Actionable Governance Indicators
(AGIs)
Presentation to the
Public Sector Governance Board (PSGB)
November 8, 2007
The World Bank
Contents
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Why?
What?
How?
Who?
When?
The World Bank
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Contents
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Why?
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"Effective implementation, including
further development of actionable and
disaggregated indicators, will now be
critical to achieving the GAC strategy's
desired results. In this context, we
welcomed the agreed Board
engagement and oversight during
implementation."
–Development Committee Communiqué,
Washington, DC, 15 April, 2007
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Actionable Governance Indicators
are the “Missing Middle”
Inputs and outputs
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Bank operations consistently track
project inputs and outputs
A growing number of Bank
operations and client countries have
begun to track program and policy
outputs
The Missing Middle:
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Direct impacts of institutional
reform efforts on how each
of the major aspects of
governance actually
functions
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Outcomes
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Many agents, both Bank and
others, have over the last decade
or so developed and begun
tracking policy outcomes (TI,
WGI, Freedom House, Global
Integrity Index)
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They capture institutional
arrangements, procedures
and, most importantly,
practices within each of the
five major aspects of
governance, for example:
•WB examples include PEFA,
CPIA and DB sub-indicators
•Other examples include Global
Integrity sub-indicators, Open
Budget Index sub-indicators,
OECD procurement index
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AGIs Are Actionable
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Actionability implies greater clarity regarding the
steps governments can take to improve their score
on an indicator
Actionability requires that indicators have narrow
and explicit definitions
Narrow and explicit definitions not only facilitate
actionability, but also contestability of indicators,
permitting meaningful discussion regarding the
appropriateness of any given rating
Objective vs. subjective, or perceptions-based vs.
experience-based, are not critical distinctions for
“actionability”
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AGIs Capture Governance
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Indicators should capture institutional arrangements,
procedures and practices of one or more of the five
broad aspects of governance emphasized in much of
the Bank’s work on governance:
• Effective public sector management
• Decentralization and local participation
• Political accountability
• Checks and balances
• Civil society, media and the private sector oversight and
input into public sector activities and decision-making
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Monitoring for Results
A Typology of Available Governance Indicators
Measuring Quality of Processes,
Rules, Practices
Specific
Measures
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Broad
Measures
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PEFA indicators*
CPIA sub-indicators*
Global Integrity Index (GII) subindicators*
Open Budget Index (OBI) subindicators*
OECD Procurement Index*
Doing Business
Overall CPIA*
Overall GII*
Overall OBI*
Overall DB Index*
Polity IV (executive constraints)*
Sources: *Expert assessments
**Surveys
Measuring Outcomes
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Investment Climate Assessments**
Business Environment & Enterprise
Surveys (BEEPS)**
Worldwide Governance Indicators
(WGI) - selected subindicators)***
Transparency International***
WGI***
Freedom House*
***Combination
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Use aggregate governance indicators to indicate
extent & mix of governance problems
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Use actionable governance indicators to monitor
progress in implementing priority GAC reforms
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Frontier challenge:
Improve menu of AGIs
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Monitoring Progress
vs.
Comparing Across Countries
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Dialogue with governments in relation to public
sector reform
• Comparative position
• Tracking changes over time
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Ideally both, but not always welcome by the
client or feasible due to other reasons, e.g.
•
•
•
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CPIA - IDA vs. IBRD
Difficulty with release of PEFA scores and reports
Scaling up HRM indicators
Country specifics vs. comparability
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Contents
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What?
