South Sudan Governance Analysis (P156685) Public Disclosure Authorized Building sustainable public sector capacity Public Disclosure Authorized in a challenging context January 2017 Public Disclosure Authorized Governance Global Practice Public Disclosure Authorized This report was prepared by a team comprised of Verena Fritz (Senior Public Sector Specialist, GGO27), Museme Munira Issa (Senior Public Sector Specialist, GGO27), Rachel Ort (Public Sector Specialist, GGO27), Bernard Haven (Young Professional, GGO18), Nicolas Collin Dit De Montesson (Consultant, GGO27), and Aisha Musa Ali Wani (Consultant, GGO27). The analysis was task-led by Verena Fritz and Museme Munira Issa. The report was initiated in October 2015 after the signing of the Agreement on the Resolution of Conflict in South Sudan and covers the period until June 2016, prior to the re- emergence of conflict in Juba in July 2016. This task was guided by Renaud Seligmann (Practice Manager, GGO23) and subsequently by Hisham Waly (Practice Manager, GGO27). The team wishes to thank colleagues from the Health GP for their excellent inputs and comments at various stages of the report, including Noel Chisaka (Senior Health Specialist, GHN07), Anne Margreth Bakilana (Senior Health Economist, GHN07), and Carmen Carpio (Senior Operations Officer, GHN13). The team wishes to thank all the interlocutors for their time and the insights and information provided for this study, in particular, Mme Therezine Filbert (Director for Institutional Development, MLPSHRD), James Tipo (Director General for Human Resources Development, MOPSHRD); Mubarak Bol (Director, Directorate Human Resource Management); Patricia Thompson (Director Emeritus, School of Public Service of the University of Juba); Moses Mabior (Director for Aid Coordination, Ministry of Finance and Economic Planning); Dr. Dimitri (Director General for Reproductive Health Services, Ministry of Health); Dr. Kediende (Director General for International Aid Coordination, Ministry of Health); and Dr. Lako (Director General Policy, Planning, Budgeting and Research, Ministry of Health). Disclaimer This report is the product of the staff of the World Bank Group. The findings, interpretations, and conclusions expressed herein are entirely those of the authors and should not be attributed to the World Bank Group or its affiliated organizations, or to members of the Board of Executive Directors of the WBG or the governments they represent. The WBG does not guarantee the accuracy of the data included in this work. i | P a g e Acronyms AU African Union AfDB African Development Bank ARCISS Agreement on the Resolution of Conflict in South Sudan BoSS Bank of South Sudan BPS Budget Preparation System BSI Budget Support Initiative CABIHRD Capacity Building, Institutional and HR Development CANS Civilian Authority of New Sudan CBTF Capacity Building Trust Fund CCSS Coordinating Council of Southern States CHD County Health Department CIDA Canadian International Development Agency CIPS Chartered Institute of Purchasing and Supplies CPA Comprehensive Peace Agreement CPIA Country Policy and Institutional Assessment CSC Civil Service Commission DFID U.K. Department for International Development EDFC Economy, Development and Finance Committee EMIS Education Management Information System EU European Union FCS Fragile and Conflict-affected Situations FMIS Financial Management Information System GATC Government Accounting Training Center GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GoSS Government of South Sudan GRSS Government of the Republic of South Sudan HFSSS High Frequency South Sudan Survey HPF Health Pooled Fund HR Human Resource HRD Human Resource Development HRH Human Resources for Health HRM Human Resource Management HRIS Human Resource Information System HRTC Human Resource Training Center HTI Health Training Institution ICRG International Country Risk Guide ICSS Interim Constitution of Southern Sudan IDCBP Institutional Development and Capacity Building Project IFMS Integrated Financial Management System IGAD Intergovernmental Authority on Development ILO International Labour Organization IMF International Monetary Fund IT Information Technology ii | P a g e JAM Joint Assessment Mission JDO Joint Donor Office KSG Kenya School of Government LGB Local Government Board LGRP Local Government Recovery Programme LGSDP Local Governance and Service Delivery Project LIC Low Income Countries LMIC Lower Middle Income Countries LICUS Low-Income Countries Under Stress MDAs Ministries, Departments, and Agencies MDG Millennium Development Goal MDI Management Development Institute MDTF Multi-Donor Trust Fund MDTF-SS Multi-Donor Trust Fund - South Sudan MMR Maternal Mortality Ratio MoHE Ministry of Higher Education MoFEP Ministry of Finance and Economic Planning