Second Annual Meeting of

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Second Annual Meeting of The African
Community of Practice on Managing for Development
Results (AfCoP-MfDR) La Plantation Balaclava,
Pointe aux Piments Mauritius 27 October
2008 Ministry of Finance and Economic
Empowerment
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PART I Programme Based Budgeting (PBB) and
linkage with Performance Management System
(PMS)
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Integrated Development Model - Whole of Government Strategy Map Integrated Development Model - Whole of Government Strategy Map Integrated Development Model - Whole of Government Strategy Map
VISION VISION VISION
Opportunity We create the optimal conditions for Mauritians to succeed and be the best they can be. Opportunity We create the optimal conditions for Mauritians to succeed and be the best they can be. Opportunity We create the optimal conditions for Mauritians to succeed and be the best they can be.
Rooted and Engaged Citizens We foster a cohesive and harmonious society, based on respect, care and concern for fellow citizens. Rooted and Engaged Citizens We foster a cohesive and harmonious society, based on respect, care and concern for fellow citizens. Rooted and Engaged Citizens We foster a cohesive and harmonious society, based on respect, care and concern for fellow citizens.
Home We give Mauritians an improved standard of living in a dynamic nation. Home We give Mauritians an improved standard of living in a dynamic nation. Home We give Mauritians an improved standard of living in a dynamic nation.
Security We make Mauritius safe and stable Security We make Mauritius safe and stable Security We make Mauritius safe and stable
STRATEGIC OUTCOMES STRATEGIC OUTCOMES STRATEGIC OUTCOMES
SUSTAINABLE ECONOMIC GROWTH INCREASING QUALITY OF LIFE STRENGTHENING NATIONHOOD
. Macroeconomic Stability . Good, Affordable Healthcare . Sovereign and Secure Mauritius
. Best for Business and Entrepreneurship . Affordable, Quality Public Housing . A Strong Mauritian Core
. Robust Engines of Growth . Financial Security . Strong National Identity and Resilience
. Globally Competitive Workforce . Food Security   
. Lifelong Employability and Good Job Opportunities . Lifelong Employability and Good Job Opportunities  
. Clean Environment . Clean Environment  
. Safe and Secure Home . Safe and Secure Home  
  . Preparedness for Crises . Preparedness for Crises
  . Strong Families . Strong Families
  . Racial and Religious Harmony . Racial and Religious Harmony
  . Caring and Inclusive Society . Caring and Inclusive Society
  . Robust Infrastructure, Good Connectivity . Robust Infrastructure, Good Connectivity
  . Rule of Law . Rule of Law
  . Quality Education . Quality Education
  . Congenial International Environment . Congenial International Environment
PROCESSES PEOPLE FINANCE
. Accountability for Performance . Forward-looking Public Service Leadership . Effective and Efficient Use of Resources
. Government in Time for the Future . Incorruptible and Committed Public Officers . Optimally managed Public Debt
. Customer-centric Government . Public Service as Employer of Choice . Fiscal Sustainability
. Consultative Government . Technological Support  . Rational Ethical Behaviour of Citizens  
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The Changing Environment

• External Challenges / External Shocks
• Erosion of preferences
• Dismantling of Multi fibre Arrangement (End of
  Textile quotas)
• European Union Sugar Reform (36 decrease in
  Sugar Price)
• Rises and Uncertainties in Input and Oil / Energy
  / Transport / Freight Prices
• Recession in main markets (tourism and garments)
• Food Security - High Food prices
• Aftermath of Financial Crisis
• Domestic Challenges
• Structural Rigidities obstacles to investment /
  business
• Incentive system work at cross purposes
• Low Productivity in Protected and
  Preference-Dependent sectors

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2006 Government Reform Strategy
To improve trade competitiveness, raise
productivity and return to high growth,
Government is implementing a four plank reform
programme...

• Fiscal Consolidation / Discipline - revenue /
  expenditure control Value for Money enhanced
  accountability to National Assembly and
  Shareholders / Public
• Improving Trade Competitiveness - restructuring
  and diversifying Industry moving from a
  Preference Based to a Globally Competitive
  Based one)
• Improving the Investment Climate
• Broadening the Circle of Opportunities -
  democratizing economy through participation and
  social inclusion
• This strategy poses much responsibility on the
  public service to be more efficient and
  effective.

