Table 1: Definition of dependent variable (access to the poor) and governance indicators
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1 INDICES OF PUBLIC SECTOR PERFORMANCE A BRIEF DESCRIPTION A key contribution of the WBI approach is the use country-specific, survey data. The database, available for several countries, provides a wide range of information about governance, corruption and service delivery matters, across key, pre-selected institutions within the country, based on public officials responses. This agency-level analysis follows the approach introduced by Kaufmann, Mehrez and Gurgur s (2002) work for Bolivia using similar survey data. This approach allows us to minimize respondents bias and measurement error due to individual differences in perceptions using factor analysis technique 1. In addition, it is possible to separate agencies located in different cities and introduce them in the sample as different units of observation, one per city. This attempts to capture the idea that the quality of governance and corrupt practices within the same agency may differ in a significant way depending on the geographical location of the agency. This leads to a greater sample and a more significant analysis. To construct the indices for the analysis, we first re-scale the individual responses and synthesize them into agency indices using a factor analysis technique. In particular, all questions about individual perceptions, which can be scaled from 1 to 7 (or 1 to 5) in the original survey, are rescaled from 0 to 100, in order to facilitate percent interpretation (0 always meaning the lowest level of quality of governance, corruption, access or service performance). We constructed then several variables intended to capture different aspects related to the quality of governance, the presence of corruption within the institutions and the access and availability of public services provided to the citizens. Table 1 provides the definitions of all governance and accessibility indicators used in the empirical analysis, table A1 in the appendix gives a detailed list of all survey questions used in the construction these variables, and tables A2, A3 and A4 display illustration of the indicators calculated for Peru, Sierra Leone and Zambia. Table 1: Definition of dependent variable (access to the poor) and governance indicators Governance variable ACCESS TO THE POOR SERVICE PERFORMANCE AUDIT MECHANISIMS ENFORCEMENT OF RULES Definition Index of accessibility to poor citizens of the public service provided by the institution. High numbers imply high levels of access Index indicating the extent to which service provided by the institution is of high quality, fully satisfactory to the user, and offered at relatively low cost. Percent of cases where the decisions on personnel, budget, procurement, and service management are subject to external and/or internal audits. Subdivided in the empirical analysis into audit in service management, audit in personnel management, audit in procurement management, and audit in budget management. Frequency with which rules/guidelines/regulations in the personnel, budget, procurement, and service management are enforced. 1 To test the robustness of our approach, we also calculate agencies indices of governance as mean values of the individual responses.
2 SUPERVISION OF RULES CLEARNESS OF RULES MERITOCRACY MISSION OPENNESS POLITICIZATION QUALITY OF RULES RESOURCES TRANSPARENCY VOICE WAGE SATISFACTION ROTATION Frequency with which rules/guidelines/regulations on personnel, budget, procurement, and service management are supervised This index combines the frequency with which rules/guidelines/regulations on personnel, budget, procurement and service management are well supervised and strictly enforced. It is subdivided into four categories: supervision of personnel rules, supervision of budget rules, supervision of procurement rules, and supervision of service rules. Frequency with which decisions on personnel management issues are based on professional experience/merit/performance or education levels. Index determining the degree of understanding of agency's objective and own tasks and responsibilities by public officials within the institution. Frequency with which rules/guidelines/regulations in the personnel, budget, procurement, and service management are announced and opened to own staff and the public. It is subdivided into four categories: openness of personnel decisions, openness of budget decisions, openness of procurement decisions, openness of service decisions. Percent of cases where the decisions on personnel, budget, procurement, and service management are subject to political interference. Subdivided in the empirical analysis into politicization in service management, politicization in personnel management, politicization in procurement management, and politicization in budget management. Frequency with which rules/guidelines/regulations in the personnel, budget, procurement, and service management are formally written, simple, clear, not adding too many administrative steps. It is subdivided into four categories: quality of personnel management rules, budget, procurement, and service management rules. Percent of cases where physical, financial and human capital resources of the agency are adequate. Percent of cases where the decisions on personnel, budget, procurement, and service management are done transparently. An index representing the existence of consumer feedback and complaint mechanisms. Percent of employees very satisfied or somewhat satisfied with their wages and benefits. An index indicating the frequency of the agency rotation rate from the public to the private sector, and from the private to the public sector. Table 2: Definition of Corruption indices. Index OVERALL CORRUPTION INDEX Sub-indices of corruption analyzed: CORRUPTION IN PERSONNEL MANAGEMENT CORRUPTION IN PERSONNEL MANAGEMENT (2) CORRUPTION IN BUDGET MANAGEMENT CORRUPTION IN CONTRACTS STATE CAPTURE Definition Corruption index representing the average of five standardized corruption indicators: bribery over regulatory/legal decisions, bribery over public contracts, bribery to obtain public services, corruption in personnel management and corruption in budget management. Corruption index representing the percentage of cases where decisions on personnel management are based on unofficial payments (job purchase). Corruption index representing the extent of the purchasing jobs practice in the institution. Corruption index representing the frequency within the institution of irregularities/diversion of funds or any other type of budget abuse. Corruption index representing the frequency within the institution of bribes in the contracting process. Corruption index representing the extent of bribes to alter regulations and legal decisions within the institution.
