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Inherent structural inequalities and the impact of poor service delivery on the
vulnerable groups.
Albanie Marcossy, PhD
Public Services
For a country to develop and keep up with the times, it is necessary that it creates a working
infrastructure. It is the country's public services sector that is concerned with this. Public services
in Bangladesh are services provided by the government to the community. They include police
departments, fire departments, water supply, electricity, education, waste disposal and many
more. The Bangladesh Public Service Commission plays a vital role in recruitment, promotion,
discipline, posting and transfer of government servants. This constitutional body ensures that
decisions relating to the public services sector are made in line with equity and merit.
The Police Force in Bangladesh provides the people with internal security as well as acting to
guard the nation's assets from terrorists and criminal elements. Bangladesh's police service falls
under the jurisdiction of the Ministry of Home Affairs. In recent times a police reform program
has been put in action to improve their skills and effectiveness. Police in Bangladesh play a vital
role in maintaining domestic peace, handling criminals, investigating crimes and so on.
Water is a vital commodity for life on the planet. In Bangladesh people know the importance of
water and how to access it. Many villages and small towns make use of wells and rivers as a water
source. The water services sector is still developing at quite a slow rate and battles due to
inadequate budgets. Only recently has the government become fully aware of the necessity of
waste disposal as an aspect of environmental management. Waste from houses and businesses
are placed in collection bins. Waste disposal vehicles will then collect this waste and remove it to
official open-dumping sites. Unfortunately, waste collection is sometimes poorly planned and
inefficient; therefore, waste sometimes sits out for long periods of time. The provision of
electricity in Bangladesh requires improvement as only about one in every five city inhabitants
has access to electric power.
Although Bangladesh's road network has been greatly expanded, many roads are in a poor
condition. City streets are often congested and roadways quite narrow. Several bridges have also
been built, providing easy access to various regions in the country. Bangladesh's state railway
covers some 2,700 km, providing both cargo and passenger services. As there are many
waterways in Bangladesh, water transport is vital. The Bangladesh Inland Water Transport
Authority is responsible for the maintenance of channels and ports as well as providing passenger
services.
1.0 Structural Inequalities
What are structural inequalities with respect to gender concepts?
1.1 Challenges to Accountability and Integrity in Public Service Management
Lessons learned from an overview of Open Government Partnership in developing countries of
Africa present some important areas for considerations. In short they point to a number of
interactions between Public Service initiatives by states and governance indicators within. A
review in Tanzania has shown that:
i. Given the big size of the country and insufficient infrastructure it has been difficult to
disseminate, popularize and domesticate the OGP programme comprehensively to grass
root levels. Efforts are being made to popularize this programme through radio and
television programmes, newspapers, and workshops.
ii. Civil society and private sector participation has been relatively low.
iii. Implementation of the commitments needs adequate resources. Scarce resources hinder
effective implementation.
These have been a case for many developing nations of Africa. The review points to a set of five
common political economy constraints and incentive problems that seem to affect levels of
performance. These are:
1. Political market imperfections, in terms of disruptions in the relationships between
politicians and citizens. These include a lack of credibility in the political promises
politicians make to citizens, a lack of information among voters about politicians’
performance, and forms of social fragmentation among voters (often manifested as
identity politics).
2. Policy incoherence, or contradictions (both within and across sectors) in policy design,
structure and roles causing some part or the entirety of policy design to become
unimplementable or unimplemented. This can be horizontal, with overlapping mandates
and confused responsibilities among co-providers and other public bodies, or vertical,
where policies do not have clear implementation plans or funding.
3. Lack of effective performance oversight, where formal processes for monitoring and
supervision are not followed or enforced and informal processes are insufficient. This
includes cases where monitoring and supervision processes are not clearly defined or
understood. Crucially, this includes both top-down monitoring and forms of bottom-up
monitoring or supervision.
4. Collective action challenges, which result in groups failing to act in their collective self
interest, even where individual members stand to benefit if the group achieves its
objectives. This is particularly relevant for the effective delivery of public services, which
often requires contributions from multiple actors, including frontline providers, service
users, local and central government authorities, non-state actors and others.
5. Moral hazard, in which actors are protected in some way from the risks associated with
their actions or inaction. The study findings suggest it is necessary to pay particular
attention to cases where the availability of aid or other resources (e.g. derived from
natural resources) reduces incentives to develop service delivery systems over the long
term.
It starts from the recognition that, despite bold plans and massive injections of international and
domestic resources, public service delivery is still failing in many areas in most poor developing
countries. This suggests there is a need to revisit approaches to assisting service delivery sectors.
We argue that a shift of emphasis is needed, towards a greater focus on understanding how a
range of institutional and governance arrangements can shape service delivery processes and
outcomes.
Second, while the number of political economy studies on different service delivery sectors and
different countries is growing, these remain largely one-off or ad hoc studies. There have been
few attempts to date to look across multiple studies, involving a range of sectors and countries,
to identify any discernible trends. This study therefore seeks to provide a more structured
analysis, to identify cross-lesson learning.
