Country Ownership: What does it really mean?

1
Country Ownership What does it really mean?

• Janet Entwistle and Filippo Cavassini
• An Operational Approach to Assessing Country
  Ownership of PRSs with a Focus on the Role of
  Government Institutions
• PRS Implementation Series
• June 15, 2005

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An Operational Approach to Assessing Country
Ownership of PRSs

• Define country ownership operationally to
• help countries develop better processes for
  formulating country-owned development strategies
• help Bank staff and staff of other agencies to
  better understand and advance the concept of
  country ownership

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Methodology

• Review of literature on country ownership
• Four detailed country case studies (Bolivia,
  Ghana, Kyrgyz Republic and Senegal) chosen based
  on other PRS reviews and case study efforts,
  including CDF Progress Reports
• Countries among those thought to have made
  progress in developing a country owned PRS as
  their national development strategy
• All cases have strengths and weaknesses none
  have full country ownership

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Beyond the case study countries

• Review of 59 countries
• Gives understanding of extent of
• country ownership of PRS, alongside
• link to long-term vision and budget, alignment of
  external resources and focus on results

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What is country ownership?

• Johnson and Wasty (1993), OED (1995), Killick
  (1998)
• Locus of initiative, intellectual conviction,
  public support from leadership, stakeholders and
  institutionalization
• Definition difficult to apply operationally and
  participation often used as a proxy
• OED (2004) clearer milestones needed for what
  ownership is expected to achieve

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Towards a common framework for assessing country
ownership of PRSs

• Common framework of analysis 6 factors of
  country ownership
• Leadership within and participation across the
  executive
• Role and impact of national institutions
• Government-stakeholder dialogue
• Role and impact of internal partners
• Role and impact of external partners
• Political and economic shocks
• 17 indicators within these 6 factors

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Focus on the role of government institutions

• Common framework of analysis2 factors of country
  ownership
• Leadership within and participation across the
  executive
• Role and impact of national institutions
• 7 indicators within these 2 factors

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I. Leadership within and participation across the
executive

• PRS has a clear role vis-à-vis other national
  development strategies
• Finance and planning functions are clearly
  aligned, and the PRS coordination function is
  backed by high-level leadership
• PRS formulation and implementation are embedded
  in interministerial coordination mechanisms and
  linked to a medium-term expenditure framework and
  national budget processes
• Line ministries systematically align sector
  action plans with PRS priorities
• PRS ME system integrated into country-level
  system

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II. Role and impact of national institutions

1. Parliamentary committees contribute to PRS
   formulation and monitoring
2. Local development plans are compatible with PRS
   priorities

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III. Government-stakeholder dialogue

• Government and stakeholders have a mechanism for
  systematic consultation, with mutually agreed
  objectives and timetable.
• Capacity building supports the development of
  negotiation skills across government and
  stakeholders.
• Communication strategy includes translating PRS
  into local languages.
• ME system incorporates information exchange
  between government and stakeholders to inform
  strategy refinements

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IV. Role and impact of internal partners

1. Umbrella CSOs and business associations consult
   with members before engaging the government on
   the PRS.

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V. Role and impact of external partners

• Financing and technical assistance are tailored
  to country circumstances.
• Assistance strategies are aligned with PRS
  priorities and PRS business processes match the
  countrys systems.
• Consultations for assistance strategies are tied
  to PRS participatory structures.
• Consultative meetings are held on a regular basis
  in the country and chaired/co-chaired by the
  government.

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VI. Political and economic shocks

1. Interruptions due to political and economic
   events, including electoral cycles, are
   anticipated and factored in.

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1. Clear role vis-à-vis other national
development strategiesOverview

• 10 of 59 countries PRS is the only medium-term
  strategy linked to long-term vision
• 7 of 59 countries PRS is being integrated into
  traditional/constitutional planning processes
• PRS participatory and strategic approach helping
  integrate pro-poor focus into national planning
  processes in Cambodia, Ethiopia, Lao PDR,
  Pakistan, Tajikistan, Vietnam, Yemen.
• 29 of 59 countries PRS not yet widely considered
  by policymakers as the national development
  strategy
• 13 of 59 countries, mostly LICUS, PRS not yet
  completed

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1. Clear role vis-à-vis other national
development strategiesCountry experience

• Kyrgyz Republic
• Kyrgyz CDF is the long-term development vision
  through 2010
• NPRS is the medium-term strategy through 2005 to
  guide vision implementation
• Uganda
• PEAP is the national vision for poverty
  eradication through 2017
• Every 3-4 years PEAP updates to identify
  medium-term policies

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1. Clear role vis-à-vis other national
development strategiesCountry experience (cont.)