3 ADMINISTRATIVE CORRUPTION Corruption index representing within the frequency of bribes to obtain public services at the institution. Appendix 1 Table A.1: Survey Questions Used to Construct Governance Variables. Governance Variable ACCESS SERVICE PERFORMANCE AUDIT ENFORCEMENT OF RULES SUPERVISION OF RULES MERITOCRACY MISSION OPENNESS Questions available in the survey Our agency's services are accessible by the poor. Service delivery in your institution is of high quality. Services in your institution are offered at relatively low cost. Service delivery in your institution is fully satisfactory to the user. Decisions on personnel management are regularly audited by some internal unit. Decisions on personnel management are subject to external audits. Decisions on budget management are regularly audited by some internal unit. Decisions on budget management are subject to external audits. Decisions on service delivery/contracts are regularly audited by some internal unit. Decisions on service delivery/contracts are subject to external audits. Transactions are supported by hard copy receipts to help auditing. The policy/guidelines/regulations of administration of personnel management are strictly enforced. The policy/guidelines/regulations of administration of budget management are strictly enforced. The policy/guidelines/regulations of administration of service management /public contracts management are strictly enforced. The policy/guidelines/regulations of administration of personnel management are well supervised. The policy/guidelines/regulations of administration of budget management are well supervised. The policy/guidelines/regulations of administration of service management /public contracts management are well supervised. Percent of cases the decisions on personnel management issues are based on professional experience/merit/performance. Percent of cases the decisions on personnel management issues are based on level of education. All levels of public servants have a clear understanding of the agency's objectives and strategies. All levels of public servants identify with and are involved with the agency s objectives and strategies. I clearly understand my institutional roles and responsibilities and what duties comprises each role. Decisions on personnel management are announced and opened to the internal of the institution (and also to the outside if applicable). Decisions on budget management are announced and opened to the internal of the institution (and also to the outside if applicable). Decisions on service delivery/performance of daily tasks/public contracts are announced and opened to the internal of the institution (and also to the outside if applicable). Agency's financial status is regularly disclosed to the public.