Third, many studies tend to talk in fairly generic terms about political and governance constraints.
For example, concepts like ‘political will’ or the existence of ‘weak incentives’ are often referred
to but rarely further developed in terms of the specific institutional and governance
arrangements that contribute to these factors, and in terms of which of these may offer
strategies for overcoming common bottlenecks or gaps.
Analysts can address this by identifying some specific types of governance constraints and some
of the causal mechanisms through which these constraints shape processes and outcomes in
service delivery. The effort to develop these causal relationships remains tentative and needs to
be further developed through additional country analysis, but it is a useful step towards
specifying more concretely some of the particular constraints and how they play out in relation
to service delivery.
This paper is drawn by reviewing other studies. The study draws particularly on available political
economy and governance analysis, to look at key institutional features that seem to shape service
delivery processes and outcomes (including Batley, 2004; Batley and Mcloughlin, 2010; Booth,
2010; Gibson et al., 2005; Keefer and Khemani, 2005; Leonard, 2000). In total, over 50 sources
were reviewed, covering more than 20 country case studies.
1.2 Political market imperfections
The term ‘political market imperfections’ was coined by Keefer and Khemani (2005) to refer to
three types of imperfections in the relationships between politicians and citizens: a lack of
credibility in the political promises politicians make to citizens; a lack of information among
voters about politicians’ performance; and forms of social fragmentation among voters that can
manifest as identity politics. While constrained to some degree by the nature of a secondary
review of existing sources, we can identify a number of examples of these imperfections playing
out. In a sense, this is unsurprising, as all political markets are imperfect to some degree;
however, what is important to note is the level of these imperfections and the extent to which
they become detrimental to effective service delivery. Programmatic political parties have well-
established reputations for advocating particular positions on issues of broad public concern, and
thus can make credible commitments to provide public goods, in contrast with clientelistic or
patronage models, which appeal to personal benefits or use targeted resources to secure loyalty.
1.3 Corruption and Patronage
Primary focus of EAC CSOs
operations in governance
Local Participation & Community
Empowerment
• Decentralization with accountability
• Community Driven Development (CDD)
• Oversight by parent-teacher associations & user
groups
• Beneficiary participation in projects
Political
Accountability
• Political competition,
broad-based political
parties
• Transparency &
regulation of party
financing
• Disclosure of
parliamentary votes
Institutional Checks &
Balances
• Independent, effective
judiciary
• Legislative oversight
(PACs, PECs)
• Independent oversight
institutions (SAI)
• Global initiatives: UN,
WBI, OECD Convention,
anti-money laundering
Civil Society & Media
• Freedom of press
• Freedom of information
• Civil society watchdogs
• Public hearings of draft laws
• Report cards, client surveys
• Participatory country
diagnostic surveys
Private Sector
Interface
• Effective, streamlined
regulation
• Transparent public-
private dialogue
• Break-up of monopolies
• Transparency in
Extractive Industries
• Corporate governance
• Collective business
associations
Anticorruption has many dimensions
CSOs focus only on some
Effective Public Sector
Management
• Ethical leadership: asset declaration, conflict
of interest rules
• Meritocratic civil service with adequate pay
• Transparency & accountability in budget mgnt
• Transparent, competitive procurement
• Anticorruption in sectors
GOOD
GOVERNANCE
49Marcossy: CPW, Tanzania 2012
Figure 1: The Linkage of Ethics and Anti-Corruption in Public Service Management
Several cases reviewed highlight instances where patronage logics are dominant and have
undermined the credibility of more programmatic political commitments.
1.4 Common governance constraints
They include cases where politicians use services as patronage tools, where there are mismatches
between national and local government strategies and policy frameworks and where users
themselves opt out of formal provision and instead rely on unregulated, informal providers. They
are inherent to the political system and appear to repeat themselves in similar ways across sectors
and countries.
