Implementation: Delivering Results to Transform Caribbean Society

IMPLEMENTATION:Delivering Results to Transform

Caribbean Society

Dr. Justin Ram

Hilton Barbados Resort

Bridgetown, Barbados

September 18, 2017

AGENDA

01 Regional Challenges

02 Implementation Deficiency

03 Implementation: Utilising Delivery Units

04 Designing a Delivery Unit for the Caribbean

05 Next Steps and CDB Support

Pulse

Of The

Caribbean

Macroeconomic Challenges

Low growth- average 1.1 % over a decade

High debt- regional average 77% of GDP

Low commodity prices and declining reserves

Low Productivity and Competitiveness

At 67 out of 190, Jamaica is the highest Caribbean economy in the WB Ease of Doing

Business rankings

Large infrastructure gaps

Weak governance

Inefficient and costly transport links and high energy costs

Environmental Threats

High annual natural disaster costs – on average ~2% of GDP

Low insurance payouts- parametric insurance do not fully cover losses

Need for more robust building codes

Need for climate change adaptation mechanisms

Poor Human Development Outcomes

High poverty (43.7%) and youth unemployment (18-47%)

Poor education outcomes, skills mismatch and brain drain

High crime and citizen insecurity

ALTERNATIVE ECONOMIC

TRANSFORMATION

STRATEGIES

TRADITIONAL PATHS TO

ECONOMIC DEVELOPMENT

Alternative

Strategies: Inclusive Growth,

Low Debt And

Prudent Fiscal

Management

Japan

1% | 239%

Figures: Real GDP Growth Rate | Debt/GDP

U.K.

1.8% | 89%

Italy

0.9% | 133%

U.S.

1.6% | 107%

Singapore

2% | 112%

Australia

2.5%| 41%

Denmark

1.1% | 40%

Malaysia

4.2% | 56%

New Zealand

4.0% | 30%

Sweden

3.3%| 42%

Switzerland

1.3% | 45%

Greece

0% | 181%

Sources: Idris Jala, WBG, Country Reports

AGENDA






Implementation

Capacity Stunts

Regional

Delivery

Delayed or ineffective project

implementation

Shared Regional and International Challenges

Weak Implementation Capacity

Insufficient training

Obsolete personnel management systems

Ineffective results accountability systems

Weak decision enforcement culture

Scarce financial resources

Elaborate and promising development

plans

Vision

Statements

BarbadosA fully developed society that is

prosperous, socially just and

globally competitive.

GrenadaA caring society that promotes

human dignity and celebrates

sustainable economic and social

progress for all.

St. Vincent & the

GrenadinesTo improve the quality of life for all

Vincentians.

BelizeA country of peace and tranquility,

where citizens live in harmony with

the natural environment and enjoy a

high quality of life.

JamaicaThe place of choice to live, work,

raise families, and do business.

The BahamasA Nation Moving Forward, Upward,

Onward Together.

Trinidad & TobagoWe are a united, resilient, productive, innovative, and prosperous nation with a

disciplined, caring, fun-loving society comprising healthy, happy and well-

educated people and built on the enduring attributes of self-reliance, respect,

tolerance, equity, inclusion and integrity…

BMCs PSIP

Performance

2012-2016

Country Public Investment

Implementation Rate

Capital Expenditure

(% of GDP)

ECCU 35% - 75% 5.0

JAMAICA 86% 2.0

TRINIDAD 61% 4.6

GUYANA 20% 7.3

BARBADOS 33% 2.3

Source: BMCs Budget reports, IMF Article IV and Staff Calculation,2017

Observations

from

Development

Partners

Delays in loan effectiveness

Large undistributed balances for

projects under implementation

Lengthy project implementation

periods

CDB

Portfolio

Performance

2012-2016104 114 115 114 124 119 144

106 96 91 97 84 129

76 71 88

-

100

200

300

400

500

600

700

-

100

200

300

400

500

600

700

$’million

19%22%

21% 21%25%

28%22%

20%17% 17% 17% 15%

19%

12% 11% 12%Actual

Disbursement

Undisbursed

Balance

TRENDS IN DISBURSEMENT: 2001-2016

(excluding PBLs)

AGENDA






Essential

Elements

for

Success

New Ways of

Working

Transformational

Leadership

Source: PEMANDU, 2017

Performance

Management

and Delivery

Units

Delivery units are small teams that help leaders to stay focused on the delivery of key policy priorities

Main functions:

Track Progress

Investigate and

Intervene to Solve

Problems

Identifying

the Purpose

What are you trying to achieve?01

How are you going to achieve it?02

How do you measure success?03

How will you change course if you are not

on target?04

How can the DU help?05

OBJECTIVES

PROGRESS

Adapted from: Barber, 2015

Delivery

Units

Around the

World

5 Countries

Source: Gold, 2017

Key

Elements

for Success

Strong, highly visible leadership

Clear Mandate

LABS to develop implementation

plans and ownership

Cross government and stakeholder ownership and

partnership

90% Relentless Implementation

Collect real time data; Establish

routines to review effectiveness;

Measure success using data

Source: Gold, 2017

AGENDA






Setting up a

DU:

Best in Class

Performance

Management

Set direction and context

Establish clear accountabilities and metrics

Create realistic budgets, plans, and targets

Track performance effectively

Hold robust performance dialogue

Ensure actions, rewards, and consequences

Source: Barber et al., 2011

Mandate and

Responsibilities

Delivery Unit

Establishment

Inside Government(Government Unit)

Operationalise the

implementation of

Government

priorities

Outside Government(Special Purpose Vehicle)

Provide services to

DU (financial,

procurement,

recruitment, etc.)

Source: PEMANDU, 2017

Illustrative

Team

Structures

Lead Lead Lead Lead Lead

Delivery

Team

Delivery

Team

Delivery

Team

Delivery

TeamDelivery

Team

PRIORITY AREAS

Area 1 Area 2 Area 3 Area 4 Area 5

Fla

t S

tructu

re

Possible team members: Directors, Managers, Analysts,

Statisticians

Source: Adapted from PEMANDU, 2017

AGENDA






Next steps

Country Diagnostics

High Level Workshops

Institutional Design of DU

Establish/ Strengthen DU

Implementation Support

What has

CDB done

and is

doing?

Caribbean Leadership and Transformation

Forum (CLTF)– September 18-19th, 2017

Today

Upcoming

Developing MOOC with partners UWI, SUNY,

and PEMANDU on Leading Transformation to

Achieve the SDGs.

Presentation at the 38th CARICOM Heads of

Government meeting – July 4-6, 2017

July

Publication to develop CDB strategies for

engagement with BMCs on Implementation

and Delivery Units (DU)

How will

CDB

support?Conduct diagnostic assessments

1

Technical and Financial

AssistanceTA grants | TA loans | Policy-based loans | Contingent grants, etc.

Developing DU Support Facility

Design and establish country-specific DUs

2

Support the DU and the implementation of key

projects/ priorities

3

Let us shift

focus towards

IMPLEMENTATION

Our goals can only be

reached through a

vehicle of a plan, in

which we must

fervently believe, and

upon which we must

vigorously act. There

is no other route to

success.

Pablo Picasso