Strengthening capacity for monitoring and evaluation in Uganda : a results based management perspective

WORLD BANK OPERATIONS EVALUATION DEPARTMENT OED EVALUATION 22896 CAPACITY DEVELOPMENT ECD WORKING PAPER SERIES - NO. 8: JANUARY 2001 Strengthening Capacity for Monitoring and Evaluation in Uganda: A Results Based Management Perspective Arild Hauge WORLD BANK OPERATIONS EVALUATION DEPARTMENT Improving monitoring and evaluation systems in Uganda would help the government to translate its public sector reforms into greater poverty reduction. Planning, budgeting, and incentives would be strengthened by a focus on poverty outcomes, impacts, and goals rather Strengthening Capacity for Monitoring than on and Evaluation in Uganda: recording inputs, A Results Based Management activities, or Perspective immediate outputs. ECD Working Paper Series * No. 8 Arild Hauge SJanuary 2001 The World Bank Washington, D.C. www.worldbank.org/html/oed Copyright 2001 Operations Evaluation Department Partnerships & Knowledge Programs (OEDPK) Email: ecampbellpage@worldbank.org Email: eline@worldbank.org Telephone: 202-473-4497 Facsimile: 202-522-3125 Evaluation Capacity Development (ECD) helps build sound governance in countries-improving transparency and building a performance culture within governments to support better management and policymaking, including the budget process-through support for the creation or strengthening of national/sectoral monitoring and evaluation systems. OED aims to identify and develop good- practice approaches in countries, and to share the growing body of experience with ECD efforts. The OED Working Paper series disseminates the findings of work in progress to encourage the exchange of ideas about enhancing development effectiveness through evaluation. An objective of the series is to get the findings out quickly, even if the presentations are somewhat informal. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, opinions, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the Operations Evaluation Department or any other unit of the World Bank, its Executive Directors, or the countries they represent. CONTENTS Foreword v List of Abbreviations vi Executive Summary vii 1.0 Introduction: Defining the conceptual perspective 1 2.0 Overview of Existing M&E Arrangements 4 2.1 Context of development planning and management 4 2.2 Overall M&E coordination 6 2.3 Overall PEAP goals and targets 8 2.4 Poverty monitoring 9 2.5 PAF monitoring 10 2.6 Civil society role 12 2.7 Donor Monitoring and Evaluation activities 13 2.8 M&E training and capacity development 14 3.0 Strategic Directions for M&E Development 16 3.1 Coordination and harmonization 16 3.2 Clarity of development goals, targets and performance indicators 17 3.3 Incentives for contribution to results 18 3.4 Devolution of managerial autonomy 19 3.5 Role of civil society in enforcing transparency and accountability 20 3.6 PEAP partnerships principles 20 3.7 Skills and training 21 4.0 NEXT STEPS 24 4.1 Refinement of PEAP goals and targets 24 4.2 Continuous monitoring of service delivery 24 4.3 Expand scope of reporting harmonization 25 4.4 Finalization of poverty monitoring strategy 25 4.5 Identify and disseminate "good practice" approaches to M&E 25 Annex 1: Context of Development Planning and Management 26 A: PEAP as national development framework 26 B: Budget process 26 C: Sector planning 28 D: Decentralized service delivery 29 E: External assistance 30 F: Accountability institutions 31 G: Public service management and reform initiatives 32 iii Annex 2: PEAP Goals and Targets 34 Annex 3: External Assistance 37 Annex 4: Note on methodology and people met 38 iv FOREWORD The Operations Evaluation Department (OED) of the World Bank has a long-standing program of support to strengthen monitoring and evaluation (M&E) capacities in developing countries, as an important part of sound governance. In providing this support, OED works closely with the Bank's operational areas, with governments and with other donors. African countries assisted under this program in recent years include Ghana and Benin. This report on Uganda has been prepared in response to a request from the national authorities that the World Bank assist in reviewing opportunities for strengthening of M&E functions. The government appreciates that strengthening its systems for M&E will assist its preparation of Poverty Reduction Strategies and its budget decision-making and prioritization processes. It will also strengthen management of government activities within ministries and in local governments, and will support accountability relationships with civil society, the parliament and others. With the strong support of the Bank's Africa Region, two missions to Uganda were undertaken, in April and October 2000, during which workshops and meetings were held with a number of senior officials, NGOs, academics and donors. A draft version of this report was presented to a brainstorming workshop for senior officials, and to a separate workshop for civil society. These workshops provided a valuable opportunity for feedback and further refinement of the analysis and priority actions identified for strengthening M&E functions. The analysis in this report is intended to provide a strategic framework for GOU to address and debate, in a holistic and systemic manner, the entire range of decision making processes and institutional responsibilities from which M&E requirements and practices emanate. Development efforts ultimately only work when founded on local needs, perceptions and institutional realities. The development of M&E needs to encompass the views, experiences and perspectives of senior GOU officials and other stakeholders, including civil society, the private sector and other donors. The report was prepared by Arild Hauge, and the task manager was Keith Mackay (OED). The strong support of Ritva Reinikka and Denyse Morin, of the Bank's Africa region, has been very valuable. Osvaldo Feinstein Manager Partnerships and Knowledge Programs, OEDPK v ABBREVIATIONS ACBF - African Capacity Building Foundation MPS - Ministry of Public Service AfDB - African Development Bank MTEF - Medium Term Expenditure Framework AG - Auditor General MWHC - Ministry of Works, Housing and AIDS - Acquired Immune Deficiency Syndrome Communications BFP - Budget Framework Paper NAT - National Assessment Teams CAO - Chief Administrative Officer NEMA - National Environmental Management Authority CAS - (World Bank) country assistance strategy NGO - Non Government Organization CBMIS - Community-based Management NHDR - National Human Development Report Information System NIS - National Integrity Survey CCS - Commitment Control System NIVES - National Integrity Values and Ethical Standards CDF - Comprehensive Development Framework NPA - National Planning Authority CG - Consultative Group NSDS - National Service Delivery Survey CIDA - Canadian International Development Agency OAG - Office of the Auditor General DAC - Development Assistance Committee of OECD OECD - Organisation for Economic DDP - District Development Plan Co-operation and Development DREPS - District resource endowment profiles OED - Operations Evaluation Department ECD - Evaluation capacity development OOB - Output oriented budgeting EPRC - Economic Policy Research Centre OP - Office of the President ESIP - Education Strategic Investment Programme OPM - Office of the Prime Minister EU - European Union OVP - Office of the Vice President FMS - Financial Management System PAC - Public Accounts Committee FY - Fiscal year PAF - Poverty Action Fund GOU - Government of Uganda PEAP - Poverty Eradication Action Plan HDR - Human Development Report PHC - Primary Health Care HIPC - Highly Indebted Poor Country PFP - Policy Framework Paper IDA - International Development Association PIP - Public Investment Programme IGG - Inspector General of Government PMAU - Poverty Monitoring and Analysis Unit IMF - International Monetary Fund PPA - Priority Programme Areas IMR - Infant Mortality Rate PRSC - Poverty Reduction Support Credit LG - Local Government PRSP - Poverty reduction strategy paper LGDP - Local Government Development Programme PS - Permanent Secretary LGBFP - Local Government Budget Framework Paper PSC - Public Service Commission LGFC - Local Government Finance Commission PSRCC - Public Service Reform Coordinating LTEF - Long term expenditure framework Committee MAAIF - Ministry of Agriculture, Animal Industry PSRRC - Public Service Review and And Fisheries Reorganization Commission M&E - Monitoring and evaluation PSRP - Public sector reform programme MECD - Monitoring & evaluation capacity development RBM - Results-based Management MEI - Ministry of Ethics and Integrity ROM - Results oriented management MAAIF - Ministry of Agriculture, Animal SDC - Swiss Development Cooperation Husbandry and Fisheries SDU - Service Delivery Unit MEI - Ministry of Ethics and Integrity SIDA - Swedish International Development Agency MES - Ministry of Education and Sports SWG - Sector working group MFPED - Ministry of Finance, Economic TA - Technical assistance Planning and Development UBOS - Uganda Bureau of Statistics MGLSD - Ministry of Gender, Labour and UDN - Uganda Debt Network Social Development ULAA - Uganda Local Authorities Association MIS - Management Information System UPE - Universal primary education MISR - Makerere Institute of Social Research UPPA - Uganda Participatory Poverty Assessment MLWE - Ministry of Lands, Water and Environment USAID - U.S. Agency for International Development MMR - Maternal Mortality Rate Ushs - Uganda Shillings MLG - Ministry of Local Government WB - World Bank WBI - World Bank Institute vi EXECUTIVE SUMMARY This report has been prepared as part of an ongoing effort by the Government of Uganda to strengthen the contribution of monitoring and evaluation (M&E) in the process of enhancing effectiveness of national budget execution and public service delivery. In conjunction with this effort, and with the support of the World Bank's Operations Evaluation Department (OED), a series of workshops and individual consultations have been held with key Government and non-government managers in Uganda. Particularly important inputs to the current report were provided by participants at a workshop of senior officials that was held in Kampala in October 2000. Uganda has implemented an impressive set of economic and budgetary management reforms. The immediate challenge for national development management, as a whole, is to translate success in the macro-economic arena into greater success in poverty reduction. Value for money in expenditures, quality of budget execution - or effectiveness of public service delivery, are serious concerns. From an M&E perspective the major problem is that both information management and decision making is focused on the administrative process of expenditures and activities rather than on the poverty outcomes, impacts and goals that are being pursued. Planning, budgeting and incentives are geared towards tracking inputs, activities and, recently, immediate outputs. Recurrent and development expenditures are reviewed separately, rather than for their combined impact in achieving overall goals. Monitoring and evaluation remain overly centred on compliance with government requirements and regulations rather than end-results of policy, program and project efforts. Civil servants get rewarded for doing paperwork well rather than making a difference in people's lives. Monitoring and evaluation in Uganda are fragmented, with multiple government and donor planning and progress reporting formats. Policy formulation, work planning and budgeting are undertaken as separate exercises at the sector and district levels. With a proliferation of different funding arrangements, officials are burdened with a large volume of reporting but have little systematic information about effectiveness of actual public service delivery. GOU has recognized the importance of improving results orientation and has defined the effectiveness of public service delivery as its highest priority. Ongoing initiatives to introduce "output oriented budgeting", "results oriented management" and pay reform deal with improving the quality of government. However, these initiatives have often been approached from the perspective of narrow departmental responsibilities rather than comprehensive goals and government-wide ownership. There is a need for much closer alignment and coordination, particularly in respect of reform of the MTEF budget format, public service conditions and decentralization efforts. A summary of the strategic M&E issues and challenges facing Uganda, and possible actions to address them, is presented in the table on page x. With the Poverty Eradication Action Plan (PEAP), Uganda has set a course of policy action to address the national development objective of reducing absolute poverty to 10% by 2017. A three-year rolling budget framework, incorporating sectoral and district planning, represents the bridge between poverty-reduction goals and operational activities. The role of M&E is to help keep track of, and continuously learn from, progress towards the PEAP/PRSP goals and targets. The starting point for M&E's contribution is clarity about what poverty eradication success looks like. In this respect, there is a need for agreeing on a clear, coherent and meaningful set of PEAP goals and targets for a more operational medium term timeframe. If the goals and targets of the PEAP were to systematically cascade through the national development management system, this would help to ensure that all managers are pulling in the same direction. The practice and use of M&E as part of the decision-making process is more important than formal requirements for M&E. The real product of M&E is not reports or facts per se, but a higher quality of decision making. Critically, M&E needs to provide a continuous flow of actionable information about the interrelationship between operational activities - especially those of government - and the reality of poverty on the ground. M&E should provide a means for managers to know which programmes have any vii discernable impact upon poverty and those that don't; monitor changes in the environmental or non- programme factors that also have a bearing upon poverty; and help guide changes in programme strategy or design of new interventions. In Uganda, social and economic change is currently monitored by a range of institutions and methodologies, without sufficient attention to the link between public service delivery efforts on the one hand and poverty eradication outcomes on the other. The establishment of a poverty monitoring network and steering committee, and the drafting of a national poverty monitoring strategy, represents an important step towards coordination and focus in poverty monitoring. Harmonization of different project progress reporting formats has also been initiated, and represents a potentially substantial resource saving for GOU. Under the Poverty Action Fund, there are eleven separate work planning and reporting schemes under formulation. A wide range of institutions is involved in inspection and audit, but there is insufficient coordination of visits, reporting and follow-up. A major challenge of institutional and human resource capacity development remains for Uganda to implement .its decentralization programme. Responsibility for service delivery is gradually being decentralized to districts and frontline service providers, but the center still consumes the bulk of resources and retains control of expenditure patterns. The current modus operandi of the poverty action fund, under which strong central control is exercised over conditional grants to the districts, undermines the ability of decentralized service providers to tailor their actions to the nature of local demands. The devolution of managerial responsibility needs to be accompanied by establishment of M&E capacities at the district, sub- district and frontline service provider levels. With clarity and consensus about goals and expectations as its starting point, M&E can be a vehicle for building partnerships within Government and between Government, civil society and external cooperation partners. M&E can improve stakeholder communication and can help in building agreement on desirable poverty reduction outcomes and strategies. Uganda has taken a number of commendable steps to increase transparency and consultation in the budget process. The sector working groups that prepare budget framework papers bring together central and line ministries, civil society and donors. Decisions about funding allocations are widely disseminated, including use of the media and public notice boards. However, much remains in stimulating transparency in terms of feedback from public service users. Ministerial management information systems still cannot provide systematic service delivery records. There is also an opportunity to harness Uganda's pilot status within the CDF initiative to elicit donor support for closer alignment of their activities to the PEAP and for development of a unified, national M&E system. GOU has recognized the importance of strengthening of M&E. Making headway will necessarily be an ongoing and long-term process of awareness building, institutional liaison, systems adjustment and skills formation. It will require policy consultations and operational action on several fronts. The most critical short-term actions that can help in developing M&E would include: Refinement of PEAP goals and targets: Sectoral planning and management efforts need to be guided by a clear and consistent set of medium-term goals and targets. PEAP's long-term (year 2017) goal should be broken down to measures of poverty eradication success in e.g. 2002, 2005 and 2010. Continuous monitoring of service delivery: It is critical that the current national service delivery survey not be approached as "yet another study" primarily to be digested by academics. Rather, the survey findings must be utilized to establish a base line, goals