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Do performance agreements help improve service delivery ? the experience of Brazilian states

Author

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  • Vinuela,Lorena
  • Zoratto,Laura De Castro
Abstract
A growing number of states and municipalities in Brazil rely on results-based management, and many other local and state governments are considering adopting the practice. This paper examines the experiences of the Brazilian states that have implemented results agreements linked to variable pay. The analysis compares current with pre-intervention outcomes in the education, health, and security sectors. The changes are examined in relation to regional trends to determine whether the improvements depart in meaningful ways from the overall trend. In addition, a truncated time-series cross-section model is used to control for several additional factors influencing service delivery outcomes. The results suggest that, at least in the short and medium term, the implementation of results agreements is associated with significant and positive changes in outcomes in the security and education sectors. On average, states using team-level targets and performance-related pay have 15 fewer homicides per 100,000 inhabitants than those that do not, all else equal. Similarly, states that have introduced performance agreements and a bonus for teachers and school staff have improved their Basic Education Development Index score for public secondary schools by 0.3 additional points compared with the scores of states with similar characteristics. The conclusions are in line with the findings of in-depth impact evaluations and case study work in the education and security sectors (Bruns, Evans and Luque 2011, Milagres de Assis 2012). The paper does not analyze unit or team level data, which would be necessary to draw more rigorous conclusions about how results-based interventions affect the behavior of civil servants and outcomes over time. Therefore, the results should be interpreted with caution, as some of the assumptions behind the models cannot be examined with the available data.

Suggested Citation

  • Vinuela,Lorena & Zoratto,Laura De Castro, 2015. "Do performance agreements help improve service delivery ? the experience of Brazilian states," Policy Research Working Paper Series 7375, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7375
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    References listed on IDEAS

    as
    1. Gita Busjeet, 2012. "The State Results-Based Management System of Minas Gerais, Brazil," World Bank Publications - Reports 11050, The World Bank Group.
    2. Gerard La Forgia, 2008. "Brazil - Innovative Approaches to Extending Family Health Services," World Bank Publications - Reports 10286, The World Bank Group.
    3. Gerard M. La Forgia & Bernard F. Couttolenc, 2008. "Hospital Performance in Brazil : The Search For Excellence," World Bank Publications - Reports 10284, The World Bank Group.
    4. Barbara Bruns & Deon Filmer & Harry Anthony Patrinos, 2011. "Making Schools Work : New Evidence on Accountability Reforms," World Bank Publications - Books, The World Bank Group, number 2270.
    5. Nick Manning, 2010. "Improving Performance : Foundations of Systemic Performance," World Bank Publications - Reports 10508, The World Bank Group.
    6. Gerard M. La Forgia & Bernard F. Couttolenc, 2008. "Hospital Performance in Brazil : The Search for Excellence," World Bank Publications - Books, The World Bank Group, number 6516.
    7. Barbara Bruns & David Evans & Javier Luque, 2012. "Achieving World-Class Education in Brazil : The Next Agenda," World Bank Publications - Books, The World Bank Group, number 2383.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    E-Business; Public Sector Development; Health Monitoring&Evaluation; Population Policies; Labor Policies;
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