Works Programs: A Toolkit for Practitioners. Kalanidhi Subbarao Claudia Rodríguez-Alas

Transcription

1 The Design and Implementation ti of Public Works Programs: A Toolkit for Practitioners Kalanidhi Subbarao Claudia Rodríguez-Alas Arusha, June

2 Introduction The Toolkit s main objective is to provide guidance to policy makers and practitioners on how to implement and design public works (PW) programs The Toolkit outlines a set of procedures based on existing documented experiences and implementation manuals of various countries 2

3 Definition The public works programs discussed in the toolkit are safety net instruments that address the vulnerability of the poor and the near-poor to income disruptions These programs are part of the overall poverty reduction strategy and broad based growth These programs provide temporary employment at low wages mainly to unskilled workers on labor intensive projects such as road construction and maintenance, soil conservation, waste disposal, etc. 3

4 Objectives, outputs and outcomes The twin mutually reinforcing objectives of PWs are: To provide the poor with a source of income To create useful infrastructure that promotes and facilitates economic growth Expected outputs: Number of beneficiaries and days of work provided Project by outputs (e.g. kilometers of road created, etc.) Etc. Expected outcomes: Net improvement in household consumption smoothing and total welfare Economic benefits and social benefits from the completed projects Etc. 4

5 Program feasibility and scope Once the objectives are clear which vary from one country situation ti to another.. And feasibility has been assessed and there is broad consensus on: scope, timing, fiscal sustainability, etc. THE HARD WORK BEGINS -> THE IMPLEMENTATION DETAILS 5

6 Toolkit s Main Content Blocks 1 Key Design Features Targetingg g Setting the wage rate Type of works and labor intensity 2 Program Implementation Institutional arrangements and financial flows Selection of projects and beneficiaries Management of worksites and other logistics 3 Monitoring and Evaluation Monitoring inputs and outputs Evaluating: Implementation progress, targeting efficiency and impact. 6

7 Steps of Program Implementation Eleven basic steps for a successful program 7

8 Toolkit: Steps of Program Implementation Objectives, model, and scope Institutional arrangements, Management, MIS Selecting projects Financial l flows, reporting Procurement of inputs Management and supervision of worksites Selecting beneficiaries Muster rolls and wage payments Cross cutting issues Transparency and Accountability Communication strategy Gender issues Environment considerations Grievance procedure Monitoring & Evaluation

9 Step 1. Determining the Institutional Arrangements and Financing A. Institutional Arrangements and Role of Communities Centralized Systems Various government levels, from the Central/Federal to local levels) get involved in the design, planning and implementation of the program. The decision making process flows from central down to local bodies. Decentralized Systems The Central Government outsources of delegate some aspects of implementation to local governments and/or NGO s, CBO s, communities. Initiatives can flow from bottom up. Role of Communities Communities can play an important role at almost every er step of program implementation. They can participate in the selection of projects and beneficiates, in the actual implementation and supervision of the projects can even help co-finance the program. 9

10 Step 1. Determining the Institutional Arrangements and Financing B. Financing and Delivering of PW Programs Government Direct Implementation This is the most traditional model: Governments directly fund and implement PW programs through central, regional, district and local offices. 10

11 Step 1. Determining the Institutional Arrangements and Financing B. Financing and Delivering of PW Programs Government funded program implemented by others Under this model, governments funds by implement the program through implementing partners (NGO s youth and community organizations, small and medium private contractors). 11

12 Step 1. Determining the Institutional Arrangements and Financing B. Financing i and Delivering i of PW Programs Mixed delivery systems There are multiple combinations of the two main system described above. The figure below is just one example of programs cofinanced and implemented by multiple actors. 12

13 Step 1. Determining the Institutional Arrangements and Financing C. Management Information System (MIS) A Management information system is a tool that facilitates the collection, processing, management and dissemination of data essential for program operations, accountability and policy making. A typical MIS has four main components: Governance and organizational structure to provide the adequate environment for an effective and efficient MIS; Information management to ensure that quality information is maintained on beneficiaries, project status and payment information. Application management to make information useable and prevents vulnerabilities in the day-to-day operations of the PW program. Infrastructure: The physical equipment used to operate the MIS. 13

