Transcript Public Expenditure Tracking Surveys: Strengthening

Doris Voorbraak, Kai Kaiser
Public Sector Governance Group
Poverty Reduction and Economic Management
The World Bank
PREM learning week
May 5, 2009
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Improving Service Delivery
 Developing countries have increased spending- with
support of donor funding- to fulfill their commitments
to quality health and education services for all
 Problem remains that evidence shows that there is a
weak association between spending and outcomes
 Increased pressures to evaluate modalities by which
resources reach the frontline (including country
systems, special programs, etc.)
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Why are services failing poor
people?
 Increased public resources do not always translate into
better outcomes
 Governments do not spend enough on public
goods or poor people
 The money does not always reach frontline
service providers
 Money does reach frontline service providers but
service delivery can still be inefficient
 There is no demand for better services
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Spending wisely
Strengthening Public Expenditure Management is essential
to improve service delivery
When services fail poor people, a good place to start looking for the
underlying problem is the budget:
 Budgets are misallocated
 Budgets are misappropriated
PETS helps focus on links between effective PFM and actual service
delivery
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Judging operational impact of
budgets
 PETS can help you to judge operational impact- the
quality and quantity of service delivery, and where and
how, and to what effect allocated funds are spent
 It therefore helps to shed light on budget allocation and
execution issues
 Their common theme: the relationship between public
spending and development outcomes
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What is PETS?
Surveys that track, locate and
quantify the flow of public resources
across various administrative levels
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Resource Flows to Frontline Facilities Vary
PEM Processes/Execution
Administrative
Layers
- Allocation Disbursement Procurement
Central
E.g.,
Uganda
Education
Capitation
Grant
Provincial
Flow
Junctures
Local
$ per
Student
Facility/
Frontline
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E.g., Wages
In-Kind
Monetary
Cash Grants
In-Kind
Non-Monetary
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PETS Objectives?
 Identify/Quantify problems in expenditure items
 Cash Leakages
 In-kind Leakages (textbooks, drugs)
 Absenteeism/Ghost Workers
 Investigate specific issues (equity, transparency,
adequacy, timeliness of resources, regional disparities)
 Increase supply of and demand for information:
information is crucial as stimulus for public action, as
catalyst for change, as input to make reforms work
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Year
Type
Sectors
TTL unit
Burundi
2007
PETS
Health/Education
/Justice
WB-PREM
Cameroon
2004
PETS
Health/Education
WB-PREM
Chad
2004
QSDS
Health
WB-DEC
2007
PETS
2000
PETS
2004
PETS
Preliminary
Report
Health/
Education
DFID
Madagascar
2003, 2005, 2006
PETS-QSDS
Health
WB DEC
Mali
2005,2007
PETS-QSDS
Education,
Health
WB HD
Mozambique
2001, 2004
PETS-QSDS,
PETS
Health
DFID
Namibia
2004
PETS-QSDS
Niger
2008
PETS
Nigeria
2004
PETS, QSDS
Health
WB DEC
PETS
Education,
Health/Education
WB PREM
Region/ Country
AFR
DRC
Ghana
Kenya
Rwanda
2003, 2004
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Education(teache
r payroll
expenditure)
Health/
Education
Health,
Education
Health,
Education
WB PREM
WB HD
IFPRI
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Region/ Country
Year
Senegal
2002
Type
PETS
Sierra Leone
2000/01, 2003
Tanzania
Uganda
Zambia
1999, 2001,
2003,2004
1996,
2001,2003,2004
2001,2002, 2004
PETS 1 and 2,
PETS-review
PETS and PETS
review
PETS and PETSQSDS
PETS-QSDS (3)
TTL unit
Sectors
Health
Agriculture/Health/
Education/Water and
Sanitation
Health, Education,
Agriculture and Roads
Health, Education
Education, Service
Delivery
WB DEC
DFID
USAID
WB DEC
WB DEC
EAP
Cambodia
2005
PETS (2)
Health, Education
WB HD
Lao PDR
2008
PETS
Health, Education
WB PREM
Mongolia
2006
PETS
Education
WB HD
Papua New Guinea
2002
PESD
Health
WB DEC
Health, Education
WB HD
WB PREM
ECA
Albania
2004
PETS
Azerbaijan
2006
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PETS (2)
Education
WB HD
WB PREM
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Region/ Country
Year
Type
Sectors
TTL unit
Tajikistan
2008
PETS(programmatic
PER)
Health
WB PREM
2001
PETS +QSDS
Poverty Reduction
WB PREM
2002
PETS +QSDS
Poverty Reduction,
Education
WB PREM
2003
Absenteeism Survey
Health
WB HD
2006
PETS
Education
LCR
Honduras
Peru
SAR
Bangladesh
MNA
Yemen
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PETS-Experience to Date
 Pioneer was Uganda PETS; still best known for its strong policy
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impact (1996) Results and impact other PETS appear more
ambiguous.
