IMPROVING BASIC SERVICES FOR THE BOTTOM FORTY PERCENT LESSONS FROM - PowerPoint PPT Presentation

IMPROVING BASIC SERVICES FOR THE BOTTOM FORTY PERCENT LESSONS FROM ETHIOPIA by by Qaiser ser Khan, Jean-Paul aul Faguet, t, Christ stopher opher Gaukl kler, and Wendms dmsya yamrr mrregne egne Mekash asha Pre resent ented ed at Lo London n School ool of Econo nomi mics cs and Politi tical cal Science nce Wednesda esday y Octob ober er 8, 2014

OBJECTIVES OF THE STUDY Esta tablis blish whether ether, , and to what t ext xtent nt, , there re exist ist dist stribu ributi tional onal pover erty ty and social al outcomes comes in access ss to basic ic decentralized ntralized service ice deliv iver ery y in Eth thiopi iopia. a. Assess ess if wored reda level l spend nding ing helps ps in reachin hing g sector or targe rgets ts, , parti ticula cularl rly for the poores est. t. Assess ess distr tribu ibuti tiona onal l impa mpacts cts of woreda eda level l spendin nding g on: wealth lth spatial tial equa uali lity ty gender er hist storic orically ally underser served ed groups. ups.

ETHIOPIA’S REGIONS

ETHIOPIA IS A BIG, DIVERSE, IMPORTANT COUNTRY Popul ulat ation ion ~92 million ion 98 et ethni hnic c groups; s; 93 langua uage ges Sus ustai ained ned growt wth h rate >10% 0% in recent cent years ars  Fastest growing country in Africa, and 3 rd fastest in the world One e of fa fastest est pover erty ty reduc ducer ers s in the e worl rld Rapid d strides ides towards ds MDGs  Child mortality fell 123  88/thousand  Primary NER rose 68%  82% in 2005-2010  Intere eresting sting empiric irical l cont ntext xt to study udy dece centra ntraliz lized d service ice provis ision ion

ETHIOPIA’S DECENTRALIZATION FRAMEWORK 1995 constitution titution decentralized ntralized to 9 r regional ional stat ates es and 2 c cities. ies.  Full l administ inistrat ativ ive e decentr traliz alization ation with th ext xten ensiv sive intergo ergovern ernmental mental fiscal al transf ansfer ers. Regio gions ns receiv eive e bl block k grants nts via formula mula ba based ed on ne n needs ds – including uding addit itional ional fundin ing g for histor oric ically ally less s develop loped ed areas. as. In 2002, decentralization ntralization exten ende ded d to ~850 ~850 woredas edas  expect ected ed to take e on t n the bu bulk k of service ice deliv iver ery y responsib ponsibilit ilities es. Woredas das receiv ive block k grants ants from m regio gional nal govern ernments, ments, also so govern erned d by formulas ulas (set t by regional ional govern ernments). ments). INTRODUCTION

ETHIOPIA’S PROMOTION OF BASIC SERVICES (PBS) PROGRAM Governmen ernment t & developmen opment t partne ner cooperation peration to speed ed Ethiopia opia to MDG targets. ts. Largest st donor suppor ported d program m in the world. Impl plement emented ed via local al governmen ernments. ts. Current nt (3 (3 rd rd ) ) phase se of PBS runs from 2013 13-2018, 8, esti tima mated ed cost st US $6.3 billion on split it 50:50 bet etween een GOE and developmen opment t partne ners. s. Uses es intergo governmen ernmenta tal fiscal cal transf sfer er mech chan anism ism to finan ance ce basic sic services ces in educat cation, on, health, th, agricu cultu ture, e, water suppl ply and rural roads s – constitu stituti tiona nally y decen entraliz tralized ed functi ctions ons imp mpleme ement nted ed at the local level el. These se transf sfer ers s finance nce recurrent nt costs ts (most stly y salari ries es of teacher hers, s, health th extensi nsion on worker ers, s, & agri ricul cultur ture e extensi nsion on worker ers). s). Primary respon onsib sibilit ity for these se basic sic services ices lies s with h woreda da governmen ernments. ts. Ethiopia opia is makin ing g record-brea eaki king ng progress ess to reach h the MDG targets. ts.

