the challenge of accessible, affordable & quality public service delivery – part 2 hachemi...

The challenge of The challenge of accessible, affordable & accessible, affordable &

quality public service quality public service delivery – Part 2delivery – Part 2

Hachemi BahloulHachemi BahloulLocal Development SpecialistLocal Development Specialist

Bratislava Regional CentreBratislava Regional Centre

Development at Local Level in Central Asia Development at Local Level in Central Asia WorkshopWorkshop

Ashgabat 8-10 October 2008Ashgabat 8-10 October 2008

Choices for the role of Choices for the role of government government

Sole Provider and controller

Joint Provider

Purchaser of Services

Enabler and regulator

• More autonomy• Less direct control• More accountability• More efficiency

• Less autonomy• More direct control• Less accountability• Less efficiency

Success factorsSuccess factorsClarity of Clarity of

objectives/standardsobjectives/standardsClarity in delegation of Clarity in delegation of

rolesrolesAvailability of resources Availability of resources Management capacity of Management capacity of providerproviderAvailability of performanceAvailability of performanceinformationinformationAccountability mechanismsAccountability mechanisms

A sustainable service A sustainable service delivery system delivery system

Key stakeholders

- National politicians- Local politicians

- Clients- Poor Clients

Service Deliverer

- “Owners”

- Top Management

- Frontline Managers

1. Objectives set and authority delegated

2. Resources provided

3. Service Delivered

4. Accountability information

5. Enforcement

Government as sole Government as sole provider and controller provider and controller

• Typical of central commend system => unclear Typical of central commend system => unclear managerial accountabilitymanagerial accountability

• The trend is to commercialize and corporatize service The trend is to commercialize and corporatize service deliverydelivery

• Corporate governance structure distinct from the Corporate governance structure distinct from the policymaker (sometimes a company)policymaker (sometimes a company)

• The members of the supervisory board are not related The members of the supervisory board are not related to the policymakerto the policymaker

• There is often a requirement to operate on a There is often a requirement to operate on a commercial basis or at least to fully recover costs => commercial basis or at least to fully recover costs => well suited for subsequent privatizationwell suited for subsequent privatization

Joint provision: Public Joint provision: Public Private Partnership Private Partnership

• A partnership between the provider and private companies for the provision of a public service

• Advantages: Additional capital (additional financing) Better management (expertise of private partners) Value added (more, new or better services) Better allocation of risks

• Alternative to full privatization

• Often complex, requires considerable capacity and

market economy experience

Purchasing services: Purchasing services: outsourcing (private firms) outsourcing (private firms)

• The provision of services is sub-contracted by the policymaker to a private company

• Franchise when capital investment is raised by the policy maker (rail transport, water supply)

• Concession when the private company raises the capital (motorway)

• Competitive tendering required but often lack of capacity to conduct the process and negotiate contracts (corruption)

• De facto monopoly is granted for the provision of services => well specified contracts/strong regulation

Purchasing services: Purchasing services: outsourcing (NGOs) outsourcing (NGOs)

• NGOs have an intrinsic motivation to serve the poor • They are more flexible in terms of adapting to specific

local conditions and reaching the poor

• Altruistic motives make NGOs easier to monitor

• Their involvement is appropriate in very specific areas and cannot be relied upon for large scale initiatives

The usual progression in The usual progression in reforming service delivery reforming service delivery

Public SectorProvision of goods and services

Commercial- ization of operations, changes in financial and accounting systems

Corporatization of PublicSectorInstitution withindependent regulation

“Privatization”of Operating Company (s) &multipleproviders

• More autonomy• Less direct control• More accountability

• Less autonomy• More direct control• Less accountability

Decentralization & public Decentralization & public

service delivery (1) service delivery (1)

• In theory, decentralization should lead to In theory, decentralization should lead to better and cheaper public service delivery:better and cheaper public service delivery:

Physical proximity enables the provision of Physical proximity enables the provision of services citizens want and need (accountability)services citizens want and need (accountability)

Should be conducive to less corruption Should be conducive to less corruption More efficient local management of services More efficient local management of services

Decentralization & public Decentralization & public service delivery (2) service delivery (2)

• In practice, results have been mixed:In practice, results have been mixed:

Poor design/implementation of decentralization Poor design/implementation of decentralization Competencies devolved without resources Competencies devolved without resources

(fiscal offloading)(fiscal offloading) Unclear assignment of competencies Unclear assignment of competencies Limited local capacityLimited local capacity Limited accountability to citizensLimited accountability to citizens Capture of public resources by local elites (no Capture of public resources by local elites (no

targeting of the poor)targeting of the poor)

• Decentralization is meaningless if it does Decentralization is meaningless if it does not increase accountability!not increase accountability!

