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The ‘decentralisation agenda’ must succeed

Suvojit Chattopadhyay's picture

MoroccoDuncan Green’s blog hosted a post by LSE’s Jean-Paul Faguet titled: Is Decentralisation good for Development? Faguet has edited a book by the same name that you can find here. This is a subject very close to my heart, and I believe in decentralisation as a value, just as I believe in democracy. It is often a work in progress, but it is a project worth persisting with, an ideal worth pursuing. Faguet’s research (at least, my interpretation of his work) therefore, really speaks to me. In this post, he makes several interesting and compelling points. For instance:

On the advantage of competitive politics generated by decentralised systems:

Imagine you live in a centralized country, a hurricane is coming, and the government is inept. To whom can you turn? No one – you’re sunk. In a decentralized country, ineptitude in regional government implies nothing about the ability of local government. And even if both regional and local governments are inept, central government is independently constituted, probably run by a different party, and may be able to help. Indeed, the very fact of multiple government levels in a democracy generates a competitive dynamic in which candidates and parties use the far greater number of platforms to outdo each other by showing competence, and project themselves hierarchically upwards.  In a centralized system, by contrast, there is only really one – very big – prize, and not much of a training ground on which to prepare.

Indonesia: Testing a new approach to improve public management for better service delivery

Zaki Fahmi's picture
The district of Bojonegoro in East Java is planning to improve public management for better services, such as maternal health care.



In post decentralization Indonesia, the responsibility to deliver services falls largely at the hands of the local government. So, too, does the management of public money. Local governments currently manage about half of Indonesia’s public finances. Transfers to the regions increased by more than threefold in real terms since the onset of decentralization.
 
However, with few improvements in health and education indicators, the results of these increased transfers are not encouraging.

6 ways to strengthen consumer voice in water and sanitation sector through ICT platforms

Fadel Ndaw's picture
Source: Akvo FLOW

A new study was recently carried out by the Water Global Practice’s Water and Sanitation Program on how to unlock the potential of Information and Communications Technology (ICT) to improve Water and Sanitation Services in Africa. The study suggests that promoting public participation and creating a system of transparency and accountability is critical to improve water and sanitation services to the poor [1] – as identified in earlier studies on the characteristics of well-performing public water utilities. The experiences and lessons learned from the study indicate the following six key ways on how to support the design and implementation of ICT tools to strengthen consumer voice and citizen engagement in the water and sanitation sector.

Preventing renegotiation, fostering efficiency

Rui Monteiro's picture
Lawyers usually say that “the best contract is the one you never have to pull out of the drawer” — a view that focuses on trust, common understanding and mutual advantages. And then they will add that public-private partnership (PPP) contracts, even with the best government–business relationship, are a bit more complex. That’s because they are based on incentive mechanisms that require not only regular monitoring, but also some degree of cooperation and a modicum of strategic management — the three components of PPP contract management.
Photo: Wikimedia Commons
The ultimate success of a PPP contract depends on effective service delivery under conditions of sustained efficiency. The efficiency comes from linking private operator rewards to performance over the long-term (output focus), and from providing credible commitment by the private partner through private finance (or, as it’s known in some circles, “hostage capital”).
There are many cases, as seen in previous issues of Handshake, of PPPs providing high-quality reliable service to users at a reasonable cost for users and taxpayers. But there is also recognition that, over the long-term, PPP efficiency may be jeopardized by contract renegotiation — by necessity renegotiation under no competitive pressure, with asymmetrical information.

This sort of renegotiation creates a risk of breaking the initial commitment, changing rewards and risk allocation. Though theoretical economists would say 
that “in the long-term” renegotiation of incomplete contracts is unavoidable, PPP practitioners should do their best in order to avoid the need for renegotiation, while simultaneously preparing for renegotiation when it is the best solution in terms of public interest.

Helping communicate the potential of PPPs through a new, free online course

Clive Harris's picture

Public-Private Partnerships (PPP): How can PPPs help deliver better services? New, free massive open online course (MOOC) course provides an understanding of the key principles of PPPs and the role of PPPs in the delivery of infrastructure services, particularly in emerging markets.

Public-Private Partnerships MOOCThe World Bank Group’s twin goals of ending extreme poverty by 2030 and promoting shared prosperity can’t be achieved unless we see a huge boost in the quality and quantity of infrastructure services. Boost infrastructure and do it right and you can generate jobs and boost economic growth. Improving sanitation and access to clean water is essential to improve health outcomes. 
 
According to World Bank President Jim Yong Kim, “Today, the developing world spends about $1 trillion on infrastructure, and only a small share of those projects involves private actors. Overall, private investments and public-private partnerships in developing countries totaled $150 billion in 2013, down from $186 billion in 2012. So it will take the commitment of all of us to help low- and middle-income countries bridge the massive infrastructure divide.”
 
Public-private partnerships (PPPs) can be an important way for governments to help supplement the role of the public sector in meeting the infrastructure deficit.  But PPPs are controversial – there have been some high profile, expensive failures, and some stakeholders feel the private sector should not be involved in providing basic infrastructure services like water. 
 

