1. Smart Program Design: Moving From Analysis to Action Presented By: Denyse Morin The World Bank Group Presented To: GAC Health Workshop Nairobi, Kenya March 2011

2. Risk Mitigation: Smart Project Design and Beyond Risk Mitigation: Smart Project Design and Beyond Improving Development Outcomes

3. Approaches to Risk Mitigation: Emerging Good Practices Smart Project Design applied to all projects in a country or region reflects what has been learned about GAC issues and what works in the way of mitigation tools and approaches Anti-Corruption Action Plans (ACAPs) developed for high risk projects, as appropriate (avoid “ticking the box”)

4. Improving Development Outcomes “Smart Project Design” Six Key Elements Pursue governance issues thru project and/or “parallel track” approach Focus carefully on reducing impact of GAC issues on development outcomes Strengthen internal accountability through the project’s “control environment” (procurement, financial management auditing, information availability, etc.)

5. Improving Development Outcomes “Smart Project Design” : Six Key Elements (cont’d) Strengthen external accountability – from the demand side (participation, consultation, community voice, etc.) Ensure effective project oversight and supervision Develop and implement a well- thought-out communications plan designed to send the right signals and help to build sustainable coalitions for change

6. Improving Development Outcomes Anti-Corruption Action Plans A Judgment is required as to when a formal, written ACAP is needed or is desirable “ACAP” may be Governance and Accountability Action Plan (or similar title) Links Sector vulnerabilities (VCA), country-specific risks (GPE), and a menu of options for mitigating risks Options: “Supply Side” and “Demand Side”

7. Improving Development Outcomes Risk Mitigation Emerging Good Practices Supply Side Initiatives: Introduction of e-procurement to enhance the transparency of the tendering process Extending the audit process to include technical, performance, or “value for money” audits Developing web sites for making project information available to the public (e.g., on procurement and contract management)

8. Improving Development Outcomes Risk Mitigation: Emerging Good Practices Demand Side Initiatives: Development of “user groups” to engage project beneficiaries in project design/implementation Use of consumer satisfaction surveys/citizens report cards to make service providers more responsive Development of well-publicized complaints lines to encourage the reporting of “irregularities”