Measuring Governance and Democracy: A Methodology and Some Illustrations
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1 Measuring Governance and Democracy: A Methodology and Some Illustrations Presented to: 3 rd OECD World Forum Statistics, Knowledge and Policy Busan, Korea October 27-30, 2009 Presented by: Francesca Recanatini Senior Economist PREM Public Sector Governance World Bank Slide 1 Slide 1
2 Outline Measuring Governance A Definition Motivation Methodology/ies (Kaufmann- Recanatini) Survey data Agency-level Indicators Disseminating Knowledge about Governance New Actionable Governance Indicators Data Portal Going forward Slide 2 Slide 2
3 Governance and Corruption Governance The process, institutions and customs through which the function of governing is carried out. Corruption Using public office for private gain Corruption is an outcome a consequence of weak or bad governance Poor delivery of services and weak investment climate are other outcomes of bad governance Slide 3 Slide 3
4 Citizens/Firms Good Governance has many dimensions Citizens/Firms Political Governance Political competition, broad-based political parties Transparency & regulation of party financing Formal Oversight Institutions Independent judiciary Legislative oversight Independent oversight (SAI) Global initiatives: UN, OECD Convention, anti-money laundering Public Sector Management Public finance management & procurement Civil service meritocracy & adequate pay Service delivery and regulatory agencies in sectors Civil Society & Media Free press, FOI Civil society watchdogs Private Sector Interface Streamlined regulation Extractive Industry Transparency Initiative Collective business associations Citizens/Firms Decentralization and Local Participation Decentralization with downward accountability Community Driven Development (CDD) Oversight by parent-teacher associations & user groups Citizens/Firms Outcomes: Services, Regulations, Corruption Slide 5 Slide 5
5 We have the tools, but not always the opportunity While we cannot directly engage in enforcement actions or political activity, some forms of state capture and grand corruption can be addressed through instruments available to the Bank: Capture Embezzlement Monopolies Directed credits Tax preferences Procurement fraud Patronage/nepotism Selling legislative votes Bribery The challenge is political will and sustainability of reforms. Campaign finance disclosure PFM reform Competition policy Banking reform Tax transparency reform Procurement reform Civil service reform Right to information Income & asset disclosures & stolen asset recovery Slide 6 Slide 6
6 Use a working framework Conceptual dimension Implementation process Governance Assessment Empirical tools & sample Analysis & use Slide 7 Slide 7
7 Measuring governance: possible outcomes Broader awareness Enhanced local capacity Internet, radio Focus groups Governance Assessment Workshops Policy dialogue Greater consensus Knowledge for policy and/or research Slide 8 Slide 8
8 Governance diagnostic surveys - Approach A participatory process to identify governance challenges and build local capacity Key features: Three surveys: households, firms and public officials Questions focused on experience, adapted to local realities and tested in the field Survey instruments and results validated through focus groups Rigorous technical implementation Local institution implements Slide 9 Slide 9
9 % public officials report frequent cases of corruption in public administration % of public officials report frequent purchase of positions in their institutions Country Diagnostic Results Extent of corruption, (Selected Countries 03-05) % of public officials report frequent public funds mis-management 0% 15% 30% 45% 60% 75% 90% Sierra Leone(2003) Guinea(2004) Guatemala(2004) Zambia(2003) Paraguay(2005) Mozambique(2004) Madagascar(2005) Slide 12 Slide 12
10 Country Diagnostic Results Corruption increases inequality Percentage of household income spent on bribes to obtain services, by income status (as reported by households), Sierra Leone, 2003 Surveys and Lands Municipal/Dist. Councils Judges/Courts officials Income Tax Department Public education services Public health services high income middle income low income 0% 5% 10% 15% 20% percentage of household income spent on bribes Slide 13 Slide 13
11 Min. of Health Min. of Agriculture S.L Police Min. of Justice Min. of Education Min. of Social Welfare Min. of Local Govt. Min. of Finance Para-statals Others Nat. Commissions Min. of Information Min. of Development Min. of Defence Country Diagnostic Results Public funds are mismanaged by agency (as reported by Public Officials, Sierra Leone, 2003) % of Public Officials that said irregularities/(misappropriations) are frequent Slide 14 Slide 14
12 Mechanisms to participate to policy process Association/NGO Direct tie to public officials None Southern Northern Eastern Western % of households reporting to use the following channel to participate in the policy process (Sierra Leone, 2003) Slide 15 Slide 15
