Other Public Sector Study
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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
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
Land Governance in South Sudan : Policies for Peace and Development
(Washington, DC, 2014-05)South Sudan is a new country of 10.5 million people that has just emerged from conflict and still facing challenges with recovery and development. Although economic disparities, political exclusion and deprivation in the distribution of political and economic power between the northern and southern parts of then united Sudan were often tendered as the proximal causes of the conflict, at the center of the prolonged civil war was the struggle for ownership, control and use of land resources. The tool underpinning this report is the Land Governance Assessment Framework (LGAF), a diagnostic instrument for rapid evaluation of various aspects of land governance. LGAF was developed through a collaborative effort between the World Bank, Food and Agriculture Organization (FAO), UN Habitat, International Fund for Agriculture Development (IFAD), the International Food Policy Research Institute (IFPRI) and the African Union (AU). -
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
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
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
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
Lao People's Democratic Republic - Investment and Access to Land and Natural Resources : Challenges in Promoting Sustainable Development, A Think Piece (A Basis for Dialogue)
(World Bank, Washington, DC, 2011-11)The aim of this discussion paper is to ascertain the government of Lao's (GoL) current practices in negotiating, awarding, and managing land concessions; enhance GoL understanding and commitments to develop national capacities targeting improved land management, that will generate revenues for GoL, and ensure sustainable development as an urgent priority; and provide a basis for dialogue within the government to enable its determination of priorities to better address land development issues in Laos, to enable the achievement of sustainable, responsible economic development. The paper also examines key issues revolving around the sustainable utilization of land, and the mechanisms, through an examination of GoL s policy statements. The findings are provided, and the report advises that GoL pay special attention to four major points: the availability of adequate and accurate information on which to make decisions on concessions; adequate capacity within GoL agencies to determine, award and monitor/oversee the operation of concessions; and governance over land and natural resources. These points of guidance are expected to contribute towards developing sustainable approaches for land administration and management programs in Lao PDR, and enabling GoL to adopt more rigorous oversight of the land and natural resources sector, as well to the political economy aspects of resource management. -
Publication
Republic of Armenia - Fiscal Consolidation and Recovery : Synthesis Report
(World Bank, 2011-11-01)Armenia's structural reforms since 1999 have led to a strong economic record, including low fiscal deficits and declining public debt over the pre-crisis decade. Between 2001 and 2008 Gross Domestic Product (GDP) grew at an average annual rate of 12 percent and poverty fell from over 50 percent to about 28 percent of the population. Over this period of rapid growth, prudent fiscal management contained fiscal deficits between 0 and 2.5 percent of GDP and helped to reduce public debt from 49 percent to 16 percent of GDP. This fiscal headroom allowed the Government to respond to the crisis with an appropriately large fiscal stimulus. When GDP contracted by more than 14 percent in 2009 and total revenues fell sharply, nominal public spending was increased by 13 percent to shore up the domestic economy and protect the poor and vulnerable. Despite the severity of the crisis, the Government maintained a sound macroeconomic framework while continuing to undertake social protection expenditures to mitigate the impact of the crisis on the most vulnerable people. This was done by securing sizable external financing. The fiscal deficit rose to 7.8 percent of GDP in 2009 and the public debt to GDP ratio rose from 16 percent in 2008 to 40.2 percent. Efforts at fiscal consolidation reduced the fiscal deficit to 5.6 percent of GDP in 2010, but public debt is projected to reach 42 percent of GDP in 2011.The report is in two volumes: a synthesis volume and a background volume. The synthesis volume summarizes the macroeconomic context of Armenia (chapter one), analyzes the recent debt dynamics and its implication for fiscal consolidation (chapter two, then assess the revenue potential the Government can tap (chapter three) while ensuring key growth-sustaining and poverty-reducing expenditures are maintained (chapter four). The background volume provides more details on the assessment of the tax potential of the mining sector (chapter one), and thoroughly analyzes the efficiency of spending on the public sector wage bill (chapter two), health (chapter three) and education (chapter four). -
Publication
Republic of Armenia - Fiscal Consolidation and Recovery : Background Papers
(World Bank, 2011-11-01)Armenia's structural reforms since 1999 have led to a strong economic record, including low fiscal deficits and declining public debt over the pre-crisis decade. Between 2001 and 2008 Gross Domestic Product (GDP) grew at an average annual rate of 12 percent and poverty fell from over 50 percent to about 28 percent of the population. Over this period of rapid growth, prudent fiscal management contained fiscal deficits between 0 and 2.5 percent of GDP and helped to reduce public debt from 49 percent to 16 percent of GDP. This fiscal headroom allowed the Government to respond to the crisis with an appropriately large fiscal stimulus. When GDP contracted by more than 14 percent in 2009 and total revenues fell sharply, nominal public spending was increased by 13 percent to shore up the domestic economy and protect the poor and vulnerable. Despite the severity of the crisis, the Government maintained a sound macroeconomic framework while continuing to undertake social protection expenditures to mitigate the impact of the crisis on the most vulnerable people. This was done by securing sizable external financing. The fiscal deficit rose to 7.8 percent of GDP in 2009 and the public debt to GDP ratio rose from 16 percent in 2008 to 40.2 percent. Efforts at fiscal consolidation reduced the fiscal deficit to 5.6 percent of GDP in 2010, but public debt is projected to reach 42 percent of GDP in 2011.The report is in two volumes: a synthesis volume and a background volume. The synthesis volume summarizes the macroeconomic context of Armenia (chapter one), analyzes the recent debt dynamics and its implication for fiscal consolidation (chapter two, then assess the revenue potential the Government can tap (chapter three) while ensuring key growth-sustaining and poverty-reducing expenditures are maintained (chapter four). The background volume provides more details on the assessment of the tax potential of the mining sector (chapter one), and thoroughly analyzes the efficiency of spending on the public sector wage bill (chapter two), health (chapter three) and education (chapter four).