The Sector Governance Approach with Jean Bossuyt

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Assessing corruption : Using political economy approaches (in sectors)

EuropeAid Anti-corruption seminar

24-26 June, Brussels

Jean Bossuyt (ECDPM)

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What is political economy analysis?

• Political economy analysis is concerned with the interaction of political and economic processes in a society: the distribution of power and wealth between different groups and individuals and the processes that create, sustain and transform these relationships over time (OECD/DAC)

• Can promote development effectiveness by contributing to an increased understanding of contextual factors into account

• Is an essential tool for capturing informal realities “behind the façade” in governance matters (such as corruption)

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What do we mean by Governance?

• State’s ability to serve its people

• Public functions carried out

Refers to:

• rules, processes, behaviour:

• interests are articulated

• resources managed

• power exercised

(Communication on Governance and Development 615/2003)(Communication on Governance in the European Consenus on

Development 421/2006)

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The different dimensions of governance

• Governance clusters:

democratisation, human rights,

decentralisation, rule of law,…

• Governance principles:

transparency, accountability,

participation, inclusion

• Core governance concerns:

rules, interests, power,

resources

Core governance

concerns

Governance clusters

Governance principles

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WHY ADDRESSSING GOVERNANCE AT SECTOR LEVEL?

USING POLITICAL ECONOMY ANALYSIS

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The challenge of weak governance in sectors:

state

o Leakage of fundso Sub-optimal spendingo Accountabilityo Lack of demando Political toolo Powero Institutional capacities

citizens

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Governance for better procurement procedures....

Doctor’s surgeryin Central Africa

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Avoid the denial strategyAvoid the denial strategy

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Core governance

concerns

Governance clusters

Governance principles

OPENING THE “BLACK BOX”

TOOLSFOR

ANALYZING SECTOR

GOVERNANCE

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The methodology – analyzing sector governance

1. Some guiding principles

2. The analysis framework

3. Four practical steps to move forward

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1. Guiding principles

• The purpose of the governance analysis must drive the choices, hence must be defined – cfr GOVNET

o Donor decisions and concernso General partner-donor cooperationo Support partner country governance reforms

• Build on what is available – and try not to burden the existing consultative mechanisms at sector level• Make public more than you think• It’s a continuous process • Combine governance and sector expertise

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2. The governance analysis framework

Political system/government

Rule making and executive actors at

different levels

Non-state actorsCitizens, voters, consumers, user groups economic

agents, elites, media…

Checks and balances

organisationsSupervise sector organisations or

handle complaints (auditors, judiciary,

ombudsmen,…)

Frontline service providers

Public and private providers delivering

services

Core public agencies

Sector ministries, agencies with regulatory or

supporting roles, …

Context

Donors, international organisations

Influence on sector governance and accountability

relations

GovernanceAccountability

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3. Four steps to analyse sector governance: the methodology

• Step 1:Assessing the Context of Sector Governance

• Step 2:Mapping the Actors – Their Interests, Power and Incentives

• Step 3: Assessing Governance and Accountability Relations

• Step 4: • Summing up: analysing governance reform readiness

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STEP 1

CONTEXT

Context

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STEP 1 – typical questions include:

• What is the degree of political attention a particular sector receives? • Are there ongoing public sector reforms?• Is there a strong judiciary at national level? • What are the features of public service performance and

management? • Are studies available on the political economy of

corruption?• How is decentralisation pursued at national level? • Are there international obstacles that affect sector

governance negatively?

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STEP 2

ACTORS Political system/government

Rule making and executive actors at

different levels

Non-state actorsCitizens, voters, consumers, user groups economic

agents, elites, media…

Checks and balances

organisationsSupervise sector organisations or

handle complaints (auditors, judiciary,

ombudsmen,…)

Frontline service providers

Public and private providers delivering

services

Core public agencies

Sector ministries, agencies with regulatory or

supporting roles, …

Context

Donors, international organisations

Influence on sector governance and accountability

relations

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STEP 2: points of attention

• Six clusters of actors: o Non-state actorso Checks and balances organisations (e.g. Anti-corruption

bureau’s)o Political system/governmento Core public agencieso Frontline service providerso Donors, regional and international organisations

• How to go about it?o Avoid the summing up –long list and little insighto Focus on interests, power and incentiveso Key linkages

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STEP 3

GOVERNANCE AND ACCOUNTABILITY RELATIONS

Political system/government

Rule making and executive actors at

different levels

Non-state actorsCitizens, voters, consumers, user groups economic

agents, elites, media…

Checks and balances

organisationsSupervise sector organisations or

handle complaints (auditors, judiciary,

ombudsmen,…)

Frontline service providers

Public and private providers delivering

services

Core public agencies

Sector ministries, agencies with regulatory or

supporting roles, …

Context

Donors, international organisations

Influence on sector governance and accountability

relations GovernanceAccountability

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Step 3: Analyzing governance and accountability relations between actors

Mix of governance mechanisms: Hierarchy Patrimonialism Market Networks

Four other aspects: Information about and clarity of governance? Responsiveness of governance? Accountability set-up and responsibility? Capacity for governance and accountability?

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Governance mechanisms - patrimonialism

PatrimonialHierarchies Markets Networks

Basis of relationships

LoyaltyEmployment relationship

Contracts and property rights

Resource exchange

Degree of dependence

Dependence Dependent Independent Interdependent

Type of Accountabilit

y

Informal between patron

and client

Formal financial and

administrative accountability

Horizontal through market

mechanism

Complex and blurred

accountability

Medium of exchange

Patronage Authority Prices Trust

Means of conflict

resolution & coordination

Submission or Exit

Rules & commands

Haggling, courts Diplomacy

Culture Custom Subordination Competition Reciprocity

Limitations of

governance

Bound only by other persons; arbitrariness

Bound by institutions,

predictability

Bound by efficiency

Bound by degree of consensus

achieved

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Example: Transport sector in “Assima”

• Sector objective: reduce cost of transport

• Main obstacle: monopoly of transport sector• Quantity of CSP in transport

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New openings in context

* Using windows of opportunity given by new players: HoD, Ministers, new management

* Coordination amongst actors (consensus on way forward)

*Audit

*Investment funds frozen

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Mapping the actors

Non-state actors state actors:

ACTOR Power / Interest Driver of change

National Transport

Federation

Powerful; Keep

monopoly; collusion

with police; political

links

Resistance to change

Other transport

organisations

Liberalise market; no

weight; tension with

Administration

Driver of change

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GOVERNANCE AND ACCOUNTABILITY RELATIONS

Political system/government

Rule making and executive actors at

different levels

Non-state actorsCitizens, voters, consumers, user groups economic

agents, elites, media…

Checks and balances organisations

Supervise sector organisations or

handle complaints (auditors, judiciary,

ombudsmen,…)

Frontline service providers

Public and private providers delivering

services

Core public gnciesSector ministries,

agencies with regulatory or

supporting roles, …

Context

Donors, international organisations

Influence on sector governance and accountability

relations GovernanceAccountability