97401
How Does Knowledge on Public Expenditures
Integrate with the Design of Development
Policy Operations?
IEG Learning product
May 27, 2015
This document has a restricted distribution and may be used by recipients only in the
performance of their official duties. Its contents may not otherwise be disclosed without
authorization.
Contents
ABBREVIATIONS ................................................................................................................................. III
ACKNOWLEDGMENTS ......................................................................................................................... V
OVERVIEW........................................................................................................................................... VII
1. INTRODUCTION........................................................................................................................ 1
2. THE APPROACH ...................................................................................................................... 3
3. KNOWLEDGE ON PUBLIC EXPENDITURE AND DPOS: A BASIC PORTFOLIO VIEW ........ 5
Trends in the volumes, numbers, IBRD/IDA, and geography of DPOs ..................................................................... 5
Trends in public expenditure knowledge products .................................................................................................... 8
How does knowledge of public expenditure inform DPOs? .................................................................................... 11
4. SELECT FINDINGS FROM CASE STUDIES .......................................................................... 17
Examples of successful contribution of public expenditure work in the design of DPOs ........................................ 19
Examples of missed opportunities .......................................................................................................................... 23
5. CONCLUSIONS....................................................................................................................... 27
REFERENCES...................................................................................................................................... 29
APPENDIX A. COUNTRIES IN WHICH DPOS WERE PRECEDED BY A PER .................................. 31
APPENDIX B. LIST OF PUBLIC EXPENDITURE KNOWLEDGE PRODUCTS .................................. 37
APPENDIX C. THE ROLE AND INFLUENCE OF PUBLIC EXPENDITURE REVIEWS ON DPO
DESIGN (TABLE 2 OF 2) ..................................................................................................................... 51
APPENDIX D. DPOS AND PUBLIC EXPENDITURE REVIEWS AT THE SUBNATIONAL LEVEL .... 57
Boxes
Box 2.1. A Systematic Representation of the Focus (top row) and Analytical Approaches ..................... 3
i
CONTENTS
Tables
Table 3-1 Top ten countries by commitments and number of operations (closed operations 2004-2013)
............................................................................................................................................................... 7
Table 3-2. Top ten countries with PERs, 2000-14 .................................................................................. 9
Table 3-3. Number and share of DPOs preceded by PER ....................................................................12
Table 3-4 Similarity index of DPOs and PER, using theme codes .........................................................15
Table 4-1 Integration of PERs with DPOs: Select findings from the case studies (Also see detailed table
in Annex 3). ...........................................................................................................................................17
Figures
Figure 3-1 Commitments and numbers of DPOs by lending instrument and region (closed DPOs, 2004-
2013) ...................................................................................................................................................... 6
Figure 3-2 Trends in IBRD and IDA DPOs and average commitments (closed DPOs 2004-2013) ........ 7
Figure 3-3 Distribution and trend of DPOs managed by Networks and Sector Boards (closed operations
2004-2013) ............................................................................................................................................. 8
Figure 3-4 Trend and regional distribution of public expenditure knowledge products (2000-2014) ......10
Figure 3-5 Percentage of PERs with specific themes (2000-2014); (n=191) .........................................11
Figure 3-6 Numbers and shares of DPOs with PERs within four years, by world region .......................13
Figure 3-7 Trends in the numbers and shares of DPOs with PERs .......................................................13
Figure 3-8 Comparison of the trend in performance of DPOs with/without a PER .................................14
Figure 3-9 Number of MTEF related prior actions (operations closed 2004-2013) ................................16
Evaluation Managers
Caroline Heider Director-General, Evaluation
Nick York Acting Director, Independent Evaluation Group, Public Sector
Mark Sundberg Manager, Independent Evaluation Group, Public Sector
Zeljko Bogetic Task Manager
ii
Abbreviations
AFR Africa
CEMs Country Economic Memoranda
CPIA Country Policy and Institutional Assessment
DPL Development Policy Loan
DPOs Development Policy Operations
ECA Europe and Central Asia
ESW Economic and Sector Work
IBRD International Bank for Reconstruction and Development
ICR Implementation Completion and Results Report
IDA International Development Agency
IDPL Infrastructure Development Policy Loan
IEG Independent Evaluation Group
MDG Millennium Development Goal
MENA Middle East and North Africa
MOF Ministry of Finance
MTEF Medium-Term Expenditure Framework
OPCS Operations Policy and Country Services
PEFA Public Expenditure and Financial Assessment
PEMSP Public Expenditure Management Strengthening Programme
PER Public Expenditure Review
PFM Public Financial Management
PPAR Project Performance Assessment Report
PPP Public Private Partnerships
PRSC Poverty Reduction Support Credit
RETFs Recipient Executed Trust Funds
SAR South Asia Region
SPF State and Peace Building Fund
iii
Acknowledgments
This IEG Learning Product was prepared by under the general direction and
guidance of Mark Sundberg, Manager, Independent Evaluation Group (IEG).
This paper is part of a series of Learning Products (LP) that primarily synthesize
existing evaluative material with the aim of gaining new insight into the effectiveness
and design of development policies and interventions supported by the Bank from an
operational perspective. In this series the focus of the LP is on factors that influence
design, policy implementation, and performance of Development Policy Operations
(DPOs). This particular report aims to assess the extent of integration of knowledge on
public expenditures with the design of DPOs using a combination of portfolio review,
case studies, and descriptive statistical analysis to derive insights, lessons, and good
practices that could inform the future design of DPOs.
The database, analysis, and draft report were prepared by an IEG team consisting of
Zeljko Bogetic (team leader), Javier Bronfman, Malathi Jayawickrama, Marko
Klasnja, Aghassi Mkrtchyan, Moritz Piatti, Marcelo Selowsky, and Jesse Torrence.
The team leader would like to express appreciation to Mark Sundberg for
substantive guidance and advice in all stages of this study. Peer reviewer comments
from Ismail Arslan, Pedro L. Rodriguez, Shahrokh Fardoust, as well as comments
and discussions with Linda van Gelder, Ed Mount field, Manuela Francisco, Peter
Moll, and Jasmin Choker are gratefully acknowledged.
Much appreciated are important individual contributions of team members who
provided building blocks of the complete analysis presented in the report. They are
as follows: Moritz Piatti (management, improvements and revisions of the
Development Policy Operation (DPO) and Public Expenditure Review (PER)
databases based on the early database developed by Jesse Torrence); detailed
portfolio analyses of both DPOs and PERs; the author of one case study, and
working closely with the team leader and Marko Klasnja on statistical analysis);
Malathi Jayawickrama (author of several case studies who also prepared draft
synthesis of case studies related to public expenditures and DPOs analyzed in this
paper), Marcelo Selowsky (author of several case studies), Javier Bronfman (author
of several case studies, who also synthesized case studies for the accompanying
paper on macro-fiscal framework), Aghassi Mkrtchyan (author of several case
studies), Marko Klasnja (who developed the similarity index between PERs and
DPOs and also supported data work and parts of the portfolio analysis), and Jesse
Torrence (who developed an early version of database of DPOs and PERs). Team
assistance by Aline Dukuze and Yezena Zemene Yimer is gratefully acknowledged.
v
Overview
Integration of knowledge with lending is an enduring theme in World Bank
strategies at the corporate and country levels. The Bank lending instruments could
be more relevant and produce better results if they incorporate key analytical,
country-level knowledge. The goal of this learning product is to contribute modestly
to the understanding of how this knowledge-lending integration works in practice
and raise questions for further research.1
It examines the extent to which an important type of Bank knowledge—on public
expenditures—informs the design of Development Policy Operations (DPOs). It is
hoped that this preliminary analysis can provide the IEG and the Bank with useful
lessons as it evolves toward an integrated “solutions Bank” and the twin goals. The
analysis is not just retrospective. It also seeks to inform the ongoing and future
efforts toward integrating knowledge and lending, Systemic Country Diagnostics
(SCD), and the design of DPOs. It also aims to inform the OPCS 2015 DPO
Retrospective.
Public expenditure knowledge for the purpose of this learning product, is identified
as the body of Bank knowledge products specifically referred to in their titles as
Public Expenditure Review, whether they are multi-sector or sector public
expenditure reviews, but they also include other economic and sector work (ESW)
which directly or mostly deal with public expenditure issues. This broad definition
should capture much of the public expenditure-related analytical work at the Bank.
Arguably, efficiency and allocation issues important in the design of DPOs and
reforms they support can only be addressed by such integrative, not partial or silo-
type knowledge of specific subsector expenditures.
1 This paper is part of a series of Learning Products (LP) that primarily synthesize existing evaluative
material with the aim of gaining new insight into the effectiveness and design of development
policies and interventions supported by the Bank from an operational perspective. In this series the
focus of the LP is on factors that influence design, policy implementation, and performance of
Development Policy Operations (DPOs). This particular report aims to assess the extent of integration
of knowledge on public expenditures with the design of DPOs using a combination of portfolio
review, case studies, and descriptive statistical analysis) to derive insights, lessons, and good
practices that could inform the future design of DPOs
vii
OVERVIEW
Six broad messages emerge from this review.
First, the Bank has been producing a considerable volume of knowledge on public
expenditure, which increased in recent years, and that knowledge was available to
inform the majority of DPOs in the majority of countries with DPO operations. The
analysis of the 390 DPOs and 404 public expenditure knowledge products (PERs,
broadly defined), which were the subject of this review, suggests that there appears
to be a solid degree of timeliness, availability, and thematic overlap as well as
integration between PER knowledge and DPOs. There is also evidence of continuity
of policy dialogue from PERs to DPOs in many cases. This is a reassuring
conclusion. It implies that the country-based Bank model which integrates
knowledge and lending is working well, in the case of PER knowledge and DPOs.
There are good practices worth highlighting as well as weaknesses that offer
opportunity for reflection and lessons for the future.
Second, public expenditure knowledge informs DPOs largely in the areas of public
sector governance, followed by social development, and human development.
Macroeconomic and tax policies, in particular, tend to show comparatively smaller
overlaps, but this may be because some of the macroeconomic policy agenda is
taken up more directly in the macro-fiscal framework as elaborated in the
accompanying report. There is a tentative question whether tax policy is an area in
which the World Bank has “left the field,” perhaps to the national authorities and
the International Monetary Fund (IMF), and whether that should be revisited.
Third, deeper dives into case studies of recent DPOs show some good practices.
These good practice examples of integration of PER knowledge and DPOs tend to
show a continuity of policy dialogue, from PER to DPO, with DPO design directly
and explicitly using PER policy recommendations in its prior actions. Such DPOs
also tend to have stronger elements of DPO design such as macro-fiscal framework,
as shown in the accompanying paper on macro-fiscal frameworks. And they often
have better IEG ratings.
Fourth, more broadly, good practice DPOs in terms of the integration of PER and
DPO knowledge tend to be situated in an environment of long-term Bank
engagement and continuous, high-quality policy dialogue (knowledge and lending)
based on a relationship of trust. Sound PERs with candid recommendations hitting
clearly on important issues stand a better chance of informing DPO and policy
reform. Medium-Term Expenditure Frameworks (MTEF), budgeting, Public
Financial Management (PFM) issues tend to be some of the common areas in which
PERs substantially informed the DPOs, but the policy areas cover the entire
spectrum of governance and other thematic areas.
viii
OVERVIEW
Fifth, examples of missed opportunities in integrating PER knowledge with DPOs
tend to reflect breaks in institutional memory on the Bank and the government, as
well as breaks in the policy dialogue which can come about for many reasons
(passage of time between the PER and the DPO, changes in staff on the Bank and the
client side, changes in government and political priorities, etc.). One lesson here is
that the Bank should pay greater attention to DPO-led reengagements with
countries and new DPOs after a longer period of no core diagnostics on public
expenditures or prior dialogue and DPOs, and ensure that all relevant Bank
knowledge fully informs those DPOs.
Sixth, there may be a potential knowledge gap and an opportunity for the Bank to
intensify knowledge engagement on public expenditures at subnational levels, both
as part of the knowledge and policy dialogue and as a contribution to future DPO
development.
Finally, in follow up to this learning product, which is focused on the limited
questions around the integration of knowledge and DPOs, there is a need for a
systematic analysis of the quality of the Bank’s AAA knowledge products. An
evaluation of the public expenditure reviews, in particular, would potentially shed
further light on how the Bank can continue improving the quality, relevance, and
integration of its knowledge products.
ix
1. Introduction
1.1 Integration of knowledge with lending is an enduring theme in World Bank
strategies at the corporate and country levels. It rests on the widely shared proposition
that Bank lending instruments could be more relevant and produce better results if they
incorporate key analytical, country level knowledge. To be successful, development
interventions must be informed by evidence, and evidence comes from knowledge. This
is the idea behind Bank as a “solutions bank,” integrating financial instruments and
knowledge products into “development solutions” that deliver results. A recent
Independent Evaluation Group (IEG) evaluation suggests that the Bank’s broad
economic and sector work and technical assistance strongly informs Bank lending
strategies (IEG 2008).
1.2 The goal of this learning product is to help inform the understanding of how this
integration works in practice and to raise questions for further research. Specifically, it
seeks to examine the extent to which one, albeit important type of Bank knowledge--on
public expenditures--informs the design of DPOs, a key lending instrument. This
question is relevant primarily for the quality of design of DPOs and their performance.
But it also has broader implications for how well the Bank combines knowledge and
lending to influence policy, poverty, and distributional outcomes. Finally, it should be
noted that this learning product does not evaluate the quality of the Bank’s knowledge
on public expenditure per se; it is concerned, instead, with the integration of that
knowledge into the design of DPOs.2
1.3 This is not the first IEG learning product focused specifically on the role of the
Bank knowledge in development lending.3 It is also limited in scope in that it takes a
fresh look at the interactions between one class of the Bank’s core diagnostic reports—
2 Only in the limited number of in-depth case studies, the team has looked at aspects of relevant PER quality.
3 Martin Ravallion has pointed out in recent paper (“Knowledgeable Bankers? The Demand for Research in World
Bank Operations,” Policy Research Working Paper 5892, World Bank, December 2011
https://openknowledge.worldbank.org/bitstream/handle/10986/3674/WPS5892.pdf?sequence=1) that the knowledge
of operational staff within donor agencies is likely to be important for the quality of development aid. He provides
evidence that the stock of prior analytic work by the Bank on a recipient country is a strong predictor of the
subsequent quality of its lending operations to that country (Deininger, Squire and Basu, 1998; Wane, 2004) and that
the quality of prior analytic work matters to the quality of its projects (Fardoust and Flanagan, 2011). Other related
studies analyze aspects of Bank core diagnostic knowledge. For example, Deolalikar (2008) reviews 60 PERs in
2000-07 and identifies common problems and solutions for greater impact and improved effectiveness and equity of
public expenditure. An IEG Project Performance Assessment Report (2010) analyzes growth diagnostics in four
African countries. A 2008 IEG evaluation of economic and sector work and technical assistance (“knowledge”) in
the 2000-06 period finds that the Bank’s knowledge informs the Bank’s lending strategies and the clients even more
than through the direct impact of knowledge on the clients. This suggests important synergies in Bank services
between knowledge and lending.
1
1.INTRODUCTION
the public expenditure review (PER), broadly defined—and a key lending instrument,
and it is mainly focused on understanding the scope and sectoral and thematic nature
of their integration. It is hoped that even preliminary answers to these questions can
provide IEG and the Bank with useful lessons as the Bank evolves toward an integrated
“solutions bank.”
1.4 PERs, for the purpose of this learning product, are identified as Bank knowledge
products with a specific reference in their titles as Public Expenditure Review, whether
they are multi-sector or single sector public expenditure reviews. They also include
other analytical documents which deal with public expenditure issues, be they public
finance reviews, studies of specific expenditure and debt issues, and even Country
Economic Memoranda (CEMs) with a special focus on public expenditures. This broad
definition should capture much (though not all) of the public expenditure-related
analytical work at the Bank. Arguably, efficiency and allocation issues important in the
design of DPOs and the reforms they support can only be addressed by such
integrative, not partial or silo-type knowledge of specific subsector expenditures (e.g.,
tertiary education expenditure review).
2
2. The approach
2.1 The preliminary analysis in this paper combines several approaches (Box2.1).
Box 2.1. A Systematic Representation of the Focus (top row) and Analytical Approaches
Source: IEG.
2.2 The IEG team analyzed all DPO that were closed in the FY2004-13; a total of 390
DPO’s were analyzed. Also, it analyzed all Public Expenditure Reviews and closely
related country diagnostics as per the Governance global practice database of public
expenditure reviews (the total of 404 public expenditure knowledge products) during
the period 2000-13. For the purpose of this analysis, it is assumed that PER knowledge
products may inform a DPO if it precedes the DPO effectiveness by no more than four
years.
