Impact-orientation Impact-orientation of decentralization of decentralization policies in Boliviapolicies in Bolivia

Marcelo Renjel, Kathrin Lorenz

ObjectivesObjectives

2. Present and discuss experiences for decentralization support in implementing impact-oriented change management

1. Present the linkages between decentralization policy and poverty reduction in Bolivia

Poverty reduction in the Poverty reduction in the context of the Bolivian context of the Bolivian

decentralization processdecentralization process Decentralization of major state reform Decentralization of major state reform

process (begun in 1985)process (begun in 1985) Popular Participation LawPopular Participation Law

- Recognition of social organisations - Recognition of social organisations (rigths and duties)(rigths and duties)- Resources and responsabilities for - Resources and responsabilities for delivering social infrastructure and delivering social infrastructure and servicesservices

Administrative Decentralization Law Administrative Decentralization Law (deconcentration at intermediary level)(deconcentration at intermediary level)

Poverty reduction in the Poverty reduction in the context of the Bolivian context of the Bolivian

decentralization processdecentralization process Bolivian PRSPBolivian PRSP

- built on national dialogue - built on national dialogue - municipalization of resources and - municipalization of resources and responsabilities responsabilities - introduced pro-poor formular for - introduced pro-poor formular for resourceresource allocation (National Compensation Policy) allocation (National Compensation Policy)- extended the social control mechanisms - extended the social control mechanisms to theto the departamental and national levels departamental and national levels

Existing problems: Existing problems: decentralization as a tool for PRSP decentralization as a tool for PRSP

implementationimplementation

Lack of ownership for PRSP at all levelsLack of ownership for PRSP at all levels Lack of focus and setting prioritiesLack of focus and setting priorities Focus on redistribution Focus on redistribution

(assistencialism) vs.(assistencialism) vs. system of incentives system of incentives

Lack of budget tracking and other Lack of budget tracking and other monitoringmonitoring mechanisms mechanisms

Weak capacities at all levels for Weak capacities at all levels for implementationimplementation

Thematic pillars: Thematic pillars: Integral approach on decentralization policy support with Integral approach on decentralization policy support with four thematic pillars (decentralization, public administration, four thematic pillars (decentralization, public administration, social equity, civil society-public sector interaction)social equity, civil society-public sector interaction)

Counterpart institutions:Counterpart institutions: Integral approach through wide range of counterparts at all Integral approach through wide range of counterparts at all levels, improving possibilites for feed-back and upscaling levels, improving possibilites for feed-back and upscaling (Policy design process on national level (concurrence, (Policy design process on national level (concurrence, subsidiarity and articulation between levels), capacity subsidiarity and articulation between levels), capacity building for institutional development, Local planning; civil building for institutional development, Local planning; civil society empowerment (FAM and social control mechanisms).society empowerment (FAM and social control mechanisms).

GTZ Programm supporting GTZ Programm supporting decentrlaization and poverty decentrlaization and poverty

reduction in Bolivia, since 2001reduction in Bolivia, since 2001

Impact-oriented management for Impact-oriented management for poverty reductionpoverty reduction

Introducing impact-oriented Introducing impact-oriented management in changes processes of management in changes processes of the counterparts and for overall the counterparts and for overall programm management of PADEP.programm management of PADEP.

Underlying assumption: better outcomes Underlying assumption: better outcomes at the level of counterparts lead to at the level of counterparts lead to impacts on national policy goals such as impacts on national policy goals such as poverty reduction.poverty reduction.

Results Chain Results Chain

Impact of national policies in Bolivia for the population

Outcome of decentralization support at actor level (institutions)

Change management with counterparts

Impact oriented change Impact oriented change processesprocesses

Impact orientation in planning, Impact orientation in planning, implementation, monitoring and implementation, monitoring and management of change processesmanagement of change processes

Positive outcomes and milestones are Positive outcomes and milestones are defined together with the counterpart defined together with the counterpart institutions and always in light of their institutions and always in light of their possible contribution to impacts possible contribution to impacts

Macro orientation and micro flexibility: Macro orientation and micro flexibility: duration of 2-3 years, periodic monitoring duration of 2-3 years, periodic monitoring along milestones along milestones

Impact-oriented management in specific Impact-oriented management in specific change processes of counterpartschange processes of counterparts

Impact-oriented mangement of PADEPImpact-oriented mangement of PADEP

Impact orientation as Impact orientation as management toolmanagement tool

Bolivian policy goals of decentralization

DecentralizationPublic

AdministrationSocial Equity

Civil Society/Public Sector-

Interaction

Change ProcessChange Process

Change Process

Imp

act

con

tribu

tion

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Man

ag

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Lessons learnedLessons learned

Sequencing implementation of Sequencing implementation of management system: actor-based and management system: actor-based and bottom-upbottom-up approach as first step approach as first step

Impact orientation as Impact orientation as managementmanagement tool tool Change management processes with Change management processes with

counterparts: counterparts: ownershipownership and and sustainabilitysustainability

Internal Internal management tool vs. management tool vs. management tool for government management tool for government

Actor impacts vs. structural impactsActor impacts vs. structural impacts

Challenges for Challenges for decentralization decentralization

Improve implementation of Improve implementation of decentralization policies, for instance decentralization policies, for instance via the application of results-based via the application of results-based management instruments in all key management instruments in all key institutions (First experiences with institutions (First experiences with PADEP‘s management instrument: Not PADEP‘s management instrument: Not sustainable for government YET) sustainable for government YET)

Design systems of incentives to promote Design systems of incentives to promote pro-poor policies at local level (MDGs)pro-poor policies at local level (MDGs)

Improve articulation between levels in Improve articulation between levels in the new constitutionthe new constitution