and targets for service reach and client satisfaction that are, in turn, used to inform work planning, budgeting and managerial performance assessment. Expand scope of reporting harmonization: The mandate for current efforts to define a uniform format for project progress reporting should be expanded to encompass harmonization of reporting pertaining to broader sector and poverty programmes. A further item of harmonization would be donor M&E arrangements, as articulated in the proposed CDF/PEAP partnership principles. Finalization of poverty monitoring strategy: Ongoing efforts to draft a national poverty monitoring strategy represent an important opportunity for bringing closure to existing uncertainties regarding the viii objectives, roles and responsibilities for M&E. MFPED appears as the logical champion of the necessary task of bringing alignment, coherence and synergy to Uganda's approach to results management and M&E initiatives and activities. Identification and dissemination of "good practice" approaches to M&E: Uganda already has a number of activities and initiatives that broadly address the M&E concerns raised by this report. It would be useful to actively seek out and promote individual practices and instruments, among those that exist at the sector, district and facility levels, that appear to best fit Uganda's overall development management needs. ix Summary of Strategic Issues, Challenges and Possible Actions Overall M&E Monitor & provide feedback on progress in poverty alleviation Task 1. Coordination 2. Development 3. Incentives for 4. Devolution 5. Role of civil 6. PEAP 7. M&E skills Strategic and goals, targets contribution to of managerial society in partnerships training M&E harmonization and results autonomy enforcing principles Issues performance transparency indicators and accountability * Draft Poverty * PEAP/PRSP as * Recognition of * Decentralized * Consultative Draft/CDF Awareness of Positive Monitoring overall framework service delivery responsibility for nature of PEAP partnership M&E importance elements in Strategy of poverty priorities effectiveness as service delivery process principles ' Availability of Uganda * Sector Working * Training in ROM imperative of public * Introduction of * Transparency of * Trend towards local researchers Groups (SWG) as (results oriented management output oriented budget process budget support local academic nexus of planning. management) being I National Service budgeting (OOB) * Practice of public * Consultative and training budgeting piloted Delivery Survey * Comprehensive notices group meeting traditions * Efforts to * "Indicator retreat" 2000 district plans * Significant being scheduled harmonize project as pan of budget * LGDP capacity capacity of NGO's as part of budget progress reporting cycle development * Government/ civil cycle * Earmarking of society dialogue at 5% of PAF funds central level for 'monitoring & accountability' * Separate *Inconsistency in * Performance * Generally weak * Need for * 1/3 of ODA is * Weak Some planning and clarity of goals at assessed in terms of management improved TA outside of management challenges reporting formats sector level expenditure and capacities at local stakeholder Government skills at LG being en- for different * PEAP goals bureaucratic levels consultation in budgets and levels funding sources correspond to activity * Prescribed priority-setting M&E * Likely increase countered * Sector/district ministerial activities * Weak linkage spending ratios of * 13 of ODA is TA * Nearly 300 in demand for policies, budgets rather than poverty between resource conditional grant outside of stand-alone management and workplans outcomes allocation and scheme gives Government projects remain conduct of M&E approached as * Few goals are performance little flexibility budgets and M&E * Twenty dealing with separate exercises defined with * Rewards geared for managers to practices separate annual inter-relationship * Alignment and measurable to good paper-work adapt to local * GOU/NGO programme between service coordination of timeframe, baseline * Inconsistent needs dialogue at center reviews delivery and different results and targets enforcement of * Number and not mirrored at * Local donors poverty outcomes management * Weak linkage sanctions for poor level of posts local levels cannot depart initiatives between sectoral performance directed from the - from corporate * 1/3 of ODA is and district goals *corruption largely center M&E guidelines TA outside of unpunished? Government budget * Identification of * Cascading of * Introduction of * Allow greater * Extend * Leverage of * Strengthen Possible an M&E champion PEAP goals and reach and outcomes local autonomy transparency donor support for local capacity for actions to ministry/agency targets through as yardstick of over recruitment, practice from CDF and PEAP programme address * Establishment of planning, budgeting success and salaries and non- allocation to to increase evaluation skills 'core M&E' and work planning performance reward wage execution synergy in training, e.g. via challenges arrangements (such at sector. district * Use of NSDS as expenditures * Client planning, training-of - as via a formal and facility levels barometer of client *Ensure stronger 'Reportcards' as reporting & trainers at M&E framework), * LTEF focus on satisfaction local oversight as complement to review national harmonization of defining medium- improvements the quid pro quo NSDS * PRSC policy institutions terminology, term PEAP goals & * Introduce value *Introduction of * Make NGO's matrix as joint * Coordinated reporting formats targets for money concerns participatory eligible for PAF planning & use of funding and periodicity in Finance Act M&E practices as 'monitoring & review earmarked for * Improved *introduction of key management accountability' mechanism M&E under coordination client service function funding PAF, LGDP and between inspection charters *introduction of EFMPII and audit agencies client service * Establishment charters of national evaluation association X 1. INTRODUCTION: DEFINING THE CONCEPTUAL PERSPECTIVE The results based management perspective to national monitoring and evaluation capacity development builds upon four key principles: (i) Good M&E reaches beyond the bureaucratic process to downstream results, outcomes The purpose of all development activity is to improve some aspect of the human, social or economic condition of an identified or implied group of people. A results based management (RBM') approach to M&E puts emphasis on downstream results - the social or economic progress that any policy, programme or project aims at (whether explicitly or only implicitly expressed). Outputs represent the immediate product or completion of administrative activity - for which managers can be held objectively accountable, such as completion of boreholes or classroom construction or distribution of medicines to health facilities. The concept of reach provides a gauge of the extent to which government efforts meet the needs of clients/beneficiaries, usually expressed in terms of relative coverage, access to or use of programmes, services or facilities. This concept also encompasses the degree of client/beneficiary satisfaction with these outputs and services. Outcomes represent the intermediate change or response that follows from outputs and their reach. Outcomes are desirable and necessary changes along the road to intended ultimate developmental goals - e.g. the creation of skills and employment opportunities as one means to achieve poverty eradication. Inputs - Activities * Outputs . Reach Outcomes + Development Goals M&E Focus: Bureaucratic Process: Efforts Development Effects:Results Although managers routinely need information about many administrative details surrounding their area of responsibility (inputs, activities and outputs), indications of effort or bureaucratic. progress per se are not evidence of the end results that are to be achieved. It is therefore crucial that they also keep their eyes on how their efforts translate into improvements in actual service delivery and progress with the outcomes that society expects. The establishment of quantifiable targets and the measurement of change at the reach and outcomes levels can help bridge the gap between bureaucratic action on the one hand and the tracking of progress with long- term developmental goals on the other. If the focus of M&E only covers intentions and efforts, there is no guarantee that the data collected will guide managers towards actually making a difference. M&E must therefore extend beyond tracking levels of expenditure, bureaucratic activities and adherence to administrative requirements and procedures, but also to progress with actual results on the ground. Monitoring embodies the continuous tracking of different inputs, activities, outputs and reach and outcomes. The most critical role of evaluation is to improve understanding of the interrelationship between 1 The 1999 OED Annual Review of Development Effectiveness. Annex 6, "Managing for results" makes a presentation of RBM in a development management context. 1 service delivery efforts (i.e. inputs, activities and outputs) on the one hand and reach and poverty outcomes on the other. (ii) The M&E function is inextricably linked to clarity of goals on the one hand and M&E information use on the other M&E cannot be addressed from the narrow perspective of progress reporting. seen in isolation from its foundation of purpose and the reality of its use. Firstly and above all, M&E is intended to support the process of creating development results. When well conceived and practiced, M&E guides managers- towards achieving their goals - whether their responsibilities are at the policy, programme or project levels. M&E lets managers, together with their respective constituency of stakeholders, know whether progress is being made - knowing which strategies work and which don't. The starting point for meaningful M&E is then clarity about the goals and objectives, or outcomes, which are being pursued. Secondly, the formal rules and regulations that surround M&E (often expressed as requirements of programme design and progress reporting) or the act of producing M&E information are less important than how the function of M&E is actually being used - e.g. in the processes of policy analysis, resource allocation, work planning and daily operational management. The real product of M&E is not reports or facts per se, but a higher quality of decision making. In addition to the importance of M&E's accountability function, a results based management approach recoanizes its role as a learning function - helping managers and stakeholders act on the basis of understanding what really works and what doesn't. Reach and outcomes provide a direction for managerial orientation that can help improve effectiveness of service delivery ("keeping one's eyes on the ball"). The act of identifying, tracking and analyzing outcomes lends focus to stakeholder dialogue and helps in ascertaining the relevance of intermediate resource and activity planning. - Information about what poverty actions are effective and what are not, needs to be incorporated into systems and incentives for feedback, learning, sanctions and reward. Otherwise there is no guarantee that actions follow the goals that have been set. (iii) Capacity development requires a 'systems' approach Capacity expresses the ability to effectively, efficiently and sustainably perform functions, solve problems and set and achieve objectives. Capacity is the power of something (a system, an organization, or a person - individually or collectively) to perform or to produce. However, a single person possessing the power to perform or produce only reflects the capacity of that person, and not necessarily a capacity on the part of an institution or system. Capacity does need skills, staff, logistical resources - but this is not enough. Existence of physical facilities or development of technical skills does not lead to capacities if addressed in isolation from the essential managerial processes of any given organization. If individual abilities do not fit into the patterns and processes of decision making, the skills acquired from training may be unused. Capacity development, irrespective of field, is therefore not synonymous with technical training of individuals. Moreover, individual organizations do not function in a vacuum either - they operate within a wider set of values and 2 systems, and are dependent on a complex and organic policy and institutional environment. Any one government ministry or agency, for example, is part of a broader system of institutional liaison within the public service, with which it has a shared mission and some common characteristics of culture and incentives. Public service culture. values & incentives Oreanizational decision-makine Individual Skills Successful capacity development therefore needs a 'systems' approach, whereby skills are seen within a broader context of organizational mandates, patterns of decision making and institutional liaison, and the prevailing managerial culture, values and incentives. (iv) Learning from international experience; generic success factors The realities, opportunities and constraints facing any particular country will in many ways be unique. Efforts to strengthen M&E functions must be therefore be tailored carefully according to country circumstances - political, institutional, social and cultural - if they are to be successful. However, some common and generic features of M&E success exist. Successful M&E capacity development efforts have been identified by OED as often including the following characteristics: * Forms part of a public sector management reform program * Promotes a results orientation and a poverty reduction and growth focus * Connects oversight of public expenditures at central, sector and regional level * Involves civil society, NGOs, private sector * Supports parallel initiatives by other development assistance agencies * Develops and implements a customized training program for ECD * Establishes linkages with financial management and accountability programs * Develops linkages with statistical system improvements * Establishes linkages with research initiatives * Contributes to improved M&E for country/sector assistance strategies and Bank financed projects M&E is, above all, a good management practice. The results based M&E prism brings impetus to some of the concerns that are frequently raised from alternative angles to analysis of national development management: * Accountability: Value for money; follow-up to malpractice and audit * Governance: Participation; transparency - * Public sector management: Policy implementation; performance management * Financial management: Budget execution; expenditure quality 3 2.0 OVERVIEW OF EXISTING M&E ARRANGEMENTS 2.1 Context of development planning and management2 Uganda has undertaken comprehensive reforms in economic management, and has within the last decade achieved stabilization of its public finances. The average real rate of GDP growth has been 6.9 percent per annum since 1990/91, resulting in an annual 3.7 percent increase in real GDP per capita and a 20 percent decline in poverty (headcount index) from 1992 to 1997. On the social front, important progress has been made in respect of e.g. primary school enrollment and in reduction of HIV/AIDS prevalence. With national aspirations and directions for long-term development having been brought into focus through the Vision 2025 exercise, the Poverty Eradication Action Plan (PEAP) has guided the formulation of Government policy in Uganda since its inception in 1997. PEAP has been coordinated by the Ministry of Finance, Planning and Economic Development (MFPED) and represents Uganda's response to the Comprehensive Development Framework (CDF) initiative, and has been revised into the format of the World Bank/IMF Poverty Reduction Strategv Paper (PRSP). The overall objective of the PEAP is to reduce the incidence of absolute poverty from 44% in 1996/97 to 10% by 2017. Uganda's current MTEF three year rolling budget system represents the interface between PEAP goals and operational management. A consultative process drawing on the activities of sector working groups (SWG) culminates in agreed sectoral Budget Framework Papers (BFP) that are normally completed by end of April. The SWGs bring together key central ministries, the respective technical agencies, NGO's and the donor community in the process of preparing sectoral BFP's. PEAP is buttressed by the Poverty Action Fund (PAF), which has been established as a vehicle for channeling incremental resources made available through HIPC into the Priority Programme Areas (PPA) of primary health, primary education, water and sanitation, agricultural extension and rural roads. The budget process in Uganda is characterized by relative transparency and openness, with MFPED having introduced a number of measures to keep the public informed and involved throughout the cycle, including an annual retreat with civil society and donor stakeholders to review experiences from the previous budget cycle. To further strengthen results orientation within the MTEF process, MFPED is introducing outt oriented budgeting (OOB). As part of its effort to further improve expenditure management, the Government has embarked on the modernization of its fiscal systems. It plans to commence this process with a fiscal management study (FMS) under IDA Economic and Financial Management Programme (EFMPII3). The FMS will provide a roadmap for the computerization of GOU's fiscal systems beginning with the budgeting and accounting processes at central and local levels. EFMPII also addresses harmonization of the central and local government planning processes and institutionalization of the preparation of local government BFP's. GOU's policy of decentralization4 is founded on the devolution of responsibility for planning, resource management and service delivery to 45 districts with further administrative units at the county, sub-county, parish and village levels. While the local governments (LG's) in Uganda are autonomous corporate entities, the Ministry of Local Government (MLG) and its decentralization secretariat exercises broad oversight of their performance, and functions as coordinators of policy and central support facilities for the decentralization work. The bulk of transfers to LG, currently 78%, are conditional grants, which are negotiated between line ministries and individual LG's. There are currently 23 different conditional grant schemes, of which 11 are funded through the PAF. Individual LG's prepare separate "activity based" workplans for each of the eleven PAF conditional grants schemes. The basic conditionality of the conditional grants is associated 2Further details of the policy and institutional context are provided in Annex 1. 