Issues in economic governance:Why does program delivery vary
across states?
Regina BirnerProfessor of Social and Institutional Change in Agricultural
Development, University of Hohenheim, Germany
IFPRIState-level Hunger
Index
Why do development problems persist in spite of considerable investment by
the government to address them?
What to do about it?Learning from the reform experience of
different states
Overview
1. Introduction• Variation in governance across states
2. Conceptual framework3. Insights from empirical research in Bihar &
Karnataka• Rural services and program delivery• Survey and case study findings
4. Policy implications
India Today - State of States Ranking (Score)
Composite of 8 economic, social and governance indicators
India Today 2009
Government of India (2002). National Human Development Report 2001. New Delhi: Planning Commission. (Composite of five indicators)
Gender Equality
Perceptions of CorruptionFindings from a Transparency International survey
Transparency International India – Center for Media Studies (2005)
Absentee rates of personnel in primary schools and health care centers
Source: World Development Report 2004
Access to agricultural extension
Source: NSSO State of Indian Farmer Survey (2005:6)
Other types of indicators
• Examples:• Actual use of funds from centrally sponsored schemes,
such as the National Rural Employment Guarantee Scheme
• For example, Bihar did not use substantial amounts due to problems to comply with implementation regulations
• Access to services measured using Citizen Report Cards (Public Affairs Centers)
• Targeting performance in government schemes, such as the Public Distribution System or the Integrated Child Care Services Scheme (ICDS)
Why does program implementation differ
across states?
Conceptual framework
Conceptual Framework
Performance of services and
programs* Priorities* Quality
* Efficiency* Equity
* Sustainability
Ability of citizens to
demand and supervise services
Capacity of administration to finance and
supply services
good fitCharacteristics of service providers
Characteristics of local
communities
good fit Demand-side reform
approaches
Supply-side reform
approaches
Contextual factors•Education levels•Social structure (Inequality, exclusion)•Political conditions •Level of economic development
Vicious cycle
Reforms to improve capacity for service
delivery(e.g., staff, qualification,
incentives)
good fit
Reforms to improve voice &accountability(e.g., reservation rules,
community empowerment)
Understanding the problems of program implementation:
Example: National Rural Employment Guarantee Scheme (NREGA)
Case study: Bihar
Study team: Regina Birner, K.G. Gayatrhidevi (ISEC), Madhushree Sekher (TISS),
Katharina Raabe, Neeru Sharma (ex-IFPRI), Amrita Shilphi (Institute of Dalit Studies)
ApproachStudy site: District Nalanda, Bihar
• Village case study• Focus group: Gram Panchayat and Block Panchayat
representatives, villagers, Block public official• Process Net-Map with focus group
• Process of implementing NREGA is mapped step-by-step on a large sheet of paper, based on focus group information
• Arrows are used to describe actions needed for implementation• Carom board pieces are used to visualize risks of leakage and other
implementation problems• Follow-up discussions with different stakeholders
• Workers• Gram Panchayat representatives• Public officials
Zilla Parishad
Labor GroupFarmers’ Committee
Gram Panchayat
Block Program O.
Employment Worker
Block Dev. Officer
Block Panchayat
Overseer
1
1. Decide about NREGA activity, inform
2
2. Send proposal for approval
3
3. Inform about approval
4
4. Inform about start of work
5
5. Ask for estimate
6
6. Goes to village, makes estimate 7. Informs about estimate
7
8
8. Calls, gives advance money
9
9. Informs about advance
10
10. Inform to get people ready
11
11. Issue employment cards, maintain attendance sheet
12
12. Supervises money flow
13
13. Measures work (maintenance book)
14
14. Informs about work done
15
15. Provides money for work (signs checks)
16
16. Informs about money received17. Distributes money
(3)
(3.) (System before hiring Block Program Officer)
Zilla Parishad
Labor GroupFarmers’ Committee
Gram Panchayat
Block Program O.