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Different Dimensions of Good Governance
Are Measured Differently
Citizens/Firms
Political Accountability
• Political competition, broad-based political parties
• Transparency & regulation of party financing
• Disclosure of parliamentary votes
• Independent,
effective judiciary
• Legislative oversight
(PACs, PECs)
• Independent
oversight institutions
(SAI)
• Global initiatives:
UN, OECD
Convention, antimoney laundering
Effective Public
Sector Management
• Ethical leadership: asset
declaration, conflict of
interest rules
• Cross-cutting public
management systems:
meritocracy, public
finance, procurement
• Service delivery and
regulatory agencies in
sectors
Civil Society & Media
• Freedom of press, FOI
• Civil society watchdogs
• Report cards, client surveys
Private Sector Interface
• Streamlined regulation
• Public-private dialogue
• Extractive Industry
Transparency
• Corporate governance
• Collective business
associations
Citizens/Firms
Citizens/Firms
Checks & Balances
Decentralization and Local Participation
•
•
•
•
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Decentralization with accountability
Community Driven Development (CDD)
Oversight by parent-teacher associations & user groups
Beneficiary participation in projects
Citizens/Firms
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Different Dimensions of Good Governance Are
Measured Differently (examples of existing AGIs)
Citizens/Firms
Political Accountability
• Political competition, broad-based political parties
• Transparency & regulation of party financing
• Disclosure of parliamentary votes
PSG public acc. indicators
Public official surveys
Global Integrity Index
Freedom House indicators
Afro/Latino/AsiaBarometer
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Different Dimensions of Good Governance Are
Measured Differently (examples)
PSG public acc. indicators
Human rights database
Reporters Without Borders
Media sustainability index
Civil Society & Media
Private Sector Interface
• Streamlined regulation
• Public-private dialogue
• Extractive Industry
Transparency
• Corporate governance
• Collective business
associations
Citizens/Firms
• Freedom of press, FOI
• Civil society watchdogs
• Report cards, client surveys
Doing Business sub-indicators
BEEPS
ICA and accompanying surveys
Business Risk Service
TI index
Global Competitiveness index
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Different Dimensions of Good Governance Are
Measured Differently (examples of existing AGIs)
PER and PETS
PEFA (e.g. PEFA8)
QSDS
Score cards
Decentralization and Local Participation
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•
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Decentralization with accountability
Community Driven Development (CDD)
Oversight by parent-teacher associations & user groups
Beneficiary participation in projects
Citizens/Firms
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Different Dimensions of Good Governance Are
Measured Differently (examples of existing AGIs)
LEG.: RoL and human rights ind.
PEFA
TI perception index
Global Integrity indicators
Open Budget Initiative
Citizens/Firms
Checks & Balances
• Independent,
effective judiciary
• Legislative oversight
(PACs, PECs)
• Independent
oversight institutions
(SAI)
• Global initiatives:
UN, OECD
Convention, antimoney laundering
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Different Dimensions of Good Governance Are
Measured Differently (examples of existing AGIs)
PSG public acc. indicators
PSG country-specific projects
Score cards
PEFA
Global Integrity index
OECD procurement indicators
Effective Public
Sector Management
• Ethical leadership: asset
declaration, conflict of
interest rules
• Cross-cutting public
management systems:
meritocracy, public
finance, procurement
• Service delivery and
regulatory agencies in
sectors
The World Bank
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Examples
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PEFA
Decentralization AGIs
HRM AGIs
Public Accountability Indicators
Global Integrity Indicators
OECD Government at a Glance
PSG Governance at a Glance
OECD Procurement Indicators
PSG Support to Indicators Projects
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PEFA
• 31 high-level indicators measuring performance
of PFM systems (28 Performance Indicators + 3
for Donor Practices)
• A performance report based on the indicators
• Used in around 75 countries and by 19 donors
(WB+EC=80%)
• Common pool of information to promote country
leadership, coordinated and aligned donor
support = the Strengthened Approach
• Unfortunately, only a small number of reports
are publicly available through websites – WB and
EC have promised to take action, with little
results so far
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Decentralization AGIs (examples)
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Local Fiscal Monitoring
• Indonesia’s Fiscal Information System (SIKD), Village Finance Statistics
• South Africa’s Periodic Intergovernmental Fiscal Review
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Intermediate PFM Benchmarking
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Public Expenditure Tracking Surveys (PETS) (e.g., Uganda)
Sub-National Public Expenditure and Financial Accountability (PEFA)
Performance Indicators (e.g., Bosnia, Indonesia)
Brazil’s “Random” Public Audits for Municipalities Assigned by Lottery
SN Credit Ratings
Other Process Indicators
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Public Integrity Indicators (e.g., Colombia, Turkey)
World Bank Institute (WBI) Surveys – corruption diagnostics
India’s Bangalore Citizen Score Cards – implemented in all Indian states
Indonesia’s Evolving Local Governance “Platform” Monitoring
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Governance & Decentralization Surveys (2002, 2004, 2006)
National Household Survey (SUSENAS) significant at district level
Colombia ¿Como Vamos? (How Are We Doing?)
Turkey Municipal Performance Measurement Project (BEPER)
Australia’s Productivity Commission
On-Going Surveys in China…
Bottom line: While “decentralized” PFM AGIs are widely used and
relatively well defined, the work on decentralization AGIs outside of
The World
Bank
PFM
is lagging
and needs a boost.