3World Bank, October 1999, "Second Economic and Financial Management Project", Project Appraisal Document, Washington D.C. "The system of local government in Uganda is provided for in the 1995 Constitution and the 1997 Local Government Act. 4 with adherence to very detailed controls over the types of expenditure allowed. District managers need central authority approval for any re-allocations in excess of 10% of resources. Releases of PAF funds are contingent upon compliance with the reporting requirements. The IDA-supported local government development project (LGDP5) will provide technical and financial resources to enable the development, testing and application of a range of participatory planning, budgeting and resource allocation procedures and programme management systems in a sub-set of LGs. Uganda is in the middle range of developing countries' aid dependence, with OECD/DAC estimating6 total ODA to Uganda equivalent to 12.1% and 7.1% of GNP in 1997 and 1998, respectively. An increasing share, currently 19%, of external assistance is being channeled into budget support, either in the form of general PAF support or earmarked for specific sectors, in particular for the health and education sectors, which is then subject to monitoring and review with donor involvement in the SWG process. Government has recognized the need to enhance the integrity and accountability of its institutions by (i) increasing public oversight through increased transparency, education and awareness, (ii) promoting capacity building; and (iii) strengthening enforcement of laws and penalties. To this end, the 'Government Strategy and Plan of Action to Fight Corruption and Build Ethics and Integrity in Public Office' has been prepared by the Ministry of Ethics and Integrity (DEI)7n and was launched by H.E. The President in July 2000. An innovative way of introducing accountability is represented by the existing stipulation that districts post mandatory public notices for every conditional grant under PAF each quarter - giving details of workplans, their costs and funds released. The Ministry of Public Service (MPS) is host to the Public Service Commission (PSC), which guides appointments, service conditions and government payroll; as well as the 1997-2002 Public Sector Reform Programme (PSRP), which is overseen by the Public Service Reform Coordinating Committee (PSRCC)" - one goal is to achieve a smaller, better paid and better performing public service. To inform the development of a Pay Reform Strategv9 being formulated by MPS, studies have recently been completed on job evaluation and market comparators. A new performance appraisal scheme, to enable individuals to be assessed against jointly agreed performance targets that are clear, measurable and related to Government objectives, is being piloted for introduction from the beginning of year 2001. Performance contracts have been introduced at the level of Permanent Secretaries, but not yet at other levels of management. A results oriented management scheme (ROM) was initiated back in 1995, and Cabinet has now approved a plan for its introduction to all ministries and districts. The ROM, which is coordinated by MPS, introduces a logframe approach to definition of goals and objectives. World Bank, October 1999, "Local Government Development Program", Project Appraisal Document. Washington D.C. 6 http://www.oecd.org/dac/images/AidRecipient/uga.gif 7 MEI's predecessor, the Department of Ethics and Integrity (DEI), in the Office of the President, was (reportedly) established as a result of a previous (donor) evaluation of the government's anti-corruption strategy (1998). 8 Chaired by the Vice President, and attended by the Permanent Secretaries of the Ministries of Education, Public Service, Justice and Constitutional Affairs, Finance, Planning and Economic Development, and Local Government. MPS, August 2000, "(Draft) Proposed Pay Reform Strategy for the Public Service" 5 Table 1: Overview of selected policy and reform initiatives in Uganda Policy or Coordinating Performance Critical Practical Target Group Primary M&E Reform responsibility Orientation Focus or Sector Opportunity Initiative PEAP/ PRSP Task Force + medium to long term participatory and health, education, refinement of medium MFPED national development goals consultative definition and water. roads, term outcomes and and targets review of priorities agriculture progress indicators PRSC Task Force + strengthening of cross- procurement; pay reform, central agencies + use of health, education. MFPED cutting reform initiatives financial accountability- health, education, water ministries as pilots M&E water for M&E MTEF/ OOB MFPED expenditure allocation which unit costing; linkage all budget applicants: introduction of reach and aligns resource realities with between activities and ministries, central outcomes as benchmarks development goals outputs agencies, local of success government ROM*) MPS, establishment of clarity in workshops introducing * sector ministries strengthened linkage to Commissioner for results expectations logframe results definition * 45 district budgeting and Inspection administrations performance assessment Pay reform*) PSRCC + MPS, effectiveness of public job classification, pay civil servants at large linkage between PSC service delivery; Smaller, comparators, performance and better paid and better contribution to performing civil service development goals Performance MPS, PSC assessment of individuals' establishment of jointly civil servants at large linkage between Appraisal*) performance (pilot approach) agreed performance targets performance and pay Decentral- MLG, devolution of responsibility establishment of logistical MLG introduction of ization Decentralization for planning, resource facilities and management * districts and local participatory M&E Secretariat management and service capacities at local level governments practices as key delivery management function "Integrity/ MEL, Office of the strengthened accountability. anti-coruption advocacy; * public at large improved decision-making Anti- President oversight and enforcement establishment of Act on * accountability transparency; coordination .n"national integrity values institutions between accountability Corruption and ethical standards". * all civil servants institutions Action Plan" *) Components of the public sector reform programme, PSRP 2.2 Overall M&E coordination The most obvious characteristic of the PEAP M&E regime is the separation of poverty monitoring and resource monitoring, albeit both coordinated by MFPED. The two strands of M&E have separate actors, reports and use different criteria of assessment. Financial resource monitoring is associated with inputs, activities and, increasingly, outputs, whereas poverty monitoring is based on analyzing overall poverty outcomes. MFPED is not the sole coordinator of M&E activities. The Office of the President (OP) has as part of its role "to ensure performance of government policy/decisions on economy and that appropriate measures are taken to solve any operational problems". Similarly, the Office of the Prime Minister (OPM) has the function of "ensuring that all government projects are harmonized and coordinated to avoid duplication".1o OPM coordinates progress reporting on development expenditure projects, but compliance with reporting requirements is low. Instead, it is the respective donors who finance most PIP projects who stipulate M&E requirements and who coordinate M&E activity. MFPED collects financial records. Fortunately OP, OPM and MFPED, together with the Ministries of Education and Agriculture, have recently formed a sub- committee to address harmonization of project progress reporting (further discussed below). 1o Definition of functions from documents prepared by "Sub-committee on Harmonization of Project Reporting". We understand that there is no Parliamentary Act or regulation which unequivocally spells out ministerial responsibilities. 6 Separation of poverty and financial monitoring Poverty Monitoring: Plans & Financial Monitoring: goals: Institutions Coordination Products Products Coordination Institutions UBOS Poverty Poverty PEAP MTEF Sector Commitment Forum Status Report Working Control EPRC Groups System Annual MISR Poverty Annual Budget Monitoring Household Reports PAF Accounting Donor- Steering Survey Monitoring Officers funded *Policies Committee Committee overseas & Plans researchQuarterly research institutes National Progress Inspection & Poverty Service Reports District PAF Audit: Momitorng Delivery Monitoring Network Survey District Committees - IGG - Treasury Plans Audit and - Ministry Inspection Poverty UPPAP- District Monitoring - Participatory - OAG Technical Assessment - Donors S'commnittee PAF Ad Hoc " " Grant Tracking Ad Hoc Work Studies Poverty plans Studies Coordination is additionally complicated by plans recently being made' for establishment of a National Planning Authority (NPA), as provided for in Uganda's 1995 Constitution. The establishment of NPA would clearly impact on the dynamic of national development planning and management - by virtue of the actual responsibilities, functions and manpower capacities that were vested in a new institution12. It is critical that the eventual establishment of the national planning agency, NPA, does not lead to a further dispersement and blurring of M&E responsibilities. It is clear that the SWG process has been a useful mechanism for M&E at the sector level. However, not all sectors have adopted the comprehensive planning approach. Also, the approach to M&E varies between the sectors that do. The education SWG has an M&E sub-group3, whilst the health SWG has a "monitoring and supervision" sub-group. The emphasis placed on the review function is commendable, but their workplans and reports suggest that there has been little attempt to coordinate the format or direction of their respective work. " We understand that a Cabinet decision was made in September 2000 to the effect of proceeding with the establishment of NPA. An allocation of Ushs 50mn was provided in 1999/200 budget estimates. 12 The Constitution only provides for NPA's establishment, with a mandate to be prescribed at a later date by Parliament. 13 Which, inter alia, has drafted its own comprehensive M&E framework. 7 Consideration should be given to providing SWG's with a mandate for agenda-setting in respect of research and evaluation, allowing sector stakeholders to jointly synthesize what has come out of the entire range of consultations, reports and review instruments - and then to demonstrate how the lessons drawn relate to proposals for the future. The initiative would have an important effect in terms of establishing transparency to future learning intentions. It is crucial that the decentralization effort is not accompanied by a proliferation of disparate review mechanisms at the district level. Development of a comprehensive district review mechanism has the potential to provide synergy and scale economy in comparison to the alternative of conducting stand-alone evaluations and reviews for the many different projects, funding schemes and cooperative agencies that are active within a district. 2.3 Overall PEAP goals and targets The PEAP/PRSP itself will be revised every two years, based on findings and recommendations of the Poverty Status Report (PSR), which was first prepared in 1999 and will next be repeated in 2001. Intentions are, in fact, that the PSR itself will constitute the updated PRSP. GOU intends that the monitoring of PEAP/PRSP should be built on continuous two-way flows of information between beneficiaries, service providers and policy makers - in order for design and implementation strategies to be continually modified from knowledge about what works and what doesn't. However, in the PEAP the treatment of monitoring is frequently expressed as an option or aspiration rather than as a definite intention. For example, there are several passages where it is said that a specific measure ....should be" or "....could be" rather than will be monitored. The danger is that compliance with monitoring and reporting requirements will not be enforced because it matters little if one does or not. The overall goal of PEAP is to reduce headcount poverty to 10% by year 2017. Under the PEAP pillars, a total of 46 sub-objectives have been defined. Targets have been established for twelve of these, whereas 34 have associated monitoring indicators without targets having been identified. The PEAP goals, sub-goals, targets and monitoring indicators are attached in Annex 2a. Within the PRSP document, on the other hand, a sub-set of eight targets and associated monitoring indicators has been highlighted (see Annex 2b). A general observation about the PEAP/PRSP structure is that there is a gap between its single, very long- term overall goal on the one hand and the many short-term operational strategies and plans on the other. More broadly, the lack of clarity in the structure of PEAP goals and targets translates into insufficient coherence in operational planning. Medium-term expenditure plans, as reflected in BFP's, do not always mirror PEAP goals or have clear expectations about results on the ground. The terminology used to describe results is often confused: for example, the concept of outcomes is often used interchangeably with outputs. The preparation of sector and district policies, budgets and activity plans is undertaken as work exercises separate from each other. More technical issues that arise from review of the PEAP goals, targets and monitoring indicators include: 1. The subgoals primarily correspond to areas of ministerial activity, rather than overriding or cross-cutting poverty outcomes. 2. For most of the PEAP subgoals no targets have been established. 3. Not all targets are clear or time-bound. 4. Few of the monitoring indicators have a baseline. 5. Responsibility and methodology for monitoring indicators is not clear. In recognition of the need for improved clarity in the PEAP structure of goals and targets, a retreat with sector ministries has been included in the current budget process, at which sectoral performance indicators will be discussed. In addition to clarification of goals, it will be necessary to agree on a common results and performance terminology, e.g. for what to associate with terms like targets, benchmarks, milestones, indicators, baseline, goals, reach, outcomes and outputs. 8 DOES A GAP IN THE PEAP LEAD TO UNCLEAR SECTOR PLANS? The PEAP itself has a clear long-term goal. reducing headcount poverty to 10% of the population by the year 2017. as well as four qualitative policy "pillars" or goals. However, between these on the one hand and the detailed operational plans that are being laid on the other, there seems to be a gap at the level of intermediate results expectations.: OUTPUTS INTERMEDIATE RESULTS GAP? LONG TERM PEAP GOALS PROPOSED MONITORING 1. Framework for Econ. Growth INDICATORS (PRSP): ILLUSTRATIVE (e.g. 5- ------------------------ year) TARGETS: 2. Good governance & Security Max. - Avg. pupil-teacher ratio ------------------------ 10% - Avg. pupil-classroom ratio - Avg. school attainment 3. Ability to raise incomes - Avg. pupil-book ratio (yrs) ------------------------ poverty - Immunization rate - Infant mortality rate 4. Quality of life for poor by 2017 - % health centres w/trained staff - Safe water access rate z% - Boreholes drilled - Springs protected - Shallow wells protected Maybe as a result, some of the BFP's, e.g. education, also display a combination of vague long-term development goals on the one hand, and detailed short-term inputs and activities on the other. Having achieved near-full school enrollment, the most critical challenge currently facing the education sector is guality. This was confirmed by the ESIP review. But the education BFP is framed almost entirely in terms of how much money it has managed to spend in the past and the categories of proposed expenditure. Goals are expressed as increases in the pupil:teacher/classroom/book ratios. There is little discussion, and no targets, pertaining to critical dimensions of the quality issue: such as drop-out rates, years of educational completion or examination attainment standards. One is left with no answer to the question: what difference would we like improvements in the pupil:teacher/classroom/book ratios to make, in terms of educational quality? And would improvements in these ratios be the most cost-effective means to improve educational quality? With output-based performance orientation there is a risk that managers become motivated to establish goals they know they can attain, with little regard for whether they make a difference on the ground or contribute to longer-term goals. 