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Demand for Good Governance

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Demand for Good Governance

The East Asia and Pacific (EAP) Region has experienced rapid economic growth and social change, but governance remains a significant challenge. Despite its heterogeneity, the Region is dealing with cross-cutting issues like poor delivery of basic services, mismanaged expenditure efficiency, weak public institutional accountability, and lack of oversight institutions and mechanisms. Some EAP countries have recently gone through important transitions ― toward democracy, decentralization, and parliamentary oversight ― but the concepts of downward accountability and constructive engagement with civil society are still relatively new. In this context, enhancing citizens’ engagement in development and governance processes is emerging as a common priority throughout the Region. To address the need for increased demand-side engagement, the EAP Social Development has been promoting the use of social accountability measures in World Bank-supported operations in the EAP Region in order to improve the performance of key government reforms, strengthen public governance, improve the quality of public services, and empower poor people to participate in development processes in poverty reduction efforts.

Topic Overview

governancepicIn countries where public administration struggles with basic service delivery, development efforts require systematic engagement with a broad range of stakeholders to make service delivery work for the poor. Critical among these stakeholders are various kinds of NSAs such as civil society organizations, non-governmental organizations (NGOs), think tanks, community organizations, and the media. A growing number of global case studies show that both state and society are best strengthened by establishing mechanisms that allow governments and NSAs to work constructively with each other, thus creating a positive feedback loop that can lead to improvements in governance and development effectiveness in the short, medium and long terms. In countries of the EAP region, where efforts are being made to increase constructive engagement between governments and civil society, NSAs can help promote greater awareness of development programs, enhance their transparency, and make them more responsive to the needs of citizens.

Conceptually, DFGG and social accountability refer to the extent and ability of citizens and other non-state actors (NSAs) to enhance their voice and hold the state accountable, making it responsive to their needs. In turn, DFGG enhances the capacity of the state to become more transparent, accountable and responsive to citizens. Traditionally, initiatives to improve governance have focused on the “supply side,” namely the strengthening of public financial management and public administration. While supply-side efforts are necessary, broader and more lasting results may only be achieved if complemented by measures that strengthen the demand for good governance (DFGG).

Given this conceptualization of DFGG, operationalizing DFGG is a process, which has four key elements:

1. Promotion of demand. The ability of citizens, civil society, and other non-state actors to demand better governance depends on their access to information, and the degree to which they can act effectively on this information. Thus, DFGG depends on the following:

(a) Disclosure of information – the level of transparency of the government (regarding budgets, expenditures, programs, etc.);
(b) Demystification of information – strengthening the level of awareness and understanding of citizens (on laws, rights, budgets, policies, etc.); and
(c) Dissemination of information – spreading information (related to governance issues, processes, finances, laws, etc) to the ordinary public.

In promoting demand, these three “Ds” should be followed by a “C” – collective action – which would encompass mobilizing broader action and advocacy around this information. Accordingly, initiatives such as freedom of information, awareness campaigns, rights education, and media programs that promote demand are the first element of DFGG.

2. Mediation of demand. While mobilizing demand through advocacy and information dissemination are important, these elements only become effective through mediation and institutionalized feedback to the state. Thus, strengthening DFGG also involves (a) creation and strengthening of avenues for feedback of citizens and civil society to public officials; (b) encouraging consultation of these actors in decision making and public actions of executive agencies; as well as (c) formal and informal mechanisms for dispute resolution through initiatives such as interface meetings between citizens and public officials, grievance redress, and ombudsmen.

3. Response to demand. After mediation comes response, without which demand alone would remain powerless and non-credible and result in unmet expectations. Thus, institutionalizing DFGG includes developing programs and initiatives within the executive that respond to demand either through (a) innovations in service delivery, (b) response-based performance incentives, or (c) participatory action planning.

4. Monitoring to inform demand. Finally, the process of regular monitoring and oversight of the public sector by non-executive actors, such as the parliament, the media, and civil society, could take the form of (a) participatory monitoring (using citizen feedback surveys of government performance, social audits, media investigations, etc.); (b) independent budget and policy analysis; and (c) formal oversight mechanisms (parliamentary committees, vigilance commissions, etc.). These generate key information for the executive, civil society, and ordinary citizens which feeds back into the process of promoting DFGG – thus completing as well as continuing the cycle (Figure 1).

