44888 Capacity Development briefs S h a r i n g k n o w l e d g e a n d l e S S o n S l e a r n e d Parliament's role in Poverty reduction strategies By cindy Kroon and rick stapenhurst Parliaments play a crucial role in improving governance and public service delivery. Those countries with strong parliamentary oversight have been able to shape policy directions and priorities. This article explores the growing role of parliaments in crafting poverty reduction strategy papers (PRSPs) since the process was first launched in 1999. Although the parliaments of many developing countries still have a long way to go before they will maximize their ability to strengthen the outcomes from country-level pov- erty reduction strategies (PRSs), the first decade of the poverty reduction strategy process has produced some important examples of the ways that parliaments can get involved, shape the debate, and learn from the experiences of legislatures in other countries. The cases of Tanzania and Malawi illustrate how parliamentary committees and parliaments can develop in terms of policy leverage and leadership. Poverty reduction strategies and country ers within and outside of central ministries, including ownership from line ministries, local governments, parliaments, civil society, and private sector groups. The poverty reduction strategy is intended to pro- mote economic growth and reduce poverty through a Why Parliament? country's macroeconomic, structural, and social poli- cies and programs. The PRS provides a framework The heart of much new thinking about poverty reduc- for low-income countries to articulate their develop- tion and the PRS lies in the emphasis on wide commu- ment priorities and specify the policies, programs, nity participation. As representatives of citizens, par- and resources needed to meet their goals. The World liaments have the duty to ensure that the voice of the Bank launched the strategy in 1999 and set poverty people is heard. Given their representative, oversight, reduction as the main development goal. As of August and legislative functions, parliaments are uniquely posi- 2007, 65 countries were participating in the PRS pro- tioned to understand and monitor the effects of poverty cess, 33 of them in Africa. Together with the principles and act as a bridge among the government, private sec- to guide development and poverty reduction set by tor, and civil society. Parliaments provide the potential the Comprehensive Development Framework (CDF), to serve as a forum for multiparty consensus on poverty the PRS allows for a participatory process driven by reduction priorities and thus for countrywide support the national government, involving civil society and and ownership. Parliaments are typically at the apex of development partners (including the World Bank and accountability hierarchies, having the ability--at least the International Monetary Fund) as the way forward de jure, if not de facto--to sanction governments when to development. enforcement of accountability is required. The process is based on medium- and long-term perspectives, is results oriented, and, most important, rests on broadly based participation and country own- role of Parliament ership. This means that sufficient political support must exist within a country to implement the PRS. The rationale for parliamentary engagement in the The government needs to have support of stakehold- PRS process is fivefold and illustrated in figure 1. MAY 2008 NUMBER 26 Figure 1: PRS Policy Process which are of particularly serious concern in poverty reduction. Poverty Poverty Budget Cycle Furthermore, through monitoring and evaluation Diagnosis and Policy Priority Process with Analysis Decisions PRSP Changes of policy outcomes, the parliament can work together with civil society and insist on explanations when goals are not met in practice. It can use its audit functions to contribute to monitoring of PRS-related Monitoring and Policy expenditures. Evaluation of Implementation The challenge is for parliaments to use their over- Outcomes/Impacts and Service Delivery sight responsibilities, influence on budget matters, and legislative leverage to see that the needs of the Source: WBI and Parliamentary Centre (2001). poor are heard and met in the PRS process. Parliament can play a role in the diagnosis and involvement of Parliaments in Practice analysis of poverty. It is crucial to identify where con- centrations of the poor exist within a society and to In the early years of the PRS, parliaments were only consider the regional, occupational, ethnic, and gender marginally involved in the PRS process.1 PRSs were characteristics of the poor for an adequate pro-poor traditionally established between civil society and policy formulation. With help from civil society, parlia- national governments and overlooked the potential ments can assure that poverty diagnosis and analysis role of parliaments. Eberlei (2001) claims that, up to encompass participation from throughout the country 2001, "parliaments have been involved either very and particularly from the poor. Parliamentarians regu- superficially or not at all. Essentially, they have never larly go back to "their" villages and towns and are in been asked to take serious decisions" (pp. 30). In its a position to listen to constituents and understand the 2001 PRS Institutionalization Study, the Overseas roots and characteristics of poverty. Development Institute concluded that PRSs generally Parliaments can also be involved in prioritizing pol- tend to be seen as technical planning processes that icy decisions related to poverty and making sure that primarily concern government and are not a subject people's voices are heard, especially those of the poor. for political debate. Literature from the early years of Policy choices will often be complex and subject to the PRS recommended involving parliaments and their influences from pressure groups. Civil society