Other Public Sector Study
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Publication
Delivering Together: Using Indonesia's Village Law to Optimize Frontline Service Delivery
(World Bank, Washington, DC, 2021-08-19)Over the past twenty years, Indonesia has pursued an ambitious policy agenda for decentralization. Indonesia's subnational governments play a key role in providing frontline services. In 2014, Indonesia's Village Law ushered in a new chapter in the country's decentralization agenda. The law establishes a legal and financial foundation for villages to contribute to Indonesia's rural development. In 2020, village transfers accounted for around ten percent of all subnational transfers, playing an important role in Indonesia's Coronavirus (COVID-19) response strategy. Despite these positive results, several frontier issues in the overall decentralization agenda hinder villages' contributing potential to improving frontline service delivery. This report categorizes these structural challenges into four broad categories of regulatory challenges, coordination gaps, limited capacity building systems, and fragmentation in accountability systems. The report aims to show how overcoming these structural challenges can enable the government to institutionalize systems of accountability and participation into its wider service delivery framework. -
Publication
Peru: Building a More Efficient and Equitable Fiscal Decentralization System
(World Bank, Washington, DC, 2017-05-02)Over the past two decades, Peru has achieved remarkable economic success. Average annual Gross Domestic Product (GDP) growth has exceeded 5 percent since 2001. Poverty has been consistently reduced, and sustained improvements have been observed in social and human development. The poverty incidence rate fell from 58 to 23 percent between 2004 and 2014, and households’ incomes at the bottom 40 percent grew 50 percent faster than the national average. The structural transformation of Peru’s economy striking fast and widely shared growth transformed Peru into an upper-middle income and diversified economy. This report analyzes recent trends of the fiscal decentralization process in Peru and presents a set of reform options designed to harvest the envisaged efficiency and equity gains in service delivery that the fiscal decentralization was expected to bring. The analysis and policy options are presented in a conceptually logical order: (i) departing from institutional arrangements in the vertical structure of subnational governments passing to (ii) the need of a clearer definition of spending responsibilities among levels of government that needs to be followed by (iii) a commensurate redefinition of revenue assignments and (iv) enhancing equalization role of the transfer system. -
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
Decentralization and Subnational Service Delivery in Iraq: Status and Way Forward
(World Bank, Washington, DC, 2016-03)Since the Constitution (2005) provided for decentralizing powers and functions for the Governorates, the government of Iraq has enacted several legal, policy, and institutional reform initiatives, the intent of which is to shift political and administrative powers and responsibilities from the Central Government to the Governorates. The legal and policy framework for decentralization is yet to be followed through with efficient implementation. The Government of Iraq and the World Bank will like to assess the current status of decentralization and its implications for improving service delivery at the Governorate level. The objective of the assessment is to take stock of the current state of decentralization in Iraq with a view to identifying factors that contribute to weak service delivery performance at the governorate level. The assessment will also make recommendations for policy and process reforms that are deemed necessary to moving forward the decentralization process, thereby helping to improve service delivery performance by the Governorates. The assessment was carried out through a combination of desk reviews and field level consultations. This assessment provides a snapshot of the current status of the decentralization process. It identifies policy and process reform measures that are necessary to strengthen service delivery by the 15 Governorates of Iraq. Strengthening local accountability should be the key to strengthening the service delivery performance of the Governorates. -
Publication
Responding to the Challenge of Fragility and Security in West Africa: Natural Resources, Extractive Industry Investment, and Social Conflict
(World Bank, Washington, DC, 2015)The inability to unlock natural resource wealth for the benefit of developing countries’ local populations, a phenomenon popularly known as the ‘resource curse’ or the ‘paradox of plenty’, has spawned extensive debate among researchers and policy makers in recent years. There is now a well-established body of literature exploring the links between natural resources and conflict, with some sources estimating that over the past 60 years, 40 percent of civil wars have been associated with natural resources. Following this introduction, Section two provides an overview of interstate tensions in West Africa in order to improve understanding of the drivers of fragility that trigger conflict between countries around extractive industry investment. Here, the discussion is grounded in examples in which interstate tensions have been apparent, including the case of the Mano River Union, Cote d’Ivoire, Guinea, Liberia, and Sierra Leone, a region with a history of conflict, and where the exploitation of commercial deposits of high-value resources may continue to have a potentially destabilizing effect. Section