2.3 The structure of the paper is the following: first, it provides elements of a
portfolio review of Development Policy Operations (DPOs) insofar as they relate to the
knowledge on public expenditure reviews.
2.4 Second, it documents basic but important metrics of the integration of Public
Expenditure Reviews (PERs) and DPOs. For example, how many PERs (defined broadly)
precede DPOs in the same and the previous three years in various countries? This
indicates the timeliness and synchronization of PER knowledge and DPOs, and
identifies those PERs that are most relevant for the design of corresponding DPOs.
Essentially, this metric answers some basic questions: in how many and in which DPOs
3
2. THE APPROACH AND MAIN MESSAGES
is there an analytical knowledge on public expenditures prepared by the Bank?4 What
types of DPOs tend to be more informed by PERs? And do these DPOs show better
integration of knowledge with their policy frameworks and greater success in
implementation as measured by rating outcomes.
2.5 Third, the paper answers the question in which thematic and policy areas do
PERs inform DPOs. Are there areas of particularly strong interest to DPOs? Are there
policy areas that appear to be underrepresented given the policy agenda in many
DPOs? Statistical tools measuring the degree of correspondence or similarity are also
used to assess the thematic “proximity” of PERs and DPOs.
2.6 Fourth, for deeper insights into how this integration works in practice, the report
synthesizes insights and lessons from 15 DPO desk case studies; this represents a third
of the DPOs closed in FY11-13 and for which there are completed Implementation
Completion Report (ICR) reviews. The case studies aim to distill some lessons from
good and not so good practice that could inform better integration of PER knowledge
and DPOs in the future. They include insights from the recent Project Performance
Assessment Reports (PPARs) on long DPO series (Tanzania, Vietnam, and Uganda).
.
4The paper considers only the World Bank-prepared public expenditure country focused diagnostics. It
does not consider non-Bank knowledge products.
4
3. Knowledge on Public Expenditure and DPOs:
A basic portfolio view
3.1 This section provides an overview of Development Policy Operations (DPOs),
the World Bank's public expenditure knowledge work, and an assessment of how
public expenditure knowledge products may have informed and contributed to DPOs.
3.2 This section is structured as follows: first it provides a review of the DPOs in the
time period of 2004-2013. Second, it reviews the World Bank's portfolio of knowledge
work on public expenditure in the same period.5 And third, the DPOs and public
expenditure knowledge products are analyzed jointly to assess the extent to which
DPOs may have been informed by Public Expenditure Review (PER)-type knowledge.
Trends in the volumes, numbers, IBRD/IDA, and geography of DPOs
3.3 Data and method. For identification purposes, the detailed Bank project theme
report (2c.2.1 lines) was downloaded and customized from Business Warehouse in
August 2014. Only DPOs were retained from the database. Independent Evaluation
Group (IEG) Implementation Completion Report Review (ICRR) outcome ratings were
merged and matched with the DPO database. Observations for DPOs without an IEG
ICRR were dropped. Based on this selection process, 390 DPOs were identified for the
period of 2004-2013. Next, a database of prior actions was received from Operations
Policy and Country Services (OPCS) matching 387 of the 390 DPOs identified through
Business Warehouse. Thematic codes were further reviewed manually by the IEG team
and broken down into a few subtopics to improve the granularity of the analysis of
macroeconomic management issues in DPOs. Two main limitations apply to the
underlying data. First, administrative data for a given project are typically recorded at
an early stage of preparation, and the record is unlikely to be changed even if there may
be significant changes later on. While the thematic focus of projects is typically expected
to remain robust between preparation, concept, and board approval, this may lead to
some inaccuracies when the project focus was significantly changed during preparation.
Second, the number of observations for recent years is significantly lower, as there is a
delay in the review of the closed projects. The reader should keep this in mind,
5The period of PERs data spans four years prior to that of DPOs to allow for an analysis of how many
DPOs have been preceded by a PER. DPOs cover the period 2004-2013.
5
3. KNOWLEDGE ON PUBLIC EXPENDITURE AND DPOS: A BASIC PORTFOLIO VIEW
especially for the analysis of trend data which, on average, includes fewer observations
in the last three years.
3.4 Volume, numbers, and regional distribution. Two Regions, Europe and Central
Asia and Latin America and the Caribbean, have received most DPO lending
commitments in terms of volume (almost $18 billion each). Most were International
Bank for Reconstruction and Development (IBRD) countries. This is followed by East
Asia and the Pacific which has proportionately more International Development
Association (IDA) countries. Next is the Africa Region, with mostly IDA countries.6
3.5 In terms of number of DPOs, the Africa Region has more DPOs than any other
Region, partly reflecting the large number of countries. The average size of a DPO (in
terms of US$) in the Africa Region, however, is significantly lower than that of other
Regions, reflecting the comparatively smaller size of African economies and their
absorptive capacity (figure 3.1).
Figure 3-1 Commitments and numbers of DPOs by lending instrument and region (closed DPOs,
2004-2013)
Source: IEG DPO database.
3.6 The average lending amount for IDA countries has remained largely constant
over time, but increased dramatically for IBRD countries in the late 2000s. This increase
was a result of the global financial crisis when DPOs were used as a countercyclical
instrument in IBRD countries. The reversal of these trends in 2012 and 2013 in the
6 There were two recipient-executed trust funds (RETFs). One in Rwanda (2010) and one Burkina Faso
(2012), and eight DPOs (e.g. West Bank and Gaza and Burundi) using the state and peace building fund
(SPF). These constitute a minor part of the portfolio, both in terms of numbers and volume.
6
3. KNOWLEDGE ON PUBLIC EXPENDITURE AND DPOS: A BASIC PORTFOLIO VIEW
figures may simply reflect the low number of observations (low number of operations
closed and reviewed) and should be taken with caution (figure 3.2).
Figure 3-2 Trends in IBRD and IDA DPOs and average commitments (closed DPOs 2004-2013)
Source: IEG DPO database.
3.7 The top recipients of DPO financing by volume are IBRD countries. Most notably
Mexico and Indonesia each received more than US$ 6 billion, followed by Poland and
Turkey, which received close to US$ 5 billion each. The countries that received the
largest number of DPOs were Pakistan (16 operations) and Colombia (14 operations)
(Table 3.1).
Table 3-1 Top ten countries by commitments and number of operations (closed operations 2004-
2013)
# Top ten countries by Total Top ten countries by no of No of
commitment commitment operations operations
(US$ millions)
1 Mexico 6,916 Pakistan 16
2 Indonesia 6,250 Colombia 14
3 Poland 4,996 Mexico 13
4 Turkey 4,900 Morocco 13
5 Colombia 3,650 Vietnam 11
6 Pakistan 2,760 Indonesia 11
7 Vietnam 2,175 Bangladesh 10
8 Ukraine 1,701 Ghana 9
9 Morocco 1,638 Peru 9
10 Romania 1,514 Mozambique / Tanzania 8
Source IEG DPO database.
3.8 The majority of DPOs (70 percent) were managed by the Poverty Reduction and
Economic Management (PREM) Network, followed by Human Development (HD) (12
7
3. KNOWLEDGE ON PUBLIC EXPENDITURE AND DPOS: A BASIC PORTFOLIO VIEW
percent) and the Sustainable Development Network (SDN) (10 percent). Within PREM,
most DPOs were managed by economic policy. The Poverty (POV) and Public Sector
(PS) practices each managed 12 percent of all DPOs.
3.9 There does not appear to be substantial variation over time regarding the
networks managing DPOs. This may reflect, on the demand side, the thematic focus of
reforms supported by DPOs, typically concentrated in economic policy and governance
issues and, on the supply side, the Bank’s institutional tendency towards a relatively
constant division of labor among networks. The notable reduction of PREM-led DPOs
from 2011 onward, however, reflects the low number of closed and reviewed operations
rather than a trend in the reduction of approvals (Figure 3.3).
Figure 3-3 Distribution and trend of DPOs managed by Networks and Sector Boards (closed
operations 2004-2013)
Source IEG DPO database.
Trends in public expenditure knowledge products
3.10 Methods of identifying PERs. This review draws on a data collection effort by
the Public Sector Governance Global Practice (GP) on public expenditure knowledge
products. All reports between 2000 and 2014 were drawn from a PER Business
Intelligence and Image Bank query, supplemented by economic and sector work (ESW)
that were not specifically classified as PERs but may also be focused on other aspects of
fiscal and expenditure management, such as debt sustainability and macro-fiscal issues.
Examples include (but are not limited to) public finance reviews, country economic
memoranda, health expenditure and finance studies, and various policy notes with
substantial public expenditure content. The Public Sector Governance GP cast the net
8
3. KNOWLEDGE ON PUBLIC EXPENDITURE AND DPOS: A BASIC PORTFOLIO VIEW
relatively wide so the total number of reports may appear large. Reports included are
all those that have a unique identification number in Image Bank. Excluded are reports
written in languages other than English, and supplementary volumes. All thematic
codes of reports were reviewed, double-checked, and cleaned manually as necessary by
the IEG team to allow for the interpretation of the data.
3.11 Volume, numbers, and regional distribution. Over the period of 2000-2014 there
have been 404 knowledge products on public expenditures. The longer period is used
compared to DPOs to account for linkages with PERs that preceded DPOs in 2004 by
four years; those earlier PERs could, presumably, inform the design of DPOs three to
four years later. There has been a steady upward trend in the number of PERs delivered
over the years. The average number delivered between 2000 and 2009 was 22.3, which
then increased to 36.2 per year delivered between 2010 and 2014.
3.12 The largest share of these knowledge products (35 percent) was produced in the
Africa Region followed by Europe and Central Asia (27 percent) and East Asia and the
Pacific (16 percent). South Asia and the Middle East and North Africa trail notably with
five and four percent, respectively. There has been a concentration of PERs in a small
number of countries with extensive Bank engagement (Table 3.2).
Table 3-2. Top ten countries with PERs, 2000-14
Country Number of reports
Indonesia 29
Tanzania 15
Tajikistan 13
Uganda 11
Ethiopia 10
Kyrgyz Republic 9
Philippines 8
Africa, region wide 8
Russian Federation 8
Ghana 7
Source: IEG DPO and PER Database.
3.13 The 404 reports were conducted across 127 countries. The top ten countries with
the most reports are listed in table 3.2: Indonesia scores highest with 29 reports,
followed by Tanzania (15), and Tajikistan (13). The number of reports has increased
significantly from the late 1990s until 2010. The majority of PERs in the Africa Region
may reflect the emphasis on basic public expenditure policy trade-offs, poverty,
distributional and allocation issues, as well as the need to underpin DPOs by a public
expenditure analysis in an environment of limited availability and quality of data
9
3. KNOWLEDGE ON PUBLIC EXPENDITURE AND DPOS: A BASIC PORTFOLIO VIEW
(figure 3.4). By contrast, in many IBRD countries, such data and analyses may be
available on a more regular basis, including analyses by country authorities, perhaps
obviating the need for full-fledged or frequent PERs.
Figure 3-4 Trend and regional distribution of public expenditure knowledge products (2000-2014)
Source: IEG review of Public Sector Governance PER monitor.
3.14 Most PER-type knowledge products reviewed were thematically coded for
public sector governance (figure 3.5). Of the 404 reports, 191 were coded for 81 themes
by the task team leader. Summarizing these into clusters, close to 90 percent contain
public sector governance as thematic cluster. The social development, gender, and
inclusion cluster was coded 35 percent of the time, followed by the human development
cluster, which was coded in 18 percent of all reviews. In terms of the actual themes of
interest in the present analysis, macroeconomic management was coded in 15 percent of
documents, tax policy and administration in seven percent, and social safety nets7 in six
percent of all reports.8
7 “Macroeconomic management” is included in the “economic management” cluster. “Tax policy and
administration” is in the “public sector governance” cluster. And “social safety nets” is in the “social
protection and risk management” cluster.
8 Note that reports may receive up to five themes, thus totals exceed 100 percent.
10
3. KNOWLEDGE ON PUBLIC EXPENDITURE AND DPOS: A BASIC PORTFOLIO VIEW
Figure 3-5 Percentage of PERs with specific themes (2000-2014); (n=191)
Source: IEG review of Public Sector Governance PER monitor.
3.15 Importantly, these PER codes are the same theme codes used in the thematic
coding of DPOs and prior actions. This allows a relatively accurate “matching” of
themes between PERs and DPOs. The notable difference is that operations and ESW are
coded by the task team leaders, while prior actions were retro-fitted with codes by
OPCS manually.
How does knowledge of public expenditure inform DPOs?
3.16 This section uses portfolio data on both DPOs and PERs to identify the overlaps
and linkages between the two and ascertain whether PERs could potentially have
played an informative role regarding resource allocation issues and policy frameworks
in DPOs. Specifically, the analysis of the portfolio tells us how many DPOs were
preceded by a PER within an adequate time period, and whether there was thematic
overlap between the PER and the prior actions used by the DPO. An in-depth review of
whether and how PERs have informed recent DPOs was taken up in the case studies
(see chapter 4).
3.17 A total of 390 DPOs and 404 PER knowledge products were analyzed for
potential thematic overlaps as follows: if a DPO had a public expenditure knowledge
product within four years before DPO project effectiveness, it was considered relevant9.
Using this rule, of the 390 DPOs, exactly 265 were preceded by a PER knowledge
product, about 68 percent. DPOs were conducted in a total of 103 countries. In 75 (73
percent) of those countries, a knowledge product was potentially informative to the
9 Reports released five years or longer before DPO project inception were deemed too dated to credibly
inform the operation, especially since reports use data from two or more years prior to dissemination.
11
3. KNOWLEDGE ON PUBLIC EXPENDITURE AND DPOS: A BASIC PORTFOLIO VIEW
operation. These numbers suggest that the Bank’s knowledge on public expenditures is
highly relevant and could inform the design of operations in the majority of DPOs and
countries under analysis. Table 3.3 provides a breakdown of these figures.
Table 3-3. Number and share of DPOs preceded by PER
Number Share
Total No of DPOs 390 100%
DPOs with PER 265 68%
Total countries with DPOs 103 100%
Countries w/ DPO and PER 75 73%
Countries w/ DPO but w/o PER 28 27%
Source: IEG assessment of DPO and PER data.
3.18 Another way of looking at these data is to view the countries with DPOs
matched by recent PERs as those with relatively substantial policy dialogue. PERs are not
just policy oriented research products. They are also a process of consultation,
discussion, and dialogue that can inform policy reforms underpinning DPOs on a
variety of public expenditure issues (e.g., subsidies, wage bill, public investments,
budgeting and execution, pro-poor expenditures, equity). Neither PER-type knowledge
products nor DPOs can be done without an explicit request from and collaboration with
the country authorities—collaboration which evolves through a dialogue on policy
reforms, their objectives, policies, trade-offs, and outcomes. And it is through this policy
dialogue that knowledge products translate, directly or indirectly, into policy reforms
and outcomes.
3.19 Further, while on average, 68 percent of DPOs were potentially informed by a
PER, there is considerable regional variation. Europe and Central Asia has the most
DPOs with PERs at close to 80 percent, followed by the Africa Region and East Asia and
the Pacific, which have 76 percent each. On the other end of the spectrum is the Middle
East and North Africa, where only 23 percent of all DPOs have a PER as an analytical
underpinning (see figure 6). The Middle East and North Africa Region covers about
eight percent of all DPOs, but only constitutes four percent of PERs (see figure 4). As
indicated, these figures may also reflect not only the demand for the Bank’s knowledge
and DPOs but also the relative breadth and strength of the policy dialogue on policy
reform and public expenditure issues in the respective Regions.
12
3. KNOWLEDGE ON PUBLIC EXPENDITURE AND DPOS: A BASIC PORTFOLIO VIEW
Figure 3-6 Numbers and shares of DPOs with PERs within four years, by world region
Source: IEG assessment of DPO and PER data.
3.20 There has been a downward trend over time in the number of DPOs preceded by
a PER (Figure 3.7). Between 2004 and 2007, more than 70 percent of DPOs had a
relevant PER as an analytical underpinning. This share declined since then to less than
60 percent since 2012. While observations of DPOs were few in 2012 and 2013, this trend
was already pronounced in the years prior. Interestingly, there is a spike of DPOs with
PERs in 2009-2010 when a number of DPOs were extended in the context of the global
financial crisis. Apparently, many of the DPOs in those years had PERs available.
Figure 3-7 Trends in the numbers and shares of DPOs with PERs
Source: IEG assessment of DPO and PER data.
13
3. KNOWLEDGE ON PUBLIC EXPENDITURE AND DPOS: A BASIC PORTFOLIO VIEW
3.21 The trend in the performance of DPOs with PERs (IEG outcome rated
moderately satisfactory or higher) has been mixed. There has been a decline in IEG
ratings of DPOs with PERs between 2004 and 2008, and in most of these years the
performance has been slightly under that of DPOs without a PER. Since 2008, however,
the performance of DPOs with a PER improved markedly so that in recent years DPOs
with a PER outperformed those without by a small margin (figure 3.8).
