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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    Building Monitoring and Evaluation Capacity in the Republic of Yemen
    (World Bank, Washington, DC, 2013-03) Ivins, Ingrid ; Hwang, Helena
    This 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.
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    New Open Economy Industrial Policy : Making Choices without Picking Winners
    (World Bank, Washington, DC, 2011-09) Kuznetsov, Yevgeny ; Sabel, Charles
    This 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.
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    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.
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    The Canadian Monitoring and Evaluation System
    (World Bank, Washington, DC, 2011-06) Lahey, Robert
    Performance 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.
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    The Australian Goverrnment's M&E System
    (World Bank, Washington, DC, 2011-03) Mackay, Keith
    Countries 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.
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    Use of Social Accountability Tools and Information Technologies in Monitoring and Evaluation
    (World Bank, Washington, DC, 2011-02) Sharma, Rajiv
    This 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.
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    Defining the Type of M&E System : Clients, Intended Uses, and Actual Utilization
    (World Bank, Washington, DC, 2010-09) Briceño, Bertha
    This is the second note in a monthly series on government monitoring and evaluation (M&E) systems led by the PREM Poverty Reduction and Equity Group under the guidance of Jaime Saavedra, Gladys Lopez-Acevedo, and Keith Mackay, with contributions from several World Bank colleagues. The main purpose of this series is to synthesize existing knowledge about M&E systems and to document new knowledge on M&E systems that may not yet be well understood. The series targets World Bank, donor staff who is working to support client governments in strengthening their M&E systems, as well as government officials interested in learning about the uses and benefits of M&E and in adopting a more systematic approach toward M&E in their governments.
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    The Increasing Importance of Developing Countries in Trade in Services
    (World Bank, Washington, DC, 2010-06) Sáez, Sebastián
    Services play a broad and strategic role in the economy. The new focus in services arises because they have become increasingly tradable, allowing for the emergence of new and improved export activities. Trade in services, particularly business services, has become a dynamic component of trade and an alternative for export diversification for many developing countries. Besides traditional activities (such as tourism), health, information technology, and communication services are among the most successful service exports. Developing countries seem to follow different policy approaches to trade in services, and diverse trade patterns appear to emerge. What determines the participation of a developing country in trade in services? And what is the role of international negotiations?
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    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, Doris
    Public 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.
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    Writing an Effective Anticorruption Law
    (World Bank, Washington, DC, 2001-10) Messick, Richard E. ; Kleinfeld, Rachel
    The note looks at effective anticorruption legal instruments. However, law enforcement measures are not the first or necessarily the preferred method of defense. An informed citizenry, a government imbued with a service ethic, and other measures can be more effective in combating corruption. But tailoring the law to improve enforcement capacity generally encompasses a variety of statutes that prohibit bribery, nepotism, conflicts of interest, and favoritism in the award of contract or the provision of government benefits. And writing such laws containing "bright-line rules" in contrast to those containing standards open to interpretation by enforcement agencies may make it easier to monitor compliance and enforcement, but also rob the law of flexibility. Such laws often must be simplified to the point of arbitrariness-making them harder to accept than broadly-worded standards, which often conform to intuitive social understandings. The cost of bright-line rules are often more than offset by their deterrence value and their value in facilitating monitoring in countries with weak enforcement agencies. However, no statute can avoid some open-textured provisions. When a section in an anticorruption law must leave something open to question, one way to reduce enforcers' discretion is to establish a procedure for obtaining advance rulings. Finally, the author recommends laws that help bring corruption to light, such as a freedom of information law.