Aga Khan Fund for Economic Development The Pro Poor Integrity (PPI

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Aga Khan Fund for Economic Development The Pro Poor Integrity (PPI Powered By Docstoc
					   Capabilities Policy Lab
    for PPI Partners in
    Kenya and Uganda
    January 11-13 January, 2010

         Mombasa, Kenya




Trainee’s Handbook




         January 2010
                                              The Pro-Poor Integrity Project




                                                               Contents

Glossary ................................................................................................................................... 2
Extract from the United Nations’ Norms of Good Local Governance .................... 4
Examples of Typical Vision Statements of Local Governments .............................. 6
Sample Local Government Code of Ethics .................................................................... 8
Local Authorities Model Code of Conduct, United Kingdom ................................ 10
Balanced Scorecard Basics ............................................................................................... 15
Case Study: A New Airport for Pwani Municipal Council (PMC) ........................ 18
Organizational Integrity: A Rapid Self-Assessment Tool ........................................ 20
Internal Integrity Surveys.................................................................................................. 23
MDGs Baseline Indicators for the Four Targeted Sectors ........................................ 27
Suggested Readings ............................................................................................................ 28




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Glossary
Alignment = Consistency between an institutional vision that describes its priority principles and
values and that institution’s actual operational character; harmony within internal working
relationships and internal-external relationships based on mutual trust; avoiding unnecessary discord
in the character of the work environment compared to other positive, nurturing life environments;
synergy and consistency between people, systems and the institutional culture. Alignment is also a
process in which consistency and synergy are created between ‘people, systems and culture’ so as to
institutionalize the organisation’s value(s). In Kaplan and Norton’s approach, four key perspectives
of alignment are identified: Financial, Client, Internal processes, Learning and growth (development
of intangible assets). Organizational integrity is concerned with alignment as a means of
implementing strategy, however it is specifically focused on the extent to which there is consistency
between the values of the organisation, its strategy and practice, and the extent to which the
allocation of resources develops the intangible capital to deliver trustworthy performance and
develop trust in its stakeholders.
“Alignment” (consistency and synergy, the organization is aligned around a common purpose – the
vision and values - to implement the strategy (i.e. how it is to achieve its vision) and how it
synchronises its activities to work as a team and the human and knowledge assets that it has)

Aspirational = Indicative of a strong innate or nurtured desire to achieve or surpass high standards
of technical and ethical performance.

Code of Conduct = A set of rules and standards intended to guide decisions, actions, and behaviour
within a variety of specified contexts, within a specified institution or profession.

Code of Ethics = A set of principles, values, and standards intended to cultivate a level of ethical
awareness that will guide decisions, actions, and behaviour within a variety of specified contexts,
within a specified institution or profession.

Competence = An assessment of a state of personal or institutional performance based on such
factors as effectiveness and efficiency, client/citizen orientation, responsiveness, overall public
service orientation, abilities to discern ethical dilemmas, and overall responsibility.
“Competence” (managerial and technical, reliability in delivering, how to evaluate factors of
effectiveness and efficiency)

Compliance = Adherence to the regimen of rules and regulations pertaining to a personal or an
institutional function; conformity with official requirements and regulations; an orientation towards
respecting both the spirit and the letter of the rules.

Efficiency = The wise use of resources (human, financial, political, social, environmental) to achieve
optimal results with minimal waste.

Effectiveness = A concept that is concerned with three elements:
1)      Standards – How comprehensively do they support the objectives and strategy of the
organisation?
2)      To what extent are the objectives of the strategy achieved in practice?
3)      To what extent are the intangible assets of the organisation developed to deliver the
strategy? (See appendix 1)


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Ethics = A set or system of moral principles and values to guide decision making; a consciousness of
what is morally important, required, or allowed. Ethics and integrity are concepts that resonate in all
societies. While significant differences exist in local moral values, cultures, and faith traditions, there
remains a strong and extensive body of universal morality common to all. This includes respect for
the human dignity of all persons, respect for human rights, the pursuit of justice, seeking to do no
harm, beneficence, providing care to those in need, and honoring the essential elements of integrity:
honesty, trustworthiness, wholeness, and virtue. The term ethics is used in three different but related
ways, signifying (1) a general pattern or way of life, (2) a set of rules of conduct or moral code, and
(3) a means to question our way of life and the rules of behaviour that we have established.
“Ethics” (morality, honesty, openness, benevolence, accountability

Ethical Principle = A rule or standard especially of good behaviour, right or wrong, good or bad; a
rule based on one or more moral values intended to guide decision making in a specific general
context but in multiple, variable applications.

Fairness = Marked by impartiality and honesty; free from self-interest, prejudice, or favouritism;
conforming with the established rules; consonant with merit or importance.
Governance = (1) The processes by which governments are chosen, monitored, and changed, and
(2) the systems of interaction between the administration, the legislature, and the judiciary. The (3)
ability of government to create and to implement public policy, and (4) the mechanisms by which
citizens and groups define their interests and interact with institutions of authority and with each
other.
Integrity = The state of being whole, characterized by a firm adherence to a code of moral values,
and by incorruptibility.
Morality and moral values = Of or relating to principles of right and wrong, good and bad, and
similar qualities in behaviour ; expressing, teaching, or conforming to a conception of right
behaviour; guidance from one's conscience or derived from ethical judgment; of or relating to virtues
and vices.

Trust = Assured reliance on the character, ability, strength, or truth of a person or institution;
indicative of a person or institution in which confidence is placed.
“Trust”(competence and benevolence; psychological state (thinking and feeling); choice behaviour
(rational, relational); truster, trustee, context of the relationship; sources of trust (dispositional,
history, reputational, category, role, rule); benefits of trust, including lower transaction costs,
willingness to collaborate, improved attitudes and perceptions; barriers to trust (suspicion, out-
group effects, unmet expectations)

Virtue = Personal character qualities marked by moral excellence and goodness. Also, any
particularly efficacious, good, or beneficial quality or advantage.




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Extract from the United Nations’ Norms of Good Local Governance
Principle One: Equity of access by the public to local government decision-making
processes, and to the local government provided services that address the basic necessities of
life

Description ~ The sharing of power leads to equity in the access to and use of resources.
Women and men must participate as equals in all local government decision-making,
priority-setting and resource allocation processes. Inclusive local governments ought to
provide everyone – be it the poor, the young or older persons, religious or ethnic minorities or
the handicapped, women as well as men – with equitable access to nutrition, education,
employment and livelihood, health care, shelter, safe drinking water, sanitation and other
basic services.

