and online discussions. ARMFA Antananarivo 9th October 2007
Conclusions • Governance remains a problem in the road sector • Recommendation to focus on: - Overall performance of the road sector - Transparency to put data in the public domain - Civil society’s role in improving governance • gTKP can assist in gathering and exchanging knowledge ARMFA Antananarivo 9th October 2007