Yemen Policy Note 4: Inclusive Service Delivery WOLD BANK GROUP 1 B Table of Contents Acronyms iii Acknowledgements iv Inclusive Service Delivery 1 In Post-Conflict Yemen 1 Introduction 1 Objectives of The Note 1 The Context 1 A Service Delivery Landscape in Transition 2 Pre-conflict System of Service Delivery in Yemen 2 Key Issues in Service Delivery 4 Impacts of the Current Conflict on Service Delivery 6 A Model for Strengthening Inclusive Service Delivery in Yemen 8 Operationalizing the New Service Delivery Model 10 Tables: Table 1: Institutional Framework for Service Delivery in Yemen 3 Figures: Figure 1: Key Attributes of a Functioning State 8 Figure 2: A Probably Trajectory of State Building for Yemen 9 Figure 3: Reimaging Institutional Relations in Service Delivery 13 References 14 Annexes: Annex 1: Summary of Service Sector Policy Notes (input notes) 17 Annex 2: A Normative Model for a Local-first Approach to Inclusive Service Delivery 17 i ii Acronyms GARWSP General Authority for Rural Water Supply Projects ICT Information and Communication Technology LCs Local Corporations MOE Ministry of Education MOT Ministry of Transport MOTe Ministry of Telecommunication MOTr Ministry of Trade MOPHP Ministry of Public Health and Population MOWE Ministry of Water and Environment PEC Public Electricity Corporation PWP Public Works Project RAP Rural Access Program SFD Social Fund for Development III ACKNOWLEDGEMENTS T he overarching paper on Inclusive Service Delivery was prepared by Balakrishna Menon (Pro- gram Leader), Sabine Beddies (Sr. Urban Specialist), and Kanishka Balasuriya (Consultant), from the Global Practice of Social, Urban, Rural and Resilience (GSURR) of the World Bank Group. The authors benefitted greatly from initial input from Markus Kostner (Lead Social Devel- opment Specialist) and Amir Mokhtar Althibah (Research Analyst). Additionally, the paper was informed by close consultations and collaboration with colleagues working on the sectoral input papers, including but not limited to, Amal Talbi (Sr. Water & Sanita- tion Specialist), Naif Mohammed Abu-Lohom (Sr. Water Resources Specialist), and Yogita Mums- sen (Sr. Infrastructure Economist) on Water Sector; Tomomi Miyajima (Education Specialist) and Amira Kazem (Sr. Operations Officer) on Education, Joern Huenteler (Young Professional) and Ashish Khanna (Lead Energy Specialist) on Energy; Naomi Halewood (Sr. ICT Policy Specialist) and Xavier Stephane Decoster (Consultant) on ICT; Abdulhakim Ali Ahmed Al-Aghbari (Sr. High- way Engineer) on Transport; and Moustafa Abdalla (Health Specialist), on Health. Meanwhile, additional inputs, comments and guidance were received from Wilfried Engelke (Sr. Economist) and Nadia Fernanda Piffaretti (Sr. Economist, Macro Economics & Fiscal Mgmt.) on the overall structure and direction of the paper. IV V Inclusive Service Delivery IN POST-CONFLICT YEMEN 1. Introduction 24.3 million lack access to electricity and 19.4 million lack clean water and sanitation. Chron- Objectives of the Note ic drug shortages, unpaid salaries and con- T he ongoing conflict in Yemen has led to flict-related destruction have restricted access substantial destruction of physical infra- to health care services for almost 14 million structure and significant disruptions in public Yemenis, including 8.3 million children. More services, livelihoods, income and well-being than 1.8 million children are out of school, of individuals and households throughout the bringing the total number of non-school-going country. With little signs of the conflict abating, children to more than 3 million, while an esti- innovative options are now being explored mated 1,600 schools remain closed. The 2016 to rehabilitate infrastructure and restore ser- DNA estimates the total losses and damages vices during and immediately after conflict. to agriculture, fisheries and livestock to be This note reviews the existing service deliv- over US$3 billion. ery landscape in Yemen, examines immediate to short term institutional and implementation challenges in service delivery (energy, water, Therefore, restoring service delivery and live- telecommunications, transport, education, lihoods, including reconstructing basic infra- health etc.), and proposes a framework for structure that has been damaged by the war, rapid restoration and enhancement of service while also mobilizing institutions of service de- delivery in post-conflict Yemen. This note is livery in an inclusive and resilient manner, has part of a broader set of notes examining Inclu- become an essential priority in Yemen. How- sive Service Delivery in Yemen and it serves ever, in order to do that, donors would have to as an umbrella note to identify the common deal with hard realities and critical challenges challenges, as well as outline a shared set of related to security and politics, including: 1) principles, priorities and approaches in ser- the limited chances of durable peace and sta- vice delivery restoration. bility returning to the country in the short to medium-term, and 2) the significant burdens conflict has placed on the ability of develop- The context ment partners to operate freely across the country to provide developmental assistance. The UN estimates that the more than 2 years Therefore, donor support for inclusive service old Yemeni conflict has killed over 10,000 ci- delivery, either in an in-conflict or post-conflict vilians, wounded over 30,000 and displaced situation, would require ‘out-of-the-box’ solu- over 2.8 million. It has also put more than 21.1 tions that recognize Yemen’s unique context million people (80% of the population) in dire and service delivery landscape and support need of humanitarian assistance. Currently, pragmatic interventions with a strong focus 14.4 million Yemenis are said to be food in- on enhancing inclusiveness and local-level secure of which 7.6 million are severely food resilience. insecure. Moreover, it is estimated that over 1 2. A Service Delivery Land- ties. For instance, customary laws entrust Sheiks with the management of communal scape in Transition lands used for grazing and firewood collec- Service delivery in Yemen has always been tion, but the weakening of traditional norms challenged by a series of factors, including allowed some Sheiks to sell these communal political instability, high population growth, land as personal property, thereby undermin- widespread poverty, severe resource con- ing their communal use. In Southern gover- straints and weak social, economic and gov- norates, land was returned to absentee own- ernance institutions. Additionally, since unifi- ers forced out during the socialist era without cation in 