Download Report - Independent Evaluation Group - World Bank
Download Report - Independent Evaluation Group - World Bank Download Report - Independent Evaluation Group - World Bank
7reduced considerably the role of the Secretariat. As a result, there was no solid basis fora reallocation of resources, and the 2000 performance targets with respect to reducingpublic expenditures, and maintaining the levels of the PIP and of social spending werenot met. The component was dropped at restructuring.3.12 Ministry of Finance and Budget. The budget and treasury nomenclatures wereunified while budget execution was improved by making appropriations available early toline ministries, by giving spending authority for health and education to deconcentratedoffices—Health and School Districts—of the ministries, 6 and by simplifying severalcontrols. An integrated computerized public finance management system was establishedas a pilot operation in Toamasina, the country’s main port, and was to be installed at thenational level. Payroll management was improved by the computerization of a unifieddata base between the Ministry of Civil Service and MFB. The Permanent Secretariat forMacro-economic Forecasting was strengthened and performed satisfactorily; producinggood quality macro-economic frameworks used for the budget, the IMF programs, thePRSP, and the formulation of the HIPC triggers. It also issued an annual review of themacro-economic situation. After the 2002 crisis, it was integrated into the EconomicDirectorate of MFB.3.13 An organizational audit of the Treasury was completed by consultants in 1998,but GOM considered that it was of poor quality and not responding to its needs. Itsrecommendations were not implemented. The remaining funds were redirected to thecomputerization of operations. Completed in 2000, it allows for timely information on theexecution of the budget. With regard to external oversight of public accounts by theOffice of the Auditor General (OAG), considerable progress was achieved. As ofOctober 2005, final audited accounts for 1993-98 had been approved by the NationalAssembly and those for 1999-2001 were with the Assembly for adoption. At the samedate, OAG had sent its comments on the 2002 accounts to MFB and was auditing the2003 accounts.Achievements under Governance3.14 Civil Service Reform. A substantial amount of work, workshops, audits, andstudies, led to the preparation of a new draft statute that was approved by the NationalAssembly but rejected by the Senate for lack of political commitment and coordinationwithin the administration. Institutional audits were carried out for six ministries leading toreform in some of them: the disengagement from production activities in Public Works andTransport; the reduction of non-permanent staff in Agriculture; delegation of decisions tofield managers at the district level in Education; and some lesser restructuring in Justiceand Health. Overall, results were mixed because of unclear strategies in decentralizationand deconcentration. The component was closed in late 1999.6 The transfer of spending authority to deconcentrated offices was successful in increasing the amount of local controlover spending and most districts function more or less. However, the districts focused primarily on infrastructure,mostly rehabilitation of facilities or new buildings. Since facilities were inadequate in any case, this was not wastedinvestment, but other constraints such as inadequate staffing, lack of staff training, poor teacher attendance, andinadequate teaching/health supplies, were not addressed. Another problem is that the districts remain dependent on thecentral government budget allocations.
83.15 Decentralization. Assistance was interrupted following a change in GOM’sdecentralization strategy, following the 1998 revision of the Constitution creating newadministrative levels. 7 Many of the revisions, particularly the transfer of competence,budgetary assignments, and the structure of inter-governmental fiscal relations, remainedundefined and the nature of inter-relations between levels uncertain. As a result, theproject was no longer in a position to influence core policy decisions or provideassistance and guidance in the absence of clear direction. However, the pilot programs toimprove local management, establish guidelines on accounting standards, and raiserevenue mobilization were successfully implemented in 12 communes and some positiveexperiments have since been extended to a large number communes. The component wasclosed at restructuring.3.16 Judicial Reform. There was progress on several fronts: (i) a National School forMagistrates and Clerks was established, which still runs today with funding from thenational budget and donors. It now has a section for Magistrates specializing in financeand administration; (ii) the business legislation (commercial code, companies' law,guarantees and securities, etc.) was revised; (iii) several basic laws and other legalpublications were reprinted and distributed to all magistrates and other legal personnel,CD-ROMs were widely disseminated, and several secured libraries established; (iv) in2001, an Arbitration Center was opened; and (v) the provision of materials, supplies andIT equipment permitted to reduce the backlog of cases in the capital and in threeprovinces.MONITORING AND EVALUATION AND OTHER ISSUES3.17 The project included a list of indicators to measure progress under eachcomponent, stated in terms of activities, outputs, milestones, and dates. The indicatorswere adequate and corresponded to the right data to be collected, given the objectives ofthe project. However, M&E implementation was mixed: for components not droppedafter the restructuring, some outputs were produced on time, others with delay, and stillothers were not produced. For the components terminated at restructuring, manyactivities were not completed. There is insufficient information to asses – and the ICRdoes not discuss - the extent to which data collected or outputs produced informeddirectly decision-making processes and resource allocation. There were no issues withrespect to compliance with safeguards and fiduciary requirements.OUTCOME3.18 Unsatisfactory. As mentioned above, there are few indicators providingquantitative results, partly because of the disruption caused by the restructuring and thenumerous administrative and institutional changes. Overall, achievements were mixedand fragmentary due to insufficient commitment, frequent conflicts and changes in theadministration, and poor coordination. Economic management was not strengthened as7 The 1998 Constitution created Regions, as distinct from provinces and communes, but, as late as the end of 2003, theyhad not been established. The new Constitution also created Districts as deconcentrated units of the central governmentand the most important interface for public service delivery.
