This publication, Local Budgeting, provides a comprehensive guide for local administrators who are involved in designing and implementing budgetary institutions and who wish to improve efficiency and equity in service delivery and to strengthen internal and external accountability. It details principles and practices to improve fiscal management. It reviews techniques available in developing countries for forecasting revenues and expenditures, and it examines institutional arrangements for ensuring transparency and fiscal discipline. In addition, it outlines some strategies to deal with corruption in local revenue administration. With respect to budgeting, the volume discusses the decisions that need to be made in determining budget format and layout, including the scope of the budget, the degree of transparency of the legal requirements underlying the budget, and the extent to which the budget will emphasize inputs, outputs, and outcomes. Local Budgeting also discusses the role of the capital budget. It details how performance budgeting can serve as a tool for results-based accountability to citizens. It helps the non-specialist reader learn how to interpret budget documents to discover what the government is doing and how well it is performing its tasks. It highlights approaches to stakeholder inputs in the budget process. Finally...

his volume provides advice on how to institutionalize performance-based accountability, especially in countries that lack good accountability systems. The volume describes how institutions of accountability may be strengthened to combat corruption. The volume is organized into two parts. The first part deals with public management reforms to ensure the integrity and improve the efficiency of government operations. It outlines an agenda for public management reforms and discusses the roles of e-government and network solutions in performance improvements. The second part of the volume provides advice on strengthening the role of representative institutions, such as organs and committees of parliament, in providing oversight of government programs. It also provides guidance on how auditing and related institutions can be used to detect fraud and corruption. The book highlights the causes of corruption and the use of both internal and external accountability institutions and mechanisms to fight it. It provides advice on how to tailor anticorruption programs to individual country circumstances and how to sequence reform efforts to ensure sustainability. This volume presents the latest thinking of leading development scholars on operationalizing such a governance framework. The focus of this volume is creating performance-based accountability and oversight when there is no bottom line. Each chapter addresses an important dimension of such a framework. The four chapters in part I are concerned with integrity and efficiency in public management. The nine chapters of part II are concerned with institutions and mechanisms to hold government to account.

This paper proposes a systematic and pragmatic approach to planning and conducting self-assessments of country and program strategies. The approach, which is grounded on inquiry principles and guided by a sound and logical conceptual model and process, is applicable to strategy development, progress reviews, and program management. The authors have used the approach in various settings-in the public and private sectors, in academic institutions, and in nongovernmental organizations (NGOs). This paper argues that the self-assessments it describes can make three strategic contributions. First, they use a participatory process, which engages those responsible for designing and implementing strategies and programs in the assessment process. Second, they improve strategy design by providing critical information that can be used for finetuning and further developing the strategy. Third, they focus on the outcomes that have been achieved during the program period, triangulating multiple data sources to assess progress...

The purpose of this sourcebook is to pull together into a single document a collection of common sense tips and recommendations based on actual practices and experience around the world. The sourcebook aims first and foremost to help strengthen Monitoring and Evaluation (M&E) capacity at the national and sub-national levels, and to ensure a consistency of approach and methodology so that, at the global level, sufficient reliable and timely information can be accessed from the different countries and used to make cross-country comparisons and to calculate development indicators at the global level. The sourcebook is specifically targeted towards countries where conditions are less-than-ideal, particularly with respect to the availability of relevant information. The sourcebook also shows how a service delivery approach can be used to select indicators which can generate useful, easy-to-measure early outcome measures. It suggests that greater use be made of qualitative indicators, such as access, use and satisfaction. The sourcebook devotes considerable attention to the need for a strong statistical infrastructure and reviews the range of different statistical instruments available.

The purpose of this sourcebook is to pull together into a single document a collection of common sense tips and recommendations based on actual practices and experience around the world. The sourcebook aims first and foremost to help strengthen Monitoring and Evaluation (M&E) capacity at the national and sub-national levels, and to ensure a consistency of approach and methodology so that, at the global level, sufficient reliable and timely information can be accessed from the different countries and used to make cross-country comparisons and to calculate development indicators at the global level. The sourcebook is specifically targeted towards countries where conditions are less-than-ideal, particularly with respect to the availability of relevant information. The sourcebook also shows how a service delivery approach can be used to select indicators which can generate useful, easy-to-measure early outcome measures. It suggests that greater use be made of qualitative indicators, such as access, use and satisfaction. The sourcebook devotes considerable attention to the need for a strong statistical infrastructure and reviews the range of different statistical instruments available.