PBS APPROACH RELIES ON WDR 2004 MODEL OF SERVICE DELIVERY Stronger Voice Stronger Compact More Choice & Participation INTRODUCTION

CITIZEN VOICE: FINANCIAL TRANSPARENCY & ACCOUNTABILITY • Et Ethiop iopia ia ‐ sp speci ecific ic FTA A tools ls developed eloped • Explain budget process to citizens • Elicit citizen feedback on service delivery Translated into local languages • • Shared as example of Africa ‐ wide budget transparency initiative • Stron ong g governm ernmen ent t buy uy ‐ in in of FTA A approa oache ches s is now w institution titutionaliz lized d in the e PFM system em • More e than n 90% % of local l governm ernmen ents ts posti ting ng bud udge gets ts • 50% of servi vice ce deliv iver ery y un units s disclos closed d their eir plan, , targe gets s and achie ievem emen ents ts to the e pub ublic • More e than n 3000 00 local l governm ernment nt offici icials als traine ned d in FTA A tool ols s (entire ntire coun untr try). y). More e than n 270,0 0,000 00 citizens zens traine ned d in budge udget t and bud udge get t process cess so fa far. 9

CITIZEN VOICE: PBS SOCIAL ACCOUNTABILITY COMPONENT (ESAP2) IMPLEMENTATION PROGRESS From om a pilot ot of abou out t 80 wored redas through ough capacit ity y bui uilding ding and awarene reness ss activi viti ties es un under der ES ESAP AP1 1 as of 2010  SA A is now w imp mpleme lement nted ed in 224 4 wore redas das throu ough gh 49 CSOs s us using g over er 5 SA A tool ols s in five e sector ors s [tools ols: : CRCs, CSCs, Participatory Budgeting and Planning, Gender Based Budgeting and participatory PETS].  A t A tot otal al of 15 wore reda das have comple pleted d applicati tion on of the e tools ls and moved ed to the e level el of inter erface ce meeti tings ngs - a forum for service providers [373], citizens representatives [3.447] to discuss joint serviced improvement plans.

DATA Fiscal cal & C Census sus Stat atistical istical analysis ysis using ng cross ss-time time pooled ed data a for all woredas edas.  FY 2008-2011 so far. Will expand to 1992-2013. Database abase consis sists ts of 727 woredas edas, , 85 zones es and 10 regions ions  Demographic data from 2007 census  727 woredas  Database covers the whole country – all people, all space DH DHS Analysis ysis of DHS S data a from m 2006 2006-2011 allo lows ws a natural ural experiment periment on the impact act of health lth ext xtensi nsion n worker ers. s. METHODOLOGY

METHODOLOGY Three ree key y stages. es. Stage age 1 examine mines the e effects ects of wored reda-le level el spendin nding g on results ts in Ed Educ ucat ation, ion, Health th and Agricu cult lture. ure. =  + +  ln +  R m + +  C m +ηlnK mt +  mt lnO mt mt = lnE mt mt + mt + τ t + mt (1) (1) lnO = = different rent out utcome come variables ables: : net et enroll ollment ment rate, e, antena enata tal care us usage, e, capturin uring key y out utcom comes es in each h sect ctor or. . E = E = yearly arly expend enditu ture re per capita ta in the e relevant ant sector; or; K = capital l expen endit diture ure per capita, a, R = percen entage tage of rur ural popul ulati tion on in each ch wored reda; ; C = vector or of demo mogr grap aphi hic c contr ntrols ols (rur ural/u al/urb rban, n, et ethnici hnicity ty, region ion). ). R and C are from om census nsus and so time-invarian riant. t. Stages ges 2 & 3 3 analyze yze expen endit ditures ures and results ts by wealth alth qui uintil iles. es.

DISTRIBUTION OF WOREDA EXPENDITURES BY SECTOR

EDUCATION Effec ect t of Log of Per Capita ita Educatio ation Per capita ta expend penditure ture is Expen endi ditu ture e on Log of Educatio ion Outcomes mes strong ongly ly associ ociat ated ed with h rising ng net et enrolme olment nt rate, , Indep ep. . Depen enden dent Coef efficien icient/ Signif ific ic and also so fal falling ing pup upil teach cher er Var ariab iable le Var ariab iable le/ / (SE) ance Indicat icator or ratios. os. One e dollar lar increa rease se in per capita a Log Log of Net 0.2705 *** Expend. (.0281) Enrollment educ ucat ation ion spendin ending g at Rate wore reda da level el increa rease ses net et enrolme olment nt rate by 3.6%. 6%. Log of -0.2242 *** Pupil- (.0203) Teacher Ratio Notes es: Based ed on on Cr Cross-ti time pooled ooled da data taset et fr from om 2008-2011. St Standa andard er error ors giv given en in in parenthe arenthesis. Signif Signific icanc ance is is def define ined as as: *** *** at at 1% level el. Num umber of of Ob Obser ervat ations ions: 2583 for or NER ER and and 2695 for PTR.