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CE Results Framework for PRSCs in Lao PDR

September 2, 2004Moira Hart-Poliquin

Chirine Alameddine

The World Bank Institute

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1. Lessons Learned from Past PRSCs

2. Why a consistent CE framework makes sense for PRSCs

3. How CE could support PRSC reforms in Lao PDR

DESIGNING CE STRATEGIES IN SUPPORT OF PRSCs

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PRSC

• Investment in CE (FW) tackles both:• Ownership Institutional incentives and policies• Implementation Organizational systems and processes• Selectivity of results is key; results should be realistic, relevant, and

feasible• Need convincing approach to capacity problem in order to sell tough

targets• Strengthening systems and processes builds confidence and ability to

achieve results

• Challenges to policy reform are two-fold • PRSC tackles policy reform for PRSP Ownership

Implementation

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• Supports shift towards results-oriented indicators and progress benchmarks

• Helps to align donor support• Has the explicit goal of aligning Bank support• Requires ongoing monitoring and feedback into program

implementation for long term institutional capacity building

Main Message:• A strategic and structured approach to CE makes sense for improving:

• M&E• donor alignment• design and targeting of CE interventions• institutional constraints as well as organizational and individual capacity

issues

LESSONS LEARNED FROM PAST PRSCs

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WHY A CONSISTENT AND SYSTEMATIC CE FW MAKES SENSE FOR PRSC

PRSCs important entry point because government-owned and supported indirectly by donors financially and technically

Use PRSC results matrix to prioritize and develop shared view (with government and donors) on capacity constraints and effective interventions that go beyond training and focus on capacity issues at the organizational and individual levels.

Donor Coordination: E.g., Japan & EU have CD programs in LaosOpportunity to coordinate and target these investments to have a greater impact Promote with partners moving beyond traditional training to measure and monitor organizational and individual capacities.

Use supervision process to monitor progress on capacities related to the results matrix

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Objective

Institutional

Organizational

Individual

Baseline Capacity

Inputs/Interventions

Outcome/Indicator

Results C

hain

Current level of capacity

Interventions to address constraints

Simple, customized and measurable indicators

BENEFITS OF A CONSISTENT AND SYSTEMATIC CE FW

More effective design of capacity interventionsBetter Monitoring Improved donor coordination

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• Building Constituencies for Change - Exposing Lao leaders to lessons learned from leaders in China and Vietnam on facilitating reform. Examples:

• Service Delivery: Improved tracking, better PEM, policies for improved transparency

• PSD: Market-oriented reform, transition of economic institutions, SMEs, and attracting investment

• Leadership Skills- Strengthening leadership skills and confidence to make change, achieve PRSC triggers and implement new policies through innovative approaches (e.g. Rapid Results to help jump start and enhance implementation)

• Assessing Capacity Needs- For each set of triggers, identify organizational and individual constraints where knowledge sharing, training, study tours, or twinning could contribute to removing bottlenecks

SUPPORTING PRSC REFORMS THROUGH…

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HOW CAN CT MEMBERS SUPPORT THIS PROCESS

Applying a consistent CE framework to support the PRSC outcomes

Advocating for improved coordination

Strengthening analytical capacity by involving local experts/partners in analytical work from the initial design stage

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THANK YOU

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Objective: Developing a public expenditure tracking system that will lead to a situation where the GOL/MOE can determine what fund are going where and for what

result

Institutional Organizational Individual

Baseline Capacity

No tradition of expenditure tracking for purpose of accountability for equity and efficiency

MOE does not have education policy division to analyze results of PETS activities and present them in ways that are useful to decision-makers

Limited knowledge of public expenditure tracking systems

Inputs/Interventions

Participation of MOE in first PETS activity, as part of multi-agency team, with Bank support

Creation of education policy division in MOE, under EDP II, with training and specific policy exercises

Participation in Bank-funded multi-country PETS training course (2004)

Participation in Bank-funded multi-agency PETS exercise (2004/05)

Outcome/Indicator

MOE decision-makers appreciate benefits of first PETS exercise and plan to adapt, expand and repeat exercise

First PETS successfully undertaken in 2005 in social sectors

Expanded PETS undertaken in later years

Example: CE issues in Education

Results C

hain

• Education Division policy created and staffed with appropriately trained personnel•PETS-related policy produced to acceptable standard

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Objective: Effective Decentralization

Institutional Organizational Individual

Baseline Capacity

Clarity of roles and responsibilities

Donor coordination

Existence and quality of business processes

Effectiveness of organizational structure

Adequacy of skills

Inputs/Interventions

TA for policy options Promote dialogue on

strengthening the road transport industry (private sector)

Processes for key support functions: fin. mgmt., procurement, M&E

TA for manuals, guidelines, procedure

Training in key support functions: fin. mgmt., procurement, M&E

Outcome/Indicator

Accountability structure

Shift in key roles across public-private sector boundary

Performance-related skills improvement

Example: CE issues in RMP2

Results C

hain

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Objective: Functional budget classification

Institutional Organizational Individual

Baseline Capacity

Centralized control approach in MoF and at policy level

Agencies preference for budget consolidation to allow flexibility

Lack of technical skills to prepare classification structure

Inputs/Interventions

Knowledge sharing/dialogue/study tours to neighbors for decision makers make the case for move from expenditure system to functional

Long term coaching for training in designing and implementation of a “functional” classification system

TOTs for extensive training at agency, with local institutional base and provincial level in application of system

Outcome/Indicator

Timeliness, transparency, and coherence of budget envelopes

FY2004 budget presented following administrative, functional and simplified line-item structure

Same system applied for execution and accounting

Results C

hain

Example: CE issues in PEM