The World Bank

Good Practice PEAM Work

PEAM Core Course

March 23, 2005

Planning for High Impact

Bill Dorotinsky, PRMPS

2The World Bank

PER Objectives

PER

Inform Donor Lending

Policy advice to client

Capacity-building

Identify lending opportunties

REFORM and

Development

It is important to keep the multiple goals in mind when planning the work

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ExamplesExamples2

TanzaniaTanzaniaThe annual government-led pubic

expenditure review process is managed by the joint govt/donor/civil society PER

working group. Each year the PER work includes a budget review, and in-depth

analysis of selected policy and management issues. Government is transferring the Secretariat supporting the work to the

Ministry of Finance.

TanzaniaTanzaniaThe annual government-led pubic

expenditure review process is managed by the joint govt/donor/civil society PER

working group. Each year the PER work includes a budget review, and in-depth

analysis of selected policy and management issues. Government is transferring the Secretariat supporting the work to the

Ministry of Finance.

PolandPolandThe 2002 PER focused on providing practical advice to the client. The client had the choice of what issues the PER would cover. As each

PER input was prepared (e.g. budget management), it was provided to Government as a stand-alone paper to meet client needs. The full PER report was a secondary aspect.

PolandPolandThe 2002 PER focused on providing practical advice to the client. The client had the choice of what issues the PER would cover. As each

PER input was prepared (e.g. budget management), it was provided to Government as a stand-alone paper to meet client needs. The full PER report was a secondary aspect.

-- the way work is done can -- the way work is done can support country institutions and support country institutions and

build capacitybuild capacity

-- the way work is done can -- the way work is done can support country institutions and support country institutions and

build capacitybuild capacity

-- focusing on the client objective -- focusing on the client objective rather than Bank product can rather than Bank product can

support reformsupport reform

-- focusing on the client objective -- focusing on the client objective rather than Bank product can rather than Bank product can

support reformsupport reform

LessonsLessons

Country ExamplesCountry Examples

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MexicoMexicoThe government, under a fee-for-service

arrangement, is purchasing World Bank advisory services on PFM for the Ministry of Finance. The

task is characterized by real-time advice and products to support development of a reform

strategy and action plan. A PER is under preparation, drawing on the knowledge gathered

via the advisory services, supplemented with selected additional missions.

MexicoMexicoThe government, under a fee-for-service

arrangement, is purchasing World Bank advisory services on PFM for the Ministry of Finance. The

task is characterized by real-time advice and products to support development of a reform

strategy and action plan. A PER is under preparation, drawing on the knowledge gathered

via the advisory services, supplemented with selected additional missions.

TurkeyTurkeyThe PER process was used to build consensus

and working relationships in Government across competing agencies.

TurkeyTurkeyThe PER process was used to build consensus

and working relationships in Government across competing agencies.

-- the way work is done can -- the way work is done can contribute to reform directlycontribute to reform directly-- the way work is done can -- the way work is done can contribute to reform directlycontribute to reform directly

-- through supporting client -- through supporting client needs, we can also meet our needs, we can also meet our

information needsinformation needs

-- through supporting client -- through supporting client needs, we can also meet our needs, we can also meet our

information needsinformation needs

ExamplesExamples LessonsLessons

Country ExamplesCountry Examples

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2

MadagascarMadagascarThe government is in the process of developing an

action plan aiming at consolidating the recommendations of different diagnosis (own government’s assessment, CFAA, CPAR, IMF

technical assistance reports, etc). The government is expecting the donors to align their program of work against this action plan. PERs could seek to

fill this consolidating role.

MadagascarMadagascarThe government is in the process of developing an

action plan aiming at consolidating the recommendations of different diagnosis (own government’s assessment, CFAA, CPAR, IMF

technical assistance reports, etc). The government is expecting the donors to align their program of work against this action plan. PERs could seek to

fill this consolidating role.

VietnamVietnamAn annual program of analytic work has grown into a Government-led PER process and donor integration in support of a Government reform program and strategy. With each iteration, the

Government takes more responsibility for leading process and producing documents --- and

completing reforms.

VietnamVietnamAn annual program of analytic work has grown into a Government-led PER process and donor integration in support of a Government reform program and strategy. With each iteration, the

Government takes more responsibility for leading process and producing documents --- and

completing reforms.