14 Step 2. Selecting Projects A. Project Selection Criteria Projects need to be largely demand-driven, reflecting community needs; Projects need to be generally labor-intensive, but labor s share in total cost can vary depending on the asset chosen. Generally labor share of 50 to 70% is recommended; Selected projects should be technically, socially and economically viable (see below); Projects should be environmentally sound; Projects should be such as to allow participation of women; Projects should also aim to create opportunities for the disabled to participate; Projects need to address special needs of women (e.g., sanitary facilities, i day care, etc). 14

15 Step 2. Selecting Projects B. Project Selection Process The selection of projects can take place in three different ways: Government e driven selection: ect Governments officials directly select the projects they consider appropriate for the target population; Contractors driven selection: Implementing agencies (NGO s, CBO s, small or medium size private contractors) submit project proposals to the government and typically a competitive process ensues that leads to selection of projects; Community driven selection: Communities are asked to generate a list of projects that they wish to get done that could be of immediate relevance to them. 15

16 Step 3: Selecting Beneficiaries Beneficiary selection depends on program objectives and targeting approach (geographical, PMT, self- selection, etc). Once a location and community has been targeted individual selection of beneficiary takes place. Self-selection: Setting the wage rate below the market rate allows self-selection of the poorest into the program. This also saves on administrative cost of selecting the poor by other means and most important, t prevents labor market distortions. ti What if the program poga isoversubscribed? esubsc bed 16

17 We meet the requirements We all want to work! I only have 20 places! What are the options? 17

18 1. ROTATION: Workers can be rotated in two different ways a) Shorter and more b) Shorter hours in the same frequent projects. project P R O J E C T 1 P R O J E C T 2 P R O J E C T 1 A.M shift P.M shift 18

19 2. RATIONING: Jobs can be rationed in two possible ways P R O J E C T a) Workers can participate a fixed number of hours (quotas). Q U O T A 1 Q U O T A 30 days 2 30 days b) Eligible individuals are selected by lottery Applicants # 1, 15, 45, 50 have been selected 90 days Q U O T A 3 30 days 19

20 3. BENEFICIARY RANKING Household or individuals are ranked according to their level or poverty or vulnerability based on criteria established by the community or the government. Extreme Poor Poor The most vulnerable household is given the first opportunity to work Non Poor 20

21 Step 4: Managing gworksites Management Structure The management structure will depend on the scale, complexity and nature of the projects. A typical structure includes: Site managers, crew leaders, foremen/women and technical experts. Workers organization Once beneficiaries are selected they are organized into crews for specific projects where different tasks are assigned to the group or to individuals. Worksite requirements Program managers need to ensure that basic amenities are include in worksites such as: drinking water, sanitary facilities, childcare centers, transportation; also it is important to ensure adequate tools and equipment are available. 21

22 Step 5: Establishing the Flow of Funds A. Funds Allocation The allocation of funds can take place under three different models: Supply Driven Government devotes funds needed by implementing agencies based on objective criteria such as population size, poverty level, trends on the supply of labor, previous budget allocations, etc. Demand Driven Government devotes funds for the projects based on the budgets and payments requests made by the implementing agencies. Combination of models Some countries apply both of the methods described d above in order to allocate funds. Local budgets in this case are used to cross check central government budgets and fund allocations. 22

23 Step 5: Establishing the Flow of Funds B. Models of Flow of Funds The flows includes a number of key elements: periodicity i of funds flow, the number of channels to pass through and accounting procedures at each level. Thus there are an array of models in which the flow of funds can take place: In a highly centralized delivery system In a decentralized delivery system In a Social Fund In a donor funded and managed program 23

24 Step 6: Procurement of Goods and Services Procurement methods vary across implementation system, type and size of the projects and specific circumstances where the projects are implemented. Thus, considerable pragmatism needs to govern this step. Projects implemented by communities tend to be small enough that procurement can be done locally. In this case elected authorities or beneficiaries can undertake procurement under supervision of program managers. Programs finance by the World Bank need to follow WB specific procurement regulation. Types of procurement are: Direct contracting, local shopping, local bidding, force account, national competitive bidding and international competitive bidding. 24

25 Step 7: Managing Muster Rolls and Wage Payment Logistics Beneficiary records The critical minimum information to organized payments is: Number of workers employed, number of hours worked, agreed wage rates. In short term programs, this information is usually kept with the help of team leaders at the worksite. In longer term or guaranteed programs, the information is usually maintained by the implementing agency. ID cards can be issued for beneficiary identification. 25