1990, Yemen has experienced two adequate safeguards to protect small farm- broad societal transformations (World Bank, ers who were cultivating the land. This led to 2006). They are: rampant land grabbing and a proliferation of claims, further compounded by a weak sys- tem of land registry. •• the shifting systems of production to a market economy from subsistence agriculture (in the north) and command economy (in the south); and Therefore, the disruptions relating to the cur- rent conflict has to be viewed in the context •• expansion of the role of the state, of the service delivery landscape that was thereby changing local power dynam- already under considerable stress due to ics and institutions – both formal and these broader societal transformations, with informal. significant impact on equity and inclusivity of service provision. While the service delivery landscape has definitely expanded its geo- Historically, tribes have controlled large ar- graphical coverage in the run up to the cur- eas of Yemen as autonomous entities that are rent war, it has also made the distributions of loosely connected with a central state. This services at the local-level less inclusive due to has led to highly independent local communi- the breakdown of traditional community-level ties, reliant on tribal or communal mechanisms institutions and capture by local elites. (such as Local Development Associations) for self-preservation. However, since unification, the state has actively tried to penetrate deep- er into the society via decentralization of state 3. Pre-conflict System of Ser- institutions and cooptation of traditional and vice Delivery in Yemen tribal norms into the formal system. While this The adoption of the ambitious Local Author- increased the presence of the state in local ity Law (LAL) in 2000 allowed the state to ex- communities to some extent, it also made the pand its reach by establishing a framework for transgression of traditional rights increasingly decentralized local government system in Ye- common (World Bank, 2006). men.1 The LAL aimed to achieve a system of service delivery via 22 governorates and 333 districts, each with directly elected local coun- These pre-war transformations led to the geo- The LAL was complimented by several bylaws 1 graphic expansion public services, but they including the Executive Regulation of the Local Authority also caused the breakdown of traditional col- Law, decree 269 of 2000 (ER), the Financial Bylaws of the lective action mechanisms within communi- Local Authority, decree 24 of 2001 and the Organizational .Bylaw for Governorates and Districts, decree 265 of 2001 2 cils, administrative secretariats (called diwans) 2010). Further, local executive offices often and executive organs (local departments of contain their own administrative support de- service delivery ministries). The head of the partments, which duplicate the functions that local authority and council was the governor a support department within a Local Coun- (at the governorate level) and the district di- cil should provide. In sectors like water and rector (at the district level), both of whom were electricity, utility agencies like the Local Water appointed civil servants.2 The Governor and Corporation (LWC) in urban areas and Public the district director were supported by general Electricity Corporation (PEC), are responsible secretaries who were elected from within the for service delivery. In highly centralized sec- council. Although local councils were estab- tors like ICT services, the central government lished to devolve power and encourage lo- plays the nodal role in all aspects of service cal participation in service delivery, the form delivery. of decentralization in Yemen is, in practice, a mix of deconcentration and devolution, with Moreover, different laws and regulations that national ministries continuing to play a major govern the operation of the primary (Finance, role (Romeo and El Mensi 2010). Planning and International Cooperation, Civil Service) and sector (Health, Education, Ag- Broadly, there are three types of service deliv- riculture, Water and Environment) ministries ery arrangements in Yemen: (1) services that often contradict the LAL (Romeo and El Men- are managed locally by districts and/or gov- si 2010). This has led to inconsistencies and ernorates (e.g., waste management), (2) ser- duplication between central and local organs vices that are managed centrally by ministries in local decision-making and reporting proce- and technical agencies, sometimes directly dures relating to services.3 from the center (e.g., ICT) and at other times via deconcentrated agencies at the local level Table 1: Institutional Framework for Ser- (e.g., electricity) and (3) services that have de vice Delivery in Yemen jure or de facto hybrid modalities and arrange- Planning & financ- ing Delivery Monitoring ments (e.g. water). Water MOEW/GARWSP LC/GARWSP LC/GARWSP Electricity MOEE PEC PEC ICT MOTe/Pvt. sector Pvt. Sector MOTe In sectors like Education, Health, Public Works UT High- MOTr RAP LCs RAP LCs RAP Transport and Agriculture, the executive organs of the ways Rural RAP RAP RAP ministries are present in almost all governor- Avia- MOT MOT MOT tion ates and districts. In principle, they are an in- Ports MOT MOT MOT tegral part of the local authority but are also Education Health MOE MOPHP MOE MOPHP MOE MOPHP accountable to their central ministries (i.e. With respect to financing of local infrastruc- accountable to Local Councils through gover- ture and service delivery, the local authority nors and district directors for the implementa- at the governorate and district level is allo- tion of local plans and budgets, and to their cated a recurrent budget by the central gov- respective central agencies for sector poli- ernment through the MOF. The district local cies, national programs and employment). In practice, however, these branch offices tend For instance, though Ministry of Education is re� F 3 sponsible for delivering K-12 education, the funding of edu� to be primarily accountable to their respec- cational institutions is under the direct control and regulation tive central ministries (Romeo and El Mensi of the Ministry of Finance. Also, though staffing of educa� Since May 2008, regional governors (but not dis� S 2 tional institutions is under the direct control of the Ministry trict directors) are meant to be indirectly elected by a col� of Civil Service, Governorates are responsible for appointing lege of district and governorate councilors in their respective new principals and teachers, assessing needs for new posi� .governorates .tions and determining budgets 3 