Over the past few decades, a significant number of advanced countries and, more recently, some developing countries have moved the focus of their budget arrangements to emphasize performance. The recently published book results, performance budgeting and trust in Government follows from a conference on performance budgeting held in Mexico in June 2008 where a large range of experiences from Latin America and Organization for Economic Co-operation and Development (OECD) countries was presented. Its intention is to provide readers and governments wishing to improve elements of their performance budgeting with an understanding of the many elements involved in implementing these reforms, particularly in performance-informed budgeting (PIB), focusing on the challenges and the variety of approaches taken to meet these challenges. In many OECD and middle income countries, performance budgeting has been associated with the use of modern techniques of public management that emphasize individual and organizational responsibility and accountability for results. The books starts by providing an overview of PIB...

Intergovernmental finance is a significant source of sub-national finance in most countries. In both industrial and developing countries, formula based "manna from heaven" general purpose transfers dominate but co-exist with highly intrusive micro-managed "command and control" specific purpose transfers. Both these types of transfers undermine political and fiscal accountability. Reforms to bring in design elements that incorporate incentives for results-based accountability are resisted by both donors and recipients alike. This is because the donors perceive such reforms as attempts at chipping away at their powers and recipients fear such programs will be intrusive. This paper presents conceptual and practical underpinnings of grant designs that could further simplicity, objectivity, and local autonomy objectives while furthering citizen-centric results-based accountability. The paper further highlights a few notable recent initiatives in both industrial and developing countries that embrace such directions for reform. The paper concludes that results-based intergovernmental finance offers significant potential to minimize tradeoffs between local autonomy and accountability while furthering access to merit goods.

In preparation for the Public Financial Management (PFM) for Results Program, a Fiduciary Systems Assessment (FSA) covering financial management (FM), procurement, and fraud and corruption was conducted. The principles governing fiduciary management for Program-for-Results are set out in OP 9.00. In line with the PforR Guidance Note, the FSA reviews the adequacy of the applicable rules, procedures, and oversight mechanisms for the Program and the effectiveness of their implementation by the concerned agencies (including both the capacity and the performance). The conclusion of the assessment is that the Program fiduciary systems meet OP 9.00 requirements, and provide a reasonable basis for this PforR operation. However, the current risk-rating is substantial, which requires specific mitigation measures.

The discovery of large natural resource reserves in Mozambique has raised expectations of increased economic growth, improved public services and poverty reduction. However, the majority of the population has benefited little from growth in recent years, and may be skeptical that the potential for increased government revenues will translate into improved services. The development potential of future natural resource revenues will partially depend on stronger PFM systems, as well as political commitment to broad based social and economic development. A gap between political rhetoric and improvements in the everyday lives of the population may fuel potential for social unrest. Similarly, changing development partner circumstances (both funding constraints and changing modalities) and perceptions of Mozambique s development trajectory may lead to a drop in the levels of assistance, in advance of actual increases in revenue (it is still some years before natural resources will reach market). The Government needs to respond to both popular expectations and a changing partner environment. This creates a window of opportunity to increase government focus on the effective management of public resources and improved service delivery.

This report on the decentralized service delivery for the poor is structured in two volumes. Volume one is a cross-sectoral report, the core report. The first part includes the program and performance overview which describes the programs (including their poverty goals) and their process of decentralization, the overview of expenditures, the access of the poor to these services, and the evidence on the quality of services. The second part of the core report is on the institutional dimensions of decentralized service delivery which includes the World Development Report (WDR) 2004-type framework of accountability, adapted to the situation in Mexico. Volume two contains the sectoral pieces. For this report-the third phase of a programmatic series of studies on poverty in Mexico-Mexico's social cabinet requested that the Bank analyze service delivery of a specific list of programs that are essential to the government's development strategy in the context of decentralization. The elements of the government's strategy considered here-basic education, health care for the population without social security coverage, local social infrastructure, and local rural development-all aim directly or indirectly to reduce poverty. Both social and economic services shape the opportunities of poor people. Social services contribute to human capital formation and risk management...