partici- committees at an early stage of the PRS process. pation can be assured by parliaments in order to build The World Bank Institute and the Parliamentary social consensus and achieve pro-poor choices. Centre launched an online Parliamentary Development Another important area for parliaments is related to Forum discussion in April 2000 to address the the country's budget. Budget analysis and review is at issue of involving parliaments in the poverty reduc- the heart of parliamentary activity for most national tion strategy. Drawing on this discussion, the 2000 legislative institutions. The PRSs must translate into Laurentian Seminar on "Parliamentarians and spending and revenue specifics and changes, and Policies to Reduce Poverty," held in Canada, brought parliaments must ultimately approve or reject PRSPs. together parliamentarians from China, Mongolia, Parliamentary involvement in budget planning can be Cambodia, Pakistan, Ghana, Nigeria, Uganda, the basis of economic policies that help build national Ethiopia, Zimbabwe and Jordan; a follow-up semi- stability. It is a crucial instrument in safeguarding nar subsequently took place in Dakar, Senegal. The PRS-based commitment to policy changes and poverty discussions produced three notable outcomes: (a) a reduction. request from the World Bank to participants to sug- Parliaments should play an active role in all phases gest how parliaments could become more engaged in of the budget process, including policy formulation, the PRS process, (b) the publication of the Handbook ensuring that what has been approved is put into for Parliamentarians on Policies to Reduce Poverty,2 effect, making sure that poverty-related priorities are and (c) an agreement between WBI and the United incorporated adequately, auditing and evaluating bud- Nations Development Programme, to work together get results to increase the effectiveness of expendi- to strengthen the capacity of parliaments to engage tures, and maintaining financial transparency. more fully in the PRS process. In 2001 the World Through its role in policy implementation and ser- Bank organized an intensive training seminar for vice delivery, parliaments can create public awareness parliamentarians on issues of poverty reduction. through information dissemination. Implementation of the new policies will also take place in line ministries and in reforms in service delivery, especially in such 1 Eberlei (2001) and ODI (2001). areas as health, education, and rural development, 2 WBI and Parliamentary Centre (2001). MAY 2008 NUMBER 26 Furthermore, in November 2003 the Parliamentary ommendations on the PRS to the executive branch Centre launched the first official parliamentary net- in Burkina Faso and Cameroon. In Rwanda and work on poverty reduction, serving parliamentarians Tanzania, public hearings have improved the quality from Africa involved in the PRS process, to create of feedback to policymakers.5 greater group dialogue and to exchange information Parliament, civil society, and community-based and best practices. With support from parliamentary organizations are beginning to build coalitions with associations worldwide, including the Parliamentary each other to influence PRS-related policy decisions. Network on the World Bank, informal networks Parliaments are beginning to sharpen their focus on have also been formed in the Middle East and Latin PRS prioritization, costing, policy coordination, and America. monitoring of poverty outcomes. The oversight role During the past seven years, WBI and its part- of the parliament is now being emphasized, with ners, including the Commonwealth Parliamentary demands for involvement of key committee members Association and the Government and Parliament of in monitoring and evaluating outcomes. Evidence also Finland, have organized multiple workshops and exists that parliaments' involvement in PRS oversight learning programs for parliamentarians from develop- is beginning to reinforce the integrity of the PRS pro- ing countries focused on parliamentary strengthening cess.6 related to budget, financial oversight, capacity train- Consider the examples of the parliaments in ing, and gender issues. Parliamentarians and resource Tanzania and Malawi and how they helped change personnel from all over the world are brought PRS priorities and performance: together at these events to share with each other experiences and practice from their own countries. Tanzania. The involvement of Tanzania's parliament The events consistently maintain a focus on poverty in setting priorities for the PRS exercise resulted in reduction. marked savings for the country. During the strategy Concurrently, there has been a growing interna- discussions with members of parliament (MPs), edu- tional recognition and upward trend in parliamen- cation was often perceived as the fundamental element tary involvement in the PRS process.3 Draman and in poverty reduction. The MPs agreed strongly that Langdon (2005) point to monitoring and evaluation as this was the area in which they had the greatest posi- the most improved and promising function of parlia- tive policy impact. Expansion of basic education in mentary involvement. Tanzania has been dramatic, driven by the elimination The World Bank (2005) shows that up, until 2005, of school fees as part of the PRSP. The net enrollment PRSPs have been formally presented to parliament in of children aged 7 to 13 was 58.5 percent in 2000, about one-third of the 59 countries with full PRSs. rose to 85 percent in 2002, combined with recruitment Parliamentary involvement is substantially in place in of 7,300 new primary teachers and building of 13,000 Uganda and Ghana, whose parliaments have approved new classrooms. This success story reflected MP mobi- a long-term vision and are involved in the implemen- lization efforts in their constituencies: the proposed tation and revision process. In 16 countries, parlia- budget was three billion shillings, but