Practical means of realizing this principle include, inter alia:
 Ensuring that women and men have equal access to decision-making processes, resources
   and basic services and that this access is measured through gender disaggregated data;
 Establish quotas for women representatives in local authorities and encourage their
   promotion to higher management positions within municipalities;
 Ensure bye-laws and economic development policies support the informal sector;
 Promote equal inheritance rights for land and property;
 Establishing equitable principles for prioritizing infrastructure development and pricing
   urban services;
 Removing unnecessary barriers to secure tenure and to the supply of finance;
 Creating fair and predictable regulatory frameworks.



Principle Two: Efficiency in the delivery of public services and in promoting local economic
development

Description ~ Local governments must be financially sound and cost-effective in their
management of revenue sources and expenditures, the administration and delivery of
services, and in the enablement, based on comparative advantage, of government, the private
sector and communities to contribute formally or informally to the local economy. A key
element in achieving efficiency is to recognize and enable the specific contribution of
women, the poor, and minorities to the local economy.

Practical means of realizing this principle include, inter alia:
 Delivery and regulation of public services through partnerships with the private and civil
   society sectors;
 Promote equitable user-pay principles for local government provided services and
   infrastructure;
 Encourage local government departments to find innovative means of delivering public
   goods and services through management contracts;
 Promote integrated, inter-sectoral planning and management;
 Improving the effectiveness and efficiency of local revenue collection;

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   Removing unnecessary barriers to secure tenure and to the supply of finance;
   Developing and implementing fair and predictable legal and regulatory frameworks that
    encourage commerce and investment, minimize transaction costs, and legitimize the
    informal sector;
   Adopting clear objectives and targets for the provision of public services, which
    maximise the contributions that all sectors of society can make to local economic
    development; encourage volunteerism.




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Examples of Typical Vision Statements of Local Governments
A vision statement is a vivid idealized description of a desired outcome that inspires,
energizes and helps stakeholders to create a mental picture of their goal. The best vision
statements describe outcomes that are five to ten years away, although some look even
further out. For projects and goals, the vision statement should focus on the desired outcome
of the project/goal at its completion date.

North Local Council, eThekwini, South Africa
By the year 2020, the North Local Council will be a progressive and dynamic region within
the eThekwini Metropolitan Area, having developed its assets and resources to the benefit of
all its people and the wider region. It will become an attractive, unified and vibrant area
which is globally competitive, a tourist gateway and of a high international standard. By
redressing the historical imbalances, it will have improved the quality of life for all by
providing economic and other opportunities for the future.

Albuquerque, New Mexico, USA
A dynamic and diverse community celebrating its heritage, committed to sharing power and
opportunity and working in harmony to sustain our environment and create economic vitality
for this and future generations.”

Chesterfield County, Virginia, USA
To be the recognized leader in local government across the Commonwealth and the nation -
the standard by which others measure their progress and success. Every employee has a
personal devotion to excellence in public service and embraces the highest standards of ethics
and integrity. Every citizen takes pride in knowing that the county provides the best customer
service and highest quality of life available in any American community. And working
together we are committed to sustaining Chesterfield County as the premier community of
choice - First Choice.

Hennepin County, Minnesota, USA
To enhance the lives and communities of its citizens in ways that are compassionate,
respectful, ethical, innovative, and cost-effective.

Lithgow City Council, New South Wales, Australia
A centre of Regional excellence that:
     Encourages community growth and development
     Contributes to the efficient and effective management of the environment, community
       and economy for present and future generations

Shire of Beverley, Western Australia (Mission & Vision Statements)
Vision ~ To have a community:
     Providing a lifestyle in which traditional rural values of care, mutual respect,
       responsibility, personal security and supported independence underpin our
       relationships.
     Where our businesses and services can operate effectively to sustain the community.
     Where the appearance of our community assets, buildings and facilities is attractive
       and encourages use by both residents and tourists.

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      Where responsible management of our heritage and natural resources takes
       precedence to maintain our assets for future generations.
      Where community leadership is values and individuals have the opportunity to aspire
       and participate in that role.

Mission ~ To:
    Provide efficient, responsible Government to the district by promoting the concept of
       enabling leadership.
    Provide effective planning based on the development of the effective community
       networks to address:
          o Economic development and tourism.
          o Community affairs.
          o Environmental issues and land use.
          o Infrastructure development, services and governance.
    Support and encourage initiatives determined as a benefit to the district.
    Represent the interests and needs of the district to Government and other agencies.
    Develop effective partnerships with Government and other agencies.
    Develop effective partnerships with Government and other agencies to provide
       benefits to Beverley.


City District Government, Faisalabad, Pakistan
Vision ~ Pre-empting Poverty, Promoting Prosperity

Mission ~
We will provide high quality services which compare with the best in the country. We will
work with everyone who wants a better future for our District. We will establish an efficient,
effective and accountable District Local Government, which is committed to respecting and
upholding women, men and children’s basic human rights, responsive towards people’s
needs, committed to poverty reduction and capable of meeting the challenges of the 21st
Century. Our actions will be driven by the concerns of local people.




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Sample Local Government Code of Ethics

The Code of Ethics for City Managers' Association, Gujarat (CMAG)
City Managers' Association, Gujarat (CMAG) is the professional association of urban local
bodies in the state of Gujarat, India. A membership-based association, its members comprise
municipal bodies of Gujarat and institutions/individuals involved in the field of Urban
Governance. CMAG provides a common platform to the "City Managers" to interact,
exchange information and channelise their efforts to achieve common goals. It also acts as a
nodal agency to carry out various programmes to strengthen local governance. The
International City/County Management Association, Washington (ICMA), provided the
technical support in setting up the CMAG and contributed to the formulation of its Code of
Ethics. The 12 points of the Code of Ethics formulated by ICMA are accepted by CMAG :

1. Be dedicated to the concept of effective and democratic local government by responsible
elected officials and believe that professional general management is essential to the
achievement of this objective.

2. Affirm the dignity and worth of the services rendered by government and maintain a
constructive, creative and practical attitude towards urban affairs and a deep sense of social
responsibility as a public servant.

