Managing the Politics of Reform: A Case Study on Coalition Building and Public Procurement Reform in the Philippines The World Bank Political Economy.

Managing the Politics of Managing the Politics of Reform: A Case Study on Reform: A Case Study on

Coalition Building and Public Coalition Building and Public Procurement Reform in the Procurement Reform in the

PhilippinesPhilippines

The World Bank

Political Economy BBL SeriesPolitical Economy BBL SeriesSocial Development NetworkSocial Development NetworkThe World BankThe World BankWashington D.C.Washington D.C.

Presented by:Presented by:

Ed CamposAdviser, WBIVP

June 18, 2005June 18, 2005

Presented to:Presented to:

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PREM Public Sector Governance 2

Promoting Reforms: Changing the Promoting Reforms: Changing the LandscapeLandscape

Status Quo

(Bad Equilibrium)

DesiredDesiredStateState

(Good Equilibrium)

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Status Quo

(Bad Equilibrium)


(Good Equilibrium)ConditionalityConditionality

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Status Quo

(Bad Equilibrium)


(Good Equilibrium)

“ “Well Oiled Well Oiled Machine”Machine”

Reform coalitionReform coalition

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Background: Why Procurement Reforms?Background: Why Procurement Reforms?

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From From ‘‘Shot GunShot Gun’’ ……

The Great Wall of CorruptionThe Great Wall of Corruption

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…… to to ‘‘Laser BeamLaser Beam’’ ……

of Corruption

of CorruptionThe Great Wall

The Great Wall

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Background: Background: Why Procurement Why Procurement Reforms?Reforms?

Government procurementGovernment procurementand tax collection are and tax collection are perceived to be the majorperceived to be the majorsources of corruption:sources of corruption:

4 of the top 5 most corrupt agencies featured prominently ingovernment contracting Approximately 20% of govt.contracts go to kickbacks/ commissions Equivalent to P21 B in 2001 just for the national government; much larger if BOT transactions and local government are included

Survey FindingsSurvey Findings Legal Foundations Legal Foundations a Messa Mess

Over 100 laws, Over 100 laws, regulations, regulations,

executive orders etc.executive orders etc. governing governing

public procurementpublic procurement

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MMAAJJOORR FFEEAATTUURREE:: CCCUUUTTTTTTIIINNNGGG DDDEEELLLAAAYYYSSS CCCIIIVVVIIILLL WWWOOORRRKKKSSS

Pre-bid Conference

Pre-qualification (5-7 months)

(2 weeks)

Bid Analysis (1-3 months)

Award of contract (1 - 1.5 months)

7.5 to 7.5 to 12 12

monthsmonths

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MMAAJJOORR FFEEAATTUURREE:: CCCUUUTTTTTTIIINNNGGG DDDEEELLLAAAYYYSSS CCCIIIVVVIIILLL WWWOOORRRKKKSSS

Eligibility Check (1 day)

Pre-bid Conference (2 weeks)

Bid Analysis (1 - 4 weeks)

Award of contract (1 month)

Post-qualification (1 - 2 weeks)

2 to 3 2 to 3 monthsmonths

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Getting from “bad” to good”?:Getting from “bad” to good”?:Creating a Reform CoalitionCreating a Reform Coalition

• How toHow to unify the Executive unify the Executive branch?branch?• How toHow to mobilize civil society mobilize civil society groups?groups?• How toHow to link CSOs and link CSOs and reformers in government?reformers in government?• How toHow to recruit “champions” recruit “champions” in the Legislature?in the Legislature?

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Getting from “bad” to good”?:Getting from “bad” to good”?:Creating a Well Oiled MachineCreating a Well Oiled Machine

• How to unify the Executive branch?

• How to mobilize civil society groups?

• How to link CSOs and reformers in government?

• How to recruit “champions” in the Legislature?