three focuses on the decentralization of natural resource revenues, a process that proponents believe can help manage grievances and defuse intrastate tension in areas directly affected by resource extraction, but one that is also not without challenges. Drawing upon the case of Ghana’s Mineral Development Fund, the section explores the potential for conflict (and conflict triggers) to arise when the redistribution of extractive industry revenues to subnational regions takes place. In doing so, it becomes apparent that the capture and misuse of revenues from the fund is as much a political issue as it is a policy or technical one. This sets the stage for section four, which focuses in greater detail on extractive industry-related conflict within catchment communities, and how contestation is most often a result of unequal power relationships. Section five, the conclusion, summarizes and reflects upon some of the challenges and struggles over resource management associated with West Africa’s recent resource boom, and draws out some of the cross-cutting themes. Here, suitable entry points for future lines of inquiry and engagement are identified. -
Publication
Local Service Delivery in Nepal
(Washington, DC, 2014-06)The effectiveness of public service delivery depends in large part on the capability, resources and inputs, and the motivation of frontline service providers at the local level. In Nepal a combination of de-concentrated line agencies and local bodies at the district, municipal, and village level provides inputs which are translated into delivery of service outputs and outcomes. Yet the relationships between line agencies and local bodies in service delivery are not well understood. The purpose of this report is to examine in detail the current dynamics of frontline service delivery to identify institutional limitations and present approaches to addressing them. This study seeks to map out the dynamics of service delivery at the local level through analysis of the institutional framework and actual practices in service delivery in 14 jurisdictions in the two districts of Dhankuta and Dhanusa. The study includes a detailed review of the provision of local roads networks and primary and lower secondary education. In this context, the report is divided into four parts: part one gives introduction; part two presents institutional framework for local service delivery; part three focuses on sub-national service delivery: local roads and primary education; and part four presents conclusions and recommendations to improve frontline service delivery. -
Publication
Decentralization, Accountability and Local Services in Sierra Leone : Situation Analysis, Key Challenges and Opportunities for Reform
(Washington, DC, 2014-04-02)Following years of civil war that ended in 2002, Sierra Leone has pursued a policy of decentralization, devolving responsibility for many government functions to the Local Council level. The aims of this policy include achieving a more equitable and inclusive access to public services across the national territory, in part to alleviate regional inequities that contributed to the civil war. The implementation of the decentralization policy has faced many obstacles, however, including the need to rebuild local government institutions and capacity after 30 years of centrally dominated governance; the limited devolution of financial resources; and multifaceted political economy hurdles. This report, first, analyzes the current state of decentralization in Sierra Leone; second, identifies the most prominent challenges to continued decentralization; and, third, discusses options for the way forward. The report draws on qualitative and quantitative data collected from both central and local government stakeholders, and takes the perspective that decentralization and strengthened local governance institutions are an effective means to localize development and improve the effective and equitable delivery of key public services. The study focuses on progress to date and standing challenges in four key areas of analysis: fiscal decentralization, human resource decentralization, ensuring inclusivity and accountability in local governance, and ensuring efficiency and responsiveness in service delivery. -
Publication
Ethiopia Public Sector Reform Approach : Building the Developmental State - A Review and Assessment of the Ethiopian Approach to Public Sector Reform
(Washington, DC, 2013-08-29)The objective of this report is to review and recommend improvements to Ethiopia's approach to public sector reform in order to advise the Government and executive institutions on the future of its public sector reform. The report also serves as a think piece for the World Bank, other partners, and policy makers. The report provides important basic information about the features of Ethiopia's public sector reform approach and reviews what worked well and what did not. It draws lessons from other countries' experience to help develop ideas and instruments of future public sector reforms in Ethiopia. Ethiopia's system of decentralization process has been credible in devolving power, improving governance and service delivery well as narrowing the per capital differences among Regional Governments and districts. The second phase of decentralization was 'big bang' and brought some gaps on addressing administrative and fiscal decentralization issues associated with: a) detailed clarity of expenditure and revenue assignments, b) shortage of skilled manpower and lack of incentive in remote areas and inadequate budget for recruitment , c) building local government specific purpose fiscal transfer, d) local government mandate on Public Sector Reform (PSR) and capacity building and e) transfers and f)decentralizing more decision making power to regional states on deciding financial resource for PSR and capacity building implementation. In an effort to link the incentive and pay mechanisms to performance in the civil service, the Ministry of Civil Service (MoCS) has prepared a draft incentive guideline and is waiting for its approval by the Council of Ministers; it is an important step to the way forward. In the future, the guideline has to reflect a systematic and comprehensive incentive and pay reform and performance mechanism and rolled out as it is a prerequisite to the PSR. -
