Determining Productivity in Local Government Réjane Woodroffe Chief Economist Metropolitan Asset Managers

Agenda Defining productivity measurement Setting the benchmark for delivery Common problems A practical suggestion The benefits of measuring productivity

Defining productivity measurement Financial Profit: Income less Expenses Social Profit: Plugging the gap Under and over-production in the market system Measuring Efficiency vs. Effectiveness Budgetary Efficiency Effectiveness in providing social welfare

Setting the benchmark for delivery No electricity No functioning school No running water No clinic No toilets No shop No access road No refuse removal No landline telephones If you succeed here - anywhere else will be a walk in the park!

Do you make the 8 hour journey – in a wheelbarrow - to the clinic? Do you spend scarce funds to get to the clinic? Do you send your child to school where teachers are mostly absent? Will your children benefit from this low quality schooling? Will your children’s opportunities be improved with this quality of education? Setting the benchmark for delivery

Who do you speak to? Do you have confidence to challenge authority? If you are illiterate, are you able to challenge authority? Are you able to challenge bureaucracy? Would you know your rights if you are illiterate? Would you know your rights if you live in a remote area? What do you do if you don’t have a landline to call a helpline number? How would you even know the relevant landline number? If you have access to a cellphone, can you afford the cost of the call? Setting the benchmark for delivery

In these communities: Youth are excluded Traditional leaders and local elite focus their priorities There is a lack of clarity of the roles of councillors Setting the benchmark for delivery

Who do you tell if: you have a problem getting the child grant there is an outbreak of diarrhoea / cholera you don’t have an access road you are told to pay school fees even though a law was passed in 1996 exempting poor families from paying fees Setting the benchmark for delivery

A Practical Suggestion: How to determine effectiveness in government–Ask! Free Cellphone Number Widely advertised The Ultimate Government Hotline! Like You would be given a reference number and the relevant department will call you back within a week

Benefits of measuring effectiveness A quick, direct flow of information –Swine fever The ability to identify problem regions quickly –Urban / peri-urban development bias  The identification of problematic government departments and offices. –Birth certificates in Mthatha The promotion of joined-up government –4x4 ambulances Creative solutions Information database