authorities receive a capital transfer, which of the most water-deficient countries. For in- they program through an annual planning and stance, in 2012, 55% of the population had budgeting process. In contrast, the governor- access to an improved drinking water source, ates receive only a recurrent budget and rely but there was vast disparity between the on shared revenues generated at the district wealthier segments of Yemeni society who level to finance capital investments. For de- had 99% access and the poor who had only concentrated agencies, both capital and cur- 8% access. Furthermore, 2015 data from rent expenditures come through their ministe- UNICEF and SFD shows that only 29% of the rial budgetary allocations. population had access to piped water, while only one third of the rural population use im- proved latrines or toilets. Therefore, for all intents and purposes, ser- vice delivery in Yemen remains primarily a In 2015, according to the Human Develop- responsibility of the State administration and ment Indicators, Yemen was ranked 160 out branch ministries and continued to be imple- of 188. In educational outcomes, Yemen had mented under centralized chains of command one of the lowest literacy rates in MENA with and control. As such, Local Councils cannot adult literacy rate at 48.9% (Females 28.4% be held accountable for services delivery in and Males 69.5%)—even before the conflict. their jurisdictions as they simply do not have Meanwhile, 38% of school-age children were control over the operating expenditures asso- out of school, with girls constituting 56% of ciated with them and do not have an admin- that number. Urban and rural disparities in ac- istration of their own to take responsibility for cess to education are especially wide. Pov- services delivery. erty, demand for child labor and inaccessibility are widely cited reasons for non-attendance 4. Key Issues in Service Delivery at school. Even before the current conflict, Yemen Yemen’s infant and child mortality rates are faced significant challenges of access, among the highest in the MENA region and quality, accountability, capacity in service maternal mortality rate is among the highest delivery. in the world. Nearly half the population was underweight before the conflict and more than Gaps in access: Due to resource constraints half of the children were malnourished. The and other institutional barriers, large segments lower social status of women and girls and of Yemeni population had limited access to their restricted mobility are believed to have key infrastructure and services. For instance, a negative effect on their health status and Yemen was considered the least electrified ability to get care. The health situation was country in the MENA region even before the also compounded by the perverse effects of start of the conflict. Installed capacity was qat chewing. about 1,200 MW, giving only about half the population access to (often unreliable) elec- tricity. The remainder of the population lacked any form of electricity access. Energy poverty Lack of staff and weak capacities: A recent was both a symptom of poverty and an im- review of World Bank’s support to the Energy pediment for the reduction of poverty. sector in Yemen found the interventions large- ly unsuccessful due to the mismatch between Before the conflict, Yemen was already one the Bank’s strategy and the governance and 4 institutional capacity on the on the ground lic expenditures and service delivery. Over . The main public institutions in the energy and above, specialized entities like the Social sector, specifically the Public Electricity Cor- Fund for Development and the Public Works, poration (PEC) and the Ministry of Electric- which are often supported through donor pro- ity and Energy (MEE), were found to have grams, play a major role in service delivery, severely inadequate institutional capacity to operating outside the core governmental sys- implement large investments with multiple tem. contracts in a timely manner. Severe institu- tional weaknesses are endemic in major cen- Weak downward accountability: Although tral agencies, such as Ministry of Education, local councils were originally established to Ministry of Health, Ministry of Public Works encourage local participation, the actual plan- and Highways, etc. ning and delivery of public services at the local-level takes place in a top-down fashion via a system of standing committees. Each Similarly, at the local-level, the lack of staff local council has three standing committees, and weak capacities affects the workings of namely ‘planning and finance committee’, local councils, line ministries and service de- ‘social affairs committee’ and ‘service com- livery agencies. It invariably obliges coun- mittee’. Generally, the latter two committees cilors without professional administrative conduct field visits to identify needs of the training to take on responsibilities at the sec- community and report back to the ‘planning retariats. This changes their role from that of and finance committee’, which then makes a public representative to one of a civil ser- plans and submits them to the district council vant, albeit without qualification. This also for approval, after which they are sent to the puts the councils in a weak position vis-à-vis governorate council for review and approval. the executive offices, especially at district The space for community members to partici- level, in terms of service delivery. Local-level pate in the planning process, monitor public executive offices also tend to struggle with spending and provide feedback to public of- poor skills, weak capacities and corruption. ficials is virtually nonexistent. Much of the available capacity is located in Sana’a and a small number of large cities while rest of the country is starved of qualified This is compounded by extensive elite cap- service delivery personnel. ture. Tribal leaders have enjoyed a dispropor- tionate level of influence in running of local Dysfunctional institutional model: Differ- administrations and delivery of services. This ent laws and regulations govern the opera- has often given undue weight to the prefer- tion of the primary (Finance, Planning and ence of tribal sheiks to the exclusion of broad- International Cooperation, Civil Service) and er inclusiveness in service delivery. The weak sector (Health, Education, Agriculture, Wa- downward accountability mechanisms have ter and Environment) ministries, and these further aggravated this situation. sometimes contradict the LAL. This has led to inconsistencies and duplication between central agencies and local organs in the local decision-making and reporting procedures, and general confusion regarding the roles, functions and authorities of central agencies vis-a-vis local governments in matters of pub- 5 5. Impacts of the Current Con- schools remain closed due to insecurity, infra- structural damages or use as shelters by dis- flict on Service Delivery placed people, mainly in al-Jawf, Sa’ada and Taiz governorates. Furthermore, Yemenis Changes in demand: Yemen witnessed reduced consumption led to lower per capita changes in demand for certain services dur- generation of waste in Amran, Aden, Hajja, ing the conflict. For instance, for health ser- Al Mukalla, Sa’ada, Sana’a cities, according vices, demand increased, as the escalation to the UNDP Emergency Waste Assessment of the conflict in Yemen has left an estimated (August 2015). 