Public Services Delivery

Public Disclosure Authorized PUBLIC SECTOR GOVERNANCE AND ACCOUNTABILITY SERIES Public Disclosure Authorized PUBLIC SERVICES DELIVERY Edited by ANWAR SHAH Public Disclosure Authorized Public Disclosure Authorized PUBLIC SERVICES DELIVERY Introduction to the Public Sector Governance and Accountability Series Anwar Shah, Series Editor A well-functioning public sector that delivers quality public services consistent with citizen preferences and that fosters private market-led growth while managing fiscal resources pru- dently is considered critical to the World Bank’s mission of poverty alleviation and the achievement of Millennium Development Goals. This important new series aims to advance those objectives by disseminating conceptual guidance and lessons from practices and by facilitating learning from each others’ experiences on ideas and practices that promote responsive (by matching public services with citizens’ preferences), responsible (through efficiency and equity in service provision without undue fiscal and social risk), and accountable (to citizens for all actions) public governance in developing countries. This series represents a response to several independent evaluations in recent years that have argued that development practitioners and policy makers dealing with public sector reforms in developing countries and, indeed, anyone with a concern for effective public governance could benefit from a synthesis of newer perspectives on public sector reforms. This series distills current wisdom and presents tools of analysis for improving the efficiency, equity, and efficacy of the public sector. Leading public policy experts and practitioners have contributed to the series. The first seven volumes in the series (Fiscal Management, Public Services Delivery, Pub- lic Expenditure Analysis, Tools for Public Sector Evaluations, Macrofederalism and Local Finances, International Practices in Local Governance, and Citizen-Centered Governance) are concerned with public sector accountability for prudent fiscal management; efficiency and equity in public service provision; safeguards for the protection of the poor, women, minori- ties, and other disadvantaged groups; ways of strengthening institutional arrangements for voice and exit; methods of evaluating public sector programs, fiscal federalism, and local finances; international practices in local governance; and a framework for responsive and accountable governance. Fiscal Management Macrofederalism and Local Finances Edited by Anwar Shah Edited by Anwar Shah International Practices in Local Public Expenditure Analysis Governance Edited by Anwar Shah Edited by Anwar Shah Tools for Public Sector Evaluations Citizen-Centered Governance Edited by Anwar Shah Matthew Andrews and Anwar Shah PUBLIC SECTOR GOVERNANCE AND ACCOUNTABILITY SERIES PUBLIC SERVICES DELIVERY Edited by ANWAR SHAH THE WORLD BANK Washington, D.C. ©2005 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org E-mail: [email protected] All rights reserved 123408070605 The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the Executive Directors of the International Bank for Reconstruction and Development / The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank con- cerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting por- tions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development / The World Bank encour- ages dissemination of its work and will normally grant permission to reproduce por- tions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978- 750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW,Wash- ington, DC 20433, USA; fax: 202-522-2422; e-mail: [email protected]. ISBN-13: 978-0-8213-6140-5 ISBN-10: 0-8213-6140-6 eISBN: 0-8213-6141-4 DOI: 10.1596/978-0-8213-6140-5 Library of Congress Cataloging-in-Publication Data Public Services Delivery / edited by Anwar Shah. p. cm. — (Public sector governance, and accountability series) Includes bibliographical references and index. ISBN 0-8213-6140-6 (pbk.) 1. Government productivity—Evaluation. 2. Public administration—Evaluation. 3. Municipal services—Evaluation.4.Medical care—Evaluation.5.Education—Evaluation.6. Public welfare—Evaluation. 