This first World Bank for Results report provides the Bank's shareholders, partners, and external stakeholders with an integrated view of results and performance in recent years. It serves as a companion to the World Bank Corporate Scorecard. Aggregating results that countries have achieved with Bank support against the backdrop of global development results, the report also assesses operational and organizational performance at the corporate level. This report is consistent with the Corporate Scorecard's four-tier structure for reporting on results and performance (Figure 2). It describes how global development progress is being measured relative to the Millennium Development Goals (MDGs) and other global development indicators (Tier I); highlights development results achieved with Bank support (Tier II); provides data on the effectiveness of Bank operations and services (Tier III); and assesses whether the Bank is functioning and adapting successfully to support countries in achieving results (Tier IV).

In the changing global environment of development cooperation, trust funds have emerged as a significant pillar of the global aid architecture, used to address limitations in bilateral aid and fill perceived gaps in the operations of existing multilateral institutions. They currently account for about 11 percent of official development assistance (ODA), and they finance a substantial part of the World Bank's business. The activities they fund are highly varied, ranging from huge global programs with their own governance structures to conventional development projects, debt and disaster relief operations, and technical assistance. This IEG evaluation, undertaken at the request of World Bank executive directors, assesses the value of the trust fund vehicle as a way of delivering aid and the effectiveness and efficiency of the deployment of trust fund resources. In addition, the evaluation assesses the Bank's management and accountability for the use of trust fund resources and the impact of trust funds on the Bank's development role. The evaluation finds that donors...

Since 2003, Peru has emerged as an open, rapidly growing economy. Over the review period of 2003-09, successive governments adopted policy platforms aimed at maintaining macroeconomic stability, furthering the private sector supply response, broadening participation in growth, improving social service delivery, and strengthening public institutions. The World Bank Group (WBG) supported each of the three pillars of the government's poverty reduction strategy, namely: (i) broad-based economic growth that engaged a higher share of the population; (ii) enhanced human development through improved social service delivery; and (iii) strengthened public sector institutions. Independent Evaluation Group (IEG) recommends that the WBG: (i) tailor its strategy to support long-term integration of Peru's three distinct regions; (ii) seek opportunities to support large-scale infrastructure development; (iii) develop a more strategic approach to helping improve public sector management; (iv) seek further innovations in International Bank for Reconstruction and Development (IBRD's) instruments against a backdrop of declining demand for its financial resources; (v) seek to help develop a strategic planning function in Peru; (vi) build a close strategic partnership with development partners that provides concessional finance in the social sectors to optimize synergies with IBRD policy lending and analytic and advisory activities; (vii) develop a strategic focus for International Finance Corporation (IFC) around employment- generating industries in emerging sectors; (viii) maintain IFC's additionality by supporting lower-tier and more regionally dispersed private companies; and (ix) leverage the strong country presence of IBRD and IFC to enhance Multilateral Investment Guarantee Agency's (MIGA's) marketing and risk assessment functions.

The Bank's shareholders and stakeholders are increasingly demanding better accountability for results and progress toward achieving the Millennium Development Goals (MDGs). In response, the various reforms and initiatives toward an enhanced results orientation have increased in prominence, yet actual progress has lagged. The purpose of the study was to provide an assessment of results monitoring in the Africa Health, Nutrition and Population (HNP) portfolio. The report focuses on results monitoring and less on evaluation, because tracking results is one of the most basic requirements to improve accountability for results and a key precursor to evaluation. The study combined quantitative and qualitative techniques. The quantitative analysis assessed the design of results frameworks, its implementation and use in all 52 active Africa HNP projects; the qualitative assessment surveyed the experiences of task team leaders (TTLs) and aimed to identify some incentives, as well as some innovative and strategic actions...

Although Kenya's vision 2030 highlights investment in human development, public spending on health and education in Africa has not guaranteed results. Closing the gap between promises, spending, and results depend on what service providers know and what they do: provider behavior is key. The Service Delivery Indicators (SDI) aim to provide critical information to improve accountability for health and education results. The survey was implemented by the Kenya Institute of Public Policy Research and Analysis (KIPPRA) and Kimetrica with quality assurance and oversight from the World Bank. The surveys provide a representative snapshot of the learning environment and key resources in both public and private schools, and the quality of health service delivery and the physical environment within which services are delivered in public and private (nonprofit) health facilities. Improvements in service quality in Kenya can be accelerated through focused investments on reforms to the incentive environments facing providers...