Table 1: Typology of common governance constraints
Governance
constraint
Definition Sector and Country
Political market
imperfections
Perverse political logics often based on
patronage or clientelistic relationships,
contributing to short term, populist policies
and biases to visible outputs
Education (India, Nepal, South
Sudan)
Water/sanitation (Malawi, Sierra
Leone)
Policy
incoherence
Contradictions within policy design, structure
and roles, meaning some part or the entirety
of policy design is unimplementable or
unimplemented
Education (Afghanistan,
Bangladesh, Malawi, Uganda)
Health (Cameroon, Niger,
Rwanda)
Water/sanitation (Kenya,
Tanzania)
Levels of
performance
oversight or
monitoring
Insufficient performance regulation and weak
accountability (either top down or bottom up)
contributing to users exiting from provision
Health (Malawi, Uganda,
Vietnam, Rwanda)
Water/sanitation (Ghana, Sierra
Challenges for
collective action
Weak capacity of actors to coordinate their
activities and work together productively
Health (Cameroon, Niger,
Rwanda)
Moral hazard Availability of aid or other resources that
insulate the state (or others) from the
consequences of their actions or inaction
Water/sanitation (Niger, Sierra
Leone, South Sudan
1.5 Policy incoherence
Policy incoherence forms a second category of constraint to service delivery. We define this
broadly as contradictions (both within and across sectors) in policy design, structure and roles
that mean some part or the entirety of policy design becomes un-implementable or
unimplemented. This adopts a broad definition of policy to include not just strategy but
organisational mandates, funding flows and implementation capacity (adapted from Booth,
2010). It may include aspects of poor coordination but also broader contradictions within the
policy framework, which act as barriers to implementation. Policy incoherence can be manifested
horizontally, with overlapping mandates and confused responsibilities among co-providers and
other public bodies, or vertically, where policies do not have clear implementation plans or
funding, or do not take account of existing informal practices. Where political market
imperfections are present, they can often reinforce forms of policy incoherence.
1.6 Collective action challenges
A fourth constraint refers to the challenge of facilitating collective action for the purpose of
improvements in service delivery. Olson (1965) notes that groups will not always act in their
collective self-interest, even where individual members stand to benefit if the group achieves its
objectives. This is particularly relevant for the effective delivery of many public services, which
often requires contributions from multiple actors, that is, they involve not just frontline service
providers but also users, local and central government authorities, non-state actors and others.
Collective action problems can thus arise at multiple levels, and reflect the multiplicity of actors,
where the distribution of costs and benefits prevent individual actors from coordinating and
working together productively to generate services.
In some cases, institutional arrangements intended to solve some of the collective action
challenges necessary to support service delivery have been present, but have failed to function
as planned.
1.7 Moral hazard
This can result in a wide variety of dysfunctional behaviours on the part of those actors insulated
from the risks associated with their decisions (whether they be a part of the state, service users
or service providers), such as an unwillingness to put the sector on a sustainable financial footing
(whether through user fees or, in the case of public providers, through raising sufficient own
revenues) or to invest resources that are available. Where such dynamics are prevalent, service
delivery is likely to continue to rely on alternative sources of revenue (or other forms of
assistance), rather than transitioning away from dependence. Long-term planning is likely to
suffer. As moral hazard indicates an incentive problem rather than a capacity problem, it is
important to differentiate cases where providers choose not to adopt and enforce necessary
measures for sustainable service delivery from cases in which they are actually unable to do so.
2.0 Common symptoms and effects for service delivery
In addition to identifying some of the common constraints across basic service sectors, evidences
suggest some possible relationships between the constraints and their effects on service delivery
outcomes. This is an important step in moving beyond the predominance of one off, ad hoc
analyses to instead to identifying possibilities for cross-location learning and devising more
effective theories of change to address under-performance. In this section, we discuss some of
the discernible trends in terms of effects on service delivery, before looking at some of the key
‘symptoms’ that may signal an underlying governance constraint.
2.1 General effects on service delivery
While a wide range of factors undoubtedly contribute to under-performance or to variations in
performance for basic services, this review highlights the extent to which it is helpful to include
political and governance variables as part of the explanation (and as part of identifying solutions).
This has been under-explored to date in many of the predominant measures of sector
performance.
Across the developing countries, a general set of effects are discussed in relation to sector
performance and outcomes, which can be clustered broadly into three main areas:
i. Poor access to services: In Sierra Leone, the effects of collective action problems and
political market imperfections included low levels of access and decreasing coverage
as systems deteriorated in Freetown. Users opted for informal providers (who
charged up to 200 times more per unit volume) or self-provision from contaminated
shallow wells (which led to resulting health risks) (Harris et al., 2012).
ii. Poor quality of services: Constraints such as collective action problems can lead in
particular to problems in the maintenance of provision, for example where
community-level sanitation efforts are undermined or there is a lack of local
maintenance of water points, often undermining water quality.
iii. Inequity or marginalisation of some groups: In contexts like Zimbabwe and Niger, the
presence of governance constraints has meant that chronic problems go
unaddressed, resulting in severe shortages in access for some; in Zimbabwe, this was
groups associated with opposition parties; in Niger, it was those in neglected rural
areas (Diarra, 2009; Gumbo and van der Zaag, 2002).
2.2 Recognising common symptoms
Evidences suggest some associations of particular observable features of sub-optimal service
delivery with the governance constraints identified in those countries and sectors. These
observable features may include problems of staffing or common performance measures in
sectors, for example, relating to the poor supervision of politically loyal staff and resulting poor
behaviour.
Recognising symptoms as separate to the underlying governance constraint may be helpful, as
reform processes are unlikely to be effective where they only address these symptoms (e.g. staff
shortages or training, poor financial management) without engaging with some of their
underlying drivers (i.e. poor performance disciplines, policy incoherence and so on). This suggests
the need to more effectively diagnose the nature of the specific governance constraint(s) and
their potential symptoms early on and in more systematic ways.