14.1 million people, including 7.4 million chil- dren, in need of health care UNICEF (March Supply chain disruptions: During the ongo- 2016). One fifth of all vaccination centers and ing conflict, Yemen also witnessed changes in district vaccine stores are now closed down; the supply of certain services. Specifically, re- medicine and medical equipment are in short striction on imports of certain items like food, supply while many health works have been fuel and medicines cause disruptions to local killed, injured or fled. According to the UNDP markets, crippling the economy and bringing Yemen Resilience Monitor (April 2016), lack services to a standstill. According to March of access to basic and obstetric health care, 2016 data from Yemen Crisis – Yemen Frag- clean water, sanitation facilities, food and ile to Failed, basic services and infrastructure shelter, particularly the most vulnerable group in Yemen are on the verge of collapse due of young children and mothers will suffer from to the lack of fuel, supplies and financial re- malnutrition, infectious diseases, and pre- sources. While fuel was in short supply even ventable causes of death. Furthermore, UNI- before the conflict, it is now very scarce, caus- CEF estimates that nearly 10,000 children un- ing schools, health facilities, water and sani- der the age of five may have died in the past tation systems, or solid waste collection to year from preventable diseases as a result of shut down as they can no longer be operated. the decline in key health services such as im- Similarly, damages and shortages in supply of munization against preventable diseases and electricity, fuel, water and personnel caused treatment of diarrhea and pneumonia. The nearly 600 health facilities to stop operating estimates also show that 2.5 million children UNICEF March 2016). face the threat of diarrhea diseases and over 320,000 are at risk of severe acute malnutri- Service provision is also affected by a reduc- tion. In addition, over 1.3 million children are tion of staff due to the inability to pay salaries at risk of acute respiratory tract infections and since the deepening of the conflict (UNDP 2.6 million of them under the age of 15 are at Emergency Waste Assessment, August 2015) risk of measles. – UNICEF (March 2016) particularly in Amran, Aden, Hajja, Al Mukalla, On the contrary, demand for services in edu- Sa’ada, Sana’a cities. Additionally, service cation and waste management decreased. provision is affected by limited operating bud- Specifically, more than 1.8 million additional gets at governorate level, as governorates children have been out of school since mid- spend most of their limited or available bud- March 2015, bringing the total school-age get on civil servant salary payment. Accord- population out of school to more than 3.4 mil- ing to the UNDP Yemen Resilience Monitor lion (half of all school age children). Nearly – Local Governance (April 2016), civil service 3,600 schools were closed with the escalation pay in 2014 was the largest total governorate of the conflict in March 2015. Although schools expenditure item, and the operational costs re-opened in November 2015, over 1,600 (excluding salaries) was only 3-10% of the to- 6 tal expenditures. For instance, 86.8% of Taiz The ongoing conflict also damaged physi- governorate expenditure went to cover sala- cal assets – vehicles, computers etc. For in- ries, 9.2% were spent on development proj- stance, the UNDP Emergency Waste Assess- ects, and 4% on operational costs (UNDP Re- ment (August 2015) reports damages to the silience Monitor, April 2016). waste collection fleet in Amran, Aden, Hajja, Al Mukalla, Sa’ada, Sana’a cities). Mean- Additionally, service provision is negatively af- while, over 1,600 schools remain closed due fected by lack of resource transfers from the to insecurity, infrastructural damages or use central government and reduced revenue col- as shelters by displaced people, mainly in al- lection by local authorities and other govern- Jawf, Sa’ada and Taiz governorates. As of ment institutions engaged in service delivery January 2016, some 1,170 schools were un- (e.g. Cleaning Fund), since many citizens can fit for use due to damage, presence of IDPs no longer pay their taxes and user charges, or occupation by armed groups (impacting and/or the banking and mobile phone servic- 387,000 children) – UNICEF (March 2016). es are disrupted. This results in serious chal- Meanwhile, more than 70 health facilities in lenges for the provision of public services like Yemen have been destroyed by airstrikes water, sanitation, electricity and solid waste since March 2015. Many of these have been management. public health hospitals staffed or supported by Doctors Without Borders (MSF). Donor Withdrawal: Service provision is fur- ther affected by the retreat of development Coping strategies: The UNDP Yemen Resil- partners and the associated reduced funding ience Monitor – Coping Strategies (April 2016) or lack of funding as well as capacity sup- collected data in August and September 2015 port. Though more than 70 humanitarian or- from 1152 families across six governorates. ganizations have continued to provided bad- They identified four prominent coping strate- ly needed assistance to vulnerable groups gies, employed mainly by urban Yemenis: (i) throughout the conflict, access constraints, 35% of families borrowed food/ money to buy damaged infrastructure and unreliable access essential items or relied on help from friends to fuel, together with a lack of funding, have and relatives; (ii) 34% of families relied on less hampered their efforts. As of December, the preferred and less expensive food; (iii) 25% of UN’s appeal for $1.6bn (£1.25bn) to allow it to families limited portion size at meals/ reduced assist 11.7 million people in Yemen was only the number of meals, and (iv) 12% of families 