Figure 3-8 Comparison of the trend in performance of DPOs with/without a PER
Source: IEG calculations using Business Warehouse data and the PER monitor.
3.22 Matching DPOs and knowledge products varies by “similarity” of themes.
Another way to obtain a metric of thematic integration of PER themes with DPO policy
content represented in DPO prior actions uses the statistical-descriptive concept of
“similarity.” In other words, we ask the question: to what extent do policy
themes/topics in the PER match those in the policy framework in the prior actions of
DPOs? To this end, the IEG team developed a “similarity index,” constructed to show
the extent to which the portfolio of DPOs match with the respective portfolio of PERs
using the themes of DPO prior actions and the first theme (where available) of the PER.
This similarity measure ranges between -1 (no similarity) and 1 (high similarity), with
higher values indicating greater similarity.10
3.23 Using this approach, the match between DPOs’ policy frameworks in prior
actions and PERs is generally quite high with an overall similarity measure of 0.69
(table 3.4) compared with 1.0 indicated “perfect” thematic similarity. Interestingly,
10The similarity index is based on the concept of Euclidian distance. The similarity measure employed is
the cosine similarity, which measures the similarity between two vectors showing frequencies of thematic
codes in DPOs and PERs. In this case, the prior action theme vector is the vector that counts the number
of instances of each theme among all prior actions of a DPO. The PER theme vector does the same for all
the themes of the matching PERs. In other words, these vectors capture theme frequencies. The measure
then compares the distance between these vectors with smaller distances indicating greater similarity.
14
3. KNOWLEDGE ON PUBLIC EXPENDITURE AND DPOS: A BASIC PORTFOLIO VIEW
stand-alone operations are somewhat more closely related to the PER than
programmatic DPOs, but the difference is small and both types of DPOs have quite
high similarity indices.11
Table 3-4 Similarity index of DPOs and PER, using theme codes
Similarity measure
All 0.69
Stand-alone DPO 0.74
Programmatic DPO 0.52
Below-average size DPO 0.72
Above-average size DPO 0.45
Econ. Policy sector board 0.67
Other sector board 0.60
Source: IEG calculations.
3.24 A number of DPOs feature explicit medium-term expenditure framework
(MTEF) content in prior actions. To ascertain such DPO-PER linkages at a more
granular level, we also looked at some broad public expenditure policy areas relevant in
many countries, such as medium-term expenditure frameworks. A relatively small
fraction of DPOs analyzed explicitly mention the medium-term expenditure framework
(MTEF) in their prior actions. Out of the 387 operations, 59 cited an MTEF at least once
in a prior action, which is about 15 percent of total. In terms of the total numbers of
prior actions, MTEF-related ones are much fewer, making up less than two percent of
the total. In addition, there appears to be a downward trend of MTEF-related actions
over the years, as shown in figure 3.9. This, however, could be interpreted in light of a
general reduction in the number of prior actions and, possibly, progress with
completion of past MTEF reform actions. Or, it could reflect a reduction in multi-sector
operations with multiple MTEF related prior actions.12
11Further, DPOs with higher ICR review ratings appear less closely matched to PER analytical work than
DPOs with lower ratings. This may, in part, be explained by a larger number of reports being produced
in large countries, not all of which need to be aligned with a DPO and some of which were more aligned
with non-DPO instruments (e.g., the count of PERs in Indonesia is 29 and not all can be expected to be
related to the 11 DPOs —especially given that many sectoral reports were produced).
in only one prior action was a public expenditure review explicitly mentioned, directly
12 Interestingly,
linking the policy recommendation of the PER with DPO policy action. The 2007 LAO PRSC III operation
required that the “[Ministry of Finance] approved an updated Public Expenditure Management
Strengthening Programme (PEMSP) and implementation plan based on 2005/6 PER analysis and
demonstrated ongoing progress with its implementation and capacity building .” Interestingly, that
particular operation, as with some other DPOs in that country, scored highly on the macro-fiscal
consistency index in assessing the quality of the macro-fiscal framework (See the accompanying report on
the quality of macro frameworks in DPOs, IEG 2015). So this is the case of a DPO and country where
there is clearly a high-quality macro-fiscal framework coupled with a relevant PER knowledge product
that was directly and explicitly used in the design of the DPO policy framework.
15
3. KNOWLEDGE ON PUBLIC EXPENDITURE AND DPOS: A BASIC PORTFOLIO VIEW
Figure 3-9 Number of MTEF related prior actions (operations closed 2004-2013)
Source: IEG review of OPCS prior action database.
Note: MTEF related prior actions are those that explicitly feature MTEF in their formulation, either as a process, document, or
Government decision regarding the preparation or implementation of MTEF.
3.25 Finally, a very preliminary review of the portfolio or subnational DPOs and PERs
(Appendix 3) for the period 2000-13 (PER) and DPOs (2004-13) suggests that those
DPOs have taken place in a small number of large, federated countries.13 By far, the
largest number of subnational DPOs in this period took place in only one country:
Brazil. PERs and DPOs generally tend to overlap in a very small number of countries.
Given the importance of the subnational fiscal and development agenda, this may
suggest a potential knowledge gap and an opportunity for the Bank to intensify
knowledge engagement at subnational levels, both as part of the knowledge and policy
dialogue and as a contribution to future DPO development.
13There were other subnational DPOs in other countries in the period preceding 2004 (e.g., India,
Pakistan).
16
4. Select findings from case studies
4.1 This section draws on 15 in-depth case studies (including programmatic series;
25 if counted as individual operations) that were written against a common protocol to
provide an understanding of where and how knowledge on public expenditures has
contributed to the design of Development Policy Operations (DPOs). Case studies were
drawn from all Regions and a variety of DPO types that were closed in FY11-13 and had
a completed Implementation Completion Report (ICR) review. Although the case
studies cover a third of all DPOs meeting the periodicity and ICR review criteria, the
intention is to maximize learning and gain in-depth insights rather than fully represent
the portfolio regionally and globally. A summary of select findings of these case studies
is provided in table 4.1.
4.2 Overall, in most of these cases, there is a Public Expenditure Review (PER) or a
related product addressing public expenditure issues related to the content of the DPO.
In one case where there is no recent PER—St. Lucia—there is a related poverty
assessment closely thematically related to the social sector focus of the DPO. In the case
of Brazil, there is no evidence of a PER or a related work, and in Albania, the PER was
dated although related to the content of the DPO. Interestingly, in each of these cases
where there is no recent DPO, the macro-fiscal frameworks had identifiable weaknesses
(see the accompanying report on the macro-fiscal frameworks in DPOs).
Table 4-1 Integration of PERs with DPOs: Select findings from the case studies (Also see detailed
table in Annex 3).
Country, DPL, Fiscal Year Coverage Was there a PER? What was Other Analytical Work
(single the focus? (specific/general) on Public Expenditure
tranche; Allocation
series; sector;
general)
Albania Social Sector Reform DPL, One-Tranche No recent PER. Some intra-sectoral
one-tranche, US$25m, FY11 Social Sector Extensive PER in 2006 analysis on shifting
covered public debt, social expenditure
insurance system, the health allocations to the poor
finance environment including through targeting, but
the health insurance institute no discussion of
(HII). Although PER was dated, composition or
issues of targeting in the social adequacy of
protection system and need for expenditure
HII reforms were relevant. allocations to social
transfer programs and
health.
Benin PRSC 4-6, series, FY07-10 Series PER in 2004 focusing on social
General expenditure trends in the same
17
4.SELECT FINDINGS FROM CASE STUDIES
sectors of focus in the PRSC
series.
Brazil (State of Rio Grande Do One-tranche No PER or state specific social
Sul), Fiscal Sustainability DPL, State only sector reports to guide DPO.
US$1.1 billion, FY09
Cote d’Ivoire Post Reconstruction One-tranche PER in 2008. Emphasis on
and Recovery Grant, US$150 General macro and fiscal issues, exp.
million, FY12 and revenue policies, PEFA,
and a review of Public
Procurement System.
Indonesia Infrastructure DPL 4 Series of 4 PER in 2007 Infrastructure
(series of 4), amounts of Infrastructure Framework for Policy
US$200m, 200m, 250m and 200m, Sector and Action, 2004
FY08-11
Latvia Safety Net and Social Series of 2 PER in 2007 (prepared for IMF Program
Sector Reform Program (series of General crisis) addresses long-term
2). US$134.62m, FY10; (Global Crisis) PER 2010 (on social sector structural reforms in
US$130.73m, FY11 2008-10 reforms) social safety net
response) (SSN), pensions,
state-owned
enterprises
Mexico Green Growth DPL, One-tranche PER in 2009 (on agriculture
US$1.503 billion, FY09 Environment and rural development)
sector PER in 2004 country-wide
Peru Programmatic Fiscal Series of 4 PER in 2002 CEM, CFAA, CPAR,
Management and General PER in 2007 Investment Climate
Competitiveness DPL, US$200m, Assessment (ICA),
370m (plus supplemental DDO of Poverty Assessment,
US$330m), 150m and 100m, FY07- Sector Studies,
11 Financial Sector
Assess. Update,
PEFA in 2009
Poland Energy Efficiency and One-tranche PER in 2010
Renewable Energy Development, Energy sector
DPL, US$1.4 billion, FY11
Romania Financial Management Series PER in 2006
and Social Protection DPL 2 (in a General PER in 2010, in middle of
series of 1-3, 2009-11), amounts of series as urgency due to global
US$422m, 380m, 560m, FY11 crisis.
St Lucia Economic and Social One-tranche No PER Poverty Assessment,
DPL, US$12 million, FY10 General SSN Assessment,
Tunisia Governance and One-tranche No PER Health Sector Study in
Opportunity DPL, US$500 million, General 2006
FY11
Vietnam, Programmatic PRSC 10 Series PER in 2005 covered resource PEFA exercise in 2013
(in a series of PRSCs 6-10), General allocation, PFM challenges. to diagnose PFM
US$152 million, FY10 issues.
Source: IEG team review of case studies.
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4.SELECT FINDINGS FROM CASE STUDIES
Examples of successful contribution of public expenditure work in the design of
DPOs
4.3 Some DPOs clearly show a high degree and relevant integration of PER
knowledge into DPO policy frameworks and prior actions. We highlight those cases
with emphasis on the specific policy areas and how they contributed to the formulation
of DPO design. Among the case studies reviewed, three operations stand out as
examples of good practice. Even there, however, there are areas where such integration
could have been more pronounced, which is also highlighted. These were the DPOs on
Romania, Peru, and Indonesia.
4.4 Romania. Financial Management and Social Protection Series (DPOs 1-3, closed
FY11). This DPO series is a good example of incorporating PER recommendations and
appropriately sequencing prior actions in the DPO series, and prior actions that are
substantive and binding.
4.5 Romania’s PERs in 2006 and 2010 were relevant. The 2010 PER was in the middle
of the DPO series and emphasized the urgency of the Bank’s response to the global
crisis. The findings of the PER were directly used in the DPO policy areas and prior
actions. Policy dialogue on the PER continued and intensified as policy dialogue on
DPO reforms.
4.6 The main areas where the Romania PER recommendations were used in the DPO
include the following:
Medium-term expenditure framework (MTEF): Financial management was
improved under the DPO by explicitly introducing an MTEF. This moved from
administrative action in the first DPO, to preparation and discussion of
legislation in Parliament in DPL2. The prior actions became increasingly more
binding, eventually calling for parliamentary approval of the MTEF in DPL3.
Public Sector Wages: The PER made recommendations for reforms in the
structure of wages and the wage-setting process. Reforms in public sector pay,
introducing more transparent mechanisms for adjustments in the structure of
public sector wages, and merit increases were specific prior actions in the three
operations.
Education: The PER suggested more flexibility in allocating teachers according to
demand. The second PER, going further, recommended per capitation formulas.
The prior action included a submission to Parliament followed by legislation in
place in capitation formulas in eight counties. This reform, however, was slow
in implementation. It could have been approved a year earlier, particularly as
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4.SELECT FINDINGS FROM CASE STUDIES
the population involved was small. The policy should have ideally been
extended to the overall country by DPL2.
Health: Both PERs raised the need to address bias in the allocation of resources
toward hospitals versus preventive and primary care (outpatient care). Here, the
DPO does not feature strong follow up. But DPL 2 included a prior action
requiring a decision to update a Hospital Rationalization Strategy.
Pensions: The PERs address the need to reform the system. The second PER is
more forceful in flagging that the system is financially unsustainable. It also
stresses the need to act on several fronts, from retirement age, privileges to
certain groups, indexation, etc. The DPL includes a prior action on indexation
reform.
4.7 Peru. This DPO series (Programmatic, Fiscal Management, and Competitiveness,
closed FY11) represents a case of well-timed, several PERs, well integrated into the
DPOs, a host of good economic and sector work (ESW) including a Public Expenditure
Financial Assessment (PEFA), and good data and analysis which informed the sound
design of a series of four DPLs. The operation also resulted in strong implementation.
4.8 Substantial PER-type work preceded the DPO. Peru had PERs in 2002 and 2007,
and a PEFA in 2009, in preparation for the Programmatic Fiscal Management and
Competitiveness DPL series of four loans in FY07-11. The first operation used the PER
directly as a basis for its design. This ensured the continuity of the policy dialogue from
the PER to the DPO. The third operation used the PEFA to inform its design (to inform
the reform process and indicative triggers). All three studies appear to have informed
country authorities and the Bank on the most important aspects of reform, and also
provided them with data and timely analysis, which made it possible to formulate DPO
prior actions and several indicators.
4.9 The DPOs selected policies on the basis of the analytical work that aimed to
determine key policies with a large development impact. Substantial diagnostic work
informed the design of the series. Some studies had been completed, while others were
underway at DPO preparation. For example, a completed Public Expenditure and
Financial Management Assessment and an (at the time) ongoing PER contributed to
inform the policy dialogue in the areas of Public Financial Management (PFM) and
fiscal transparency. Similarly, the Governance and Governability Nonlending Technical
Assistance (NLTA) supported policy analysis related to results-based transfers to
subnational governments, which underpinned the reforms supported by the series. On
the competitiveness agenda, the Informality ESW addressed the question of how
informality affects productivity and competitiveness of small and medium-sized
businesses. Overall, the lesson here is that a substantial amount of timely and good
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4.SELECT FINDINGS FROM CASE STUDIES
analytical work formed the basis for this successfully-designed DPL series, with robust
links in the results framework, and strong implementation.
4.10 As documented in the accompanying report, this operation also featured a high
quality macro-fiscal framework, which contributed to the quality of the overall design
and DPO rating.
4.11 Indonesia. Infrastructure DPO series, four operations, closed FY11. This sector
DPO series was based on PER findings. It set high reform expectations and it pushed
hard for sector reforms amidst challenges.
4.12 Indonesia’s comprehensive, multi-sectoral 2007 PER was timely. At the time,
Indonesia was expected to have significant additional fiscal resources to address
development needs following the post-crisis period. Although the macro-stability was
established, public infrastructure spending had remained at only 2 to 3 percent of gross
domestic product (GDP) for many years, well below the needs of a rapidly growing
economy and population. There was concern that poor infrastructure—electricity
shortages, road congestion, and low access to piped water and treated sewage—had
reduced the quality of life and the environment, and would ultimately hamper growth.
A major Bank study (2004) had analyzed the problem of infrastructure needs.14 The
PER focused on how to build on prior achievements and spend additional public
resources effectively and efficiently to improve the quality of social services and close
the infrastructure gaps.
4.13 The Indonesia DPL (I-DPL) Policy Matrix was clearly linked to the PER and the
2004 study. The four policy areas of the DPL series (national, subnational spending on
infrastructure; private sector financing through public-private partnerships (PPP); and
cross-cutting areas of land, environment, and fiduciary), and prior actions covered
several key policy proposals. This included expanding the supply of electricity to
unserved areas in a cost effective and equitable manner; reducing inefficient and pro-
rich fuel subsidies (one of the largest spending items on the budget); and reallocating
inefficient and pro-rich electricity subsidies from consumption towards connection to
encourage expansion of the electricity network (also recommended in the related Social
Impact Assessment).
4.14 Despite the long-standing tensions and turmoil over the policy direction in the
power sector, the inclusion of high profile outcomes (greater access and better subsidy
14 Indonesia: Averting an Infrastructure Crisis, A Framework for Policy and Action, 2004.
21
4.SELECT FINDINGS FROM CASE STUDIES
targeting) in the policy matrix raised expectations for policy changes.15 Sector policy
dialogue was substantive, but ultimately implementation proved difficult. The policy of
providing electricity at rates below cost recovery was in direct conflict with the need to
increase the supply of and access to electricity at a time of fiscal restraint. Existing
consumption subsidies favored the wealthier over the poor. The lack of legislative
action to change tariff policy during the first three operations prevented the reform of
tariff pricing and limited progress on improving reliability and access to the power
supply.