2.4 Poverty monitoring In order to improve clarity of focus and responsibilities for poverty monitoring, the poverty monitoring and analysis unit (PMAU) in MFPED has facilitated the establishment of a poverty monitoring network, comprising government and civil society representatives with key monitoring functions. The network will be overseen by a PS-level poverty monitoring steering committee. To support the network in its technical review of performance indicators, a further technical sub-committee has been established. A draft poverty monitoring strategy appropriately sets as its objective to "determine whether development policies and programmes of Government and its development partners are actually reducing poverty". The aim is thus to help bridge the gap between bureaucratic process monitoring and poverty outcomes. Poverty monitoring currently involves a large number of institutions including the Poverty Monitoring and Analysis Unit (PMAU) in MFPED, the Uganda Bureau of Statistics (UBOS), and the Uganda Participatory Poverty Assessment (UPPAP) project. Other national institutions that conduct social and economic policy research include the Economic Policy Research Centre (EPRC), the Centre for Basic Research (CBR) and the Makerere Institute of Social Research (MISR) - all affiliated with Makerere University in Kampala. 9 UBOS household surveys are conducted on an annual basis, and are being used to prepare estimates of trends in poverty and its demographic composition. It is clear that there is scope for studies such as these to be more widely used e.g. for more detailed analysis of trends and determinants of poverty and service delivery at the sectoral and local levels. Demographic and Health Surveys are conducted in a 5-year cycle, whereas a Census is undertaken decennially - next in 2002. Finally, UBOS maintains the district resource endowment profiles (DREPS) database, comprising information about e.g. topographical characteristics, natural resources and land use in the districts. The data collection for an updated national service delivery survey (NSDS) was completed in 3Q/00, with the report expected in IQ/01. The NSDS represents a comprehensive set of data14 covering household-level perceptions of access, use and satisfaction in the areas of crime/justice/law & order; transport services; good governance; water and sanitation; health services; education; agricultural and veterinary extension services. MPS and MFPED have agreed that UBOS will take over responsibility for coordinating future NSDS surveys, which are planned to be conducted on an annual basis, eventually in conjunction with the annual household surveys. The NSDS is an initiative of significant systemic importance - not in terms of being a study, but as a potential instrument for operational management. The NSDS can be adopted as a dynamic barometer of government service reach, being used for target-setting and performance assessment pertaining to improvements in levels of service delivery and client satisfaction. Client satisfaction data have the advantage of offering some comparability across sectors, districts and over time. An additional operational use of the NSDS would be the articulation of "client service charters" - commitments to departmental and facility-level performance. If the concept of client service, or reach, is truly embraced by national decision makers, by committing to gear systems and practices to it, not just of M&E but also of work planning, budgeting and performance incentives -it could lead to a material improvement in effectiveness of government service delivery. Qualitative and participatory approaches to poverty monitoring are used by the Uganda Participatory Poverty Assessment (UPPAP) project. Such work has already been an input to the Spring 2000 PEAP/PRSP revision and has had a direct influence on national policy in terms of budgetary allocations to water supply and the priority given to improving security. 2.5 PAF monitoring Basic government-wide expenditure control is exercised through the Commitment Control System (CCS). The introduction of the CCS has helped reign in over-commitments and the build-up of domestic arrears. The PAF monitoring committee, which reviews policies and operations, meets quarterly under MFPED coordination, and includes donor, line ministry and civil society participation. District PAF monitoring meetings are coordinated by a civil society organization, the Uganda Debt Network. General PAF conditional grant work planning and reporting guidelines'5 have been prepared by MFPED, whilst eleven grant-specific guidelines are being prepared by the respective sector ministries, for finalization by January 2001. LG's plan and report separately for the individual PAF and other conditional grants. The PAF guidelines include work planning and progress reporting based on review of: * National objective of the grant * District priorities and needs * Strategies to achieve objectives 14 Drawing on a sample of 15.000 respondents in 1,350 villages and all 45 districts. 1 "Poverty Action Fund: 2000-2001 General Guidelines for the Planning and Operation of Conditional Grants". MFPED, April 2000. 10 * Quantifiable activities * Cost of activities PAF workplans form the basis of a "Letter of Understanding" with the respective line ministries and are, ultimately, consolidated into the LGBFP. Guidance and technical assistance on drawing up the workplans is given at the Regional Budget Framework Meetings and independently by the respective sector ministries. The PAF guidelines apply to the non-wage component of expenditures. The fact that the major development and recurrent expenditures are reviewed as separate issues undermines the objective of comprehensive results planning and management. The central instrument for more operational M&E is the review and inspection pertaining to quarterly and annual progress reporting, which itself forms part of the work planning and budget cycles. According to the PAF guidelines, progress reporting is complemented by monitoring through a system of physical visits: * Quarterly visits by Districts (to service facilities) * Quarterly visits by MFPED Treasury Inspectorate * Quarterly visits by Line Ministries * Half-yearly value for money audits by Auditor General * Ad hoc visits by MLG and IGG Monitoring visits have a reporting format that encompasses: * Verification of progress as reported * Identification of problems in implementation and give recommendations for their solution * Outline of issues needing follow up * Outline of progress in resolving issues raised in previous monitoring reports The priority issue for inspection and monitoring visits appears to be maintenance of financial accountability. However, indications are that few of the agencies involved have been able to maintain the intended inspection frequency and coverage, due mainly to a lack of manpower resources. More evaluative and reflective perspectives have been provided by value-for-money audits and expenditure tracking studies. A total of three such studies have been undertaken to date, two in education, in 1996 and 2000 and one in health in 2000, through use of private sector consultants. 5% of PAF funds, equivalent to US$ 2-4 million p.a., are earmarked for "Monitoring and Accountability" (Table 2). Clear criteria need to be established for the allocation of PAF monitoring and accountability funds. It is important that these funds are not simply co-opted as incremental funding for basic operations of Uganda's accountability institutions. A further PAF grant, i.e. additional to the overall allocation of 5% of PAF, for district monitoring and accountability, is being introduced from f.y. 2001/2002. 11 Table 2: Allocation of PAF Monitoring and Accountability Funds 1998/99 1999/00 2000/01 Proposed Outturn Budget Ushs Bn. Ushs Bn. Ushs Bn. US$ mn1 Inspector General of Government 1.40 1.95 2.21 1.47 Auditor General 0.00 0.91 1.14 0.76 Directorate of Accounts 0.11 0.19 0.23 0.15 Districts 0.05 1.75 3.64 2.42 Line Ministries 1.17 1.32 1.66 1.10 Other Accountability Institutions 1.44 1.16 1.46 0.97 MFPED 0.03 0.49 0.56 0.37 Total 4.20 7.76 10.90 7.26 Source: MFPED, Background to the Budget 2000/01, p.48. 2.6 Civil society role The transparency measures and consultative efforts that have been introduced as part of the GOU budget process are in many ways unique and have undoubtedly given a boost to government credibility with the public. Civil society is informed through basic transparency, such as publication of the "citizens' guide to the budget process", but more importantly it influences the annual budget decision making process through its participation in stakeholder reflection workshops, the forum on the Uganda economy, and the sector working groups (see following chart). MFPED continues its efforts to seek active participation of members of Parliament in the budget process. Each year, the Makerere Institute of Social Research (MISR) convenes the national Poverty Forum bringing together government and civil society for discussion of national poverty priorities and strategies. A particularly positive and noteworthy practice in Uganda is the posting of notices of UPE grant funding allocations in the school districts'7. This forces transparency and accountability into administrators' dialogue with their constituency of clients or end users. People appear at school administrators' door demanding to know what has happened to "their" funds. The new PAF guidelines makes public notices mandatory for all PAF workplans and funds. The Uganda Debt Network (UDN) coordinates civil society monitoring of PAF activity in the districts, and presents a quarterly report on behalf of civil society to the national PAF monitoring committee. UDN also conveys its monitoring results to broader civil society through published reports, PAF briefing papers, newsletters, radio and TV talk shows and a web site on the internet. Civil society clearly has an important role to play in the fight against corruption by demanding greater transparency and accountability from government. To facilitate this Government intends to review the Official Secrets Act in the light of international best practice and replace it with modem access to government information and whistleblower protection laws. 16 Based on Ushs/US$ exchange rate = 1.500/1 1 This followed a public expenditure tracking survey conducted in 1996 which found substantial diversion and 'leakage' of government funds in the education sector. 12 BUDGET CYCLE ON T J F M A M A1S CIVIL SOCIETY MILESTONES (Abbreviated) 0 E A E A P U E INVOLVEMENT IN BUDGET T V C N B R R Y N L G P POCS _______[M[Mj ~ PROCESS The first budget consultative Stakeholder workshop to reflect on workshop Aprevious budget cycle Sector working groups discuss and prepare sector budget reports "Citizens guide to the budget I I process" published The second budget consultative meeting with Local Govts. Forum on the Uganda economy Discussions between MOF and other Ministers Participation in Sector and Local Government Working Groups Preparation and presentation ofGoenntWrigrup Budget framework paper to cabinet "Background to the budget" published Submission and discussion of estimates from the ministries Budget documentation available on Presentation of Budget speech MFPED website Parliament discusses and approves budget Funding notices publicised in media and on notice boards Release and monitoring of money ado oiebad _i _Reports on abuse An aspect of responsiveness and accountability to the public, so far underutilized in Uganda, is the introduction of user charges for such public services as vehicle registrations and issuance of passports. As a result, non-tax revenues account for less than one per cent of GDP - in contrast to a regional average of 3.5%. Because clients are only willing to pay for services that are useful and which represent value for money, user charges represent an important mechanism for introducing accountability towards the end user of government services. In addition, of course, it opens the possibility of financing incremental services. Although no central records exist, Ugandan and international NGO's are thought to have a considerable presence and capacity in a number of districts and communities. NGO's do take part as direct providers of services in the health and education sectors. The WB, in cooperation with the Office of the Prime Minister, is currently planning a survey of the presence and activities of NGO's throughout the country. Approximately one third of ODA value of external assistance to Uganda is technical assistance provided directly to non-government and civil society institutions. These funds therefore do not pass through the national systems and processes of planning, budgeting and review. The move towards government budget support is viewed by many within the NGO community as a possible threat to the sustainability of their funding. 2.7 Donor Monitoring and Evaluation activities Strong donor-government dialogue mechanisms exist in terms of overall coordination through the Consultative Group (CG) mechanism and at the sector level, including the private sector, rural development, health, education, and the legal sector. Co-ordination is also good in the areas of anti- corruption, poverty monitoring, civil service reform, and decentralization. Water and sanitation, financial accountability, and procurement, by comparison, have weaker dialogue mechanisms. The last two CG negotiations have been held in Kampala, and Uganda is a pilot country within the CDF initiative. The next CG has been scheduled as part of the MTEF budget preparation process. Uganda's historical experience with project-level M&E emanates largely from the requirements associated with donor-financed activities. Nearly 300 donor-financed stand-alone projects are currently recorded in Uganda's PIP. Although no central record exists of what is traditionally termed "evaluation", a reduction in volume of donor project-level evaluations and reviews is expected to accompany the move towards general PAF and sector budget support. 13 The many different donor requirements for M&E place a severe burden on the limited GOU capacities for M&E. Budget support and the SWG mechanism has reduced need for compliance with these requirements, in particular in the health, education and agriculture sectors. However, for those officials involved with the remaining project-level donor activities, compliance with M&E requirements constitute a considerable portion of work. A total of 24 project evaluation abstracts from Uganda have been recorded by DAC18, with the latest in 1997. In addition, the World Bank has conducted 51 evaluations during the 1989-1997 period. Table 3: Donor-funded project evaluations, 1989-1997 Sector AfDB CIDA Denmark SDC SIDA USAID EU Finland WB Total Econ. Mngt., Dev. Finance 4 1 18 23 Integrated Area Dev. I 7 8 NGO, Community Dev. 1 2 1 4 Education 3 3 Health 1 3 1 1 5 11 Agriculture 2 1 1 1 12 17 Water 1 1 2 4 Roads 1 4 5 Total 8 4 1 2 2 5 1 1 51 75 In addition to project-level evaluations, Uganda has annual country programme review meetings with twenty donors, under coordination of the Commissioner, Aid Liaison Department, MFPED. Uganda is also regularly subject to study in thematic and regional programme evaluations sponsored by donors. 2.8 M&E training and capacity development A tradition of solid economic and social policy research has been M&E-relevant training at UMI: established at Makerere University, encompassing: * Project Planning and Management (from 2 weeks * Economic Policy Research Centre (EPRC) up to Certificite, Diploma) * Makerere Institute of Social Research (MISR), and e Project Monitoring and Evaluation (1 week) * Centre for Basic Research (CBR). * Results Oriented Management (ROM) (2 weeks) * ROM and Performance Improvement for Local Government (2 weeks) Social and economic research is also, of course, conducted by the * Logical Framework Approach for Project Planning, Uganda Bureau of Statistics (UBOS). All these institutions are M&E (1 week) assisted by donors, either through general capacity development * Research Project Formulation and Management efforts (such as ACBF support for EPRC or UBOS twinning with (2 weeks) Statistics Denmark), or through cooperation in respect of ad hoc * Participatory Appraisal Techniques (1 week) surveys and research projects. More managerial and vocational * Transparency and Accountability Seminar (3 days) training is provided by the Uganda Management Institute (UMI). UMI offers, as part of its regular training schedule, a number of (Uganda Management Institute Prospectus 2000/2001) M&E-relevant training courses (see box). I s Recorded in DAC Inventory of Evaluation Abstracts (http://minweb.idrc.calcidaldacloge.htm). Gross search yield for Uganda is 50 abstracts. Reported number of evaluations has been adjusted for multiple entries and mis-classifications. DAC notes that its database has not been updated since February 1998. It is likely that there are further evaluations that have been conducted, but which have not been entered into the DAC database. 14 M&E skills and capacities constitute a component of several assistance projects and programmes funded by CDF partners - e.g. in support of ministerial planning and management objectives. In other projects, there are M&E skills and capacity development activities that cater to the projects themselves. Donor sponsored capacity development activities relevant to the broader M&E skills environment include: DFID: DFID, most broadly, has been a supporter of public sector management and reform in Uganda. An important current project is the Financial Accountability and Decentralization Support Project, which inter alia aims at "mitigating the fiduciary risk in public expenditure management, for both taxpayers and donors; maximizing value for money, efficiency and effectiveness in the use of public funds; and enhancing transparency and accountability". The objectives of this project are clearly congruent with WB support both for financial management and decentralization, which underlines the need for close coordination in this area. UN: Both UNDP and UNICEF consider poverty monitoring as part of their strategic concentration areas. Ongoing and planned assistance includes support for the Poverty Forum, UPPAP, PMAU/MFPED, NHDR (UNDP) and the community based management information system (CBMIS) programme (UNICEF). DAIDA: Denmark provides support for UBOS, as well as planning and M&E activities in the agriculture and water sectors. WB: M&E is of relevance to the goals and objectives of WB-funded programmes in support of central and local government management, including EFMPII, LGDP and PRSC. Under the LGDP, a draft M&E manual for district management is to be developed, with training to operationalize it. Tentative provisions include funds for training of 600 heads of departments from districts and municipal LG's. It is important that MFPED and MLG jointly ensure that this effort be coordinated in terms of national M&E imperatives rather than narrow project interests. Analytical and evaluative activity, at current levels of demand, does not seem to have been constrained by the availability of Ugandan economists, statisticians or social scientists with the technical qualifications to conduct surveys, evaluations and other social research. There are many professionals, albeit mainly based in Kampala, from the academic, NGO and private sector consulting communities, who are ready for such work and who have the requisite facilities for data processing, reporting and presentation. However, there is a general need for strengthening of management and planning capacities, botltat the central and district levels. 