Encouraging SME Participation in Public Procurement Markets in MENA
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1 Encouraging SME Participation in Public Procurement Markets in MENA LEBANON IOF PALESTINE BIRZEIT UNIVERSITY iegovern Impact Evaluation Workshop Istanbul, Turkey January 27-30, 2015 : #iegovern
2 What is the problem? What is the problem? - Although SMEs are the main source of employment/livelihood in the MENA region (40% of private sector employment & more than 50% of GDP contribution), they are not participating in public procurement. Intervention - Training program for SMEs in Lebanon and Palestine in order to build capacity and enhance awareness concerning the application process for public procurement. This program is being implemented in 8 countries and expected to deliver 80 workshops before June
3 Research questions Research Questions Does this intervention increase/facilitate the participation of SMEs in public procurement? Theory of change Input: Training material, TOT Output: 1800 SMEs in the MENA region trained to gain Knowledge, to increase Awareness, develop Skills and change Attitude (Trust, Confidence) Short Term Outcome: Participation in P.P. by SMEs increased. Long Term Outcome: Increased employment and revenue. 2
4 Methods & Design Method Propensity Score Matching, Difference and Difference Sample size SMEs SMEs in Palestine (half treatment, non-treatment) SMEs in Lebanon (half treatment, non-treatment) 3
5 Outcomes & Measurement Outcomes: - Knowledge/Perception Test score of participants after the intervention. - Percentage of trained SMEs applying for public procurement within the first 6 months after the training. Unit(s) of observation: - SMEs (private sector), participants of the training 4
6 Thank You! WEB facebook.com/ieknow #impacteval blogs.worldbank.org/impactevaluations microdata.worldbank.org/index.php/catalog/ impact_evaluation #iegovern Impact Evaluation Workshop Istanbul, Turkey January 27-30, 2015
7 Public Financial Management Project ETHIOPIA iegovern Impact Evaluation Workshop Istanbul, Turkey January 27-30, 2015 : #iegovern
8 What is the problem? What is the problem? Efficiency, accountability and transparency of government finance system is held back by the quality, comprehensiveness and timeliness of government financial reporting Intervention(s) Implementation of integrated financial management information system(ifmis), training and incentives to selected staff in public bodies in Ethiopia 1
9 Research questions Research Questions What is the impact of adopting IFMIS on the problem? Which type of support to the operators of the systems best contribute to the outcomes? Theory of Change: Program implementation -> Improves processes -> Decisions improve -> improved efficiency, transparency, comprehensiveness and timeliness 2
10 Methods & Design Method Randomized control trial & differences in differences Rollout in 2 stages, participants randomly selected and randomly assigned to one of 2 treatments (IFMIS and not IFMIS) and different levels of support for 2 sub-groups Clusters / sample size 490 agencies 245 first sample group (they get IFMIS, other group waits for second phase) 245 split, 195/50. Small group gets intensive help, others normal support 3
11 Outcomes & Measurement Outcomes: 1. Reduce delays in monthly financial reports 2. Avoid backlog in bank reconciliation 3. Stronger expenditure commitment control 4. Increase number of clean financial audit opinions Unit(s) of observation: For outcomes 1,2 & 3 = agency/month (also possible by year) 4 = agency/year 4
12 Thank You! WEB facebook.com/ieknow #impacteval blogs.worldbank.org/impactevaluations microdata.worldbank.org/index.php/catalog/ impact_evaluation #iegovern Impact Evaluation Workshop Istanbul, Turkey January 27-30, 2015
13 Public Distribution System Reform OMEGA DFID INDIA iegovern Impact Evaluation Workshop Istanbul, Turkey January 27-30, 2015 : #iegovern
14 What is the problem? Problem The process of delivering subsidised food grains is inefficient and ineffective PDS prone to systemic leakages Citizens unable to fully access entitlements under the Public Distribution System for food Interventions (A) End-to-end automation of procurement, storage, and distribution of grain (B) Social audits and information bulletins Research Question(s) What is the impact of automation and citizen engagement on reducing leakage and citizen welfare? What is the marginal effect of social audit and information bulletins on both of these outcomes? 1