4.15 In hindsight, the Bank overlooked some key factors—that parliamentary
approval was required to change below-cost tariffs and electricity prices and that
powerful vested interests could block the approval of the law.16 Although the
government began to revisit the electricity law to remove the monopoly power of the
state-owned electricity company in electricity supply and to allow regional
governments to set electricity tariffs, lobbying by some industry groups prevented tariff
increases. However, the IDPL continued to push for power sector reforms. Although
reforms did not occur during the first three IDPLs and performance targets were not
achieved, there was a final breakthrough in the end.
4.16 In mid-2010, during the last IDPL, revisions in electricity tariffs broke the long-
standing taboo and made a major reform step in the right direction. Simulations of the
social impact of the draft tariff scheme suggest that the top decile’s household
consumption share of the electricity subsidies will fall, while the bottom decile increases
their share—indicating a more pro-poor tariff structure. Proposed tariff increases would
not affect the poorest as they are concentrated in the lower capacity bandwidths.
Analysis also shows that the lowest capacity users represent the largest share of
residential users and the prospective subsidy changes in 2010 would shift the subsidy
emphasis from industry and business to low capacity households. This would suggest a
progressive tariff and subsidy scheme. Reforms supported by the series, despite delays
and difficulties, should play a role in extending access and reducing regressivity of
tariffs in Indonesia.
15Official household access to electricity was 55 percent in 2005 (PER, 2007). Residential
consumers who were connected at less than 900 watts received only 41 percent of the State
Electricity Company (PLN) subsidy.
16The government provides a subsidy to cover the difference between its costs and regulated
tariffs. A key part of the subsidy is received by residential consumers who are unlikely to be
poor (with connections greater than 900 watts) and by large industrial and commercial
consumers.
22
4.SELECT FINDINGS FROM CASE STUDIES
4.17 This is an example of difficult, well-designed DPO reforms informed by PER
analysis that took time to deliver results. It would have been expedient to drop or soften
tariff reform from the reform agenda. But the Bank and the authorities’ persistence in
the face of difficulties paid off.
4.18 Finally, another lesson is criticality of complementary AAA on public
expenditure to drive implementation effectiveness, including political economy
analysis, poverty assessment, CEM, which is possible for a large, active Bank client
country.
Examples of missed opportunities
4.19 In contrast to the above good practice examples, in some DPOs, we identified
missed opportunities in the integration of PERs with DPOs. For example, public
expenditure knowledge that existed but was not used in the DPO dialogue and design.
Or difficult issues in the DPO that could have been resolved and for which there existed
a knowledge base, but they remained unaddressed. We highlight, in particular, the
operations in Latvia, Albania, Vietnam, and Benin.
4.20 Latvia. Social Safety Net and Social Sector Reform Program, series of two DPOs,
closed FY11. A missed opportunity here can be summarized with a question: Could
“indicative triggers” have been revised and new actions introduced following Board
approval of the first operation in a series if there is compelling new information or a
change of circumstances?
4.21 Latvia had two PERs in 2007 and 2010. The 2007 PER had limited overall
relevance to the DPL as it had focused on the long-term agenda of improving public
efficiencies in general. The subsequent global crisis resulted in major budget cuts in
2009. The Safety Net and Social Sector Reform DPL (FY10) commissioned a PER in the
same year to provide analytical underpinning, and to specifically focus on social sector
reforms in an environment of a substantially reduced budget envelope. The study
scrutinized the ongoing reforms on social protection, health, and education; provided a
thorough analysis of challenges in social protection, health, and education; and
provided a menu of options for policy action for the medium term. However, as policy
actions for the (second) DPL were already designed during first DPL (as indicative
triggers) — there was little flexibility to incorporate new actions and recommendations
arising from the PER.
4.22 As a result, some of the potentially important reform areas that came out of the
2010 PER that were not included in the first operation did not become reform actions
under the second program. For example, the 2010 PER suggested reforms in family state
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4.SELECT FINDINGS FROM CASE STUDIES
benefits that were not well targeted but constituted 37 percent of the social protection
budget as of 2010. The PER also suggested a number of reforms in social programs to
redirect resources from the nonpoor to the poor. However, this did not become part of
the reform program either. There was a de facto break in the continuity of the policy
dialogue from the PER to DPOs. And a missed opportunity to improve the composition
of public expenditures towards the poor at a time of general budget austerity.
4.23 Albania. Social sector reform DPL (standalone, closed in FY11) is a DPO that
does not use or mention a relevant PER. An in-depth PER in December 2006 covered the
same areas as the Social Sector Reform DPL in April 2011, and the PER provided a
thorough analysis on key social sector reforms. However, there is no mention of the
PER in the DPL program document. There is also no indication that PER
recommendations informed the DPO design. It is true that the PER was completed over
four years before the DPO and perhaps this and the associated break in the policy
dialogue may partly explain how the PER fell from the DPO radar screen. Personnel
changes in both the government and the Bank during this time also may have
contributed to the apparent loss of institutional memory. But the PER content was
highly relevant to the DPO and as such it should have been consulted.
4.24 The December 2006 PER may be dated; however, it covered key aspects and
issues in the social sector, which were relevant at the time of the DPL. For example, it
included the Ndihma Ekonomike Social Assistance Program, equity and efficiency of
health sector expenditures (including the Health Insurance Institute), education funding
levels and relative efficiency, and the pension program’s challenges. These overlap with
some of the main areas and objectives supported by the subsequent DPL, including,
policy changes to: improve the effectiveness of social safety nets and enhance the
efficiency and equity of health spending in a fiscally sustainable environment. Specific
policies under the DPO aimed at strengthening mechanisms to allocate funds and select
beneficiaries in the main social assistance program and enhancing the efficiency and
equity of health spending. Against this backdrop, the 2011 DPO program document
fails to mention the PER and its findings. The only reference to the “PER - Public
Expenditure Review” is in the list of acronyms.
4.25 Vietnam: The programmatic PRSC series, PRSC6-10 incorporates the critical
recommendations of a PER in its DPO policy matrix at entry. However, integration
proved of PER with the initial design of the PRSC was solid, it proved ineffective as the
political economy constraints to implementing the program were overlooked (IEG
PPAR, 2015, Vietnam PRSC6-10).
4.26 There was an “award-winning” PER in 2005, a major exercise that covered the
allocation of public funds and critical areas of public financial management (PFM). The
PRSC series included 10 of the key recommendations from the PER and the 2007
Vietnam Development Report in its design. Public expenditure and PFM were key
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4.SELECT FINDINGS FROM CASE STUDIES
policy areas in the series. Of the four prior actions in the first PRSC, three were public
expenditure/PFM and focused on the critical areas of improving independence of the
State Audit of Vietnam (SAV) and strengthening debt management. There were 10
indicative triggers in subsequent PRSCs 7-10. These were also critical to improving PFM
and derived directly from the PER. So what was the problem?
4.27 The policy matrix changed significantly as the dialogue and the series
progressed, introducing problems. The relevance and strength of policy actions
declined substantially. Key policy actions envisaged at entry in PRSC 6 were never
incorporated into the final policy matrix of the PRSC operations. In particular, proposed
key policy actions on integration of the MTEF into the budgeting process, reducing off-
budget expenditures, and introducing international standards in financial statements
were dropped from subsequent PRSC operations, ostensibly because of the lack of
reform momentum. The PRSCs continued even as weakening reform performance was
reflected in the Country Policy and Institutional Assessment (CPIA) subcomponents on
fiscal management and PFM, which declined during the relevant period 2006-2013.
Why did the Bank progressively drop the policy actions in the DPOs? It is a question for
reflection within a broader context and discussion of the dialogue and Bank strategy in
that country. What is clear is that PRSC disbursements were made irrespective of the
clear weakening of the otherwise sound policy framework that was well integrated with
relevant analytical work. Resource transfer considerations dominated reform objectives.
4.28 The Vietnam Public Investment Reform (PIR) series was implemented in FY 09-
12 in parallel to the PRSCs and it took on some of the issues identified in the PER. The
PIR was to support reforms in public investments (identified as a major issue in the
PER). This had become a larger issue by 2009, due to problems in the expenditure
composition that neglected operations and maintenance expenditures. Although the
initial design of the PIR series included the law on public investments (to address this
issue) as an indicative trigger, it was dropped from the policy matrix and never became
a prior action.
4.29 The PIR series did not achieve any major results in the area of public investments
that were highlighted in the PER. The 2005 PER suggested frequent subsequent PERs;
however, the authorities indicated no interest in follow up PERs in the period 2008-
2013. There was apparently no interest or political will to delve into the diagnostics and
causes of expenditure inefficiencies and resulting recommendations. The 2013 Public
Expenditure Financial Assessment (PEFA) revealed that many of the challenges
identified in the 2005 PER remained. Despite the PIR, improvements in the public
expenditure policy since 2005 have not been substantial, except in the areas of PFM
information systems, public debt management, and state audit.
25
4.SELECT FINDINGS FROM CASE STUDIES
4.30 In sum, Vietnam is a case of strong public expenditure AAA, which was well
integrated into the initial design of the PRSC, but which produced limited results
because of weak implementation and ownership.
4.31 Benin. PRSCs 4-6, closed FY10. The DPO series aimed to improve Millennium
Development Goal (MDG) outcomes through increasing the efficiency of public
expenditures in water and sanitation, health, and education. A PER 2.5 years before
included an in-depth analysis of trends and policy issues in these three sectors critical
for the MDGs. Yet the PRSC program documents make no reference to the PER. The
DPO policy framework also does not take into account its analysis and
recommendations.
4.32 The 2004 PER focused on social expenditure trends in water and sanitation,
health, and education, the same areas of focus in the PRSC series. However, the PRSC 1
does not contain any quantitative analysis of the composition and direction of public
expenditures, how they evolved over time, and how well they targeted areas of
relevance to the MDGs, especially those MDGs where Benin was lagging. One would
have expected the first PRSC operation to at least have updated, main budgetary
information that was presented in the PER. But the PRSC makes no references to the
PER. This is a serious omission considering the PER’s sound analysis and candid
assessment that “the share of expenditures in five major health programs is driven by
the availability of foreign funds rather than by national priorities; some important
causes of child mortality and morbidity are not addressed,” and the fact that a PRSC
series explicitly focuses on improving MDG outcomes.
4.33 Other issues raised in the PER that were missed but could have strengthened the
policy framework and results of the PRSCs are:
First, despite improvements, infant and child mortality remain high. Very little progress
was achieved with maternal mortality and access to sanitation in rural areas. There are
substantial differences across income groups in both access to education and child
mortality.
Second, special budget lines have increased significantly relative to the spending by
health administrators at the regional and central levels. Major health programs are
assessed as driven by the availability of foreign funds, rather than by national health
priorities. This is a broader indication of the misalignment of the donors’ objectives from
those of the government, as well as a missed opportunity to address priority areas such
as child mortality and morbidity.
Third, a similar issue is raised in the water sector where the PER notes that
“[i]investment in water point is focused in a few regions, due to donor preferences.”
Did the Bank raise the issue of apparently different priorities between the government
and donors, at least informally, during the preparation of the series? It is not clear based
on the document review. However, it is hoped that these issues were discussed with
donors, which is a key point of the Paris Declaration.
26
5. Conclusions
5.1 Six conclusions emerge from this review.
First, the Bank has been producing a considerable volume of knowledge on
public expenditure, which increased in recent years, and that knowledge was
available to inform the majority of DPOs in the majority of countries with DPO
operations. The analysis of 390 DPOs and 404 public expenditure knowledge
products (PERs, broadly defined), which were subject of this review, suggests
that there is a solid degree of timeliness, availability, relevance, and thematic
overlap as well as integration between PER knowledge and DPOs. Most DPOs
(some 68 percent) had PERs prior to DPO effectiveness. In most countries with
DPOs (73 percent), there are timely PERs preceding DPOs. There is also
evidence of continuity of policy dialogue from PERs to DPOs in many cases.
This is a reassuring conclusion. It implies that the Bank’s country-based model,
which integrates knowledge and lending, is working well in the case of PER
knowledge and DPOs. There are good practices worth highlighting as well as
weaknesses that offer opportunity for reflection and lessons for the future.
Second, public expenditure knowledge informs DPOs largely in the areas of
public sector governance, followed by social development and human
development. Macroeconomic and tax policies, in particular, tend to show
comparatively smaller overlaps, but this may be because some of the
macroeconomic policy agenda is taken up more directly in the macro-fiscal
framework as elaborated in the accompanying report. There is a tentative
question whether tax policy is an area in which the Bank has “left the field,”
perhaps to the national authorities and the International Monetary Fund (IMF),
and whether that should be revisited. Also, the decline in the frequency of
MTEFs in the policy content of DPOs raises questions of the current state and
the future of these medium-term reforms.
Third, deeper dives into case studies of recent DPOs show some good practices.
The DPO series in Peru and Romania are such examples. These good practice
examples of the integration of PER knowledge and DPOs tend to show a
continuity of policy dialogue, from PER to DPO, with the DPO design directly
and explicitly using knowledge on public expenditures and policy
recommendations in its prior actions. Such DPOs also tend to have stronger,
other elements of DPO design such as macro-fiscal frameworks, as shown in the
accompanying report on macro-fiscal frameworks. They often show better
Independent Evaluation Group (IEG) ratings. There is a “virtuous circle,” from
27
5. CONCLUSIONS
knowledge informing the design of lending, and lending based on knowledge
producing results.
Fourth, more broadly, good practice DPOs in terms of the integration of PER
and DPO knowledge, tend to be situated in an environment of long-term Bank
engagement and continuous, high-quality policy dialogue (knowledge and
lending) based on a relationship of trust where there are no taboo topics for
policy dialogue. Sound PERs with candid recommendations hitting clearly on
important issues stand a better chance of informing DPO and policy reform.
MTEF, budgeting, and PFM issues tend to be some of the common areas in
which PERs substantially informed DPOs, but the policy areas cover the entire
spectrum of governance and other thematic areas. However, even in cases of
long-term engagement and solid initial integration between knowledge and
DPO design, problems with political economy, ownership of reform and
shifting policy priorities can undermine impact (as in the case of Vietnam).
Fifth, examples of missed opportunities in integrating PER knowledge with
DPOs sometimes reflect breaks in institutional memory in the Bank and the
government, as well as breaks in the policy dialogue which can come about for
many reasons (passage of time between the PER and the DPO, changes in staff
on the Bank and the client side, changes in government and political priorities,
etc.). One lesson here is that the Bank should pay greater attention to DPO-led
reengagements with countries, and new DPOs after a longer period of no core
diagnostics on public expenditures or prior dialogue and DPOs, and ensure that
all relevant Bank knowledge fully informs those DPOs.
Sixth, there appears to be a potential knowledge gap and an opportunity for the
Bank to intensify knowledge engagement on public expenditures at subnational
levels, both as part of the knowledge and policy dialogue and as a contribution
to future DPO development. This will vary by country depending on the policy
spcace to engage national authorities on subnational reform.
Finally, in follow up to this learning product, which is focused on the limited
questions around the integration of knowledge and DPOs, there is a need for a
systematic analysis of the quality of the Bank’s AAA knowledge products. An
evaluation of the public expenditure reviews, in particular, would potentially
shed further light on how the Bank can continue improving the quality,
relevance, and integration of its knowledge products.
28
References
Deininger, Klaus & Squire, Lyn & Basu, Swati (1998). "Does Economic Analysis Improve the Quality of
Foreign Assistance?," World Bank Economic Review, World Bank Group, vol. 12(3), 385-418,
September.
Deolalikar, Anil B. (2008). “Lessons from the World Bank Public Expenditure Reviews, 2000 -07, for
improving the effectiveness of public spending,” Transparency and Accountability Project (TAP),
Brookings Institution, Washington D.C.
Fardoust, Shahrokh and Ann Elizabeth Flanagan (2013). “Quality of Knowledge and Quality of Financial
Assistance: Quantitative Assessment of the World Bank Experience in 2000-06,” unpublished
draft paper (May).
IEG (2008). Using Knowledge to Improve Development Effectiveness, An Evaluation of World Bank
Economic and Sector Work and Technical Assistance, 2000-06, IEG/World Bank, Washington
D.C.
IEG (2010). World Bank Economic Reports on Growth Diagnostics in Four African Countries: Ghana,
Nigeria, Mauritius, and Uganda, Performance Assessment Report (June).
IEG (2011). World Bank Support for Revenue Policy Reform in Eastern Europe and Central Asia with
Performance Assessment Reports of ESW in Georgia, Kazakhstan and Kyrgyz Republic, IEG.