15 3.0 STRATEGIC DIRECTIONS FOR M&E DEVELOPMENT The government of Uganda (GOU) has committed itself to effective public service delivery in support of its poverty-reduction priorities. The recognition of service delivery effectiveness as an imperative of national development management is strong evidence of commitment to results, which is also evident in several of the public management priorities and activities that are currently ongoing. Uganda's overall M&E challenge is to keep track of - and continuously learn from, progress with poverty- reduction efforts via the PEAP/PRSP. M&E cannot be isolated from the decision making practices and incentives that underpin national development systems and processes. To help accelerate GOU's efforts to develop a results-oriented public sector, there are seven major strategic issues which are explored in this report * Coordination and harmonization * Development goals, targets and performance indicators * Incentives for contribution to results * Devolution of managerial autonomy * Role of civil society in enforcing transparency and accountability * PEAP partnerships principles * Skills and training These are the "big issues" of how M&E can maximize its contribution to improving the effectiveness of public service delivery. A summary of the analysis is provided in Table 4, at the end of this section (page 23). These issues are overlapping and cannot be addressed in isolation. The move forward ultimately requires a holistic approach to the role of M&E within the broad framework of public sector management reform. 3.1 Coordination and harmonization The assignment of responsibilities and resources to NPA will in reality follow from national political debate at the highest level. We nevertheless caution against establishment of new, large scale planning structures. Since the time when the Uganda Constitution was drafted, the trend, in terms of international public sector management practice and debate, seems to be away from operational "master" planning as a distinct and independent government function. On the other hand, a broad oversight responsibility that includes coordination of external or independent evaluation of operational activity at different managerial levels may itself represent a viable focus for NPA. Planners and managers at the sector, district and facility levels currently have to relate, separately, to the several different M&E arrangements that have been established in respect of the different conditional grants, national funding schemes and a host of different donor requirements. Familiarization and compliance with the panoply of guidelines and reporting formats places a major workload on managers, accounting officers and planners. Also, information that flows from different M&E streams cannot easily be aggregated or compared for purposes of broader, cross-sectoral policy analysis. Substantial savings can be had from rationalization of M&E requirements and activities that differ in terms of criteria, format and periodicity. In particular, it will be important that there is congruence and synergy in the individual PAF conditional grant guidelines that are currently being formulated by line ministries. The development of a common terminology and reporting periodicity would be a practical point of departure for coordination and harmonization. 16 The recent establishment of an interministerial committee for harmonization of project progress reporting is an important initiative. However, it is crucial that coordination not be approached merely to the level of projects and the function of progress reporting. There are several initiatives of GOU that rest upon concepts of results based management that are broadly similar in objective but which have so far been uncoordinated in their approach; e.g. OOB, pay reform and ROM. Participants at the M&E workshop that was held in Kampala in conjunction with the PRSC pre-appraisal mission in October 200019, recognized the need for establishment of a high-level interministerial committee with responsibility for coordination of overall national M&E issues. The structures that have been formed for preparation of a poverty monitoring strategy, overseen by a permanent secretary level steering committee, may represent the forum that is most suitable for such coordination. In conjunction with an increasing emphasis on results and M&E, experience in other countries suggests the value of having a designated ministry, and a senior official within it, as an anchor for coordination, advocacy and capacity-building. With its central role in the PEAP/PRSP and budget processes, MFPED appears as a logical champion of M&E in Uganda. 3.2 Clarity of development goals, targets and performance indicators The PEAP has an unequivocal poverty goal for year 2017, but is not clear about what progress will be needed or the outcomes that are desirable by e.g. 2002, 2005 and 2010. Without a clear and common set of first order goals and targets cascading through a national development management system, it is not given that there is congruence between planning and management activity or that everybody is pulling in the same direction (see graph): Horizontally: between poverty-reduction policies, strategies, workplans, budgets and performance assessment Vertically: between central, sectoral, district and unit management levels. The absence of development goals that permeate different levels of the system can lead to significant inefficiencies in planning, monitoring, review and evaluation activity. The end result can be an unnecessary paper-filling workload as well as overlap in operations. The assessment of performance becomes subjective - sometimes opaque. MFPED should therefore coordinate an effort to revisit the PEAP in order to extract clear and consistent development goals, targets and performance indicators. Sectoral and corresponding district policies, work plans and budgets should then be expressed in terms of contribution to agreed PEAP/PRSP objectives. 9 Held on 19 October, with participants from MFPED, MLG, MEL MWHC, MES, MAAIF; Office of the President; Office of the Prime Minister: IGG; Moroto and Gulu district administrations, UBOS, MISR. 17 PEAP GOALS & TARGETS POLICY & WORK BUDGETS APPRAISAL & STRATEGY PLANNING INCENTIVES SECTOR Sector BP Conditional Grant Awards S.---................... - ----- --- . ... ... ....... DISTRICT District District (PAF) District BFP Equalization Development Plans Workplans Grant Criteria SERVICE UNIT Unit Goals Unit Workplan Grants from Unit performance districts rewards STAFF Job TOR, Letters of J-. Performance ob Grade PesoalPa Appointment Agreements Increments MFPED's plans to formulate a long term expenditure framework (LTEF) represents an opportunity for establishment of a clear and coherent set of PEAP goals, targets and performance indicators. A further opportunity will be to utilize the forthcoming results of the national service delivery surveys to express service delivery and client satisfaction improvement goals as a proxy measure of development objectives. 3.3 Incentives for contribution to results The best way of ascertaining that managers are motivated to achieve results is the aligiment of incentives to those results. The principles of equity are deeply embedded in Uganda's civil service culture. Grading of jobs, rather than individual performance, and across-the-board salary increases remain key features of MPS's approach to public service reform. There is weak enforcement of sanctions for malpractice or poor performance. Dismissal from the civil service is extremely rare. In budget discussions, performance is still discussed in terms of money spent or "absorptive capacity" rather than contributions to poverty reduction. There is little difference between indicative and final sector budget ceilings, suggesting that review of progress with goals matters little in the allocation process. Similarly, the release of funds under the conditional grants system has reportedly become an almost automatic operation - divorced from considerations of contribution to actual frontline results. Where funding is dependent on compliance with progress reporting requirements in its own right, managers and programs are effectively rewarded for doing the paperwork well instead of making a difference in clients' lives. Strong central coordination needs to be applied to setting of standards for outputs and unit costs within the MTEF reform process. An inherent risk with output oriented budgeting is that if managers define their own performance indicators they tend to choose those that can easily be measured rather than those that are important. Completing a number of workshops or producing booklets may well be outputs, but they are of the lowest order. 18 To strengthen the attention of civil servants on poverty-reduction outcomes, the definition of goals, performance and implementation success should be broadened from an emphasis on processes and outputs to encompass achievements in contributing to outcomes. An immediate step would be to broaden the focus on physical outputs to encompass measures of reach: service facility access, coverage, use and client satisfaction. The introduction of reward for contribution to PEAP outcomes20 or service delivery improvements - as a determinant of resource allocation and individual performance assessment - would provide a strong incentive to maximize effectiveness of poverty reduction efforts. A weakness of the ROM initiative to date has been that its activities focus on the conduct of workshops that develop skills pertaining to formulation of results statements - without clear linkages to the core operational realities of budgeting, work planning or performance assessment. Seen in isolation, what is learned may be the verbose language of grand intentions, often far removed from what is practically possible. Success with ROM is not reached at the end of a workshop or even when everyone knows what it is about; it only works when everyone changes the way they act in their daily business. In recognition of the need to tie ROM more closely to the operational processes, MFPED efforts are underway for closer alignment with the OOB initiative. Adoption of service delivery reach and client satisfaction as a key focus for departmental, district and facility level goal definition and target-setting would provide a barometer for measurement of improvements in effectiveness of poverty reduction efforts. 3.4 Devolution of managerial autonomy Even though responsibility for delivery of all major public services has been transferred to local government, the bulk of budget resources and professional staff remain with central agencies. One of the shortcomings of the current MTEF process is that the wage bill is largely outside the expenditure allocation process carried out by the sector working groups. This is because the staffing levels are typically taken as given and any pay increase is allocated across the board. As a result, a key part of total expenditures is effectively ring-fenced in sector working groups' expenditure allocations. It would be useful to provide a greater role for the sector working groups to make explicit recommendations with respect to staffing and pay levels and possible pay increases by categories when such increases relate to improved service delivery. The PAF underlines the contradiction between on the one hand ambitions to decentralize and on the other increased central influence over resource allocation. Both Government and donors acknowledge that the conditional grant system limits the ability of LGs to budget for local needs. LG's are, for example, not permitted to pay salaries that are sufficient to attract and retain appropriately qualified personnel. In some areas the lack of flexibility concerning the optimal mix and means and ways to provide the services has compromised optimal service provision21. If districts are to deliver services efficiently, they need to be equipped with information and greater authority to make trade-offs between wage, non-wage recurrent, and capital expenditures. 20 Outcomes and Accountability: The obvious problem with development outcomes is attribution - that change usually emanates from the collective efforts of many different managers, programmes or institutions. Their separare contribution can rarely be objectively determined. Mechanical measurement of change in outcome indicators is therefore usually not satisfactory as an exclusive basis for individual performance assessment or enforcement of accountability. What managers can and should be held accountable for is "keeping their eyes on the ball" - by: (i) identifying outcomes upon which they aim to have an influence. (ii) ascertaining that outcome-level change is monitored. (iii) explaining how the activities and outputs they are responsible for make a difference to the outcomes that are being pursued. Assessment of contribution to outcomes is ultimately qualitative. But, at the end of the day, it is better to have approximate information about important issues than to have precise information about what might be irrelevant. 2' NORAD. SIDA and Danida, October 2000, "Public Financial Management Issues in Uganda", Joint Review. 19 3.5 Role of civil society in enforcing transparency and accountability The importance of mobilizing public service users themselves as monitors of public service delivery has been recognized by GOU. At a recent WB workshop22 in Kampala, held in conjunction with the preparation of the current report, a number of NGO's and parliamentarians affirmed the role of civil society in assessing public sector performance and in enforcing accountability. The success that has been had with the practice of public notices should be exploited and expanded to its fullest. It can be replicated in a broad range of sectoral and local planning and management operations. The posting of notices could be applied not just for resource allocations, but also for other aspects of public sector operations such as appointments and promotions, work planning and decision making criteria. To facilitate the practice, it is recommended that all operating units be requested to designate an appropriate space for posting of notices. A practice of placing notices in newspapers and through radio broadcasts would give additional thrust. Failure to facilitate appropriate public notices can be made a sanctionable managerial responsibility, with NGO's involved in monitoring compliance. Instant mini-surveys or client 'reportcards' - where service users upon exit from a facility rate different aspects of facility service provision, should be considered as a mechanism for direct end user feedback on service facility quality23. Reportcards can be used to monitor aspects of client satisfaction on a daily basis, can be tailored to individual service facilities, and can be fed directly into frontline operational decision making. Reportcards complement the NSDS by being an ongoing practice rather than sporadic 'snapshot' exercise. Report cards can be used to monitor performance relative to national standards established through NSDS or relative to commitments made in client charters established by individual ministries or the service providers themselves. The Community Based Management Information System (CBMIS) initiative, which aims to help communities articulate their development needs and priorities, as well as MGLSD efforts to mobilize communities in the local development planning and management process, can be harnessed in strengthening transparency and participation in the M&E function. In order to maintain the credibility that initial transparency initiatives has created, it will be important that government is seen to act upon cases of malpractice that surface through civil society monitoring of public services. 3.6 PEAP partnerships principles It is recommended that donors, in the spirit of their support for the CDF initiative, should be requested to help ascertain that all domestic development efforts are fully aligned with national policy priorities and M&E practices. The PEAP partnership principleS24 should be vigorously promoted. CDF partners can, moreover, be requested to support the pooling of project and programme-level management and M&E skills/training components and activities into a coordinated, civil-service wide capacity development effort. Although locally based donor agencies may have little autonomy over their agency policies, Uganda's pilot status within the HIPC and CDF initiatives may be leveraged for medium- term change in practices. 22 "Assessing public sector performance - a role for civil society", held in Kampala 16 October 2000. 