Strategies for Counteracting Reform Headwinds A Presentation By

Strategies for Counteracting Reform Headwinds A Presentation By Ugochukwu A. Okoroafor, mni, fcs Younity Synergy Limited http//www. younityng. com; email: info@younityng. com

Contents I. Introduction/Background II. Nigeria and Public Sector Reforms III. Identifying Reform Headwinds IV. Strategies for Counteracting Reform Headwinds V. Conclusion

Introduction/ Background

(Public Sector) Reforms – Definition and Rationale Definition: q q q The process of changing, for the better, the way in which a government operates. Activities that drive systemic and sustained improvement in the public administration of the state…. . The quality and effectiveness of public sector management and institutions and the appropriate role of the state in society – Hook D. et al ‘A deliberate policy and action to alter organisational structures, processes and behaviour in order to improve administrative capacity for efficient and effective performance’ – Barbados Min. of Civil Service Rationale: q q q ‘To reshape the role of the state and its relationship with its citizens’ – Kettl D. F. “To help provide ‘public goods’ in the appropriate quantity and quality as and when demanded by society” – Schacter, M. To define the level of participation and influence of the public sector in the economic and social life of the country

Public Sector Reforms: A Short Commentary q Reforms have helped to reshape society in all its ramifications and is critical in national development q Reforms are essentially liberal in nature but are phenomena embraced by all sections of society, q The UK Reform Act of 1832, for instance, helped strengthen the middle class as it gave them more political rights in the urban areas where they lived q Reforms brought such changes as universal adult suffrage, women’s and children’s rights and the universal declaration of human rights q All progressive societies and disciplines have benefitted from one reform initiative or the other

Typical Reform Objectives q Better service delivery in terms of quantity, quality, speed and cost (Social Contract) q Fiscal prudence and efficiency q Stronger policy formulation and implementation mechanisms q Improved funding capacity and tax collection regime q Greater accountability and transparency in the public sector q More scope for private sector players and other social partners to participate in development q Building strong institutions and not strong men q More good life to more citizens (Peace, Prosperity and Happiness)

Typical Reform Issues q Strengthening institutions for effective policy implementation and coordination q Combatting corruption and allied practices q Legal reforms q Reducing the size of government q Professionalising the public sector q Reducing government “crowding out” phenomena q Changing mind set and culture and work ethics q Creating the ‘Enabling Environment’ for development by mobilising all sectors q Resource optimisation q Money, men and materials and time

Rationale/Imperatives for Reforms q Improvement of a country’s financial management and fiscal (tax collection and expenditure) regimes q More equitable and efficient delivery of ‘public goods’ and other services provided by government q Limited public sector capacity to power economy to the exclusion of the private sector and other Social Partners – NGOs, Trade Unions and multilateral agencies q Dwindling returns from existing practices and processes q Keeping pace with Globalisation and the competition it generates q Need to focus more on results than on processes q Meeting the Developmental Goals targets of nations and multilateral agencies q Desire to improve economic stability and financial inclusion

Reform Standards q International Standards Organisation (ISO certification) q ICT standards and protocols q Code of Business Ethics and Conduct for Employees (COBEC) q Various international certifications for trade groups and practices q. Customs External Tariffs (CET) q. Europay, Mastercard, Visacard (EMV) Standard q. International Capital Market Association (ICMA) Standards

Characteristics of Reforms q Usually cross-cutting - involving an unwieldy number of personnel, offices and departments q Subject to internal and external dynamics q Introduction of private sector-style parameters: q Privatisation and commercialisation q. Measurable standards q. Competition q. Downsizing q. Outsourcing q. Incentive scheme q. Decentralisation of decision making q. Delegation and so on

Characteristics of Reforms (II) q Desired goals are usually long term and do not often have immediate adverse consequences q Monitoring and evaluation are not easily achieved due to the number of factors and players involved; and character of the civil service q Reforms are built around strong and ennobling Vision Statements