3. Be dedicated to the highest ideals of honour and integrity in all public and personal
relationships in order that the member may merit the respect and confidence of the elected
officials, of other officials and employees and of the public.

4. Recognise that the chief function of local government at all times is to serve the best
interests of all of the people.

5. Submit policy proposals to elected officials, provide them with facts and advice on matters
of policy as a basis for making decisions and setting community goals and uphold and
implement municipal policies adopted by elected officials.

6. Recognise that elected representatives of the people are entitled to the credit for
establishment of municipal policies; responsibility for policy execution rests with the
members.

7. Refrain from participation in the election of members of the employing legislative body
and from all partisan political actviity.

8. Make it a duty continually to improve the members' professional ability and to develop the
competence of associates in the use of management techniques.

9. Keep the community informed on municipal affairs; encourage communication between
citizens and all municipal officers; emphasise friendly and courteous service to the public;
and seek to improve the quality and the image of public service.

10. Resist any encroachment on professional responsibilities, believing the member should be
free to carry out official policies without interference, and handle each problem without

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discrimination on the basis of principle and justice.

11. Handle all matters of personnel on the basis of merit so that fairness and impartiality
govern the members' decisions pertaining to appointments, pay adjustments, promotions and
discipline.

12. Seek no favour, believe that personal aggrandisement or profit secured by confidential
information or by misuse of public time is dishonest.



Over and above these, the CMAG has added the following additional points:

13. We are dedicated to providing our citizens responsible government characterized by
integrity, accountability and transparency.

14. We will provide service in a professional manner with sensitivity to the needs of all
people and to sustainability of our environment.

15. We are committed to the concept that the public deserves honest consideration,
professional conduct and respect regarding all government activities.

16. We believe that our reputation for integrity, credibility and sensitivity to employee and
citizen need is a key asset.

17. We recognise that our employees are a valuable resource to be treated with equity,
fairness and justice.

18. We believe that accountability, responsibility and transparency in handling the public's
property and money are essential.

19. We will show sensitivity and special concern for the underprivileged, disadvantaged and
vulnerable groups in the society.

20. We will uphold the "Rule of Law".

21. We recognise the right of citizens to have complete access to essential public information
that affect their daily lives.




Source: http://www.cmag-india.org/about_cmag_ethics.htm; http://www.icma.org




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Local Authorities Model Code of Conduct, United Kingdom

               Extract from Statutory Instrument 2001 No. 3575
    The Local Authorities (Model Code of Conduct) (England) Order 2001

                                                   PART 1

                                       GENERAL PROVISIONS

                                                   Scope

   1. - (1) A member must observe the authority's code of conduct whenever he -

  (a) conducts the business of the authority;

  (b) conducts the business of the office to which he has been elected or appointed; or

  (c) acts as a representative of the authority,

and references to a member's official capacity shall be construed accordingly.



(2) An authority's code of conduct shall not, apart from paragraphs 4 and 5(a) below, have effect in
relation to the activities of a member undertaken other than in an official capacity.



(3) Where a member acts as a representative of the authority - 


  (a) on another relevant authority he must, when acting for that other authority, comply with that
        other authority's code of conduct; or

  (b) on any other body, he must, when acting for that other body, comply with the authority's code
        of conduct, except and insofar as it conflicts with any other lawful obligations to which that
        other body may be subject.

  (4) In this code, "member" includes a co-opted member of an authority.


                                          General Obligations

   2. A member must -

  (a) promote equality by not discriminating unlawfully against any person;

  (b) treat others with respect; and

  (c) not do anything which compromises or which is likely to compromise the impartiality of those
        who work for, or on behalf of, the authority.

   3. A member must not - 


  (a) disclose information given to him in confidence by anyone, or information acquired which he
        believes is of a confidential nature, without the consent of a person authorised to give it, or
        unless he is required by law to do so; nor

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  (b) prevent another person from gaining access to information to which that person is entitled by
        law.

  4. A member must not in his official capacity, or any other circumstance, conduct himself in a
manner which could reasonably be regarded as bringing his office or authority into disrepute.



   5. A member - 


  (a) must not in his official capacity, or any other circumstance, use his position as a member
      improperly to confer on or secure for himself or any other person, an advantage or
      disadvantage; and

  (b) must, when using or authorising the use by others of the resources of the authority -

    (i) act in accordance with the authority's requirements; and

    (ii) ensure that such resources are not used for political purposes unless that use could reasonably
       be regarded as likely to facilitate, or be conducive to, the discharge of the functions of the
       authority or of the office to which the member has been elected or appointed.

   6. - (1) A member must when reaching decisions - 


  (a) have regard to any relevant advice provided to him by -

    (i) the authority's chief finance officer acting in pursuance of his duties under section 114 of the
        Local Government Finance Act 1988; and

    (ii) the authority's monitoring officer acting in pursuance of his duties under section 5(2) of the
        Local Government and Housing Act 1989; and

  (b) give the reasons for those decisions in accordance with the authority's and any statutory
       requirements in relation to the taking of an executive decision.


  (2) In sub-paragraph (1)(b) above and in paragraph 9(2) below, "executive decision" is to be
construed in accordance with any regulations made by the Secretary of State under section 22 of the
Local Government Act 2000.

  7. A member must, if he becomes aware of any conduct by another member which he reasonably
believes involves a failure to comply with the authority's code of conduct, make a written allegation to
that effect to the Standards Board for England as soon as it is practicable for him to do so.




                                                 PART 2

                                              INTERESTS

                                          Personal Interests

    8. - (1) A member must regard himself as having a personal interest in any matter if the matter
relates to an interest in respect of which notification must be given under paragraphs 14 and 15 below,
or if a decision upon it might reasonably be regarded as affecting to a greater extent than other council
tax payers, ratepayers or inhabitants of the authority's area, the well-being or financial position of


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himself, a relative or a friend or -

  (a) any employment or business carried on by such persons;

  (b) any person who employs or has appointed such persons, any firm in which they are a partner, or
        any company of which they are directors;

  (c) any corporate body in which such persons have a beneficial interest in a class of securities
        exceeding the nominal value of £5,000; or

  (d) any body listed in sub-paragraphs (a) to (e) of paragraph 15 below in which such persons hold a
        position of general control or management.