Figure 1 Four Core Elements of DFG

Governance

The above definition of DFGG has an important implication – it means that the institutions that strengthen DFGG can be both government and non-state institutions. It is commonly understood how non-state institutions can promote, mediate, respond to, or monitor DFGG. However, a state-run broadcasting corporation involved with disseminating information about public programs and budgets, and providing feedback of citizens to public officials is also promoting demand. Likewise, ombudsman offices, vigilance commissions, and grievance redress mechanisms in line agencies are also mediating demand. Moreover, the response function of DFGG is something that is most often only provided through the state executive. What matters for strengthening DFGG under this project is therefore what an institution does rather than where it is situated 

A growing body of international experience shows that DFGG approaches, which call for disclosure, demystification and dissemination of information, empower citizens to demand good governance through a range of feedback avenues, leading to improvements in governance and service delivery. Similarly, community participation in monitoring of public expenditures, service delivery, and government performance goes a long way toward making governments more responsive and accountable to citizens. As a result,a growing number of citizens’ initiatives throughout the Region are applying and promoting approaches toward building accountability that rely on civic engagement. Examples of social accountability tools and methods, case studies, and related readings can be found here. Please visit the Social Development-DFGG website for more information about the corporate level DFGG activities and vision. 

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Sample of DFGG Initiatives in EAP

The EAP Region is characterized by many successful citizen and civil society-based demand-side initiatives as well as by an increasing number of World Bank-financed operations that include strong demand-side elements. Notably, Indonesia, Vietnam, the Philippines, Mongolia, Pacific Islands, and Cambodia showcase a number of interesting examples of DFGG initiatives in their current country portfolios.

In Indonesia, projects across sectors have come up with innovative DFGG elements. Kecamatan Development Program (KDP) in Indonesia, one of the largest World Bank financed CDD projects, is based on principles of community participation, transparency, and accountability. The Urban Poverty Program (UPP), which distributes $150 million annually in Bank and government funding across Indonesia, has successfully harnessed Internet and mobile phone technology to enhance project monitoring, transparency, and overall effectiveness.  The Public Expenditure Analysis and Capacity Harmonization (PEACH) program has been launched in six provinces (Papua, Gorontalo, Maluku, NTT, NTB, and Aceh) to provide technical assistance to committed provincial and district governments in Indonesia, in order to improve their public spending capacity and therefore the overall quality of services they deliver. Community contracting and procurement has been introduced in the country portfolio to help local communities improve their capacity to plan, implement and evaluate civil works and procurement projects, and to manage funds. This leaves villages, and Indonesia as a whole, more prepared to conduct development projects, such as those included in the National Program for Community Empowerment. 

In Vietnam, the government launched a development effort known as the “135 Program” to embed community development-driven (CDD) strategies, which involve a market-led approach, in its overall efforts in this area. Since 2000, the Bank has been supporting several CDD parallel projects through investment lending at the local level. These projects involved more local planning to insure the projects responded to local needs and increased community participation in procurement, oversight and monitoring/evaluation of results. Through Social Accountability in Vietnam's Large Infrastructure, technical assistance is provided to government implementing authorities and affected communities to develop, pilot, and replicate effective practices for social accountability in Vietnam's hydropower sector and thereby support the sustainable development of the country's water resources.

In the Philippines, KALAHI Project has trained thousands of villagers in project planning, technical design, and financial management and procurement, thus building a cadre of future leaders at the local level. A Bank-financed Laguna de Bay Institutional Strengthening and Community Participation (LISCOP) project was launched in 2004 to strengthen institutions and community participation in a pioneering system of environmental user fees to fight pollution, and will extend until January 2010. LISCOP launched a public disclosure program to rate industries according to their compliance with standards and disseminate the findings. The public disclosure part of the project publicly shamed the industries that were polluting the Lake, and compelled them to comply with standards. The project’s public disclosure aspects were responsible for upgrading nearly half the open dumps in the Lake area and brought industries into compliance.  

In Mongolia, the Bank has launched initiatives to strengthen demand-side of governance in order to assist Mongolia in generating more sustainable, broadly shared development benefits from its mineral endowment, the first pillar of the new Country Partnership Strategy. The desired outcomes are: (i) public policy making related to the mining sector and public spending becomes more developmentally oriented; (ii) enhanced Parliament capacity to formulate economic and mining policy and to monitor implementation and oversee use of mining revenues; and (iii) strengthened transparency and accountability across the extractive industry value chain.

