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Policy Monitoring through CPIA Global Monitoring Workshop Washington, D.C. June 19, 2003

Policy Monitoring through CPIA Global Monitoring Workshop Washington, D.C. June 19, 2003. 1. Country Policy and Institutional Assessment

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Policy Monitoring through CPIA Global Monitoring Workshop Washington, D.C. June 19, 2003

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  1. Policy Monitoring through CPIA • Global Monitoring Workshop • Washington, D.C. • June 19, 2003

  2. 1. Country Policy • and Institutional Assessment CPIA - a snapshot of the country’s policy and institutional environment – originally designed for performance-based allocations, may now serve another purpose. • guidelines developed • benchmarking exercise • assessments made • arrived at by applying internal Bank guidelines, use of indicators, existing studies, recording rationale for scores of individual elements. • reviewed by Management

  3. CPIA (cont.) • There are 20 criteria in 4 clusters namely : • Macroeconomic Policies (3) • Structural Policies (5) • Policies for Growth and Poverty Reduction (6) • Governance and Public Sector Performance (6)

  4. CPIA (cont.) Information disclosure • ADB will publish quintile rankings for each of the 4 components, as well as overall quintile rank for each RMC Client involvement • RMC involvement: primarily in CSP dialogues after the results have appeared; can make increasing use of publicly available proxies

  5. CPIA (Results) • The bulk of countries have had ratings in the 3 (unsatisfactory) to 4 (satisfactory) range. (Scale 1 to 6) • The bunching of the ratings reflects the fact that the bulk of ADF countries have policies and institutions, which are in the transition stage between unsatisfactory and satisfactory • Except for the 4th quintile, there is an upward trend in ADB CPIA scores (starting from 1999)

  6. Results

  7. 2. CPIA : ADB vs. World Bank • ADB and the World Bank have similar (but not identical) criteria • Both Institutions use 20 Criteria in all, but … • (WB:10 / ADB:8) – Macroeconomic, and Structural Policies • (ADB:12 / WB:10) - Growth w/ Equity, and Pov. Redn and Gov • Some criteria differ (i.e ADB has criterion on Regional Integration & Cooperation policy) • Correlation coefficients between ADB & World Bank declined 1999-2001, but improved for 2002

  8. Comparison (cont.) • Consistent with rating of all N. African countries and in top and bottom quintiles • A country by country analysis reveals systematic differences for countries mostly the middle quintiles, where the scores are close to each other. • In 2002, only 5 countries were ranked significantly different from each other

  9. 3. How should CPIA be used in Global Monitoring ? • A tool that was created for one purpose appears that it can be adapted to another - GM • The CPIA score may well serve as a first level, overall indicator • but, like IDA measurement system, no one score is sufficient • – need a series of indicators to tell the complete story • Use both ADB & WB results for Africa • There is a need for common (world), and regional indicators • issues specific to one region

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