2.2.1 Political market imperfections
Common symptoms linked to forms of political market imperfections include the diversion or
misuse of resources (e.g. where resources are redirected to the dominant political party or to
dominant kin or ethnic groups) and the poor supervision of politically appointed staff,
contributing to poor performance or behaviour and undermining organisational accountability
relationships.
There are various examples of resources for service delivery being misused or diverted,
contributing to their inequitable distribution. In Malawi, funds collected for water kiosks were
instead kept by chairs of the committees and funnelled to the dominant party. The Water Board
often felt unable to press for payment as committees were linked to the ruling party (Cammack,
2012; Cammack and Kanyongolo, 2011).
2.2.2 Policy incoherence
Symptoms commonly linked to forms of policy incoherence also seem to particularly affect forms
of political and organisational accountability relationships. Where there are high levels of
horizontal incoherence, this may particularly exacerbate forms of political market imperfections,
by opening up increased opportunities for patronage or political capture of resources.
Fragmentation and a lack of horizontal coherence in Kenya resulted in a proliferation of actors
and a large influx of funds, opening up multiple opportunities for rent seeking and a ‘scramble
for resources’ (Rampa, 2011). It also led to a bias of resource allocation, to urban over rural areas
and to particular groups, as a consequence of the interests of government and business elites.
2.3 Performance monitoring and oversight
Examples of the weak monitoring and oversight of providers or delivery organisations can reveal
itself in terms of the exit or opting out of users. This has implications for organizational
accountability but also for forms of direct or user accountability.
In general, the symptoms of a lack of performance monitoring and oversight include poor
regulation and a lack of authority over service provider staff and processes. In Niger, unclear
monitoring and supervision procedures for health workers trained under the Special Programme
of the President meant that district health authorities had little formal authority over them
(Diarra, 2009). This led to poorly trained health workers who reportedly disregarded the
authority of health centre staff and were not answerable for their performance (Olivier de
Sardan, 2010; 2012).
2.4 Collective action
Failures in collective action are most typically manifested in instances of free riding, whereby
users enjoy the benefits of services without contributing to them. This can weaken the ability to
raise local revenue, contributing to further shortfalls in provision. Where forms of direct or user
accountability malfunction in this way, this again has knock-on impacts and can undermine forms
of organisational accountability.
In Sierra Leone, collective action constraints contributed to the subversion of the water pricing
regime, including pipe breaking; illegal household connections or reconnections installed without
registration of customers with the relevant utility; and non-payment by politically powerful users.
In Uganda and Kenya, where local collective action was also undermined by national policies, it
contributed to shortfalls in the funding for PTAs, including for the hiring of local additional
teachers, as well as for the purchase of additional supplies. In Uganda, central government grants
did not include provisions for these types of costs, and PTAs were left unable to raise funds or in-
kind contributions from communities. The effects of this were multiple, but included a decrease
in community monitoring of education, previously been carried out by PTAs (Creative Associates,
2006). Moreover, resulting teacher shortages combined with reduced parental involvement in
school communities, helped contribute to a gradual exiting from the public system (Duflo et al.,
2012).
2.5 Moral hazard
Moral hazard constraints also seem to particularly shape forms of organisational accountability.
In terms of resource allocation, they can allow the state or delivery organisations to underinvest
in key areas (e.g. where aid resources are assumed to act as a substitute). This is identified as a
key problem, for example in relation to investment in water and sanitation in Freetown, Sierra
Leone. It also remains a chronic problem in some post-conflict contexts, such as South Sudan,
where the availability of aid resources for basic services means that international NGOs have had
much more visibility as service providers than the state, reducing incentives for state actors to
play more prominent roles in either oversight or delivery (Ali, 2011).
The symptoms set out above highlight some of the more visible or observable ways in which
governance constraints can manifest themselves; they may be useful signals or warning signs of
potential constraints.
3.0 Strategies to address common constraints
This review identifies some common governance constraints and their symptoms and effects for
service delivery. In doing so, we also start to provide deeper analysis of the potential opportunity
structures available to address recurrent bottlenecks or blockages that undermine sector
performance or to explain why performance may be better in some areas than others. Thus,
rather than discussing governance support in a generic sense, identifying some particular forms
of governance constraints allows us to pinpoint more tailored strategies that may help to address
or mitigate these. In addition, it potentially allows for greater insights into where reform is
possible – where we are able to determine whether a particular constraint is likely to be binding
or whether there are strategies that will help to address and overcome it. This provides the
starting point in what might be more effective or feasible theories of change for supporting
reform processes in different sectors going forwards.
THERE IS not yet a comprehensive list of effective strategies or a full library of examples where
these constraints have been overcome; as a first step, there is a number of areas where there is
evidence of constraints being overcome that may provide valuable lessons for others. Moral
hazard is not examined in full, in part because it forms a different type of constraint, and was less
well covered in the available literature.