- Page 1: Document ofThe World BankReport No.
- Page 5 and 6: iiiContentsPrincipal Ratings.......
- Page 7: vSustainability....................
- Page 11: ixKey Staff ResponsibleProject Task
- Page 15 and 16: xiiiSummary1. This is the Project P
- Page 17 and 18: xvcountry conditions that had been
- Page 19 and 20: 2growth for the first time in decad
- Page 21 and 22: 4Under Economic Management:• Tech
- Page 23: 6Decentralization reform component
- Page 27 and 28: 10had characterized the Bank team a
- Page 29 and 30: 124.6 Inflation and credit to GOM w
- Page 31 and 32: 14Table 4.2: Budget Allocations to
- Page 33 and 34: 16OBJECTIVES AND DESIGN5.2 The obje
- Page 35 and 36: 18supervision, the Bank advised on
- Page 37 and 38: 20SUSTAINABILITY5.16 Likely. There
- Page 39 and 40: 22ownership of its non-oil operatio
- Page 41 and 42: 24second after completion of 50 per
- Page 43 and 44: 26the sale of SOLIMA and of its sub
- Page 45 and 46: 28identifying weaknesses in tax adm
- Page 47 and 48: 30showed commitment to pursuing ref
- Page 50 and 51: 33 Annex AAnnex A. Basic Data Sheet
- Page 52 and 53: 35 Annex APRIVATE SECTOR DEVELOPMEN
- Page 54: 37 Annex ASECOND STRUCTURAL ADJUSTM
- Page 57 and 58: 40 Annex Bbeneficiary of Malagasy a
- Page 59 and 60: 42 Annex CGENERAL CONDITIONS AND DE
- Page 61 and 62: 44 Annex CADDITIONAL MEASURESAdditi
- Page 63 and 64: 46 Annex DMr. Charles Andrianaivoja
- Page 65: 48 Annex EComments from the Governm
7reduced considerably the role of the Secretariat. As a result, there was no solid basis fora reallocation of resources, and the 2000 performance targets with respect to reducingpublic expenditures, and maintaining the levels of the PIP and of social spending werenot met. The component was dropped at restructuring.3.12 Ministry of Finance and Budget. The budget and treasury nomenclatures wereunified while budget execution was improved by making appropriations available early toline ministries, by giving spending authority for health and education to deconcentratedoffices—Health and School Districts—of the ministries, 6 and by simplifying severalcontrols. An integrated computerized public finance management system was establishedas a pilot operation in Toamasina, the country’s main port, and was to be installed at thenational level. Payroll management was improved by the computerization of a unifieddata base between the Ministry of Civil Service and MFB. The Permanent Secretariat forMacro-economic Forecasting was strengthened and performed satisfactorily; producinggood quality macro-economic frameworks used for the budget, the IMF programs, thePRSP, and the formulation of the HIPC triggers. It also issued an annual review of themacro-economic situation. After the 2002 crisis, it was integrated into the EconomicDirectorate of MFB.3.13 An organizational audit of the Treasury was completed by consultants in 1998,but GOM considered that it was of poor quality and not responding to its needs. Itsrecommendations were not implemented. The remaining funds were redirected to thecomputerization of operations. Completed in 2000, it allows for timely information on theexecution of the budget. With regard to external oversight of public accounts by theOffice of the Auditor General (OAG), considerable progress was achieved. As ofOctober 2005, final audited accounts for 1993-98 had been approved by the NationalAssembly and those for 1999-2001 were with the Assembly for adoption. At the samedate, OAG had sent its comments on the 2002 accounts to MFB and was auditing the2003 accounts.Achievements under Governance3.14 Civil Service Reform. A substantial amount of work, workshops, audits, andstudies, led to the preparation of a new draft statute that was approved by the NationalAssembly but rejected by the Senate for lack of political commitment and coordinationwithin the administration. Institutional audits were carried out for six ministries leading toreform in some of them: the disengagement from production activities in Public Works andTransport; the reduction of non-permanent staff in Agriculture; delegation of decisions tofield managers at the district level in Education; and some lesser restructuring in Justiceand Health. Overall, results were mixed because of unclear strategies in decentralizationand deconcentration. The component was closed in late 1999.6 The transfer of spending authority to deconcentrated offices was successful in increasing the amount of local controlover spending and most districts function more or less. However, the districts focused primarily on infrastructure,mostly rehabilitation of facilities or new buildings. Since facilities were inadequate in any case, this was not wastedinvestment, but other constraints such as inadequate staffing, lack of staff training, poor teacher attendance, andinadequate teaching/health supplies, were not addressed. Another problem is that the districts remain dependent on thecentral government budget allocations.
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