13 Sector Diagnostics: Innovative Features Sector-specific focus: Apply methodology and solutions to country and sector realities Mixed methods: Focus groups & In-depth Interviews Surveys (households, businesses & civil servants) Desk study Project cost data Active participation of civil society and government to contribute to policy making process. Close collaboration with donors colleagues. Active links to on-going sector projects WB transport and port projects EU transport ministry aid project Slide 18 Slide 18
14 Agency-level Indicators Using responses from public officials Public officials are employees of each agency Public official s responses are re-scale (from 0 to 100) and then aggregated by agency using factor analysis technique 0 always meaning the lowest level of quality of governance, corruption, access or service performance Slide 19 Slide 19
15 Governance Indicators, by agency (based public officials from 20 agencies, Guinea 2004) Audit Mechanisms Enforcement of Rules Quality of Rules Politicization Resources Transparency Citizen Voice Wage Satisfaction Service State Capture Overall Corruption Ministère de la justice Ministère de la Sécurité Ministère de l Administration et de la Décentralisation Ministère des Finances Ministère de l Enseignement Supérieurs et Recherche Scientifique Ministère de l Urbanisme et Habitat Ministère de la Santé Publique Service Communal Service Sous Préfectoral Ministère de la Communication Ministère de la Jeunesse et Sports Ligue Islamique Nationale Ministère de l Agriculture Ministère de l enseignement Pré Universitaire Ministère de la Fonction Publique Organisation Non Gouvernementale (ONG) Entreprise Micro Finance Ministère de l Energie, Mines et Environnement Whole Country The indicators above take values between To interpret them please keep in mind that: -The higher the value of the governance indicator the better the quality of that dimension. -The higher the value of the corruption index, the more severe the problem.
16 Accessibility to the Poor Citizen Voice Improves Accessibility of Public Services to the Poor (Bolivia, 1999) r = Controlled Causal Link Voice / External Accountability Based on Public Officials Survey. The sample of institutions includes 44 national, departmental, and municipal agencies which are a prior anticipated to be accessible to the poor Slide 25 Slide 25
17 Disseminating Knowledge Actionable Governance Indicators Rules of the game Exogenous factors Governance system performance Organizational Capacities Slide 27 Slide 27
18
19 Lessons learnt Do we actually know anymore what we are measuring? Multi tools do not translate into less precision or confusion. Rather, competition allows us to improve our methodologies and to create interesting partnerships (Madagascar, Paraguay, Peru) How can we help various stakeholders make appropriate use of all the tools out there? Local focus, local capacity building, participation, and learning by doing (Paraguay, Peru, Sierra Leone) Slide 33 Slide 33
20 Lessons learnt, cont. How do we balance global (ranking) measurement tools with national assessments? Two sides of the same coins, but with different objectives. Important that the two approaches complement each other Who should be involved in measuring? It depends on the country reality. Our experience: the country as a whole. But donors, INGOs can play a very important role (Sierra Leone, Mozambique, Haiti). NSOs should also be involved to promote sustainability (Peru, Paraguay) Slide 34 Slide 34
21 Lessons learnt, cont. What are the advantages and disadvantages of the approach used? Pros: Greater local capacity, consensus and ownership that can ensure sustainability of reform process; south-south knowledge dissemination (Costa Rica, Zambia, Mozambique, Haiti) Cons: Time consuming and costly; challenging to coordinate many different actors, especially international ones; unforeseen political changes To what extent have measurement tools helped shape public sector reforms? Honduras, Burundi, Mozambique, Madagascar Slide 35 Slide 35
22 Lessons learnt, cont. Additional challenges 2 nd generation diagnostics focus on sector governance => more challenging to apply this model at the sector level (Mauritania, Senegal, Yemen and Morocco) Government commitment Transparency of process Participation of different stakeholders Slide 36 Slide 36
23 WB Governance Resources on the Web Governance and Anti-corruption: ~menuPK:34480~pagePK:34370~theSitePK:4607,00.html Public Sector Group: ECTORANDGOVERNANCE/0,,menuPK:286310~pagePK:149018~pi PK:149093~theSitePK:286305,00.html Governance and Anti-corruption (WBI): COR/0,,menuPK: ~pagePK: ~piPK: ~theSit epk: ,00.html Governance Diagnostic Surveys Country Sites: Courses and Surveys: Governance Diagnostic Capacity Building: Actionable Governance Indicators Website: (internal) (external) Additional material available upon request: Slide 37 Slide 37
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