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A Model of Sustainable Reform for Emerging Govts By Mohsen Shawarby Professor, Alahkwayn University, Morocco Senior Adviser: International Executive Service Corps IESC, Washington, D.C. [email protected]
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A Model of Sustainable Reform for Emerging Govts
By
Mohsen Shawarby Professor, Alahkwayn University, Morocco
Senior Adviser: International Executive Service Corps
IESC, Washington, D.C.
Cause: Political Upheaval • Failed Govts and economies, emergency laws,
poverty, corruption, etc. lead to revolutions.
• The fast developing political events and demonstrations in the Middle East North Africa MENA region, starting in Tunis and later in Egypt, Libya, Syria, Yemen, Sudan, Bahrain, and continue to emerge elsewhere in the region have all aimed at toppling the existing governments and institution new government systems and leaders.
• These fast developing events point to the pressing need for democratic government systems that are capable of offering its citizens the goals of the revolution
Two Alternatives 1. The emerging government will lead its nation, unify
its people, and deploy its human and material
capacity into formation of a sustainable political,
social and economic reform and a formidable
government.
2. The emerging govt will lead factions into a viscous
turbulence of endless political and social struggles
or civil wars as had happened in Libya, Ethiopia
and Somalia?
Reform Strategies Joseph Schumpeter lectures (Shleifer, 1997) offered eclectic
empirical observations of the aftermath of emerging
governments in Eastern Europe resulting from failed
Socialist systems in emerging to free capitalist systems.
• Conclusion: governments that adopted more capacity
building and liberal decentralization policies achieved
significant gains in economic prosperity .
• Jeff Sachs (1993, 1995) and other political reform
strategists argue that an emerging economy must
undertake the three essential steps of rapid liberalization:
A) price liberalization, B) stabilization, and C) privatization,
to restart economic growth
Comparative Analysis of Emerging Govts
• Russia and Poland: faced substantial disruption from the
collapse and demise of the old govt. Both economies were in
shambles at the time the reforms began, overwhelmed by
inflation, poverty, declining production, and stagnated growth.
• Goal the destruction of the old political system of
communism. But, How? Change Management.
• Despite the similarities as of 1990, the 2 countries appeared in
1996 to have different results of their reforms (Shleifer, 1997).
• The Polish Govt achieved more economic gains and prosperity
for its people than the gains achieved by Russian Govt.
• The rapid improvement of govt performance of the Polish Govt
attributed to the broad range of capacity building and
liberalized reform policies emanating from a decentralized
govt systems.
World Bank Studies • Point out sharp differences between CEE and CIS
countries based on the models for emerging (UNECE,
2003-2004).
• These studies point out numerous and disparate data
that can help lead us to the most practical models in
emerging governments in the MENA and Africa .
• The studies indicate that countries that moved to
decentralized political and administrative power as
well as division of powers were able to achieve the
highest levels of economic output in the early 1990s.
(EBRD 2003-2004)
Competence-Based Govts Checklist
1. What are the knowledge assets, material resources, and core competencies needed for the emerging govet?
2. Who are the most competent strategists and leaders for govt operational planning?
3. What are the most crucial infrastructure resources to deploy for capacity building?
4. How to manage and allocate infrastructure resources to get maximum growth?
5. What specific technologies, innovations, and research can be deployed to optimize production and boost growth?
6. What benchmarks to plan on achieving short-term and long-term achievements?
7. What are the most important internal and external threats to the state?
8. What are the financial resources, and financial audit reform for accounting and accountability govt?
9. What fiscal and monetary policies can be deployed to support emerging govt goals?
10. What strategies used to communicate govt strategy, maintain credibility and earn popular support?
E-GOVERNMENT • E-govt must be included among the top priorities of infrastructure
capacity building programs for the emerging govt.
• E-govt is the use of Information & Communication Technologies (ICTs) to facilitate citizens’ rights for information access and entitlement programs, reduce red-tapes for citizens, increase transparency in govt business, and promote growth.
• But, what specific E-Govt Services?
The Top Four strategic e-govt services:
1. Govt-to-Citizen (G2C),
2. Govt-to-Business (G2B),
3. Govt-to-Employee (G2E),
4. Govt-to-Govt (G2G).
Pascual (2001)
Sustainable Reform Model 1. Support projects that proved to sustain themselves.
2. For new projects, Plan reform projects to sustain
themselves during and after project initiation phases.