IEG (2015). “The Quality of Macro-Fiscal Frameworks in Development Policy Operations,” IEG learning
product, Independent Evaluation Group, The World Bank, Washington D.C. (May).
IEG PPAR (2015a). Vietnam: Project Performance Assessment Report of PRSC6-10, IEG (May).
IEG PPAR (2015b). Uganda: Project Performance Assessment Report of PRSC5-7 and PRSC8-9 series, IEG
(May).
Ravallion, Martin (2011). “Knowledgeable Bankers? The Demand for Research in World Bank Operations,
Policy Research Working Paper 5892, World Bank, (December).
29
APPENDIX A
COUNTRIES IN WHICH DPOS WERE PRECEDED BY A PER HEADING
Appendix A. Countries in which DPOs were
preceded by a PER
Region Country Year Project Name Proj ID Commitment (US$
million)
AFR Benin 2007 BJ-PRSC 3 P083313 30
BJ-PRSC 4 (New Series) (FY07) P096928 40
2005 BJ-PRSC II P074313 30
Burkina Faso 2012 BF - EFA/FTI Grant (3rd tranche) P127166 35
2006 BF-PRSC 6 P078996 60
2005 BF-PRSC 5 DPL (FY05) P078995 60
Burundi 2010 BI - ERSGIII-Dev. Policy Loan DPL3 P113235 25
2009 BI - Food Crisis Response DP Grant P113438 10
BI- ERSG II DPL (FY09) P102508 30
Cabo Verde 2009 CV-PRSC 4 -DPL P106502 10
2007 CV-PRSC 3 (last of 1st series) P100807 10
2006 CV-PRSC 2 (FY06) P090875 10
Central African 2011 CAR: EMGRG III DPO IV (FY11) P120534 8.8
Republic
2009 CAR: EMGRG II - DPO III (FY09) P113176 5
2008 CAR: EMGRG 1 - DPO II (FY08) P106458 7.9
Congo, Dem. 2006 DRC - Transitional Support Credit (DPL) P091990 90
Rep.
Cote d'Ivoire 2012 CI-Post-conflict Reconst. & Recov. Grant P122800 150
2010 CI-EGRG-Econ. Gov. & Recovery 3 P117281 90
2009 Governance & Recovery Grant II P112368 150
2008 Econ. Governance& Recovery Grant P083583 308
Ethiopia 2005 ET-PRSC 2 DPL (FY05) P077749 130
2004 ET-PRSC 1 (FY04) P074014 120
Gambia, The 2009 GM-Budget Support -DPL P107398 7
Ghana 2010 GH:Natural Resources Env Governance P118188 10
DPO3
2009 GH-EGPRC (fast-track) P113301 300
GH-NREG DPO P113172 10
2008 GH-Environmental Governance (FY07) P102971 20
GH-PRSC 6 DPL (FY08) P103631 100
2007 GH-PRSC 5 DPL (FY07) P099287 110
2006 GH-PRSC 3 DPL (FY06) P078619 125
GH-PRSC 4- DPL P095730 140
2005 GH-PRSC 2 DPL (FY05) P083246 125
Guinea-Bissau 2011 Third Economic Governance Reform EGRG P123685 6.4
3
2010 GW-Econ. Gov. Ref. Grant - EGRG II P114937 6
2009 GW-Economic Governance DPL1 P107493 8
Liberia 2009 LR - RRSP2-Budget Support P113450 4
Madagascar 2008 MG-PRSC 4 - 1st of New Series (FY08) P099420 40
MG-PRSC 5 (FY08) DPL P105135 50
31
APPENDIX A
COUNTRIES IN WHICH DPOS WERE PRECEDED BY A PER
2007 MG-PRSC III DPL (FY07) P096102 40
2006 MG-PRSC 2 DPL (FY06) P083326 80
2005 MG-PRSC 1 DPL (FY05)/ P070999 125
Malawi 2013 Malawi - Rapid Response DPG P126155 50
2010 MW-PRSC 3 P117238 54
2009 MW - PRSC 2 P107303 30
2008 MW-PRSC-1 P099313 20
2004 MW-FIMAG SAL (FY04) P072395 50
Mali 2011 ML-PRSC 5 - DPL P122483 70
2010 ML-PRSC 4 - DPL P117270 70.5
2009 Mali - PRSC-3 P113451 65
2008 ML-PRSC 2 (FY08) P103466 42
Mauritius 2008 MU-Dev.Pol.Loan (intermediate) P106650 30
2007 MU-Development Policy DPL (FY07) P101570 30
Mozambique 2012 Moz PRSC VIII P126226 110
2011 MZ-PRSC 7 (second in series) P122470 85
2010 MZ-PRSC 6 (first in new series) P117234 110
2007 MZ-PRSC 3 DPL (07) - 1st in new series P083459 70
2006 MZ-PRSC 2 (FY06) P056201 120
2005 MZ-PRSC (FY05) P075805 60
Namibia 2009 NA-Support of ETSIP1 DPL2 (FY09) P109333 7.5
2007 NA-Education & Training DPL (FY07) P086875 7.5
Niger 2007 NE-Rural & Social Policy DPL 2 (FY07) P098963 50
2006 NE-Rural & Social Policy Reform I (FY06) P096411 50
2005 NE-Pub Expend Reform Crdt (FY05) P083275 40
2004 NE - PEAC II - (Pub.Exp.Adj.Cr.) P069570 65
Nigeria 2010 Fin Sec + Pub Fin Mgmt DPC P117088 500
Rwanda 2010 RW:EFA-FTI Catalytic Fund Bridge Grant P115816 35
2007 RW-PRSG III DPL (FY07) P098129 50
2006 RW-PRSC 2 DPL (FY06) P092944 55
2005 RW-PRSC 1 DPL (FY05) P085192 65
Senegal 2009 SN-DPO fast-track-Public Fin. Support Cr P107288 60
2008 SN-En. Sec. Recov. Dev Policy Financing P105279 80
2007 SN-PRSC III DPL (FY07) P098964 20
2006 SN-PRSC 2 (FY06) P091051 30
2005 SN-PRSC 1 DPL (FY05) P074065 30
2004 SN-Priv Sec Adj Crdt (FY04) P080013 45
Seychelles 2011 SC-DPL 2 P120947 9
2010 SC DPL P114822 9
Sierra Leone 2010 SL:GRGC-3 Suppl.Credit (Crisis Window) P121056 7
SL-GRG 3 DPL P107335 10
2007 SL-GRGG (DPG 1)-Programmatic Series P095575 10
2005 SL-ERRG 4 (FY05) P083477 15
Tanzania 2011 TZ-PRSC 8 (5th and last in 2nd series) P116666 115
2009 TZ-PRSC 6 (3rd of 2nd series) P101229 160
TZ-PRSC 7 (4th in 2nd series) P101230 190
2007 TZ-PRSC 5 (2nd of 2nd series) P095657 190
2006 TZ-PRSC 3 (last) P087256 150
32
APPENDIX A
COUNTRIES IN WHICH DPOS WERE PRECEDED BY A PER
TZ-PRSC 4 DPL (1st of 2nd series) P095509 200
2005 TZ-PRSC2 (intermediate) P074073 150
2004 TZ-Education Dev. Program II (FY04) P083080 150
Uganda 2008 UG-PRSC 7 (FY08) P101231 200
2007 UG-PRSC 6 DPL (FY07) P090219 125
2006 UG- PRSC 5 P090881 135
2005 UG-PRSC 4 (FY05) P074082 150
2004 UG-PRSC 3 (FY04) P074081 150
Zambia 2012 Zambia PRSC-3 P126349 30
2011 ZM-PRSC 2 P117370 30
2010 ZM-First Poverty Reduction Support Cr. P107218 20
2008 ZM-Econ Mgmt & Growth Crdt 2 P074445 10
2005 ZM-Econ Mgmt & Growth Credit (FY05) P040631 40
EAP Cambodia 2010 KHSmallholder Ag & Social Protection Sup P117203 5
2008 KH-Poverty Reduction and Growth-1 (DPL) P071103 15
Indonesia 2011 ID - Fourth Infrastructure DPL (IDPL4) P118531 200
2010 ID - Third Infrastructure DPL (IDPL3) P115102 250
Indonesia Sixth Development Policy Loan P113638 750
2009 Fifth Development Policy Loan P110191 750
ID-Second Infrastructure DPL (IDPL 2) P111905 200
Public Expend. Supp. Facility (DPL-DDO) P115199 2000
2008 Fourth Development Policy Loan P105637 600
ID-Infrastructure DPL (IDPL) P107163 200
2007 Indonesia-Third Development Policy Loan P100327 600
2006 ID Second Development Policy Loan P096594 400
2005 First Development Policy Loan P092663 300
Lao PDR 2011 Lao PDR PRSO 7 P122847 10
2010 Lao PDR PRSO 5 P110109 20
Lao PDR PRSO 6 P118814 20
2008 Lao PDR PRSO4 P107242 10
2007 LA - PRSO III P096710 10
Mongolia 2011 Mongolia - Development Policy Credit 2 P117421 29.7
2009 MN-Development Policy Credit P115737 40
Philippines 2009 Philippines GFRP DPO ICR P113492 200
2007 PH- Development Policy Loan - DPL I P100706 250
Timor-Leste 2006 TP Consolidation Support Program (CSP) 1 P088181 0.5
2005 Third Transition Support Program P083894 4.96
2004 Transition Support Program II P082190 4
Vietnam 2009 VN - PRSC 8 P111164 350
2008 VN - PRSC 7 P105287 150
2007 Vietnam PRSC 6 P101724 175
VN - Program 135 Phase 2 Support Credit P104097 50
2006 VN-PRSC V P086361 100
2005 Vietnam - PRSC IV P086360 100
2004 Vietnam PRSC III P082759 100
ECA Albania 2011 Social Sector Reform DPL P116937 25
2007 DPL P096205 10
2005 PRSC 3 P083337 10
33
APPENDIX A
COUNTRIES IN WHICH DPOS WERE PRECEDED BY A PER
2004 PRSC 2 P077739 18
Armenia 2007 PRSC 3 P093460 28
2006 PRSC 2 P093459 20
2005 PRSC P078673 20
Azerbaijan 2005 PRSC P074938 20
Bosnia and 2010 Public Expenditure Crisis DPL P116951 111
Herzegovina
2004 EMSAC P071039 34
Bulgaria 2009 SIR DPL2 (DDO) P102160 150
SIR DPL3 P115400 200
2007 SIR DPL1 P094967 150
2005 PAL 3 P078675 150
2004 PAL 2 P081637 150
Croatia 2010 Fiscal, Social and Financial Sector DPL P117665 296.75
Georgia 2006 PRSO P088820 20
2004 REFORM SUPPORT P057814 24
Kazakhstan 2010 DPL P119856 1000
Latvia 2011 2nd Safey Net and Social Sector Reform P121796 142.08
2010 Financial Sector DPL (LATVIA) P115709 282.65
Safety Net & Soc. Sector Reform Program P115732 143.9
Macedonia, FYR 2010 Macedonia DPL 1 P116984 30
2008 PDPL 3 P101296 25
Moldova 2010 ECONOMIC RECOVERY DPO P112625 25
2008 PRSC 2 P103941 10
2007 PRSC P099166 10
Poland 2011 ENERGY EFFICIENCY DPL P115426 1114.5
2010 DPL 3 P117666 1331.3
2009 DEVELOPMENT POLICY LOAN P112765 1250
Empl. Entrepreneurship & HCDP DPL P116125 1300.24
Romania 2012 DPL 3 P122222 560.6
2011 DPL 2 P117667 380.5
2010 DPL 1 P102018 422.99
2005 PAL P008791 150
Russian 2005 KAZAN MUNICIPAL DEVT P082018 125
Federation
Serbia 2010 YF PFDPL 2 P115958 100
2009 PFDPL P096711 50
2006 PPFDPC1(SERBIA) P089116 55
2005 SAC 2 (SERBIA) P078457 45
Tajikistan 2009 PDPG 3 P106963 20
2008 PDPG 2 P096930 10
2007 TJ Prg. Development Policy Grant P074889 10
Turkey 2010 REGE DPL P112495 1300
2009 CEDPL 2 P096840 500
2008 PPDPL 2 P088837 400
2007 CEDPL P074181 500
2006 TR- PPDPL P071052 500
2004 PFPSAL 3 P082996 1000
Ukraine 2010 FIN REHAB DPL 1 P115143 400
34
APPENDIX A
COUNTRIES IN WHICH DPOS WERE PRECEDED BY A PER
2009 Ukraine DPL 3 P107365 500
2008 DPL 2 P096389 300
2006 DPL P079316 251.26
2004 PAL 2 P074972 250
LCR Argentina 2004 AR-Prov. Maternal-Child Hlth Adj P072637 750
PMCHSAL
Bolivia 2005 BO-Social Sector Programmatic Credit II P091365 15
2004 BO First Programmatic Bank and Corporate P082781 30
BO-Social Sector Programmatic Credit P087841 25
Colombia 2009 CO 3rd Sust. Dev DPL P101301 450
2008 CO 3rd Business Prod & Efficiency DDO P105029 550
2007 CO 2nd Business Product and Efficiency P095213 300
CO 2nd Sustainable Dev DPL P095877 200
CO- 3rd Prog.Labor and Social Sector P094097 200
2006 CO Business Product and Efficiency DPL I P094301 250
2005 CO- 2nd Prog. Labor & Social Sector Ref P082865 200
CO 2nd Programmatic FSAL P082597 100
CO Prog Dev Policy Ln for Sust. Dev P081397 150
CO Prog Fiscal and Institutional SAL III P084762 100
Costa Rica 2009 CR Pub Fin & Compet. DPL/ DDO P115173 500
Dominican 2005 DO Power Sector Program Loan P082712 150
Republic
2004 DO Social Crisis Response Adjustment Loa P085433 100
El Salvador 2011 SV Public Finance and Social Progress P122699 100
2010 SV Sustaining Social Gains P118036 100
2005 SV (CRL2) Program. Broad-Based Growth P093133 100
DP
Guyana 2006 GY Poverty Reduction and Public Mgmt. P078703 9.6
Haiti 2011 HT- Emergency DPO P118239 30
2010 HT 3rd Econ. Governance Reform P117944 12.5
Operation
Honduras 2012 HN 1st Progr. Reduc. Vulner. Growth DPC P127331 86
2011 HN Emergency Recovery Dev Policy Credit P121220 74.7
2005 HN First Prog Fin Sec Dev Pol Credit P083311 25
2004 HN PRSC P074758 58.8
Jamaica 2009 JM Fiscal & Debt Sust. DPL P101321 100
Mexico 2011 MX MEDEC Low-Carbon DPL P121800 401.002507
MX Strength. Business Env for EcoGrowth P112264 751.8797
2010 MX DPL Adapt. Climate Change in WtrSct P120134 450
MX Economic Policies DPL P118070 1503.75
MX Framework for Green Growth DPL P115608 1503.75
2009 MX Environmental Sustainability DPL P095510 300.75188
2008 MX Affordable Housing DPL III P101342 200.51
MX Climate Change DPL/DDO P110849 501.25
2006 MX Aff. Housing & Urban Pov. Red. DPL II P089852 200.51
MX Competitiveness DPL P098299 300.76
MX ENVDPL II P079748 200.51
MX Finance and Growth DPL I P097159 501.26
2004 MX Afford.Housing & Urb.Pov.Prog. SECAL P070371 100
35
APPENDIX A
COUNTRIES IN WHICH DPOS WERE PRECEDED BY A PER
Nicaragua 2009 NI Development Policy Credit P106747 20
2004 NICARAGUA PRSC I P082885 70
Paraguay 2009 PY Public Sector DPL P113457 100
Peru 2011 PE 4th Prog. Fiscal Mgmt DPL P116214 100
2010 PE 3rd Prog Fiscal Mgmt DPL P106720 150
2006 PE Third Progr. Decentral. & Compet. DPL P089826 150
2005 PE PROGRAMATIC REFORM FOR P083949 100
GROWTH II
PE-Programmatic Social Reform Loan IV P083968 100
2004 PE Program. Decent. & Competitiveness P082871 150
PE-Programmatic Social Reform III P078951 150
Uruguay 2005 Uruguay Social Program Support Loan DPL P095028 75.38
MNA Djibouti 2008 Djibouti - Food Crisis Response Dev. P112017 5
Egypt, Arab Rep. 2010 Financial Sector DPL III P120470 500
Lebanon 2008 LB - Reform Implementation DPL P094288 100
West Bank and 2011 WBG:PRDP Support III P118593 40
Gaza
2009 WBG PRDP Support II P113621 40
2008 WBG PRDP Support P111078 40
Yemen, Rep. 2008 RY-INSTITUTIONAL REFORM DPG P101453 50.93
SAR Bangladesh 2007 BD DSC IV/DPL P074801 200
BD Railway Reform Programmatic P100330 40
DevPolicy
Education Sector Dev.Support Credit III P102541 100
2006 Bangladesh Development Support Cr. III P090832 200
Education Sector Dev. Support Credit II P084567 100
2005 Development Support Credit II P083887 200
Education Sector Dev. Support Credit P077789 100
Nepal 2004 Poverty Reduction Support Credit I P074685 70
Pakistan 2007 NWFP Second Development Policy Credit P097471 130
PEDPC-IV P101243 100
PK PRSC II P090690 350
Punjab Irrig DPL II P102333 100
Sindh DPC P100846 100
2006 NWFP DPC I P090689 90
PK Punjab Education DPC-III P097636 100
PK -Punjab Second Education Sector DPC P090346 100
PK Punjab-Irrigation Sector DPL P096962 100
2005 Pakistan PRSC I P078806 300
PK Banking Sector Dev. Policy Credit P083079 300
2004 NWFP SAC II P079635 90
Punjab Education Sector Adjustment Credi P083228 100
36
APPENDIX B
LIST OF PUBLIC EXPENDITURE KNOWLEDGE PRODUCTS
Appendix B. List of public expenditure knowledge
products
Note, if reports consists of various volumes, only volume one is presented.
