TY - BOOK AU - Levy,Brian TI - Governance reform: bridging monitoring and action SN - 9780821370322 (pbk.) AV - JF60 .L49 2007 U1 - 352.367091724 LEV 22 PY - 2007/// CY - Washington, DC PB - World Bank KW - Public administration KW - Developing countries KW - Politics and government N1 - Includes bibliographical references and index; TABLE OF CONTENTS EXECUTIVE SUMMARY I CHAPTER 1: MONITORING DEVELOPING-COUNTRY GOVERNANCE 1 INTRODUCTION 1 A FRAMEWORK FOR MONITORING GOVERNANCE 5 INDICATORS OF GOVERNANCE 11 The Variety 12 The CPIA 13 Kaufmann-Kraay 16 Doing Business and the Investment Climate Surveys 20 GOVERNANCE MONITORING¿FROM BROAD TO SPECIFIC 25 CHAPTER 2: MONITORING AND IMPROVING PUBLIC FINANCE AND ADMINISTRATION 33 MONITORING AND IMPROVING PUBLIC FINANCIAL MANAGEMENT 34 An Overall Assessment 36 Disaggregated Public Financial Management Indicators 38 Strengthening Public Financial Management 42 MONITORING AND IMPROVING ADMINISTRATIVE QUALITY 47 Monitoring Administrative Capability 47 Strengthening Administrative Capability 51 WHAT ALL THIS MEANS FOR SCALING UP AID 55 CHAPTER 3: MONITORING AND IMPROVING NATIONAL CHECKS AND BALANCES INSTITUTIONS 62 THE INNER CONSTELLATION -- DIRECT OVERSIGHT 64 Monitoring Direct Oversight 64 Strengthening Legislative Oversight 68 Decentralization 70 THE MIDDLE CONSTELLATION ¿ JUSTICE AND THE RULE OF LAW 72 Defining 72 Monitoring 74 Reforming 76 THE OUTER CONSTELLATION ¿ TRANSPARENCY AND VOICE 78 The Supply and Dissemination of Information 79 Enhancing Capacity for the Effective Use of Information by Civil Society 83 Monitoring Transparency and Voice 87 THE CHALLENGE OF SEQUENCING CHECKS AND BALANCES AND BUREAUCRACY REFORMS 89 Trajectories of Change 89 Sustainability ¿ Bringing Checks and Balances into the Agenda 92 CHAPTER 4: GOVERNANCE REFORM AT THE FRONT-LINE: SERVICE PROVISION AND THE INVESTMENT CLIMATE 96 GETTING THE PRIORITIES RIGHT 97 Prioritizing Public Spending 97 Prioritizing Investment Climate Reforms 98 GETTING THE ACCOUNTABILITIES RIGHT 108 Balancing Flexibility and Control 108 Empowering the Front-Line 114 GOVERNANCE REFORM AS A CUMULATIVE PROCESS 121 REFERENCES 124 APPENDIX: APPLYING THE INDICATORS ¿ A TYPOLOGY OF COUNTRIES 128 LIST OF FIGURES Figure 1: National Governance Systems- Actors and Accountabilities ii Figure 2: Public Financial Management: a Performance Monitoring Framework vi Figure 3: Net Change in HIPC Indicator Tracking Scores, 2001-4 vii Figure 4: A ¿Constellation¿ of Checks and Balances Institutions ix Figure 5: Perceptions of Service Delivery Performance in Nine Bangalore Agencies, 1994-2003 xiv Figure 6: Governance Turnarounds¿Three Trajectories xvii Figure 1.1: National Governance Systems- Actors and Accountabilities 7 Figure 1.2: Trends in Administrative Corruption in Corruption in Europe 23 Figure 1.3: Corruption in Specific Sectors in ECA, 2002-2005 24 Figure 2.1: Public Financial Management: A Performance Monitoring Framework 35 Figure 2.2: Low-income Aid Recipient Countries by CPIA 13 (Quality of Budgetary and Financial Management) Score, 2004 37 Figure 2.3 Net Change in HIPC Indicator Tracking Scores, 2001-4 43 Figure 2.4: A Platform Approach to Budget Management Reforms in Cambodia 46 Figure 2.5: Low-income Aid Recipient Countries by CPIA 15 (Quality of Public Administration) score, 2004 50 Figure 3.1: A ¿Constellation¿ of Checks and Balances Institutions 62 Figure 3.2: The Virtuous Circle of Transparency ¿ from Disclosure to Responsiveness 79 Figure 3.3: Measuring Country Statistical Capacity: IBRD, IDA, and IDA-Africa, 1999-2005 81 Figure 3.4: Governance Turnarounds¿Three Trajectories 91 Figure 4.1: Obstacles to Growth 99 Figure 4.2: The Top Investment Climate Concern of Firms 102 Figure 4.3: Perceptions of Service Delivery Performance in Nine Bangalore Agencies, 1994-2003 117 Figure 4.4: A Governance Virtuous Spiral? 