10+ Years of PETS What We Have Learned. Ritva Reinikka The World Bank June 19, 2008
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1 10+ Years of PETS What We Have Learned Ritva Reinikka The World Bank June 19, 2008
2 Principal Agent: Relationships of accountability have five features Delegating Actors (principals) including clients, citizens, policymakers Financing Performing Informing Accountable actors (agents) including policymakers, providers Enforcing 2
3 Why is public spending not equal to good services and outcomes? ipublic spending benefits the better-off rather than the poor -Diagnosed using benefit incidence studies imoney fails to reach frontline service providers -Public expenditure tracking surveys (PETS) ipoor quality services -Quantitative Service Delivery Survey (QSDS) 8e.g., teacher and health worker absenteeism ilack of demand by households 3
4 The ideal situation Policy framework Government program PRSP Sector strategies Budget allocation Outturn Timely disbursements in accordance with established policies and priorities Outputs Impact Outcomes 4
5 A more typical situation Policy framework Govt. program PRSP Sector strategies Unclear policy framework Budget allocation Lack of clarity about how resource allocation relates to policies and priorities - budget not comprehensive - classification system Political economy Nontransparent process - Poor reporting on execution - High level of aggregation - Discretion in allocation Outturn Timely disbursements in accordance with established policies and priorities Weak service delivery - Accountability - Efficiency - Quality Outputs Inherently difficult to assess - Household surveys - Participatory approaches - Social Impact Assessment Impact Outcomes Weak management information systems - limited coverage - poor data quality - late and scattered reporting PUBLIC EXPENDITURE TRACKING SURVEY (PETS) QUANTITATIVE SERVICE DELIVERY SURVEY (QSDS) 5
6 Public expenditure tracking surveys (PETS) i Diagnostic tool to understand problems in budget execution Delays or predictability in funding leakages discretion in allocation of resources i Micro data collected from different levels of government, including service delivery units i Reliance on record reviews, but also facility manager s and staff interviews i Variation in design depending on perceived problems, country and sector i Open source tool for in-country analysis 6
7 Nonwage funds not reaching schools: Evidence from PETS (percent) Country Ghana 2000 Kenya 2004 (secondary bursaries) Peru 2001 (utilities) Madagascar 2002 Mali (books) Papua NG 2001 Tanzania 1998 Uganda 1995/2001 Zambia 2001 (discretion/rule) Mean /20 76/10 7
8 Quantitative service delivery surveys (QSDS) i Focus on the frontline service unit and service provider behavior i Inspired by micro-level household and firm surveys. Provides data on Resource flows (financial and in-kind) Inputs Service outputs and efficiency Quality of service i Focus on dimensions of performance in service delivery i Allows comparisons across ownership categories i Increases observability of outputs and inputs 8
9 Absence Rates in education and health by country iunannounced visits to primary schools and primary health centers in 6 countries Source: Chaudhury et al. (2006) Absence rates (percent) Primary Primary health schools centers Bangladesh Ecuador India Indonesia Peru Uganda Unweighted average
10 Absence rates in education in India State Maharashtra Gujarat Madhya Pradesh Kerala Himachal Pradesh Tamil Nadu Haryana Karnataka Orissa Rajasthan West Bengal Andhra Pradesh Uttar Pradesh Chhatisgarh Uttaranchal Assam Punjab Bihar Jharkhand Delhi All India Weighted Teacher absence (%) % 10
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