Other Public Sector Study
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Publication
Kingdom of Thailand - Public Expenditure and Financial Accountability : Public Financial Management Assessment
(World Bank, 2009-10-01) World BankThe Government of Thailand has been undertaking wide ranging public financial management reforms since 1999 across the six core dimensions of Public Financial Management (PFM) performance identified in the performance measurement framework. Key reforms include: (i) the deployment of an integrated Government Fiscal Management Information System (GFMIS) for budget execution and reporting; (ii) implementation of Strategic Performance Based Budgeting (SPBB) framework; (iii) implementing the International Public Sector Accounting Standards for reporting; (iv) conducting financial, procurement, performance, and risk based audits; and (v) putting in place a system of key performance indicators (KPIs) to foster greater service delivery responsiveness by government agencies. This Public Expenditure and Financial Accountability (PEFA) report aims to assess the status of the PFM system in Thailand across the six core dimensions of PFM performance using the standard PEFA methodology of 28 high level indicators, excluding the donor practices indicators. -
Publication
Support to Civil Service Reform in Indonesia : Report from a Programming Mission to Jakarta
(Washington, DC, 2009-05-07) World BankCivil service reform in Indonesia is needed to sustain the important institutional reform results achieved over the last ten years in various sectors and policy areas and to further consolidate Indonesia as a progressing middle income country. This report summarizes a mission to Indonesia on February 2-13, 2009. The purpose of the mission was to i) map, describe and assess current approach and status of ongoing civil service reform initiatives in selected central government institutions; ii) make recommendations related to scope, focus and approach of continued reforms; and iii) propose to the Government of Indonesia (GOI) a World Bank program of assistance in support of the government's reform agenda. The report is intended to provide a basis for a decision within the Bank on whether and how to continue and scale up an engagement on civil service reform in Indonesia. Aligned with the three objectives, the mission report first provides an introduction to the political economy of civil service reform in Indonesia and an overview and profile of ongoing reform initiatives. It then analyses key civil service challenges, using the dimension in the draft framework for Actionable Governance Indicators as a point of departure. Finally, a possible program for donor support is presented in light of the analysis of key challenges and the political economy of reform. -
Publication
Guinea - Decentralization in Guinea : Strengthening Accountability for Better Service Delivery
(Washington, DC, 2008-09) World BankThe purpose of this report is to present reform options for the implementation of the new code that would strengthen accountability in service delivery. The report is structured as follows: chapter one discusses how decentralization can be an effective tool for improving service delivery and local governance. Chapter two assesses progress in fiscal, administrative and political decentralization, scrutinizes their impact on accountability relationships and makes recommendations to further decentralization, in line the new code. Chapter three analyses current arrangements for service delivery in two sectors (water and education), maps out strengths and weaknesses of existing accountability relationships and makes recommendations, drawing on existing innovative practices in Guinea and/or the region. Chapter four offers recommendations to manage change and maintain the momentum for reform. Chapter five concludes with an outlook. -
Publication
Operationalizing the Central Government Transfer Intercept Mechanism
(World Bank, Washington, DC, 2008-09) Oosterman, AndreIn October 2004, the Government of Indonesia (GOI) issued law 33/2004 concerning the Fiscal Balance between the central government and the regional governments. Like its predecessor, law 25-1999, the law stipulates a series of administrative sanctions that the Government may impose on regional governments that do not comply with certain of its provisions. These sanctions will take the form of a deferment or cut, depending on the specific nature of the non-compliance, in the general allocation (Dana Alokasi Umum or DAU) or shared revenues (Dana Bagi Hasil or DBH) to which the region would otherwise be entitled. The Ministry of Finance (MoF) is currently preparing a decree to operationalize this so-called intercept mechanism, and has requested the Decentralization Support Facility (DSF) to provide advice on the development of an effective DAU and DBH intercept mechanism. This final report presents the findings of a consultant ("the Consultant") contracted by DSF to provide this advice. Chapter two discusses administrative requirements to decrees and regulations that govern the allocation of DAU and DBH to regional governments, to ensure that the intercept mechanism remains effective. Chapter three describes the key features of an accounting mechanism that directs intercepted funds to the treasury, and remits the balance of the transfer to the defaulting regional government. The annex to this report contains the results of simulations the consultant has performed at the request of DJPK since the publication of the interim report. -
Publication
Initiatives Supporting Demand for Good Governance Across World Bank Group Sectors and Regions
(World Bank, Washington, DC, 2008-08) Chase, Robert S. ; Anjum, AnushayThis preliminary stocktaking report on the demand for good governance is an effort of the Demand For Good Governance (DFGG) peer learning network to bring together and highlight the wealth of existing knowledge and practices currently available to support DFGG across the World Bank. This report puts forth a framework with key principles for organizing the complex universe of DFGG efforts across sectors and regions. The paper also identifies entry-points areas of development assistance and illustrates a few good practice examples supporting and strengthening DFFG for the World Bank as it builds its understanding of the areas where the institution can scale-up these activities. This report identifies a wide-range of activities supporting DFGG, however, it is worthwhile to note some challenges in collecting information on these activities. The report provides a more detailed review of the overall findings of DFGG work across the Bank. This paper constitute the following sections: an overview of the key DFGG elements in the organizing framework; entry-points for strengthening demand for good governance with case study examples; summary of key findings of the stocktaking; and finally, some challenges that the World Bank needs to address to mainstream DFGG operationally. The annexes constitutes of the following parts: annex one is a compiled list of notable demand for good governance activities supported by the World Bank identified in the stocktaking exercise and by World Bank Vice President Units; annex two provides a brief description of projects to show how the projects and or elements within the projects support DFGG efforts; annex three provides an overview of broad categories of tools and mechanisms supporting DFGG elements in activities; annex four provides a list of World Bank staff contacted and interviewed in the stocktaking exercise; and annex five provides a list of references reviewed. -