Region Country Year Document Name Report
Number
SAR Afghanistan 2010 Afghanistan - Country overview and role of public expenditure 72359
Afghanistan - Education sector 72364
Afghanistan - Expenditure framework and public financial 72361
management
Afghanistan - Public expenditure review 2010 : second generation 53892
of public expenditure reforms
Afghanistan - Public expenditure trends and fiscal sustainability 72360
Afghanistan - Security Sector 72362
Bangladesh 2010 Main Report 47767
2003 Bangladesh - Public expenditure review 24370
Bhutan 2013 Bhutan - Human development public expenditure review ACS2873
Maldives 2002 Maldives - Public expenditure review 24238
Nepal 2011 Nepal : Public expenditure review - Roads 66303
2000 Main Report 20211
Pakistan 2013 Pakistan - Punjab social sector public expenditure review 78748
2013 Pakistan - Khyber Pakhtunkhwa : public expenditure review 77337
2004 Strategic issues and reform agenda 25665
2001 Pakistan - Reforming Punjab's public finances and institutions 20981
Sri Lanka 2014 Investing in the Future : Education expenditures and financing in AUS3408
Sri Lanka
2014 Sri Lanka - Health PER : investing in Sri Lanka’s health system AUS2874
2006 Sri Lanka - Selected public expenditure issues 2003/2004 36630
AFR Africa 2013 Guinea - Basic agricultural public expenditure diagnostic review 89509
(2003-2012) : main report
Malawi - Basic agricultural public expenditure diagnostic review 89511
(2000-2013) : final report
2013 Senegal - Basic agricultural public expenditure diagnostic review : 89512
final report
2013 Strengthening national comprehensive agricultural public 83163
expenditure in Sub-Saharan Africa : basic agricultural public
expenditure diagnostic review - Ghana
2013 Burkina Faso - Basic agricultural public expenditure diagnostic 90813
review (2004-2012) : main report
2012 Togo - Basic agricultural public expenditure diagnostic review 73138
2011 More, better, or different spending? Trends in public expenditure 67321
on water and sanitation in Sub-Saharan Africa
2011 Sierra Leone - Public expenditure review for water and sanitation 64895
2002 to 2009
Angola 2007 Policy briefing 39710
37
APPENDIX B
LIST OF PUBLIC EXPENDITURE KNOWLEDGE PRODUCTS
Angola;Chad 2005 Angola - Public Expenditure Management and Financial 29036
Accountability
Benin 2004 Benin - Enhancing the effectiveness of public spending - a review 29656
of three sectors
Botswana 2010 Botswana - Public expenditure review 53959
Burkina Faso 2008 Burkina Faso - Rural water and sanitation sector : public 43912
expenditures review
2005 Burkina Faso - The budget as centerpiece of PRSP 29154
implementation - Public Expenditure Review
Burundi 2013 Burundi - Public expenditure review : strengthening fiscal ACS5393
resilience to promote government effectiveness
2012 Burundi - Public expenditure review : fiscal challenges, security ACS3988
and growth issues in Burundi
2010 Burundi - Improving the efficiency of public investment : public 56716
expenditure review
2008 Republic of Burundi - Public Expenditure Management and 42160
Financial Accountability Review (PEMFAR) : improving allocative
efficiency and governance of public expenditure and investing in
public capital to accelerate growth and reduce poverty
Cabo Verde 2009 Synthesis 44350
2006 Cape Verde - The challenge of increasing fiscal space to meet 34523
future pressures : public expenditure review
Cameroon 2010 Cameroon - Fiscal policy for growth and development 48433
Central African 2012 Central African Republic - Public expenditure review (PER) : 63517
Republic creating fiscal space to transition out of fragility through growth
and poverty reduction
Central African 2008 Zambia - Making basic education services more effective in 54500
Republic;Zambia Zambia : improving delivery, tracking school level expenditures
Chad 2011 Republic of Chad public expenditure review update : using public 57654
resources for economic growth and poverty reduction
Congo, Dem. 2008 Congo, Democratic Republic of - Public expenditure review (PER) 42167
Rep.
2006 Executive summary 34937
Congo, Rep. 2014 Republic of Congo - Enhancing efficiency in education and health AUS5649
public spending for improved quality service delivery for all : a
public expenditure review of the education and health sectors
Cote d'Ivoire 2008 Main Report 44429
2003 Cote d' Ivoire - Strengthening public expenditure management and 27141
controls : public expenditure review
Eastern Africa 2010 Enabling reforms : a stakeholder-based analysis of the political 74548
economy of Tanzania's charcoal sector and the poverty and social
impacts of proposed reforms
Equatorial 2010 Equatorial Guinea : public expenditure review 51656
Guinea
Eritrea 2008 Eritrea - Health and education sectors : public expenditure review 38698
Ethiopia 2010 Ethiopia - Public finance review 2010 54952
2010 Addis Ababa city : public expenditure review 67926
2010 Benishangul-Gumuz Regional State : Public finance review 67928
2010 Oromia region study case : public finance review 67929
The Amhara regional report : public finance review 67927
2009 Ethiopia - Public finance review 50278
38
APPENDIX B
LIST OF PUBLIC EXPENDITURE KNOWLEDGE PRODUCTS
2008 Ethiopia - Agriculture and rural development : public expenditure 41902
review for 1997-98 and 2005-06
2004 Public spending in the social sectors 29338
2001 Main Report 23351
2000 Main Report 20810
Gabon 2012 Gabon - Public expenditure review : better management of public 62548
finance to achieve millennium development goals
Gambia, The 2011 The Gambia - 2010 public expenditure review update 59309
2006 Gambia - Fiscal developments and the agriculture sector : public 67703
expenditure review update
2005 The Gambia - Recovering Fiscal Discipline - Public Expenditure 31454
Review
Ghana 2011 Ghana - Joint review of public expenditure and financial 67466
management
2009 Main Report 47639
2008 Main Report 40676
2008 Ghana - Rural water and sanitation sector : public expenditures 43909
review
2006 Main Report 36384
2005 Main Report 32595
2000 Ghana - Public expenditure review 1999 : improving education 59491
through increased, efficient, and effective utilization of resources
Guinea 2004 Guinea - Strengthening public expenditure management for 27347
poverty reduction and growth : public expenditure review
Guinea-Bissau 2007 Guinea-Bissau - Public expenditure review (PER) update : 35871
enhancing growth and fiscal adjustment through civil service
reform
2004 Guinea Bissau - The challenge of restoring budgetary discipline - a 27175
public expenditure review
Kenya 2013 Kenya - Comprehensive public expenditure review 2013 : eye on 82678
budget - spending for results
2005 Kenya - Public Expenditure Review 2004 - Report on the structure 29421
and management of public spending
2001 Kenya - Review of the water supply and sanitation sector 22182
Lesotho 2014 Lesotho - Public expenditure review 71973
Liberia 2013 Liberia - Public expenditure review : options for fiscal space 75049
enlargement
2013 Liberia - Public expenditure review note : meeting the challenges 71009
of the UNMIL security transition
Strengthening national comprehensive agricultural public 83165
expenditure in Sub-Saharan Africa : agriculture sector public
expenditure review - Liberia
2012 Liberia - Public expenditure review : human development 70980
2009 Liberia - 2008 public expenditure management and financial 43282
accountability review
Madagascar 2007 Executive summary 38687
2005 Madagascar - Public Expenditure Review (PER) 2004 - The 30331
challenge of poverty reduction
Malawi 2013 Malawi - Public expenditure review 79865
89185
2007 Malawi - Public expenditure review 2006 40145
39
APPENDIX B
LIST OF PUBLIC EXPENDITURE KNOWLEDGE PRODUCTS
2001 Malawi - Public expenditures - issues and options 22440
Mali 2008 Mali - Rural water and sanitation sector : public expenditures 43911
review
Mauritania 2011 Mauritania - Public expenditure review : update 62082
2007 Mauritania - Improving budget management to promote 36385
sustainable development and reduce poverty : public expenditure
review
Mauritius 2013 Mauritius policy notes : building analytical capacity to raise public 77778
sector efficiency
2004 Mauritius - The New Economic Agenda and Fiscal Sustainability 26152
Mozambique 2011 Mozambique - Analysis of public expenditure in agriculture 59918
2010 Mozambique - Public expenditure review for the water sector 54692
2003 Mozambique - Public expenditure review : Phase 2 - sectoral 25969
expenditures
2001 Mozambique - Public expenditure management review 22985
Namibia 2008 Namibia - Implementing the agenda of the Namibian ministry of 42472
environment and tourism : a rapid country environmental analysis
with a public expenditure review for aligning policy, institutional
and financing priorities
2005 Namibia human capital and knowledge development for economic 59166
growth with equity
Niger 2014 Niger - Security sector public expenditure review 83526
2013 Niger - Public Expenditure Review (PER) 2012 76851
2009 Main Report 48234
2004 Niger - Public Expenditure Management and Financial 29752
Accountability Review
Nigeria 2011 Nigeria - State level public expenditure management and financial 67934
accountability review : a synthesis report (Anambra, Bayelsa, Ekiti,
Kogi, Niger, Ondo, and Plateau)
2010 Nigeria - Lagos rolling first public expenditure review 67936
2008 Nigeria - Agriculture public expenditure review 44000
2008 Executive summary 42418
2006 Nigeria - Strengthening the Nigerian forestry sector to enable 32406
sustainable forestry and revenue generation in productive forests
Rwanda 2010 Rwanda - Technical assistance for public expenditure 54811
management : a policy note
2003 Rwanda - Public expenditure reform for sustaining poverty 25914
reduction : a public expenditure management review
Senegal 2005 Senegal - Enhancing the efficiency of public investmnet - Public 32479
Expenditure Review (PER)
2004 Senegal - Public expenditure review 29357
Seychelles 2014 Seychelles - Programmatic public expenditure review policy notes 85290
- health education and investment management
2011 Seychelles selected issues : social protection, labor market, and 57113
public enterprise reforms - second public expenditure review
2009 Seychelles - Public expenditure review 49273
Sierra Leone 2010 Sierra Leone - Public expenditure review 52817
2004 Sierra Leone - Public expenditure review : from post-conflict 29075
recovery to sustained growth
South Africa 2012 Health expenditure and finance in South Africa 69890
40
APPENDIX B
LIST OF PUBLIC EXPENDITURE KNOWLEDGE PRODUCTS
Sudan 2014 Sudan - State-level public expenditure review : meeting the ACS8803
challenges of poverty reduction and basic service delivery
2011 Sudan - Public Expenditure Tracking Survey (PETS) : case study 67712
of the health sector
2011 Public Expenditure Tracking Survey (PETS) for Northern Sudan : 67937
case study of the health sector
2009 Sudan - GoNU budget note series : World Bank review of 2008 67933
budget performance and 2009 budget preliminary analysis
2007 Sudan - Public expenditure review : synthesis report 41840
Swaziland 2006 Main Report 35318
2000 Swaziland - Reducing poverty through shared growth 19658
Tanzania 2014 Tanzania - Strengthening national comprehensive agricultural 87819
public expenditure in Sub-Saharan Africa : national agricultural
input voucher scheme (NAIVS)
2012 Rapid budget analysis 2012 : synoptic note 89141
2012 United Republic of Tanzania - Public expenditure review 2011 72119
2011 United Republic of Tanzania - Public expenditure review 2010 64585
2010 United Republic of Tanzania - Public expenditure and financial 56313
accountability review 2009
2009 Tanzania - Public expenditure review of the water sector 50905
2009 Tanzania - Public expenditure and financial accountability review 48042
2008
2007 United Republic of Tanzania - Public expenditure and financial 67931
accountability review for FY07
2006 Tanzania - Public Expenditure and Financial Accountability Review 36642
: FY05
2004 Public expenditure review for FY04 67930
2003 Tanzania - Public Expenditure Review FY03 - Managing public 26807
expenditures for poverty reduction report on fiscal developments
and public expenditure management issues
Tanzania - Zanzibar Public Expenditure Review 2003 - Laying the 27504
foundations for improved public expenditure management
2002 Tanzania - Public expenditure review FY02 - report on fiscal 24475
developments and public expenditure management issues : an
external evaluation
2001 Tanzania - Public expenditure review 23812
2001 Main Report 22078
Uganda 2013 Service delivery with more districts in Uganda : fiscal challenges ACS4421
and opportunities for reforms - public expenditure review
2010 Uganda - Strengthening the effectiveness of the Public Investment 58565
Program : public expenditure review
2010 Uganda - Agriculture public expenditure review 53702
53704
2010 Uganda - Public expenditure review : strengthening the impact of 55672
the roads budget
2009 Uganda - A public expenditure review 2008 : with a focus on 49361
affordability of pay reform and health sector
2008 Uganda - Sustainable Land Management Public Expenditure 45781
Review (SLM PER)
2007 Executive summary 40161
2004 Main Report 29377
41
APPENDIX B
LIST OF PUBLIC EXPENDITURE KNOWLEDGE PRODUCTS
2003 Uganda - Public expenditure review 2003 27135
2001 The budget and medium-term expenditure framework in Uganda 23439
Zambia 2012 Zambia - Public expenditure review : resource allocations and 67935
financial flows in the water sector in Zambia
2010 Zambia - Impact assessment of the fertilizer support program : 54864
analysis of effectiveness and efficiency
2009 Zambia health sector public expenditure review : accounting for 47110
resources to improve effective service coverage
2006 Executive summary and main report 36552
2002 The impact of cash budgets on poverty reduction in Zambia : a 68547
case study of the conflict between well-intentioned macroeconomic
policy and service delivery to the poor
2001 Zambia - Public expenditure review : public expenditure, growth 22543
and poverty - a synthesis
ECA Albania 2014 Toward a sustainable fiscal policy for growth 82013
2008 Albania - Local finance policy note : programmatic public 44109
expenditure and institutional review
2006 Overview and policy options 36453
2001 Executive summary 21857
Armenia 2014 Armenia - Public expenditure review : expanding the fiscal 88586
envelope
2012 Fiscal consolidation and recovery in Armenia : impact of the global 72880
crisis on a small open economy
2011 Synthesis report 62587
2010 Armenia - The 2008-09 global economic crisis, policy responses, 55011
and household coping strategies
2003 Armenia - Public expenditure review 24434
Azerbaijan 2013 Azerbaijan - Food security and livelihoods : public expenditure 78836
review
Azerbaijan - Healthy development improving outcomes in the 78834
health sector : public expenditure review
Azerbaijan - The oil nexus : public expenditure review 78835
2003 Azerbaijan - Public expenditure review 25233
Belarus 2013 Belarus - Public expenditure review : enhancing public services in 74148
times of austerity
2011 Belarus public expenditure review : fiscal reforms for a sustainable 63566
economic recovery
2003 Belarus - Strengthening public resource management 26041
Bosnia and 2012 Bosnia and Herzegovina - Challenges and directions for reform : a 66253
Herzegovina public expenditure and institutional review
2006 Bosnia and Herzegovina - Addressing fiscal challenges and 36156
enhancing growth prospects : a public expenditure and institutional
review
2002 Bosnia and Herzegovina - From aid dependency to fiscal self- 24297
reliance : a public expenditure and institutional review
Bulgaria 2012 Bulgaria - Public expenditures for growth and competitiveness 62774
2010 Bulgaria - Public expenditure review for agriculture and rural 54903
development
2008 Bulgaria - Resourcing the judiciary for performance and 42159
accountability : a judicial public expenditure and institutional review
2007 Overview 38570
42
APPENDIX B
LIST OF PUBLIC EXPENDITURE KNOWLEDGE PRODUCTS
2006 Bulgaria - Public Finance Policy Review 33992
2002 Bulgaria - Public expenditure issues and directions for reform - a 23979
Public Expenditure and Institutional Review
Croatia 2014 Croatia - Justice sector public expenditure and institutional review : ACS7424
resourcing the justice sector for efficiency and performance
Croatia - Public finance review : restructuring spending for stability 78320
and growth
2008 Croatia - Restructuring public finance to sustain growth and 37321
improve public services : a public finance review
2001 Croatia - Regaining fiscal sustainability and enhancing 22155
effectiveness - a public expenditure and institutional review
Czech Republic 2001 Czech Republic - Enhancing the prospects for growth with fiscal 22114
stability - a public expenditure review
Georgia 2014 Strategic issues and reform agenda 78143
2012 Georgia - Managing expenditure pressures for sustainability and 73701
growth : public expenditure review
Georgia - Public expenditure review : managing expenditure 74474
pressures for sustainability and growth
2002 Georgia - Public expenditure review 22913
Kazakhstan 2006 Kazakhstan - Reforming intergovernmental fiscal relations 33709
2000 Summary report 20489
Kosovo 2010 Kosovo - Public expenditure review 53709
2007 Kosovo - Policy note on public investment management 68419
2006 Overall fiscal situation 32624
Kyrgyz Republic 2014 Kyrgyz Republic - Public expenditure review policy notes : 88978
education
Kyrgyz Republic - Public expenditure review policy notes : health 88979
Kyrgyz Republic - Public expenditure review policy notes : 88975
intergovernmental fiscal relations
Kyrgyz Republic - Public expenditure review policy notes : 89007
pensions
Kyrgyz Republic - Public expenditure review policy notes : public 89008
investment management