Majority of the studies so far cover African countries and part of
PER/broader PFM engagement.
Most PETS cover health and education. Some are joint studies.
PETS has become a broad brand name for different products.
PETS team leaders (TTLs) as far as the WB is concerned represent
different professional affiliations-research (DEC), Public sector
governance (PREM) sectors (HD). PETS has demonstrated to
provide a good platform for collaboration between sector-and
governance specialists
In some countries, follow-up PETS exercises (Uganda, Tanzania,
Sierra Leone) but not necessarily with same research questions
and scope.
Linked with Quantitative Service Delivery Surveys (QSDS)
(Zambia, Nigeria) or other facility-related surveys
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PETS: Experiences to date(2)
 Cost of survey can range from US$ 75,000-US$200,000
 Sufficient time and resources are necessary to plan,
design and implement a survey.
 Key national partners for PETS very context-specific
but largely determined by incentives and power
dynamics among government counterparts
 Dissemination activities vary depending on level of
engagement by national actors
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Challenges in conducting and
disseminating PETS
 Measuring resource leakage ( not necessarily corruption!)
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has been difficult in many countries due to the complexity
of resource flows, and lack of reliable and available data
Even when funds reach intended beneficiaries, lack of
detailed accounting may lead to erroneous calculations in
the book
Unannounced visits may result in unintended
consequences
National counterparts may not like the results
Politics !
Institutional incentives in the Bank
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Lessons learned: Planning
 Determine whether or not PETS is the right tool
 Invest enough time and thought in the planning stage
 Set appropriate and attainable objectives based on the
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country-context and available information:
Have a fact-finding mission for an institutional
assessment, mapping of roles and responsibilities of
relevant actors, and review of stakeholders:
Promote country ownership from the planning stages.
Evaluate the trade-offs for doing a joint PETS:
Evaluate the trade-offs of covering single versus
multiple types of expenditures or facilities:
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Lessons learned: Implementation
 A well managed process can unleash additional
benefits
 Ultimately the sector ministry needs to be the
main actor for the implementation of policy
 Work with experienced people with deep insight
knowledge of the country
 Recruit the right people at the local level
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Lessons learned: Dissemination
and follow-up:
 Strike a practical balance for making findings
from a PETS actionable
 Note that the right timing is critical for releasing
survey findings
 Determine the share of responsibilities among
Bank units for dissemination activities
 Be realistic about the capacity and neutrality of
civil society:
 Establish a PETS monitoring and follow-up
mechanism
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Weigh options against maximum
leverage for real change
 PETS has established itself as an instrument of reference in the
dialogue around PEM and execution for governments, development
partners and civil society.
 PETS can serve as a strategic tool in a broader overall PFM
agenda/dialogue. It remains important to carefully weigh the pros and
cons of working with PETS as a diagnostic product vis-à-vis the many
other existing tools: PERs, CFAAs,PEFA etc.
 And last but not least: Take your time to plan, design and implement
and consider strategic partnering and dissemination and
communication strategies aimed at actors who can make change
happen!