  (2) In this paragraph - 


  (a) "relative" means a spouse, partner, parent, parent-in-law, son, daughter, step-son, step-daughter,
        child of a partner, brother, sister, grandparent, grandchild, uncle, aunt, nephew, niece, or the
        spouse or partner of any of the preceeding persons; and

  (b) "partner" in sub-paragraph (2)(a) above means a member of a couple who live together.

                                        Disclosure of Personal Interests

   9. - (1) A member with a personal interest in a matter who attends a meeting of the authority at
which the matter is considered must disclose to that meeting the existence and nature of that interest at
the commencement of that consideration, or when the interest becomes apparent.

 (2) Subject to
paragraph 12(1)(b) below, a member with a personal interest in any matter who has made an
executive decision in relation to that matter must ensure that any written statement of that decision
records the existence and nature of that interest.


                                            Prejudicial Interests

   10. - (1) Subject to sub-paragraph (2) below, a member with a personal interest in a matter also
has a prejudicial interest in that matter if the interest is one which a member of the public with
knowledge of the relevant facts would reasonably regard as so significant that it is likely to prejudice
the member's judgement of the public interest.

   (2) A member may regard himself as not having a prejudicial interest in a matter if that matter
relates to -

  (a) another relevant authority of which he is a member;

  (b) another public authority in which he holds a position of general control or management;

  (c) a body to which he has been appointed or nominated by the authority as its representative;

  (d) the housing functions of the authority where the member holds a tenancy or lease with a
        relevant authority, provided that he does not have arrears of rent with that relevant authority
        of more than two months, and provided that those functions do not relate particularly to the
        member's tenancy or lease;

  (e) the functions of the authority in respect of school meals, transport and travelling expenses,
        where the member is a guardian or parent of a child in full time education, unless it relates
        particularly to the school which the child attends;

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  (f) the functions of the authority in respect of statutory sick pay under Part XI of the Social Security
         Contributions and Benefits Act 1992, where the member is in receipt of, or is entitled to the
         receipt of such pay from a relevant authority; and

  (g) the functions of the authority in respect of an allowance or payment made under sections 173 to
        176 of the Local Government Act 1972 or section 18 of the Local Government and Housing
        Act 1989.

                                  Overview and Scrutiny Committees

   11. - (1) For the purposes of this Part, a member must if he is involved in the consideration of a
matter at a meeting of an overview and scrutiny committee of the authority or a sub-committee of
such a committee, regard himself as having a personal and a prejudicial interest if that consideration
relates to a decision made, or action taken, by another of the authority's - 


  (a) committees or sub-committees; or

  (b) joint committees or joint sub-committees,

of which he may also be a member.



(2) But sub-paragraph (1) above shall not apply if that member attends that meeting for the purpose of
answering questions or otherwise giving evidence relating to that decision or action.


                           Participation in Relation to Disclosed Interests

  12. - (1) Subject to sub-paragraph (2) below, a member with a prejudicial interest in any matter
must -

  (a) withdraw from the room or chamber where a meeting is being held whenever it becomes
        apparent that the matter is being considered at that meeting, unless he has obtained a
        dispensation from the authority's standard's committee;

  (b) not exercise executive functions in relation to that matter; and

  (c) not seek improperly to influence a decision about that matter.

    (2) A member with a prejudicial interest may, unless that interest is of a financial nature, and unless
it is an interest of the type described in paragraph 11 above, participate in a meeting of the
authority's - 


  (a) overview and scrutiny committees; and

  (b) joint or area committees,

to the extent that such committees are not exercising functions of the authority or its executive.



 13. For the purposes of this Part, "meeting" means any meeting of - 


  (a) the authority;



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(b) the executive of the authority; or

(c) any of the authority's or its executive's committees, sub-committees, joint committees, joint sub-
      committees, or area committees.




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Balanced Scorecard Basics
Extracted from:
http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Defa
ult.aspx

The balanced scorecard is a strategic planning and management system that is used
extensively in business and industry, government, and nonprofit organizations worldwide to
align business activities to the vision and strategy of the organization, improve internal and
external communications, and monitor organization performance against strategic goals. It
was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton as a
performance measurement framework that added strategic non-financial performance
measures to traditional financial metrics to give managers and executives a more 'balanced'
view of organizational performance. While the phrase balanced scorecard was coined in the
early 1990s, the roots of the this type of approach are deep, and include the pioneering work
of General Electric on performance measurement reporting in the 1950’s and the work of
French process engineers (who created the Tableau de Bord – literally, a "dashboard" of
performance measures) in the early part of the 20th century.

The balanced scorecard has evolved from its early use as a simple performance measurement
framework to a full strategic planning and management system. The “new” balanced
scorecard transforms an organization’s strategic plan from an attractive but passive document
into the "marching orders" for the organization on a daily basis. It provides a framework that
not only provides performance measurements, but helps planners identify what should be
done and measured. It enables executives to truly execute their strategies.
This new approach to strategic management was first detailed in a series of articles and books
by Drs. Kaplan and Norton. Recognizing some of the weaknesses and vagueness of previous
management approaches, the balanced scorecard approach provides a clear prescription as to
what companies should measure in order to 'balance' the financial perspective. The balanced
scorecard is a management system (not only a measurement system) that enables
organizations to clarify their vision and strategy and translate them into action. It provides
feedback around both the internal business processes and external outcomes in order to
continuously improve strategic performance and results. When fully deployed, the balanced
scorecard transforms strategic planning from an academic exercise into the nerve center of an
enterprise.

Kaplan and Norton describe the innovation of the balanced scorecard as follows:
      "The balanced scorecard retains traditional financial measures. But financial measures
      tell the story of past events, an adequate story for industrial age companies for which
      investments in long-term capabilities and customer relationships were not critical for
      success. These financial measures are inadequate, however, for guiding and
      evaluating the journey that information age companies must make to create future
      value through investment in customers, suppliers, employees, processes, technology,
      and innovation."