Employment WorkerBlock Panchayat
Overseer
1
1. Decide about NREGA activity, inform
2
2. Send proposal for approval
3
3. Inform about approval
4
4. Inform about start of work
5
5. Ask for estimate
6
6. Goes to village, makes estimate 7. Informs about estimate
7
8
8. Calls, gives advance money
9
9. Informs about advance
10
10. Inform to get people ready
11
11. Issue employment cards, maintain attendance sheet
12
12. Supervises money flow
13
13. Measures work (maintenance book)
14
14. Informs about work done
15
15. Provides money for work (signs checks)
16
16. Informs about money received17. Distributes money18. Last year
Risk of leakage(in total, 30% ofNREGA funds)
10
88
Governance reforms in Bihar under Nitish Kumar (from 2005 onwards)
• “Supply-side reforms”• Bringing back experienced IAS officers• Modernizing administrative procedures, e.g., computerizing the treasury
• “Demand-side reforms”• Far-reaching decentralization and community empowerment
• Gram Panchayat (GP) councils get authority to hire and supervise primary school teachers and aganwadi workers
• User groups have to sign attendance sheets prior to salary payments• Challenge: GP presidents and council members demand bribes• 50% reservation for women in Panchayati Raj institutions• Challenge: Build capacity of elected representatives
• Results: Too early to judge – governance reform is a long-term process• Conclusions: Political will at the top level matters!
• But need to address the challenges inherent in each reform
Complaint mechanism – Bihar (Madhubani)
Effort to improve government responsiveness * Driven by the Chief Minister* People come to District Offices to have problems resolved on the spot* Evidence of challenges of this approach
Governance reforms in Karnataka
Results from a surveywith ISEC and TISS
Study team: Regina Birner, K.G. Gayatrhidevi, Nethra Palaniswamy, Katharina Raabe and
Madhushree Sekher
Background
• Karnataka: Leader in decentralization• Decentralization precedes constitutional reforms• Transfer of authority for funds, functions and
functionaries to local governments for all subjects• Strong emphasis on training elected Panchayati Raj
members using innovative methods• Efforts to empower community-based user groups
• Study approach• Case study to understand local procedures• Survey among households (ca. 1,000), community-
based organizations, elected officials and administrative staff
Survey in five sectors in Karnataka 2008Department Service Field-level
staffNo Senior
officialsNo User
organizationNo
Agriculture Agricultural extension
Agricultural Extension Workers
41 Assistant Director of Agriculture
34 Farmer Coop.
20
Animal Husbandry
Livestock services
Veterinary Assistants
40 Assistant Director, Animal Husbandry
30 Dairy Coop. 29
Food and Civil Supplies
Public distribution system
Food Inspectors
34 Block Food and Civil Supplies Officer
26 VigilanceCommittee
40
Women and Child Development
Anganwadi (child care) centers
Anganwadi Workers
50 Child Development Project Officer
36 Women’s group
37
Rural Development and PR
Drinking water and sanitation
Junior Engineers
41 Assistant Executive Engineer
29 Water and Sanitation Committee
50
Total 206 155 176
Challenge of demand-side reforms: Targeting Problems of Local Public Expenditures
• Analysis of fiscal grants to Gram Panchayats (by Nethra Palaniswamy and Nandini Krishnan)
• Question: • Is there elite capture in the allocation of funds to Gram
Panchayats and to villages within Gram Panchayats?• Allocation to Gram Panchayats: Formula• Allocation to villages within Gram Panchayats:
Decision of Panchayat council without rules or formula (negotiation)
• Results• Formula-bound targeting to Gram Panchayats works well• Elite capture for targeting at the village level
Allocation of expenditure across villages
How inclusive are community-based organizations?