25 The practice of "suggestion boxes" is widespread, but responses are reportedly not systematically analysed or acted upon. Suggestions boxes are, in any case, highly vulnerable to biased sampling errors. 2Original set of principles identified at CDF-sponsored Stockholm Conference "Making Partnership Work on the Ground", August 1999. Quoted in Revised PEAP (Vol. 1) Draft 3, July 2000. 20 Through its focus on clarity and consensus about development goals and targets, the process of planning and conducting M&E can improve communication between policy and programme stakeholders, can help in building agreement on desirable outcomes and programme strategies, and can help in identifying overlaps in operational responsibility. M&E can thus be a vehicle for building partnerships within Government and between Government, civil society and external cooperative partners. Proposed PEAP partnership principles: Shared Commitment: Donor support will only be sought/provided for programmes that are in the PEAP In addition Government will...... 1. Continue with increased focus on poverty eradication (at minimum PAF funded programmes as a share of total budget will remain constant) 2. Continue with increased tax revenue effort 3. Assume full leadership in donor coordination process 4. Decline any offers of stand-alone donor projects 5. Strengthen monitoring and accountability (including value for money evaluations) 6. Continue to improve transparency and combat corruption 7. Continue to strengthen district capacity 8. Develop comprehensive, costed and prioritised sector wide programmes eventually covering the whole budget 9. Further develop participation and coordination of all stakeholders (including Parliamentarians) 10. Strengthen capacity to coordinate across Government (so it speaks with one voice) In addition donors will...... I. Jointly undertake all analytical work, appraisals and reviews 2. Jointly set output/outcome indicators 3. Develop uniform disbursement rules 4. Develop uniform and stronger accountability rules 5. Ensure all support if fully integrated into sector wide programmes and is fully consistent with each sector programme's priorities 6. Continue to increase level of untied sector support 7. Increase level of delegation to country offices 8. Abolish topping up of individual project staff salaries 9. End individual, parallel country programmes and stand-alone projects 10. Progressively reduce tying of procurement 3.7 Skills and training The strengthening of M&E cannot be encapsulated by technical training in any one kind of skill. M&E ultimately draws on a broad range of technical fields, including economics, accountancy, social science research methodology, contract administration, information management, general management and "process facilitation" or consulting skills. Uganda has a fairly well developed infrastructure for training in these fields, and although an exhaustive review of human resource development needs is beyond the scope of this review there are undoubtedly shortcomings and needs for institutional strengthening. Skills are needed in central government, in the district administrative apparatus, and at the level of frontline service facilities. Technical skills and training are a necessary, albeit not sufficient, precondition of capacity development. Technical skills deficiencies, per se, do not appear to constitute the major impediment to effectiveness of policy implementation. Rather, it is the structure of incentives and the dynamic and culture of decision- making. M&E will only flourish where there is a policy level and management demand for what is produced through M&E; where its practice follows as a consequence of the incentives embedded in public service systems; where rewards and sanctions are guided by achievement of results; and where managers collectively perceive of a self-interest in adopting tools of continuous assessment and learning. With the ongoing gradual shift in GOU emphasis towards downstream results, there will be a need for M&E activity that goes beyond mechanical monitoring of expenditures and bureaucratic activity. It is expected that there will be a corresponding increase in demand for use of evaluative approaches that can 21 help improve knowledge about interrelationships between operational programmes and service delivery on the one hand and the reality of poverty or development changes on the other. Amongst the training that is on offer in Uganda, a noteworthy absence is planning and conduct of programme evaluation. Another area of skills for which a demand may emerge, will be the planning and conduct of client satisfaction surveys and scorecards - in particular at the district and service provider facility levels. Under both the LGDP and EFMPII IDA projects there are funding opportunities that are relevant to M&E capacity and skills development25. In addition, part of the 5% of PAF earmarking for "monitoring and accountability" should be considered as a funding source for evaluation skills development. M&E skills can be placed on the agenda of the Government Training Policy Framework that is currently being prepared, as well the district management capacity development efforts that are being planned under the LGDP. A further element of skills and capacity development would be the establishment of a national evaluation association, a proposal that was made by participants at the M&E workshop organized by MFPED in Kampala in October 2000. 2 Component 4 of LGDP, valued at US$ 12.7m, is aimed at supporting the management, monitoring and evaluation functions within the context of Uganda's decentralization programme. 22 Table 4: Summary of Strategic Issues, Challenges and Possible Actions Overall M&E Monitor & provide feedback on progress in poverty alleviation Task 1. Coordination 2. Development 3. Incentives for 4. Devolution 5. Role of civil 6. PEAP 7. M&E skills Strategic and goals, targets contribution to of managerial society in partnerships training M&E harmonization and results autonomy enforcing principles Issues performance transparency indicators and accountability Positive Draft Poverty * PEAP/PRSP as * Recognition of Decentralized * Consultative *Draft/CDF Awareness of elements in Monitoring overall framework service delivery responsibility for nature of PEAP partnership M&E importance Uganda Strategy of poverty priorities effectiveness as service delivery process principles * Availability of * Sector Working * Training in ROM imperative of public * Introduction of * Transparency of * Trend towards local researchers: Groups (SWG) as (results oriented management output oriented budget process budget support local academic nexus of planning, management) being * National Service budgeting (OOB) * Practice of public * Consultative and training budgeting piloted Delivery Survey * Comprehensive notices group meeting traditions Efforts to * "Indicator retreat" 2000 district plans * Significant being scheduled harmonize project as part of budget * LGDP capacity capacity of NGO's as part of budget progress reporting cycle development * Government/ civil cycle * Earmarking of society dialogue at 5% of PAF funds central level for 'monitoring & accountability' Some * Separate Inconsistency in Performance * Generally weak * Need for * 1/3 of ODA is * Weak challenges planning and clarity of goals at assessed in terms of management improved TA outside of management being en- reporting formats sector level expenditure and capacities at local stakeholder Government skills at LG countered for different * PEAP goals bureaucratic levels consultation in budgets and levels funding sources correspond to activity * Prescribed priority-setting M&E * Likely increase * Sector/district ministerial activities * Weak linkage spending ratios of * 1/3 of ODA is TA * Nearly 300 in demand for policies, budgets rather than poverty between resource conditional grant outside of stand-alone management and workplans outcomes allocation and scheme gives Government projects remain conduct of M&E approached as * Few goals are performance little flexibility budgets and M&E * Twenty dealing with separate exercises defined with * Rewards geared for managers to practices separate annual inter-relationship * Alignment and measurable to good paper-work adapt to local * GOU/NGO programme between service coordination of timeframe. baseline * Inconsistent needs dialogue at center reviews delivery and different results and targets enforcement of * Number and not mirrored at _* Local donors poverty outcomes management * Weak linkage sanctions for poor level of posts local levels cannot depart initiatives between sectoral performance directed from the from corporate * 1/3 of ODA is and district goals *Corruption largely center M&E guidelines TA outside of unpunished? Government budget Possible * Identification of * Cascading of * Introduction of * Allow greater * Extend * Leverage of * Strengthen actions to an M&E champion PEAP goals and reach and outcomes local autonomy transparency donor support for local capacity for address ministry/agency targets through as yardstick of over recruitment, practice from CDF and PEAP programme * Establishment of planning, budgeting success and salaries and non- allocation to to increase evaluation skills challenges 'core M&E' and work planning performance reward wage execution synergy in training arrangements (such at sector, district * Use of NSDS as expenditures * Client planning, * Availability of as via a formal and facility levels barometer of client *Ensure stronger 'Reportcards' as reporting & M&E funding M&E framework), * LTEF focus on satisfaction local oversight as complement to review within PAF, harmonization of defining medium- improvements the quid pro quo NSDS * PRSC policy LGDP and terminology, term PEAP goals & * Introduce value *Introduction of * Make NGO's matrix as joint EFMPII reporting formats targets for money concerns participatory eligible for PAF planning & * Establishment and periodicity in Finance Act M&E practices as 'monitoring & review of national * Improved *Introduction of key management accountability' mechanism evaluation coordination client service function funding association between inspection charters *introduction of and audit agencies client service charters 23 4.0 NEXT STEPS Ugandan authorities have recognized the importance of instilling an orientation towards real results in their poverty eradication efforts. Effectiveness of public service delivery has been defined as the current theme of development management and reform. A number of actions and initiatives, which relate to the imperative of results orientation, are underway. The major problem with e.g. PEAP formulation, OOB, ROM, pay reform, local government capacity development, poverty and service delivery monitoring has been that these efforts have been dealt with as separate and compartmentalized issues. From an M&E perspective, the overall challenge for government is then coordination; to bring alignment, coherence and synergy to the order of development goals, poverty eradication progress measures, work planning instruments, managerial incentives, programme review and performance assessment practices. MFPED has proven its ability to bring consultation and coordination to multi-sectoral national tasks, such as formulation of the PEAP and economic management reform. With its inevitable responsibility for the resource component of the decision making equation, MFPED is logical champion of the coordination task at hand. The previous section sought to highlight some of the major strategic areas in which improvements, as seen from an M&E perspective, can be made. These will require policy consultations and operational action on several fronts. The strengthening of results orientation and M&E is necessarily an ongoing and long-term process of advocacy and awareness building, institutional liaison, systems adjustment and skills formation. GOU is encouraged to explicitly recognise and work to strengthen it within the PEAP/PRSP and CAS/PRSC frameworks. The policy matrix being prepared for the PRSC appropriately defines M&E as a cross-cutting public sector reform issue within a results management context. This report highlights some strategic issues that seem critical in the specific context of Uganda. However, it is for GOU to validate and prioritise among the many possible avenues for addressing the issues raised. The immediate priority would be to establish a more detailed action plan and timetable for coordination, technical reviews and assignment of responsibilities. In the following section, a small number of specific short-term actions critical to making headway with M&E and results orientation are proposed. 4.1 Refinement of PEAP goals and targets In the current budget cycle and ongoing revision of the PEAP, emphasis must be placed on distillation of clear and consistent poverty goals, targets and performance indicators pertaining to the reach and outcome levels of change - covering a medium term timeframe such as 2, 5 and 10 years. If the process of identifying performance indicators is left entirely to ministries themselves they are likely to respond with measures that primarily reflect efforts and processes. Central coordination and civil society involvement will therefore be required to ensure that measures identified will represent a comprehensive and coherent reflection of real progress with poverty eradication. 4.2 Continuous monitoring of service delivery The 2000 national service delivery survey, the results of which will be available shortly, represents an immediate opportunity for operationalising service reach and client satisfaction. It is critical that the NSDS not be approached as "just yet another study", but rather as an instrument for establishing goals and targets in respect of client service improvements and standards for performance assessment - via an instrument such as client service charters. In this regard, it will be important that the regular conduct of the NSDS is assured and that service delivery data be integrated with ministerial MIS systems. 24 4.3 Expand scope of reporting harmonization The mandate for current efforts to define a uniform format for project progress reporting should be expanded to encompass harmonization of reporting pertaining to broader sector and poverty programmes. It would be useful to establish an inventory of the entire body of domestic M&E and reporting guidelines in order to establish a "core set" of M&E arrangements common to all funding schemes, expenditure types, sectors, and administrative levels. An immediate concern would be review of the sector-specific PAF guidelines that are under preparation by line ministries. A further item of harmonization would be donor M&E arrangements, as articulated in the proposed CDF/PEAP partnership principles. 4.4 Finalization of poverty monitoring strategy Ongoing efforts, coordinated by MFPED, to draft a national poverty monitoring strategy represent an important opportunity for bringing closure to existing uncertainties regarding the objectives, roles and responsibilities for M&E. The national poverty forum, the poverty monitoring steering committee and the poverty monitoring network are forums that bring together the appropriate senior and technical level officials -from government and from civil society. These structures can be brought to bear on the needs identified above for refining PEAP results indicators and for harmonization of reporting. The poverty monitoring strategy should comprise more than a technical review of PEAP monitoring indicators. The strategy should seek establish the linkage between the two currently separate streams of poverty and resource monitoring. 4.5 Identify and disseminate "good practice" approaches to M&E Uganda already has a number of activities and initiatives that broadly relate to the M&E concerns raised by this report. The overall opportunity is to bring alignment, coherence and synergy to what exists. This will also require economy and prioritization among the diverse approaches and methodologies at hand. We believe that it would be useful to actively seek out and promote individual practices and instruments, among those that exist at the sector, district and facility levels, that appear to best -fit Uganda's overall development management needs. The issue is not one of imposing a uniform system of M&E onto the responsibilities of already overburdened managers, but rather for GOU to take a holistic stance on what represents a sensible balance between the ideal and the practical. 