Good Governance Monitoring Report – Issue no. 1

 

 

 

Towards Better Governance in Palestine through Public Administration and Civil Service Reform

 

According to UNDP, governance is “the exercise of economic, political and administrative authority to manage a country's affairs at all levels. It comprises the mechanisms, processes and institutions, through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations and mediate their differences.”

Good governance ensures that political, social and economic priorities are based on broad consensus in society and that the voices of the poorest and the most vulnerable are heard in decision-making over the allocation of development resources.   According to UNDP, “economic governance includes decision-making processes that affect a country's economic activities and its relationships with other economies. It clearly has major implications for equity, poverty and quality of life. Political governance is the process of decision-making to formulate policy. Administrative governance is the system of policy implementation. Encompassing all three, good governance defines the processes and structures that guide political and socio-economic relationships.”

When assessing government performance from a good governance perspective we must ask the following question: how successful are public institutions in promoting the achievement of national development goals by establishing, inter alia, favourable political, legal, economic and social conditions?  We must also determine the extent to which public institutions operate in accordance with the following core principles of good governance:

  • Participation Citizens should have a voice in decision-making, either directly or through legitimate intermediate institutions that represent their interests. Such broad participation is built on freedom of association and speech, as well as capacities to participate constructively in the public decision making process.
  • Rule of law - Legal frameworks should be fair and enforced impartially. They should constitute a solid reference for governing the relationship between the different institutions of government on the one hand, and between government and the citizens, civil society and the private sector on the other...
  • Transparency - Transparency is built on the free flow of information.  Processes, institutions and information are directly accessible to those concerned with them, and enough information is provided to understand and monitor them.
  • Responsiveness - Institutions and processes try to serve all citizens and stakeholders.
  • Consensus orientation - Good governance mediates differing interests to reach a broad consensus on what is in the best interests of the group and, where possible, on policies and procedures.
  • Equity - All men and women have opportunities to improve or maintain their well-being.
  • Effectiveness and efficiency - Processes and institutions produce results that meet needs while making the best use of resources.
  • Accountability - Decision-makers in government, the private sector and civil society organisations are accountable to the public, as well as to institutional stakeholders. This accountability differs depending on the organisation and whether the decision is internal or external to an organisation.
  • Strategic vision - Leaders and the public have a broad and long-term perspective on good governance and human development, along with a sense of what is needed for such development. There is also an understanding of the historical, cultural and social complexities in which that perspective is grounded.

Since the formation of the PNA, direct and indirect taxes, custom and other duties paid by Palestinian citizens have historically constituted more than one-half of the public budget, with the remainder being funded by grants, budget support, and public debt.  Palestinian citizens have the right to expect the PNA to deploy these resources in line with the core principles of good governance. 

 

The PNA has faced enormous challenges and obstacles, primarily related to the political, economic and social instability and fragmentation caused by the conflict with Israel, which have contributed to its limited success in building institutions of good governance.  Despite the difficult environment, the PNA has made some progress in the area of public administration and civil service reform (particularly in public financial management) but, according to most independent observers, it has failed to make meaningful progress in certain crucial areas such as security and judicial reform.  So whilst it has made many achievements, the PNA must implement a number of high priority reforms before it can claim that the basic elements of a system of good governance are in place.

 


Achievements

The report of the General Control Bureau in 1996, the 100-Day Plan of President Mahmoud Abbas of 2002, and the functions of the Ministerial Reform Committee dealt with a number of reform issues and priorities including the presidential, legislative, and local elections. These also dealt with, inter alia, separation of powers, financial reform, security reform, and public administration and civil service reform issues.   The result of these efforts were a number of achievements in the area of governance, including:

 

 

§         Improvement of basic health and education services leading to better outcomes for citizens (e.g., higher enrolment rates, improved test scores, increased life expectancy, lower infant mortality);

§         Establishment of the Central Elections Committee to oversee free and fair Presidential, Legislative and Municipal elections;

§         Establishment of a single Central Treasury Account (CTA);

§         Implementation of an enhanced budget process and basic accounting system;

§         Establishment of the Palestine Investment Fund to oversee public enterprises;

§         Implementation of a process for annual preparation of a medium-term development plan;

§         Passing of a single, unified civil service law covering the West Bank and Gaza;

§         Implementation of centralized, strengthened control of the PNA payroll;

§         Implementation of a model organizational structure for ministries and agencies;

§         Rationalization of the number of non-ministerial agencies and making them accountable to ministries;

§         Capacity building in the Palestinian Legislative Council; and,

§         Nominations to the Supreme Judicial Council, following the signing of the Judicial Authority Law, and appointment of additional judges and prosecutors.

 

Priority reforms for the future

These are a number of shortcomings and gaps in the public administration and civil service in Palestine.  The following priority reforms of the institutions of government, requiring interventions in the Executive, Legislative and Judicial branches, would take the PNA a long way towards implementing the basic principles of good governance.

 

§         Policy & decision-making – Enhance the ability of the prime Minister and his Cabinet to focus on strategic policy and decision-making by strengthening policy analysis and policy formulation capacity in the Cabinet secretariat and line ministries.

§         Government performance and service delivery – Establish a transparent, participatory mechanism for preparing a long-term vision for Palestinian reform and development (a “National Agenda”) and establish a unit in the Prime Minister’s Office to monitor and evaluate performance of ministries in line with this national vision.

§         Institutional and organizational development – Implement a medium-term programme, managed by an independent, professional unit in the Prime Minister’s Office, to rationalize the number, mandates, structures, operating procedures and staffing of government ministries and agencies to maximize efficiency and cost-effectiveness and ensure the long-term affordability of the public service.

§         Human resources management – Establish independent, effective oversight of human resources policy and practices at the centre of government, delegate human resources administration to line ministries and implement a single human resources management IT system that is integrated with the payroll system.

§         Financial resources management – Integrate the medium-term planning process with the budgeting process, enhance transparency and PLC oversight of the integrated PNA budget, establish an effective and independent audit function reporting directly to the PLC and implement affordable pay and pensions policies.

 

The need for political will and leadership in public administration and civil service reform

The previous government began to take steps towards designing a “Public Management Reform Programme” (PMRP) addressing the five areas of priority reforms described above under the umbrella of a national reform and development vision (national agenda) linked to the existing MTDP process.  The PMRP may be summarized as follows:

 

 

 

However, the previous government had limited success in establishing effective institutional arrangements to implement its governance reform agenda.  Sustainable governance reform can only be achieved if it is domestically driven, based on the wishes of the Palestinian people and their leadership. In order to play it’s part in advancing the reform agenda the PNA must establish:

 

§         high-level political leadership and ownership of the reform agenda by the President, Prime Minister and Cabinet; and,

§         credible and effective institutional arrangements for the co-ordination, implementation and monitoring of governance reform with clear accountability to the PLC.

 

Once proper political and technical leadership arrangements are in place, the National Agenda, the MTDP (integrated with the budget) and the PMRP will provide a credible, coherent and Palestinian-owned framework under which donors must provide coordinated support for Palestinian governance reform.

 

 

 

 

 

 

 

Published by Good Governance Initiative - 2006

 

 

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