“Results-Based Public Sector Management in Support of the MDGs”Â

1. Dr. Michael Lindfield Lead Urban Development Specialist Asian Development Bank Prioritization of MDG targets within the resource envelope of sub-national governments: A model from the urban sector “Results-Based Public Sector Management in Support of the MDGs”  Flagship Conference of the Asia-Pacific Community of Practice on Managing for Development Results (APCoP), UNDP, and UNESCAP 13-15 June 2012, Bangkok, Thailand Session 8: Parallel Sessions: Implementation of the MDGs at the Local Level

2. Outline of presentation The session will discuss • variables in a matrix of top-down planning/budgeting and bottom-up priorities/agenda setting that have an impact on the implementation of urban projects in the context of decentralization. • Context of Asian Cities • Decentralization and Devolution – Fiscal and Administrative • Tiers of Governance  Link to Finance • Top down Planning-Budgeting = High reliance of local governments in Asia on budget allocations from national governments. • Bottom-up Prioritization • Political Priorities = champion projects / High profile projects • City-wide needs • MDG targets (for urban poor) • Planning-Budgeting  Implementation = weak linkages • Tool for Project Prioritization

3. Asia's Urban Poverty Challenge . Cities on average provide 80% of the economic base — but large disparities have emerged as poverty has urbanized – over 200 million people live in poverty in Asia’s cities and many more are vulnerable to economic and environmental shocks. MDG 7 targets improving the lives of 200 million slum dwellers. Addressing the needs of these poor requires: > New forms of engagement > New forms of finance and > The flexibility to adapt to the circumstances of each community

4. Millennium Development GoalsGlobal Targets Monitoring and Reporting Development priorities and actions

5. Prioritization of MDG targets • Are the MDG indicators and targets prioritized efficiently and effectively in resource allocations of the Local Government Budget? • Do the local governments in Asia have the capacity and tools to assess and prioritize for planning results and set priorities? • What decision making tools can help them in choosing urban projects in face of conflicting political priorities?

6. Local Revenues under Fiscal Decentralization • Tiers of Governance  Link to Finance • Top down Planning-Budgeting = High reliance of local governments in Asia on budget allocations from national governments. • Financing options

7. Linking Governance and Capacity • Bottom-up Prioritization • Political Priorities = champion projects / High profile projects • City-wide needs • MDG targets (for urban poor) • Planning-Budgeting  Implementation = weak linkages • Capacity of local government for programming and prioritization of urban projects

8. Investments for Urban Social Development

9. STEP-UP in Philippines Strategic Private Sector Partnerships for Urban Poverty Reduction (STEP-UP) in Metro Manila, Philippines • STEP-UP is important for Government’s response to urban poverty. Implemented by the Philippine Business for Social Progress, an NGO supported by the CSR contributions, the project had 3 components: • strategic partnership building, focused on coalescing three groups deemed critical to urban poverty reduction: business; local government and the homeowners associations • housing improvement; microenterprise support; upgrading of community infrastructure (roads, drainage, water supply, multipurpose centers, and access to health/ sanitation) • risk reduction and management issues relating to natural and artificial disasters.

10. MDG/PSM Matrix

11. Target Matrix for PSM Legislation reporting and monitoring systems Coordination links by level by sector Resource management by level by sector Incentive systems Resources for each priority Which Levels finance what priorities

12. CIIPP Tool-kit • Many city governments in Asia want to access infrastructure financing but are not sufficiently equipped to undertake the task of programming and prioritizing strategic urban investments. • The City Infrastructure Investment Programming and Prioritization toolkit (CIIPP) has been developed by ADB-CDIA to help fill the gap.

13. Filling the Gap

16. Target Matrix for PSM Legislation reporting and monitoring systems Coordination links by level by sector Resource management by level by sector Incentive systems Resources for each priority Which Levels finance what priorities

17. In Summary: Principles of Effective Fiscal Decentralization • Policy: Assessment of most effective tiers for implementation across investment sectors. • Regulatory Framework: Provides mandate for sectoral investment at each tier. • Governance: Legislation linking mandates to finance – intergovernmental fiscal relations – and mandating coordination across tiers and agencies – inter-linkage of finance, reporting and monitoring. • Finance – performance-based allocation of incentive funds. • Management systems: mirror governance – linking coordination, monitoring, finance across implementing agencies (sectors).

18. THANK YOU!