CONSIDERING THE REVIEW ABOVE: WHAT IS THE STATE OF PUBLIC SERVICES
IN YOUR COUNTRY?
HOW DOES THIS DIFFER FROM THE SITUATION IN YOUR
LOCALITY/COMMUNITY?
GR-PS/MS TCDC

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Inherent structural inequalities in PSD summary

  • 1. Inherent structural inequalities and the impact of poor service delivery on the vulnerable groups. Albanie Marcossy, PhD Public Services For a country to develop and keep up with the times, it is necessary that it creates a working infrastructure. It is the country's public services sector that is concerned with this. Public services in Bangladesh are services provided by the government to the community. They include police departments, fire departments, water supply, electricity, education, waste disposal and many more. The Bangladesh Public Service Commission plays a vital role in recruitment, promotion, discipline, posting and transfer of government servants. This constitutional body ensures that decisions relating to the public services sector are made in line with equity and merit. The Police Force in Bangladesh provides the people with internal security as well as acting to guard the nation's assets from terrorists and criminal elements. Bangladesh's police service falls under the jurisdiction of the Ministry of Home Affairs. In recent times a police reform program has been put in action to improve their skills and effectiveness. Police in Bangladesh play a vital role in maintaining domestic peace, handling criminals, investigating crimes and so on. Water is a vital commodity for life on the planet. In Bangladesh people know the importance of water and how to access it. Many villages and small towns make use of wells and rivers as a water source. The water services sector is still developing at quite a slow rate and battles due to inadequate budgets. Only recently has the government become fully aware of the necessity of waste disposal as an aspect of environmental management. Waste from houses and businesses are placed in collection bins. Waste disposal vehicles will then collect this waste and remove it to official open-dumping sites. Unfortunately, waste collection is sometimes poorly planned and inefficient; therefore, waste sometimes sits out for long periods of time. The provision of
  • 2. electricity in Bangladesh requires improvement as only about one in every five city inhabitants has access to electric power. Although Bangladesh's road network has been greatly expanded, many roads are in a poor condition. City streets are often congested and roadways quite narrow. Several bridges have also been built, providing easy access to various regions in the country. Bangladesh's state railway covers some 2,700 km, providing both cargo and passenger services. As there are many waterways in Bangladesh, water transport is vital. The Bangladesh Inland Water Transport Authority is responsible for the maintenance of channels and ports as well as providing passenger services. 1.0 Structural Inequalities What are structural inequalities with respect to gender concepts? 1.1 Challenges to Accountability and Integrity in Public Service Management Lessons learned from an overview of Open Government Partnership in developing countries of Africa present some important areas for considerations. In short they point to a number of interactions between Public Service initiatives by states and governance indicators within. A review in Tanzania has shown that: i. Given the big size of the country and insufficient infrastructure it has been difficult to disseminate, popularize and domesticate the OGP programme comprehensively to grass root levels. Efforts are being made to popularize this programme through radio and television programmes, newspapers, and workshops. ii. Civil society and private sector participation has been relatively low. iii. Implementation of the commitments needs adequate resources. Scarce resources hinder effective implementation.
  • 3. These have been a case for many developing nations of Africa. The review points to a set of five common political economy constraints and incentive problems that seem to affect levels of performance. These are: 1. Political market imperfections, in terms of disruptions in the relationships between politicians and citizens. These include a lack of credibility in the political promises politicians make to citizens, a lack of information among voters about politicians’ performance, and forms of social fragmentation among voters (often manifested as identity politics). 2. Policy incoherence, or contradictions (both within and across sectors) in policy design, structure and roles causing some part or the entirety of policy design to become unimplementable or unimplemented. This can be horizontal, with overlapping mandates and confused responsibilities among co-providers and other public bodies, or vertical, where policies do not have clear implementation plans or funding. 3. Lack of effective performance oversight, where formal processes for monitoring and supervision are not followed or enforced and informal processes are insufficient. This includes cases where monitoring and supervision processes are not clearly defined or understood. Crucially, this includes both top-down monitoring and forms of bottom-up monitoring or supervision. 4. Collective action challenges, which result in groups failing to act in their collective self interest, even where individual members stand to benefit if the group achieves its objectives. This is particularly relevant for the effective delivery of public services, which often requires contributions from multiple actors, including frontline providers, service users, local and central government authorities, non-state actors and others.