There is no single model or There is no single model or solution! solution!

• In practice mixture of central/local service provision, In practice mixture of central/local service provision, public and private providers, PPPs, NGOs etc.public and private providers, PPPs, NGOs etc.

• Outsourcing is not the panacea! Outsourcing is not the panacea!

• There are exemples of succesful centralized public There are exemples of succesful centralized public service provision (Cuba)service provision (Cuba)

• Contractualism and results based management Contractualism and results based management requires a minimum of discipline (formality) in a requires a minimum of discipline (formality) in a country’s administrative systemcountry’s administrative system

The Cuban health modelThe Cuban health model • Clear instruction to providers

Clear guidelines through national specialist advisory groups Standards, technical procedures & regulation

• Motivating staff Medical training emphasizes altruism of medical service Service of one or two years abroad High profile and pride

• Monitoring and evaluating Integrated national health statistics Regular inspection of facilities Annual evaluations and random external evaluations of

facilities Citizens can complain about providers through the health

system or through political channels (local representative of People’s Power Assembly)

The key ingredients of The key ingredients of

reform policy (1)reform policy (1) • Overall public administration reformOverall public administration reform

Reduce informality in the public administration - Reduce informality in the public administration - the more sound the basic functioning of the PA, the more sound the basic functioning of the PA, the stronger the foundation for service reformthe stronger the foundation for service reform

Key areas: budgeting, public expenditure Key areas: budgeting, public expenditure management, result orientation, civil servicemanagement, result orientation, civil service

• Sector wide reform policySector wide reform policy Nature of reform depends on sector, service and Nature of reform depends on sector, service and

nature of government failures & market failuresnature of government failures & market failures In-depth sectoral analytical workIn-depth sectoral analytical work required for required for

policy formulationpolicy formulation


reform policy (2)reform policy (2) • Separation policy maker, provider & regulator Separation policy maker, provider & regulator

(the long route to accountability)(the long route to accountability) Developing clear accountability and a systems of Developing clear accountability and a systems of

checks and balanceschecks and balances The policymaker is the watchdog for the The policymaker is the watchdog for the

relationship between provider – regulatorrelationship between provider – regulator Quality regulation requires the existence of service Quality regulation requires the existence of service

standards and serious scrutiny of service delivery standards and serious scrutiny of service delivery

qualityquality (not just compliance with procedures)(not just compliance with procedures) Building policy maker, regulator & provider Building policy maker, regulator & provider

capacitycapacity


reform policy (3)reform policy (3)

• Building policy maker capacityBuilding policy maker capacity Design standards Design standards Set objectives for improved public service deliverySet objectives for improved public service delivery Cause and effect chains: inputs, outputs, outcomesCause and effect chains: inputs, outputs, outcomes Delegation of roles & ability to hold provider accountableDelegation of roles & ability to hold provider accountable Translate objectives into compacts/contracts with Translate objectives into compacts/contracts with

providers (performance indicators), including incentive providers (performance indicators), including incentive (and penalty) systems(and penalty) systems

Systems to monitor performance (generate and analyze Systems to monitor performance (generate and analyze information, control providers, hear the “voice” of clients) information, control providers, hear the “voice” of clients) – GPS for garbage collection trucks (Bulgaria)– GPS for garbage collection trucks (Bulgaria)

Link resources to performance and/or commercializationLink resources to performance and/or commercialization


reform policy (4)reform policy (4) • Building regulatory capacityBuilding regulatory capacity

Design of specified & quality regulations (avoid possibility for Design of specified & quality regulations (avoid possibility for discretion)discretion)

Specified regulation => enforcement (less corruption)Specified regulation => enforcement (less corruption) Effectively monitor service delivery qualityEffectively monitor service delivery quality Enforce sanctions in case of non-complianceEnforce sanctions in case of non-compliance

• Building provider capacityBuilding provider capacity Motivation (incentives & penalties)Motivation (incentives & penalties) Management capacity (systems, processes and procedures)Management capacity (systems, processes and procedures) Result and client orientation (not process orientation)Result and client orientation (not process orientation) Systems to monitor client satisfactionSystems to monitor client satisfaction



