JNNURM: An external view

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JNNURMAn external view

• Chris Heymans
• ASCI-MoUD workshop, Hyderabad
• 7-8 June 2007

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An all-India effort needed to face the
challenges of urban service delivery

• Importance of cities increasingly recognized
• Economic role
• Services to households, business etc.
• JNNURM a major step to improve fiscal incentives
  for services
• Reward performance reform
• Make transfers more predictable, less volatile
• Improved targeting to reach the poor
• International lessons
• Accountability requires clear functional
  assignments
• Value of city wide and participatory planning
• Hard budget constraints enhance service provider
  efficiency
• Reward reforms that leverage capital market
  finance
• Transparent and predictable transmission of
  resources
• Move from projects to programs target
  unconnected households

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Three key incentives for reform
Connection subsidies to poor h/holds
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Fiscal incentives for institutional reforms
Tech As promote knowledge, innovation
downward accountability
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Need and agenda for institutional reform
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Key challenges

• Shift emphasis from infrastructure to reform
• Emerging reforms, but many still piecemeal and at
  back-end of MoAs
• Consultation participation to improve CDPs,
  projects, area sabhas
• Concerted capacity building not just training,
  but building systems
• Associated state reforms have to accelerate
  state control reduced
• Leveraging effect of JNNURM
• Get ULBs to plan more seriously for borrowing in
  CDPs
• Paradox weak ULBs want to borrow, strong ones
  not
• ULB fiscal health has to improve more vital than
  supply side action
• Synergy between two sub-missions
• Infrastructure governance
• Basic Services for the Poor
• Data to assist benchmarking, monitoring, cost
  recovery
• Links policy, appraisal, reform, lesson-learning

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What made the difference in other countries (e.g.
S-Afr, Brazil)?

• Many countries have incentive programs
• But cities have a choice nominal compliance or
  dynamic visioning, planning reform
• Key success factors
• The city has to take charge
• Shift from checklist to transformation focus
  towards visions
• Focus on service delivery outcomes, not
  infrastructure
• Citywide focus overcomes fragmentation, engage
  all agencies
• Concerted capacity building governance, finance,
  delivery
• Link planning to budgeting (often former is
  soft option budget office ignores it
• Think about leveraging
• Improve data all the time
• Expand cultivate participation