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Resources
 Public Sector Governance –PETS website
Permanent URL for this page:
http://go.worldbank.org/HSQUS4IS20
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Presentation for
PREM week May 5,2009
Kai Kaiser, Senior Economist,
Public Sector Group, World Bank, Washington, DC
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Three Levels of PFM Concerns
 Macroeconomic Management
 Allocative Priorization
 Operational Efficiency
See: Pradhan and Campos (1996)
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Various Instruments
 Public Expenditure Reviews (PERs)
 Increasing Number Conducted by Sectors, including HD
 Sometimes include PETS
 …also policy note/programmatic approach
 PEIRs, CFAA, Portfolio Reviews
 International Benchmarking
 HIPC Indicators
 PEFA Indicators
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Key Stakeholders in PFM
 Cross-Cutting Ministries
 Ministry of Finance
 Ministry of Planning/Economics
 Ministry of Interior/Local Government
 Sectoral-Cutting Ministries
 Ministry of Education (various levels), Health, Social
Protection
 Sub-National Government
 Devolved and Deconcentrated Structures
 World Bank Networks
 PREM, HD, SDV
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Challenges
 Cross-cutting PFM dialogue to high level
 Remains abstract, to focused on supply side strategies
 …enhanced focus on actionable PFM Indicators
 Dialogue with sectors/line agencies will vary
 Sectors may be tempted to vertical lens
 Emphasis on earmarking funds/vertical programs
 Ambivalent about budgeting autonomy for sub-national governments
 Community Participation Advocates Neglect Supply Side
 May create parallelism to get funds to frontline
 Focuses on narrow volume of expenditures
Fiscal flow mapping and tracking inherent in PETS can serve to center these
discussion
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Fiscal Architectures Vary
 Institutional Architecture
 How to funds get prioritized/budgeted, executed,
monitored for frontline service delivery?
 Intermediate/Decentralized Levels
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Sub-National Governments
 Does the center and or both allocate?
Facility
Treasury Design
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International Initiatives for
PFM Performance Benchmarking
 HIPC Indicators
 Improved Monitoring of PFM systems as part of debt
reduction
 Public Expenditure & Financial Accountability (PEFA)
Indicators
 28 Performance Indicators + 3 for donors
 Covers 8 and 23 cover fiscal decentralization and front-
line facility information
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PEFA Indicators
Focused on Facility Financing (PI-23)
Score
A
Minimum requirements (Scoring methodology: M1)
(i) Routine data collection or accounting systems provide reliable information on all types of
resources received in cash and in kind by both primary schools and primary health clinics
across the country. The information is compiled into reports at least annually.
B
(i) Routine data collection or accounting systems provide reliable information on all types of
resources received in cash and in kind by either primary schools or primary health clinics
across most of the country with information compiled into reports at least annually; OR
special surveys undertaken within the last 3 years have demonstrated the level of resources
received in cash and in kind by both primary schools and primary health clinics across
most of the country (including by representative sampling).
C
(i) Special surveys undertaken within the last 3 years have demonstrated the level of resources
received in cash and in kind by either primary schools or primary health clinics covering a
significant part of the country OR by primary service delivery units at local community
level in several other sectors.
D
(i) No comprehensive data collection on resources to service delivery units in any major sector
has been collected and processed within the last 3 years.
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PEFA Indicators
Focused on Sub-National Transfers (PI-8)
PI-8
Transparency of inter-governmental fiscal relations
(i) Transparent and rules based systems in the horizontal allocation among
SN governments of unconditional and conditional transfers from
central government (both budgeted and actual allocations);
(ii) Timeliness of reliable information to SN governments on their
allocations from central government for the coming year;
(iii) Extent to which consolidated fiscal data (at least on revenue and
expeniture) is collected and reported for general government according
to sectoral categories.
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PEFA Fiscal Decentralization Outcomes Vary
A
Fiscal Decentralization PEFA Score (Sub-Saharan Africa)
B
C
D
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Slide includes finalized and draft reports
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As do information on frontline service
delivery facility financial flows
Frontline Service Delivery PEFA Indicator (PI-23) (Sub-Saharan
Africa)
A
B
C
D
1
2 3
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4
5
6 7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
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Facility and Local Government Frontline
Financing Indicators
PEFA Indicators on Decentralized Finance (PI-8 and 23)
A
B
C
D
1 2 3 4
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5 6 7 8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
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How can PFM diagnostics and information
initiatives have impact?
 PETS Can Promote Evidence Policy Dialogue
 Better understanding of prevailing institutional arrangements
Range of contexts (post-conflict to middle income)
 “Hard” numbers on leakages underscore gap between formal
and informal practices
 Supplement or substitute for audit functions?

 Highlight Supply-Demand Side Interactions
 Rules Based Allocations Prerequisite to enable demand side
accountability

Claims against budgetary entitlements at frontline
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PETS Process Challenges
 Managing Expectations
 Ability to quantify leakages in general
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Specific flows versus general leakages
Catering method to context
 How to interpret findings

Implications for supply side versus demand side
reform/capacity building…
 How to disseminate findings
 Mainstreaming in PFM and Sectoral Dialogues…
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Key Resources
 PETS Database/Website
 PREM Fiscal Leakages Note
 HD PER Guidelines
 Using Information to Enhance Demand Side
Accountability Stocktaking
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