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Dr. Michael Lindfield Lead Urban Development Specialist Asian Development Bank. Prioritization of MDG targets within the resource envelope of sub-national governments: A model from the urban sector. “Results-Based Public Sector Management in Support of the MDGs” - PowerPoint PPT Presentation
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PRIORITIZATION OF MDG TARGETS WITHIN THE RESOURCE ENVELOPE OF SUB-NATIONAL GOVERNMENTS:
A MODEL FROM THE URBAN SECTOR
“Results-Based Public Sector Management in Support of the MDGs”
Flagship Conference of the Asia-Pacific Community of Practice
on Managing for Development Results (APCoP), UNDP, and UNESCAP
13-15 June 2012, Bangkok, Thailand
Session 8: Parallel Sessions: Implementation of the MDGs at the Local Level
Dr. Michael LindfieldLead Urban Development Specialist
Asian Development Bank
OUTLINE OF PRESENTATIONThe session will discuss variables in a matrix of top-down planning/budgeting and bottom-up
priorities/agenda setting that have an impact on the implementation of urban projects in the context of decentralization.
Context of Asian Cities Decentralization and Devolution – Fiscal and Administrative Tiers of Governance Link to Finance Top down Planning-Budgeting = High reliance of local governments in Asia on
budget allocations from national governments. Bottom-up Prioritization
Political Priorities = champion projects / High profile projects City-wide needs MDG targets (for urban poor)
Planning-Budgeting Implementation = weak linkages Tool for Project Prioritization
. Cities on average provide 80% of the economic base — but large disparities have emerged as poverty has
urbanized – over 200 million people live in poverty in Asia’s cities
and many more are vulnerable to economic and environmental shocks.
MDG 7 targets improving the lives of 200 million slum dwellers.
Addressing the needs of these poor requires:> New forms of engagement> New forms of finance and
> The flexibility to adapt to the circumstances of each community
MILLENNIUM DEVELOPMENT GOALSGLOBAL TARGETS
NATIONA
L
•National MDG Reports and MDG plans and
•Other strategies and commitments; Political orientation
•National Budgets; level of administrative and fiscal decentralization;
SUB-NATIONA
L
•Sub-National MDG plans and other strategies and commitments
•Political priorities
•Linking to Finance: Weak in some countries (Philippines); strong in others (India, China)
LOCAL
•Local MDG assessments and MDG-linked development plans
•Political priorities; championing projects
•Reliance on Inter-government fiscal transfers; Availability of finance
Development priorities and
actions
Monitoring and Reporting
PRIORITIZATION OF MDG TARGETS
Are the MDG indicators and targets prioritized efficiently and effectively in resource allocations of the Local Government Budget?
Do the local governments in Asia have the capacity and tools to assess and prioritize for planning results and set priorities?
What decision making tools can help them in choosing urban projects in face of conflicting political priorities?
LOCAL REVENUES UNDER FISCAL DECENTRALIZATION
Tiers of Governance Link to Finance Top down Planning-Budgeting = High reliance of local
governments in Asia on budget allocations from national governments.
Financing options
LINKING GOVERNANCE AND CAPACITY
Bottom-up Prioritization Political Priorities = champion projects / High profile projects City-wide needs MDG targets (for urban poor)
Planning-Budgeting Implementation = weak linkages Capacity of local government for programming and
prioritization of urban projects
Investments for Urban Social Development
STEP-UP in Philippines
STEP-UP is important for Government’s response to urban poverty. Implemented by the Philippine Business for Social Progress, an NGO supported by the CSR contributions, the project had 3 components:
•strategic partnership building, focused on coalescing three groups deemed critical to urban poverty reduction: business; local government and the homeowners associations
•housing improvement; microenterprise support; upgrading of community infrastructure (roads, drainage, water supply, multipurpose centers, and access to health/ sanitation)
•risk reduction and management issues relating to natural and artificial disasters.
Strategic Private Sector Partnerships for Urban Poverty Reduction (STEP-UP) in Metro Manila, Philippines
MDG/PSM MATRIXMDG/PSM PLANNING BUDGETING IMPLEMENTATION MONITORING EVALUATION
GLOBAL Defined indicatorsAppropriate targets
Cities AllianceADBWorld BankBilaterals
UN Habitat
NATIONAL Internal Revenue Allotment (IRA)Community Mortgage Program
Housing and Urban Development Coordinating Council (HUDCC)
HUDCC HUDCC?
SUB-NATIONAL
Regional Development Councils(RDCs)
RDCs RDCs
LOCAL Local Shelter Plans
% of IRA Other finance sources
Local Government Urban Poor OfficesData collection
TARGET MATRIX FOR PSM TARGET
7…Planning Budgeting Implementation
Policies and Regulatory Framework> Priorities
Governance Finance Management:Institutional Structures/ Mechanisms
National
Sub-National
Local
Which Levels
finance what
priorities
Legislation reporting and
monitoring systems Incentive
systemsResources for each priority
Coordination links
by level by sectorResource
managementby level
by sector
CIIPP TOOL-KIT Many city governments in Asia want to access
infrastructure financing but are not sufficiently equipped to undertake the task of programming and prioritizing strategic urban investments.
The City Infrastructure Investment Programming and Prioritization toolkit (CIIPP) has been developed by ADB-CDIA to help fill the gap.
FILLING THE GAP
TARGET MATRIX FOR PSM
TARGET7…
Planning Budgeting Implementation
Policies and Regulatory Framework> Priorities
Governance Finance Management:Institutional Structures/ Mechanisms
National
Sub-National
Local
Which Levels
finance what
priorities
Legislation reporting
and monitoring
systemsIncentive
systemsResources
for each priority
Coordination links
by level by sectorResource
managementby level
by sector
IN SUMMARY: PRINCIPLES OF EFFECTIVE FISCAL DECENTRALIZATION
Policy: Assessment of most effective tiers for implementation across investment sectors.
Regulatory Framework: Provides mandate for sectoral investment at each tier.
Governance: Legislation linking mandates to finance – intergovernmental fiscal relations – and mandating coordination across tiers and agencies – inter-linkage of finance, reporting and monitoring.
Finance – performance-based allocation of incentive funds.
Management systems: mirror governance – linking coordination, monitoring, finance across implementing agencies (sectors).
THANK YOU!