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For Official Use GOV/PGC(2015)8/ANN1 For Official Use GOV/PGC(2015)8/ANN1 Organisation de Coopération et de Développement Économiques Organisation for Economic Co-operation and Development 01-Jun-2015 ___________________________________________________________________________________________ English - Or. English PUBLIC GOVERNANCE AND TERRITORIAL DEVELOPMENT DIRECTORATE PUBLIC GOVERNANCE COMMITTEE For Official Use Official For GOV/PGC(2015)8/ANN1 Annex to "The Public Governance Review of Costa Rica - Good Governance: From Process to Results Key Findings and Recommendations" 23-24 April 2015 OECD Conference Centre Paris, France This is an annex to "The Public Governance Review of Costa Rica - Good Governance: From Process to Results: Key Findings and Recommendations" Delegates are invited to provide written comments to the paper by the 15th May. Ms. Eva Beuselinck, tel. +33 1-45-24-81-12, email: [email protected] Mr. Martin Forst, tel. +33 1-45-24-91-70, email: [email protected] English JT03377527 Complete document available on OLIS in its original format - Or. English This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. GOV/PGC(2015)8/ANN1 TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS ........................................................................................................ 5 INTRODUCTION ........................................................................................................................................... 8 CONTEXTUALISING PUBLIC GOVERNANCE IN COSTA RICA .......................................................... 9 The rise of a stable and well-performing country ........................................................................................ 9 A changing socio-economic reality ........................................................................................................... 10 Pressure on the political system and the public sector ............................................................................... 10 The way forward ........................................................................................................................................ 13 Bibliography .............................................................................................................................................. 15 ENHANCING CENTRE OF GOVERNMENT CO-ORDINATION CAPACITY ...................................... 17 The Centre of Government as strategic player ........................................................................................... 17 From administrative support to policy co-ordination ............................................................................. 17 Centre of Government anno 2014: vision, leadership and innovation ................................................... 18 Centre of Government in Costa Rica: the institutional set-up ................................................................... 20 Costa Rica's Centre of Government challenges ......................................................................................... 24 Coping with public sector fragmentation ............................................................................................... 25 Co-ordination capacity, roles and responsibilities.................................................................................. 25 Recommendations ...................................................................................................................................... 29 Bibliography .............................................................................................................................................. 31 MONITORING AND EVALUATION AS A TOOL TO BECOME RESULT-ORIENTED ...................... 32 The challenge of being result-oriented....................................................................................................... 32 Legal framework ........................................................................................................................................ 33 Institutional framework .............................................................................................................................. 35 Key actors ............................................................................................................................................... 35 National Evaluation System ................................................................................................................... 35 Foceval ................................................................................................................................................... 39 Current monitoring and evaluation initiatives ........................................................................................... 39 Challenges for the monitoring and evaluation system ............................................................................... 40 Addressing the missing links .................................................................................................................. 40 Strategic use of performance information .............................................................................................. 40 Fine-tuning budget and policy monitoring ............................................................................................. 40 Capacity development ............................................................................................................................ 41 Recommendations ...................................................................................................................................... 41 Bibliography .............................................................................................................................................. 43 STRENGTHENING THE BUDGET FRAMEWORK FOR STRATEGIC PLANNING ............................ 44 From traditional to modern budgeting practices ........................................................................................ 44 Institutional setting..................................................................................................................................... 45 Actors involved in the national budget process ...................................................................................... 45 The institutionally decentralised public sector ....................................................................................... 46 2 GOV/PGC(2015)8/ANN1 Main challenges for budgeting and planning in Costa Rica ...................................................................... 47 High budget rigidities and lack of fiscal space ....................................................................................... 47 Weak fiscal constraint ............................................................................................................................ 48 Budget transparency and accountability ................................................................................................. 50 Insufficient co-ordination of capital budgeting across public institutions ............................................. 52 Recommendations ...................................................................................................................................... 52 Creating and ensuring fiscal space for government priority spending ................................................... 53 Aligning decentralised institutions with government priorities ............................................................. 54 Ensuring fiscal sustainability.................................................................................................................. 55 Bibliography .............................................................................................................................................. 57 SUPPORTING HUMAN RESOURCES MANAGEMENT......................................................................... 58 Public employment: the institutional set-up............................................................................................... 58 Improving data as a foundation of effective and strategic HRM ............................................................... 59 Towards a more merit-based, transparent and sustainable compensation system ..................................... 59 Competency management as foundation for a more strategic HRM in the CSR ....................................... 60 Performance - linking the investment in staff to better service outcomes ................................................. 63 Building institutional and individual leadership for a more coherent and effective CSR .......................... 63 Implementing HRM reforms for improved and sustained performance .................................................... 66 Bibliography .............................................................................................................................................. 67 SUPPORTING INTEGRITY POLICIES AND PUBLIC PROCUREMENT .............................................. 68 Public procurement in the Costa Rican economy ...................................................................................... 68 The institutional anchorage and legal framework of public procurement ................................................. 68 Opportunities to strengthen the institutional
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