How to achieve public policy reform by surprise and confusion

This is a great quote from Simeon Djankov, former Finance Minister of Bulgaria (and founder of the World Bank Doing Business indicators) - pulling slightly in the opposite direction of the Tony Blair school of thought on reform (ruthless prioritisation), Djankov instead suggests go off 7 different directions at once in order to surprise and confuse the opposition.  

"Well, one thing that did certainly affect it is the tactics of how to reform, in the sense that, certainly in academia, you are basically told you need to think deeply. Then there are a lot of pressure groups, lobbies, so you need to talk to them. You need to use the media for communicating the benefits of reform, and so on. Some of the reformers, successful reformers that I spoke with, before I joined the Bulgarian government, basically I said, 'You go, and on Day 1, you surprise everybody. So, you go in every direction you can, because they will be confused what's happening and you may actually be successful in some of the reforms. So, this is what I did. I went to Bulgaria in late July 2009; the Eurozone Crisis had already started around us. Greece was just about to collapse a few months later. So, there was kind of a feeling that something is to happen. But, instead of going, 'Let's now do labor reform,' then, 'Let's do business entry reform,' in the government we literally went 6 or 7 different directions hoping that Parliament will be, you know, confused or too happy to be elected--they were just elected. And we actually succeeded in most of these reforms. When I tried to do meaningful, well-explained reforms two years after, they all got bogged down, because lobbying will essentially take over and, 'Not now; let's wait for next year's government,' and so on."

From the always interesting Econ Talk.

Innovations in Bureaucracy

Last week I was at the “World Innovation Summit for Education” (WISE) in Doha, and I don’t think I heard the word “bureaucrat” once. Clearly the organisers don’t read Blattman or they would know that Bureaucracy is so hot right now.

The World Bank might be a bit more ahead of the curve here, and held a workshop earlier this month on “Innovating Bureaucracy.” I wasn’t able to attend (ahem, wasn’t invited), and so as the king of conference write-upsdoesn’t seem to have gotten around to it yet, I’ve written up my notes from skimming through the slides (you can read the full presentations here).

Tim Besley — state effectiveness now lies at the heart of the study of development. Incentives, selection, and culture are key, and it is essential to study the 3 together not in isolation.

Michael Best — looks at efficiency of procurement across 100,000 government agencies (each with decentralised hiring) in Russia. Wide variation in prices paid by different individuals/agencies, with big potential for improvement.

Zahid Hasnain — presents Worldwide Bureaucracy Indicators (WWBI) for 79 countries. Public sector employment is 60% of formal employment in Africa & South Asia, and is usually better paid than private employment.

Richard Disney — provides a critique of simple public-private pay gap comparisons — need to consider conditions, pensions, and vocation. Lack of well-identified causal studies.

James L. Perry — 5 key lessons on motivating bureaucrats in developing countries.

(1) select for ‘vocation’

(2) work on prosocial culture

(3) leverage employee-service beneficiary ties

(4) teacher newcomers public service values

(5) develop leaders who model public service values. (full paper here)

Erika Deserranno: Summary of experimental lit on financial & non-financial incentives for workers. Both can work when well designed, or backfire when not. 3 conditions for effective performance-based incentives;

(1) Simple to understand

(2) Linked to measurable targets

(3) Workers can realistically affect targets 

Yuen Yuen Ang — How has China done so well in last 40 years without democratic reform? Through bureaucratic reform which has provided accountability, competition, limits on power. 50 million bureaucrats: 20% managers & 80% frontline workers. Managers have performance contracts focused on outcomes, with published league tables. Frontline workers have large performance-based informal compensation. (bonus podcast edition with Alice Evans here)

Stuti Khemani — research & policy rightly moving from short-route accountability to long-route. Need much more evidence on how public sector workers are selected. One example suggests elected Chairpersons have higher cognitive ability, higher risk aversion, lower integrity.

Jane Fountain — government IT projects fail in part because they’re too large — should move to agile development (build small and quick, get feedback, revise)

Arianna Legovini — improved inspections of health facilities in Kenya seem to be improving patient safety.

Daniel Rogger — new empirics of bureaucracy — World Bank bureaucracy lab investing in substantial new descriptive work on bureaucracy and bureaucrats using both surveys & administrative data, as well as RCTs on reforms

Jim Brumby, Raymond Muhula, Gael Rabelland — two helpful 2x2s — need to understand both capacity & incentive for reform, and then match data architecture to difficulty of measuring performance.