Page 25
Challenges on the supply side:Age profile of frontline service providers
Page 26
Education level of service providers
Page 27
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Agricultural extension worker (N=41)
Veterinary assistant (N=40)
Junior engineer (N=41)
Food Inspector (N=34)
Anganwadi worker (N=51)
Middle school High school Diploma/vocational training Pre-degree Bachelor Master
Only 17% in agriculture or biology
Constraints identified by service providers(Karnataka)
Junior Engineer
Agric. Extension Worker
Vet. Assistant
Food Inspector
Angan-wadi Worker
Lack of staff 39% 88% 75% 65% 4%
Political interference
51% 51% 40% 71% 6%
Lack of funds 27% 7% 18% 12% 12%
Inadequate work environment
10% 5% 6% 10% 8%
Complex admin. procedures
7% 7% 8% 3% 2%
Assessment of severity of constraints
Severity of
constraintJunior
Engineer
Agricultural Extension Worker
Veterinary
AssistantFood
InspectorAnganwadi
Worker
Lack of staff Moderate 38% 11% 23% 45% 100%
Strong 63% 89% 77% 55% 0%
Political interference
Weak 5% 0% 0% 4% 0%
Moderate 38% 67% 63% 46% 33%
Strong 57% 33% 38% 50% 67%
Analysis of the reports of the Second Administrative Reform Commission:•Few suggestions that address political interference
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Junior Engineer
Agricultural Extension Worker
Veterinary Assistant
Food Inspector
Anganwadi Worker
The staff of your Department is hired purely on the basis of merit.
Strongly agree 17 12 35 29 46Agree 61 80 50 56 50Disagree 7 2 8 9 4Strongly disagree 10 0 5 0 0
The staff of your
Department is promoted
purely on the basis of merit.
Strongly agree 2 0 8 9 32Agree 17 10 13 6 32Disagree 59 83 58 71 20Strongly disagree 22 7 23 15 6
Staff perceptions on recruitment and promotion (percentage of respondents)
Conclusions
• Evidence that service provision and program implementation differs widely across states• Capacity of citizens to demand services and ability of the state
to deliver services differs across states• Risk of a vicious cycle
• Opportunities to break the vicious cycle• Demand-side governance reforms• Supply-side governance reforms
• Insights from the research • Political incentives crucial – need to understand them better!• Both demand-side and supply side reforms are needed.• Each reform involves its own challenges!• Good governance is a matter of checks and balances!
Thank you!
State of states ranking - methodology• Prosperity and budget
• percentage of population above poverty line, percentage of urban population, per capita capital expenditure, inflation, per capita debt, per capita GSDP, per capita revenue of SEB;
• Law and order • (number of policemen per lakh people, ratio of cases filed to pending
cases in district and lower courts, share of murders, kidnappings, rapes and molestations to total cognisable crimes);
• Health • (infant mortality ratio or imr, ratio of male IMR to female IMR,
percentage of births assisted by trained personnel, percentage of homes having tap water as principal source of water, registered doctors per million population, sex ratio and per capita expenditure on health and family welfare by state Government)
State of states ranking• Education
• (literacy rate, proportion of 10-plus children having completed primary education, ratio of boys to girls in elementary school, teacher-pupil ratio and expenditure on elementary education per 6 to 14-year-old);
• Consumer market • (households owning TVs, number of affluent households in urban and
rural areas, per capita deposits in banks and per capita ownership of two-wheelers);
• Agriculture • (percentage of cultivated area under cash crops, agriculture GSDP per
rural population, agriculture electricity consumption per rural population, foodgrain yield, loans extended to farmers and net irrigated area);
• Infrastructure• (percentage of homes with electricity, percentage of villages connected
with pucca roads, per capita road length, bank branches, LPG connections, post-offices and telephones);
State of states ranking• Investment
• (per capita capital expenditure, commercial bank credit and gross capital formation in manufacturing, ratio of factories to number of disputes, ratio of industrial workers to urban 15-59 population, and percentage of sickness).
“Towers” of carom game pieces visualize levels of leakage in which
different actors could be involved
Arrows show implementation
activities
Actors involved are identified and marked on sheet of paper
Fotos: E. Schiffer
Professional contacts of extension agents (by development level of Block)
Page 38
during past year
Challenges of demand-side reforms: Membership in community organizations
Page 39