• Pakistan
• Ten-Year Perspective Development Plan for 2001-11
  is traditional federal development plan linked to
  five-year investment plan (MTDF)
• PRS for FY03-08 covering development expenditures
  at the federal and provincial levels
• with limited links with the Perspective
  Development Plan and MTDF
• PRS only framework guiding provincial
  expenditures
• Medium-term Development Framework (MTDF) for
  2005-10 as the new five-year plan, linked to PRS
  instead of Perspective Development Plan
• Yemen
• Strategic Vision through 2025
• PRS 2003-05 coexisting with 2nd Five-year Plan
  2001-05
• 3rd Five-year Plan 2006-10 integrating PRS and
  MDGs

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1. Clear role vis-à-vis other national
development strategiesCountry experience (cont.)

• Bolivia
• Constitutionally-mandated Plan General de
  Desarrollo Económico y Social (PGDES) based on
  National Dialogue 1997 and guiding development
  policies through 2002
• EBRP based on National Dialogue 2000, with
  limited links with the PGDES
• Senegal
• Perspective Study through 2015 developed by the
  Ministry of Planning
• DSRP, coordinated by Ministry of Finance,
  coexisting with constitutionally mandated 5-year
  10th Economic and Social Development Plan
  prepared by Ministry of Planning and not well
  linked to long-term Perspective Study

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2. Finance and planning functions aligned, and
PRS coordination backed by leadershipOverview

• 27 of 59 countries one institution in charge of
  coordinating PRS process
• 6 Ministry of Finance
• 8 Ministry of Planning.
• 7 Ministry of Finance and Planning
• 6 Presidency or Prime Ministers office
• 32 of 59 countries more than one institution in
  charge
• coordination can be problematic, time consuming
  and costly

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2. Finance and planning functions aligned, and
PRS coordination backed by leadershipCountry
experience

• Uganda
• Ministry of Planning and Ministry of Finance
  merged in 1992 to enhance coordination of
  government policies
• Ministry of Finance, Planning and Economic
  Development leads PEAP implementation and
  coordinates the preparation of PEAP Progress
  Reports and PEAP Revisions

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2. Finance and planning functions aligned, and
PRS coordination backed by leadershipCountry
experience (cont.)

• Mozambique
• The Ministry of Planning and Finance (MPF) took
  the initiative on PARPA preparation and had been
  in charge of PARPA updating
• The President, elected in February 2005, has
  substituted the MPF with two separate Ministries
  the Ministry of Finance, and the Ministry of
  Planning and Economic Development

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3. PRS embedded in interministerial coordination
mechanisms, linked to MTEF/budgetOverview

• 6 of 59 countries MTEF is helping increase
  expenditures in the priority areas identified in
  the PRS
• 24 of 59 countries MTEF is under development but
  not yet facilitating strong link between PRS and
  budget
• 29 of 59 countries MTEF not yet under development

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3. PRS embedded in interministerial coordination
mechanisms, linked to MTEF/budgetCountry
experience (cont.)

• Bosnia and Herzegovina
• Coordination Board of Economic Development and EU
  integration, including the Chairman of the BiH
  Council of Ministers, BiH line ministers, as well
  as the prime ministers and finance ministers of
  both entities, responsible for overall government
  policies, including PRSP and EU integration
• Finance ministers of both entities prepared MTEFs
  based on PRSP that guide preparation of the
  entities budgets and the BiH budget

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3. PRS embedded in interministerial coordination
mechanisms, linked to MTEF/budgetCountry
experience

• Pakistan
• National PRSP Steering Committee, chaired by the
  Minister of Finance and composed of line
  ministers, the Planning Commission and Additional
  Chief Secretaries of the provinces, oversees PRSP
  implementation and reports to the Cabinet
  Committee on Economic Affairs and the National
  Economic Council
• Federal Budget FY05 starts shifting allocations
  in line with PRSP and Medium-term Budget
  Frameworks are in place in some of the provinces

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3. PRS embedded in interministerial coordination
mechanisms, linked to MTEF/budgetCountry
experience (cont.)

• Rwanda
• Interministerial Committee on Poverty chaired by
  the Prime Minister coordinates PRS implementation
  
• Line ministries prepare sector MTEFs that feed
  into a macro MTEF, underpinning budget preparation

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4. Sector action plans aligned with PRSOverview

• 36 of 59 countries sector action plans are
  aligned with PRS
• 23 of 59 countries sector action plans are not
  yet aligned with PRS

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4. Sector action plans aligned with PRSCountry
experience

• Mozambique
• Line ministries were significantly involved in
  PARPA formulation to incorporate previously
  developed sector strategies
• Sector strategies are being updated in line with
  PARPA and integrated into a constitutionally-mand
  ated annual Plano Económico e Social guiding
  government policies

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4. Sector action plans aligned with PRSCountry
experience (cont.)

