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GOVERNANCE ENGAGEMENT SINCE THE
          ARAB SPRING
    HAVE WE BEEN SUCCESSFUL?
           Guenter Heidenhof
           MENA RMT Retreat
         September 29-30, 2011
2         The Governance puzzle
   Strong economic growth despite weak governance
indicators - so what’s the point for governance reforms?
                    Global Integrity Indicators (MENA vs. LAC and SAR, 2010)
     90
     80
     70
     60
     50
     40
     30
     20
     10
      0
            Government       Administration and   Elections         NGOs   Gov't Oversight   AC Framework
            Accountability     Civil Service                                and Controls


     Source: Global Integrity 2010                 MENA       LAC   SAR
3         The Governance puzzle
    Arab Spring calls for transformational changes that deal
    with broader political and economic governance issues:

     Concentration of political and economic power

     Lack of transparency and accountability of State actors

     Social injustice and inequality

     Lack of a level playing field
4           What was our governance strategy?
    Three main pillars
    I.    Improve value for money of public spending
              Open budget and public expenditure management reforms, public disclosure of
              socio-economic data and access to information, reform of accountability institutions

    II.   Maximize development impact and improve delivery of public
          services
              Strengthening administrative systems and institutions, decentralization, local
              participation

    III. Create an enabling environment for private sector-led growth
              Corporate governance reforms, standardization and simplification of
              procedures, level playing field
5           What has changed since early 2011?
    In the context of the Arab Spring strategy focuses on selected key
    reforms that signal break with the past:
    I.    Improve transparency
              Access-to-information, disclosure of economic and social data, transparency about
              government processes and decisions, conflict-of-interest issues

    II.   Strengthen government accountability
              Service delivery standards, independent monitoring of government
              activities, increase efficiency of institutions of accountability (e.g. Supreme Audit
              and Anti-corruption institutions, judiciary)

    III. Scale-up citizen participation
              Implication of civil society in design and implementation of government
              programs, strengthening of sub-national levels of government
6            What has worked?
       Improving transparency
        Some progress on freedom-of-information legislation in Tunisia, Morocco, similar reforms launched
        in Egypt and Kuwait, little progress on budget transparency and conflict-of-interest issues

       Strengthening government accountability
        Some progress in Tunisia, Morocco, WBG and Iraq (e.g. PFM reforms, strengthening institutions of
        accountability, initial steps to empower sub-national governments) , limited or no progress in other
        MENA countries
       Scale-up citizen participation
        Some progress in Tunisia, Jordan, Egypt, Morocco, Iraq (e.g. participatory service delivery
        reforms, modernization of the regulatory framework that governs civil society organizations);
        limited or no progress in other MENA countries
       Instrument
        Policy reforms supported primarily through DPLs (Tunisia, Morocco, Jordan), so far only limited use
        of investment lending to promote governance reforms
7         Some Challenges

 How do we deal with “reluctant clients” who may want at best gradual changes to the
current “social contract”? Do we need to expand our engagement to include broader
views from civil society? What do we do if governments are not in agreement?

 Sectors have a major role to play in mainstreaming governance reforms and are at
the same time struggling with governance issues (e.g. approach, institutional and capacity
weaknesses). How do we ensure some consistency across sectors?

 Do we need to strengthen our internal quality assurance on governance issues for our
strategic and operational products? How would we do that?
Iraq Board of Supreme Audit (BSA) High-level Workshop
           Dec. 5 to 6, 2011, Beirut, Lebanon
Pat Mc Kenzie, MNAFM Regional Manager, The World Bank
On screen right: Susan Wheeler, Director of Communications, Office of the Auditor General of Canada
                                          Below: panelists
Dr. AbdulBasit Turki, Chairman, Iraq BSA and
Mr. Tony Hegarty, Chief Financial Management Officer, The World Bank
A cross section of participants
Mr. Magnus Borge, Director General, IDI, INTOSAI
Panelist (left to right): Saskia Stuiveling, Zulkipli bin Abdullah and Mona El-Chami
Mona El-Chami, Sr. Financial Management Specialist, MNAFM, The World Bank
Saskia Stuiveling, President of the Netherlands Court of Audit (NCA)
A cross section of participants
A cross section of participants
Dr Ala’a Kadum, Director General, BSA
A cross section of participants
Phylicia Mortey, Knowledge, Learning and Communications Coordinator, MNAFM, The World Bank
Panelists
Dr. AbdulBasit and a cross section of participants

