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Beyond the Numbers: Understanding the Institutions for Monitoring Poverty Reduction Strategies

Author: T Bedi and A Coudouel
Date: 2006
Size: 260 pages (1.62 MB)

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Summary

Monitoring systems are central to the effective design and implementation of a Poverty Reduction Strategy (PRS). Many existing PRS monitoring systems lack coordination and a coherent institutional framework linking monitoring and decision making. This World Bank report draws on 12 country studies to conclude that PRS monitoring systems should build on existing elements to begin a process of gradual change. Clearly defined relationships, incentives and activities and identification of entry points in decision-making processes facilitate the supply of monitoring information and its integration into improving PRS policies.

In most countries, both the supply side (organising monitoring and reporting of indicators across fragmented administrations) and the demand side (ensuring that monitoring information is used in decision-making) are posing major practical challenges. Inconsistent monitoring frameworks cause duplication, excessive administrative burdens, lack of data compatibility and poor information flows. The main challenges are rationalising existing monitoring mechanisms and coordinating numerous separate actors.

A PRS monitoring system incorporates three main functions: tracking progress in poverty reduction against indicators, implementation of the monitoring and evaluation of the PRS and expenditure tracking:

• Common obstacles to effective PRS monitoring systems include: lack of operational detail, costing and prioritisation in PRSs; data coordination difficulties between agencies; capacity constraints in data collection; underdeveloped budget and expenditure management and barely institutionalised links between monitoring and policy-making.
• A design process that includes participatory methods and stakeholder analysis is critical to ensure buy-in from stakeholders and establish joint objectives and solutions.
• Process design should build on existing systems and activities to prevent duplication and competition. Flexibility in institutional design allows the emerging system to evolve and adapt to change.
• Strong leadership and effective advocacy from the centre of government gives PRS monitoring systems authority and facilitates linkages with policy and budget processes.
• Coordination mechanisms that minimise the burden on participants and develop incentives for participation, along with strategies for building monitoring and analytical capacity throughout government, are important.
• Aligning donor reporting requirements to the PRS monitoring system would assist coordination between different sector agencies.

Evidence-based policy making and institutional learning are key objectives of the PRS initiative, but are difficult to institutionalise. The best strategy for strengthening demand for monitoring information is to tailor system outputs to key points in the policy-making process:

• Analysis and evaluation need to be institutionalised in PRS monitoring systems. Creating central analytical units and harnessing the analytical capacity of non-governmental actors are useful techniques.
• Information and analysis must be tailored to the needs of decision-makers and users for dissemination across central and local governments, service providers, parliaments, the media, the public and donors.
• Linking monitoring to the budget and planning process requires public sector agencies to justify bids for funding according to PRS objectives and program performance.
• Involving parliaments in monitoring systems aids their ability to carry out executive oversight and represent their constituencies.
• Although the participation of civil society is largely informal and varies considerably, it can include performing monitoring activities, participating in committees and working groups, providing analysis and advice and disseminating outputs to the public.

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Source: Bedi, T., et al., 2006, 'Beyond the Numbers: Understanding the Institutions for Monitoring Poverty Reduction Strategies', World Bank, Washington DC
Author: The World Bank, http://www.worldbank.org