Typical Vision Statements Nigeria’s Financial System Strategy 2020 (FSS 2020): To be the safest and fastest growing financial system among emerging markets Universal Health Services Inc USA: To provide superior quality healthcare services that: PATIENTS recommend to family and friends; PHYSICIANS prefer for their patients, PURCHASERS select for their clients, EMPLOYEES are proud of, and INVESTORS seek for long term returns

Typical Vision Statements Tanzania Vision 2025: Tanzania cherishes good governance and the rule of law in the process of creating wealth and sharing benefits in society and seeks to ensure that its people are empowered with the capacity to make leaders and public servants accountable. By 2025, good governance should have permeated the national socio-economic structure thereby ensuring a culture of accountability, rewarding good performance and effectively curbing corruption and other vices in society Oxfam: A just world without poverty The Nature Conservancy: To leave a sustainable world for future generations

Nigeria and Public Sector Reforms

Public Sector Reforms in Nigeria q The Colonial Office had a limited public service sector that served its needs of making Nigeria a producer of primary products to feed the factories of the United Kingdom q Limited reforms were instituted which were restricted largely to allowing the civil servants some rights, like circumscribed trade union activities. However reforms were carried out in 1945 and 1955 to address manpower challenges and enhance incentives q At Independence, the Civil Service was totally divorced from the culture and developmental needs of the Nigerian society.

Public Sector Reforms in Nigeria (II) Major Reform Initiatives in Nigeria: q Adebo Commission (1971) q Udoji Reviews and Awards (1974) q Dotun Philips Civil Service Review (1988) q Allison Ayida Commission on Civil Service (1995) q Structural Adjustment Programme - SAP (1986) q Banking Consolidation and Reforms (2004) q Financial System Strategy 2020 - FSS 2020 (2006) q Financial Inclusion, Financial Literacy and Consumer Protection (2009) q On-going War on Corruption (2015)

Other Notable Reform Programmes in Nigeria q Various Capital Market Reforms q War Against Indiscipline (WAI) - 1984 q National Health Insurance Scheme (National Strategic Health Development Plan – NSHDP) q Telephone GSM Revolution - 1999 q National Economic Empowerment and Development Strategy – NEEDS (2003) q Electricity Reforms q Education Reforms q SERVICOM q Payments and Cashless Transactions Reforms q Treasury Single Account (TSA)

BPSR Reform Programmes in Nigeria (ref: www. bpsr-nigeria. com. ng) q q q Creating a Coordinating Ministry for the Economy Transforming Agriculture into a bankable business Repositioning Ministry of Trade & Investment Increasing emphasis on ICT and e-Government Revamping the National Planning Commission Enhancing the Monitoring and Evaluation practice in the public sector Initiating the Power sector reforms Streamlining Offices of Sec to Govt of Federation and Head of the Civil Service of the Federation and the Federal Civil Commission Implementing Pension Reforms Resuscitating National Steering Committee on Public Sector Reforms Restructuring and rationalising Federal Government Agencies, Parastatals and Commissions

Key Public Sector Reform Institutions q They are numerous and differ on the basis of need and objectives. They include: q. National Planning Commission and its reform entities q. Bureau of Public Sector Reforms (BPSR) q. Financial System Strategy (FSS 2020) Project Management Office q. Nigeria Law Reform Commission q. Bureau for Public Enterprises (BPE) q. Nigeria Investment Promotion Council (NIPC) q. Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) q. SERVICOM Office

Identifying Reform Headwinds

Reform Headwinds Defined Headwind: A wind blowing directly in front, opposing forward movement. In the context of reforms, headwinds are those factors that impede the successful and timeous achievement of set goals Rationale for counteracting Headwinds: • They slow down reform process and introduce stress • They are expensive and tie down resources • They lower morale and dampen collective spirit • They are avenues for inimical forces to compromise the institution and the system

