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A Missing Link in Federalism Reforms: The Culture of Governance : 

A Missing Link in Federalism Reforms: The Culture of Governance Anwar Shah Fiscal Federalism in Mercosur Porto Alegre, Brazil 26-27 June 2002

Why are developing and transition economies (DTE) decentralizing?: 

Why are developing and transition economies (DTE) decentralizing? Serving citizens better ? NO

Decision to decentralize primarily guided by politics : 

Decision to decentralize primarily guided by politics

Decentralization: progress so far: 

Decentralization: progress so far Political decentralization: Good progress but citizen empowerment issues remain. Fiscal decentralization: Modest progress but incomplete tax decentralization, and manna from heaven fiscal transfers encourage leviathan, institutional void Administrative decentralization: Poor progress especially in re-orienting political and bureaucratic culture of governance to service delivery performance and citizen satisfaction

A citizen’s perspective on the unfinished agenda for public governance reforms: 

A citizen’s perspective on the unfinished agenda for public governance reforms Being Responsive or Doing the right things Matching public services with citizens’ preferences Improving the quality, quantity and access of local public services Being Responsible or Doing it right Earning trust Working better and costing less Being Accountable Citizens charter Social norms and trust, consensus on limits to govt. intervention

How it can be done?: 

How it can be done? Greater reliance on own benefit taxes and charges Credit market access and private sector participation in infrastructure provision Avoiding self-defeating investment promotion and fiscal wars Re-orienting the political and bureaucratic culture of governance to service delivery performance and citizen satisfaction

..missing piece: bureaucratic culture and incentives: 

..missing piece: bureaucratic culture and incentives “Government is the coldest of all cold monsters – whatever it says it lies – and whatever it has -it has stolen.” Nietze

Why governments do not deliver?: 

Why governments do not deliver? Mandate Authorizing Environment Outputs, reach, outcomes Operational capacity

The bottomline: 

The bottomline It is the culture of local governance and not the operational capacity that is critical.

One solution- fiscal transparency: 

One solution- fiscal transparency “…to protect the Treasury from being defrauded, let all money be issued openly in front of the whole city, and let copies of the accounts be deposited in various wards…” - ----Aristotle, The Politics

An approach that always works: 

An approach that always works Athenian Oath: “We will strive increasingly to quicken the public sense of public duty; That thus… we will transmit this city not only not less, but greater, better and more beautiful than it was transmitted to us”.

A Road Map for ROME: 

A Road Map for ROME Program/project=> inputs =>activities=>outputs=>reach=>outcome=>impact=>citizen feedback and evaluations=> Program design => Program/project

ROME in a nutshell…: 

ROME in a nutshell… Extends results movement beyond concern for capacity, internal structure… 1. Results-Oriented Management alone does not lead to results… 2. Citizen voice and choice is central to achieving results 3. ROME incorporates citizens voice and choice. 4. Results-Oriented Management + Results-Oriented Evaluation = ROME=RESULTS

Key Elements of Citizen Centered Governance Reforms: 

Key Elements of Citizen Centered Governance Reforms Citizens charter Service standards Requirements for citizens voice and choice Subsidiarity Citizen oriented output budgeting Service delivery outputs and costs Citizens report card on service delivery performance for the previous year Public sector as a purchaser but not necessarily provider of services through performance contracts Alternate Service Delivery Framework Benchmarking

Making the Dog Wag Its Tail: Blueprint for a citizen-centered civil service (cccs) : 

Making the Dog Wag Its Tail: Blueprint for a citizen-centered civil service (cccs) Current culture Rigid rules Input controls Top-down accountability Low wages and high perks Life-long and rotating appointments Intolerance for risk/innovation CCCS Managerial flexibility Results matter Bottom-up accountability Competitive wages but little else Contractual and task specialization Freedom to fail/succeed

An Example: Education grant to Encourage Competition and Innovation: 

An Example: Education grant to Encourage Competition and Innovation Allocation basis among local governments: School age population (ages 5-17) Secondary distribution to providers: Equal per pupil to both public and private schools Conditions: Universal access to primary and secondary education regardless of parents’ income, improvement in educational outcomes. No conditions on the use of grant funds. Penalties: Public censure, reduction of grants funds Incentives: Retention of savings

PROMISES MADE, PROMISES KEPT: 

PROMISES MADE, PROMISES KEPT An example from the Town of Papakura, New Zealand

Governance Structure: 20th Versus 21st Century: 

Governance Structure: 20th Versus 21st Century Unitary Centralized Center manages Bureaucratic Command and control Internally dependent Closed and slow Intolerance of risk Federal / confederal Globalized & localized Center leads Participatory Responsive and Accountable Competitive Open and quick Freedom to fail/ succeed

ROME: towards a better tomorrow?: 

ROME: towards a better tomorrow? Improved norms of conduct (Malaysia, UK) Cultural shift from input controls to output and accountability (New Zealand) Encouragement of partnership, competition and risk taking (Canada Alternative Service Delivery Framework, Malaysia) Greater bottom-up accountability Design of incentives critical In LDCs strong potential for improving public sector performance Moral: Leapfrog or meet a slow death

ROME - Road Map to Wrecks and Ruins ?: 

ROME - Road Map to Wrecks and Ruins ? Dilbert’s perspectives - This fad will also pass away.

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