58% funded borrowed used alternative energy sources. Another coping strategy was displacement. Infrastructure damages: The ongoing con- According to March 2016 data, displacement flict caused severe damages infrastructure. levels increased from 334,000 in December For instance, according to reports, more than 2014 to 2.4 million in February 2016 (with half 100 health facilities have either been partially of the displaced being children). damaged or completely destroyed by conflict. The UN was able to verify 63 attacks on health Furthermore, in the absence of institutional facilities. A fifth of all vaccination centers and assistance, 6% of families participated in district vaccine stores are now closed down. community-based relief initiatives. According Also the UNDP Resilience Monitor (April to a survey conducted by the UNDP Yemen 2016) reports damages to local authorities’ of- Resilience Monitor on Local Governance is- fices in Sa’ada, Hajja, Sana’a, Taizz, Aden & sues (April 2016), 69.4% of the respondents Abyan governorates) in Sana’a had no confidence at all in the 7 Sana’a local authorities to provide services, adjusting to the above facts. To do this, we which was shared by 60.7% of respondents propose a new approach that focuses on at- in Aden, but only by 37.3% of respondents in tending to the most urgent service delivery Taiz – highlighting variances in local service needs in the most affected parts of Yemen, provision and in perceptions about the effec- while also incrementally enhancing inclusive- tiveness of local authorities. ness, resilience and, thus, the effectiveness of service delivery institutions. 6. A Model for Strengthening In- clusive Service Delivery in Yemen Figure 1: Key Attributes of a Functioning State There is a need for new thinking on Yemen to support more sustainable and inclusive ways of service delivery and thus improve the living Legitimacy conditions of people and enhance local level resilience to recurring cycles of conflict. This stems from the following facts: • reduced prospects of enduring peace and increased likelihood of long term instability. Any peace deal is likely to bring only short term respite in the ongoing conflict as fundamental issues of contestation, legitimacy and author- ity are not being addressed. The proposed model allows us to understand ‘functioning states’ along two dimensions: (i) • limitations and failures of old state authority which leads to state legitimacy, models of development support to not and (ii) state capacity which leads to state ef- only recognize the fundamental causes fectiveness. Legitimacy in this context is de- and effects of conflict and fragility but fined as the ability of the state to project au- also, importantly, enhance the resil- thority on a range of parameters among them, ience and coping capabilities of house- holding to territory, having a monopoly on vio- holds, communities and institutions lence, representing the sovereign in treaties and to ensure services and livelihoods and agreements and managing monetary pol- during periods of conflict (as much as icy. Effectiveness is defined as the capacity of post conflict). the state to engage citizenry extensively, un- dertake broad public service delivery (as op- • indeed, in certain cases, well-in- posed to a narrow and clientilistic approach), tentioned but misguided external sup- mobilize resources (including taxes and natu- port for state building has sometimes ral resources) for public benefit, and have a lent to enhanced conflict, less effective capable and representative civil service. institutions and reduced resilience of populations to conflict. States that operate with the greatest degree of legitimacy and effectiveness are in the top Given this context, it is vital to develop new corner of Q II while those with least degree of and innovative ways to support the Yemen, legitimacy and effectiveness are placed at the 8 bottom of Q III. The model assumes that dif- national agencies also has strong local foun- ferent states take on varying trajectories over dations — for example, the SFD the PWP and time as they evolve. The role of external part- the Road Maintenance PIU. The main fea- ners is vital, especially in terms of providing tures of such an approach were: the appropriate type of support for the most probable trajectory of state legitimacy and ca- pacity that an FCS is likely to assume. • Planning, resource allocation and decision-making processes are top down, even when the agencies are In this two dimensional framework, Yemen is consultative and responsive at the lo- presently in Q III. It is not able to project au- cal level. thority and claim legitimacy or function as an effective state and deliver services. Too often, • Capacity is a top down function we assume that states in near perpetual con- and the ability to resume service deliv- flict, like Yemen, can, with external support ery after conflict is largely dependent and over time, move to stable equilibriums on the readiness and ability of national where the state has both legitimacy and ef- agencies to deploy such capacity at fectiveness. However, in states like Yemen, the local level. A number of exogenous oftentimes, the underlying causes of conflict and endogenous factors at higher lev- are rooted in the contested state authority and els, including elite compacts, availabil- legitimacy. Based on historical data and pre- ity of resources, capacity constraints, vailing conditions, we argue that a much more etc, in turn, influences this. realistic and reasonable medium term target for Yemen would be to enhance its capacity and transition to a more capable state that The new model would require us to focus on can deliver services, manage resources and a long term, incremental and organic pathway engage citizens better, as in Figure 2 below. of bottom up state building. This approach will enhance the resilience of the populations to Figure 2: A Probably Trajectory of State recurring cycles of fragility and conflict as well Building for Yemen as serve as an indirect route to state legiti- macy, over time. Legitimacy The proposed approach departs from the past in two significant ways: • It adopts a local-first approach. The ‘local’ is defined rather broadly in this context. It depends on the scale and scope of service, and the degree of Past approaches during both times of peace direct citizen engagement, institutional and in post conflict reconstruction primarily coordination and resource require- relied on working through national agencies ments needed for effective service de- — ministries, utilities, quasi-public agencies livery. For example, it could be commu- — even when