PREM Notes
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This note series is intended to summarize good practices and key policy findings on poverty reduction and economic management (PREM) topics.
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Publication
Using M&E to Support Performance Based Planning and Budgeting in Indonesia
(World Bank, Washington, DC, 2012-11) Ahern, Mark ; Beard, Victoria A. ; Gueorguieva, Anna I. ; Sri Handini, RetnoSince 2000, there has been growing interest in reforming Indonesia s budgeting systems to promote a more performance-orientated process. Indonesia is in the initial stages of this reform. A major challenge is determining the information needs of the central coordinating ministries. To date, these ministries have taken separate paths, developing their own monitoring and evaluation (M&E) systems, which are not linked to the planning and budgeting system, and creating new regulations and institutions to manage them. The result has been underused information and a high reporting burden at all levels. Furthermore, the current system places a greater emphasis on monitoring rather than evaluation. In 2011, representatives from the coordinating ministries participated in a series of high-level round table discussions to identify the steps needed to rationalize and coordinate M&E practices across institutions and to strengthen the links among data collection, evaluation, planning and budgeting. The round table process has confirmed that, while coordination is needed, establishing incentives for the demand and use of M&E information is critical to making the systems effective. This note identifies priority areas for future action building on this finding. -
Publication
Use of Social Accountability Tools and Information Technologies in Monitoring and Evaluation
(World Bank, Washington, DC, 2011-02) Sharma, RajivThis note attempts to cover the basic concepts relating to the use of social accountability and information technology to monitor and evaluate public services and other governance processes that affect citizens. With the help of simple though practical examples that use these concepts, the note explains how to bring a qualitative change in monitoring and evaluation by making the whole process more citizen centered and outcome oriented. In turn, these practices can help improve the quality of service delivery. The note also covers a few country-specific initiatives from India to support the related arguments. -
Publication
M&E Systems and the Budget
(World Bank, Washington, DC, 2010-10) Krause, PhilippMonitoring and evaluation (M&E) are means to multiple ends. Measuring government activities, constructing and tracking performance indicators across sectors and over time, evaluating programs, these activities can be carried out and tied together with different objectives in mind. It will certainly be possible to use M&E purely as a way to improve transparency and accountability, by making more information on the workings and results of government programs available to the public. One can also focus M&E on managerial purposes, to reward performance inside ministries and agencies. But surely a crucial element of running an effective public sector will be missing if M&E were not used to inform the spending of public money. This briefing note will introduce the main issues surrounding M&E as a tool for budgeting, a system usually referred to as performance budgeting, to help policy makers make strategic decisions about their M&E systems by outlining different design choices and their respective advantages and pitfalls. -
Publication
Implementing Public Expenditure Tracking Surveys for Results : Lessons from a Decade of Global Experience
(World Bank, Washington, DC, 2009-11) Gurkan, Asli ; Kaiser, Kai ; Voorbraak, DorisPublic Expenditure Tracking Surveys (PETS) can serve as a powerful tool to inform prevailing public financial management (PFM) practices and the extent to which government budgets link to execution and desired service delivery objectives and beneficiaries. Since the first PETS in Uganda in 1996, tracking exercises have now been conducted in over two dozen other countries, often as part of core analytical and advisory work related to PFM. This note synthesizes the findings and lessons from a number of recent PETS stocktaking exercises and indicates their potential benefits for enriching PFM and sectoral policy dialogues in a variety of country settings. Key findings include: (i) PETS have proven to be useful as part of a broader policy strategy aimed at improving service delivery results; (ii) PETS has become a brand name for very different instruments, but at its core there is a survey methodology that requires skilled technical expertise and a solid knowledge of budget execution processes; (iii) policy impact in a variety of PETS experiences could be further strengthened by stronger country ownership and effective follow-up; and (iv) the Bank could enhance PETS results through strategic partnering, and greater emphasis on dissemination and communication strategies aimed at involving actors who can foster actions on the ground. -
Publication
Fiscal Policy for Growth