25 ANNEX 1: CONTEXT OF DEVELOPMENT PLANNING AND MANAGEMENT Uganda has undertaken comprehensive reforms in economic management, and has within the last decade achieved stabilization of its public finances. The average real rate of GDP growth has been 6.9 percent per annum since 1990/91, resulting in an annual 3.7 percent increase in real GDP per capita and a 20 percent decline in poverty (headcount index) from 1992 to 1997. On the social front, important progress has been made in respect of e.g. primary school enrollment and in reduction of HIV/AIDS prevalence. Uganda's human development index, a composite measure of incomes, longevity and literacy rates, has improved from 0.329 in 1992 to .509 in 1999- . However, although the proportion of Ugandans living in consumption poverty fell from 56% in 1992 to 44% in 1997, wide disparities remain in the rate of welfare gain. External acclaim for Uganda's recent development management efforts is evidenced by her advanced position within the highly indebted poor country (HIPC) initiative, being the first country to qualify for enhanced HIPC relief, as well as the trend towards programmatic aid entrusted to national authorities. A: PEAP as national development framework With national aspirations and directions for long-term development having been brought into focus through the Vision 2025 exercise, the Poverty Eradication Action Plan (PEAP) has guided the formulation of Government policy in Uganda since its inception in 1997. PEAP has emanated from a broad process of analysis, reflection and consultation - drawing on local communities, civil society, the donor community and the government. The formulation of PEAP has been coordinated by the Ministry of Finance, Planning and Economic Development (MFPED). The PEAP represents Uganda's response to the Comprehensive Development Framework (CDF) initiative, and has been revised into the format of the World Bank/IMF Poverty Reduction Strategv Paper (PRSP). The overall objective of the PEAP is to reduce the incidence of absolute poverty from 44% in 1996/97 to 10% by 2017. The PEAP is established on four major pillars: * Creating a framework for economic growth and transformation * Ensuring good governance and security * Directly increasing the ability of the poor to raise their incomes * Directly increasing the quality of life for the poor B: Budget process Uganda's current MTEF three year rolling budget system represents the interface between PEAP goals and operational management. The fiscal year is July-June, and the annual budget cycle starts in October with an inter-ministerial workshop at which tentative budget ceilings are announced by MFPED. A consultative process drawing on the activities of the sector working groups (SWGs - discussed below) follows this and culminates in agreed sectoral Budget Framework Papers (BFP) that are normally completed by end of 26"Uganda National Human Development Report 2000", UNDP, Kampala. forthcoming 26 April. In parallel, but commencing in November, a similar process is undertaken with the 45 districts under the coordination of the Ministry of Local Government (MLG). As an input to their BFP preparation, most districts prepare a District Development Plan (DDP). The sector and district BFP's are ultimately consolidated into the MTEF. MFPED conducts its, review of the MTEF process through the series of BFP consultative meetings and has established a unit for Budget Policy and Evaluation, headed by a Commissioner. The budget process in Uganda is characterized by relative transparency and openness, with MFPED having 27 introduced a number of measures to keep the public informed and involved throughout the cycle-, including an annual retreat with civil society and donor stakeholders to review experiences from the previous budget cycle. Both ministries and districts have planning units with officers responsible for coordinating strategy planning, budget preparation, monitoring and reporting. Accounting Officers have responsibility for accounts management, expenditure control and liaison with the audit functions. Each administrative unit has a Chief Administrative Officer (CAO) - in Ministries this is the Permanent Secretary (PS). PEAP is buttressed by the Poverty Action Fund (PAF), which. has been established as a vehicle for channeling incremental resources made available through HIPC into the Priority Programme Areas (PPA) of primary health, primary education, water and sanitation, agricultural extension and rural roads. In addition to HIPC, the PAF includes budget support funds pledged by external donors. PAF spending is projected to increase by 35 percent in 2000/01; 10 percent in 2001/02 and 17 percent in 2002/03. PAF spending will increase, as a share of GOU expenditures, from 22.7 percent in 1998/99 to 32.5 percent in 2002/03. The MTEF budget format has been important in introducing a planning horizon that extends beyond individual projects and financial years. To further extend the resource planning horizon, a long-term expenditure framework (LTEF), covering a 10-year period, is being considered. The resource constrained budget system helps induce realism in sector planning. To further strengthen results orientation within the MTEF process, MFPED is introducing output oriented budgetine (OOB). The approach is based on unit costing, yet to be established, whereby types of outputs are given a standard value against which budget proposals and performance can be assessed. Our recommendation is that strong central coordination be applied to setting of standards for outputs and unit costs. An inherent risk with output oriented budgeting is that if managers define their own performance indicators they tend to choose those that can easily be measured rather than those that are important. Completing a number of workshops or producing booklets may well be outputs, but they are of the lowest order. As part of its effort to further improve expenditure management, the Government has embarked on the modernization of its fiscal systems. It plans to commence this process with a fiscal management study (FMS) under IDA Economic and Financial Management Programme (EFMPII29). The FMS will provide a roadmap for the computerization of GOU's fiscal systems beginning with the budgeting and accounting processes at central and local levels. EFMPII also addresses harmonization of the central and local government planning processes and institutionalization of the preparation of local government BFP's. 27 MFPED, "Improving Budget Transparency in Uganda: Informing stakeholders and including them in the budget process", Phase I Report. See also Gariyo. Zie, May 2000, "Citizen involvment in the budgetary process in Uganda", Uganda Debt Network, Glasgow (http://www.worldbank.org/participation/ugandabudget.htm). 28 MFPED, October 2000, "(Draft) Report on Forum on Stakeholder's Reflection on the Previous (FY1999/01) Budget Process". 2 World Bank, October 1999, "Second Economic and Financial Management Project". Project Appraisal Document, Washington D.C. 27 C: Sector planning PEAP provides a reference framework for sectoral and district plans and investment programmes. Sector plans for implementing PEAP: Roads 10 year Main Road Sector Development Plan (1996); Separate plans for rural and urban feeder roads under preparation Rural Development: Plan for the Modernization of Agriculture (Draft April 2000) Education: Education Sector Investment Plan (Nov 1998) Health: Health Sector Strategic Plan (Oct 1999) Water: Separate plans for rural and urban water under preparation Land: Land Act Implementation Plan under preparation by MoWLE Social Development: Under preparation by MGLSD Environment: Under preparation by NEMA Justice/Law and Order: Separate draft plans for Commercial and Criminal Justice System Reform (July 2000) The annual cycle of work planning and budget preparation starts with MFPED resource ceilings and is coordinated by line ministries with the support of Sector Working Groups (SWG). Terms of reference for the SWG deliberations are issued by MFPED at the beginning of the annual budget planning cycle (Sept./Oct.)30 The SWGs bring together key central ministries, the respective technical agencies, NGO's and the donor community in the process of preparing sectoral BFP's. Discussions between MFPED and the SWG's are aimed at identifying implementation bottlenecks, inefficiencies in existing operations and potentially unsustainable imbalances in the relative size of the recurrent and development programmes. The discussions also take account of any upcoming policy initiatives in order to ensure that all new policies are comprehensively costed to reveal the full extent of their fiscal implications. The SWG's are increasingly becoming the nexus of the sectoral planning process, and also of stakeholder consultation and coordination. The sector BFP's encompass the following items: I. Statement of the mission, overall goals and objectives of the sector/ministry 2. Analysis and evaluation (sic) of outputs and services delivered over the (previous) financial year 3. Analysis of the implications of policy reforms and issues for sector performance 4. Planning outputs, activities and resource allocations for the MTEF To guide their planning, technical management and advisory efforts, several ministries are currently in the process of developing Management Information Systems (MIS). However, there are, as of yet, no standards for aggregation or comparison of data. There is a multiplicity of stand-alone micro-systems that are generally not compatible or designed to exchange data. Consideration should be given to providing SWG's with a mandate for agenda-setting in respect of research and evaluation, allowing sector stakeholders to jointly synthesize what has come out of the entire range of consultations, reports and review instruments - and then to demonstrate how the lessons drawn relate to proposals for the future. The initiative would have an important effect in terms of establishing transparency to future learning intentions. 30MFPED. 1999, "Budget Framework Paper 2000/01-2002/03: Sector Working Group Discussions - Terns of Reference". 28 D: Decentralized service delivery GOU's policy of decentralizatiorr3 is founded on the devolution of responsibility for planning, resource management and service delivery to 45 districts with further administrative units at the county, sub-county, parish and village levels. While the LG's in Uganda are autonomous corporate entities, the Ministry of Local Government (MLG) and its decentralization secretariat exercises broad oversight of their performance, and functions as coordinators of policy and central support facilities for the decentralization work. The Local Government Finance Commission (LGFC) supports MLG and LG's in practicing accountability and transparency, and is empowered to monitor LG budgets to ascertain their alignment with GOU priorities. At the district level, elected District Councils (DC) perform oversight of operations. Councilors are non- executive, but receive sitting allowances. District Service Commissions (DSC) are gradually taking on appointment and payroll responsibilities that have hitherto been handled from the center. According to the Local Government Act 1997, the line ministries have an obligation to offer the LGs advice, support, supervision and training within their respective sectors. Further support for LG and community development is provided by the Ministry of Gender, Labour and Social Development (MGLSD). Management committees have been introduced at the level of individual service facilities in the health and education sectors. These serve as constituency representatives and provide both strategic and operational guidance to facility managers. The primary district planning instruments being introduced are: * Local Government Budget Framework Paper (LGBFP) * District Development Plans (DDP) * District PAF Workplans The LGBFP is a single document consolidated by MLG. DDP's have currently been produced by approximately half the districts. The bulk of transfers to local governments (LG), currently 78%, are conditional grants, which are negotiated between line ministries and individual LG's. Additionally, unconditional grants are minimum grants paid to LG's to run decentralized services and to be supplemented PAF Conditional Grants: by LG's own income, and equalization grants are paid for giving subsidies or making special provisions for the least * Rural Roads; developed districts, and are to be based on the degree to * Agricultural Extension; which a LG unit is lagging behind the national average * Prmy Healthcare; standard for a particular service. * NGO Primary Healthcare; * Lunch Allowance for District There are currently 23 different conditional grant schemes, of Health Units; which 11 are funded through the PAF. Individual LG's HeDit Un Wtr prepare separate "activity based" workplans for each of the eleven PAF conditional grants schemes (see box). District Water Development; * Primary Education; * Primary Education Development; * Primary Teachers Salaries; * Monitoring and Accountability. 3 The system of local government in Uganda is provided for in the 1995 Constitution and the 1997 Local Government Act. 29 The basic conditionality of the conditional grants is associated with adherence to very detailed controls over School facilities grant conditions: the types of expenditure allowed (see box for example of sholypfaciliexiegant).e Distric m eoxor nedampcetra i) For new classrooms. the % of work for each stage is fixed at: school facilities grant). District managers need central authority approval for any re-allocations in excess of 10% * Mobilization (Advance Payment): 8% of resources. Releases of PAF funds are contingent upon * Foundations/sub-structure: 22% compliance with the reporting requirements. * Walling including beams and gables: 25% * Roofing including roof sheets: 25% Finishing (plastering, flooring, carpentry): 15% Both Government and donors acknowledge that the * Retention for defects period (6 months): 5% conditional grants place burdensome reporting requirements on districts, in addition to limiting their ii) For completion of classrooms, the % for each stage is fixed at: ability to budget for local needs. LG's must hold separate "Mobilization: 8% banking and record-keeping accounts for the different Ring beam: 22% conditional grants, as well as for different donor projects. Roofing: 35% Consequently, some LG's have to maintain more than 50 * Finishes including floor slab and screed: 30% * Retention: 5% different bank accounts. iii) For Latrines. the % of work for each stage is fixed at: The IDA-supported local government development project (LGDP32) will provide technical and financial resources to * Foundationtsub-structure: 20% enable the development, testing and application of a range Roaling: 25% of participatory planning, budgeting and resource * Foing (flooring carpentry): 20% allocation procedures and programme management Retention: 5% systems in a sub-set of LGs. (Excerpt from "School Facilities Grant for Primary Schools: Planning and Implementation Guidelines for District and Urban Councils". Ministry of Education and Sports, January 2000) E: External assistance Uganda is in the middle range of developing countries' aid dependence, with OECD/DAC estimating total ODA to Uganda equivalent to 12.1% and 7.1% of GNP in 1997 and 1998, respectively. Total external assistance translates into approximately 85% of Uganda's development budget or public investment plan (PIP). The PIP3 lists a total of 46 donors, of which 19 multilateral, 21 bilateral and 6 NGO's, with projected overall disbursements of US$995m for the 1999/00-2001/02 period. MFPED projections for aid disbursement, by donor, is attached as Annex 2. An increasing share, currently 19%, of external assistance is being channeled into budget support, either in the form of general PAF support or earmarked for specific sectors, in particular for the health and education sectors, which is then subject to monitoring and review with donor involvement in the SWG process. The forthcoming WB Country Assistance Strategy (CAS) proposes a shift in IDA's aid modalities from project aid to budget support for poverty reduction efforts. To support further reform in the public sector, IDA is considering developing a line of Poverty Reduction Support Credits (PRSC). The main objective of this operation would be to contribute to GOU's efforts to improve service delivery across the board in the context of the PEAP/PRSP and the MTEF. Actions would be taken within the cross-cutting reform issues of M&E, procurement, public sector employment and pay reform, financial management, transparencylaccountability and anti-corruption as well as measures to enhance quality and cost efficiency of public service delivery. 12World Bank, October 1999, "Local Government Development Progrm", Project Appraisal Document, Washington D.C. 3 http://www.oecd.org/dac/images/AidRecipient/uga.gif 3 MFPED, August 1999, "Public Investment Plan, incorporating the PEAP volume II 1999/2000-2001/02 priority projects". 