the objective was meeting local nity associations or user groups in rural service delivery needs. At least a few of the areas, utility agencies in urban areas, 9 district and governorate local authori- deploying conflict-resilient resources, ties, or the deconcentrated office of a especially since the central govern- central agency but strengthened to op- ment may not be in a position to pro- erate more autonomously at the local vide resources for service delivery. In level. this context, the role of the private sec- tor (both formal and informal) as well • Unlike a hierarchical model of as non-traditional service providers as- state structure, in this case, the powers sume greater significance; and functions of center, intermediate and local tiers and their associated in- 5. Inclusive-enough coalitions: En- stitutions of service delivery are based hance social cohesion through coali- on mutual dependence and incremen- tions built around service delivery, tally evolving. livelihoods and management of local resources; and In summary, the new approach implies the fol- 6. Reimaging community: Focus on lowing areas of greater emphasis with regard local and regional level institutions for to inclusive service delivery in Yemen: an effective bottom-up state building approach rather than depending on either, a top down, or a decentralized 1. Sequencing priority sectors: Jump- approach. starting services to address the most urgent needs in the most critical ser- vice sectors (for e.g., health, water, en- 7. Operationalizing the New ergy, ICT etc.); Service Delivery Model 2. Local-first approach: Capacitating In the following section we explore specific local institutions including civil society operational implications of the new approach institutions and the private sector, and in relation to each of the sectors explored enabling them to become more partici- within this paper. The respective input papers patory, inclusive and resilient; under each sector expends on the discussed mechanisms/approach in greater length. 3. Connecting different levels of state: The local-first approach does not mean a neglect of the other levels of govern- ment. Instead, the sustainability of the 1. Sequencing priority sectors: local-first approach is tied to the inter- a. In this regard, the Energy paper dependencies that could be success- highlights how support for the sector fully created across territories and could focus on adopting simple, flex- across local, regional and higher insti- ible and innovative solutions aimed at tutions in managing natural resources, supporting other public services and development of infrastructure, deliver- pro-poor outcomes. In this regard, the ing services, etc. paper emphasizes the importance of 4. Innovative resourcing and service keeping in mind the vital role that elec- provision: Ensuring sustainability of tricity plays in supporting other public service delivery through mobilizing and services, improving livelihoods, and 10 strengthening the overall economy. financing arrangements. b. Similarly, the ICT paper recom- b. The Education paper also high- mends ways to leverage the existing lights how the highly centralized edu- mobile network in Yemen—which has cation services had made the sector thus far proven resilient in conflict—to vulnerable to political capture in light facilitate/enable the delivery of servic- of the weak institutional capacities of es. For instance, the paper points out Ministry of Education (MoE). For in- how the existing technology can be stance, in the current conflict, schools used towards higher-level (conflict mit- in Sana’a had been ordered to aban- igating/state building type) objectives don newly revised first-grade Arabic including, using mobile money for cash textbooks despite their usage in Aden. transfers to address social inequalities, Therefore, the new approach calls for exploring ways to adopt telemedicine moving out of the centrally-controlled and crowdsourcing data-collection to top-down method to a more school- improve health sector outcomes, facili- based-management (SBM) approach tating citizen engagement and commu- in close collaboration with communi- nity participation via ICT platforms, and ties and Mother and Father Councils using a mobile platform for real-time (MFCs). donor coordination etc. c. Similarly, the Transportation c. The Transport paper also calls paper calls for the empowerment and for a greater focus on roads that are strengthening of local authorities— vital for service delivery in prioritizing both at the governorate and district rehabilitation/maintenance. level—and for the adoption of partici- patory approaches and closer com- munity engagement to implement and 2. Local-first approach: maintain rural roads. The paper argues that local-level institutions should be a. The Energy paper calls for strengthened with adequate training, moving away from the Bank’s previ- knowledge transfer, and technical ca- ous practice of financing large scale pacity-building. public-sector infrastructure aimed at increasing the provision of electricity, d. The Water sector makes a to explore alternative models of energy distinction between urban and rural investments. The paper points out how WASH services and calls for a local- Yemenis were unable to fully leverage ized (deconcentrated and/or decentral- support to large scale infrastructure ized) approach in rural areas. due to severely weak institutional ca- pacities of the Public Electricity Co- operation (PEC) and Ministry of Elec- 3. Connecting different levels of state: tricity and Energy (MEE). Therefore, the new approach calls for supporting a. The Education sector paper simple, flexible and innovative solu- calls for the local-first approach to be tions—including solar power—based reinforced by parallel capacity-build- on a decentralized or municipal-level ing and awareness-raising support to focus with innovative procurement and MOE, schools, and communities to 11 strengthen accountability and gover- specifically donor-led procurement and nance of the sector. hands-on extended implementation support (HEIS). b. V, the Health sector paper calls for a mixed approach adopting a whole b. Meanwhile, the ICT paper high- gamut of methods including support lights how mobile communication has for fixed-facilities (under the Ministry of opened the door to Mobile Money, Health) as well as support for mobile expanding the payment system link- teams and community-based methods ing people to banking services without to expand the coverage of the services having a bank account. Mobile money to a maximum extent. The approach allows for the direct transfer of credit to also calls for building