3. Create adequate resources for projects to stay alive after
project funding phases.
4. Train project managers with proven systems and
technologies: Change Mgt, Lean Strategies.
5. Achieve optimum performance and productivity PP.
6. Deploy measures for assessment of reform for PP.
7. Offer transparency and information sharing.
1. Empower the Auditors-Generals to meet the
challenges of audit of complex govt financial
budgeting and cash-flows under the WB principle of
Accounting and Accountability AA.
2. Empower Ministry of Finance to plan budgeting,
allocation of Funds, audit, and prevention of Fraud.
3. Automate and Implement Integrated Financial
Management Systems IFMS to achieve first task above.
4. Study cases of Haiti (review Haiti factsheet)and
Namibia.
Sustainable Financial Management Reform
Why Automate Financial Systems?
1. Perform Accounting & Accountability
2. Detection and prevention of fraud
3. Monitor Financial Transfers from MOF to all Others
4. Strategic Planning and efficient utilization of resources
5. Performance-Based Budgeting
6. Generate reports to enhance mgt process, and qualify for funding from donor organizations
7. Financial Transparency
8. Effective Internal & External Audit Control
9. Law Enforcement Interfaces
10. Improve Business Processes
11. Develop Financial Resources
12. Comply with INTOSAI, IDB, IMF, World Bank
Central vs. Local Govt • In democratic societies, govts are autonomous and
basically serve to support private business.
• Central and local govts play totally different roles.
• Central or national govTs play a central role in
legislation while local governments are more
concerned with supporting corporate operations.
• In democratic societies, local govts expanded their
role to include social responsibility and other
environmental aspects such as green management
where corporations have to observe environmental
and greening of more areas of land.
Govt Contracting • Contracting is a top priorities for reform considerations in
emerging govts.
• Contracting is more likely to be inefficient in emerging govts for
the risks of conflict with the outgoing government.
• The rule of law is likely to be undergoing major change and
reform causing enforcement to be difficult.
• The state may be a party to a contract that is based on fraud,
corruption or incompetent legal advice. In other words, the
corrupt government may be a party to the contract leading to
the threat of enforcing the contract.
• A contract between the former govt and another govt may
become unenforceable (Che and Qian, 1998b).
• Embodies a plan for higher expectations by the citizens.
• Identify initiatives for social reform.
• Institute minimum wage policies and entitlements
programs.
• Reconciliation with rivaling powers.
• Connect with grass-root organizations.
• Plan poverty reduction.
• Empower media for the democratic process.
• Institute a communication plan to connect new regime
along with its programs with the people.
Sustainable Social Reform
Common Grounds 1. Seek common ground to leverage support for social
programs.
2. Develop a hierarchy of govt.
3. Avoid exhausting arguments that lead to dissention.
4. Acknowledge the citizens and respect human dignity.
5. Avoid violent disagreement.
6. Respond in a kind reconciliatory manner.
7. Do not belittle or applaud masses.
8. Do not consider yourself right and others wrong.
9. Do not be arrogant.
10.Act within a framework of a system.
Shawarby Model of Sustainable
Reform for Emerging Govts 1. Develop the constitution, identify long-term goals, short-term objectives, and risks – to
offer citizens a working agenda.
2. Deploy Information Financial Management System IFMS to account for all financial revenues, detect hidden funds, fraud and prevent against future fraud – for increased resources of funds.
3. Deploy adequate infrastructure resources and prioritize long term economic value and green management for sustainable projects – to boost growth and create new employment and future resources for private sector investments and citizens.
4. Support infrastructure projects with research, technology and innovations – to offer quality assurance for increased productivity and to enable competition in the global markets.
5. Implement poverty reduction and entitlement programs (food, minimum wage, retirement, low-cost housing, healthcare, etc.) – To achieve positive social impact and maintain populist support.
6. Build, but not copy, other successful cases for emerging govts, with a focus on positive aspects.
7. Create Non-Govt Organizations and think-tanks to offer advisory services and voice citizens’ concerns.
8. Institute transparency laws supported by public disclosure, and Accounting and Accountability reports as mandated by the World Bank.
9. Institute public and non-govt regulatory agencies to monitor major reform of key institutions including: banks for compliance, media for accuracy of information, education for assessment and quality of learning.
10. Incorporate macro and micro evaluation measures and benchmarks for Govt performance, and for each infrastructure project – to measure progress levels.
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