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Adapted from The Balanced Scorecard by Kaplan & Norton

Perspectives
The balanced scorecard suggests that we view the organization from four perspectives, and to
develop metrics, collect data and analyze it relative to each of these perspectives:

The Learning & Growth Perspective
This perspective includes employee training and corporate cultural attitudes related to both
individual and corporate self-improvement. In a knowledge-worker organization, people --
the only repository of knowledge -- are the main resource. In the current climate of rapid
technological change, it is becoming necessary for knowledge workers to be in a continuous
learning mode. Metrics can be put into place to guide managers in focusing training funds
where they can help the most. In any case, learning and growth constitute the essential
foundation for success of any knowledge-worker organization.
Kaplan and Norton emphasize that 'learning' is more than 'training'; it also includes things
like mentors and tutors within the organization, as well as that ease of communication among
workers that allows them to readily get help on a problem when it is needed. It also includes
technological tools; what the Baldrige criteria call "high performance work systems."

The Business Process Perspective
This perspective refers to internal business processes. Metrics based on this perspective allow
the managers to know how well their business is running, and whether its products and
services conform to customer requirements (the mission). These metrics have to be carefully
designed by those who know these processes most intimately; with our unique missions these
are not something that can be developed by outside consultants.

The Customer Perspective
Recent management philosophy has shown an increasing realization of the importance of
customer focus and customer satisfaction in any business. These are leading indicators: if
customers are not satisfied, they will eventually find other suppliers that will meet their


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needs. Poor performance from this perspective is thus a leading indicator of future decline,
even though the current financial picture may look good.
In developing metrics for satisfaction, customers should be analyzed in terms of kinds of
customers and the kinds of processes for which we are providing a product or service to those
customer groups.

The Financial Perspective
Kaplan and Norton do not disregard the traditional need for financial data. Timely and
accurate funding data will always be a priority, and managers will do whatever necessary to
provide it. In fact, often there is more than enough handling and processing of financial data.
With the implementation of a corporate database, it is hoped that more of the processing can
be centralized and automated. But the point is that the current emphasis on financials leads to
the "unbalanced" situation with regard to other perspectives. There is perhaps a need to
include additional financial-related data, such as risk assessment and cost-benefit data, in this
category.

Strategy Mapping
Strategy maps are communication tools used to tell a story of how value is created for the
organization. They show a logical, step-by-step connection between strategic objectives
(shown as ovals on the map) in the form of a cause-and-effect chain. Generally speaking,
improving performance in the objectives found in the Learning & Growth perspective (the
bottom row) enables the organization to improve its Internal Process perspective Objectives
(the next row up), which in turn enables the organization to create desirable results in the
Customer and Financial perspectives (the top two rows).




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                               The Pro-Poor Integrity Project



Case Study: A New Airport for Pwani Municipal Council (PMC)

A New Airport for the Pwani Municipal Council (PMC)
The PMC is a local government organization for a small region with a population of 50,000
in an East African country. The PMC has 18 elected Councilors, an elected executive Mayor,
and 32 appointed officials (employees) with duties covering financial management and tax
collection, survey and land registry, town planning, municipal engineering, parks and
recreation, public education, public health, environment, building control, public relations,
fire and safety, and sanitation. The PMC enjoys the public trust; it has built up an excellent
reputation for wise use of scarce resources, responsiveness to the public, and fair treatment of
employees. There are political squabbles among the Councilors, but these are expected and
do not diminish an overall high standard of good local governance.

The PMC has a steady if modest revenue stream from local fees and central government
disbursements, and pursues a very conservative approach to financial management. The
newly elected Mayor, however, came in to office promising to move the Pwani region into a
leadership position in provincial – and even national – development. The Mayor’s party holds
the majority in the Council, and although it creates a very contentious Council session, the
Mayor gains the support that he needs for his significant new initiative – a new regional
airport located just outside the Pwani region’s main settlement.

The Mayor’s program involves a new employee position, Development Manger, but since
there aren’t any experts in airport development in the country the Mayor gets the Council’s
grudging approval to hire an expatriate from Canada who has knowledge of the latest
technologies and advances in airports development. Upon joining the PMC staff, she takes
the PMC’s routine ethics training course (3 hours) and reads its code of ethics, its Vision
Statement, and its Mission Statement, but then quickly moves on to other things. She is a
young and ambitious person, and eager for this opportunity to jump-start her career. In a very
short time after her arrival, she comes to the Mayor with a proposal for a market assessment
study that will provide the necessary justification to the voters that a new airport is both
needed and desirable. After much deliberation, the Mayor and later the majority of the
Council agree with this proposal, even though the cost of hiring the consultants from abroad
represents the most significant investment ever made by the PMC in technical expertise.

The Development Manager has good connections in Canada, and soon has an expert team of
consultants under contract for far less than the Council had budgeted. Given the low cost,
there were no questions raised about how these consultants were procured. Perhaps the issue
also was never raised because all the senior people at the PMC were so very impressed by the
lavish drawings, income projections, and promised enormous increase in status that the new
airport would generate. Very soon there is a complete design and engineering package ready
to be put out to bid, and there is huge excitement by all concerned. The PMC Public
Relations officer tells the Mayor that the public is hugely in support of this initiative,
provided that the cost is not too much. He should have no trouble being re-elected, she tells
him with a wink!

The project is put out to international bid, and the clear winner turns out to be a Canadian
builder of airports. This contractor comes from the same Canadian town as the Development
Manager, a fact which she openly declares, saying that this will give her added leverage. She
knows but does not mention that the contractor has never built an airport outside of the

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                               The Pro-Poor Integrity Project

province of Saskatchewan in Canada, and only has experience building very small rural
airports, but she has great confidence in the contractor because two of her engineering friends
back home have sung the contractor’s praises to her, and agreed to be official references. She
works with the Council to arrange for the financing needed, and the contract is signed. The
new airport should be ready to open within 18 months.

After 12 months, the project is barely underway. The contractor has faced one problem after
another, and is now confronting enormous financial challenges for not having understood – or
priced for – the many unexpected costs of international construction. The PMC Council is
deeply unhappy, the public are clamoring for an investigation, and more than half of the
money borrowed by the Council has already been spent. The Development Manager assures
the Council that the PMC’s Chief Engineer is keeping a close watch on the expenditures, and
would only approve payments that are justified.

Then a local investigative journalist from a large city near the Pwani region happens to take a
vacation in Saskatchewan, Canada. While there, he innocently asks about the contractor, and
is told by three reliable sources that the firm is incompetent, dishonest, and is already facing
several serious civil actions in Canadian courts of law. He digs further and finds that the
airport engineering design firm that the PMC hired is owned by the brother of the contractor,
and that the design firm was secretly subsidized by the contractor so that its low fees would
make it the obvious choice. He then asks a different airport engineering design firm to take a
look at the engineering package, and that design engineer says that the work is shoddy and
possibly even dangerous. Further inquiries reveal that even the Development Manager’s two
“knowledgeable friends”, who served as references for the contractor, were being paid by the
contractor, and were not even qualified engineers.

