Other Public Sector Study
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Publication
Federal Democratic Republic of Ethiopia: Evaluation of MDGs Specific Purpose Grant to Regions
(World Bank, Washington, DC, 2016-03-29)Ethiopia is a highly decentralized country. Presently, sub-national government taxes and revenues account for about 28 percent of general taxes and revenues, and sub-national expenditures amount to 51 percent of general government expenditures. The ensuing vertical mismatch is bridged by grants from the Federal government to the regions. Presently, these grants account for 57 percent of sub-national expenditures1. For many years, these grants consisted mostly of a block grant (the Federal General Purpose Grant) given without any strings attached, which means the regions could use it as they wished. The rest of the report is organized as follows. Section two provides the policy context that is the information, data, evolutions, etc. specific to Ethiopia, which are necessary to understand and interpret the MDGs grant policy. Section three present and discusses the policy content that is the components of the policy previously identified. Section four is a policy assessment, which utilizes the evaluation framework proposed above to analyze the relationships between the various components of the policy, and discuss its efficiency, its effectiveness and its success. Section five is a conclusion that summarizes the analysis, and attempts, prudently and modestly, to outline some potential avenues for future action. -
Publication
Republic of Serbia Municipal Public Finance Review : Options for Efficiency Gains
(Washington, DC, 2014-06-05)Since the global financial crisis, Serbia's public debt has more than doubled. Local Governments (LGs) need to find ways to perform more efficiently, not only to contribute to national fiscal consolidation efforts, but also because they may have fewer resources available in the future. This report represents a continuation of the World Bank effort to explore LGs finances. The first phase of this report focused on options for increases in local revenues; impact of further decentralization; options for reduction of subsidies in selected sectors; and how to control the public debt. The report is organized as follows. Chapter 2 examines LG hiring and pay policies. In addition to offering recommendations on how to achieve efficiency and savings, it sheds light on employment wage policies within LG enterprises. Chapter 3 deepens the analysis of local public utility companies (PUCs), which not only have significant responsibilities for delivering local services, but also often pose a significant pressure on LG budgets. On average, financial support to PUCs accounts for a quarter of local budgets. This chapter looks at the main issues and makes recommendations for efficiency gains. Chapter 4 discusses the most important public financial management issues for LGs, asking where better management and accountability could increase value-for-money and help extract additional benefits from current and capital expenditures. It examines budget preparation, execution, and reporting issues as a basis for recommending policies to increase transparency and accountability as well as more efficient use of resources. Chapter 5 summarizes the main conclusions and policy recommendations of the report. -
Publication
South East Europe Municipal Finance Review : Local Government Finance in the Western Balkans
(Washington, DC, 2013-09)This report addresses the limited access to local governments of data and knowledge of municipal finance issues in South East Europe (SEE). The objective of the analytical work under the SEE Municipal Finance Review (MFR) aims to (i) contribute to improved understanding of local government management and finance in the SEE Region; and (ii) contribute to improving the quality and consistency of key municipal finance data for improved evidence based policy making. The analysis presented in this report comprises the first attempt to review and analyze a regional set of disaggregated sub-national finance data in the SEE Region. Main findings of the MFR are presented in this report. Following an introductory chapter, chapter 2 provides an overview of the decentralization framework in the SEE Region, including on the administrative and political structure of sub-national governments, their population size and distribution, and the service functions assigned to local governments. Chapter 3 explains in more detail the local government finance framework. This includes an overview of the structure and composition of sub-national finances, in particular (i) revenue and expenditure assignments; (ii) transfers and intergovernmental fiscal relations; and (iii) the evolving framework and realities of sub-national borrowing and debt. Chapter 4 provides a summary of the key trends and findings from the cross-country, regional analysis, complemented by detailed analysis of the disaggregated datasets, where available. Finally, Chapter 5 summarizes conclusions and provides some recommendations for a possible way forward. In the medium to long term, access to municipal finance information would contribute to increasing transparency and accountability of local governments, improving revenue collection and expenditure performance, optimizing budget allocation procedures, and strengthen local authorities' role and position in intergovernmental fiscal considerations and negotiations in the SEE countries. -
Publication
PFM Design under Capacity Constraints : Planning Public Financial Management Reforms in Pacific Island Countries