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HRM AGIs
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Global Integrity sub-indicators on HRM issues
(40+ countries in 2006, 55 in 2007)
• Depoliticization
• Ethical conduct
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Country-specific HRM indicators
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Fiscal sustainability of the wage bill
Depoliticization
Attracting and retaining required human capital
Merit-based, performance-oriented HRM practices
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Public Accountability Indicators
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Legal and institutional frameworks as of July 2006 for Asset
Disclosure, Conflict of interest, Freedom of Information, and
Immunity
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78 Countries (53 IDA) from 5 continents
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Demand:
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CASs
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Presentations and evaluations in ECA for Ukraine, Turkey,
Bulgaria, Macedonia, Georgia, Moldova
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Monitoring progress of Mauritania, Vietnam, Uganda & Kenya
Possible products that PSG could market
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Cross-country comparative database available on the web
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Laws and regulations
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Analysis of the strengths & weaknesses
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Indicators
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Methodological guidelines including international best practice
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PREM Note & Other Publications including working papers
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Global Integrity Index
The Global Integrity Index (GII)
assesses the existence and
effectiveness of anti-corruption
mechanisms that promote public
integrity. Prepared by a lead
researcher in the country and then
blindly reviewed by additional incountry and external experts, the
Integrity Indicators assess the
existence of laws, regulations, and
institutions designed to curb corruption
but also their implementation, and the
access that average citizens have to
those mechanisms. In 2006 GII was
calculated for 40+ countries (55
countries in 2007). All information and
Global Integrity Country Reports are
available on-line.
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Unbundling GII:
Overall Index
Government Accountability
(1 of 6 major categories)
Executive Accountability
(1 of 23 sub-categories)
Conflict of interest rules for
executive branch
(1 of 75 questions)
Asset disclosure
requirement for executive
branch
(1 of 290 sub-questions)
OECD Government At A Glance
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OECD currently developing a comprehensive database on
disaggregated governance indicators 'Government At A Glace‘.
First dataset will be released in 2009.
• The tool will be administered by countries themselves.
• The dataset intended to provide insights into sector-level efficiency
and institutional effectiveness, observed relationships among
process and outcomes, and absorptive capacity of governments
• The dataset will measure variables along six categories across
sectoral boundaries
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Revenues
Inputs
Processes
Outputs
Outcomes
Antecedents or constraints
• Use existing indicators to the extent available, and develop new
indicators in some areas such as Central Government Revenues,
Budgetary Quality, HRM Indicators, and Management and
Regulatory Quality
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OECD Working paper is a comprehensive survey of existing
indicators. 3 technical papers on framework for project, output
measures, and outcome measures have been released.
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PSG
‘Governance
at a Glance’
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OECD Procurement Indicators
Pillar 1: Legislation
Pillar 2: Central institutional capacity
Pillar 3: Capacity to execute
procurement
Pillar 4: Integrity and transparency
of the procurement process
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PSG support to indicators projects
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Grants
• Global Integrity
• AfroBarometer, Asian Barometer
• Gallup International
• OECD Budget Practices Database
• BNPP-funded regional initiatives
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Technical assistance
• Global Integrity
• AfroBarometer, Asian Barometer
• African Governance Indicators (UNECA)
• PEFA
• Legal Dept.: rule of law and human rights indicators
• Doing Business (annual peer review)
• Worldwide Governance Indicators (incl. support for data sources)
• CPIA (content, and reviews of ratings)
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Contents
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How?
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Two-Pronged Approach to
Increasing the Use of AGIs
1.
Ramp up usage of existing PSG
AGIs in the Bank’s work
• Better package available AGIs
resources - make them more
accessible and user-friendly
• Encourage systematic application
of already developed and tested
AGIs to operational work in order to
achieve quick and easy wins
2.
Develop new AGIs resources
• Develop and test new AGIs for
cross-cutting governance
dimensions
• Support and encourage development
of governance AGIs in sectors
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Σ (1,2) =
development
of an AGI
toolkit(s)
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Ramp-up Usage of Existing AGIs
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User-friendly “map” of available AGI via web-site with drill-down
menus that includes
• Purposely PSG AGIs (e.g. PEFA, Open Budget indicators, GII, DAC OECD,
PSG transparency and public acc. indicators, etc.) and
• AGIs developed by others sectors (e.g. governance aspects of DB, Business
Environment Snapshots, firm/enterprise surveys, etc.)
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Promote use of PEFA and other well-developed, tested and easy
adoptable "sets" or AGIs through
•
•
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•
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Development of user-friendly AGI website
Learning events, BBLs, etc.
One-on-one work with task/country teams
CAS review process.
Offer help/guidance on how to systematically apply sets of AGIs in
various upcoming regional products (CASs , DPLs, SIL/TAL)
Create a “PSG actionable governance indicators team” of experts
in specific indicator areas willing to advise, advocate and disseminate
practical use of AGIs at country, CAS and project levels.
