Preliminary Lessons from the Decentralization and Local Government Trust Fund (DIALOG TF) Summary Report PDF-WG Core Group Meeting 29 April 2015 PHILIPPINES.

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Preliminary Lessons from the Decentralization and Local Government Trust Fund (DIALOG TF) Summary Report PDF-WG Core Group Meeting 29 April 2015 PHILIPPINES DEVELOPMENT FORUM Working Group on Decentralization and Local Government

Background of the PDF Working Group and the DIALOG TF In 2005, the PDF-WG on Decentralization and Local Government was constituted because of the importance of decentralization in achieving development outcomes. PDF-WG serves a venue for discussing policy and achieving consensus on policy reforms and priorities in local governance. In 2010, the DIALOG TF was established as a complementary feature of the PDF-WG to provide a mechanism for pooling resources to support the PDF-WG Work Plan. 2

PDF-WG Members WG-DLG RoleInstitution/Organization ConvenorDepartment of Interior and Local Government (DILG) Co-convenorWorld Bank MembersNational Government Oversight Agencies: Department of Budget and Management (DBM), Department of Finance (DOF) and the National Economic Development Authority (NEDA) Local Government Leagues of Provinces, Cities, and Municipalities of the Philippines; Liga ng Barangay National Secretariat; Union of Local Authorities of the Philippines Development Partners: ADB, Australia DFAT, Canada DFATD, EU, Agence Francaise de Developpement, GIZ, JICA, KFW Development Bank, Embassy New Zealand, UN organizations (UNDP, UN Children’s Fund, Population Fund), USAID, Spanish Agency for International Development Cooperation (AECID) 3

Overview of the DIALOG TF Was a multi-donor programmatic trust fund administered by the World Bank (WB), with contributions from: – Australia Department of Foreign Affairs and Trade (DFAT, formerly the AusAID) – Canada Department of Foreign Affairs, Trade and Development (DFATD, formerly CIDA) – WB The Fund Management Oversight Committee (FMOC) managed and monitored the DIALOG TF, with representatives from the DILG, WB, Canada DFATD, Australia DFAT, the Bureau of Local Government Finance (BLGF), German Development Cooperation (GIZ), and the League of Provinces of the Philippines. 4

Overview of the DIALOG TF The goal of the DIALOG TF was to promote LGU self-sufficiency, self-reliance and accountability through the removal of policy, institutional, and systematic constraints to decentralization. The envisioned results were improved governance systems, including rationalized functions and finance across levels of LGUs and between national and local governments. 5

DIALOG TF Design and Link to PDF-WG Work Plan The DIALOG TF promoted development in decentralization and local governance by supporting priority activities of the PDF-WG for the following categories: – Capacity Building – Local Government Finance – Performance Benchmarking – Policy Reform 6

DIALOG TF Implementation Summary The DIALOG TF funded 5 projects: Project Name (Government Partner) Implementation Period Disbursements (USD) 2010 Newly Elected Officials (NEO) Orientation Program (DILG) ,644 Technical Assistance on Building on the Full Disclosure Policy: Strengthening Citizen Demand for Local Governance (DILG) ,497 Capacity Building for Local Treasurers on the Statements of Receipts and Expenditures (SRE) System (DOF-BLGF) ,455 Sub-national Debt Policy Technical Assistance (DOF-BLGF) ,203 Technical Assistance on Strengthening the Implementation of the Full Disclosure Policy (DILG) ,993 DIALOG TF and PDF-WG Coordination ,397 Total Project Disbursements 814,189 7

DIALOG TF Results Framework Development Objectives Expected Results and Performance Measures Actual Outputs 8

DIALOG TF Development Objectives Development Objectives 1. Intensify government and development partner support for decentralization and local governance reforms through improved coordination and harmonization of resources and systems. 2. Accelerate decentralization and local governance reforms in strengthening local public finance and management, improving overall LGU performance, and strengthening the legal and institutional environment for local governance, through capacity development and analytical activities Harmonized capacity building programs for LGUs and other key institutions (i.e. National Government Agencies and leagues) to improve capacity of LGUs in core governance functions Accelerated revenue mobilization, improved expenditure management, and increased access to finance for better service delivery and growth promotion Increased use of Local Government Performance Measurement systems to benchmark performance and create incentives for better services Improved decentralization policy framework reflected in updated legal & institutional arrangements to strengthen local governance. 9