  • 4. 5. Moral hazard, in which actors are protected in some way from the risks associated with their actions or inaction. The study findings suggest it is necessary to pay particular attention to cases where the availability of aid or other resources (e.g. derived from natural resources) reduces incentives to develop service delivery systems over the long term. It starts from the recognition that, despite bold plans and massive injections of international and domestic resources, public service delivery is still failing in many areas in most poor developing countries. This suggests there is a need to revisit approaches to assisting service delivery sectors. We argue that a shift of emphasis is needed, towards a greater focus on understanding how a range of institutional and governance arrangements can shape service delivery processes and outcomes. Second, while the number of political economy studies on different service delivery sectors and different countries is growing, these remain largely one-off or ad hoc studies. There have been few attempts to date to look across multiple studies, involving a range of sectors and countries, to identify any discernible trends. This study therefore seeks to provide a more structured analysis, to identify cross-lesson learning. Third, many studies tend to talk in fairly generic terms about political and governance constraints. For example, concepts like ‘political will’ or the existence of ‘weak incentives’ are often referred to but rarely further developed in terms of the specific institutional and governance arrangements that contribute to these factors, and in terms of which of these may offer strategies for overcoming common bottlenecks or gaps. Analysts can address this by identifying some specific types of governance constraints and some of the causal mechanisms through which these constraints shape processes and outcomes in service delivery. The effort to develop these causal relationships remains tentative and needs to be further developed through additional country analysis, but it is a useful step towards
  • 5. specifying more concretely some of the particular constraints and how they play out in relation to service delivery. This paper is drawn by reviewing other studies. The study draws particularly on available political economy and governance analysis, to look at key institutional features that seem to shape service delivery processes and outcomes (including Batley, 2004; Batley and Mcloughlin, 2010; Booth, 2010; Gibson et al., 2005; Keefer and Khemani, 2005; Leonard, 2000). In total, over 50 sources were reviewed, covering more than 20 country case studies. 1.2 Political market imperfections The term ‘political market imperfections’ was coined by Keefer and Khemani (2005) to refer to three types of imperfections in the relationships between politicians and citizens: a lack of credibility in the political promises politicians make to citizens; a lack of information among voters about politicians’ performance; and forms of social fragmentation among voters that can manifest as identity politics. While constrained to some degree by the nature of a secondary review of existing sources, we can identify a number of examples of these imperfections playing out. In a sense, this is unsurprising, as all political markets are imperfect to some degree; however, what is important to note is the level of these imperfections and the extent to which they become detrimental to effective service delivery. Programmatic political parties have well- established reputations for advocating particular positions on issues of broad public concern, and thus can make credible commitments to provide public goods, in contrast with clientelistic or patronage models, which appeal to personal benefits or use targeted resources to secure loyalty.
  • 6. 1.3 Corruption and Patronage Primary focus of EAC CSOs operations in governance Local Participation & Community Empowerment • Decentralization with accountability • Community Driven Development (CDD) • Oversight by parent-teacher associations & user groups • Beneficiary participation in projects Political Accountability • Political competition, broad-based political parties • Transparency & regulation of party financing • Disclosure of parliamentary votes Institutional Checks & Balances • Independent, effective judiciary • Legislative oversight (PACs, PECs) • Independent oversight institutions (SAI) • Global initiatives: UN, WBI, OECD Convention, anti-money laundering Civil Society & Media • Freedom of press • Freedom of information • Civil society watchdogs • Public hearings of draft laws • Report cards, client surveys • Participatory country diagnostic surveys Private Sector Interface • Effective, streamlined regulation • Transparent public- private dialogue • Break-up of monopolies • Transparency in Extractive Industries • Corporate governance • Collective business associations Anticorruption has many dimensions CSOs focus only on some Effective Public Sector Management • Ethical leadership: asset declaration, conflict of interest rules • Meritocratic civil service with adequate pay • Transparency & accountability in budget mgnt • Transparent, competitive procurement • Anticorruption in sectors GOOD GOVERNANCE 49Marcossy: CPW, Tanzania 2012 Figure 1: The Linkage of Ethics and Anti-Corruption in Public Service Management Several cases reviewed highlight instances where patronage logics are dominant and have undermined the credibility of more programmatic political commitments. 1.4 Common governance constraints They include cases where politicians use services as patronage tools, where there are mismatches between national and local government strategies and policy frameworks and where users themselves opt out of formal provision and instead rely on unregulated, informal providers. They are inherent to the political system and appear to repeat themselves in similar ways across sectors and countries.