When all of this is disclosed in the press, the public is outraged. They are even more upset
when the following week the contractor abandons the site and slips quietly out of the country,
with barely any of the work completed. An independent assessment later discovers that: a)
the Chief Engineer was receiving bribes from the contractor to authorize the payments for
incomplete or defective work, b) the Development Manager knew of these bribes but did not
blow the whistle on him (she was very intimidated by his rough and threatening manner), and
c) the work accomplished so far was so substandard that it would all need to be redone.

The PMC is subjected to huge legal costs with no prospect of recovering any of its airport
development money and must pay off the loan monies spent so far, which are considerable.
Its reputation – so solid for so many years – is in tatters.

The new Development Manager is fired and returns to Canada, and the Chief Engineer is
placed under arrest. The Mayor and the Councilors meet to decide what went wrong, and
what to do next, and to take the Public Relations Manager’s advice.

What are the integrity factors involved in this case?




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                            The Pro-Poor Integrity Project




Organizational Integrity: A Rapid Self-Assessment Tool
Instructions:
This self-assessment tool has been designed to help you determine your
organization’s current attitude towards integrity. It is based on the Corporate Integrity
Attitude Spectrum as a basis for the self-assessment. Notice that the four stages of
the spectrum are represented in each question. To determine where your
organization stands, read the text below each stage and fill in the corresponding
number. In all likelihood, your organization will fall under different stages for each
question. Scoring is explained at the end of the assessment.

 Organizational Integrity Attitude Spectrum
 CLUELESS      =      Integrity Not Valued

 REACTIVE      =      With It As Needed

 STANDARD      =      Charity & Philanthropy

 STRATEGIC     =      Integrity Part of Core Business


1. Integrity Strategy (How an organization uses integrity as part of its business
strategy)

       Scoring:
       Clueless = 1 (Our organization sees no need for an integrity initiative)
       Reactive = 2 (Our organization deals with integrity issues case by case, and
                     does not need an integrity initiative)
       Standard = 3 (Our organization thinks integrity is important, but it doesn’t
                     belong as a part of our core activities)
       Strategic = 4 (Integrity is at the core of who we are as an organization)

       Our Organization’s Score: ___

2. Integrity Management Systems (Policies, procedures and training)

       Scoring:
       Clueless = 1 (Our organization manages our finances only)
       Reactive = 2 (We respond quickly to crisis, be we don’t “manage” integrity)
       Standard = 3 (We have systems in place to improve our integrity, but we
                     aren’t sure that they work)
       Strategic = 4 (We commit the time and resources continually to improve our
                     integrity. We research and adopt best practices).

       Our Organization’s Score: ___
3. Integrity Metrics (Measuring progress)

       Scoring:
       Clueless = 1 (We have no need to measure our integrity)
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                           The Pro-Poor Integrity Project


      Reactive = 2 (If a crisis occurs, we might conduct a survey of our customers
                   or employees, but we don’t have time to measure our integrity)
      Standard = 3 (We attempt to measure our integrity, but we don’t have a very
                   clear idea how to do it well).
                   Strategic = 4 (We have developed a comprehensive set of
                   measurements that tell us how we’re doing. We consult with
                   outside experts to ensure our measurement process is
                   effective).

      Our Organization’s Score: ___

4. Communication
      4a. Internal

      Scoring:
      Clueless = 1 (Our people know how to stay out of trouble)
      Reactive = 2 (We have a code of ethics, but beyond that we don’t talk about
                    ethics unless there is a crisis)
      Standard = 3 (We inform our new employees of our code when we tell them
                    about our other policies and practices)
      Strategic = 4 (We see integrity as part of our everyday activities. We promote
                    internal dialogue to ensure that we are fully acting on our
                    commitments. Our managers model the behavior and attitudes
                    that we expect)

      Our Organization’s Score: ___

      4b. External

      Scoring:
      Clueless = 1 (What the public doesn’t know won’t hurt them)
      Reactive = 2 (We can pull together a crisis team that can react if there is a
                    problem)
      Standard = 3 (We do some proactive reporting on our commitment to integrity)
      Strategic = 4 (We share meaningful examples of our organizational integrity
                    standards and publicly admit to problems if they arise)

      Our Organization’s Score: ___




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                            The Pro-Poor Integrity Project



Now, add up all the scores from the questions to give you the TOTAL SCORE for
your organization:

                                                                 TOTAL SCORE: ____


SCORING SCALE: Remember that this assessment is a starting point for your
efforts to build and maintain your organization’s integrity. Use the scoring
below to determine your overall standing within the integrity spectrum. With
this starting point in mind, you can then begin to shape your integrity
initiative.

5-7 points = Clueless
Integrity Not Valued
Serious cause for concern; there are integrity issues you don’t see

8-11 = Reactionary
Deal With It As Needed
Some cause for concern; you are paying only minimal attention to integrity

12-16 = Standard
Charity & Philanthropy
You are obviously concerned with integrity, but have not fully developed systems to
manage integrity

17-20 = Strategic
Integrity Part of Core Business
You are an integrity leader




This Self-Assessment Tool is based on the model developed by PERFORMXCELLENCE, INC.

See www.perfromx.net




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                               The Pro-Poor Integrity Project




Internal Integrity Surveys
After the problem tree has been used to identify main issues to be addressed. Change can be
monitored through activity. We are concerned with investment in the ability of the
organisation to change ‘how’ it works. It is essential to separate rhetoric from real action.

Intention
Although important, this does not guarantee change in performance, any more that enacting a
new law changes crime levels on its own.

Investment category           Improvement      Staff time (man days)             US$
                               initiative

                                                Budget       Actual     Budget         Actual

People                   #1

                         #2

                         Sub-total

Information systems      #1

                         #2

                         Sub-total

Production         and   #1
technology

                         #2

                         Sub-total

Structure          and   #1
Administration

                         #2

                         Sub-total

Stakeholder linkages     #1

                         #2

                         Sub-total

Total




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                              The Pro-Poor Integrity Project




Measuring Performance
Performance is measured from within and from without in PPI. Performance should be based
on targets for Alignment, Competence and Ethical Behaviour. These targets should be
specifically referred to the standards of conduct/behaviour that have been identified as being
necessary for the implementation of strategy in accordance with the values of the
organisation.