Publication
Political Economy of Extractives Governance in Sierra Leone
(World Bank, Washington, DC, 2013-07)Sierra Leone is still recovering from a brutal civil war (1991-2002), fuelled in part by a valuable and easily extractable natural resource (diamonds). Sierra Leone now stands on the verge of an unprecedented period of economic growth, driven primarily by revenues from large-scale iron ore mining. Yet it continues to face many governance and developmental challenges. The rapid rise of the extractives governance agenda in Sierra Leone requires an equally swift, yet strategic response from all stakeholders: the Government of Sierra Leone (GoSL), development partners (DPs), civil society organizations (CSOs), communities, and mining companies. This report uses a 'value chain' approach to mining governance which highlights the critical stages through which a resource dependent country is expected to progress as it seeks to transform resource rents into economic growth and sustainable human development. The objective of this study is ultimately to improve the management of the natural resource endowment, enjoyed by Sierra Leone, in a manner that will allow the revenues generated from natural resource extraction to contribute in an optimal manner towards sustainable economic growth. Specifically, the study focuses on mining (iron ore, diamonds, and other minerals) and to a much lesser extent, oil and gas. By using the 'theories of change' approach to political economy analysis, the report looks at the historical challenges around extractive governance, identifies systemic features, and characteristics of 'the problem', extrapolates and analyses the incentives shaping the activities and behaviors of key stakeholders, and then lays out a possible platform for engagement based on clearly identified entry points. This report is organized as follows: chapter one is introduction, chapter two presents a summary of previous analytical work on the political economy of Sierra Leone with special reference to the extractives sector, its governance past, and possible governance futures. Chapter three undertakes an in-depth analysis of the extractives value chain in Sierra Leone and chapter four identifies key stakeholders across this value chain, noting their influence on extractives management policy and implementation, their potential relationships with other stakeholders, and influence over policy outcomes. Chapter five identifies and highlights suitable entry points for policy dialogue on extractives-led governance in Sierra Leone and possible project and technical assistance interventions across the value chain. -
Publication
Devolution without Disruption: Pathways to a Successful New Kenya
(World Bank, Nairobi, 2012-11)Kenya's new constitution marks a critical juncture in the nation's history. It is widely perceived, by Kenyans from all walks of life, as a new beginning. Indeed, many feel that post- independence Kenya has been characterized by centralization of political and economic power in the hands of a few, resulting in an uneven and unfair distribution of resources and corresponding access to social services; the opposite of an inclusive state. Born of the political opportunity created by the 2008 post-election violence, the constitution finally adopted, after almost a decade of unsuccessful reform attempts, presages far-reaching changes. Its vision encompasses a dramatic transformation of the Kenyan state through new accountable and transparent institutions, inclusive approaches to government and a firm focus on equitable service delivery for all Kenyans through the newly established county governments. Devolution is at the heart of the new constitution and a key vehicle for addressing spatial inequities. A more decentralized government makes eminent sense, given Kenya's diversity and experience with political use of central power. Decentralization has been increasingly seen and adopted worldwide as a guarantee against discretionary use of power by central elites as well as a way to enhance the efficiency of social service provision, by allowing for a closer match between public policies and the desires and needs of local constituencies. Kenya's constitution entrenches devolved government by guaranteeing a minimum unconditional transfer to counties under the new dispensation. The devolution train has already left the station: the challenge is to make sure it arrives at destination, safely and on time. The politics of devolution explain the high intensity of hopes and expectations that have been pinned to it. It also means there are high risks if they are disappointed. There are great opportunities and enormous challenges waiting for Kenya, in a critical election year, which will determine the fate of the country, politically and economically for years to come. This report takes a snapshot look at the critical issues facing Kenya's policy makers today. It does not argue for or against devolution (a decision that belongs solely to Kenyans), but presents suggestions and recommendations on how best to navigate the tough choices ahead. It's main focus in on helping Kenya manage a delicate transition.