In the Pacific Region, the Bank partnered with The Diplomat and Australia’s public affairs television channel A-PAC and created the panel discussion series “Praxis” in order to invite an exchange of ideas regarding international development, and to showcase the Bank as a leader on development topics in the Australia-Pacific region. Each month, specialists from different fields (often with different views) are brought together to discuss critical development issues – such as gender disparity, energy production and the global financial crisis – in front of an audience of policy makers, think tank and NGO representatives, academics and members of the private sector. First aired in January 2009, the series is produced as a one-hour package that can be syndicated to broadcast, print, and Web partners, as well as to universities and civil society organizations (CSOs).  

In terms of capacity building at the regional level, the World Bank Institute has supported establishment of the Affiliated Network for Social Accountability in East Asia and the Pacific (ANSA-EAP), with a start-up funding from the Development Grant Facility (Window 2) FY 2008. Launched in February 2008, ANSA-EAP is a regional network promoting the practice of social accountability by providing a common platform for exchange of information and experience and by providing capacity building opportunities and technical assistance to citizen groups and governments. The Ateneo School of Government (ASoG), a unit of the Ateneo de Manila University, operationalizes and oversees the development of ANSA-EAP.

In Cambodia, a comprehensive country-level program for strengthening of demand for good governance (DFGG) has evolved over the past three years as an integral part of the World Bank’s efforts to increase development effectiveness. The Bank prioritized support to demand-side approaches to good governance in the Country Assistance Strategy (CAS) 2005-2008, as an effective complement to its work on the supply side of governance. It has therefore launched its involvement in this area through a series of small-scale activities: a Civil Society Assessment (CSA) which maps the civil society sector and assesses its potential for engagement in DFGG activities; a US $1 million allocation for civil society activities in additional financing through the on-going Rural Infrastructure and Local Governance (RILG) Project to support local governance reforms in the project; an Institutional Development Fund grant to support government-civil society consultations on the legal and policy environment for NGOs and associations; and advice to the Government on the preparation of a policy on public access to information.  

Program to Enhance Capacity in Social Accountability (PECSA), a $1,995,000 Bank executed grant funded from the Low Income Countries Under Stress (LICUS) Trust Fund, was subsequently set up in 2007 to strengthen the capacity of Cambodian civil society to undertake DFGG work. It prepares non-state actors for a productive engagement in development projects by building their capacity to support transparency and accountability in the areas of natural resources management, public financial management, decentralization and private sector development. This capacity still remains a big constraint in promoting non-state actor engagement in the area of DFGG. What PECSA provides therefore are funds and numerous forms of capacity building support such as training, coaching, mentoring, learning by doing and observing, networking, and monitoring and evaluation. Its five components are: (1) Training and Capacity Building, (2) Action-Learning and Tool Development, (3) Leadership, Resource Centre and Networking, (4) Impact Evaluation and Learning, and (5) Project Administration. The strategic purpose of PECSA was also to serve as a precursor to a larger lending operation dedicated to demand side approaches, viz., the DFGG Project.

The DFGG project (USD20 million IDA grant) was designed in response to the recognized need to broaden governance reform by involving different stakeholders and scale up demand side efforts in the country. The project’s development objective is to enhance the demand for good governance in priority reform areas in Cambodia by strengthening institutions, supporting partnerships, and sharing lessons. The institutions supported are those that promote, mediate, respond to, or monitor performance in order to strengthen DFGG. Project activities focus on four priority reform areas identified in the current CAS, i.e., private sector development, management of natural resources, public financial management, and decentralization and citizens’ partnerships for better governance. Over a four-year period (2009-2013), the Project will finance the following three components: (1) Support to State Institutions; (2) Support to Non-State Institutions; and (3) Coordination and Learning. It is an innovative project and credit is due to the Kingdom of Cambodia for asking the Bank to assist in the design and financing of a stand-alone DFGG project. It has become effective in June 2009.

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Resources

DFGG in the Bank

Governance, Civil Society, and Participation

Social Accountability

Participation and Civic Engagement

 

Featured Reports

Stocktaking of Social Accountability Initiatives in the Asia and Pacific Region

Empowering the Marginalized: Case Studies of Social Accountability Initiatives in Asia

DFGG Stocktaking across the World Bank Sectors and Regions

Scaling Up Social Accountability in World Bank Operations

Cambodia: Linking Citizens and the State

Mongolia: The Enabling Environment for Social Accountability

WDR 2004: Making Services Work for the Poor People