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 Building Monitoring and Evaluation Capacity in the Republic of Yemen(World Bank, Washington, DC, 2013-03) Ivins, Ingrid; Hwang, HelenaThis note disseminates key lessons learned from the World Bank financed project in the Republic of Yemen, monitoring and evaluation of the poverty reduction strategy paper and reform programs, which established and operationalized a poverty reduction strategy monitoring unit. The approaches used, such as a study tour to Uganda, focused international training sessions, and the successful work on improving and minimizing the number of indicators, provide some lessons learned for other countries seeking to build monitoring and evaluation (M&E) capacity. Policy makers learned from Uganda s good practices of connecting accountability with resource allocation and of the importance of a strong and independent statistics office. The Republic of Yemen s experience also illustrates the value of having a powerful M&E champion to support such a significant initiative. Finally, the inclusion of civil society organizations in the planning process and in M&E outputs, especially on the central level and on policy matters, increased popular support and was an important factor in building M&E capacity.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 Performance-Informed Budgeting in the U.S. National Government : An Evolutionary Approach and a Work in Progress(World Bank, Washington, DC, 2012-07) Joyce, Philip G.The United States, at the national level of government, has been trying to identify stronger links between performance and funding for at least 50 years. The most recent two presidents had fundamentally different approaches to performance-based reforms. The administration of George W. Bush embraced a top-down, comprehensive approach to performance, embodied by the President's Management Agenda and the Program Assessment Rating Tool (PART). The Obama administration has delegated more of the agenda to the agencies and has abandoned the PART in favor of a more in-depth, targeted approach to evaluation. Continuing challenges in the United States include creating incentives for focusing on the long term rather than the short term, making expanded use of performance information for budget decision making, and simultaneously focusing on performance improvement and reducing unsustainable budget deficits.Publication The Fiscal Management of Natural Resource Revenues in a Developing Country Setting (or How to Design a Fiscal Rule If You Are Not Norway)(World Bank, Washington, DC, 2012-04) Eckardt, Sebastian; Sarsenov, Ilyas; Thomas, Mark RolandThe exhaustibility and volatility of natural resource revenues pose well-known economic challenges, of which those facing oil producers are the most prominent. If oil revenues represent an important share of export earnings and of government revenues, then they can be part of overheating during booms and costly adjustments during downturns, making fiscal policy exacerbate volatility. At the same time, considerations of intergenerational equity suggest that fiscal policy should also preserve part of current oil revenues for future generations. To address both of these challenges, resource-rich countries commonly establish commodity funds, into which part of their resource-linked revenues are deposited and invested in income-generating assets (usually offshore financial assets). A key question in designing such funds is what share of current revenues should be spent and what share saved. Based on recent advisory services offered to the Ministry of Economy and Trade in Kazakhstan, this note summarizes one possible approach, aiming to provide rule-based anchors for sustainable fiscal policy in an oil-producing country. This approach applies traditional permanent-income and debt sustainability frameworks, but adapts the resulting recommendations to the institutional context of the country. Rule-based fiscal frameworks offer strong benefits to countries that are generating significant government revenue from extractive industries. As commitment devices, these frameworks can reinforce fiscally responsible economic management, contain volatility, and preserve fiscal savings for future generations.Publication New Open Economy Industrial Policy : Making Choices without Picking Winners(World Bank, Washington, DC, 2011-09) Kuznetsov, Yevgeny; Sabel, CharlesThis note starts from the premise that policy makers invariably make mistakes, both intentional and unintentional. That requires shifting the focus from one-time choice of winners (sectors, industries, firms, and other organizations) to the process of error detection and error correction of the choices (with corresponding attention to governance). This note shifts the debate on government activism in support of globally competitive industries from a choice of picking/dropping winners to a process of step-by-step transformation of private and public sectors. In such a process, new industrial policy creates its own context for efficient design and implementation in two ways. First, by shifting the focus of analysis and institutional design from private sector to a new public sector capable of providing customized and flexible public goods and enabling private agents to compete globally. The key concept here is heterogeneity (discretionary differences) of institutions: it is almost always possible to find some that are working. The issue is using the ones that work to improve those that don't. This hypothesis assumes that there are nearly always opportunities for development in a given economy, and that some actors, private and public, begin to take advantage of them.Publication Chile's Monitoring and Evaluation System, 1994-2010(World Bank, Washington, DC, 2011-08) Dussauge Laguna, Mauricio I.The Chilean Management Control and Evaluation System (Sistema de Evaluacion y Control de Gestion) is internationally regarded as a successful example of how to put into place a monitoring and evaluation (M&E) system. Chilean M&E tools are the product of both cross-national lesson-drawing, and national policy learning experiences. The main M&E tools are centrally coordinated by the Ministry of Finance's Budget Office (Direccion de Presupuestos, or DIPRES) and promote the use of M&E information in government decision-making processes, particularly those related to the budget. These M&E tools have been, however, subject to a number of criticisms. As a result, the experience described in this note does not necessarily offer a model that can, or should, be easily transferred to other countries with different institutional contexts. Furthermore, this note does not reflect the latest changes, nor does it try to offer guidance for the future. However, the Chilean experience summarized here, covering the period of 1994-2010, provides interesting examples and highly relevant lessons about the benefits and limitations of M&E design and implementation.Publication The Canadian Monitoring and Evaluation System(World Bank, Washington, DC, 2011-06) Lahey, RobertPerformance measurement, monitoring, and evaluation have long been part of the infrastructure within the federal government in Canada. With more than 30 years of formalized evaluation experience in most large federal departments and agencies, many lessons can be gained, not the least of which is the recognition that the monitoring and evaluation (M&E) system itself is not static. The Canadian government has a formalized evaluation policy, standards, and guidelines; and these have been modified on three occasions over the past three decades. Changes have usually come about because of a public sector reform initiative such as the introduction of a results orientation to government management, a political issue that may have generated a demand for greater accountability and transparency in government, or a change in emphasis on where and how M&E information should be used in government. This chapter provides an overview of the Canadian M&E model, examining its defining elements and identifying key lessons learned.Publication The Australian Goverrnment's M&E System(World Bank, Washington, DC, 2011-03) Mackay, KeithCountries from all over the world have shown an interest in Australia's experience in creating a monitoring and evaluation (M&E) system that supports evidence-based decision making and performance-based budgeting. The Australian M and E system in existence from 1987-97 was generally considered to be one of the most successful and was driven by the federal Department of Finance (DoF). This note discusses the genesis, characteristics, and success of this particular system and briefly considers the Australian government's approach to M and E after the system was abolished. The contrast between these two periods provides many valuable insights into success factors and challenges facing successful M and E systems, and into implementing evidence-based decision making more broadly.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 The Design and Implementation of a Menu of Evaluations(World Bank, Washington, DC, 2011-01) Rubio, Gloria M.Policy makers and program managers are faced every day with major decisions resulting from insufficient funding, ongoing complaints about service delivery, unmet needs among different population groups, and limited results on the ground. There is a menu of evaluation types implemented by developing and Organization for Economic Co-operation Development (OECD) countries to tackle a wide range of policy and program management issues, considering time, resources and capacity constraints. International experience highlights the importance of a gradual approach when introducing evaluation tools into country-level monitoring and evaluation (M and E) systems. Different paths may work better for different countries depending on the main purpose of their M and E system, existing institutional capacity, the availability of funds, and external technical assistance.