  • 7. Table 1: Typology of common governance constraints Governance constraint Definition Sector and Country Political market imperfections Perverse political logics often based on patronage or clientelistic relationships, contributing to short term, populist policies and biases to visible outputs Education (India, Nepal, South Sudan) Water/sanitation (Malawi, Sierra Leone) Policy incoherence Contradictions within policy design, structure and roles, meaning some part or the entirety of policy design is unimplementable or unimplemented Education (Afghanistan, Bangladesh, Malawi, Uganda) Health (Cameroon, Niger, Rwanda) Water/sanitation (Kenya, Tanzania) Levels of performance oversight or monitoring Insufficient performance regulation and weak accountability (either top down or bottom up) contributing to users exiting from provision Health (Malawi, Uganda, Vietnam, Rwanda) Water/sanitation (Ghana, Sierra Challenges for collective action Weak capacity of actors to coordinate their activities and work together productively Health (Cameroon, Niger, Rwanda) Moral hazard Availability of aid or other resources that insulate the state (or others) from the consequences of their actions or inaction Water/sanitation (Niger, Sierra Leone, South Sudan 1.5 Policy incoherence Policy incoherence forms a second category of constraint to service delivery. We define this broadly as contradictions (both within and across sectors) in policy design, structure and roles that mean some part or the entirety of policy design becomes un-implementable or unimplemented. This adopts a broad definition of policy to include not just strategy but organisational mandates, funding flows and implementation capacity (adapted from Booth, 2010). It may include aspects of poor coordination but also broader contradictions within the policy framework, which act as barriers to implementation. Policy incoherence can be manifested
  • 8. horizontally, with overlapping mandates and confused responsibilities among co-providers and other public bodies, or vertically, where policies do not have clear implementation plans or funding, or do not take account of existing informal practices. Where political market imperfections are present, they can often reinforce forms of policy incoherence. 1.6 Collective action challenges A fourth constraint refers to the challenge of facilitating collective action for the purpose of improvements in service delivery. Olson (1965) notes that groups will not always act in their collective self-interest, even where individual members stand to benefit if the group achieves its objectives. This is particularly relevant for the effective delivery of many public services, which often requires contributions from multiple actors, that is, they involve not just frontline service providers but also users, local and central government authorities, non-state actors and others. Collective action problems can thus arise at multiple levels, and reflect the multiplicity of actors, where the distribution of costs and benefits prevent individual actors from coordinating and working together productively to generate services. In some cases, institutional arrangements intended to solve some of the collective action challenges necessary to support service delivery have been present, but have failed to function as planned. 1.7 Moral hazard This can result in a wide variety of dysfunctional behaviours on the part of those actors insulated from the risks associated with their decisions (whether they be a part of the state, service users or service providers), such as an unwillingness to put the sector on a sustainable financial footing (whether through user fees or, in the case of public providers, through raising sufficient own revenues) or to invest resources that are available. Where such dynamics are prevalent, service
  • 9. delivery is likely to continue to rely on alternative sources of revenue (or other forms of assistance), rather than transitioning away from dependence. Long-term planning is likely to suffer. As moral hazard indicates an incentive problem rather than a capacity problem, it is important to differentiate cases where providers choose not to adopt and enforce necessary measures for sustainable service delivery from cases in which they are actually unable to do so. 2.0 Common symptoms and effects for service delivery In addition to identifying some of the common constraints across basic service sectors, evidences suggest some possible relationships between the constraints and their effects on service delivery outcomes. This is an important step in moving beyond the predominance of one off, ad hoc analyses to instead to identifying possibilities for cross-location learning and devising more effective theories of change to address under-performance. In this section, we discuss some of the discernible trends in terms of effects on service delivery, before looking at some of the key ‘symptoms’ that may signal an underlying governance constraint. 2.1 General effects on service delivery While a wide range of factors undoubtedly contribute to under-performance or to variations in performance for basic services, this review highlights the extent to which it is helpful to include political and governance variables as part of the explanation (and as part of identifying solutions). This has been under-explored to date in many of the predominant measures of sector performance. Across the developing countries, a general set of effects are discussed in relation to sector performance and outcomes, which can be clustered broadly into three main areas: i. Poor access to services: In Sierra Leone, the effects of collective action problems and political market imperfections included low levels of access and decreasing coverage as systems deteriorated in Freetown. Users opted for informal providers (who
  • 10. charged up to 200 times more per unit volume) or self-provision from contaminated shallow wells (which led to resulting health risks) (Harris et al., 2012). ii. Poor quality of services: Constraints such as collective action problems can lead in particular to problems in the maintenance of provision, for example where community-level sanitation efforts are undermined or there is a lack of local maintenance of water points, often undermining water quality. iii. Inequity or marginalisation of some groups: In contexts like Zimbabwe and Niger, the presence of governance constraints has meant that chronic problems go unaddressed, resulting in severe shortages in access for some; in Zimbabwe, this was groups associated with opposition parties; in Niger, it was those in neglected rural areas (Diarra, 2009; Gumbo and van der Zaag, 2002). 2.2 Recognising common symptoms Evidences suggest some associations of particular observable features of sub-optimal service delivery with the governance constraints identified in those countries and sectors. These observable features may include problems of staffing or common performance measures in sectors, for example, relating to the poor supervision of politically loyal staff and resulting poor behaviour. Recognising symptoms as separate to the underlying governance constraint may be helpful, as reform processes are unlikely to be effective where they only address these symptoms (e.g. staff shortages or training, poor financial management) without engaging with some of their underlying drivers (i.e. poor performance disciplines, policy incoherence and so on). This suggests the need to more effectively diagnose the nature of the specific governance constraint(s) and their potential symptoms early on and in more systematic ways.
