Good Governance Monitoring Report – Issue no. 1

 

 

 

1.  Executive Summary

 

The Good Governance Initiative (GGI) is a coalition of civil society organizations, academics, and community activists seeking to promote good governance in Palestine through providing citizens with regular, impartial assessments of public sector performance.  This first monitoring report of the GGI focuses on assessing government performance in certain key areas during the period from 1st April 2006 to 30th September 2006.  The assessment is based on a set indicators developed by the GGI to measure the overall performance of the Executive and Legislative branches of government taking into account fundamental principles of integrity, transparency accountability, effectiveness, efficiency and the rule of law.  

 

This report relies to a large extent on information and data gathered from official government sources and media reports.  Unfortunately, obstacles were faced in information and data gathering due primarily to of lack of cooperation from some government officials concerned about the political ramifications of disclosure; this was compounded by the ongoing public sector strike.  Accordingly, this report is necessarily limited to assessing government performance in those areas where information was accessible.  

 

The publication of this report and the period it covers coincide with an unprecedented political, economic and social crisis in the occupied Palestinian territories.  This crisis has severely undermined the new government’s ability to manage the public sector and deliver public services and any assessment of the government’s performance must be viewed in this context.  Accordingly, the realities on the ground have resulted in a shift in the good governance discourse from considerations of what the government is doing to improve public sector performance towards how international responses to the election result may be undermining public institutions.  However, it remains important to keep an eye on trends and developments in governance, some of which are not organically related to current crisis.

 

President's Office

 

The President’s Office has historically played a very limited role in formulating a vision for, and guiding the implementation of, PNA reform.  This has lead some commentators to view the President's election manifesto call for reform as a mere slogan which has still not been translated into a detailed, realistic reform program.  This state of affairs has not improved during the period covered by this report and in fact certain developments, such as the institutionalization of an international funding mechanism (the ‘Temporary International Mechanism’) that by-passes the Ministry of Finance, represent the beginnings of a reversal of the modest achievements in reform made by previous governments. It is of course difficult under the current circumstances to address strategic leadership issues which were never properly dealt with during prior, more stable periods but the President’s office must avoid taking decisions and actions that undermine the longer-term governance reform agenda.

 

Cabinet of Ministers

 

Cabinet meetings continued broadly as planned despite various travel restrictions and other logistical difficulties. The Cabinet met 26 times during the period covered by this report, taking more than 300 decisions.  Most of these decisions were administrative decisions, not policy decisions.  Whilst a focus on operational, administrative matters is not necessarily surprising during a period crisis, the Cabinet’s inability to focus on strategic policy decisions to address the ongoing political and socio-economic is a weakness of great concern.   It is also important to note that excessive focus on administrative decisions at the expense of strategic policy development has been a major weakness of successive Cabinets ever since the PNA was formed.

 

Transparency of the Cabinet functions gradually diminished over the period of covered by this report.  Moreover the Cabinet has not carried out any tangible steps in reforming public administration and civil service, or even continued the work of the previous government in this area.

 

Despite election manifesto commitments to address lack of progress in public administration and civil service reform, including in particular corruption in the PNA and the inflated size of the public sector payroll, the new Cabinet has not taken any tangible, positive steps forward in this area.  In some cases, the situation has in fact worsened; the Cabinet has approved approximately 10,600 new posts in the public sector, representing an increase of approximately 7.5%.  

 

Ministries of Health and Education

 

The performance of the PNA in the provision of health services has come under increased pressure due to the deteriorating economic situation as well as Israeli military operations and closures. Allocation of funding to the MoH has historically been low and in 2005 and, by default 2006, only 7% of the public budget was allocated to MoH compared with the allocations to the Ministry of Interior and National Security of 24.3%.  MoH debts have increased to USD 20 million in 2006 and drugs inventory has dropped to critical levels. During the period covered by this report MoH policy has focused on rationalizing non-critical curative services, including diagnostic services, surgeries and outpatient clinics.

 

Students were on summer vacation for most of the period covered by this report and, as such, it is difficult to assess education service delivery since the formation of the new government.  However, there have been some indications of what the future might hold.  For example, more than 1,200 new teachers have been appointed through a highly transparent process involving public advertisement of open positions and selection standards, and objective testing of candidates.  On the other hand MoEHE, as was the case under previous governments, made no significant progress in relation to the transparency of its policies, strategies and resource allocation decisions or in improving coordination with non-governmental service providers in the education sector.  Accordingly, other than the recruitment of new teachers there is little evidence that the MoEHE adequately prepared itself for the new school year and, in particular, the threatened teachers’ strike.

 

Ministry of Finance

 

The international aid embargo placed on the 10th government has significantly worsened the fiscal position of the PNA.  The fiscal position was already weak prior to the elections and has now reached a point of serious crisis.  The new government is now failing to pay the public sector salaries on a regular basis and has not produced a budget for 2006 (on August 29th 2006 was exempted from doing so) due to the prevailing crisis.  The PNA look set to resort to various informal coping mechanisms to navigate this financial crisis which seem likely to undermine previous achievements in the area of public financial management reform and, in particular, the single treasury account, the public budget process and the centralized payroll system.

 

Palestinian Legislative Council

 

Fiscal and security developments since the legislative elections have created an extremely challenging operating environment for the PLC.  More than 40 Palestinian parliamentarians have been incarcerated by the Israeli security services and ongoing military operations and domestic conflict pose an ongoing threat to the peaceful operation of the PLC.  Up until the beginning of September, the PLC continued to hold regular sessions but there have been no subsequent meetings.

 

During the PLC sessions which did take place during the period covered by this report, the primary focus was either on internal administrative issues and overturning previous legal instruments (primarily Presidential decrees).  There was very little focus on discussing the ongoing political, economic and security challenges and no substantive work on legislative debate or drafting.

 

 

 

 

 

 

 

 

Published by Good Governance Initiative - 2006

 

 

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