26 Step 7: Managing Muster Rolls and Wage Payment Logistics Wage Payment Logistics Payment methods Nowadays there are various payment options to deliver payments Traditional style: wage payments are made in cash directly to workers. Cash payments via checks and bank accounts Electronic delivery systems: - Debit cards. They are considered a cheap and flexible solution - Smart cards. They can include beneficiaries biometric information - Cell phone transfers. Transfer can be made individually or to groups through a person than receives the bulk payment and then distribute them. 26

27 Step 8: Preventing Fraud, Increasing Accountability Control and accountability mechanism are critical i to prevent fraud and corruption in PW programs. These mechanisms can take place at both: program and the beneficiary side. a. Program level control Mechanisms Fiduciary controls such as audits, procurement and good financial management are primary control mechanisms to ensure transparency Programs may also introduce a system of roving audits and periodic spot-checks to investigate compliance with financial rules, disbursements and payments, and appeals and complaints; as well as to inform monitoring. 27

28 Step 8: Preventing Fraud, Increasing Accountability b. Beneficiary level inputs Beneficiary and community participation should be encouraged as part of the transparency and accountability measures. Community participation i and sensitization: Holding public meetings, sharing program budget and other administrative aspects of the program, allowing the community to participate in some of the program implementation steps. Grievance procedures: Appeal mechanisms are important channels for community and beneficiary participation. Social Audits: It is a tool for enhancing transparency and improving the overall accountability of the program. 28

29 Step 8: Preventing Fraud, Increasing Accountability Five tips to avoid political capture Ensure total clarity and transparency in the selection of: areas/districts by laying down criteria (e.g., food insecurity, poverty incidence, etc., supported by data); beneficiaries by laying down ground rules: self-selection, or community-selection, or other criteria; projects j by laying down eligibility/rejection ibili i criteria. i Strictly adhere to procurement guidelines in the tendering process; Ensure wage setting principle is clear and transparent; Ensure complaints handling process in place; Ensure external oversight of the program, preferably social audits. 29

30 Step 9: Designing ga Communication Strategy A program success also depends on how its features and entitlements are communicate to potential participants. A well informed community will: Give potential beneficiaries a fair opportunity to access the program. Allow communities to take ownership of the programs being implemented. Content that needs to be communicated includes: program objective, eligibility criteria for participation, for project selection, duration of employments, gender composition, etc. 30

31 Step 9: Designing ga Communication Strategy Tips and tools to disseminate i information: i Create cultural-sensitive materials Use community venues to disseminate information Reach out to communities in remote areas Use an array of written materials (newspapers, brochures, pamphlets) Take advantage of audiovisuals (TV and radio spots) Hire community facilitators if necessary Ensure that communication flows both ways: from program managers to communities and vice versa. 31

32 Step 10: Ensuring Compliance with Environmental lregulations PW programs need to meet social and environmental regulations to ensure they will not have adverse effects. Considerations to take into account in an initial environmental assessment: Objective, size and nature of the project; Location of the project: Whether it is located near protected areas, historical sites, wetlands, etc; Existing laws that would apply to the project: Regulations on construction, stormwater, drinking water and sanitation, etc; 32

33 (Continuation) Step 10: Ensuring Compliance with Environmental Regulations Environmental Regulations Potential environmental impacts: How it would affect soil and water quality, farm land, watersheds, biodiversity, etc; Possible mitigation measures if an impact has been identified; and Other useful information specific to the project that would help to assess its impact. The initial assessment will help identify the degree of potential impact a project may have so appropriate measures can be adopted. If a project is not environmentally suitable, should not be approved for execution. 33

34 Step 11: Incorporating Graduation Strategies (Public Works Plus) (Public Works Plus) Graduation strategies aim to increase households income, skills and human capital in order to promote better long-term welfare and poverty reduction. Main graduation strategies t used in PW programs: Training and labor activation. A training component is added to prepare participants to the job market. Financial inclusion. This includes setting up bank accounts, providing financial literacy or microfinance services. Linkages to intermediate services. Typically this involves linkages to other safety nets programs. 34

35 THANK YOU FOR PATIENT LISTENING! 35