Publication
Sub-National Performance Incentives in the Intergovernmental Framework: Current Practice and Options for Reform in Indonesia
(World Bank, Washington, DC, 2008-06) Lewis, Blane D. ; Smoke, PaulThis paper provides background for the Government of Indonesia as it considers if and how to introduce more robust local government performance incentives into the intergovernmental fiscal framework. The next section briefly examines the forces that have driven the recent national wave of interest in improving local government performance. This is followed by a review of the relatively limited set of local government performance incentives currently in force in Indonesia. The fourth section provides a conceptual overview of how to think about the possible expansion of local government incentive programs, outlining the potential role(s) of such programs in general and the key issues involved in designing and implementing them. The fifth section tentatively considers a number of options for additional local government incentives in Indonesia that the central government may wish to consider pursuing. The paper concludes with an outline of next steps for moving forward with the possible development of more purposeful and meaningful performance incentives in Indonesia's intergovernmental fiscal framework. -
Publication
Increases in Surpluses of Regional Governments in Indonesia: An Empirical Analysis
(Washington, DC, 2008-06) World BankThe overall objective of the study is to identify potential causes to the rapid increase in regional government surpluses. It will be shown that regional government surpluses have rapidly increased because of a confluence of three factors: (i) higher than expected revenue, (ii) lower than expected expenditure, and (iii) limited investments in financial assets. The study will identify potential causes for each factor by analyzing differences in actual and budgeted amounts of revenue. This report was presented to representatives of the Ministry of Finance and Decentralization Support Facility (DSF) in a meeting held on 30 May 2008. Comments and corrections of the attendants are reflected in this version of the report. -
Publication
Exploring Reform Options in Functional Assignment
(World Bank, Washington, DC, 2008-03-28) Ferrazzi, GabrieleConsiderable challenges remain in functional assignment in Indonesia - some introduced by the recent revisions, during the second round of reform in the period 2004-2007. The Government of Indonesia (GoI) has accepted the offer from donors to undertake a study to delve more deeply into the progress made to date, the challenges that remain, and the opportunities to fashion a more robust, effective and stable assignment of functions. The study aims to help the GoI and donors in exploring new avenues for reform in this field. The term functional assignment in the study denotes a broad concept that captures the overall architecture of roles between levels of government and the specific construction of functions. The robustness of functional assignment is seen to derive from the judicious choice of elements suited to the local context, particularly how these elements come together to form a sound and consistent architecture. In assessing functional assignment, the study made use of academic and other stakeholder views on both substantive issues and the capacity development approach needed to develop a policy network in this field in the future. The possible supporting role of donors is also indicated, within the discussion of each issue in the main part of the report, and in condensed form at the end of this summary. -
Publication
Serbia : Decentralization and Local Service Delivery
(Washington, DC, 2008-03) World BankSerbia's ability to achieve macroeconomic stabilization and restructure its public finances has been, and will continue to be, impacted by the policy actions of its sub-national governments. For the purposes of this paper, these include the province of Vojvodina and municipal governments. In many countries, the fiscal performance of sub-national governments has created problems for macroeconomic management through the running of deficits, accumulation of arrears, or the incurring of debts which must eventually be covered by the central government. This chapter examines the experience to date and the institutional mechanisms for macroeconomic management at the sub-national level in Serbia. The next section of this chapter reviews the fiscal performance of Serbian sub-national governments, especially in relation to the Republican government's ongoing efforts to restructure the public sector. A key finding is that the composition of public expenditures evolved quite differently at the Republican and sub-national levels, especially during the successful fiscal consolidation of 2003-2005, when control of spending on wages and salaries and on enterprise subsidies at the central level was not matched at the sub-national level. The increase in subsidies to municipal enterprises, combined with the growing arrears of such firms, points to a need to focus on their restructuring and governance. The third section reviews the institutional framework for macroeconomic management in the sub-national governments. Since 2002, a number of important laws have strengthened the framework for regulating the finances and borrowing of sub-national governments. The capacity of the Ministry of Finance to monitor and report on fiscal outcomes has also improved significantly. As a result, over the last several years, sub-national governments have broadly adhered to their spending and debt limits. However, further delays in the restructuring of municipal enterprises, coupled with the likely emergence or growth of new financing sources for sub-national governments (including borrowing and the proceeds from privatization and other asset sales), could create additional spending pressure and lead to larger deficits at the sub-national level. The fourth and final section summarizes the main conclusions of this chapter. -
Publication
A Note on the Indonesian Sub-National Government Surplus, 2001-2006
(World Bank, Washington, DC, 2008-01) Lewis, Blane D.The Indonesian government has devolved significant expenditure authority to sub-national units since 2001. New sub-national government expenditure assignments have been paid for by a substantial increase in intergovernmental transfers to lower levels of government. The center has decided against devolving any significant new tax authority to the regions, at least for the time being. This note examines some fundamental issues related to these unspent funds. The paper has two particular objectives. First, the paper describes the basic features of sub-national government surplus and reserves since decentralization, including their size and spatial distribution. Second, it seeks to explain the observed variation in surplus across sub-national governments, according to some standard hypotheses. The paper proceeds as follows. First, some basic information regarding the buildup and geographic distribution of sub-national reserves is offered. Second, the methodological approach to the study of sub-national government surpluses is detailed. Third, the results of the econometric examination are presented and discussed. Finally, the note closes with a summary of the main findings and a proposal for some additional research that might be useful in the continuing development of central policy in this area.
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