Managing the Politics of Reform A Case Study

Managing the Politics of Reform: A Case Study on Coalition Building and Public Procurement Reform in the Philippines Presented to: Presented by: Political Economy BBL Series Social Development Network The World Bank Washington D. C. Ed Campos Adviser, WBIVP The World Bank June 18, 2005

Promoting Reforms: Changing the Landscape Desired State (Good Equilibrium) Status Quo (Bad Equilibrium) The World Bank PREM Public Sector Governance 2

Promoting Reforms: Changing the Landscape Desired State Conditionality (Good Equilibrium) Status Quo (Bad Equilibrium) The World Bank PREM Public Sector Governance 3

Promoting Reforms: Changing the Landscape Desired State (Good Equilibrium) Status Quo (Bad Equilibrium) The World Bank Reform coalition “Well Oiled Machine” PREM Public Sector Governance 4

Background: Why Procurement Reforms? The World Bank PREM Public Sector Governance 5

From ‘Shot Gun’ … The Great Wall of Corruption The World Bank PREM Public Sector Governance 6

… to ‘Laser Beam’ … Wall reat The G The World Bank of C orr upt ion PREM Public Sector Governance 7

Background: Why Procurement Reforms? Survey Findings Government procurement and tax collection are perceived to be the major sources of corruption: ¨ 4 of the top 5 most corrupt agencies featured prominently in government contracting ¨ Approximately 20% of govt. contracts go to kickbacks/ commissions ¨ Equivalent to P 21 B in 2001 just for the national government; much larger if BOT transactions and local government are included The World Bank Legal Foundations a Mess Over 100 laws, regulations, executive orders etc. governing public procurement PREM Public Sector Governance 8

Pre-qualification 7. 5 to 12 months Pre-bid Conference Bid Analysis Award of contract The World Bank (5 -7 months) (2 weeks) (1 -3 months) (1 - 1. 5 months) PREM Public Sector Governance 9

Eligibility Check Pre-bid Conference 2 to 3 months Bid Analysis Post-qualification Award of contract The World Bank (1 day) (2 weeks) (1 - 4 weeks) (1 - 2 weeks) (1 month) PREM Public Sector Governance 10

Getting from “bad” to good”? : Creating a Reform Coalition • How to unify the Executive branch? • How to mobilize civil society groups? • How to link CSOs and reformers in government? • How to recruit “champions” in the Legislature? The World Bank PREM Public Sector Governance 11

Getting from “bad” to good”? : Creating a Well Oiled Machine • How to unify the Executive branch? • How to mobilize civil society groups? • How to link CSOs and reformers in government? • How to recruit “champions” in the Legislature? The World Bank • • • Ownership is critical “Shoot down” workshop Formation of TWG Revival of dormant GPPB Technical analysis matters PREM Public Sector Governance 12

Getting from “bad” to good”? : Creating a Well Oiled Machine • How to unify the Executive branch? • How to mobilize civil society groups? • How to link CSOs and reformers in government? • How to recruit “champions” in the Legislature? The World Bank • Disparate, diffused CSOs • Formation of PWI • Strategic Bank support PREM Public Sector Governance 13

Getting from “bad” to good”? : Creating a Well Oiled Machine • How to unify the Executive branch? • How to mobilize civil society groups? • How to link CSOs and reformers in government? • How to recruit “champions” in the Legislature? The World Bank PWI became the cog that tied all parties PREM Public Sector Governance 14

Mobilizing Public Support Transparency and Accountability Network (20+ member groups) PAGBA & AGAP (w/in Gov’t) Drew other civil society groups into the advocacy efforts and coordinated the activities Local chambers of Commerce (Private sector) The World Bank Walang Ku-Corrupt Movement (Youth) CBCP (Church) Philippine Contractors Association (private sector – main stakeholder) PREM Public Sector Governance 15

Getting from “bad” to good”? : Creating a Well Oiled Machine • How to unify the Executive branch? • How to mobilize civil society groups? • How to link CSOs and reformers in government? • How to recruit “champions” in the Legislature? The World Bank champions: “investing for the future” strategic positions PREM Public Sector Governance 16

Sec DBM Usec PWM Director DBM Advisory team PWI Other Usecs DBM The World Bank Leadership Structure

Gov’t experts Sec DBM Usec PWM Director DBM Advisory team PWI Gov’t experts Other Usecs DBM Gov’t experts The World Bank

TAN Radio/TV hists Gov’t experts journalists Gov’t experts Sec DBM Usec PWM Director DBM Advisory team PWI PCCI Gov’t experts Other Usecs DBM MBC PAGBA TAN PCA Gov’t experts AGAP Gov’t experts Bishops The World Bank Gov’t experts U Student councils

TAN Senate CR Com Sraff Gov’t experts LH App Staff Radio/TV hists Gov’t experts League of provinces Sec DBM Gov’t experts Usec DBM PCCI Usec PWM Gov’t experts Chair App Director DBM Chair Cons Rule Gov’t experts Lower house Senate Advisory team PWI journalists Gov’t experts Other Usecs DBM MBC Gov’t experts PAGBA TAN AGAP Gov’t experts Bishops The World Bank PCA U Student councils

Co m m un ica tio ns TAN Senate CR Com Sraff Gov’t experts LH App Staff Radio/TV hists Gov’t experts League of provinces Sec DBM Gov’t experts Usec DBM PCCI Usec PWM Gov’t experts Chair App Director DBM Chair Cons Rule Gov’t experts Lower house Senate Advisory team PWI journalists Gov’t experts Other Usecs DBM MBC Gov’t experts PAGBA TAN AGAP Gov’t experts Bishops The World Bank PCA U Student councils

Sustaining the Reform Process: The Media Campaign l Became the ’Glue’ that linked reformers in government, civil society, legislators, and the general public l “Public relations drive + advertising blitz + political campaign” l Needed local company with special skills to carry this out … The World Bank PREM Public Sector Governance 22

The Media Campaign: The Communications Strategy Radio: The swath & the dagger Reaching Out Print Media: Amplifying the problem The World Bank TV: Raising the ante Advertising: Creating a ‘brand name’ PREM Public Sector Governance 23

The World Bank, the Department of Finance, and the Transparency and Accountability Network Foundation, Inc. (TAN), a civil society anti-corruption coalition, signed a grant agreement amounting to US$1. 01 million to promote the adoption of transparent and participatory procurement mechanisms, which can help improve the delivery of poverty reduction programs in poor municipalities in the country. The World Bank PREM Public Sector Governance 24

Requisites of Change Management 8 establishing a sense of urgency 1 2 7 CHANGE creating a guiding coalition 3 developing a vision and strategy The World Bank embedding change in the culture 4 communicating the change vision consolidating gains & producing more change 6 5 generating short term wins empowering broad based action John Kotter, 1996 PREM Public Sector Governance 25

Implications for Donors May need to “spice up” the way we provide technical assistance and advice l Need to focus more on implementation, steps to make reforms happen in complex political environments -- in addition to technical work l Have to find creative ways to help finance this process The World Bank PREM Public Sector Governance 26

Thanks! The World Bank PREM Public Sector Governance 27