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

Public Procurement Reform in Public Procurement Reform in the Philippinesthe Philippines

The World Bank

Core Course on Core Course on Governance and Governance and AnticorruptionAnticorruptionPRMPS and WBIGPPRMPS and WBIGP

Presented by:Presented by:

Ed CamposHead, Governance & Anticorruption Thematic GroupPublic Sector Governance (PREM)

February 16, 2005February 16, 2005Presented to:Presented to:

The World Bank

PREM Public Sector Governance 2

The ‘Prohibition’ Era

197019801990 1995 1996 1997 1998 1999 2000 2001 2002 2003

WDR on Institutions 1982

JDW “Cancer of Corruption” Speech (10/96)

State in a Changing World (97)

• Public Expenditure, Financial Mgt. & Procurement Reforms

• Diagnostic/Data/ Monitoring Tools

• Administrative & Civil Service Reform

• Civil Society Voice, Accountability, Media & Transparency Mechanisms

• State Capture/Corporate Governance

• Legal/Judicial Reform

Broadening & Mainstreaming

The initial ascent … getting to ‘base The initial ascent … getting to ‘base camp’…camp’…

TI CPI (5/95)

Anti-corruption Strategy (97)

Governance Strategy (00)

1st set of firms Debarred from WB (99)

Formalization of INT (01)

Strategic Compact (97)

O.P. Mainstreaming AC in CAS (99)

Governance Pillar - CDF (98)

Internal AC unit created in WB (98)

Gov/A-C Diagnostics start (98)

The World Bank

PREM Public Sector Governance 3

Cutting Edge DiagnosticsCutting Edge DiagnosticsPERHIPC E.T.ROSCCPAREC Audits

CFAA

IGR & GAC & Governance Cross-Country Ind.

BEEPS & INVEST.CLIMATE

SCORE CARDS

QSDS

Public Official Surveys

Political System- Cam paign Finance- Recruitm ent/Patronage

Executive Branch- Core Accountability M echanisms- Key Sectors: Revenue, Expenditure & Regulatory Agencies

Legislative Branch- Parliam entary O versight- Parliam entary Safeguards

Judicial Branch- Judicial Independence- Judicial Predictability- Prosecution & Tria l of Corruption Cases

Sub-National Governm ent- Transparency and Responsiveness- Accountability M echanisms

Users- Households- Enterprises

Service Delivery Agencies- Accountability M echanisms- Accessibility and Responsiveness

PETs

The World Bank

PREM Public Sector Governance 4

Promoting Reforms: Changing the Promoting Reforms: Changing the LandscapeLandscape

Status Quo

(Bad Equilibrium)

DesiredDesiredStateState

(Good Equilibrium)

The World Bank

PREM Public Sector Governance 5

Promoting Reforms: Changing the Promoting Reforms: Changing the LandscapeLandscape

Status Quo

(Bad Equilibrium)

DesiredDesiredStateState

(Good Equilibrium)ConditionalityConditionality

The World Bank

PREM Public Sector Governance 6

Promoting Reforms: Changing the Promoting Reforms: Changing the LandscapeLandscape

Status Quo

(Bad Equilibrium)

DesiredDesiredStateState

(Good Equilibrium)

““Well Oiled Well Oiled Machine”Machine”

The World Bank

PREM Public Sector Governance 7

Background: Corruption in the PhilippinesBackground: Corruption in the Philippines

The World Bank

PREM Public Sector Governance 8

From ‘Shot Gun’ …From ‘Shot Gun’ …

The Great Wall of CorruptionThe Great Wall of Corruption

The World Bank

PREM Public Sector Governance 9

… … to ‘Laser Beam’ …to ‘Laser Beam’ …

of Corruption

of CorruptionThe Great Wall

The Great Wall

The World Bank

PREM Public Sector Governance 10

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

The World Bank

PREM Public Sector Governance 11

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

• 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?

The World Bank

PREM Public Sector Governance 12

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

The World Bank

PREM Public Sector Governance 13

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?

• Disparate, diffused CSOs

• Formation of PWI

• Strategic Bank support

The World Bank

PREM Public Sector Governance 14

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

PWI became the cogcog that tied all parties

• 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?

The World Bank

PREM Public Sector Governance 15

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

The World Bank

PREM Public Sector Governance 16

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

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

strategic positionsstrategic positions

• 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?

The World Bank

PREM Public Sector Governance 17

Making it All Come Together:Making it All Come Together: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 …

The World Bank

PREM Public Sector Governance 18

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 a ‘brand name’

The World Bank

PREM Public Sector Governance 19

Conclusion: Managing PoliticsConclusion: Managing Politics

Go Beyond Old Adage of Forming a Coalition

Need to Create a Well Oiled Machine Need to Create a Well Oiled Machine

A Few Key Elements…

Core group of reformers in Government (a “champion” is not enough …)

Technical work absolutely critical

Secure allies outside government – CSOs, private sector, churches, youth …

Media campaign is the glueglue that holds the pieces together

The World Bank

PREM Public Sector Governance 20

Implications for the BankImplications for the Bank

May need to change the way we provide May need to change 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

Donors have to find additional ways to help Donors have to find additional ways to help finance this processfinance this process

The World Bank

PREM Public Sector Governance 21

Thanks!Thanks!