2. Managing the Politics of Reform: A Case Study on Coalition Building and Public Procurement Reform in the Philippines The World Bank Political Economy BBL Series Social Development Network The World Bank Washington D.C. Presented by: Ed Campos Adviser, WBIVP June 18, 2005 Presented to:

3. The World Bank PREM Public Sector Governance 2 Promoting Reforms: Changing the Landscape Status Quo (Bad Equilibrium) DesiredState (Good Equilibrium)

4. The World Bank PREM Public Sector Governance 3 Promoting Reforms: Changing the Landscape Status Quo (Bad Equilibrium) DesiredState (Good Equilibrium) Conditionality

5. The World Bank PREM Public Sector Governance 4 Promoting Reforms: Changing the Landscape Status Quo (Bad Equilibrium) DesiredState (Good Equilibrium) “Well Oiled Machine” “Well Oiled Machine” Reform coalition

6. The World Bank PREM Public Sector Governance 5 Background: Why Procurement Reforms?

7. The World Bank PREM Public Sector Governance 6 From ‘ Shot Gun ’ … The Great Wall of Corruption

8. The World Bank PREM Public Sector Governance 7 … to ‘ Laser Beam ’ … of Corruption The Great Wall

9. The World Bank PREM Public Sector Governance 8 Background: Why Procurement Reforms? Government procurement and tax collection are perceived to be the major sources of corruption:  4 of the top 5 most corrupt agencies featured prominently in government contracting  Approximately 20% of govt. contracts go to kickbacks/ commissions  Equivalent to P21 B in 2001 just for the national government; much larger if BOT transactions and local government are included Survey Findings Legal Foundations a Mess Over 100 laws, regulations, executive orders etc. governing governing public procurement

10. The World Bank PREM Public Sector Governance 9 Pre-bid Conference Pre-qualification (5-7 months) (2 weeks) Bid Analysis (1-3 months) Award of contract (1 - 1.5 months) 7.5 to 12 months

11. The World Bank PREM Public Sector Governance 10 Eligibility Check (1 day) Pre-bid Conference (2 weeks) Bid Analysis (1 - 4 weeks) Award of contract (1 month) Post-qualification (1 - 2 weeks) 2 to 3 months

12. The World Bank PREM Public Sector Governance 11 Getting from “bad” to good”?: Creating a Reform Coalition How tounify the Executive branch? How to unify the Executive branch? How tomobilize civil society groups? How to mobilize civil society groups? How tolink CSOs and reformers in government? How to link CSOs and reformers in government? How torecruit “champions” in the Legislature? How to recruit “champions” in the Legislature?

13. The World Bank PREM Public Sector Governance 12 Getting from “bad” to good”?: Creating a Well Oiled Machine How to unify the Executive branch? How to mobilize civil society groups? How to link CSOs and reformers in government? How to recruit “champions” in the Legislature? Ownership is critical “Shoot down” workshop Formation of TWG Revival of dormant GPPB Technical analysis matters

14. The World Bank PREM Public Sector Governance 13 Getting from “bad” to good”?: Creating a Well Oiled Machine How to unify the Executive branch? How to mobilize civil society groups? How to link CSOs and reformers in government? How to recruit “champions” in the Legislature? Disparate, diffused CSOs Formation of PWI Strategic Bank support

15. The World Bank PREM Public Sector Governance 14 Getting from “bad” to good”?: Creating a Well Oiled Machine cog PWI became the cog that tied all parties How to unify the Executive branch? How to mobilize civil society groups? How to link CSOs and reformers in government? How to recruit “champions” in the Legislature?

16. The World Bank PREM Public Sector Governance 15 Mobilizing Public Support Transparency and Accountability Network (20+ member groups) Walang Ku-Corrupt Movement (Youth) (Youth) PAGBA & AGAP (w/in Gov’t) CBCP (Church) Philippine Contractors Association (private sector – main stakeholder) Local chambers of Commerce (Private sector) Drew other civil society groups into the advocacy efforts and coordinated the activities

17. The World Bank PREM Public Sector Governance 16 Getting from “bad” to good”?: Creating a Well Oiled Machine champions:“investing for the future” champions: “investing for the future” strategic positions How to unify the Executive branch? How to mobilize civil society groups? How to link CSOs and reformers in government? How to recruit “champions” in the Legislature?

18. The World Bank Usec DBM Usec PWM Director DBM Advisory team PWI Sec DBM Other Usecs DBM Leadership Structure

19. The World Bank Usec DBM Usec PWM Director DBM Advisory team PWI Sec DBM Gov’t experts Other Usecs DBM

20. The World Bank Usec DBM Usec PWM Director DBM Advisory team PWI Sec DBM Other Usecs DBM Gov’t experts TAN TAN U Student councils Radio/TV hists Bishops PAGBAAGAP PCA MBC PCCI journalists

21. The World Bank Usec DBM Usec PWM Director DBM Advisory team PWI Sec DBM Chair App Lower house Chair Cons Rule Senate Other Usecs DBM Gov’t experts TAN TAN U Student councils Radio/TV hists Bishops LH App Staff Senate CR Com Sraff PAGBAAGAP PCA MBC PCCI League of provinces journalists

22. The World Bank Usec DBM Usec PWM Director DBM Advisory team PWI Sec DBM Chair App Lower house Chair Cons Rule Senate Other Usecs DBM Gov’t experts TAN TAN U Student councils Radio/TV hists Bishops LH App Staff Senate CR Com Sraff PAGBAAGAP PCA MBC PCCI League of provinces journalists Communications

23. The World Bank PREM Public Sector Governance 22 Sustaining the Reform Process: The Media Campaign ’Glue’ Became the ’Glue’ that linked reformers in government, civil society, legislators, and the general public “Public relations drive + advertising blitz + political campaign” Needed local company with special skills to carry this out …

24. The World Bank PREM Public Sector Governance 23 Reaching Out Radio: The swath & the dagger The Media Campaign: The Communications Strategy Advertising: Creating a ‘brand name’ Advertising: Creating a ‘brand name’

25. The World Bank PREM Public Sector Governance 24 grant agreement amounting to US$1.01 million to promote the adoption of transparent and participatory procurement mechanisms, The World Bank, the Department of Finance, and the Transparency and Accountability Network Foundation, Inc. (TAN), a civil society anti-corruption coalition, signed a grant agreement amounting to US$1.01 million to promote the adoption of transparent and participatory procurement mechanisms, which can help improve the delivery of poverty reduction programs in poor municipalities in the country.

26. The World Bank PREM Public Sector Governance 25 Requisites of Change Management John Kotter, 1996 CHANGE establishing a sense of urgency 1 creating a guiding coalition 2 developing a vision and strategy 3 communicating the change vision 4 empowering broad based action 5 generating short term wins 6 consolidating gains & producing more change 7 embedding change in the culture 8

27. The World Bank PREM Public Sector Governance 26 Implications for Donors May need to “spice up” the way we provide technical assistance and advice Need to focus more on implementation, steps to make reforms happen in complex political environments -- in addition to technical work Need to focus more on implementation, steps to make reforms happen in complex political environments -- in addition to technical work Have to find creative ways to help finance this process Have to find creative ways to help finance this process

28. The World Bank PREM Public Sector Governance 27 Thanks!