  • 11. 2.2.1 Political market imperfections Common symptoms linked to forms of political market imperfections include the diversion or misuse of resources (e.g. where resources are redirected to the dominant political party or to dominant kin or ethnic groups) and the poor supervision of politically appointed staff, contributing to poor performance or behaviour and undermining organisational accountability relationships. There are various examples of resources for service delivery being misused or diverted, contributing to their inequitable distribution. In Malawi, funds collected for water kiosks were instead kept by chairs of the committees and funnelled to the dominant party. The Water Board often felt unable to press for payment as committees were linked to the ruling party (Cammack, 2012; Cammack and Kanyongolo, 2011). 2.2.2 Policy incoherence Symptoms commonly linked to forms of policy incoherence also seem to particularly affect forms of political and organisational accountability relationships. Where there are high levels of horizontal incoherence, this may particularly exacerbate forms of political market imperfections, by opening up increased opportunities for patronage or political capture of resources. Fragmentation and a lack of horizontal coherence in Kenya resulted in a proliferation of actors and a large influx of funds, opening up multiple opportunities for rent seeking and a ‘scramble for resources’ (Rampa, 2011). It also led to a bias of resource allocation, to urban over rural areas and to particular groups, as a consequence of the interests of government and business elites.
  • 12. 2.3 Performance monitoring and oversight Examples of the weak monitoring and oversight of providers or delivery organisations can reveal itself in terms of the exit or opting out of users. This has implications for organizational accountability but also for forms of direct or user accountability. In general, the symptoms of a lack of performance monitoring and oversight include poor regulation and a lack of authority over service provider staff and processes. In Niger, unclear monitoring and supervision procedures for health workers trained under the Special Programme of the President meant that district health authorities had little formal authority over them (Diarra, 2009). This led to poorly trained health workers who reportedly disregarded the authority of health centre staff and were not answerable for their performance (Olivier de Sardan, 2010; 2012). 2.4 Collective action Failures in collective action are most typically manifested in instances of free riding, whereby users enjoy the benefits of services without contributing to them. This can weaken the ability to raise local revenue, contributing to further shortfalls in provision. Where forms of direct or user accountability malfunction in this way, this again has knock-on impacts and can undermine forms of organisational accountability. In Sierra Leone, collective action constraints contributed to the subversion of the water pricing regime, including pipe breaking; illegal household connections or reconnections installed without registration of customers with the relevant utility; and non-payment by politically powerful users. In Uganda and Kenya, where local collective action was also undermined by national policies, it contributed to shortfalls in the funding for PTAs, including for the hiring of local additional
  • 13. teachers, as well as for the purchase of additional supplies. In Uganda, central government grants did not include provisions for these types of costs, and PTAs were left unable to raise funds or in- kind contributions from communities. The effects of this were multiple, but included a decrease in community monitoring of education, previously been carried out by PTAs (Creative Associates, 2006). Moreover, resulting teacher shortages combined with reduced parental involvement in school communities, helped contribute to a gradual exiting from the public system (Duflo et al., 2012). 2.5 Moral hazard Moral hazard constraints also seem to particularly shape forms of organisational accountability. In terms of resource allocation, they can allow the state or delivery organisations to underinvest in key areas (e.g. where aid resources are assumed to act as a substitute). This is identified as a key problem, for example in relation to investment in water and sanitation in Freetown, Sierra Leone. It also remains a chronic problem in some post-conflict contexts, such as South Sudan, where the availability of aid resources for basic services means that international NGOs have had much more visibility as service providers than the state, reducing incentives for state actors to play more prominent roles in either oversight or delivery (Ali, 2011). The symptoms set out above highlight some of the more visible or observable ways in which governance constraints can manifest themselves; they may be useful signals or warning signs of potential constraints. 3.0 Strategies to address common constraints This review identifies some common governance constraints and their symptoms and effects for service delivery. In doing so, we also start to provide deeper analysis of the potential opportunity structures available to address recurrent bottlenecks or blockages that undermine sector performance or to explain why performance may be better in some areas than others. Thus,
  • 14. rather than discussing governance support in a generic sense, identifying some particular forms of governance constraints allows us to pinpoint more tailored strategies that may help to address or mitigate these. In addition, it potentially allows for greater insights into where reform is possible – where we are able to determine whether a particular constraint is likely to be binding or whether there are strategies that will help to address and overcome it. This provides the starting point in what might be more effective or feasible theories of change for supporting reform processes in different sectors going forwards. THERE IS not yet a comprehensive list of effective strategies or a full library of examples where these constraints have been overcome; as a first step, there is a number of areas where there is evidence of constraints being overcome that may provide valuable lessons for others. Moral hazard is not examined in full, in part because it forms a different type of constraint, and was less well covered in the available literature. CONSIDERING THE REVIEW ABOVE: WHAT IS THE STATE OF PUBLIC SERVICES IN YOUR COUNTRY? HOW DOES THIS DIFFER FROM THE SITUATION IN YOUR LOCALITY/COMMUNITY? GR-PS/MS TCDC