Rebuilding trust in governments through Open Contracting

Luis Vélez Pretelt's picture


Building trust between citizens and governments is crucial to successfully address, in a collaborative and engaged manner, many of the issues that affect the everyday lives of citizens, like corruption, government inefficiency and lack of service delivery.

Recent data, however, has shown that trust between citizens and governments ranks low.

In fact the 2015 Edelman Trust Barometer stated that the number of “truster countries” are at an all-time low, reflecting a general decline of people’s trust in institutions of governments, NGOs, business and media.

Breaking the cycle of poor public service performance

Hana Brixi's picture
Photo: Dana Similie / World Bank


The Middle East and North Africa (MENA) is a rising middle-income region, and its citizens rightly expect quality public services. Yet too often they experience disappointment: students attending local schools are insufficiently prepared for the 21st century economy, and those needing health care too often find public clinics with no doctors or medicines.

Few in positions of authority are held accountable for such shortcomings. This situation both undermines the potential for improvement and heightens people’s unhappiness with the delivery system.

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Tomorrow’s world: seven development megatrends challenging NGOs
The Guardian
As we move into 2015, many UK-based NGOs are wondering how to meet the challenges of a crucial year. What is the unique and distinct value that each organisation, and the UK sector as a whole, brings to international development, and how might this change in future? To help the sector get on the front foot we have identified seven “megatrends” and posed a few questions to highlight some of the key choices NGOs might need to make. At the end of next week we’ll be concluding a consultation with DfID on the future of the sector – all your thoughts are welcome.

Why emerging markets need smart internet policies
Gigaom
The Alliance for Affordable Internet (A4AI) has released its latest study into, well, the affordability of internet access. The study shows how big the challenge is on that front in emerging markets – for over two billion people there, fixed-line broadband costs on average 40 percent of their monthly income, and mobile broadband costs on average 10 percent of their monthly income. The United Nations’ “affordability target” for internet access is five percent of monthly income, so there’s clearly a ways to go in many developing countries. Almost 60 percent of global households are still unconnected and, unsurprisingly, those who can’t afford to get online tend to be poor, in rural communities and/or women.

Unveiling the value of mobile identity and its role in the digital economy

Mariana Dahan's picture
At the Mobile World Congress in Barcelona last week, topics such as Mobile Identity and Mobile for Development and Inclusion stole the spotlight. Today, it’s becoming clearer that secure digital identities can become the gateways to greater social welfare, more inclusive and transparent government and, of course, economic growth.
 
For its tenth anniversary, the Mobile World Congress had more than 2,100 companies showcasing their innovations in front of record-breaking audiences: over 93,000 attendees from 200 countries. 

The GSM Association (GSMA) also hosted a seminar program to educate conference participants on industry initiatives such as Connected Women programme: a timely undertaking that promotes gender diversity in the telecommunications sector.
 
Mobile identity offers a means of extending access to a vast array of services, such as mobile banking and mobile health, to everyone, particularly those who have been previously marginalized, including women and those living in poverty. The ability to get an identity that is verifiable online is a transformational capability that can grant access to banking, mobile payments and healthcare, as well as transportation and other advanced identity-based digital services.
 
At the most fundamental level, the planning and delivery of economic and social support programs relies on the government’s knowledge of its citizens: who they are, where they live, their social and economic circumstances, and so on. Utilizing mobile devices to register and validate an identity offers a compelling opportunity for governments and businesses to authenticate and then provide access to a broad range of digital services.

Means versus ends: Deconstructing the Sustainable Development Goals and the role of identification

Mariana Dahan's picture
The post-2015 development agenda is being shaped as we speak. The United Nations recently released a report that synthesizes the full range of inputs received from various stakeholders. These inputs, among which the ones from the World Bank Group, are a substantive contribution to the intergovernmental negotiations in the lead up to the September 2015 Summit that will officially launch the new Sustainable Development Goals (SDGs) agenda.

But today, with 17 goals and 169 targets, the SDGs are a big mouthful for the global development community to chew on, let alone to digest. Some see a risk that they will be simply unimplementable.

However, the problem becomes a little more manageable if we reflect on the means towards the goals. Not all of the goals are unrelated. Measures towards some targets can open up new ways to achieve others. 

Consider, for example, target 16.9: By 2030, provide legal identity for all, including birth registration. These are actually two different, though related, targets as explained in the recent working paper by the Center for Global Development. Regardless the modalities to achieve it, the recognition of legal identity – together with its associated rights – is becoming a priority for governments around the world. Although there is no one model for providing legal identity, this SDG would urge states to ensure that all have free or low-cost access to widely accepted, robust identity credentials.[1]

With legal identity – including name, nationality and recognized family relationships – one of the basic human rights set out in the Declaration of Human Rights and the Convention on the Rights of the Child can be achieved and target 16.9 can stand on its own merits.

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