4 Governance Variable POLITICIZATION Questions available in the survey Decisions on personnel management are based on political connections/party affiliations/political pressure. Decisions on budget management are based on political connections/party affiliations/political pressure. Decisions on service management (or biding processes) are based on political connections/party affiliations/political pressure. Table A.1 (cont'd): Survey Questions Used to Construct Governance Variables. Governance Variable Questions available in the survey The policy/guidelines/regulations of administration of personnel management are written and formal. The policy/guidelines/regulations of administration of personnel management are simple, clear and easy to understand. The policy/guidelines/regulations of administration of personnel management do not add too many administrative steps. The policy/guidelines/regulations of administration of budget management are written and formal. QUALITY OF RULES The policy/guidelines/regulations of administration of budget management are simple, clear and easy to understand. The policy/guidelines/regulations of administration of budget management do not add too many administrative steps. RESOURCES TRANSPARENCY VOICE ROTATION PUBLIC/PRIVATE SECTORS WAGE SATISFACTION The policy/guidelines/regulations of service management /bidding process are written and formal. The policy/guidelines/regulations of service management /bidding process are simple, clear and easy to understand. Quantity (also quality, if applicable) of resources of the agency is adequate Personnel and their training of the agency is adequate Office supplies/computers are adequate. Space/Offices of the agency are adequate. Decisions on personnel management are done transparently (everybody knows who were designated, promoted, ) Decisions on budget management are done transparently (everybody knows who were designated, promoted, ) Decisions on service delivery/performance of daily tasks/ public contracts are done transparently (everybody knows who were designated, promoted, ) We all consider that citizens and users are our clients. Clearly defined mechanisms exist to ask users about their needs. Clearly defined mechanisms exist so that users can express their preferences, suggestions and complaints. Tendency of the public officials in your institution to change jobs and rotate from the public sector to the private (director, executive, professional/technician, assistants) Tendency of persons to rotate from the private sector to the public sector Percent of employees very satisfied or somewhat satisfied with their wages and benefits. Table A2. Governance and corruption indicators by province, Zambia.
5 Indicators Province Whole Central Copperbelt Eastern Luapula Lusaka Northern North-western Southern Western Country Overall Corruption Administrative corruption State capture Corruption In budget Corruption in public contracts Corruption in personnel (1) Corruption in personnel (2) Accessibility for poor Audit Mechanisms Enforcement of Rules Politicization Quality of Rules Resources Transparency Citizen Voice Meritocracy The indicators above take values between To interpret them please keep in mind that: -The higher the value of the corruption index, the more severe the problem. -The higher the value of the governance indicator the better the quality of that dimension.
6 Table A3. Governance and corruption indicators by region, Peru. Governance and Corruption Indicators Lima Sierra Selva Resto de Whole Costa Country Overall Corruption Corruption in personnel Corruption in budget State Capture Corruption in Contracts Administrative Corruption Perceived Corruption Accessibility for poor Audit Mechanisms Audit mechanisms of personnel decisions Audit mechanisms of budget decisions Audit mechanisms of public contracts Enforcement of Rules Supervision of rules Clearness of Rules Clearness of personnel rules Clearness of budget rules Clearness of public contracts rules Quality of Rules Quality of personnel rules Quality of budget rules Politicization Politicization in personnel decisions Politicization in budget decisions Politicization in public contracts Resources Transparency Transparency in personnel decisions Transparency in budget decisions Transparency in public contracts Openness Openness in personnel decisions Openness in budget decisions Openness of public contracts decisions Mission Serviceb Performance Meritocracy Citizen Voice Wage Satisfaction The indicators above take values between To interpret them please keep in mind that: -The higher the value of the corruption index, the more severe the problem. -The higher the value of the governance indicator the better the quality of that dimension.
7 Table A4. Governance and corruption indicators by institution, Sierra Leone Please note that we introduced a color-coding of the different agencies to facilitate the reading of results. - Agencies highlighted in red score well below the national indicator - Agencies highlighted in green score well above the national indicator Audit Enforcement of rules Resources Transparency Citizen voice Wage satisfaction Presidential affaires Ministry of Finance Quasi-independent institutions Ministry of Trade and Industry Ministry of Internal Affairs Ministry of Energy and Power and NPA Ministry of Foreign Affairs & International Cooperation Ministry of Development & Economic Planning Ministry of Social Welfare, Gender & Children's Affairs Ministry of Health & Sanitation Ministry of Information and Broadcasting Ministry of Education, Science and Technology Ministry of Youth and Sports Ministry of Labour and Industrial Relations Ministry of Agriculture and Food Security Ministry of Local Government & Municipal and district councils Ministry of Transport & Communications Ministry of Works and Public Maintenance Ministry of Lands, Housing & Country Planning Ministry of Mineral Resources House of Parliament Office of the Attorney General, Minister of Justice and Director of Public Prosecutor Traffic Police and Road Transport Authority Supreme Courts Local Courts SALWACO/GVWC and SIERRATEL SALPOST Port Authority SL National Tourist Board and SL Standards Bureau Police and Prisons Post-conflict institutions WHOLE COUNTRY
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