Good Practice PEAM Work Planning for High Impact Bill Dorotinsky, PRMPS The World Bank PEAM Core Course March 23, 2005 PER Objectives Inform Donor Lending It is important to keep the multiple goals in mind when planning the work Policy advice to client PER Capacity-building REFORM and Development Identify lending opportunties The World Bank 2 Country Examples 2 Examples Lessons Tanzania Tanzania The Theannual annualgovernment-led government-ledpubic pubic expenditure expenditurereview reviewprocess processisismanaged managedby by the thejoint jointgovt/donor/civil govt/donor/civilsociety societyPER PER working workinggroup. group.Each Eachyear yearthe thePER PERwork work includes a budget review, and in-depth includes a budget review, and in-depth analysis analysisof ofselected selectedpolicy policyand
andmanagement management issues. Government is transferring issues. Government is transferringthe the Secretariat Secretariatsupporting supportingthe thework workto tothe the Ministry Ministryof ofFinance. Finance. ----the theway waywork workis isdone donecan can support country institutions support country institutionsand and build capacity build capacity Poland Poland The The2002 2002PER PERfocused focusedon onproviding providingpractical practical advice to the client. The client had the advice to the client. The client had thechoice choice of ofwhat whatissues issuesthe thePER PERwould wouldcover. cover.As Aseach each PER PERinput inputwas wasprepared prepared(e.g. (e.g.budget budget management), management),ititwas wasprovided providedto toGovernment Government as
a stand-alone paper to meet client as a stand-alone paper to meet clientneeds. needs. The Thefull fullPER PERreport reportwas wasaasecondary secondaryaspect. aspect. The World Bank ----focusing focusingon onthe theclient clientobjective objective rather ratherthan thanBank Bankproduct productcan can support reform support reform 3 Country Examples 2 Examples Turkey Turkey The ThePER PERprocess processwas wasused usedto tobuild buildconsensus consensus and working relationships in Government and working relationships in Governmentacross across competing competingagencies. agencies. Lessons ----the theway waywork workis isdone donecan can contribute to reform directly contribute to reform directly Mexico
Mexico The Thegovernment, government,under underaafee-for-service fee-for-service arrangement, is purchasing arrangement, is purchasingWorld WorldBank Bankadvisory advisory services on PFM for the Ministry of Finance. services on PFM for the Ministry of Finance.The The task taskisischaracterized characterizedby byreal-time real-timeadvice adviceand and products productsto tosupport supportdevelopment developmentof ofaareform reform strategy and action plan. A PER is strategy and action plan. A PER isunder under preparation, preparation,drawing drawingon onthe theknowledge knowledgegathered gathered via the advisory services, supplemented via the advisory services, supplementedwith with selected selectedadditional additionalmissions. missions. The World Bank ----through throughsupporting supportingclient client needs, we can also meet needs, we can also meetour our information needs
information needs 4 2 Country Examples Examples Vietnam Vietnam An Anannual annualprogram programof ofanalytic analyticwork workhas hasgrown grown into intoaaGovernment-led Government-ledPER PERprocess processand anddonor donor integration integrationininsupport supportof ofaaGovernment Governmentreform reform program programand andstrategy. strategy.With Witheach eachiteration, iteration,the the Government takes more responsibility Government takes more responsibilityfor forleading leading process processand andproducing producingdocuments documents-----and and completing completingreforms. reforms. Madagascar Madagascar The Thegovernment governmentisisininthe theprocess processof ofdeveloping developingan an action actionplan planaiming aimingatatconsolidating consolidatingthe the recommendations recommendationsof ofdifferent differentdiagnosis diagnosis(own (own
governments assessment, CFAA, governments assessment, CFAA,CPAR, CPAR,IMF IMF technical technicalassistance assistancereports, reports,etc). etc).The Thegovernment government isisexpecting expectingthe thedonors donorsto toalign aligntheir theirprogram programof of work workagainst againstthis thisaction actionplan. plan.PERs PERscould couldseek seekto to fill fillthis thisconsolidating consolidatingrole. role. Lessons ----proving provingvalue valuefor forGovernment Government leads to continuous engagement, leads to continuous engagement, direct directsupport supportto toreform reform implementation, and implementation, andmany many opportunities for lending opportunities for lending ----reducing reducingtransaction transactioncosts costsand and aligning donors can improve the aligning donors can improve the chance chanceof ofreform reformand andbuild build capacity