Quotable Quotes on Reform Headwinds ‘When you fight corruption, corruption fights back’ – Nuhu Ribadu The winners in reforms walk away and the losers stay back to fight – Chukwuma Soludo Reform is not pleasant, but grievous; no person can reform themselves without suffering and hard work, how much less a nation – Thomas Carlyle We have come to rely upon a comfortable time-lag of fifty years or a century of intervening between the perception that something ought to be done and a serious attempt to do it. – H. G. Wells The journey of a thousand miles begins with a step – Chinese proverb

Challenges of Reforms (Headwinds) q Corruption, Unethical work culture and behaviour q Limited understanding of the reform objectives and fear of the unknown q Structure of civil service and impact of General Orders: (from Barbados Min. of Civil Service) q Red Tape; Due Process; Centralisation; poor delegation; etc q Low buy-in among relevant stakeholder groups q Unclear value system and ‘poor spirit of professionalism’ - Barbados Min. of Civil Service q Low administrative and professional capacity among public servants

Challenges of Reforms (Headwinds) (II) q ICT and mathematical Illiteracy q Cabals and Entrenched Interests – corruption, ethnic practices and rent seeking tendencies q Paucity of funding, low remuneration and poor incentive structure q Relatively short implementation horizon q Policy consistency within and between regimes (ideological and policy conflicts) q Key Man issues – Strong men, weak institutions q The technocratic approach of multilateral agencies and donors q Poor accountability and paucity of relevant information and data

Strategies for Counteracting Reform Headwinds

Strategies for Counteracting Headwinds q Developing strong executive participation and leadership q Clear definition of Vision and Mission statements q Ensuring broad involvement and buy-in of relevant stakeholder groups. Get representatives to express concerns and also sign off on agreed policy measures q Consulting frequently across stakeholder groups to revalidate and sustain support and understanding q Ensuring there is a realistic implementation horizon q Creating milestones and celebrating them once attained q Training of reformers on policy and technical matters q Institution of proper monitoring and evaluation mechanisms q Communication, communication

Strategies for Counteracting Headwinds (II) q Providing scope for effective participation of social partners q The key partners are: q. Private Sector q. Non-Governmental Organisations (NGOs). Non-profit organisations and organised Trade Unions q. Multilateral and Bilateral Development Agencies q. Aid and donor agencies q. Media and public analysts

Strategies for Counteracting Headwinds (III) Private Sector: • Reassure private sector players of their survival and longevity. • Avoid crowding out phenomenon where there is capacity • Provide equitable and convenient tax regimes Multilateral and Bilateral Agencies and Donor Groups: • Collaboration and strategic alliances based on trust and mutual respect • Monitoring and Evaluation opportunities Media and Trade Groups: • Open channels of communication and discussions • Involve non-public sector champions of the reform scheme

8 -Step Strategy to Successful Reforms Courtesy: Kotler, P. q Establish a sense of urgency (‘The Burning Platform’) q Form a powerful guiding coalition q Create a Vision q Communicate the Vision q Empower others to act on the Vision q Plan for and create short-term wins q Consolidate improvements and plan for more change q Institutionalise new approaches

Errors That Generate Reform Headwinds – Kotler, P. q Low awareness of need for change and consequences of not embracing it q Inadequate mobilisation of change champions q Unclear or no Vision q Poor communication q Not clearing the impediments for adoption of new Vision and reform processes q Little or no planning for and creating short term gains – Low hanging fruits q Declaring victory too early q Not institutionalising change into the corporate culture

Success Tips for Reform Leaders q Be a leader and not a boss. q Act as cheerleader and motivate. Notice and applaud every positive change q Empower change champions q Be the change you desire – Mahatma Ghandi q Always reach out to the identified opposition q Communicate all the time

Conclusion

Conclusion q Reforms involve change and change is the unchanging rule of nature q There are significant gains from the successful implementation of reforms q Nigeria has various reform programmes that are still ongoing and which need to be concluded successfully to enable her achieve her ambitious goals q Success comes from all stakeholders working in harmony and in full understanding of the desired end state

Thank You For Your Attention