capacities of lo- an individual’s personal mobile phone cal-level institutions and staff and build- at very low transaction costs. This in- ing closer partnership between central creases options available for financing institutions and local CSOs and private including cash transfers. sector partners for last-mile service delivery support, development of infra- structure, etc. 5. Inclusive-enough coalitions: c. While the Transportation pa- a. The Water sector paper high- per calls for a more decentralized ap- lights the need to promote close coor- proach for the rehabilitation/mainte- dination between main agencies (GAR- nance of roads, it acknowledges the WSP, SFD, PWP) and international equal importance of supporting central donors (UNICEF, Save the Children, transport installations such as airports Oxfam, other International NGOs etc.) and seaports. As such, the ultimate with a strong community participation success of the approach will depend component with regard to rural water on the extent to which the support to services in particular. the local level and the central level could complement each other. b. The Health sector paper too calls for a mixed approach support- d. The Water sector paper too ar- ing fixed-facilities, mobile teams and gues how lot of the conventional sup- community based outreach efforts to port of providing immediate cash in- expand the coverage of the services. fusion for salaries and procurements, It also calls for strengthening partner- repairing of major damages, rehabilita- ships between service delivery institu- tion of wells and pumps, re-equipment tions and local CSOs and private sector of operation and maintenance capa- for last-mile service delivery support. bility, and emergency sanitation and health education provision etc. may still 6. Reimagine community: apply with regard to urban services. Figure 3: Reimaging Institutional Relations 4. Innovative financing: in Service Delivery a. The Energy sector paper calls • The new approach acknowledg- for innovative financing sources mak- es the vital role that alternative mecha- ing realistic and practical use of the nisms—such as CSOs and the private Bank’s new procurement framework, sector—can play in delivering services. 12 Today, in many services—for example, changes on the ground overtime. water, power, health and local secu- Forni, Olmo et al. 2015. Yemen: Emergency rity—formal and informal private pro- Waste Assessment. UNDP Yemen. viders are already stepping into the vacuum left by the public sector. The Lackner, Helen. 2016. Yemen’s ‘Peaceful’ Transi- new approach entails supporting such tion from Autocracy: Could it have succeeded?” efforts with through recalibrating the International Institute for Democracy and Electoral role of public sector, addressing supply Assistance (IDEA). chain weakness, strengthening the pri- OCHA 2016, “Yemen: Humanitarian Snapshot – vate providers and enhancing account- Overview of Food Security and Displacement.” ability and inclusivity in delivery. Office for the Coordination of Humanitarian Af- fairs, UN. Romeo, L. G., and M. El Mensi. 2010. “The Dif- • The new approach acknowledg- ficult Road to Local Autonomy in Yemen.” In De- es the high levels of variance among centralization in Developing Countries: Global regions and communities with regard Perspectives on Obstacles to Fiscal Devolution, to the degree of state authority, capaci- 501-48. Cheltenham, U.K.: Edward Elgar. ty, resources, natural endowments etc. and the need to adopt solutions to fit UNDP. 2016. “Impact of the War on Livelihood the unique situation in each region, lo- – Financial Access.” Yemen Resilience Monitor: Communities coping with Conflict. cal jurisdiction and/or community with- UNDP. 2016. “Impact of the War on Local Gover- in an overall framework of enhancing nance.” Yemen Resilience Monitor: Communities state capacity and effectiveness. Ad- coping with Conflict. ditionally, the new approach envisages certain degree of dynamism in the in- UNICEF. 2016. “The Impact of Violence and Con- terventions to evolve as the situation flict on Yemen and its Children.” Yemen Fragile to 13 REFERENCES Failed? UNICEF Yemen. World Bank. 2016. RY: Power Sector Project: Implementation Completion Report. Washington USAID 2006. Yemen Corruption Assessment. Ye- DC, 2016. men Anticorruption Services Task Order. USAID World Bank. 2016. Functional and Operational World Bank 2006, Republic of Yemen: Country Capacities of District Local Authorities (DLAs) in Social Analysis, Report No.: 34008-YE. Washing- Yemen: Establishing a pre-war baseline. A work- ton DC. ing manuscript. World Bank. 2011. Conflict Security and Develop- ment. World Development Report (WDR) 2011. Washington DC. World Bank. 2012. Interim Strategy Note for the Republic of Yemen. FY 2013-2014. Washington DC 14 ANNEX 1: SUMMARY OF SERVICE SECTOR POLICY NOTES (INPUT NOTES) Energy sector on to highlight that, despite the establishment of an autonomous Road Maintenance Fund The focus of the World Bank and other donors (RMF) in 1996, with its own revenue source in supporting the Energy sector in Yemen pre- and maintenance planning capability, the road viously had primarily been on financing large sector remains severely underfunded. In the scale public-sector infrastructure aimed at in- immediate aftermath of the conflict, therefore, creasing the provision of electricity. However, the note identifies the need to provide emer- severely weak institutional capacities of the gency support for rehabilitation and main- Public Electricity Cooperation (PEC) and Min- tenance of physical infrastructure in key cit- istry of Electricity and Energy (MEE) had pre- ies like Aden and Sana’a, ports of Aden and vented the country from leveraging this sup- Hodeidah, and upgrading of aviation safety port to the maximum extent, instead dividing equipment, before supporting broader institu- the country into those with access to electric- tional and governance reforms in a more me- ity and those without. Therefore, the note sug- dium to long-term timeframe. gests the exploration of alternative models of service delivery keeping in mind the vital role ICT that electricity plays in improving livelihoods, Experience around the world (from Afghani- supporting other public services and strength- stan, Iraq, Somalia) has shown how the tele- ening the overall economy. The proposed communication sector could be extremely re- alternative method calls for adopting simple, silient even in fragile and conflict situations. flexible and innovative solutions—including This is often attributed to the high profits that solar power—with a greater focus on support- telecommunication markets tend