Kyrgyz Republic - Public expenditure review policy notes : public 88976
wage bill
Kyrgyz Republic - Public expenditure review policy notes : social 89022
assistance
Kyrgyz Republic - Public expenditure review policy notes : 88977
strategic setting
2004 Main Report 28123
Latvia 2010 Overview and summary 56747
2002 Latvia - Public expenditure review 22392
2001 Latvia - Public expenditures review : education sector 73011
Macedonia, FYR 2008 Macedonia - FYR Macedonia public expenditure review 42155
Moldova 2014 Moldova - Public expenditure review : reforming local public 87268
finance for more efficient, equitable, and fiscally sustainable
subnational spending
2013 Moldova - Public expenditure review : capital expenditures - 76310
making public investment work for competitiveness and inclusive
growth in Moldova
82138
43
APPENDIX B
LIST OF PUBLIC EXPENDITURE KNOWLEDGE PRODUCTS
2007 Moldova - Improving public expenditure efficiency for growth and 37933
poverty reduction
2003 Moldova - Public Economic Management Review 25423
Montenegro 2012 Montenegro - After the crisis : towards a smaller and more efficient 65909
government - public expenditure and institutional review
2008 Public expenditure and institutional review 46660
2006 Main Report 36533
Poland 2010 Poland - Mazowieckie public expenditure review : Local responses 52037
to the global economic crisis
2010 Analysis of social sectors and public wages 52536
2009 Better financing : stronger outcomes - a public sector expenditure 57305
review for the education sector in Poland
2003 Poland - Toward a fiscal framework for growth - a public 25033
expenditure and institutional review
Romania 2010 Main Report 51191
2009 Romania - Public sector pay practices Romania : overall public 47755
sector trends and detailed analysis of local government contract
employees
2006 Main Report 36363
2002 Romania - Building institutions for public expenditure management 24756
: reforms, efficiency and equity - a Public Expenditure and
Institutions Review
Russian 2011 Russia - Public expenditure review 58836
Federation
2011 Russian federation : social expenditure and fiscal federalism in 54392
Russia
2009 Russia environmental management system : directions for 51068
modernization
2008 Public spending in Russia for health care : issues and options 45127
2006 Russian Federation - Enhancing the impact of public support to 39213
agriculture and rural sectors
2005 Russia - Fiscal costs of structural reforms 30741
2001 Russia - towards improving the efficiency of public investment 22693
expenditures
2000 Russia : issues in public expenditure policy 67932
Serbia 2014 Serbia - Municipal public finance review : options for efficiency 87944
gains
2013 Serbia - Municipal finance and expenditure review 76855
2010 Serbia - Right-sizing the government wage bill 54056
2009 Serbia - Doing more with less : addressing the fiscal crisis by 48620
increasing public sector productivity
2008 Serbia : decentralization and local service delivery 42154
2003 Executive summary 23689
South Eastern 2010 Western Balkans - Public investment management study : main 53768
Europe and report
Balkans
2007 Public expenditure policies in Southeast Europe 33400
Tajikistan 2014 Capital expenditures and public investment management 89184
Fiscal risks from state-owned enterprises 89183
Key issues in public finance management 88050
44
APPENDIX B
LIST OF PUBLIC EXPENDITURE KNOWLEDGE PRODUCTS
Tajikistan - Programmatic public expenditure review : capital 88052
expenditures and public investment management
Tajikistan - Programmatic public expenditure review : fiscal risks 88051
from state-owned enterprises
2013 Government expenditures : size, composition and trends 77607
Review of public expenditures on education 89182
Review of public expenditures on health 89181
2012 Main Report 68418
2008 Synthesis note 43261
2008 Main Report 43280
2007 Tajikistan - Programmatic public expenditure review 39771
2005 Tajikistan : Public expenditure and institutional review 34891
Turkey 2014 Turkey - Public finance review : Turkey in transition - time for a 85104
fiscal policy pivot?
2012 Turkey - Transport sector expenditure review : synthesis report 62581
2006 Turkey - Public expenditure review 36764
2001 Turkey - Public expenditure and institutional review - reforming 22530
budgetary institutions for effective government
2001 Turkey - Forestry Sector Review 22458
Ukraine 2008 Ukraine - Improving intergovernmental fiscal relations and public 42450
health and education expenditure policy : selected issues
2006 Ukraine - Creating fiscal space for growth 36671
2003 Ukraine - Financing the environment : Ukraine's road to effective 68417
environmental management
2002 Ukraine - Review of the budget process : a public expenditure and 23356
institutional review
2001 Main Report 22677
Uzbekistan 2005 Uzbekistan - Public Expenditure Review 31014
Yemen, Rep. 2002 Macedonia - Public expenditure and institutional review 23349
MNA Algeria 2007 Main Report 36270
2002 Main Report 22591
Djibouti 2006 Djibouti - Public Expenditure Review (PER) - making public 34624
finances work for growth and poverty reduction
Egypt, Arab 2014 Egypt - Medium-term macro-fiscal framework and debt 89840
Rep. sustainability
2012 Main Report 71249
2010 Infrastructure and economic growth in Egypt WPS5177
2009 Egypt - Linking funding to outputs : expenditures of the Ministry of 47547
Agriculture and Land Reclamation
Iran, Islamic 2005 Iran - Report on public financial management, procurement, and 34777
Republic of expenditure systems in Iran
2005 Islamic Republic of Iran - Transport sector review and strategy 34600
note
Jordan 2012 Hashemite kingdom of Jordan options for immediate fiscal 71979
adjustment and longer term consolidation
Lebanon 2013 Lebanon - Economic and labor force impact of the change in the 79324
wage structure of the public sector
2010 Republic of Lebanon - Water sector : public expenditure review 52024
2008 Lebanon - Electricity sector public expenditure review 41421
45
APPENDIX B
LIST OF PUBLIC EXPENDITURE KNOWLEDGE PRODUCTS
2005 Lebanon - Public expenditure review : reform priorities for fiscal 32857
adjustment, growth and poverty alleviation
Libya 2009 Synthesis 45019
Middle East and 2014 A comprehensive review of the health financing systems in Jordan ACS9635
North Africa
West Bank and 2007 Summary 38207
Gaza
Yemen, Rep. 2006 Tracking basic education expenditure in Yemen : analyses of 38304
public resource management and teacher absenteeism
LAC Argentina 2003 Argentina - Reforming policies and institutions for efficiency and 25991
equity of public expenditures
Belize 2013 Belize - PPIAF SNTA municipal finance : report of RESP activity ACS3663
Bolivia 2011 Bolivia - Agriculture public expenditure review 59696
2004 Bolivia - Public expenditure management for fiscal sustainability 28519
and equitable and efficient public services
Brazil 2008 Different paths to student learning : good practices and student 43590
performance - identifying success from municipal school systems
in Brazil
2008 Main Report 40144
2007 Stylized facts and recommendations 36595
2007 Brazil - Governance in Brazil's unified health system : raising the 36601
quality of public spending and resource management
2002 Policy report 24413
2002 Main Report 22870
Colombia 2005 Colombia - Public expenditure review 25163
Costa Rica 2008 Costa Rica - Public expenditure review : enhancing the efficiency 40774
of expenditures
2002 Summary of issues and recommendations with executive 24300
summary
Dominica 2005 Dominica - OECS fiscal issues : policies to achieve fiscal 27467
sustainability and improve efficiency and equity of public
expenditures
Dominican 2004 Dominican Republic - Public Expenditure Review : reforming 23852
Republic institutions for a more efficient public expenditure management
Ecuador 2004 Main Report 28911
2000 Main document 19920
El Salvador 2010 Main Report 53500
2004 El Salvador - Public expenditure review 32856
Grenada 2004 Grenada - OECS fiscal issues : policies to achieve fiscal 28334
sustainability and improve efficiency and equity of public
expenditure
Guatemala 2013 Towards better expenditure quality : Guatemala public expenditure 78000
review
2012 Guatemala - Public expenditure review 67363
2000 Guatemala - Expenditure reform in a post-conflict country 19617
Guyana 2002 Guyana - Public expenditure review 20151
Haiti 2008 Haiti - Public Expenditure Management and Financial 40066
Accountability Review (PEMFAR) : improving efficiency of the
fiscal system and investing in public capital to accelerate growth
and reduce poverty
46
APPENDIX B
LIST OF PUBLIC EXPENDITURE KNOWLEDGE PRODUCTS
Honduras 2013 Public expenditures for decentralized governance in Honduras : 82662
towards restoring fiscal consolidation
2010 Main Report 64692
2007 Executive summary and main report 39251
2001 Honduras - Public expenditure management for poverty reduction 22070
and fiscal sustainability
Jamaica 2005 Jamaica - Fiscal consolidation for growth and poverty reduction - a 29546
Public Expenditure Review
Mexico 2012 Mexico - Social protection system in health and the transformation 76735
of state health systems
Mexico's social protection system in health and the financial 76734
protection of citizens without social security
2009 Mexico - Agriculture and rural development public expenditure 51902
review
2006 Mexico - Water public expenditure review 36942
2005 Mexico - Infrastructure public expenditure review (IPER) 33483
2004 Core report 27894
2003 Mexico - State-level public expenditure review : the case of 25162
Veracruz-Llave
Nicaragua 2010 Nicaragua - Selected issues in social sectors management : 71684
programmatic social NLTA implementation report
2008 Nicaragua - Public expenditure review 2001-2006 39807
2008 Nicaragua - Social protection public expenditure review 71687
2001 Nicaragua - Public expenditure review - improving the poverty 23095
focus of public spending
Paraguay 2013 the quest for optimal tax and expenditure policies for shared 78194
prosperity
2006 Paraguay - Public expenditure review : main report 32797
Peru 2012 Peru - Public Expenditure Review for Peru : spending for results 62586
2010 Peru - The decentralization process and its links with public 52885
expenditure efficiency
2002 Peru - Restoring fiscal discipline for poverty reduction : a public 24286
expenditure review
St. Kitts and 2003 Saint Kitts and Nevis - OECS fiscal issues : policies to achieve 25185
Nevis fiscal sustainability and improve efficiency and equity of public
expenditures
St. Vincent and 2005 Saint Vincent and the Grenadines - OECS fiscal issues : Policies 30885
the Grenadines to achieve fiscal sustainability and improve efficiency and equity of
public expenditures
Uruguay 2013 Uruguay - Public expenditure review : mitigating fiscal risks 68770
2001 Uruguay : maintaining social equity in a changing economy 21262
EAP Cambodia 2011 Cambodia - More efficient government spending for strong and 61694
inclusive growth : integrated fiduciary assessment and public
expenditure review
2008 Cambodia - Reaching the people : Public Expenditure Tracking 52807
Survey (PETS) in health - budget year 2003-2004
2005 Cambodia - Public expenditure tracking survey (PETS) in primary 34911
education
2003 Cambodia - Enhancing service delivery through improved resource 25611
allocation and institutional reform : integrated fiduciary assessment
and public expenditure review
47
APPENDIX B
LIST OF PUBLIC EXPENDITURE KNOWLEDGE PRODUCTS
China 2002 China - National development and sub-national finance : a review 22951
of provincial expenditures
2000 China - Managing public expenditures for better results : country 20342
economic memorandum
Indonesia 2013 Indonesia - Spending more or spending better : improving 73050
education financing in Indonesia
2012 Indonesia - South Sulawesi Public Expenditure Analysis 2012 : 73504
Improving public service delivery and financial management in the
gateway to Eastern Indonesia
2012 Southeast Sulawesi public expenditure analysis 2012 : public 73273
service delivery performance and development challenges in Bumi
Haluoleo
2012 Investing in Indonesia's roads : improving efficiency and closing 73303
the financing gap
2012 Bantuan Langsung Tunai (BLT) temporary unconditional cash 67324
transfer
Bantuan Siswa Miskin cash transfers for poor students 67319
History and evolution of social assistance in Indonesia 67479
Jamkesmas health service fee waiver 67312
JSLU, JSPACA, PKSA cash and in-kind transfers for at-risk youth, 67320
the disabled, and vulnerable elderly
Main Report 67217
Program Keluarga Harapan (PKH) conditional cash transfer 67309
Public expenditure review summary 67299
Raskin subsidized rice delivery 67308
2012 Targeting poor and vulnerable households in Indonesia 67218
2011 Indonesia - Agriculture public expenditure review 2010 69346
2011 2011 North Sulawesi public expenditure analysis : sub-national 67534
public financial management and development in Bumi Nyiur
Melambai
2009 Aceh growth diagnostic : identifying the binding constraints to 49568
growth in a post-conflict and post-disaster environment
2009 Indonesia - Investing in Indonesia's education at the district level : 47514
an analysis of regional public expenditure and financial
management
2008 Investing in Indonesia's health : challenges and opportunities for 46314
future public spending - health public expenditure review 2008
2008 Service delivery and financial management in a new province : 46313
Gorontalo public expenditure analysis 2008
2007 Managing resources to build back and create a better future for 40822
Nias : Nias public expenditure analysis
2007 Indonesia public expenditure review 2007 - Spending for 38772
development : making the most of Indonesia's new opportunities
2007 Public financial managment in Aceh : measuring financial 40711
management performance in Aceh's local governments
2007 Main Report 38778
2006 Aceh public expenditure analysis : spending for reconstruction and 38417
poverty reduction
2005 Papua public expenditure analysis - overview report : regional 34046
finance and service delivery in Indonesia's most remote region
2003 Decentralizing Indonesia : A regional public expenditure review 26191
overview report
48
APPENDIX B
LIST OF PUBLIC EXPENDITURE KNOWLEDGE PRODUCTS
2003 Indonesia - Selected fiscal issues in a new era 25437
2000 Indonesia - Public spending in a time of change 19845
Kiribati 2013 Summary of findings : Kiribati public expenditure analysis 78308
Lao PDR 2012 Government spending on health in Lao PDR : evidence and issues 76229
2011 Lao PDR - Public Expenditure Review (PER) 63200
2008 Lao PDR - Public expenditure tracking survey in primary education 39043
and primary health : making services reach poor people
2007 Lao PDR - Public expenditure review integrated fiduciary 39791
assessment
Malaysia 2000 Malaysia - Malaysia public expenditures : managing the crisis ; 20371
challenging the future
Mongolia 2009 Core report 43353
2006 Mongolia - Public financing of education : equity and efficiency 36979
implications
2002 Mongolia - Public expenditure and financial management review : 24439
bridging the public expenditure management gap
Papua New 2004 Papua New Guinea - Public expenditure review and rationalization 31209
Guinea : overview of discussion paper
Philippines 2013 Philippines - Second phase of the basic education public ACS2212
expenditure review : school based management - an empirical
investigation
2013 Getting a grip on climate change in the Philippines : executive 78809
report
Getting a grip on climate change in the Philippines : extended 78798
technical report
2012 Philippines - Basic education : public expenditure review 71272
2011 Philippines - Public expenditure review : strengthening public 55695
finance for more inclusive growth
2009 Philippines - Transport for growth : an institutional assessment of 47281
transport infrastructure
2007 Philippines : Agriculture public expenditure review 40493
2003 Philippines - Improving government performance : discipline, 24256
efficiency and equity in managing public resources (a public
expenditure, procurement and financial management review)
Samoa 2014 Samoa - Public expenditure review notes : taking stock of ACS7927
expenditure trends from FY2006-FY12
Solomon Islands 2011 Solomon Islands - Public expenditure review for the Solomon 68826
Islands Government
Thailand 2012 Overview 67486
Timor-Leste 2013 Timor-Leste - Social assistance public expenditure and program 73484
performance report
2004 Timor-Leste - Public expenditure review 27886
2002 East Timor public administration : public expenditure management 27509
and accountability note
Vietnam 2014 Vietnam fiscal transparency review : analysis and stakeholder 88273
feedback on state budget information in the public domain
2013 Vietnam - Agriculture public expenditure review ACS4599
2005 Cross sectoral issues 30035
2001 Viet Nam - Growing healthy : a review of Viet Nam's health sector 22210
2000 Main Report 21021
World Lithuania;World 2009 Lithuania - Social sectors public expenditure review 48604
49
APPENDIX B
LIST OF PUBLIC EXPENDITURE KNOWLEDGE PRODUCTS
World 2011 Forest sector public expenditure reviews : review and guidance 64491
note
2011 How do we improve public expenditure in agriculture? 66817
2009 Tanzania - Public expenditure review of the water sector 68621
50
APPENDIX C
THE ROLE AND INFLUENCE OF PUBLIC EXPENDITURE REVIEWS ON DPO DESIGN
Appendix C. The role and influence of Public
Expenditure Reviews on DPO design (Table 2 of 2)
Country, DPL, FY Was there a PER? If PER present and findings Were there Implementation
If yes, PER findings used in used in DPO design, in associated Prior effective or not
DPO? (Yes/No)? which Policy Areas of DPO Actions (PAs) (strong,
If no PER, were findings on were PER findings used moderate,
resource allocation from weak, none)
other analytical work used in
DPO?