capacity Papua PapuaNew NewGuinea Guinea The The2003 2003PNG PNGPER PERwas wasdesigned designedfrom fromthe thestart start to support the Government budget and public to support the Government budget and public finance financereform reformprocess. process.Donors Donorsshare sharethe the governments view that the PER must governments view that the PER mustbe beaa process-driven process-drivenexercise exerciseaimed aimedatathelping helpingthe the government implement the reforms. government implement the reforms.The ThePER PER directly directlysupports supportsCabinet Cabinetand andTreasury Treasurydecisions decisions and andprocesses processeswith withspecific specificanalytic analyticproducts. products. The World Bank ----we wecan canvary varyapproach approachby by country circumstance, but plan country circumstance, but plan from
fromthe thestart startfor forhigher higherimpact impact 5 Summarizing The focus of the work is supporting Government strategies and institutions, building capacity, and reducing donor transaction costs --- towards results on the ground --- rather than solely diagnostic report production for donors. 1. the analytic work supports the Governments own public sector reform strategy and action plans 2. the work includes Government leadership in selecting topics, and Government production of working papers and the final report 3. the work outputs support the Government's own decision-making process 4. the process will be used to bring together Government actors 5. the process also brings together multiple donors to support and participate in the analytic work -- and hopefully to support more generally the Government reform strategy and action plan 6. the process also focuses on building domestic non-governmental capacity through use of local consultants where possible 7. within the Bank, the work seeks to integrate PREM, OPCSFM, and OPCSPR A good test: the Government is increasingly taking over the process, building it into their budget process. 6 The World Bank but the ideal is not always possible PEIRs, CFAAs and CPARs generally should seek: greater country participation in planning and carrying out PFM work to harmonize with country budget cycles to support government processes be based on a country-specific strategy for PFM work over the medium-term to assure full coverage of issues, meet the relevant needs of all parties, minimize burden on country authorities, and avoid duplication of effort greater involvement of other donors cross-participation in missions by OPCS, PREM and IMF staff to share documentation and information on country issues, perhaps establishing a joint intranet repository to coordinate contract support to minimize duplication and maximize joint use of outputs mutual comment and concurrence on outputs, and produce joint outputs where possible (e.g. reports, or BTORs) joint dissemination missions, harmonizing messages The World Bank 7 Approaches for using PER as instrument of change - fitting to country circumstances Client interest Negative Zero or low Low, selected officials in government
Approach Emphasis PER is external review of government budget, Well argued, documented report, policies, and institutions, trying to make the case with focus on wide dissemination to government that action is necessary within and outside government, Report might cover many topics, trying to civil society discussions generate interest in some issue, or raise awareness of a particular problem. PER selects problems of known interest to Helping government solve a government, seeks to help them think through problem, building stronger issue, understand options, develop strategy relationship, demonstrating value of PER/Bank support. PER is focused review supporting position of Wide dissemination in reformers, helping them make their case with government, perhaps outside analytical support, providing advice on strategy government if thought useful. Process might emphasize broader and actions plan. participation within government to help build more consensus. The World Bank 8 Approaches for using PER (2) Modest, disparate interests High, but unfocused PER focuses on selected issues of common interest, making the case PER seeks to provide strategy and sequencing to assist authorities to move forward. PER makes case for reform, providing analytical High, but no public support and research support to reform. The World Bank Process seeks to bring together disparate parties, build consensus and coalition for reform. Participatory process within government, supporting government decision-making. PER might consist of chapters provided to government as policy papers developed to support government decision processes, implementation. Subsequent compilation into PER optional. Focus on wide dissemination in civil society, communication strategy to emphasize need for reform. 9
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