7. Infrastructure (Economics)—Evaluation. I. Shah, Anwar. II. World Bank. III. Series. JF1525.P67M43 2005 361.6'068'4—dc22 2005043246 Contents Introduction to the Public Sector Governance and Accountability Series ii Foreword ix Preface xi Acknowledgments xiii Contributors xv Abbreviations and Acronyms xxi Overview xxiii by Anwar Shah CHAPTER Issues Associated with the 1 Implementation of Governmentwide Perfor- mance Monitoring 1 by Alasdair Roberts Current Efforts at Governmentwide Performance Monitoring 4 Difficulties in Execution 11 Prospects for Governmentwide Performance Planning 23 Annex 1.A: Outcome Measures in the Oregon Plan 30 Annex 1.B: Outcome Measures in the Florida Plan 31 v vi Contents Annex 1.C: Outcome Measures in the Alberta Plan 34 Annex 1.D: Outcome Measures in the Nova Scotia Plan 35 Annex 1.E: Draft Outcome Measures for the Canadian Government 37 2 A Simple Measure of Good Governance 39 by Jeff Huther and Anwar Shah Measuring Governance Quality 40 Impact of Fiscal Decentralization on Governance Quality 46 Quality of Governance and Decentralization 52 Conclusion 54 Annex 2.A: Sources and Quality of Data and Explanations Regard- ing Development of Component Indexes 57 Annex 2.B: Composite Indexes 60 3 Assessing Local Government Performance in Develop- ing Countries 63 by Matthew Andrews and Anwar Shah Evaluation Criteria 64 Evaluating Conformance to Legislation and Process 65 Evaluating Responsiveness 72 Evaluating Efficiency 75 Evaluating Accountability 77 Conclusion 80 4 Results Matter: Suggestions for a Developing Country’s Early Outcome Measurement Effort 85 by Harry P. Hatry What Is Outcome Measurement? 85 Why Measure Outcomes? 86 Obstacles to Outcome Measurement in Developing Countries 86 Basic Steps in Implementing an Outcome Measurement Process 88 Basic Outcome Measurement Procedures and Their Costs 93 Contents vii Measurements of Extent of Corruption 98 Measurements of Response Time 99 Data Quality Control 100 Using Outcome Data 100 Final Note 102 Annex 4.A: Household Questionnaire 103 Annex 4.B: Trained Observer Procedures 107 Annex 4.C: Examples of Performance Indicators for Tracking Anticorruption Efforts 112 5 Delivering Local/Municipal Services 117 by Harry Kitchen Public Sector Alternatives 117 Private Sector Provision 128 Public-Private Partnerships 139 Summary 145 6 Assessing the Performance of Health Services in Reaching the Poor 153 by Agnes Soucat, Ruth Levine, Adam Wagstaff, Abdo S. Yazbeck, Charles C. Griffin, Timothy Johnston, Paul Hutchinson, and Rudolf Knippenberg Channeling Resources to the Poor 156 Reaching the Poor: Equity of Coverage for Interventions Address- ing the Needs of the Poor 162 Equity and the Impact of Health Sector Financing 178 Conclusion 185 7 Measuring Public Sector Performance in Infrastructure 193 by Hadi Salehi Esfahani The Nature of the Problem 195 Choosing Performance Indicators 196 Evaluating Performance 206 Conclusion 207 viii Contents FIGURES 4.B.1 Trained Observer Rating Scale 111 6.1 PRSP Framework—Determinants of Health Outcomes 154 6.2 DALYs Lost per 1,000 Population by Cause 158 6.3 Eight Steps to Effective Coverage for the Poor 163 TABLES 2.1 Components of Governance Index 41 2.2 Ranking of Countries on Governance Quality 44 2.3 Governance Index Correlation Coefficients 45 2.4 Correlation of Subnational Expenditures with Governance Quality Indicators 48 2.5 Omissions from Original Indexes 54 4.1 Outcome Indicators for Elementary and Secondary School Systems 88 4.2 Outcome Indicators for Youth Welfare 89 4.3 Outcome Indicators for Solid Waste Collection 91 4.B.1 Toronto Road Condition Rating Scale 110 5.1 Private versus Public Sector Delivery in Canada 131 6.1 Sources of Data for Assessing Coverage 164 6.2 Example of Determinants of Coverage with a Core Package of Activities 165 6.3 Summary of Major Questions to Be Answered in a Health Financing Assessment 185 7.1 Examples of Performance Measures for Power Infrastructure 198 7.2 Examples of Performance Measures for Telecommunications Infra- structure 199 7.3 Examples of Performance Measures for Transportation Infrastructure 200 7.4 Examples of Performance Measures for Water Infrastructure 201 7.5 Examples of Performance Measures for Sanitation Infrastructure 202 Foreword In Western democracies systems of checks and balances built into government structures have formed the core of good governance and have helped empower citizens for more than

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