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Medium Term Expenditure Framework and Programme
Based Budgeting

• The Programme Based Budget (PBB) is embedded
  in a 3-year Medium Term Expenditure Framework
  with a shift in the focus of the budgetary
  process from an input-based annual activity to a
  performance based multi-annual exercise.
• These methods seek to improve the value for
  money of public spending, thereby, reinforcing
  fiscal discipline and strategic prioritisation.

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PMS CYCLE
Government Programme Objectives, Priorities
Mandates
The 5-Phase Approach Phase I - Project Start-Up
- Sensitisation and Awareness
- Analysis of organisation Phase II -
Process Write Up -
Guidelines/Forms/Policy Manual Phase III -
Training Phase IV - Pilot Testing Phase V -
Implementation
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• PMS at Min / Dept level
• Develop Vision, Mission, Strategic Plan
• Set objectives and Key Result Areas (KRAs)
• Develop Key Performance Indicators (KPIs) for
  each KRA

• PMS at Section / Unit level
• Develop Section / Unit Plan based on strategic
  plan
• Set objectives and KRAs
• Develop KPIs for each KRA

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• Final Performance Review (achievement /
  non-achievement of Objectives / KRAs / Key Tasks)
  (Formal)
• Organisation
• Section
• Individual
• Moderation / Appeal

• PMS at Individual level
• Develop Work Plan
• Personal Development Plan
• Set out KRAs and Key Tasks for each KRA
• Develop Performance Standards for each Key Task
• Moderation / Appeal

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• Progress Review / Mid-term Review (Formal)
• Organisation Top Management
• Section Head
• Individual Appraisee / Appraiser
• Moderation / Appeal

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Linkage between PBB PMS

• 2 Major Reforms in the Public Sector
• PMS led by MCSAR
• PBB led by MoFED
• Both reforms are aligned
• PBB sets organisational performance targets
• PMS extends measurable performance focus of PBB
  to individual staff
• Both aim at improving performance and
  accountability across the public service

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• Monitoring Evaluation PBB PMS
• Director of Audit - Compliance Audit, Statutory
  Audit, Performance Audit
• International Per Review Good Governance
  Index, Doing Business Index, Human Development
  Index
• Customer Satisfaction Survey
• Communication Plan

PMS 3 Ministry / Department Vision, Mission,
Core Objectives Strategic Plan Strategic
Objectives - Key Result Areas Key Performance
Indicators Program / Sub-Programs
Performance Measurement Performance Appraisal
(CEO)


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Implementation Issues

• Getting the Formula right
• Drawing on experience and expertise in Mauritius
• Drawing on experience and expertise from other
  countries
• Learning from experiences of other countries
• Support and Capacity Building
• Sensitisation, awareness, and analysis
• Documentation of processes and preparation of
  resources
• Training
• Testing and implementation
• Monitoring, co-ordination, facilitation, and
  support
• Review of Organisational Structures
• organisational structure to be aligned to
  programme structure as resources are allocated on
  a programme basis (PRB 2008)
• to hold managers accountable for spending on
  programmes, and to deliver agreed outputs

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PART II Capacity Building in the African
Region The Regional Multidisciplinary Centre of
Excellence (RMCE)
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• Challenges facing African States
• Small vulnerable states with scare natural
  resources, including island stats and landlocked
  states
• Multiple vulnerabilities Economic, Political,
  Environmental, Climatic, etc.
• Trade Issues phasing out of preferential
  agricultural quotas and trade liberalisation

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• What should be Done ?
• Broad Reforms Economic, Legal, Institutional,
  Regulatory, etc.
• Develop and implement sound governance and
  macroeconomic policies strategies
• Develop an enabling environment for business
  and investment
• Capacity Building - put in place a coordinated
  approach at the National and Regional Level for
  more effectiveness

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• Areas for Building Capacity
• Sustainable Economic Development
  (Macroeconomic Management) development of
  sectoral strategies to restructure traditional
  economy, budgetary management, econometric
  modelling,
• Promoting Good Governance, Poverty Reduction
  strategies, and Empowering the Civil Society
• Development of ICT and promotion of life-long
  learning
• Other - Project Management, Environmental
  Impact Assessment, Disaster / Conflict
  Management,

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• The Regional Multidisciplinary Centre of
  Excellence (RMCE)
• An initiative of the World Bank (2005).
  Feasibility Report completed in 2007
• Based in Mauritius
• Supported by COMESA, SADC, NEPAD, IOC etc.
• A Network Approach with the objective to
  provide Technical Assistance and Capacity
  Building Services that are regionally relevant
  and internationally competitive
• First Training Course on Programme Based
  Budgeting organised in June 2008

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• RMCE Sector of Specialisation 1
• National Macroeconomic Management Services
• Fill the Geographic gap by strengthening
  capacity in economic management and regulation
  at national level. The approach would add value
  by extending geographic coverage to countries not
  already parties to the three existing AFRITACs.
  The seven countries are members of both COMESA
  and SADC (Comoros, Madagascar, Mauritius,
  Swaziland, Zambia and Zimbabwe) or, in the case
  of Seychelles, a member of COMESA and IOC.

