Application of Result Based Management in the Public Sector Projects: A Study on the Readiness Situation of Bangladesh

Abstract

Development of a country depends on the extent of its efficient and effective use of public resources. Over the past two decades, there have been rising pressures on governments and organizations around the world to develop a better public management system for efficient and effective use of public resources in the implementation of the public sector projects. Therefore, the United Nations Organizations have undertaken extensive efforts to introduce Result Based Management (hereinafter RBM) approach in different countries for better management of public resources. During the last decade of the twentieth century RBM has been applied increasingly in different countries. The GOB also started to improve the readiness situation with a view to adopting RBM approach in the implementation of public sector projects in the late 1990s. Since then, the GOB has already been implemented six projects to improve the monitoring and evaluation capacity of IMED and project preparation and implementation capacity of the Executing Agencies as well as capacity development of the government officials. The GOB is also implementing another project for the same purpose. Therefore, an attempt has been made to assess the extent of improvement of the readiness situation of Bangladesh and examine whether the achieved level of the readiness situation of Bangladesh is satisfactory to adopt RBM approach in the public sector projects. The study was conducted in IMED, Planning Division and Planning Commission of the Ministry of Planning. The nature of the study was both explanatory and evaluative. To attain the objectives of the study qualitative data has been used as dominant data and quantitative data has been used as less dominant data. Both qualitative and quantitative data were collected from mainly primary sources that are seven selected projects (various project documents and reports) and 165 of BCS economic cadre officers (purposively selected) by using structured questionnaire during 06 June to 28 September 2011. An attempt has been made to assess the level of improved organizational capacity of IMED and EAs through content analysis of project documents and relevant reports. It has been observed that a significant improvement has occurred in IMED. Improvements were focused more on function and less on structure and staffing arrangement. The improvements are establishment of CPTU in IMED, revision of reporting formats, publication of reporting formats and user guide, development of monitoring and evaluation framework, development of sector based report formats, installation of web-based MIS and capacity development of IMED officials in applying RBM and ICT tools to project management. Besides, a Five-year Strategic Plan for IMED has been developed to further improve its organizational capacity. But the implementation of Strategic Plan is yet to start which is of utmost necessity for adopting RBM approach in the public sector projects. It has also been found that a remarkable improvement has occurred in EAs. The Planning Division has integrated the PCP and PP into one project document, revised the project document formats, approval processes for project document and guidelines for preparation of project document, and enhanced the recruitment rules for appointing the PDs and other key project personnel. The Finance Division has also been revising the delegation of financial powers for the PDs at regular intervals to accommodate price escalation and other changing circumstances. The CPTU produced the Public Procurement Act 2006 and the Public Procurement Rules 2008. The enhancement of a web-based e-Government Procurement has been continuing. Sixteen procuring entities of four selected EAs are already getting e-GP facilities. However, the process of strengthening the organizational capacity of IMED and EAs has not yet been completed. The organizational capacity of IMED and EAs is increasing gradually through implementation of some TA projects under the initiatives of GOB with the help of ADB, the World Bank, UNDP and UNFPA. But it is not enough to move towards application of RBM approach in the public sector projects in Bangladesh. Finally an assessment has been made to determine the improvement of the readiness situation of Bangladesh through analysis of respondents view. It is found from the data analysis that the monitoring and evaluation capacity of IMED have improved to a moderate extent; while the system of ensuring transparency and accountability of IMED has improved to a very low extent. As a result the readiness situation of IMED has not improved at much. On the other hand, project preparation capacity of EAs has improved to a low extent; project implementation capacity of EAs has improved moderately and the system of ensuring transparency and accountability of EAs has improved to a very low extant. As a result, the readiness situation of EAs has not improved at much. As a consequence of above mentioned results; the readiness situation of Bangladesh has improved to a low extent which is not satisfactory for adopting RBM approach in the public sector projects. A number of problems have been identified that hampered the adoption of RBM approach in the public sector projects in Bangladesh. Despite existence of many problems some sort of improvement of the readiness situation of Bangladesh has been achieved. Project preparation and implementation capacity of EAs and monitoring and evaluation capacity of IMED are gradually improving. Procurement procedure has been improving rapidly since the establishment of CPTU in IMED. Main recommendations were: undertake initiative to implement IMED Strategic Plan; undertake initiative to approve RBME-2 project; undertake follow up project to PPRP II and ASICT projects; and development of an RBM model according to the socio-economic structure of Bangladesh. Considering the improvement of the readiness situation of Bangladesh it might be concluded that application of RBM approach in the public sector projects will not be effective at present. The GOB should undertake more initiatives to adopt RBM approach in the public sector projects until the readiness situation of Bangladesh attains a satisfactory level.