Practical tools for analyzing the pro-poor quality of policies (1)

1
Practical tools for analyzing the pro-poor
quality of policies (1)

• If donors want to work in partnership, and
  harmonize their approaches to policy analysis,
  what approaches could we use together ?
• We can use, e.g.
• PSIA
• Poverty and Social Impact Assessment
• A variety of tools for assessing the poverty
  and social impacts of each individual reform (--gt
  Training module 3 )
• PER
• Public Expenditure Review
• to assess the allocation and benefit incidence
  of public budgetary resources (--gt Training
  module 4)

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Practical tools for analyzing the pro-poor
quality of policies (2)

• CFAA
• Country Financial and Accountability Assessment
• to assess how responsibly the public
  authorities manage public funds and what is the
  quality of their systems and capacity for
  internal and external auditing.
• --gt Training module 4.
• CPIA
• Country Policy and Institutional Assessment
• This is the tool WB uses every year for
  deciding the allocation of IDA credits to LICs
  (with Portfolio Performance Assessment)
• Main purpose To assess the quality of a
  countrys present policy and institutional
  framework
• Quality means how conducive that framework is
  to fostering poverty reduction.

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CPIA 20 policy aspects, grouped into 4 categories

• A. ECONOMIC MANAGEMENT
• 1. Management of Inflation and Macroeconomic
  Imbalances
• 2. Fiscal Policy
• 3. Management of External Debt
• 4. Management and Sustainability of the
  Development Programme
• B. STRUCTURAL POLICIES
• 5. Trade Policy and Foreign Exchange Regime
• 6. Financial Stability and Depth
• 7. Banking Sector Efficiency and Resource
  Mobilization
• 8. Competitive Environment for the Private Sector
• 9. Factor and Product Markets
• 10. Policies and Institutions for Environmental
  Sustainability
• C. POLICIES FOR SOCIAL INCLUSION / EQUITY
• 11. Gender
• 12. Equity of Public Resource Use
• 13. Building Human Resources
• 14. Social Protection and Labour
• 15. Poverty Monitoring and Analysis of Poverty
  Outcomes and Impacts
• D. PUBLIC SECTOR MANAGEMENT AND INSTITUTIONS

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The Democratic Principle - Who should assess
whether a government is on track or not ?

• If the elected Parliaments and the elected Local
  Councils are not involved, the PRSPs lose in
  credibility as Economic Constitutions (?)
• Risk that they are viewed as government and not
  state documents and thus subject to changes in
  government
• Therefore important to involve not just
  governments and civil society but also
  Parliaments, Local Councils.
• If PRSP-process too heavily controlled by the
  Min.of Finance/Planning, theres the risk that
  other ministries (e.g. of Social Affairs,
  Education, Health, Agriculture) feel lack of
  ownership and commitment.
• Make sure that you know the status of PRSP, e.g.
  compared to leading Party/Government documents.

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CPIA Country Policy and Institutional
Assessment ( See http//www.worldbank.org/ida/ID
APerfalJan02.pdf )

• 20 aspects of policy assessed, each with a 5
  weight.
• Each aspect of policy should be considered in
  light of its impact on poverty reduction.
• Based on WB Country Teams subjective
  assessments, scrutinized by WB-HQ.
• Clear definitions and presentational tools
• Could this assessment gain in credibility if it
  were done by the wider donor community?
• At the moment country ratings are still not
  disclosed by the WB but country rankings are
  published in quintile groups.

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CPIA

• Ratings Scale 1 (low) through 6 (high)
• Unsatisfactory for an extended period
• Unsatisfactory
• Moderately Unsatisfactory
• Moderately Satisfactory
• Good
• Good for an extended period

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E.g. the criteria for CPIA-dimension nr 12
Equity of Public Resource Use

• INTRO
• This item assesses the extent to which the
  overall development strategy and the pattern of
  public expenditures and revenues favours the
  poor. National and sub-national levels of
  government should be appropriately weighted.

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CPIA Equity of Public Resource Use

• 2 UNSATISFACTORY
• The Overall development strategy and the
  incidence of public expenditures benefits the
  better-off more than the poor, or the incidence
  is unknown. There are few or no policies and
  programs to address disparities among
  individuals, groups or geographic areas in their
  access to public services or outcomes. The
  overall incidence of public revenues is
  regressive.

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CPIA Equity of Public Resource Use

• 5 GOOD
• Public expenditures for social services benefit
  the poor more than the better-off. The government
  has identified individuals, groups or localities
  that are poor, vulnerable or have unequal access
  to services and opportunities, and is designing,
  with their participation, appropriate targeted
  programs. The overall incidence of revenues is
  progressive.

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Buzz-group excercise Assessing the relevance of
the CPIA-Criteria

• 20 buzz-groups - 20 CPIA policy aspects
• 2-3 members per group
• just turn to your neighbour on the spot
• Each group to read and assess the relevance of
  the criteria for 1 dimension.
• 5 min. for work in buzz-groups
• 20 x 1 min for a very brief feedback to plenary
• Relevance of the policy aspect for PovRed ?
• Relevance of the CPIA-criteria for the policy
  aspect ?
• Total 25-35 min
• Objectives Group dynamics becoming familiar
  with the CPIA. No serious assessment of the
  quality of CPIA.

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CPIA 20 policy aspects, grouped into 4 categories

• A. ECONOMIC MANAGEMENT
• B. STRUCTURAL POLICIES
• C. POLICIES FOR SOCIAL INCLUSION / EQUITY
• D. PUBLIC SECTOR MANAGEMENT AND INSTITUTIONS

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A. ECONOMIC MANAGEMENT

• 1. Management of Inflation and Macroeconomic
  Imbalances
• 2. Fiscal Policy
• 3. Management of External Debt
• 4. Management and Sustainability of the
  Development Programme

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B. STRUCTURAL POLICIES

• 5. Trade Policy and Foreign Exchange Regime
• 6. Financial Stability and Depth
• 7. Banking Sector Efficiency and Resource
  Mobilization
• 8. Competitive Environment for the Private Sector
• 9. Factor and Product Markets
• 10. Policies and Institutions for Environmental
  Sustainability

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C. POLICIES FOR SOCIAL INCLUSION / EQUITY

• 11. Gender
• 12. Equity of Public Resource Use
• 13. Building Human Resources
• 14. Social Protection and Labour
• 15. Poverty Monitoring and Analysis of Poverty
  Outcomes and Impacts

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D. PUBLIC SECTOR MNGT AND INSTITUTIONS

• 16. Property Rights and Rule-based Governance
• 17. Quality of Budgetary and Financial Management
  
• 18. Efficiency of Revenue Mobilization
• 19. Quality of Public Administration
• 20. Transparency, Accountability and Corruption
  in the Public Sector.