• Malawi
• Ministry of Economic Development and Planning
  working with line ministries to align policies
  with MPRS
• Senegal
• Line ministries have prepared sector operation
  programs identifying actions to meet DSRP
  targets, with timetable and budget
• Government workshop to harmonize and coordinate
  them

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5. PRS ME system integrated into country-level
systemOverview

• 3 of 59 countries a country-level ME system
  tracks PRS implementation
• 23 of 59 countries action is being taken to
  develop a county-level ME system
• 33 of 59 countries there are plans to develop a
  country-level ME system incorporating PRS ME

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5. PRS ME system integrated into country-level
systemCountry experience

• Uganda
• There is a single ME system for both government
  and external partner needs
• Performance indicators are spelled out in the
  Policy and Results Matrix of the revised PEAP
• Benchmarks for assessing annual progress feed
  into the government progress status reports
  transmitted to Parliament during preparation of
  the annual budget

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5. PRS ME system integrated into country-level
systemCountry experience (cont.)

• Mozambique
• Monitoring of PARPA activities and programs and
  MDGs integrated in semi-annual and annual
  Progress Reports of the constitutionally-mandated
  Plano Económico e Social (PES), transmitted to
  Parliament
• Link of line ministries ME systems with PES
  timing and indicators developing

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5. PRS ME system integrated into country-level
systemCountry experience (cont.)

• Bolivia
• EBRP ME is conducted through a Sistema de
  Seguimiento y Evaluacion (SIGMA) integrated into
  a broader government information management
  system under development
• It is coordinated across government institutions,
  although now is operational only at the central
  level reaching a limited number of ministries
• Some external partners are harmonizing their ME
  systems with SIGMA
• Goal is to expand SIGMA across the executive,
  incorporate regions and municipalities and
  harmonize external partners ME around it

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6. Parliamentary committees contribute to PRS
formulation and monitoringInternational
experience

• 7 of 59 countries parliamentary committees
  contribute to PRS formulation and monitoring
• 5 parliament approved PRS
• 52 of 59 countries parliamentary committees do
  not contribute to PRS formulation and monitoring
• 13 parliament approved PRS

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6. Parliamentary committees contribute to PRS
formulation and monitoringCountry experience

• Ghana
• In 2002 Parliament formed a special committee on
  poverty reduction, assembling parliamentarians
  from standing committees, to discuss the GPRS
• Parliament approved the Coordinated Program for
  Economic and Social Development, Ghanas
  constitutionally mandated development vision, in
  December 2002 and the GPRS in early 2003
• The special committee continues to report to the
  plenary on the focus, content and adequacy of
  GPRS implementation

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6. Parliamentary committees contribute to PRS
formulation and monitoringCountry experience
(cont.)

• Honduras
• The National Congress is constitutionally
  mandated to approve development plans and
  approved the ERP in 2001, the 2002-06 Government
  Plan presented by the new Government and based on
  the ERP in 2002 and the ERP Progress Report in
  2003
• In 2004 the National Congress approved a Poverty
  Reduction Law identifying the ERP goals as the
  objectives for the countrys social policy
  through 2015 and providing for the submission of
  ERP Progress Reports to the National Congress
• The Budget Committee of the National Congress is
  responsible for overseeing the alignment of the
  general budget with the ERP

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7. Local development plans are compatible with
PRS prioritiesOverview

• 7 of 59 countries there is evidence of local
  development plans prepared in alignment with PRS
  priorities
• 52 of 59 countries there is no evidence local
  development plans reflecting PRS PRS priorities

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7. Local development plans are compatible with
PRS prioritiesCountry experience

• Pakistan
• The Government encouraged each province to draft
  its own PRS
• Three of the four provinces completed a PRS,
  which served as input for the national PRS
• The PRS of the poorest province was not completed
  in time and remains in draft form

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7. Local development plans are compatible with
PRS prioritiesCountry experience (cont.)

• Bolivia
• Municipalities develop Programas Operativos
  Anuales to have access to financial resources,
  based on five-year development plans identifying
  development objectives at the local level
• Municipalities completed five-year development
  plans in 1999, 2000 and 2001
• The EBRP, launched in 2000 and completed in 2001,
  allocates HIPC resources to municipalities with
  limited links to municipal development plans

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Challenges

• New emphasis on domestic versus external
  accountability can help enhance common
  understanding and application of country
  ownership of PRSs.
• Integrating PRSs into national planning processes
  is key to broadening country ownership across
  government institutions.
• Institutionalization of stakeholder participation
  and external dimensions of country ownership also
  important.