world development report 2004

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world development report 2004 Making Services Work for Poor

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world development report 2004. Making Services Work for Poor People. WDR 2004 Messages. Services are failing poor people. But they can work. How? By empowering poor people to Monitor and discipline service providers Raise their voice in policymaking - PowerPoint PPT Presentation

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world development report 2004

Making Services Work for Poor People

WDR 2004 Messages

• Services are failing poor people.

• But they can work. How?

• By empowering poor people to– Monitor and discipline service providers– Raise their voice in policymaking

• By strengthening incentives for service providers to serve the poor

MDGs—Global aggregates

Eradicate poverty and hunger Universal primary education

Source: www.developmentgoals.org

Outcomes are worse for poor peoplePercent aged 15 to 19 completing each grade or higher

Source: Analysis of Demographic and Health Survey data

Similar changes in public spending can be associated with vastly different changes in

outcomes

Sources: Spending data from World Development Indicators database. School completion from Bruns, Mingat and Rakatomalala 2003

Poor people Providers

Policymakers

A framework of relationships of accountability

Poor people

Policymakers

A framework of relationships of accountability

Providers

PRONASOL expenditures according to party in municipal government

Source: Estevez, Magaloni and Diaz-Cayeros 2002

A framework of relationships of accountability

Providers

Policymakers

Poor people

Policymaker-provider:Contracting NGOs in Cambodia

• Contracting out (CO): NGO can hire and fire, transfer staff, set wages, procure drugs, etc.

• Contracting in (CI): NGO manages district, cannot hire and fire (but can transfer staff), $0.25 per capita budget supplement

• Control/Comparison (CC): Services run by government

12 districts randomly assigned to CC, CI or CO

Utilization of facilities by poor People sick in last month

Source: Bhushan, Keller and Schwartz 2002

A framework of relationships of accountability

Poor people Providers

Policymakers

Schools in Uganda received more of what they were due

Source: Reinikka and Svensson (2001), Reinikka and Svensson (2003a)

Client-provider:EDUCO Program in El Salvador

• Parents’ associations (ACEs)– Hire and fire teachers– Visit schools on regular basis– Contract with Ministry of Education to

deliver primary education

EDUCO promoted parental involvement…

Source: Adapted from Jimenez and Sawada 1999

…which boosts student performance

Eight sizes fit all?Difficult to monitor

Easy to monitor

Eight sizes fit all?Difficult to monitor

Easy to monitor

Heterogeneous clients

Homogeneous clients

Eight sizes fit all?Difficult to monitor

Easy to monitor

Heterogeneous clients

Clientelist politics

Pro-poor politics

Homogeneous clients

Clientelist politics

Pro-poor politics

Eight sizes fit all?Difficult to monitor

Easy to monitor

Heterogeneous clients

Clientelist politics

Pro-poor politics

Homogeneous clients

Clientelist politics

Pro-poor politics Government provision or contracting

Eight sizes fit all?Difficult to monitor

Easy to monitor

Heterogeneous clients

Clientelist politics

Pro-poor politics

Homogeneous clients

Clientelist politics

Pro-poor politics Central-government provision

Government provision or contracting

Eight sizes fit all?Difficult to monitor

Easy to monitor

Heterogeneous clients

Clientelist politics

Demand-side subsidies, co-payments by households

Pro-poor politics Local-government provision

Local-government with contracting

Homogeneous clients

Clientelist politics

Pro-poor politics Central-government provision

Government provision or contracting

WDR messages to donors

• Harmonize policies and procedures around recipient’s systems

• Where possible, integrate aid in recipient’s budget

• Finance impact evaluation of service delivery innovations– $300 million a year in Bank projects

allocated for evaluation

Donor fragmentation on the rise

What are we up against when attempting to improve aid efficiency?