-- proving value for Government -- proving value for Government leads to continuous engagement, leads to continuous engagement,

direct support to reform direct support to reform implementation, and many implementation, and many opportunities for lendingopportunities for lending

-- proving value for Government -- proving value for Government leads to continuous engagement, leads to continuous engagement,

direct support to reform direct support to reform implementation, and many implementation, and many opportunities for lendingopportunities for lending

-- reducing transaction costs and -- reducing transaction costs and aligning donors can improve the aligning donors can improve the

chance of reform and build chance of reform and build capacitycapacity

-- reducing transaction costs and -- reducing transaction costs and aligning donors can improve the aligning donors can improve the

chance of reform and build chance of reform and build capacitycapacity

ExamplesExamples LessonsLessons

-- we can vary approach by -- we can vary approach by country circumstance, but plan country circumstance, but plan from the start for higher impactfrom the start for higher impact

-- we can vary approach by -- we can vary approach by country circumstance, but plan country circumstance, but plan from the start for higher impactfrom the start for higher impact

Papua New GuineaPapua New GuineaThe 2003 PNG PER was designed from the start to support the Government budget and public

finance reform process. Donors share the government’s view that the PER must be a

process-driven exercise aimed at helping the government implement the reforms. The PER

directly supports Cabinet and Treasury decisions and processes with specific analytic products.

Papua New GuineaPapua New GuineaThe 2003 PNG PER was designed from the start to support the Government budget and public

finance reform process. Donors share the government’s view that the PER must be a

process-driven exercise aimed at helping the government implement the reforms. The PER

directly supports Cabinet and Treasury decisions and processes with specific analytic products.

Country ExamplesCountry Examples

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SummarizingThe focus of the work is supporting Government strategies and institutions, building capacity, and reducing donor transaction costs --- towards results on the ground --- rather than solely diagnostic report production for donors.

1. the analytic work supports the Governments own public sector reform strategy and action plans

2. the work includes Government leadership in selecting topics, and Government production of working papers and the final report

3. the work outputs support the Government's own decision-making process

4. the process will be used to bring together Government actors

5. the process also brings together multiple donors to support and participate in the analytic work -- and hopefully to support more generally the Government reform strategy and action plan

6. the process also focuses on building domestic non-governmental capacity through use of local consultants where possible

7. within the Bank, the work seeks to integrate PREM, OPCSFM, and OPCSPR

A good test: the Government is increasingly taking over the process, building it into their budget process.

7The World Bank

…but the ideal is not always possiblePEIR’s, CFAA’s and CPAR’s generally should seek:

• greater country participation in planning and carrying out PFM work

• to harmonize with country budget cycles to support government processes

• be based on a country-specific strategy for PFM work over the medium-term to assure full coverage of issues, meet the relevant needs of all parties, minimize burden on country authorities, and avoid duplication of effort

• greater involvement of other donors

• cross-participation in missions by OPCS, PREM and IMF staff

• to share documentation and information on country issues, perhaps establishing a joint intranet repository

• to coordinate contract support to minimize duplication and maximize joint use of outputs

• mutual comment and concurrence on outputs, and produce joint outputs where possible (e.g. reports, or BTORs)

• joint dissemination missions, harmonizing messages

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Approaches for using PER as instrument of change- fitting to country circumstances

Client interest

Approach Emphasis

Negative PER is external review of government budget, policies, and institutions, trying to make the case to government that action is necessary

Report might cover many topics, trying to generate interest in some issue, or raise awareness of a particular problem.

Well argued, documented report, with focus on wide dissemination within and outside government, civil society discussions

Zero or low PER selects problems of known interest to government, seeks to help them think through issue, understand options, develop strategy

Helping government solve a problem, building stronger relationship, demonstrating value of PER/Bank support.

Low, selected officials in government

PER is focused review supporting position of reformers, helping them make their case with analytical support, providing advice on strategy and actions plan.

Wide dissemination in government, perhaps outside government if thought useful.

Process might emphasize broader participation within government to help build more consensus.

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Approaches for using PER (2)

Modest, disparate interests

PER focuses on selected issues of common interest, making the case

Process seeks to bring together disparate parties, build consensus and coalition for reform.

High, but unfocused

PER seeks to provide strategy and sequencing to assist authorities to move forward.

Participatory process within government, supporting government decision-making.

PER might consist of “chapters” provided to government as ‘policy papers’ developed to support government decision processes, implementation. Subsequent compilation into “PER” optional.

High, but no public support

PER makes case for reform, providing analytical and research support to reform.

Focus on wide dissemination in civil society, communication strategy to emphasize need for reform.