Implementation: Delivering Results to Transform Caribbean Society
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A presentation delivered by Dr. Justin Ram, Director of Economics at the Caribbean Development Bank during the Caribbean Leadership and Transformation Forum in Bridgetown, Barbados on September 18, 2017.
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Implementation: Delivering Results to Transform Caribbean Society
- 1. IMPLEMENTATION: Delivering Results to Transform Caribbean Society Dr. Justin Ram Hilton Barbados Resort Bridgetown, Barbados September 18, 2017
- 2. AGENDA 01 Regional Challenges 02 Implementation Deficiency 03 Implementation: Utilising Delivery Units 04 Designing a Delivery Unit for the Caribbean 05 Next Steps and CDB Support
- 3. Pulse Of The Caribbean Macroeconomic Challenges Low growth- average 1.1 % over a decade High debt- regional average 77% of GDP Low commodity prices and declining reserves Low Productivity and Competitiveness At 67 out of 190, Jamaica is the highest Caribbean economy in the WB Ease of Doing Business rankings Large infrastructure gaps Weak governance Inefficient and costly transport links and high energy costs Environmental Threats High annual natural disaster costs – on average ~2% of GDP Low insurance payouts- parametric insurance do not fully cover losses Need for more robust building codes Need for climate change adaptation mechanisms Poor Human Development Outcomes High poverty (43.7%) and youth unemployment (18-47%) Poor education outcomes, skills mismatch and brain drain High crime and citizen insecurity
- 4. ALTERNATIVE ECONOMIC TRANSFORMATION STRATEGIES TRADITIONAL PATHS TO ECONOMIC DEVELOPMENT Alternative Strategies: Inclusive Growth, Low Debt And Prudent Fiscal Management Japan 1% | 239% Figures: Real GDP Growth Rate | Debt/GDP U.K. 1.8% | 89% Italy 0.9% | 133% U.S. 1.6% | 107% Singapore 2% | 112% Australia 2.5%| 41% Denmark 1.1% | 40% Malaysia 4.2% | 56% New Zealand 4.0% | 30% Sweden 3.3%| 42% Switzerland 1.3% | 45% Greece 0% | 181% Sources: Idris Jala, WBG, Country Reports
- 5. AGENDA 01 Regional Challenges 02 Implementation Deficiency 03 Implementation: Utilising Delivery Units 04 Designing a Delivery Unit for the Caribbean 05 Next Steps and CDB Support
- 6. Implementation Capacity Stunts Regional Delivery Delayed or ineffective project implementation Shared Regional and International Challenges Weak Implementation Capacity Insufficient training Obsolete personnel management systems Ineffective results accountability systems Weak decision enforcement culture Scarce financial resources Elaborate and promising development plans
- 7. Vision Statements Barbados A fully developed society that is prosperous, socially just and globally competitive. Grenada A caring society that promotes human dignity and celebrates sustainable economic and social progress for all. St. Vincent & the Grenadines To improve the quality of life for all Vincentians. Belize A country of peace and tranquility, where citizens live in harmony with the natural environment and enjoy a high quality of life. Jamaica The place of choice to live, work, raise families, and do business. The Bahamas A Nation Moving Forward, Upward, Onward Together. Trinidad & Tobago We are a united, resilient, productive, innovative, and prosperous nation with a disciplined, caring, fun-loving society comprising healthy, happy and well- educated people and built on the enduring attributes of self-reliance, respect, tolerance, equity, inclusion and integrity…
- 8. BMCs PSIP Performance 2012-2016 Country Public Investment Implementation Rate Capital Expenditure (% of GDP) ECCU 35% - 75% 5.0 JAMAICA 86% 2.0 TRINIDAD 61% 4.6 GUYANA 20% 7.3 BARBADOS 33% 2.3 Source: BMCs Budget reports, IMF Article IV and Staff Calculation,2017
- 9. Observations from Development Partners Delays in loan effectiveness Large undistributed balances for projects under implementation Lengthy project implementation periods
- 10. CDB Portfolio Performance 2012-2016 104 114 115 114 124 119 144 106 96 91 97 84 129 76 71 88 - 100 200 300 400 500 600 700 - 100 200 300 400 500 600 700 $’million 19% 22% 21% 21% 25% 28% 22% 20% 17% 17% 17% 15% 19% 12% 11% 12% Actual Disbursement Undisbursed Balance TRENDS IN DISBURSEMENT: 2001-2016 (excluding PBLs)
- 11. AGENDA 01 Regional Challenges 02 Implementation Deficiency 03 Implementation: Utilising Delivery Units 04 Designing a Delivery Unit for the Caribbean 05 Next Steps and CDB Support
- 12. Essential Elements for Success New Ways of Working Transformational Leadership Source: PEMANDU, 2017
- 13. Performance Management and Delivery Units Delivery units are small teams that help leaders to stay focused on the delivery of key policy priorities Main functions: Track Progress Investigate and Intervene to Solve Problems