Inventory Bank’s use of AGI in CASs and Projects
• To systematically document the limitations of existing approaches to
monitoring PSG impacts
• To show (with examples) why and how the use of “mapped” AGIs could help
the WB teams to improve quality of Bank PSG interventions
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The PEFA Experience
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Current challenges
• Measuring progress over time: still a promise
• How to enhance publication of reports and accessibility of
data?
• How to use the Framework as a capacity building tool and
also respond to donors’ fiduciary concerns?
• How to monitor increased use at sub-national and sector
levels (baby-PEFA, PEFA-like indicators) and development
of drill-down indicators (DePMA, OECD-DAC procurement,
audit standards gap analysis, etc.)?
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Lessons/needs
• Need for a strong back office support
• Need for training, dissemination and marketing strategies
• Need to bring meaning to indicator ratings and monitor
impact towards a Strengthened Approach to PSG
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Develop and test new AGI resources
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Areas where new AGIs are seen to be most needed
• ACSR
• Decentralization (beyond fiscal)
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Proposed AGI collection tools
• PEFA-like indicators and data collection methods
• Expert surveys/polls
• Household surveys (via “Barometers”, Global Gallop Poll)
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Some pilots are already under development
• Timely, targeted indicators (e.g. LCR-led initiative on Bank-paid
consultants);
• Web-based instrument for HRM and policy management
• Country-specific HRM AGIs
• Support to sector-based initiatives, e.g.
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Indicators in health and education (in the context of harmonization
of PETS methodologies, initiated by AFR region)
Work on AGIs in Bangladesh and Mauritania in transport/
procurement and public works sectors amongst others
Governance diagnostics in Mali on transport and energy, and
possibly later on financial sector strive to come up with some
indicators in these sectors which can be monitored over time
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Issues, Challenges and Priorities
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Issues
• To get countries and country teams to collect these indicators
and actually use them in their operations to monitor progress
in governance reforms
• More operational utility is not in cross-country comparison, but
in tracking progress in specific reform areas in a country,
although for newly developed indicators there is a very high
return in
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Challenges
• Build a community of practice on indicators so staff are aware
of who exists and good operational practice in how to use
them
• Encourage our country partners to implement and publish the
indicators in their country, i.e. greater public disclosure of
these indicators
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Priorities
• Provide aggressive training and guidance to country teams
• Improve web-access to AGIs
• Cover gaps in the areas of HRM/PSM, sub-national governance
and governance of service delivery in sectors
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Contents
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Who?
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Different tasks
PSG anchor
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•
•
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Marketing of existing AGIs
Development of limited number of new AGIs in HRM and
decentralization
“Help desk” and advisory team
Clearinghouse
Work with selected regional PSG and sectoral teams on
development of demand driven AGIs (country-specific and
with cross-country applicability)
PSGB members/regional PSG Sector Managers
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•
•
Promote use of AGIs in their units' products and operations
Help to identify activities (projects, CASs) for scaling up
usage of AGIs
Governance Secretariat
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•
•
Work at the RVP level
Encourage scaling up of the AGI work in other sectors
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The Role of the Governance Secretariat
The Governance Secretariat will support a Governance Council (GC)
which is scheduled to be formally launched by the President on
December 6, 2007. The GC will consist of high-level management from
the Regions and Networks and other units to oversee GAC
implementation, and will be Chaired by the responsible MD.
The Governance Secretariat would:
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Inform RVPs that PRMPS is working to mainstream use of
existing and tested AGIs in CASs and relevant operations
Encourage other SBs to identify (or develop when necessary)
AGIs capable of monitoring the governance dimensions of
progress in their sectors
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Expected results – a collection/list of sector specific AGIs that
may be not "PSG" in the narrow sense (e.g. actual vs. contract
quality of pavement materials, teacher absenteeism, etc.)
This list will be featured as a part of the AGIs web-site and
regularly updated
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Contents
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When?
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FY08 Deliverables
PAG AGI team created
Dec. 2007
Regional activities for scaling-up
AGIs use selected
Public Accountability Indicators
Dec. 2007
• documents (laws, regulations, etc)
• ratings
Learning events (first clinic)
Web-based HRM tool
• developed
• pilots
AGI Web-site becomes operations
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Jan. 2008
April 2008
Jan. 2008
Feb. 2008
April 2008
May 2008
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Thank You
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Issues for Discussion
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How can we enhance engagement with regional
and sectoral staff?
What countries/activities do you suggest as
pilots?
Monitoring vs. cross-country comparison or
how to reach a balance between the two?
Are decentralization and HRM the most needed
sets of AGIs?
How best to divide responsibilities among
anchor, PSG groups in regions and the
Governance Secretariat?
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