Outcome = Reputation and trust of internal stakeholders: internal stakeholder survey
This section is the basic structure of a survey tool that would need to be directed at internal
stakeholders. This simple questionnaire would be scored between 1-5 (1 low, 5 high)
Firstly, the questionnaire addresses perceptions of trust in some detail. Secondly the
questionnaire explores proxy’s for trust within the organisation based on expected benefits of
trust.
      Types of trust inspired by the organisation (on a scale of 1 to 5):
Perceptions of the organisation intended indicate whether the organisation and its sector are
considered to be characterised in a way that suggests that they have assets some of the
benefits one would expect from a trust.




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                                   The Pro-Poor Integrity Project




                    Low=1                    Organi-                   High=5

                                              sation


Reputation

is not esteemed                            12345        is esteemed

has rigid systems                          12345        has flexible systems

is timid                                   12345        is courageous

is not well-known                          12345        is well-known

is passive                                 12345        is active

evokes a negative image                    12345        evokes a positive image

is not an employer of choice               12345        is an employer of choice

is an old fashioned organisation           12345        is a progressive organisation

is asleep                                  12345        is alert

has poor work culture                      12345        has a good work culture

People tell me bad things about the        12345        People tell me good things
organisation                                            about the organisation

Organisation doesn’t employ the ‘status’                Organisation employs the
of person I feel is trustworthy            12345        ‘status’ of person I feel is
                                                        trustworthy
Competence
                                                        has high levels of expertise
low levels of expertise                    12345
                                                        is a trend-setter in its field
is behind in its field                     12345
                                                        keeps to deadlines
Does not keep to deadlines                 12345
                                                        has high quality standards
has poor quality standards                 12345
                                                        is efficient
is inefficient                             12345
                                                        is reliable
is unreliable                              12345
                                                        is innovative
is not innovative                          12345
                                                        is constantly adapting
is not adapting                            12345
                                                        is flexible
is inflexible                              12345
                                                        finds out clients needs
does not find out clients needs            12345
                                                        Staff competencies match up
Staff competencies don’t match up to                    to their job title
                                           12345
their job title
                                                        My experience to date has
My experience to date has been bad         12345        been good




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                                    The Pro-Poor Integrity Project


                  Low=1                       Organi-                  High=5

                                               sation

Ethical behaviour

does not share its experience               12345        shares its experiences

is dishonest                                12345        is honest

is introverted                              12345        is extroverted

doesn’t respond to clients needs            12345        responds to clients needs

is unfriendly                               12345        is friendly

does not provide assistance                 12345        provides assistance if needed

doesn’t clarify the accountable persons     12345        clarifies accountable persons

is unfair                                   12345        is fair

does not promote safety                     12345        promotes safety

is prejudiced                               12345        is open-minded

a passive communicator                      12345        is an active communicator

is not approachable                         12345        is approachable

Organisation would favour its narrow        12345        Organisation would favour
interests in a dispute                                   your interests in a dispute




Alignment

Works to individual agenda                  12345        Works as a team

communicates its aims unclearly             12345        communicates         its     aims
                                                         clearly
is inconsistent                             12345
                                                         is consistent
gives unclear guidelines                    12345
                                                         gives clear guidelines
is unclear in its values                    12345
                                                         is clear in its values
Many ‘interest groups’ or cliques           12345
                                                         Few ‘interest      groups’     or
                                                         cliques




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                                 The Pro-Poor Integrity Project




MDGs Baseline Indicators for the Four Targeted Sectors

Health
Children under 5 moderately or severely underweight
Population undernourished
Under five mortality rate per 1,000 live births
Infant mortality rate (0-1 year) for 1,000 live births
Proportion of 1 year old children immunized against measles
Maternal mortality ratio per 100,000 live births
Proportion of births attended by skilled health personnel
Adolescent birth rate per 1,000 women
Antenatal care coverage, at least one visit


Education
Total net enrolment in primary education
Primary completion rate
Literacy rate of 15-24 year olds
Women to men parity index, as ratio of literacy rates
Gender parity index in primary, secondary and tertiary level enrolment


Water and Sanitation
Proportion of total water resources used, percentage
Proportion of population using an improved drinking water source
Proportion of population using an improved sanitation facility
Access to drinking water

Social Protection
Poorest quintile’s share in national income or consumption, percentage :
Employment-to-population ratio:
Share of women in wage employment in the non-agricultural sector
Proportion of employed people living below $1 (PPP) per day, percentage
Percentage of population below national poverty line
Households with Disabled Members and Orphans




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                               The Pro-Poor Integrity Project




Suggested Readings
1) Fostering a Culture of Everyday Ethics and Integrity in Government - Fall 2008 by
Courtney Ruby, Oakland City Auditor, published on-line by the Association of Local
Government Auditors; see http://www.governmentauditors.org/content/view/383/123/

2) The corporate governance charter of the City of Cockburn, Australia; see
http://www.cockburn.wa.gov.au/Your_Council/Acts_and_Information/Public_Documents/817
-cockburn_governcharter08_lrproof_spreads.pdf

3) Local Integrity Systems: World cities fighting corruption and safeguarding integrity by
Leo Huberts, Frank Anechiarico, and Frederique Six, 2008

4) The Leadership Integrity Challenge: Assessing and Facilitating Emotional Maturity,
Second Edition by Edward Morler, 2006

5) Integrity Works: Strategies for Becoming a Trusted, Respected and Admired Leader, by
Dana Telford and Adrian Gostick, 2005

6) The Five Dysfunctions of a Team: A Leadership Fable by Patrick M. Lencioni, 2002

7) Leadership and the Quest for Integrity by Joseph Badaracco and Richard R. Ellsworth,
1993 – the “old classic”

8) Corrupt Cities: A Practical Guide to Cure and Prevention, by Robert Klitgaard, 2000

9) Local Government, Public Enterprise and Ethics by Patrick Bishop and Noel Preston,
2000

10) A Practical Guide to Ethics: Living and Leading with Integrity by Rita Manning and
Scott R. Stroud, 2007