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• RMCE Sector of Specialisation 2
• Regional Integration Services
• Service COMESA, EAC, IGAD, IOC and SADC and
  their member states. This would fill a niche
  facilitation role by providing independent
  technical and policy analysis and capacity
  support on key issues in the regional integration
  and harmonization pipeline.

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• RMCE Sector of Specialisation 3
• Economic Vulnerability Services of SILS
• Support management of the economic impacts of
  vulnerability issues affecting the SIDS (Comoros,
  Mauritius, and Seychelles) and the LDCs
  (Botswana, Burundi, Ethiopia, Lesotho, Malawi,
  Rwanda, Swaziland, Uganda, Zambia and Zimbabwe).

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RMCE Priority Areas
Priority Areas Particular Needs
COMESA Trade, Customs, Monetary Affairs. Investment Promotion Private Sector Development. Harmonization of Customs Procedures. Development of a Regional Investment Framework. Development Harmonization of Payment, Clearing, Settlement Systems. Drafting Regional Commercial Policy.
EAC Trade, Investments Industrial Development. Monetary and Fiscal Policy. Macroeconomic Policy Coordination. Harmonization of Fiscal Monetary Policies. Free Movement of Capital. Trade Liberalization Development. Enhancing Supply Capacity in Productive Sectors. Relations with Other RECs International Organizations.
IGAD Economic Cooperation Integration. Harmonization of Policies in Transport Trade. Promotion of Tourism. Coordination of Economic Partnership Agreements.
IOC Economic Cooperation International Trade in Goods, Services. Regional Representation in International Forums.
SADC Economic Cooperation and Regional Integration. Regional Indicative Strategic Development Plan Implementation. Trade Facilitation. Harmonization of Customs Procedures. Training Capacity Building in Central Banks. Development Harmonization of Payments, Clearing and Settlements Systems.
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The Way Forward

• The Propose Business Model will cover
• Market Analysis
• Curricula of services and courses to be offered
  in the area of
• National economic management
• Regional integration
• Special need of small island and landlocked
  states
• Governance and management
• Detailed implementation plan

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CONCLUSION
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• Challenges facing implementation of PMS
• Leadership Commitment effective leadership and
  the ability to drive the change across the whole
  organisation (incl. Political Will)
• Rigid Hierarchical Structure and Bureaucratic
  Procedures is a barrier to the PBB and PMS. New
  set-up - redesign the structures, redesign
  operational / work procedures, remove
  bureaucratic rigidities, promote decentralisation
  
• Effective Alignment with national / economic
  objectives, HRM practices and organisational
  activities, the PBB (e.g. identify new job
  competencies, redesign jobs, revise selection and
  promotion procedures, introduce a reward system),
  training multi-skilling
• Organisation and Civil Service Culture attitude
  inherited culture (resistance to change) is a
  deterrent to reforms and the creation of a modern
  service aiming at excellence. A new mindset, and
  a new system of values and beliefs has to be
  introduced integrity, transparency,
  accountability (flexibility and mobility,
  versatile and multidisciplinary, amenable to
  change)
• Resources and Capacity (human and financial) for
  implementation and continuing operation, incl.
  technical support
• Communication will bring transparency trust
  to the system

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Some Thoughts on Capacity Building

• Capacity mattersit remains a binding constraint
  on development and poverty reduction.
• Governance matters for successful and sustained
  capacity development.
• Capacity development requires an effective state
  and an engaged society.
• Africans must take the lead in capacity
  development and aid management.
• Capacity development should be a core area of
  country-led development strategies.
• Unleashing, nurturing, and retaining existing
  capacity is paramount, as is better use of local
  talent and the diaspora.
• Countries need a robust monitoring and evaluation
  system with a focus on results as an integral
  part of their medium-term plans, such as the
  poverty reduction strategy.
• External partners must avoid capacity-depleting
  practices, such as project implementation units
  and excessive use of external consultants.
• Capacity development support must be adequately
  funded and more predictable.
• Capacity development approaches need to be
  adapted to diverse country contexts.

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• Thank you !!