• Giving client power (the short route to Giving client power (the short route to accountability)accountability) Establishing market and participation mechanisms Establishing market and participation mechanisms

to discipline providersto discipline providers Building client capacityBuilding client capacity

The key ingredients of The key ingredients of reform policy (6)reform policy (6)

• Market and participation mechanismsMarket and participation mechanisms Contracts with self-monitoring providers (faith Contracts with self-monitoring providers (faith

NGOs)NGOs) Give clients Give clients choicechoice so that their “can vote with their so that their “can vote with their

feet” (voucher systems)feet” (voucher systems) Create Create competitioncompetition (grants to schools depending on (grants to schools depending on

number of pupils)number of pupils) Establish mechanisms of Establish mechanisms of participationparticipation to monitor to monitor

and discipline providers (and discipline providers (involvement of parent involvement of parent committees in schools)committees in schools)

Give clients Give clients incentivesincentives to monitor and discipline to monitor and discipline providers (co-payment of medical services) providers (co-payment of medical services)



• Building client capacity (voice)Building client capacity (voice) Increasing citizen awareness and ability to turn it Increasing citizen awareness and ability to turn it

into action including through NGOs/CSOsinto action including through NGOs/CSOs NGOs/CSOs advocacy, networking, coalition NGOs/CSOs advocacy, networking, coalition

buildingbuilding NGO/CSO capacity to conduct research and NGO/CSO capacity to conduct research and

analysisanalysis Independent and competent mediaIndependent and competent media

Strategic incrementalismStrategic incrementalism

• The need for political commitment/reform champions The need for political commitment/reform champions • Information as a stimulant for public action => Information as a stimulant for public action =>

central role of the media central role of the media • Choosing and sequencing reforms carefully, in line Choosing and sequencing reforms carefully, in line

with initial capacities, to create firmer ground for with initial capacities, to create firmer ground for further reformfurther reform

• Options exist => choosing the right one for the time, Options exist => choosing the right one for the time, place and circumstanceplace and circumstance

• Distinguishing between “easy” short term measures Distinguishing between “easy” short term measures and medium term measuresand medium term measures

• Systematic evaluation of policiesSystematic evaluation of policies

Some toolsSome tools for assessing for assessing

public service deliverypublic service delivery

• UNDP capacity assessment methodologyUNDP capacity assessment methodology (adapted (adapted by BRC for public service delivery) by BRC for public service delivery)

• Social AuditsSocial Audits ( (budget analysis and expenditure budget analysis and expenditure tracking with an aim to identify bottlenecks, abuses tracking with an aim to identify bottlenecks, abuses of public funds and capture of public services)of public funds and capture of public services)

• Public Expenditure Tracking SurveysPublic Expenditure Tracking Surveys (t(the unit of he unit of observation is typically local government and/or a observation is typically local government and/or a service facility, the survey collects information on service facility, the survey collects information on facility characteristics, financial flows, outputs, facility characteristics, financial flows, outputs, services delivered, accountability arrangements services delivered, accountability arrangements etc.)etc.)

• Regulatory Impact AssessmentsRegulatory Impact Assessments - EC - EC

Some toolsSome tools for monitoring for monitoring

and improving PSDand improving PSD • Performance managementPerformance management (BRC toolkit) (BRC toolkit)• BenchmarkingBenchmarking (comparing performance against the (comparing performance against the

best) – Council of Europebest) – Council of Europe• Citizens report cardsCitizens report cards (national surveys) – widely (national surveys) – widely

available available • Citizens scorecardsCitizens scorecards (local focus groups) – widely (local focus groups) – widely

availableavailable• Service improvement plansService improvement plans – used by USAID/Urban – used by USAID/Urban

InstituteInstitute• Performance and participatory budgetingPerformance and participatory budgeting – widely – widely

availableavailable• Public-private partnershipPublic-private partnership (BRC toolkit) (BRC toolkit)

Conclusion Conclusion

• One size does not fit all…One size does not fit all…

• Even if we generally know what to Even if we generally know what to do, it is difficult to get it done do, it is difficult to get it done (reforms are highly political)(reforms are highly political)

• It takes time…It takes time…

THANK YOU!THANK YOU!

Question for discussionQuestion for discussion

What are the needed short/medium What are the needed short/medium term actions to improve public service term actions to improve public service delivery in Central Asia? (40 minutes)delivery in Central Asia? (40 minutes)

the challenge of accessible, affordable & quality public service delivery – part 2 hachemi...

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