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Ma'arefah - In the Picture

  • 1. GOVERNANCE ENGAGEMENT SINCE THE ARAB SPRING HAVE WE BEEN SUCCESSFUL? Guenter Heidenhof MENA RMT Retreat September 29-30, 2011
  • 2. 2 The Governance puzzle Strong economic growth despite weak governance indicators - so what’s the point for governance reforms? Global Integrity Indicators (MENA vs. LAC and SAR, 2010) 90 80 70 60 50 40 30 20 10 0 Government Administration and Elections NGOs Gov't Oversight AC Framework Accountability Civil Service and Controls Source: Global Integrity 2010 MENA LAC SAR
  • 3. 3 The Governance puzzle Arab Spring calls for transformational changes that deal with broader political and economic governance issues:  Concentration of political and economic power  Lack of transparency and accountability of State actors  Social injustice and inequality  Lack of a level playing field
  • 4. 4 What was our governance strategy? Three main pillars I. Improve value for money of public spending Open budget and public expenditure management reforms, public disclosure of socio-economic data and access to information, reform of accountability institutions II. Maximize development impact and improve delivery of public services Strengthening administrative systems and institutions, decentralization, local participation III. Create an enabling environment for private sector-led growth Corporate governance reforms, standardization and simplification of procedures, level playing field
  • 5. 5 What has changed since early 2011? In the context of the Arab Spring strategy focuses on selected key reforms that signal break with the past: I. Improve transparency Access-to-information, disclosure of economic and social data, transparency about government processes and decisions, conflict-of-interest issues II. Strengthen government accountability Service delivery standards, independent monitoring of government activities, increase efficiency of institutions of accountability (e.g. Supreme Audit and Anti-corruption institutions, judiciary) III. Scale-up citizen participation Implication of civil society in design and implementation of government programs, strengthening of sub-national levels of government
  • 6. 6 What has worked?  Improving transparency Some progress on freedom-of-information legislation in Tunisia, Morocco, similar reforms launched in Egypt and Kuwait, little progress on budget transparency and conflict-of-interest issues  Strengthening government accountability Some progress in Tunisia, Morocco, WBG and Iraq (e.g. PFM reforms, strengthening institutions of accountability, initial steps to empower sub-national governments) , limited or no progress in other MENA countries  Scale-up citizen participation Some progress in Tunisia, Jordan, Egypt, Morocco, Iraq (e.g. participatory service delivery reforms, modernization of the regulatory framework that governs civil society organizations); limited or no progress in other MENA countries  Instrument Policy reforms supported primarily through DPLs (Tunisia, Morocco, Jordan), so far only limited use of investment lending to promote governance reforms
  • 7. 7 Some Challenges  How do we deal with “reluctant clients” who may want at best gradual changes to the current “social contract”? Do we need to expand our engagement to include broader views from civil society? What do we do if governments are not in agreement?  Sectors have a major role to play in mainstreaming governance reforms and are at the same time struggling with governance issues (e.g. approach, institutional and capacity weaknesses). How do we ensure some consistency across sectors?  Do we need to strengthen our internal quality assurance on governance issues for our strategic and operational products? How would we do that?
  • 8. Iraq Board of Supreme Audit (BSA) High-level Workshop Dec. 5 to 6, 2011, Beirut, Lebanon
  • 9. Pat Mc Kenzie, MNAFM Regional Manager, The World Bank
  • 10. On screen right: Susan Wheeler, Director of Communications, Office of the Auditor General of Canada Below: panelists
  • 11. Dr. AbdulBasit Turki, Chairman, Iraq BSA and Mr. Tony Hegarty, Chief Financial Management Officer, The World Bank
  • 12. A cross section of participants
  • 13. Mr. Magnus Borge, Director General, IDI, INTOSAI
  • 14. Panelist (left to right): Saskia Stuiveling, Zulkipli bin Abdullah and Mona El-Chami
  • 15. Mona El-Chami, Sr. Financial Management Specialist, MNAFM, The World Bank
  • 16. Saskia Stuiveling, President of the Netherlands Court of Audit (NCA)
  • 17. A cross section of participants
  • 18. A cross section of participants
  • 19. Dr Ala’a Kadum, Director General, BSA
  • 20. A cross section of participants
  • 21. Phylicia Mortey, Knowledge, Learning and Communications Coordinator, MNAFM, The World Bank
  • 23. Dr. AbdulBasit and a cross section of participants