30 Poverty Action Fund resources 1999/00 (Ushs Mn, US$ '000) 1999/00 Budget Ushs Mn. US$ '000 Government own resources 47,750 31,833 HIPC and debt buyback (Austria) 70,100 46,733 General PAF Donor Support (Sweden, Netherlands) 12,190 8,126 Earmarked Donor Budget Support 63,940 42,626 Of which: Netherlands (Primary Education, District Dev't) Sweden (General, Accountability, Health) 9,440 6,293 UK (Primary Education, Health) 6,180 4,120 Belgium (Primary Healthcare) 17,000 11,333 Republic of Ireland (Primary Education, Health) 6,000 4,000 EU (Primary Education) 5,110 3,406 USAID (Primary Education) 12,220 8,146 8,000 5,333 Total Poverty Action Fund Resources 193,980 129,320 Source: MFPED: Background to the Budget, June 2000. Based on Ushs/US$ = 1,500 The proposed PRSC requires agreement on key indicators and benchmarks to be monitored in the health, education and water sectors. To coordinate eventual implementation, an interministerial PRSC Task Force, chaired by the PS, MFPED has been established. Several donors might be prepared to provide medium- term indications of predictable resource flows to the budget (DFID, Ireland Aid, SIDA, European Commission, AfDB) in parallel to the PRSC. F: Accountability institutions The 1998 National Integrity Survey found that four out of ten public service clients reported having to pay a bribe to obtain service. In the health sector, one study found that close to 80% of drugs and supplies disappeared from the health units. A recent study of the Ugandan commercial sector found a majority of firms perceiving of corruption as an important impediment to expansion. The most critical accountability institutions in Uganda currently include: Anti-corruption Inspection Audit Ministry of Ethics and Inspectorate General of Public Accounts Committee of Parliament; Integrity Government; Office of the Auditor General; Treasury Inspectorate; Sector ministry internal audit; Sector ministry Inspectorates; Local public accounts committees, District Inspectorates District internal audit; I External donor audits Government has recognized the need to enhance the integrity and accountability of its institutions by (i) increasing public oversight through increased transparency, education and awareness, (ii) promoting capacity building; and (iii) strengthening enforcement of laws and penalties. To this end, the 'Government Strategy and Plan of Action to Fight Corruption and Build Ethics and Integrity in Public Office' has been 31 prepared by the Ministry of Ethics and Integrity (DEI)35 and was launched by H.E. The President in July 2000. Several constraints to the implementation of the plan of action remain, e.g., lack of resources, both human and financial, low public sector salaries, weak information management, and social, historical and cultural factors contributing to elevating informal rules over the formal ones. There is clearly room for accountability institutions and ministry inspectorates to improve the coordination of their visits, selection of districts and review of follow up to earlier inspection findings and recommendations. A further concern with accountability arrangements is that the 1964 Public Finance Act does not compel accounting officers to obtain value for money nor for the Auditor General to examine and validate for this. Considerable uncertainty therefore remains in obtaining comfort that value for money has been achieved in budget execution. In line with the recent draft country financial accountability 36'C assessment , we recommend that this issue be addressed in the revision of the Act. An innovative way of introducing accountability is represented by the existing stipulation that districts post mandatory public notices for every conditional grant under PAF each quarter - giving details of workplans, their costs and funds released. G: Public service management and reform initiatives The 1989 Public Service Review and Reorganization Commission (PSRRC) found that the Uganda Public Service was marked by a bloated structure, inefficiency and poor performance. Problems identified were a dysfunctional organization, poor management skills, inadequate pay, moonlighting, corruption and a lack of discipline. The number of staff employed by the Public Service has been cut from over 320,000 in 1990 to 157,000 in 1997. The number of Ministries has been reduced from 38 in 1992 to 14 in 1998. The Ministry of Public Service (MPS) is host to the Public Service Commission (PSC), which guides appointments, service conditions and government payroll; as well as the 1997-2002 Public Sector Reform Programme (PSRP), which is overseen by the Public Service Reform Coordinating Committee (PSRCC)17. An overall goal of government reform is to achieve a smaller, better paid and better performing public service. Some categories of public servants have had their pay increased almost tenfold over the 1993-97 period. MPS estimates that, on average, Public Service pay is still only 42% of the salaries for comparable jobs in the private sector. The pay differential is greater at senior management levels, but smaller within certain professions such as teaching and nursing. A small number of staff working within the civil service enjoy relative prosperity in donor funded pay enclaves. Although the average rate of staff turnover is only 4.2% p.a., low pay remains a constraint to motivation for many civil servants. To inform the development of a Pay Reform Stratev3 being formulated by MPS, studies have recently been completed on job evaluation and market comparators. GOU has recognized that improvements in pay will not automatically result in better motivated staff or improved performance. Staff are unlikely to perform to their potential unless they are clear about the standard of conduct and performance required of them, and that there are differentiated sanctions and rewards. Moving pay closer to private sector levels must therefore be accompanied by a fundamental shift in management attitudes, and the establishment of a different work culture. 3 MEI's predecessor, the Department of Ethics and Integrity (DEI), in the Office of the President, was (reportedly) established as a result of a previous (donor) evaluation of the government's anti-corruption strategy (1998). 6 World Bank, September 2000, "First Draft: Republic of Uganda Country Financial Accountability Assessment", Washington D.C. 37 Chaired by the Vice President, and attended by the Permanent Secretaries of the Ministries of Education, Public Service, Justice and Constitutional Affairs, Finance, Planning and Economic Development, and Local Government. 38MPS, August 2000, "(Draft) Proposed Pay Reform Strategy for the Public Service". 32 A results oriented management scheme (ROM) was initiated back in 1995, and Cabinet has now approved a plan for its introduction to all ministries and districts. The ROM, which is coordinated by MPS, introduces a logframe approach to definition of goals and objectives. A weakness of the ROM initiative to date has been that its activities focus on the conduct of workshops that develop skills pertaining to formulation of results statements - without clear linkages to the core operational realities of budgeting, work planning or performance assessment. Seen in isolation, what is learned is the verbose language of grand intentions, often far removed from what is practically possible. Success with ROM is not reached at the end of a workshop or even when everyone knows what it is about; it only works when everyone changes the way they act in their daily business. In recognition of the need to tie ROM more closely to the operational processes, MFPED efforts are underway for closer alignment with the OOB initiative. A new performance appraisal scheme, to enable individuals to be assessed against jointly agreed performance targets that are clear, measurable and related to Government objectives, is being piloted for introduction from the beginning of year 2001. Performance contracts have been introduced at the level of Permanent Secretaries, but not yet at other levels of management. 33 ANNEX 2: PEAP GOALS AND TARGETS a) PEAP goals, targets and monitoring indicators PEAP TARGET MONITORING INDICATORS GOAL"9 1. Creating a framework for economic growth and transformation 1.1 Sustaining 7% GDP growth Real consumption per capita; Real GDP/GNP per capita; economic growth Investment/GDP; Savings/GDP; Real output by sector; 'Green' national accounts; Investor/business confidence 1.2 Macroeconomic 5% inflation Inflation; Real exchange rate misalignment; Effective rates of stability and incentives protection by sector 1.3 Efficient and A higher ratio of tax to GDP Tax/GDP ratio; Share of taxes in expenditure equitable tax system in the medium term 1.4 Debt strategy Debt/GDP; Debt service/exports; Net inflows to public sector on debt and in total 1.5 Poverty focus of Share of directly poverty-reducing service delivery in (a) public expenditure government (b) total public spending; Incidence of benefits of public expenditure by income group, gender region 1.6 Financial sector Real volume and sectoral composition of credit to the private sector reform 1.7.3 Main roads Condition of roads; Length of roads improved 1.8 Commercial sector Popular perception of quality of judiciary; Investor perception of law reform functioning of legal system 1.10 Tertiary education Enrollment increased to Total enrollment; Enrollment by socio-economic group, district; 50.000 by 2003 Completion rates; Post-qualification employment 8000 students at Makerere 30% improvement in completion 90% post-qualification employment rate 2. Good governance and security 2.1 Overall Public awareness about rights sector goals and human rigL-hts 2.2 Security Casualties from military conflict; Number of people displaced by conflict; Living conditions in protected villages 2.4 Proportion of high-level corruption cases prosecuted; Public Transparent, perception of corruption; Incidence of misappropriation of public efficient and funds poverty- focussed public expenditure 2.5 Delivering Proportion of service users paying illegal charges efficient and honest public services 2.6 Law and Crime rates; Size of remand population; Average length of time order spent on remand 2.6.1 Criminal Number of cases completed; Size of case backlog; Average delay Judiciary and in bringing cases to court prosecution 39Excludes PEAPIPRSP sub-goals for which neither targets nor monitoring indicators have been defined. 34 2.6.2 Prisons Living conditions including overcrowding, death rates, illness; Spending per prisoner 2.6.3 Police Case clear-up rate; Public experience of service delivery 2.6.4 Re-offense rates Rehabilitation 2.7 Public Awareness of human rights and legislation; Awareness of health information information; Awareness of entitlements and roles in service delivery 2.8. Access of disabled people to necessary equipment; Economic Empowering activity of disabled people to earn a living; vulnerable Number and living conditions of child-headed households groups 3. Actions which directly increase the ability of the por to raise their incomes 3.1 Poverty 10% headcount poverty rate by 2017 Poverty headcount; Per capita consumption of poorest 20%; outcomes Proportion of households suffering severe income shocks 3.2.1 Rural District roads fully repaired and Km of roads in good repair, Proportion of districts with more than Roads maintained by 2006 50% of roads in poor condition; Average household distance from road in good condition 3.3 Land Implementation of structures in Land Poor households with no access to land Act 3.5 Agricultural incomes; Real food expenditures; Crop yields; Agriculture, Proportion of farmers with access to advisory services; Compliance livestock, with environmental standards forestry, fisheries, food security 3.7 Rural 12% rural electrification by 2010 Use of electricity at home; Access to businesses using electricity energy 3.9 850 polytechnics and 100.000 trained Enrolments and completion; Employment of graduates Employment by 2003 and labour, vocational education 3.10 Micro- Access of entrepreneurs to advisory services and small- scale enterprises 3.11 Proportion of households using microcredit; Proportion of Microfinance households with bank a/c; Monetization of economy services 4. Quality of life 4.1 Overall Life expectancy; Child and infant mortality; Maternal mortality sectoral indicators 4.2 Health Immunization coverage; Proportion of HC's with staffing norms; care services Proportion without stockouts; Utilization; Perception of service delivery; Prevalence of HIV and malaria 4.4 AIDS 25% drop in prevalence HIV prevalence 4.5 Water and 10% maximum feasible access to safe Access to improved water source; Forms of sanitation used by sanitation water by 2015 households; Sanitary facilities in schools and markets; Quality of water sources 4.6 Primary Net enrollment approaching 100% by Net and gross primary enrolment; Pupil-textbook and teacher and secondary 2003 ratios; Public perception of quality; Estimates of quality from education Pupil/teacher ration 41 by 2009 NAPE Teacher/classroom ratio at 1.6 in 2003/4 4.7 Adult 85% literacy after 5-year programme Literacy rates by gender literacy 4.9 Housing Proportion thatched 35 b) PRSP Goals and, Targets Sector 1998/99 1999/00 2000/01 2001/02 2002/03 Education: Avg. pupil-teacher ratio 68 58 48 45 45 Avg. pupil-classroom ratio 131 118 99 88 79 Avg. pupil-book ratio 6 6 4 3 3 Health: Immunisation rate (DPT3) 35% 45% 60% 70% 80% % of health centers with trained staff 33% 55% 61% 63% 65% Water: Boreholes drilled 1060 1100 1280 1500 Springs protected 900 900 800 700 Shallow wells protected 1000 1100 1420 1700 36 ANNEX 3: EXTERNAL ASSISTANCE - PROJECTED AID DISBURSEMENTS BY TOP 20 DONORS, 1999/00-2001/02 (Total, US$m) Donor 1999100-2001/02, US$m IDA 328.0 Denmark 162.3 European Union 100.6 ADF + ADB 59.2 Germany 49.8 USAID 34.0 UNICEF 27.2 Italy 24.0 Japan 23.4 GEF 22.7 United Kingdom 17.7 UNDP 16.9 Egypt 13.9 Austria 11.5 Sweden 11.1 IFAD 10.9 Netherlands 10.9 WFP 10.8 Norway 8.5 China 7.3 Total for top 20 donors 950.7 Total for 26 other donors 44.8 Overall projection for 1999/00- 995.5 2001/02 Source: Public Investment Plan, 1999/00-2001/02, Annex 2, MFPED August 1999. 37 ANNEX 4: NOTE ON METHODOLOGY AND PEOPLE MET The OED "Diagnostic Guide and Action Framework for Evaluation Capacity Development" has served as an analytical reference source for the work; providing a conceptual framework, detailed checklists of issues relating to incentives, roles and responsibilities, plus a menu of options to strengthen demand and supply of M&E. The collection of data for this report was undertaken through a series of interviews and through review of documents during a visit to the World Bank in Washington in March 2000 and two missions to Uganda in April and October 2000, respectively. During the latter mission a one-day M&E seminar was held in conjunction with MFPED. During the two missions to Uganda we also participated in meetings of: * PERC/PRSC Task Force * Education Sector Working Group, M&E subcommittee * M&E harmonization committee * Country financial accountability seminar * Monthly donor meeting * Civil Society seminar on "Assessing Government Performance" * Pay reform workshop People met during Uganda country visits, 2-17 April and 4-20 October 2000 Ainebyona P. Economist MFPED Delius Asiimwe Research Fellow, Makerere Institute of Social Research Benedict Baraza District Salaries Officer, Mubende Robert Barungi Deputy Headteacher, Kasambiya School Lawrence Bategeka Economist, UNDP Moses Bekabye Director, Parliamentary Budget Office Bella Bird Social Development Advisor, DFID Bisamala EAR, Office of the Prime Minister Albert K. Byagumisha Assistant Commissioner Education Planning, MES John 1.K. Byaruhanga Economist, MFPED Candirn Florence PAS, Inspectorate General of Government Noah K. Davis Country Director, WFP Kari Egge Deputy Representative, UNICEF Joseph Ellor M&E Officer, EPD, MES Grace Ekudu Programme Planning Officer, UNICEF Okello Francis AFO, Moroto District Dr. Kim Forss Evaluation Consultant, Sweden R. Greenhill SE/BPED, MFPED Guzu D. NCDIP, NUDIPU Morten Heide First Secretary, Royal Norwegian Embassy David Igulu M&E Officer, UNICEF E.C. Jjuuko Reporter, Uganda Confidential Alain Joaris Economic Advisor, EC Delegation Mohammed Kabaale Economist, MFPED Kabanu Kabonanukye Researcher, MISR Rose Kafeero Commissioner, Public Service Inspection, MPS James Kahoza Auditor General 38 Brenda Kafuko Malinga Deputy Director/MSS, Ministry of Ethics & Intergrity Margaret Kakande Poverty Analyst, Poverty Monitoring Unit, MFPED Hanzah Kakooza Reporter, Radio Star James K. Kalebo Director, Uganda Management Institute Julius Kapwepwe PA, UWONET Harald Karlsnes Counsellor, Norwegian Embassy Norah Katumba Senior Economist, MFPED Sylvia Keera M & E Advisor,Decentralisation Secretariat, MLG Dr. J. Kiyaga-Nsubuga Deputy Director, Uganda Management Institute Britt Hilde Kjoelaas First Secretary, Norwegian Embassy Florence Kuteesa Commissioner, Budget Policy and Evaluation, MFPED Paul Kyama Programme Officer, MLG John Kyewalabye Clinical Officer, Kasambya Health Clinic Eric Lakidi, Reporter, New Vision Philippe Loop Economic Advisor, EC Delegation Dr. Lwasampijjaf District Health Officer, Mubende District Magona J.M. AC/SS, MFPED Sirage Makumbi R.P, East African Philip Mangeni C/TI, MFPED Speciosa Mankabirwa Registered Midwife, Kasambya Health Clinic Phillip W. Marugeni Commissioner, MFPED A. Mayanja Director, Audit Dept. Laban Mbulamuko S. Economist MFPED Lars Moeller PMDU, MFPED Dr. David Muduuli Principal Private Secretary to the Vice President Mary Muduli Director, Budget Dept, MFPED Jane Musika Ag. Chief of Div, Decentralization Secretariat, MOLG Andrew Musoke District Planning Officer, Mubende District Dr. N.B. Musisi Director, MISR Dr. Ngila Mwase Economic Advisor, UNDP Aggrey Mwesigwa Economist, President's Office Solomon Mutemba Researcher, MUBS Muwuluke Lucy Principal Economist, MFPED Suleiman Namara Principal Economist, Office of the Prime Minister H.N. Nayer Fiscal Federalism Adviser, MFPED William Ndoleire Senior Economist, MFPED Micheal Nsereko Economist, MFPED Asaph Nuwagira M & E Advisor, MAAIF Joe K. Nuwamanya Commissioner, Coordination & Monitoring, Office of the Prime Minister Dr. Marios Obwona Senior Research Fellow, EPRC, Makerere University Patrick Ocailap Commissioner, Aid Liaison Department, MFPED Dr. John Odiki Senior Research Fellow, EPRC, Makerere University M.H.O. Ogwang Asst. Commissioner, Budget Policy & Evaluation, MFPED Cyriona Okello Economist, MoWHC Francis Okori PI, MLG Mathew Okot S/Finance, Gulu District Robert Okudi Principal Economist, MFPED Martin Onyach-Olaa Coordinator, Programme Management Unit, MOLG Jimmy Orombit Radio Uganda George A. Otim A/Commissioner, MAAIF Steve Rice Economist, MFPED J. Ruhweza FO, MFPED John Rudman Advisor to Director Budget, MFPED Yosuke Shimamura Social Sector Economist, MFPED 39 Michel Sidibe Representative, UNICEF B.O. Simonsen CS/Advisor, UBOS Fredrick Ssemogerere District Service Commission Secretary, Mubende District George Sserungogi PF, MFPED Moses Ssonko Finance Officer, MFPED Daouda Toure Resident Representative, UNDP Prof Sam Tulva-Muhika Chairman, International Development Consultants F. Tumuheirwe C/MEP, MFPED Mr. E. Tumusiime-Mutebile Principal Secretary, MFPED Stephen Tumutegyereize Information Systems Officer, MOLG Gerald Twijukye Researcher, Uganda Debt Network Francis X.K. Wagaba Chief, Planning Div., Decentralization Secretariat, MOLG Dr. Brian Wall Chief Project Analyst, Evaluation & Audit, Ireland Aid Edward Walugembe Principal Statistician, MES Mr. Michael Wamibu Principal Economist, MFPED S. Wenkere-Kisembu Director, Decentralization Secretariat, MOLG Alan Whitworth Policy Advisor, MFPED Tim Williams Governance Advisor, DFID George Yigga Special Needs Teacher, Kasambiya School Kharim Ziwa Power FM 40 Other Papers in This Series #1: Keith Mackay. Lessons from National Experience. #2: Stephen Brushett. Zimbabwe: Issues and Opportunities. #3: Alain Barberie. Indonesia's National Evaluation System. #4: Keith Mackay. The Development of Australia's Evaluation System. #5: R. Pablo Guerrero 0. Comparative Insights from Colombia, China and Indonesia. #6: Keith Mackay. Evaluation Capacity Development: A Diagnostic Guide and Action Framework. #7: Mark Schacter. Sub-Saharan Affica: Lessons from Experience in Supporting Sound Governance. These and other papers are available from OED's website for evaluation capacity development: http://www.worldbantorg/html/oed/evaluation/html/monitoringand_evaluation_capa.html 41