- 14. Identifying the Purpose What are you trying to achieve?01 How are you going to achieve it?02 How do you measure success?03 How will you change course if you are not on target? 04 How can the DU help?05 OBJECTIVES PROGRESS Adapted from: Barber, 2015
- 15. Delivery Units Around the World 5 Countries Source: Gold, 2017
- 16. Key Elements for Success Strong, highly visible leadership Clear Mandate LABS to develop implementation plans and ownership Cross government and stakeholder ownership and partnership 90% Relentless Implementation Collect real time data; Establish routines to review effectiveness; Measure success using data Source: Gold, 2017
- 17. AGENDA 01 Regional Challenges 02 Implementation Deficiency 03 Implementation: Utilising Delivery Units 04 Designing a Delivery Unit for the Caribbean 05 Next Steps and CDB Support
- 18. Setting up a DU: Best in Class Performance Management Set direction and context Establish clear accountabilities and metrics Create realistic budgets, plans, and targets Track performance effectively Hold robust performance dialogue Ensure actions, rewards, and consequences Source: Barber et al., 2011
- 20. Delivery Unit Establishment Inside Government (Government Unit) Operationalise the implementation of Government priorities Outside Government (Special Purpose Vehicle) Provide services to DU (financial, procurement, recruitment, etc.) Source: PEMANDU, 2017
- 21. Illustrative Team Structures Lead Lead Lead Lead Lead Delivery Team Delivery Team Delivery Team Delivery Team Delivery Team PRIORITY AREAS Area 1 Area 2 Area 3 Area 4 Area 5 FlatStructure Possible team members: Directors, Managers, Analysts, Statisticians Source: Adapted from PEMANDU, 2017
- 22. AGENDA 01 Regional Challenges 02 Implementation Deficiency 03 Implementation: Utilising Delivery Units 04 Designing a Delivery Unit for the Caribbean 05 Next Steps and CDB Support
- 23. Next steps Country Diagnostics High Level Workshops Institutional Design of DU Establish/ Strengthen DU Implementation Support
- 24. What has CDB done and is doing? Caribbean Leadership and Transformation Forum (CLTF)– September 18-19th, 2017 Today Upcoming Developing MOOC with partners UWI, SUNY, and PEMANDU on Leading Transformation to Achieve the SDGs. Presentation at the 38th CARICOM Heads of Government meeting – July 4-6, 2017 July Publication to develop CDB strategies for engagement with BMCs on Implementation and Delivery Units (DU)
- 25. How will CDB support? Conduct diagnostic assessments 1 Technical and Financial Assistance TA grants | TA loans | Policy-based loans | Contingent grants, etc. Developing DU Support Facility Design and establish country-specific DUs 2 Support the DU and the implementation of key projects/ priorities 3
- 26. Let us shift focus towards IMPLEMENTATION Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success. Pablo Picasso
Editor's Notes
- Many small island states are highly vulnerable to storm damage and some face a perilous future as a result of sea level rise.
- Workshop presenters will discuss these challenges again tomorrow
- I will focus on the New Ways of Working Transformational Leadership will be covered by our next speaker, Idris Jala of PEMANDU
- The delivery unit model first emerged in the UK, in 2001, with the creation of the now-defunct PMDU. It owes much to the ‘stat model’ of performance management developed by the New York Police Department in the 1990s, where a small team gathered and analysed police data, mobilised resources in response to identified problems and relentlessly scrutinised performance until outcomes improved. These tools and techniques were adapted and used by Sir Michael Barber in the Department for Education and Employment’s Standards and Effectiveness Unit from 1997. In 2001, frustrated by the lack of headway made on Labour’s manifesto commitments in his first term in office, and the absence of a mechanism for keeping track of departmental progress in delivering on core priorities, Tony Blair invited Barber to head up a new delivery unit in the Cabinet Office – the PMDU. The PMDU underwent many changes in form and function before being axed by the incoming Coalition Government in 2010. However, in the early years, the unit was focused on tracking and improving performance in priority areas around health, education, security and transport.
- Delivery units are a global phenomenon that shows no sign of letting up. Over half of today’s centre-of-government units at national and regional levels have emerged in just the past two years, and other governments, the most recent being in Canada under the new Prime Minister, Justin Treadeau. Most Dus are derived from UK or Malaysia models.
- Delivery team includes: Directors Deputy Directors Senior Managers Managers Senior Analysts Analysts
- Pilot economies: TCI, TNT (to be confirmed)