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Update on Ongoing TG Activities: Enhancing Decentralization and Sub-National Finance

This presentation by Lili Liu and Kai Kaiser provides an update on ongoing activities within the Thematic Group (TG), a cross-sectoral network of approximately 360 members focused on decentralization and sub-national finance. Key highlights include analysis on sub-national fiscal sustainability, borrowing frameworks, and innovative methodologies for assessing creditworthiness. Additionally, insights into lagging regions and measures of fiscal decentralization are shared. The session emphasizes the importance of leveraging network knowledge and facilitating dialogue among members for improved governance and accountability in service delivery.

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Update on Ongoing TG Activities: Enhancing Decentralization and Sub-National Finance

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  1. An Update on On-Going TG Activities PRESENTED BY:LILI LIU & KAI KAISER Thursday, March 8, 2007 12:30-2:00PM

  2. An Introduction • The TG is a cross-sectoral network of staff with shared thematic interest (+/-360 members)

  3. An Introduction • Jointly facilitation by PREMED/PS • Merger of Decentralization and SN TGs • TG Website/Resources • Strategic leveraging on knowledge management activities of potential interest to TG • Effort to target range of client country context • E.g., federal/unitary, MICs/LICs/LICUSs • Draw on network knowledge • E.g., discussion threads/TG queries • BBL series and staff training

  4. Current Thematic HighlightsSUB-NATIONAL FINANCE • Sub-national fiscal sustainability analysis • Sustainability tool (baseline, sensitivity, policy scenarios) • Interplay between national and sub national policies • Assessing sub-national creditworthiness • Methodologies by S&P, Moody’s, Fitch on assessment

  5. Current Thematic HighlightsSUB-NATIONAL FINANCE • Sub-national borrowing framework • Surveys of sub national borrowing framework in 9 MICs: fiscal responsibility legislation, restrictions on fiscal aggregates, procedural requirements, contingent liabilities, and ex-post controls • Sub-national insolvency mechanisms • Cross country experiences • Key design issue • Elements of insolvency framework

  6. Current Thematic Highlights LAGGING REGIONS • Methodology paper - measuring the multidimensional aspects of lagging regions • Knowledge review – synthesis of country case studies on regional development (based on BBL series) • Brazil, Chile, China, India, Indonesia, Ireland, Italy, Mexico, Pakistan and Thailand

  7. Current Thematic HighlightsDECENTRALIZATION • Actionable fiscal decentralization indicators • Improved measures of fiscal decentralization • Specification of sub-national revenue and expenditure autonomy • Address data limitation of IMF-GFS indicators • Guidance notes for Fiscal Decentralization Diagnostics /Fiscal Decentralization at a Glance Tables • Sub-National applications of PEFA framework • 28+3 indicators of Public Financial Management • Consultancy to develop guidance with PEFA framework

  8. Current Thematic Highlights DECENTRALIZATION • Decentralization Diagnostics • Decentralization versus Deconcentration • On-going assessment of Francophone Decentralizations to sharpen analysis and operational design for varying institutional contexts • On-going case studies (Rwanda, Burkina Faso, Guinea, Madagascar) Decentralization & Governance of Service Delivery • Local Governance for Enhancing Accountability • Sequencing & Prioritization of Decentralization • Impact Evaluation

  9. CY 2008 IEG Evaluation of Decentralization • TG Facilitation of dialogue with staff • December 2006 event provided feedback on initial approach • Was Bank advice/engagement in area of decentralization appropriate? • Project versus country level approach • Roundtable late-January 2007 for current approach paper • Subsequent events to provide further opportunities • April 10th, 2007: Draft Evaluation Method Draft

  10. TG Learning Activities • Courses, conferences/seminars of high operational relevance • Core course on Fiscal Decentralization & Intergovernmental Reforms (3 days) • Sub-national fiscal sustainability in the core course on Fiscal Sustainability • More than 10 series of BBLs on sub-national finance • More than 10 seminar series on lagging region development, featuring work done in and outside the Bank (FY06-07). • Presentations at international conferences (China, South Asia, etc)

  11. Other TG Activities • Further Resources • http://decentralization • Sub national finance/regional development seminar series website: http:// www-wbweb.worldbank.org/prem/prmep/economicpolicy/ subnat/events_subnat.asp • Merged website in working progress • AskGov • Query to TG Members • Peer reviews by TG leaders • Peer reviewed over 20 ESW/DPL Operations & ESW (Brazil, Pakistan, India, Nigeria, Mali, Romania, Poland, Pakistan, Sudan etc., as well as regional cross country studies)

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