(World Bank, Washington, DC, 2013-07)This note is intended to inform Public Financial Management (PFM) reform in small Pacific Island Countries (PICs). PFM systems in PIC contexts are often very different from the sophisticated and comprehensive systems operating in larger, wealthier countries. The authors give two key messages. Firstly, PFM capacity should be prioritized to areas that matter most in achieving development outcomes, and reforms should be intended to address specific, identified, problems, rather than to achieve blueprint good practice standards. Secondly, with small numbers of staff and high staff turnover limiting potential for sustainable gains from standard capacity building solutions (such as training programs and workshops), broader options for meeting capacity gaps should be considered, including accessing ongoing support for specialized tasks or even the wholesale outsourcing of certain functions. The three main sections of this note are as follows: (i) how to plan PFM reforms, including through the development of PFM roadmaps; (ii) how to prioritize limited PFM reform capacity to address the most pressing constraints to development; and (iii) how to access additional capacity to implement and sustain required PFM reforms. -
Publication
FONDEN: Mexico's Natural Disaster Fund--A Review
(World Bank, Washington, DC, 2012-05)FONDEN (Natural Disasters Fund), Mexico's fund for natural disasters, was established in the late 1990s as a mechanism to support the rapid rehabilitation of federal and state infrastructure affected by adverse natural events. FONDEN was first created as a budget line in the Federal expenditure budget of 1996, and became operational in 1999. Funds from FONDEN could be used for the rehabilitation and reconstruction of: 1) public infrastructure at the three levels of government (federal, state, and municipal); 2) low-income housing; and 3) certain components of the natural environment. FONDEN consists of two complementary budget accounts, the FONDEN program for reconstruction and FOPREDEN program for prevention, and their respective financial accounts. The FONDEN program for reconstruction is FONDEN's primary budget account. It channels resources from the federal expenditure budget to specific reconstruction programs. The FOPREDEN program for prevention supports disaster prevention by funding activities related to risk assessment, risk reduction, and capacity building on disaster prevention. The FONDEN system is continuously evolving to integrate lessons learned over the course of years of experience. -
Publication
Colombia - Programmatic Strategic Engagement on Public Sector Management and Governance : Concept Note
(Washington, DC, 2011-03-14)This concept note presents the strategic engagement of the World Bank in the areas of public sector management and governance in Colombia. It describes the short and medium term approach through which the Bank will provide support to the country on those areas of reform, as well as their links and synergies with other sectors activities. It also provides a summary of the Bank's public sector management and governance recent activities and their links with the program proposed by this strategy. This concept note lays out the strategy and program of financial support, knowledge and convening services to continue supporting the Government's public sector reform agenda in a demand-driven and flexible manner. The program aims to contribute to improve sustained and inclusive growth and competitiveness through strengthened government's management and improved service delivery. Its objectives are aligned with the National Development Plan (NDP) pillars and cross-cutting themes of good governance and regional development and integration, as well the Country Partnership Strategy (CPS) outcomes. The remainder of this note is structured as follows: (i) section two summarizes the trend public sector reforms have been following in Colombia; (ii) section three provides an overview of the trajectory the reform key National Government Management Institutions (NGMI) has followed in Colombia, summarizing the current status of Government's efforts in this area and outlining the pending policy reform agenda; (iii) section four presents a review of past Bank engagement in NGMI' s reforms and a description of the strategy to respond to the Government's priorities and pending reform agenda, including key expected outputs; (iv) section five provides an overview of the trajectory decentralization reform has followed in Colombia, summarizing the current status of Government's efforts in this area and outlining the pending policy reform agenda; (v) section six presents a review of past Bank engagement in decentralization reforms and a description of the strategy to respond to the Government's priorities and pending reform agenda, including key expected outputs; and, (vi) section seven contains a resource section, describing the timeline of proposed activities, budget, team composition, and processes for quality review, monitoring and evaluation. -
Publication
Analysis of Disaster Risk Management in Colombia : A Contribution to the Creation of Public Policies
(Washington, DC: World Bank, 2011)The objective of this analysis is to assess the state of progress of risk management in Colombia and propose recommendations to help the Government set public policy in the short-and long-term. For this reason, the study sought to: (i) establish the risk and impact of disasters in recent decades, (ii) identify legal, institutional and conceptual themes in the country, (iii) review the state and evolution of investment in risk management, (iv) analyze the role of local authorities and industry in the risk management, and (v) identify gaps and challenges in the definition of the responsibilities of public and private sectors. This report, a product of joint work with multiple public and private agencies, is not limited in analyzing the causes of risk and measuring their growth. By contrast, it elaborates on the institutional developments in the risk management at different levels of government and how the topic is incorporated in the territory of public administration and industry. It further states the great opportunities for joint risk management instruments of disaster planning, investment, existing monitoring and control, and shows the need to define public and private responsibility as part of a reduction strategy of the state's fiscal vulnerability. In conclusion, the study shows that if the country does not want to see economic growth accompanied by more frequent and larger losses it will be essential to have a radical change in development policies and land management practices and industry. Therefore, the present document defines a set of recommendations to improve management of disaster risk at the level of state policy, showing that the priority to reduce the impact of disasters is based on the task of improving conditions of use and occupation of territory. -