The Government of Kenya (GoK) has a number of well-established social insurance schemes and safety net programs, but their coverage has tended to be low and their effectiveness limited. The coverage of cash transfer programs has grown significantly but remains low in comparison with the size of the population in need. This assessment uses the draft guidance notes on Program-for-Results (PforR) operations prepared by the Operations Policy and Country Services (OPCS) department of the World Bank. The assessment reviews the fiduciary aspects of the government's national safety net program. According to this assessment, the strengths include: (i) sector-wide planning and budgeting through the Sector Working Groups (SWGs), the Medium-term Planning (MTP) framework, and the Medium-term Expenditure Framework (MTEF); (ii) increasing computerization through the Integrated Financial Management Information System (IFMIS); (iii) current efforts to develop and roll out a single registry linked to the Management Information Systems (MISs) for the five cash transfer programs; (iv) the ongoing development and intended roll out of program MISs for the Cash transfer (CT) programs implemented by the department of gender and social development in the Ministry of Gender...

This paper presents an overview of the constitutional-legal provisions on access to services in developing countries and shows that rights to public services are not justice-able. It further documents the performance record to show that governments' response to such a weak accountability framework has been predictable - poor performance in service delivery with little accountability. The paper also shows that while there has not been a shortage of ideas on how to deal with this problem, most approaches have failed because they could not diagnose and deal with the underlying causes of government dysfunction. The paper presents an analytical perspective on understanding the causes of dysfunctional governance and the incentives and accountability regimes that have the potential to overcome this dysfunction. The paper also documents practices that have shown some promise in improving access. The paper then integrates ideas from successful practices with conceptual underpinnings for good governance and presents a citizen-centric (rights based) governance approach to access. It further explores how such a citizen empowerment and government accountability framework can be implemented in practice...

This health millennium development goals (MDGs) program for results (PforR) operation contributes to Ethiopia's fourth health sector development program (HSDP-IV) objectives by disbursing against achievement of a subset of its key results. MDG performance fund (PF) supports a sub set of key priorities for HSDP-IV. The three areas that the MDG PF supports are: (i) maternal health, (ii) child health, and (iii) strengthening health systems. The presented P4R operation will provide 100 million dollars International Development Association (IDA) funding for the MDG PF provided agreed results have been achieved and have been verified. The IDA credit will be complemented by a United States (U.S.) 20 million dollars grant under the health results innovation trust fund (HRITF). The assessment examined program expenditure framework to determine whether it is comprehensive, clearly defined, and determination whether it is part of the borrower's budget and financial management processes. It also focused on key elements of program procurement arrangements. The key risks identified by the integrated fiduciary systems assessment arise from the performance of the pharmaceutical fund and supply agency (PFSA)...

With the end of civil war in 1991, Ethiopia's government launched a New Education and Training Policy in 1994 which, by the early 2000s, had already produced remarkable results. The gross enrollment ratio rose from 20 to 62 percent in primary education between 1993-94 and 2001-02; and in secondary and higher education it climbed, respectively, from 8 to 12 percent and from 0.5 to 1.7 percent. Yet the government can hardly afford to rest on its laurels. Primary education is still not universal, and already there are concerns about plummeting educational quality and the growing pressures to expand post-primary education. Addressing these challenges will require more resources, both public and private. Yet money alone is insufficient. Focusing on primary and secondary education, this report argues for wise tradeoffs in the use of resources-a result that will often require reforming the arrangements for service delivery. These changes, in turn, need to be fostered by giving lower levels of government more leeway to adapt central standards-such as those for teacher recruitment and school construction-to local conditions...

Improving the quality of care at hospitals is a key next step in rebuilding Liberia’s health system. In order to improve the efficiency, effectiveness, and quality of care at the secondary hospital level, the country is developing a system to upgrade health worker skills and competencies, and shifting towards improved provider accountability for results, including a Graduate Medical Residency Program (GMRP) and provider accountability for improvements in quality through performance-based financing (PBF) at the hospital level. This document outlines the protocol for the impact evaluation of the hospital improvement program. The evaluation will provide an estimate of the impact of the project and investigate the mechanism for success in a way that can provide general lessons about the quality of health care in low-income countries. The evaluation aims 1) to provide the best possible estimate of program impact and 2) to quantitatively describe the changes that took place within facilities as a result of the program. In particular, the impact evaluation focuses on the changes in human resources within the hospitals. As such, we use a three-period intensive evaluation of treated and matched comparison hospitals to see how services change in treated hospitals as well as a continuous data collection effort to track the activities of individual health workers within treated hospitals.