11) The Leader's Imperative: Ethics, Integrity, and Responsibility edited by J. Carl Ficarrotta,
2001

12) Government, Ethics, and Managers: A Guide to Solving Ethical Dilemmas in the Public
Sector by Sheldon S. Steinberg and David T. Austern, 1990


Resources on Governance and Development Goals

1. International Council on Human Rights Policy (2005) Local Government and Human
Rights: Doing Good Service http://www.ichrp.org/files/reports/11/124_report.pdf

2. United Nations Development Programme (2006) Toolkit for Localising the Millennium
Development Goals. http://www.hurilink.org/tools/Toolkit_for_Localizing_theMDGs.pdf



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                              The Pro-Poor Integrity Project

3. United Nations (2006) Governance for the Millennium Development Goals: Core Issues
and Good Practices
http://unpan1.un.org/intradoc/groups/public/documents/un/unpan025110.pdf

4. WaterAid (2008) Local Millennium Development Goals Initiative: Local government and
water and sanitation delivery
http://www.wateraid.org/documents/plugin_documents/local_millennium_development_goal
s_initiative.pdf

Resources on Monitoring Budgets, Government Policies and Strategies, and
Reconstruction Projects

5. CAFOD, Christian Aid, Trocaire. Monitoring Government Policies: A toolkit for civil
society organisations in Africa. http://www.internationalbudget.org/MonitorGovPol.pdf

This toolkit explores ways of working for change by monitoring government policies. It is
especially designed to help African civil society organisations analyse and monitor
government policy implementation. It aims to help foster a conversation in society on policies
and how well those policies work. High-quality research, accompanied by strong
campaigning and lobbying, is, according to this document, a key way for local organisations
to hold their governments to account.

6. Galtung, Fredrik and Tisne, Martin (2008) Integrity After War.

7. Governance and Social Development Resource Centre. Monitoring Poverty Reduction
Strategies http://www.gsdrc.org/go/topic-guides/monitoring-and-evaluation/monitoring-
poverty-reduction-strategies

8. LogoLink (2004) Resources, Citizen Engagements and Democratic Local Governance
(ReCitE)
http://www2.ids.ac.uk/logolink/resources/downloads/Recite_Confpapers/ReCitE_Topic-
Guide.pdf
Background Paper available at
http://www2.ids.ac.uk/logolink/resources/downloads/RobinsonResources_en.pdf

Through ReCitE, LogoLink extends its inquiry into the ‘fiscal spaces’ of citizen participation
in local governance. As part of this undertaking, LogoLink completed a review of the
literature on the theme which informed research on six case studies on citizen engagements in
the resource-related processes of revenue-raising, budget allocation and the monitoring of
public expenditures. This topic guide was prepared as a parallel effort to support other
practitioners wanting to embark on work in this arena.
9. Ramkumar, Vivek (2008) Our Money, Our Responsibility: A Citizen’s Guide to
Monitoring Government Expenditures.
Available at http://www.internationalbudget.org/resources/expenditure/index.htm

This Guide reflects the growing focus of civil society organizations on monitoring the results
achieved by government expenditures. It offers an overview of government budget
implementation, including budget execution, procurement, impact measurement, and auditing
and legislative oversight processes. The Guide provides practical, tested tools that can be
used by independent organizations interested in monitoring government expenditures.

                                                                                           29
                              The Pro-Poor Integrity Project



10. Tiri (2008) Reconstruction Monitoring Field Guide: Options for Civil Society
Reconstruction Monitoring in Post-War Countries
http://www.tiri.org/images/stories/NIR%20Documents/CSO%20Monitoring%20Guide.pdf

The aim of this guide is to equip civil society groups in post-war countries with the tools to
conceptualise and implement what a “Reconstruction Monitor” group might focus on and
achieve.

Reconstruction monitoring is a new field, but the overall concept is the same as applied
budget monitoring or revenue monitoring an organisation outside of the executive branch
does credible analytical work, which it links to citizens’ concerns and has a serious impact on
the country. Ultimately, each group is likely to develop their own individual methodologies,
targeted to their country’s needs.

The guide provides a brief overview of challenges specific to post-war countries, which
should inform monitoring at all times; outlines the potential impact and significance of
reconstruction monitoring; highlights the key factors that might be useful for reconstruction
monitors when devising their own approaches; and provides two concrete examples of
methodologies that have been used by groups tracking public expenditures. These examples
are meant as illustrations of possible approaches, rather than as prescriptions for action.


Resources for Specific Workshop Sessions

      Data Gathering, Review of Current Approaches

11. Overseas Development Institute (2008) Governance Assessments for Local Stakeholders:
What the World Governance Assessment Offers
http://www.odi.org.uk/PPPG/politics_and_governance/publications/WGAWP287phase2repor
t.pdf

12. Overseas Development Institute (2006) What Political and Institutional Context Issues
Matter for Bridging Research and Policy? A literature review and discussion of data
collection approaches
http://www.odi.org.uk/resources/odi-publications/working-papers/269-bridging-research-
policy-literature-review.pdf

13. World Bank Human Development and Public Services Research (2008) Does
Community Monitoring Improve Public Services? Diverging Evidence form Uganda and
India
http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTPROGR
AMS/EXTPUBSERV/0,,contentMDK:21897654~pagePK:64168182~piPK:64168060~theSit
ePK:477916,00.html


      Dissemination of Findings, Communication and Advocacy

14. WaterAid (2007) WaterAid Learning for Advocacy and Good Practice: Water and
sanitation mapping in West Africa

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                             The Pro-Poor Integrity Project

http://www.odi.org.uk/wpp/projects/05_wateraid_mapping.html

15. Overseas Development Institute (2008) Policy briefs as a communication tool for
development research http://www.odi.org.uk/resources/details.asp?id=425&title=policy-
briefs-as-communication-tool-development-research

16. Overseas Development Institute (2003) Bridging Research and Policy: Insights from 50
Case Studies
http://www.odi.org.uk/resources/odi-publications/working-papers/213-bridging-research-
policy-case-studies.pdf

17. Institute for Democracy in South Africa (2006) Advocacy and communication: handbook
series for community-based organisations
http://www.eldis.org/cf/rdr/?doc=23937&em=190209&sub=man
<http://www.eldis.org/cf/rdr/?doc=23937&amp;em=190209&amp;sub=man>




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