15 Treatment A Hypotheses & Mechanisms Mechanisms Automation: computerisation of FPS (stock management; tracking movement; reducing info black boxes, ease of payments and clear receipting); digitisation of beneficiary database (reducing targeting errors) Citizen engagement: information bulletins (awareness of entitlements & rights); social audit (grievance redressal channels) Working Hypotheses A. Automation will reduce leakage and improve citizen welfare in and of itself At the margins, with a greater impact on leakages than welfare B. Marginal impact of social audit will reduce leakage and improve citizen welfare, with larger gains to citizen welfare than leakage No Citizen Engagement Treatment B Citizen Engagement No Automation Control/baseline (-) leakage (+) citizen access Automation (-) leakage (+) citizen access (-) leakage (+) citizen access 2
16 Methods & Design Method Exploit extensive computerized data collection that is now centrally stored to detect leakage in the current system Compare this amount of leakage to Auditor General s PDS performance estimates (A) Evaluation of automation impact on Fair Price Shops (FPS) Exploit staggered phase in of FPS automation across Gram Panchayat and urban local bodies (Diff-in-Diff) (B) Evaluation of the impact of interacting automation with citizen engagement Possibility of randomising social audit treatment Exploit time lag between completion of automation and introduction of social audit Clusters / sample size PPCs and DSCs spanning 24 out of 30 districts 200 FPS (32 urban, 169 rural) Household survey (size TBD) 3
17 Outcomes & Measurement Outcomes 1. Leakage % of allocated grains that end up in FPS From PACs to DSC DSC to FPS % of grains that go to eligible beneficiaries 2. Citizen welfare Timeliness of delivery % of ration received Quality of grain delivered to eligible beneficiaries Adherence to FPS mandate (days opened, hours opened) Unit(s) of observation FPS Gram Panchayats Beneficiary households 4
18 Thank You! WEB facebook.com/ieknow #impacteval blogs.worldbank.org/impactevaluations microdata.worldbank.org/index.php/catalog/ impact_evaluation #iegovern Impact Evaluation Workshop Istanbul, Turkey January 27-30, 2015
19 Don t Mess with Taxes GUATEMALA SAT (TAX ADMINISTRATION) iegovern Impact Evaluation Workshop Istanbul, Turkey January 27-30, 2015 : #iegovern
20 What is the problem? What is the problem? - Low tax revenue as a share of GDP, lowest of the region at 10.6% (very little non-tax revenue) Intervention(s) - Improve the efficiency of audit systems to increase tax compliance 1
21 Research questions Research Questions What is the value of adding third-party information (e.g. custom information) to integral audits? To select cases for auditing To conduct actual auditing - Calculate amount evaded using third-party/customs information - Reduce cost of auditing This will inform the design of a cost-effective audit system to improve tax compliance and revenue, and provide tools for integration of customs and domestic revenues. 2
22 Methods & Design (i) RCT (with difference in difference) 3 x 2 design 3
23 Methods & Design (ii) Clusters: VAT Registered firms Sample size: 25,000 firms stratified by o Existing size strata [Large, Medium and Small (90%)] o Industrial sector ISIC [Agriculture, Manufacturing, Wholesale & Retail, Professional Services, Other] Other All World Bank project new IT system and new management and rules/procedures across the board 3
24 Outcomes & Measurement Outcomes: - Amount of evasion detected. - How many accept the audit decision of SAT - Immediate tax collection (measure of efficiency of tax administration). - How many cases were solved in pre-trial phase - Intermediate Tax collection (before trial) - Longer term: How many went to court And final tax collection (after trial) Measurement - Administrative data from SAT. - Cost estimation based on existing SAT measures (for each process and time) and possibly an internal study/survey. Unit(s) of observation: - E.g. Registered firms. 4
25 Thank You! WEB facebook.com/ieknow #impacteval blogs.worldbank.org/impactevaluations microdata.worldbank.org/index.php/catalog/ impact_evaluation #iegovern Impact Evaluation Workshop Istanbul, Turkey January 27-30, 2015
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