Publication
Pakistan : Contingent Liabilities from Public Private Partnerships
(Washington, DC, 2010-07)This final report is the fourth and final deliverable in Castalia's assignment, funded by the World Bank, to improve how contingent liabilities are managed in Pakistan. The report presents recommendations on how Pakistan should improve its policies and processes for issuing and managing contingent liabilities associated with public private partnerships (PPPs) in infrastructure. The contents of this report are organized as follows: section two explains why it is important for Pakistan to establish sound policies for managing contingent liabilities, based on the Government's existing exposure and gaps in the policies and processes that are currently in place. The Status Quo Report presented in appendix A provides an assessment of the Government's exposure to contingent liabilities and the existing policies and processes that are in place. Section three explains how Pakistan can better manage contingent liabilities by presenting recommendations to eight specific functions that will strengthen existing PPP policies. Section four analyzes options for who should perform the functions for managing contingent liabilities, and explains why we recommend empowering existing institutions in the preferred institutional framework. Section five presents the steps we suggest that the Government follows to implement these recommendations and operationalize an effective contingent liabilities management framework. Finally, section six presents assessment of international experience and good practice in managing contingent liabilities to provide additional context for recommendations in Pakistan. Appendix A includes the Status Quo Report from the first stage of this assignment. Appendix B includes a summary of the stakeholder consultation workshop conducted in Islamabad on July 21 to receive feedback on the draft recommendations for this assignment. -
Publication
Sudan - Strengthening Good Governance for Development Outcomes in Southern Sudan : Issues and Options
(World Bank, 2010-04-01)This report is the product of a joint Government of Southern Sudan (GoSS) and World Bank initiative aimed at facilitating informed policy making in key areas of public service management. The objective was to facilitate a process in which a Bank-supported team will provide technical inputs and will support appropriate consultation leading to informed and pragmatic policy making and implementation. Coordination, in particular on policy formulation, is difficult and a key constraint in young governments and more so in post-conflict situations such as that of Southern Sudan. Available analytical and executive capacity is already stretched. The number of issues that need to be addressed is large and prioritization is difficult. There are sharp political divisions that are not easily reconciled. The report is presented in two parts. Part one provides the background as well as a summary of findings and recommendations. Chapter one provides a brief historical background and lessons from this experience but may be skipped without loss of continuity. Chapter two presents an overview of the issues and options facing the GoSS in managing the public service, implementing the decentralization vision and tackling corruption and summarizes the findings presented in detail in the second part of the report. Part two covers the three thematic areas that are the subject of this initiative in greater detail: chapter three on public service reform, chapter four on decentralization, and chapter five on corruption. Two annexes document key aspects of the process. A third annex summarizes a paper on traditional authorities prepared as part of this exercise. -
Publication
Democratic Republic of Congo - The Impact of the 'Decoupage' : Executive Summary
(World Bank, 2010-03-01)In its new Constitution, proclaimed on February 18, 2006, the Democratic Republic of the Congo (DRC) committed itself to reforming its administrative and territorial architecture. Following this reform, the country, which now has 11 provinces, will be subdivided into 26 provinces. According to constitutional provisions, the transition from 11 to 26 provinces is to take place within three years after the establishment of the third Republic's main governing institutions. The Senate, the final institution to be established, was set up in May 2007, and the country's new administrative structure should be implemented by May 2010 at the latest. The aim of this study, which was carried out at the request of the Government of the DRC and jointly financed by the World Bank, the Belgian Development Cooperation, the European Commission, and the United Nations Development Program (UNDP), is an in depth analysis of the main aspects of the decoupage process. It includes an assessment of the administrative and institutional capacity of the new provinces and an examination of their financial and budgetary sustainability as well as of the economics of the process. The results of the study were presented to a validation workshop held in Kinshasa on July 16, 2008. The workshop was organized by the Government of the DRC, and it was attended by representatives of the President of the Republic, the Prime Minister, the National Assembly, the Senate, the Ministries of Decentralization, finance, budgeting, and planning, representatives from the various provinces involved in the decoupage process, and development partners including the World Bank, UNDP, the Belgian Development Cooperation, and the European Union. At the end of the workshop, recommendations for rationalizing the decoupage process in the DRC were made with a view to maximizing efficiency. These recommendations are listed at the end of each chapter in this study.