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Protection of Basic Services in Ethiopia. The World Bank May 2006. The Context for PBS. Political deterioration in governance Developmental still need to remain engaged with government Economic increase in oil prices, cut in donor aid Poverty huge needs and unmet demand

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Protection of Basic Services in Ethiopia

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Protection of basic services in ethiopia l.jpg

Protection of Basic Services in Ethiopia

The World Bank

May 2006


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The Context for PBS

  • Political

    • deterioration in governance

  • Developmental

    • still need to remain engaged with government

  • Economic

    • increase in oil prices, cut in donor aid

  • Poverty

    • huge needs and unmet demand

    • Government remains committed to poverty reduction

    • progress on development indicators

    • basic services defined to include the main services on which poor people depend: health, education, water & sanitation, & agricultural services


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The Rationale for PBS

  • Protect gains in poverty reduction

  • Only Government has national reach

    • no alternative but to work through GoE

  • Reduce Government discretion over donor resources

    • Earmarked at regional level and below

    • Strict reporting

  • Need to promote improved governance

    • Mechanisms to promote greater transparency & accountability over use of public resources


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An Overview of PBS

  • A package comprising 4 components:

    • funds to protect the delivery of basic services

    • health commodities to prevent ill health and deliver more effective services

    • improved government systems of transparency and accountability

    • help for citizens to participate in public decision-making about the services they need

  • A series of tests to demonstrate that:

    • Fairness – funds are allocated according to transparent rules, irrespective of politics

    • Fiduciary – funds are used for the intended purpose, assessed via actual spending reports and continuous audit

    • Additionality – PBS funds are additional to government’s own resources

    • Accountability – Government at all levels is more accountable to citizens for use of funds

  • Participation is integral to success

    • Formal representative institutions (kebele councils, woreda councils, Regional and National Parliamentary budget committees)

    • Citizen groups and Civil Society Organizations (CSOs)

  • Over a period of:

    • Just over two years (to end June 2008) for components 1-3

    • Three years for component 4

  • Supported by(subject to approval):

    • World Bank, UK, EC, Canadian, Swedish, Dutch and Irish Governments


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Component 1:Funds forBasic Services

  • What?

    • Funds channeled through public system to help preserve originally budgeted level of basic services at woreda level, sustaining steady increase

    • Funds will become part of “block grant” that woredas receive for their development plans

  • How?

    • Funds delivered in quarterly blocks (or “disbursements”) and subject to satisfactory review of overall PBS progress

    • Tests applied to funds (fairness, additionality, fiduciary) imply far greater external scrutiny than hitherto applied to donor funds disbursed through government systems

  • How much?

    • Up to about US$ 250 million per year over Ethiopian Fiscal Years 1998, 1999 and 2000

    • Government to finance US$ 2 billion for basic services in this period


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Component 2: Provision of Health Commodities

  • What?

    • vaccines, contraceptives, mosquito bed nets, malaria drugs, insecticides and spray pumps and emergency drugs

  • Why?

    • these commodities require international procurement which is most cost-effectively done in bulk, centrally

    • prevention requires high coverage rates but woredas may choose not to use their block grants to provide these commodities

    • will improve effectiveness of health facilities being supported under Component 1

  • How?

    • Through Health Sector Development Program (HSDP) and committees at every level (Regions, woredas)

  • How much?

    • US$ 67 million


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Component 3: Financial Transparency & Accountability

  • What?

    • Promote accountability of local officials to citizens in delivery of public services

  • How?

    • Improved outreach by Government to help build citizens’ understanding of the public budget process – preparation of the budget, reading the budget, engaging on the budget with their representatives, etc.

    • Technical assistance to the public sector to improve mechanisms and approaches for disclosure of public budget information.

    • Ensuring disclosure of resources and minimum service standards in public service facilities

    • Assessment of progress using two Financial Transparency and Accountability Perception Surveys

    • Capacity building for improved financial transparency in MOFED, Regional BOFEDs, and Office of the Federal Auditor General

  • How Much?

    • US$ 7.2 million


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Component 4: Social Accountability

  • What?

    • Support citizens’ ability and capacity (i) to express themselves and (ii) to articulate their views or concernsin the context of decentralized service delivery, especially around budget processes

  • How?

    • Build capacity of civil society and CSOs to engage on public budget issues

    • Support 4-6 multi-woreda pilots on different approaches to social accountability

    • Assessment of experiences, joint learning between stakeholders (beneficiary communities and government), and exploringpotential to scale-up promising approaches

    • Managed via a non-government agency

  • How Much?

    • US$ 6.0 million over 36 months

    • Recognition that this is the start of a longer-term process


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The PBS System of Reviews

  • 7 Reviews in the period up to the end of June 2008

    • Oct 2006; Jan, April, June & Oct 2007; Jan & April 2008

  • Each will include:

    • A Joint Budget & Aid Review (JBAR), covering: the “tests”, a full macro-economic discussion, analysis of actual expenditures and discussion on budgets

    • Assess progress on Components 2, 3 & 4

    • Check that Government has completed agreed actions within agreed time frame

  • Funds will be released in “blocks” only once the Reviews have been completed satisfactorily


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PBS Management Structures

  • Components 1and 3

    • Funded by government, WB, donors

    • Executed by government

  • Component 2

    • Funded by WB, donors

    • Executed by government

  • Component 4

    • Funded by donors through a Trust Fund managed by WB

    • Executed by a non-government Management Agency

    • Guided by a Steering Committee with equal representation of CSOs, development partners and government


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Opportunities for Engagement by Civil Society Organisations

  • All Components

    • In independent monitoring & evaluation

  • Component 4

    • In implementation of selected pilots

    • Participation on Steering Committee

    • Dialogue with local officials over budgets, spending, and performance

  • Component 3

    • Provision of technical assistance on budget-related work

    • Checking on availability of budget information at regional, woreda and basic service facility level and helping with improvements

    • Checking consistency of budget allocations with local citizens’ priorities


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