Transcript Scaling Up the Bank`s Multi-stakeholder Engagement

Scaling Up
the Bank’s
Multistakeholder
Engagement
Linking the “Demand”
and “Supply” of Good
Governance
Rob Chase and
Andy Norton (SDV)
Social Development Department
The World Bank
Social Development
Department
GAC Strategy & Multi-stakeholder
Engagement
 Guiding Principle #5:

Engaging systematically with a broad range of government,
business and civil society stakeholders is key to GAC reform and
development outcomes – so, consistent with its mandate, the
WBG will scale up existing good practice in engaging with
multiple stakeholders in its operational work, including by
strengthening transparency, participation and third-party
monitoring in its own operations.
 “Multi-stakeholder engagement” ”Demand for
Good Local Governance”
Social Development
Department
“Supply” and “Demand” for governance
Exploring the Analogy
 Supply curve:
 Agent: producer
 Production function:
q = q(technology, inputs)
 Optimization: Given
prices, find profit
maximizing quantity to
produce
 Q = S(P, technology,
inputs)
 More supply at higher
price
Cost,
Price (P)
Supply
Quantity
Social Development
Department
“Supply” and “Demand” for governance
Exploring the Analogy
 Demand Curve
Agent: consumer
 Utility function:
U = U(preferences)
 Optimization: Given prices, find
utility maximizing quantity to
consume
 Q = D(P, preferences, other goods)
 Less demand at higher price
Cost (AC),
Price (P)

Demand
Quantity
Social Development
Department
“Supply” and “Demand” for governance
Exploring the Analogy
 Equilibrium quantity and
price results from supply
and demand intersection
 Changes in quantity
require shifts in either
demand or supply curves,
i.e., changes in other
factors for producers or
consumers
Cost (AC),
Price (P)
Supply
P
Demand
q*
Quantity
Social Development
Department
“Demand for Good Governance”
 Consumers  citizens
 Demand for good governance depends on
citizen’s preferences
 Citizens get maximum utility when they can
decide what (public) goods they want, given
prices and budget constraints
 Transactions to express demand: accountability
mechanisms for local authorities
Social Development
Department
Break-out Groups Discussion Questions
 What “market failures” exist in the interaction
between the supply and demand for good
governance?

What instruments does the World Bank have at its
disposal to correct these market failures?
 What are the elements that shift demand curves?

What instruments does the World Bank have at its
disposal to promote these shifts?
Social Development
Department
Scaling up existing good practice
 Bank already engages with multiple stakeholders
 Strengthening transparency, participation and
third-party monitoring
 Supporting the enabling environment
 Engagement with non-central government actors
 Table 1 gives examples of demand for good
governance work
 http://dfgg gives more examples
Social Development
Department
Participatory Budgeting
 “Participatory prioritization of policies and public
spending”
 Enabling environment: PRSPs
 Broader engagement: participatory budgeting

E.g., Rural poverty reduction project – Rio Grande do
Norte
Social Development
Department
Transparency
 “Strengthening transparency and oversight over
the use of budgetary resources”
 Enabling environment:


E-procurement
Improving quality and transparency of budgets
 Engagement:


Civil society monitoring of procurement
Expenditure tracking surveys
Social Development
Department
User participation and oversight
 Enabling environment:


Reforms to empower users
Eg., INDH Morocco
 Engagement:


Service delivery scorecards
E.g., Uganda
Social Development
Department
Participatory local governance
 Enabling environment:

Intergovernmental reforms to create incentives for
local government to respond to citizens
 Engagement:


Community driven decision-making of local public
infrastructure
Indonesia Kecamatan Development Project
Social Development
Department
Strengthening formal oversight
 Enabling environment:


Publishing income & asset declarations
EG.
 Engagement:


Judicial and public defenders capacity
Eg., Guatemala Judicial Reform Project
Social Development
Department
Summary
 Supply and demand for local governance an evocative
metaphor

Consider supply and demand jointly
 World Bank has extensive experience with supporting the
demand for good local governance


PRSPs
CDD operations
 Innovative pilots and ad-hoc efforts need to be scaled up
and made more systematic