(World Bank, Washington, DC, 2009-04) Ley, EduardoWhile the term 'fiscal space' is new, the issue is quite old. Fiscal space refers to availability of budgetary resources for a specific purpose, typically growth-enhancing investment uses, without jeopardizing the sustainability of the government's financial position, or the stability of the economy. The recent interest in fiscal space originated as a reaction to International Monetary Fund (IMF), supported fiscal-adjustment programs that by focusing too narrowly on fiscal-deficit targets often ignored the quality of the underlying adjustment. Affected countries meanwhile advocated for fiscal space for investments in physical and human infrastructure crucial for economic growth. The IMF independent evaluation office, in their study on fiscal Adjustment in IMF supported programs acknowledged this problem, observing that 'much of the fiscal adjustment achieved is through measures that do not assure long-term sustainability and flexibility of fiscal systems to future shocks'. In effect, the improvement of the fiscal balance in the context of IMF-supported programs too often relied heavily in cuts in public investment that improve today's government cash flow at the expense of future economic growth. -
Publication
Pro-Poor Public Spending Reform : Uganda's Virtual Poverty Fund
(World Bank, Washington, DC, 2006-03) Williamson, Tim ; Canagarajah, SudharshanThe Poverty Action Fund (PAF) was introduced in Uganda in 1998 to reorient government expenditures towards implementing its Poverty Education Action Plan (PEAP) as well as to account for Heavily Indebted Poor Country (HIPC) resource use. This paper notes the successes of the PAR, the negative aspects, and the key lessons learned. Successes include: reorienting budget allocations towards pro-poor service delivery and demonstrating the additionality of debt relief; mobilizing donor resources and harmonizing conditions; and improved budget predictability, transparency, and accountability. The negative aspects include: unbalanced budget allocations, biased budget implementation, partial monitoring and evaluation, and no exit strategy. The key lessons were: To be effective, a Virtual Poverty Fund (VPF) should be simple and limited to the identification of Poverty Reduction Strategy Paper (PRSP) priority expenditures in the budget classification system; a VPF should be introduced in a way that supports rather than replaces the implementation of such comprehensive improvements in budget preparation and implementation; and a VPF does not bypass the need to have a PRSP and an effective budget process that identify priority pro-poor expenditures to be included in the VPF as part of a broader policy framework for growth and poverty reduction. -
Publication
Institutionalizing M&E systems in Latin American and Caribbean Countries
(World Bank, Washington, DC, 2005-09) Burdescu, Ruxandra ; del Villar, Azul ; Mackay, Keith ; Rojas, Fernando ; Saavedra, JaimeCountries are driving the efforts to institutionalize monitoring and evaluation (M&E) systems. Through the promotion of knowledge-sharing, and by taking stock of current M&E systems, fostering South-South collaboration, raising awareness through presentations, and, by launching an informal regional network, the note reviews the cases of Colombia, Chile, Brazil, Mexico and Peru. It became evident from country experiences, that there is no single "destination" for countries. Some stress a system of performance indicators, while others focus on conducting evaluations (program reviews or rigorous impact evaluation (IE). And while some countries have created a whole of government approach driven by finance, or planning ministries, others are more focused on sector M&E systems. One key characteristic of most of the systems that are now at different stages of implementation in Latin America and the Caribbean (LAC) is that they are country-led efforts to institutionalize M&E, rather than donor-driven. -
Publication
Engendering Justice : A Gender Assessment's Impact on Project Design
(World Bank, Washington, DC, 2005-05) Bhansali, Lisa L.Gender equality is an important indicator of a country's progress toward sustainable development and is one of the Millennium Development Goals. Yet World Bank teams often find gender equality a difficult concept to include in projects. One solution is to conduct a targeted gender assessment, which can help ensure that a project design addresses gender concerns and promotes equitable access to public services. -
Publication
Building Blocks of e-Government : Lessons from Developing Countries
(World Bank, Washington, DC, 2004-08) Bhatnagar, Subhash ; Deane, ArsalaE-government is about changing how governments work, share information, and deliver services to external and internal clients. It harnesses information and communications technology to transform relationships with citizens and businesses, and between arms of government. Benefits can include reduced corruption, increased transparency, greater convenience, higher revenues, and lower costs. But case studies show that these benefits do not result solely from the use of information and communications technology. Instead, e-government initiatives should be part of broader reforms to improve public sector performance. -
Publication
Reforming Intergovernmental Fiscal Relations in the Czech Republic
(World Bank, Washington, DC, 2003-10) Oliveira, João do Carmo ; Martinez-Vazquez, JorgeThe Czech Republic has largely overcome the challenges associated with its legacy of socialism, the 1993 breakup of Czechoslovakia, and its transition to a market economy. In addition, the country's evolving approach to intergovernmental fiscal relations has addressed crucial issues, including the prospect of joining the European Union and the need to increase public sector efficiency.
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