121 Figure A-1: IDA Countries Grouped by Bureaucratic Quality and Checks and Balance 130 LIST OF TABLES Table 1: Transactions Costs of Doing Business ¿ DB and ICS Results xii Table 2: Intermediate Outcomes¿Corruption Versus Policy xv Table 3: State Capacity and State Accountability xvi Table 1.1: Nodes of Transparency in National Governance Systems 8 Table 1.2: 2004 Country Scores for the CPIA Public Institutions Cluster 14 Table 1.3: KK Estimates of the Extent of Corruption in 209 Countries 2004 20 Table 1.4: Intermediate Outcomes¿Corruption Versus Policy 26 Table 1.5: Governance Monitoring Indicators 28 Annex Table 1. 1 KK Estimates of the Extent of Corruption in 209 Countries, 2004 29 Annex Table: 1.2: Doing Business Indicators and Investment Climate Surveys¿Some Useful Measures for Governance Monitoring 31 Table 2.1: Quality of Budget Management Systems in 25 Heavily Indebted Poor Countries, 2004 38 Table 2.2: Bureaucratic Capability and Governance Outcomes¿Some Correlations 51 Table 2.3: Public Administrative Reform in Three Countries 53 Annex Table 2.1: CPIA¿Quality of Budget and Financial Management 57 Annex Table 2.2: The PEFA PFM Performance Indicator Set 59 Annex Table 2.3: CPIA ¿ Quality of Public Administration 60 Table 3.1: Executive Constraints ¿ 2004 Polity IV Results for 60 Low-income Countries 66 Table 3.2: The Quality of Some Direct Oversight Institutions in 25 Countries Summarized by Groups 68 Table 3.3 KK Rule of Law 2004, Adjusted for CPIA Rules for 66 Low-income Aid Recipient Countries 75 Table 3.4 The Quality of Some Attributes of the Justice System in 25 Countries 76 Table 3.5: Participation in the PRS, 2005 85 Table 3.6: KK Voice and Accountability 2004, IDA and Blend Countries 88 Table 3.7: Public Integrity Index¿ Transparency and Civic Participation 89 Table 3.8 State Capacity and State Accountability 90 Annex Table 3.1: Checks and Balances Institutions: Patterns of Country Performance 94 Table 4.1: Top 3 Constraints to Enterprise Investment ¿Perceived and Computed 103 Table 4.2: Transaction Costs of Doing Business ¿ DB and ICS Results 104 Table A-1: IDA Countries Grouped by Bureaucratic Quality and Checks and Balances with Level of Actual and Predicted Corruption 131 LIST OF BOXES Box 1.1: Governance and Growth ¿ the Big Picture 3 Box 1.2: Governance and Corruption are Not the Same Thing 6 Box 1.3: How Information Links Democracy and Development Effectiveness 9 Box 1.4: The 2004 CPIA¿s 16 criteria 13 Box 1.5: How Precise is the CPIA? 15 Box 1.6: Three Aggregate Governance Doing Business and Investment Climate Survey Indicators 22 Box 2.1: Two IMF tools to support fiscal management and transparency 36 Box 2.2: Recent Advances in Monitoring the Quality of Procurement 40 Box 2.3: Actionable Indicators on Public Administrative Quality 49 Box 3.1: The POLITY IV ¿ Executive Constraints¿ Criteria 65 Box 3.2: The Global Public Integrity Index as a Tool for Governance Monitoring 67 Box 3.3: Legislative Oversight in Africa¿A Work in Progress 69 Box 3.4: Common Definitions of the ¿Rule of Law 73 Box 3.5 Indicators of the Efficiency of Judicial Processes 76 Box 3.6: Global Norms for Collection and Publication of Economic and Social Data 80 Box 3.7: The Principles that Generally Underpin Freedom of Information Laws 83 Box 3.8: How Media Access can Influence Development Outcomes 87 Box 4.1: The Politics of Electricity Reform in Andhra Pradesh, India 101 Box 4.2 Why Stand-alone Investment Projects can be Bad for Governance 105 Box 4.3: Regulatory Imbalances in Chile and Jamaica: Some History 114 Box 4.4: Linking Community-based Resource Transfers and Decentralization in Albania, Indonesia and Peru 119 ER -