to yield, both ing public services and pro-poor outcomes for private and public operators, even during based on a decentralized or municipal level conflict—in some instances becoming even focus with innovative procurement and financ- more profitable than in peace times. At the ing arrangements. same time the note emphasizes specific chal- lenges that mobile operators in Yemen face Transport including direct attacks on their infrastructure and tribal demands to allow access to engi- The policy note on the transport sectorV iden- neers to damaged infrastructure in their ter- tifies several issues plaguing Yemen’s trans- ritories etc. The note also points out the great port sector, including the weak and under- potential that reliable telecommunications can developed planning and budgeting process, play in stabilizing post-conflict situations. The gross mismanagement within Ministry of Pub- restoration and availability of telecommuni- lic Works and Highways (responsible devel- cations directly supports the building of pub- opment of the entire road network in Yemen) lic confidence in the state thereby fostering and Ministry of Transport (responsible for the peace and stability. Additionally, the ability to development of ports, airports, land and sea communicate and share information across transportation needs of Yemen), inadequacy the country in a uniform and unified manner and unreliability of data and maps, and poorly helps the government re-establish its govern- coordinated upgrading of existing roads and ment apparatus at the national, governorate maintenance etc. as being the most critical is- or the district and village level, allowing it to sues facing the sector. The policy note goes respond better to its citizens. Also reliable 15 information can help dispel misinformation, ventions. However, issues of access and qual- propaganda, and rumor etc. which may fuel ity had led to an underutilization of these ser- tensions. Moreover, ICT also helps donors vices. Therefore, the new approach calls for better coordinate their humanitarian relief a mixed approach adopting a whole gamut of while supporting civil participation and greater methods including fixed-facility, mobile teams inclusiveness. and community based outreach to expand the coverage of the services to a maximum Water extent. The approach also calls for building capacities of local-level institutions and staff Highlighting that Yemen is one of the most building closer partnership with local CSOs water scarce countries in the world, Yemen’s and private sector for last-mile service deliv- WASH diagnostic identifies several of the ery support. country’s cities rapidly running out of water. At the same time, as poverty has been steadily increasing in Yemen over the past decade, the Education diagnostic identifies that this has exposed the The policy note on education identifies the poor to even greater livelihood risks. Though main post-conflict challenges facing the sector there have been modest improvements in wa- to be the lack of a common vision among dif- ter and sanitation services, the report points ferent stakeholders and the Ministry of Educa- out, stark gaps between the urban and ru- tion (MoE) and the lack of clarity on roles of re- ral areas as well as among the poor and the sponsibilities of various levels of government non-poor have put these gains at risk as well. (central, governorate, district levels), NGOs, While emphasizing the need to strengthen Civil Society Organizations (CSOs) and pri- WASH service provision and for the sector to vate sector partners. Additionally, it identifies become financially sustainable, the diagnostic capacity constraints (of school leadership and also point-out that the most appropriate com- parent councils), weak fiduciary mechanism, bination of local and central support for and and lack of adequate monitoring and evalu- control of the water sector will ultimately be ation mechanisms to track progress under- dependent on the shape and conclusion of the mining the sector. The policy note proposes on-going conflict. In the immediate term, the a series of immediate post-conflict interven- diagnostic identifies the need to reconstruct tions ranging from immediate support to get and rehabilitate water systems and work with the schools functioning including the rehabili- alternative service providers in a safe, sus- tation of light damages, providing textbooks, tainable manner. Meanwhile, in the medium providing alternative learning options for IDPs and long-term, the diagnostic highlights the and out-of-school children, as well as psycho- need to address systemic issues relating to social support for students and teachers. In a the sustainability of water and sanitation ser- more medium to long-term timeframe the note vices. proposes training and support for teachers, school leadership, and parent councils and broader institutional capacity building sup- port to MoE to improve scope and quality of Health education services. In the long term, the note Historically support to the Health sector has calls for recognizing the value of education in tended to revolve around providing fixed- strengthening social cohesion and building a facility healthcare with subsidized drugs and long-term strategic vision of using education healthcare packages through outreach inter- as a means of strengthening state legitimacy. 16 Annex 2: A Normative Model for a Local-first Approach to Inclusive Service Delivery Policy Stan- & Provision Production Function dards administra- & Comments Oversight & tion Distribution Telecommunications U, N P P National regulation and management ideal Environment U, N, S, L U, N, S, L N, S, L, P Externalities of global, national, state, local scope Monetary policy, currency, Independence from all levels essential. Some international role for com� U, ICB ICB ICB, P banking .mon discipline Interstate commerce Constitution, N N P Constitutional safeguards important for factor and goods mobility Transfer payments N N N Redistribution Criminal and civil law N N N Rule of law, a national concern 17 Industrial policy N N P To avoid beggar-thy neighbor policies Regulation N N, S, L N, S, L, P Promotes regional equity, internal common market Fiscal Policy N N, S, L N, S, L, P Coordination is possible Natural Resources N N, S, L N, S, L, P Promotes regional equity, internal common market Education, Health & Social N, S, L S, L S, L, P Transfers in kind Welfare Highways N, S, L N, S, L S, L, P Benefits and costs of various roads vary in scope Parks & Recreation N, S, L N, S, L N, S, L, P Same as above Police S, L S, L S, L Primarily local benefits Water, sewer, refuse L L L, P Same as above 18