Accomplishments for Development Objective 1: Intensify government and development partner support Expected Result: A common framework for multi-donor assistance to GOP for programs in support of decentralization and local governance Performance MeasureActual Outputs Amount of funding channeled through DIALOG Trust FundUSD 1,210,653 Number of development partners supporting/ participating in PDF-WG annual work plan activities. 13 (All development partners of the PDF-WG) 10

Accomplishments for Development Objective 2: Accelerate decentralization and local governance reforms Development Objective 2.1: Harmonized capacity building programs for LGUs and other key institutions (i.e. National Government Agencies and leagues) to improve capacity of LGUs in core governance functions Performance MeasureActual Outputs Number of capacity building requirements systematized 2 (NEO, SRE) Number of capacity building programs improved and delivered 4 (NEO, SRE, FDP for CSOs & LRIs) Number of LGUs participating in performance based programs 1,715 LGUs (SGH) Number of mechanisms for assessing and reporting LGU capacities established 2 (SGH and SRE) 11

Accomplishments for Development Objective 2: Accelerate decentralization and local governance reforms Development Objective 2.2: Accelerated revenue mobilization, improved expenditure management, and increased access to finance for better service delivery and growth promotion. Performance MeasureActual Outputs Number of Local Government Finance assignments clarified & guidelines disseminated to LGUs for increased revenue generated from traditional and non-traditional sources None Percentage of LGU-generated resources to GDP (as reported by the BLGF, May 2014) In 2009: 0.91% In 2012: 0.80% Number of Local Government Finance assignment clarified & guidelines disseminated to LGUs for eased access to LGU financing 1 (Sub-national Debt Policy Technical Assistance) Number of LGUs using harmonized guidelines (re. planning, budgeting, auditing) None 12

Accomplishments for Development Objective 2: Accelerate decentralization and local governance reforms Development Objective 2.3: Increased use of Local Government Performance Measurement systems to benchmark performance and create incentives for better services. Performance MeasureActual Outputs Number of Performance Benchmarking systems rationalized None Number of LGU Performance Benchmarking systems used & monitored by LGUs 1 (SGH) Percentage of existing statistical LGPMS systems used for decision making (Quality) Not measured 13

Accomplishments for Development Objective 2: Accelerate decentralization and local governance reforms Development Objective 2.4: Improved decentralization policy framework reflected in updated legal & institutional arrangements to strengthen local governance. Performance MeasureActual Outputs Number of lessons and innovations documented and mainstreamed into relevant policies 1 (FDP, DILG MC ) Number of LGUs formulating and introducing change management plans Not measured Number of amendments to LGC and other relevant codes introduced for legislative approval None 14

DIALOG TF Key Accomplishments Facilitation of Government and development partner coordination. – Several of the DIALOG TF activities, such as the NEO and Sub-national Debt TA, were implemented with complementary support of the PDF- WG. – The PDF-WG work plans were actively utilized to map out activities among the various development partners of the PDF-WG to avoid duplication of efforts. – The Government and development partners of the PDF-WG were consistently updated on the status and implementation of the activities of the DIALOG TF. 15

DIALOG TF Key Accomplishments Consistency with the intended design of the DIALOG TF to implement activities around the priority categories of the PDF-WG. Activities Capacity Building Local Government Finance Performance Benchmarking Policy Reform 2010 NEO Program √ Building on the Full Disclosure Policy √√√√ Capacity Building for Local Treasurers on the SRE √√√ Sub-national Debt Policy Technical Assistance √ √ Strengthening the Implementation of the FDP √√√√ 16

DIALOG TF Key Accomplishments Widened disclosure of improved public information: – The FDP increased the accessibility of public information. – SRE capacity building helped to improve the quality of LGU fiscal reporting. – Sub-national debt policy technical assistance helped consolidate salient information on the monitoring and regulation of local borrowing. Institutionalization of capacity building programs and policy: – 4 of the 5 DIALOG TF activities had capacity building components with a total of 1,663 persons trained. – Of these activities, the NEO and SRE were adapted by the LGA and BLGF. – The use of the Full Disclosure Policy Portal (FDPP) was institutionalized through DILG MC No

Preliminary Lessons from the DIALOG TF Alignment with GOP priorities led to – the focus on improving local governance through capacity building activities. – supply-side and demand-side interventions through the NEO, SRE and the FDP. Significance of the evaluation of activities – Evaluation reports were used to enhance the NEO and SRE programs that were subsequently adapted by Government partners. Importance of responsiveness to GOP follow-up requests – Timely improvements and expansions of the FDP and SRE were possible because of the flexibility of the DIALOG TF. 18

Thank you