• Ownership is critical

• “Shoot down” workshop

• Formation of TWG

• Revival of dormant GPPB

• Technical analysis matters

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• Disparate, diffused CSOs

• Formation of PWI

• Strategic Bank support

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PWI became the cogcog that tied all parties





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Mobilizing Mobilizing PublicPublic Support Support

Transparency and Accountability Transparency and Accountability Network (20+ member groups)Network (20+ member groups)

Walang Ku-Corrupt Movement Walang Ku-Corrupt Movement (Youth)(Youth)

PAGBA PAGBA &&AGAPAGAP(w/in (w/in Gov’t)Gov’t)

CBCP(Church)

Philippine Contractors Association(private sector – main stakeholder)

Local chambers of Commerce (Private sector)

Drew other civil society groups Drew other civil society groups into the advocacy efforts and into the advocacy efforts and

coordinated the activitiescoordinated the activities

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champions:champions: “investing “investing for the future”for the future”

strategic positionsstrategic positions





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Usec DBMUsec DBMUsec PWMUsec PWM

Director DBMDirector DBMAdvisory teamAdvisory team

PWIPWI

Sec DBM Sec DBM

Other UsecsOther UsecsDBMDBM

Leadership StructureLeadership Structure

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PWIPWI

Sec DBM Sec DBM

Gov’t experts

Gov’t experts

Gov’t experts

Gov’t experts

Gov’t experts

Gov’t experts Gov’t experts

Gov’t experts

Gov’t experts

Gov’t experts


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PWIPWI

Sec DBM Sec DBM


Gov’t experts

Gov’t experts

Gov’t experts

Gov’t experts

Gov’t experts


Gov’t experts

Gov’t experts

Gov’t experts

TANTAN

TANTAN U StudentU Studentcouncilscouncils

Radio/TV histsRadio/TV hists

BishopsBishops

PAGBA PAGBA AGAP AGAP

PCAMBC

PCCIjournalistsjournalists

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PWIPWI

Sec DBM Sec DBM

Chair AppLower house

Chair Cons Rule

Senate


Gov’t experts

Gov’t experts

Gov’t experts

Gov’t experts

Gov’t experts


Gov’t experts

Gov’t experts

Gov’t experts

TANTAN



BishopsBishops

LH App Staff

Senate CR Com Sraff


PCAMBC

PCCI

League of provinces

journalistsjournalists

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PWIPWI

Sec DBM Sec DBM

Chair AppLower house

Chair Cons Rule

Senate


Gov’t experts

Gov’t experts

Gov’t experts

Gov’t experts

Gov’t experts


Gov’t experts

Gov’t experts

Gov’t experts

TANTAN



BishopsBishops

LH App Staff

Senate CR Com Sraff


PCAMBC

PCCI

League of provinces

journalistsjournalists

Comm

unica

tions

Comm

unica

tions

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Sustaining the Reform Process:Sustaining the Reform Process:The Media CampaignThe Media Campaign

Became the ’Glue’’Glue’ that linked reformers in government, civil society, legislators, and the general public

“Public relations drive + advertising blitz + political campaign”

Needed local company with special skills to carry this out …

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Reaching OutReaching Out

Radio: The Radio: The swath & the swath & the

daggerdagger

The Media Campaign:The Media Campaign:The Communications The Communications

StrategyStrategy

Print Media: Amplifying the problem

TV: Raising the ante

Advertising: Creating Advertising: Creating a ‘brand name’a ‘brand name’

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The World Bank, the Department of Finance, and the Transparency and Accountability Network Foundation, Inc. (TAN), a civil society anti-corruption coalition, signed a grant agreement amounting to US$1.01 million to promote grant agreement amounting to US$1.01 million to promote the adoption of transparent and participatory procurement the adoption of transparent and participatory procurement mechanisms, mechanisms, which can help improve the delivery of poverty reduction programs in poor municipalities in the country.

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Requisites of Change ManagementRequisites of Change Management

John Kotter, 1996

CHANGE

establishing a sense of urgency

11

creating a guiding coalition

22

developing a vision and strategy

33communicating

the change vision

44

empowering broad based

action55

generating short term

wins66

consolidating gains &

producing more change

77

embedding change in the

culture

88

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Implications for DonorsImplications for Donors

May need to “spice up” the way we provide May need to “spice up” the way we provide technical assistance and advicetechnical assistance and advice

Need to focus more on implementation, Need to focus more on implementation, steps to make reforms happen in complex steps to make reforms happen in complex political environments political environments -- in addition to -- in addition to technical worktechnical work

Have to find creative ways to help finance Have to find creative ways to help finance this processthis process

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Thanks!Thanks!

Managing the Politics of Reform: A Case Study on Coalition Building and Public Procurement Reform in the Philippines The World Bank Political Economy.

Documents

procurement reforms

reform coalition

public procurement reform

civil society groups

landscapepromoting reforms

delays civil worksgetting

reform process

politics of reform