the work was mentary involvement is largely developed and parlia- completed for 1.7 billion shillings due to the owner- mentary committees are emerging as key institutions. ship and oversight of parliament.7 Seventeen countries are taking action to strengthen Malawi. The parliament of Malawi also helped the parliamentary involvement. Several PRSPs highlight country get better results from its spending on HIV/ the role of parliament in PRS oversight, either through AIDS interventions. In 2001 Malawi had a HIV/AIDS a PRS standing committee (e.g., Azerbaijan and prevalence rate of 15 percent for the ages of 15­49, Ghana), other standing committees (such as budget one of the highest in Africa. The parliament focused committees), or through membership of PRS steering on the issue of mainstreaming action on HIV/AIDS committees managed by the executive branch (e.g., across all ministries and agencies. It called for work- Chad and Georgia). Some parliaments (e.g., Bosnia place programs and other HIV-related interventions and Herzegovina, and Ethiopia) are implementing in all ministries. The Health Committee for Parliament changes to facilitate legislative oversight of PRS imple- met with the Minister of Health specifically on ensur- mentation. Many governments report to parliaments ing utilization of funds that had been allocated, but on budget and PRS progress (e.g., Benin, Kyrgyz Republic, Mozambique, and Tajikistan).4 Parliaments are also increasing their ability to con- 3World Bank / IMF PRSP Review (2005) and Draman and tribute to the PRS process by making use of capacity- Langdon (2005). building efforts that support PRS monitoring, such as 4Ibid. WBI's courses on parliaments and the PRSP process, 5Ibid. tools for financial oversight, and parliament and the 6Sharkey, Dreger, and Bhatia (2006). budget. This has resulted in more targeted policy rec- 7Draman and Langdon (2005). were not used by the ministries.8 Such initiatives by references parliaments have had a significant impact on deciding what direction the PRSs will take. Draham, R. and S. Langdon. 2005. PRSPs in Africa: Parliaments and Economic Policy Performance. Future challenges Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ), Eschborn, Germany. Despite these developments, still significant Eberlei, Walter. 2001. Institutionalised Participation improvements can be made on parliamentary involve- in Processes beyond the PRSP. Deutsche Gesellschaft ment. In about one-third of the countries, elements fur Technische Zusammenarbeit, Eschborn, Germany. exist for stronger parliamentary involvement, but Hubli, K. and A. Mandaville. 2004. Parliaments and progress has been minimal and largely limited to the PRSP Process. World Bank Institute, World Bank, strategy formulation. In four countries, little or no Washington, D.C. action has been taken at all.9 Sharkey, Dreger, and Leautier, F. 2002. "Parliaments and Poverty. Bhatia (2006) conclude that "references to the need Building the Capacity to Tackle the Problems." The for parliamentary approval of PRS policies can be Parliamentarian 2002/Issue 2. found in many PRS documents, and of course, any Overseas Development Institute. 2001. PRSP required legislation would have to be enacted by par- Institutionalization Study: Final Report. London. liaments. Despite this, parliamentary review of such Power, G. 2008. Donor Support to Parliaments and strategies to date has been limited." Political Parties: An Analysis Prepared for DANIDA. The principles of legislative involvement in the PRS Danish International Development Agency (DANIDA), process are universal, but actual applications are Copenhagen. country specific. Legislatures in many PRS countries Sharkey, K., T. Dreger, and S. Bhatia. 2006. The Role lack the human, financial, and institutional capaci- of Legislatures in Poverty Reduction: Experience and ties needed for effective engagement. Fundamental Future Directions. WBI Working Paper. World Bank, infrastructure (offices and office equipment, reference Washington, D.C. materials, staff, and consistent utilities) is often lack- World Bank. 2005. Enabling Country Capacity ing, and access to data or inaccurate information is to Achieve Results. 2005 CDF Progress Report. often restricted.10 Washington, D.C. The strengthening of parliamentary committee World Bank and International Monetary Fund. capacity seems to offer the most promise from a devel- 2005. 2005 Review of the PRS Approach: Balancing opment point of view. World Bank grants, credits, and Accountabilities and Scaling Up Results. Washington, loans are being made available to help parliaments D.C. fulfill their core functions of legislation, oversight, and World Bank Institute and Parliamentary Centre. representation more effectively. 2001. Handbook for Parliamentarians on Policies to Reduce Poverty. Ottawa, Canada. Peer reviewers: Katrina Sharkey, senior opera- tions officer, Africa Region, The World Bank and 8 Ibid. Niall Johnston, former director of programmes, 9 World Bank (2005). Commonwealth Parliamentary Association. 10 Hubli and Mandaville (2004). about World Bank institute (WBi): Unleashing the Power of Knowledge to Enable a World Free of Poverty The World Bank Institute (WBI) helps countries share and apply global and local knowledge to meet development challenges. WBI's capacity development programs are designed to build skills among groups of individuals involved in performing tasks, and also to strengthen the organizations in which they work, and the sociopolitical environ- ment in which they operate. WBi contact: Mark Nelson; program manager, Capacity Development Resource Center Tel: 202-458-8041, e-mail: mnelson1@worldbank.org Ajay Tejasvi; program coordinator, Capacity Development Resource Center Tel: 202-458-4064, e-mail: anarasimhan@worldbank.org Visit our website for more information and download the electronic copies of all Capacity Development Briefs at http://www.worldbank.org/capacity MAY 2008 NUMBER 26