MoH Ministry of Health MoI Ministry of Infrastructure MoIB Ministry of Information and Broadcasting MoLPSHRD Ministry of Labor Public Service and Human Resource Development MoRB Ministry of Roads and Bridges MoU Memorandum of Understanding MTCDS Medium-Term Capacity Development Strategy M&E Monitoring and Evaluation NGO Nongovernmental Organization NLA National Legislative Assembly ODA Official Development Assistance OECD Organisation for Economic Co-operation and Development PAC Public Accounts Committee PALAMA Public Administration Leadership and Management Academy PFM Public Financial Management PFMAA Public Financial Management and Accountability Act PHCC Primary Health Care Center PHCU Primary Health Care Unit PPIU Parallel Project Implementation Unit PPP Purchasing Power Parity PROGRESS Project for Good Governance in the Republic of South Sudan RATC Regional Accountancy Training Center RCB Regional Capacity Building RSS Republic of South Sudan SEADGOSS Support to Effective Administrative and Democratic Governance in South Sudan SEG Strengthening Economic Governance SMoH State Ministry of Health iii | P a g e SMoF State Ministry of Finance SPLA Sudan People’s Liberation Army SPLM Sudan People’s Liberation Movement SPLM/IO Sudan People’s Liberation Movement In Opposition SPS School of Public Service SSA Sub-Saharan Africa SSAC South Sudan Audit Chamber SSDP South Sudan Development Plan SSEPS South Sudan Electronic Payroll System TA Technical Assistant TBA Traditional Birth Attendant TGNU Transitional Government of National Unity TVET Technical and Vocational Education and Training UN United Nations UNDP United Nations Development Programme UNFPA United Nations Population Fund UNIDO United Nations Industrial Development Organization USAID U.S. Agency for International Development WHO World Health Organization iv | P a g e Contents Executive Summary ........................................................................................................................ 1 1. Purpose, Scope, and Approach .............................................................................................. 16 1.1 Data and information used and caveats ............................................................................... 17 2. Conceptual Underpinnings and Methodology ....................................................................... 19 2.1 Capacity in the context of conflict and fragility .................................................................. 23 2.2 Public financial management in the aftermath of conflict .................................................. 26 2.3 Restoring and rebuilding health systems in fragile contexts ............................................... 26 3. Key Cross-Cutting Capacity Challenges in the Public Service ............................................. 27 3.1 Country context: Overall dynamics and constraints ........................................................... 27 3.1.1 The public sector and management of political support in South Sudan ..................... 32 3.1.2 Evolution of aid architecture and support to capacity building .................................... 35 3.2 Overview of the public service: Evolving size, distribution and qualifications.................. 39 3.3 Education and the link to public sector capacity ................................................................. 44 3.4 Effective use of potential capacity: Recruitment ................................................................ 46 3.5 Wages and essential resources to carry out assigned functions .......................................... 48 3.6 Strengthening skills in the civil service: training and learning ........................................... 51 3.7 Conclusions and implications.............................................................................................. 56 4. PFM Capacity in South Sudan - Rise, Leapfrog, Crash, and Beyond ................................... 58 4.1 The emergence of PFM capacities - 2005 to 2010 .............................................................. 60 4.2 Capacity strengthening support provided by development partners ................................... 69 4.3 Main causes and symptoms of slippage in capacity since 2012 ......................................... 78 4.4 Conclusions and implications for potential future support ................................................. 79 5. Capacity in the Health Sector ................................................................................................ 81 5.1 Health status ........................................................................................................................ 82 5.2 Structure of the health system ............................................................................................