Albania Social Sector No recent PER. No links between 2006 PER No
Reform, FY11 Extensive PER in 2006. and DPO (although the Not applicable
DPL’s two Policy Areas
PER 2006 covered public were: Social safety Net
debt, the social insurance (SSN) Effectiveness; and
system, health financing and Health Spending Efficiency
health insurance institute and Equity.
(HII).
Although 2006 PER dated, The Program Document
its findings remain relevant. (PD) does not discuss the
adequacy of total
However, the findings did expenditure allocations
not factor into DPO design toward social transfer
programs and health.
The Project’s review
documents do not discuss
the composition of public
expenditure.
Benin PRSC 4-6, PER in 2004 focused on PER in 2004 recognized The PAs are
series, FY07-10 social expenditure trends in that “the share of vague, given the weak to none
the same sectors of focus in expenditures in five major seriousness of the
the PRSC series. health programs is driven by issues discussed.
the availability of foreign The Program
However, the PRSC does funds rather than by national Document has no
not contain any reference to priorities; some important discussion of
PER. causes of child mortality and necessary
morbidity are not budgetary
addressed”. allocations.
No analysis of
A PRSC series focus: “to public
support government efforts expenditures in
toward achieving the MDGs critical MDG
by improving access to related areas
basic services, particularly where Benin is
better efficiency of particularly
expenditures in human lagging (maternal
capital formation”. The mortality, child
operation was explicitly mortality and
aimed at improving MDG morbidity).
outcomes. The 2010 IMF Ex-
Post Assessment
concludes that the
51
APPENDIX C
THE ROLE AND INFLUENCE OF PUBLIC EXPENDITURE REVIEWS ON DPO DESIGN
However, the PRSCs do not program could not
follow up on the PER monitor poverty
findings. reducing
expenditures
given the
weakness of
expenditure
classification.
Brazil State - Fiscal There was no PER or state Not Applicable
Sustainability, FY09 specific social sector reports Not Applicable weak
that could have guided the
DPO.
Cote d’Ivoire Post PER in 2008 Complex PER Policy Areas covered in the 5 of 7 PAs based Weak
Reconstruction and relevant to the program. PER and included in the on PER Implementation
Recovery, FY12 PER findings used in DPO DPO: recommendations. varied. I.e.
design (see next two Health and Education These were: although PA
columns). expenditures Adopt MTEF for (a) suggested
Tax policy on cocoa/coffee health and increased pro-
Budget execution education sectors poor
Accountability of public Convert export expenditures,
procurement taxes to ad the DPO
Audit (of the cocoa sector) valorem rate for supported an
cocoa; action to adopt
Submit budget a MTEF in the
execution laws; sector that was
open code of not effective as
ethics for public it was not
procurement; binding.
conduct audits of The result of
four cocoa entities increasing
expenditure on
PER called for health and
increasing pro- education was
poor not achieved
expenditures. In due to lack of
particular, health institutional
expenditures were depth in the
very low by Sub- prior action
Saharan African underpinning
standards (below this result.
1 percent of
GDP). Increasing
the share of
health and
education
expenditures was
an expected result
of the program.
Indonesia Per in 2007. Policy Areas were based on Key associated Implementation
Infrastructure DPL 4 both studies: Prior Actions (too moderate
(series of 4), FY08-11 Also Infrastructure a) Infrastructure spending numerous to Electricity
Framework for Policy and and investment at national mention all): pricing delayed
Action (2004). and sub-national; a) Increase due to
b) Allocation of fuel allocation to parliament
subsidies (reducing national approval, but
inefficient and pro-rich; infrastructure by moved forward
52
APPENDIX C
THE ROLE AND INFLUENCE OF PUBLIC EXPENDITURE REVIEWS ON DPO DESIGN
DPL design based on both allocate from consumption 30% over 2007 in 2010 during
2007 PER and the 2004 to connection) to expand level; last DPL,
study. network; b) Publicize
c) PFM in roads breakdown of rural
d) Fiduciary (e-procurement subsidy by region electrification
and audit) and customer target dropped
e) Impediments to sub- category;
national borrowing and c) Allocation to
arrears infrastructure fund
f) Incentives for PPPs (for PPP);
d) Implement e-
procurement;
e) Assist water
utilities (PDAMs)
to clear arrears so
they can resume
borrowing.
Latvia Safety Net and PER in 2007 before crisis, DPL used the 2007 PER proposal to shift from The Bank
Social Sector Reform PER in 2010, (esp. for DPL) hospital financing to primary healthcare. Overall commissioned
Program, FY10 with a focus on social sector relevance of PER limited as crisis downsized a PSIA
reforms on a reduced budget envelope in 2009. (Employment
budget due to crisis. and Welfare
2010 PER: Specifically commissioned to provide Impact of the
Some findings from 2007 analytical underpinning for second DPL. The PER Financial Crisis
used in DPL. supported social sector reforms undertaken since in Latvia). A
2009, but, as policy actions for second DPL were second study
2010 PER provided already designed during first DPL (as indicative by same
thorough analysis of triggers) – there was little flexibility to incorporate authors in
challenges in social new actions. 2012 that did
protection, health and ex-post poverty
education. Provided menu This could be the reason why some potentially simulations
of policy options for medium important reform areas not included in the first found that
term operation did not become reforms actions under ESSNS
the second program. For example, the 2010 PER worked
suggested reforms in Family State Benefits that reasonably
were less targeted but constituted 37 percent of well.
social protection budget as of 2010. The PER
suggested a number of reforms in the program to
direct resources from non-poor to the poor.
However, this did not become part of the reform
program.
Mexico Green Sectoral PER in 2009, on This DPL does not have This DPL does not Not relevant to
Growth, FY09 agriculture and rural Policy Areas related to PE. have Prior Actions this DPL.
development; related to PE
General PER in 2004. However, the EP DPL As in previous
included 2004 PER column, the EP
PER contents do not pertain findings/Policy areas on: DPL had several
to DPL. Government Accounting; prior actions
Tax Reform; related to 2004
Although no PE findings Conditional cash transfers PER findings.
used in this DPL, the These were:
Economic Policies (EP) DPL Implement
approved 1 month after this accounting law to
DPL includes a detailed establish accrual
discussion on PE accounting;
Management, and was
53
APPENDIX C
THE ROLE AND INFLUENCE OF PUBLIC EXPENDITURE REVIEWS ON DPO DESIGN
informed by several studies Tax reform for
including the 2004 PER. basic foods and
reducing subsidy
for residential
electricity;
Taxes to enhance
non-oil revenues
Peru Programmatic PER (2002) Policy Areas were: Prior Actions Strong
Fiscal Management PER (2007) a) Fiscal Management include: The PERs and
and Competitiveness, Public Expenditure and (strengthening budget a) Enforcement of PEFA appear
FY07-11 Fiscal Assessment (PEFA, reporting and planning)— fiscal rules; to have
2009). where most PAs were b) Eliminating informed the
The first operation used the focused; sectoral and country and
PER as a basis for its b) Results-based budgeting regional tax the Bank on
design. The third operation (to enhance efficiency and exemptions; the most
uses the PEFA to inform its promote higher impact of c) Linking budget important
design (to inform the reform public spending—(higher presentation cycle aspects of
process, and indicative efficiency evident in health with performance reform, and
triggers) and nutrition programs); indicators and also provided
c) Tax reforms (but little submission of with data and
Overall, PERs and PEFA advance). sector analysis to
used to inform design of the performance have proper
series. indicators; baselines for
d) Other PAs some of the
related to fiscal indicators
reforms
Poland Energy PER in 2010 focusing on Not Applicable
Efficiency and social sectors and public to this DPL.
Renewable Energy wages. PER mostly
Development, FY11 discusses forms of targeted
social assistance.
Not relevant for an energy
sector DPL and did not
factor into DPO design
Romania Financial PER (2006) Consistency between 2010 Several Moderate
Management and PER (2010) PER and DPL Policy areas associated Prior
Social Protection DPL and Prior Actions. Policy Actions:
2 (series of 1-3, 2009- Both relevant. 2010 was in areas include: a) MTEF
11), FY11 middle of series and a) Improving FM by explicitly approved by
emphasizes urgency due to introducing a MTEF; Parliament with
global crisis. 2010 findings b) Public sector wage policy; binding
used in DPL. c) Education reform expenditure limits;
(allocation of teachers); b) Pay
d) Health – allocation of adjustments made
resources; in public sector
e) Pension reform; according to laws;
c) Schools to
receive budgets
by per-capita
formula;
d) Revised health
provider payment
mechanisms
adopted;
54
APPENDIX C
THE ROLE AND INFLUENCE OF PUBLIC EXPENDITURE REVIEWS ON DPO DESIGN
e) Link/de-link
pensions.
St Lucia Economic No PER; A Policy Area relates to Prior Actions do weak
and Social DPL, FY10 No PSIA improving the effectiveness not related to PE
The Program Document and efficiency of social allocation, except Due partly to
states that, “the Bank has safety nets (SSNs) by for a reference to long-term
supported the program supporting transparent a Value Added reforms in a
through analytic work in targeting mechanisms and Tax Bill. one-tranche
public expenditure, prioritizing social spending operation.
economic management, to vulnerable groups, Implementation
poverty and social however, no expenditure is believed to
protection”. However, there analysis. have improved
is not enough evidence of after DPL
analytical work being used closure.
to support the operation.
Tunisia Governance No PER No relevant Policy Areas in No Prior Actions Not relevant
and Opportunity, DPO. related to
FY11 Comprehensive Health expenditure
Sector Study in May 2006, allocation.
with important institutional
reforms suggested. The only related
PA is “institute a
The DPL was prepared very national outreach
rapidly. No obvious inclusion service policy to
of findings. expand free
access to care.
No discussion on
allocation
Vietnam, PER in 2005 Policy Areas with There were 7 Very Weak.
Programmatic PRSC 2013 PEFA recommendations in the Prior Actions for With
10 (series of PRSCs The PER was a major PER were: PRSC 6 and 10 progression of
6-10), FY10 exercise and very relevant Implementing the MTEF as indicative triggers series, the
to the series. It suggested part of budget cycle; for PRSCs 7 to policy matrix
10 key reforms in the Balancing capital and 10. underwent
medium term recurrent expenditure 7 of the 10 significant
Eliminating off-budget indicative triggers changes. Most
transactions were dropped. critical
Implementing Treasury and indicative
Budget Management triggers were
Information System never
State Audit of Vietnam incorporated
(SAV) into the final
Audits of SOEs policy matrix.
Strengthen public
investment management
Strengthen public debt
management
Follow up PERs in 2008 and
2011.
55
APPENDIX D
DPOS AND PUBLIC EXPENDITURE REVIEWS AT THE SUBNATIONAL LEVEL
Appendix D. DPOs and Public Expenditure
Reviews at the subnational level
1. As documented in this descriptive annex, subnational DPOs and PERs have
taken place in a small number of large, federated countries durign the period under
review (2000-13 for PERs and 2004-13 for DPOs). By far the largest number of
subnational DPOs in this period took place in only one country: Brazil. 17PERs and
DPOs generally tend to overlap in a very small number of countries. Given the
important of subnational fiscal and development agenda, this may suggest a potential
knowledge gap and an opportunity for the Bank to intensify knowledge engagement at
the subnational levels, both as part of the knowledge and policy dialogue per se and as
a contribution to the future DPO development. This very brief annex provides some
very preliminary portfolio trends and figures that may raise questions and stimulate
further discussion.
2. In the period under review (2004-14) there were a relatively limited number of
subnational DPOs. In this period, the first set of subnational DPOs18 were provided to
Pakistan in 2006, including an education and an irrigation policy credit to the Punjab
region. There was a total of 35 DPOs at the subnational level between 2006 and 2013,
equivalent to about 6 percent of all approved DPO operations in this period. On an
annual basis, DPOs at the subnational level, are relatively rare, showing a a modest
increase from one operation (2 percent of the total) in 2009 to six (10 percent) in 2014.
3. All 35 subnational operations were provided to the following five countries:
Brazil, Pakistan, India, Nigeria, and Ghana. All are regionally large economies with
significant Bank engagements. The large majority of these (17) were provided to Brazil.
The trends and breakdown by country is provided in figure 1.
17In the previous period especially, there were subnational PERs in other countries (e.g., India,
Pakistan, Russian Federation, Nigeria).
18 DPOs at the subnational level were identified by all policy lending that include a “subnational
flag” as per business intelligence database. This includes only operations that lent directly to
subnational governments, but not operations that were targeting decentralization reform via
lending to central governments. The data here rely on BI report 2c.2.1, which was accessed on
March 26, 2015.
57
APPENDIX D
DPOS AND PUBLIC EXPENDITURE REVIEWS AT THE SUBNATIONAL LEVEL
Figure D-1 . Trend of DPOs at subnational level in numbers and as share of total
10 100% 18
Subnational operations as share of total
Number of subnational operations
16
Number of subnational operations
8 80%
14
6 60% 12
10
4 40%
8
2 20% 6
4
0 0%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2
0
Number Share Brazil Pakistan India Nigeria Ghana
4. As too few of those DPOs were reviewed by the IEG, no clear conclusion can be
drawn about the differences in outcome indicators at this time.
5. Similarly, relatively few PERs were produced at the subnational level. Between
2000 and 2014, IEG identified 38 subnational PERs out of a pool of 404, amounting to 9
percent of total.19 Though the number of reports produced varies, many more
subnational PERs were produced in the latter half of the evaluation period, a trend
reflecting the lending pattern of DPOs. The distribution of countries with subnational
PERs is, however, much more balanced than with DPOs across the five regions.
6. Subnational PERs were found in 16 countries. Most prominent is Indonesia (12),
followed by Ethiopia (4), and Pakistan (3). Of the five countries with subnational DPOs,
only Brazil (2 PERs), Pakistan (3 PERs), and Nigeria (2 PERs) had a subnational public
expenditure type knowledge product. This suggests that outside Brazil, where there has
been a strong DPO and PER engagement, the integration of subnational PERs and
DPOs is taking place in a very small number of countries. For example, while there
were national PERs in Ghana, no national nor subnational PERs were conducted in
India. Notable is also that no subnational DPOs were provided to Indonesia, China, or
Mexico, despite their regional importance and the World Bank’s interest in their
subnational expenditure composition. The trends and regional distribution of
subnatiojnal PERs are shown in figure 2.
As subnational coding was not available for this database, IEG instead judged content of the
19
PER by the document title.
58
APPENDIX D
DPOS AND PUBLIC EXPENDITURE REVIEWS AT THE SUBNATIONAL LEVEL
Figure D-2. Trend of PERs at subnational level in numbers and as share of total
8 80% 14
Subnational PERs as share of total PERs
Number of subnational PERs
12
6 60%
Number of subnational PERs
10
4 40% 8
6
2 20%
4
0 0%
2
0
Number Share SAR AFR ECA LAC EAP
59