Selecting the objectives and indicators, and specifying the rules for the performance-based mechanism for the essential services was not an easy task, mainly due to the fact that decisions are made in a multilevel framework, in which the government administrations do not have all and/or the same information. In addition, it is always a challenge to establish a causal relationship between policy actions and results owing to the many variables and actors involved.
In order to address these problems, a participatory decision-making approach was adopted, first with the regional governments and ministries responsible for regional development policy and then with the other levels of government (sectoral entities, regional departments, local authorities) and with the economic and social partners, in order to increase ownership and accountability.
The essential services initiative originates within the regional development policy but it also requires a complex integration of resources and responsibilities: it involves the whole regional policy (with ordinary and additional financial resources), and also that of the central government through the sectoral ministries. Since the focus is on service provision, expenditure on investment is not sufficient, as current (or operating) expenditure must be taken into account.
Adopting the performance-based mechanism with direct targets for the final objectives of regional policy means acknowledging that those implementing regional development policy cannot be considered the only ones responsible for achieving service targets. Accordingly, the performance-based mechanism is based on the shared accountability of the different levels of government (pdf, 12 Kb) for the entire process, from service planning to delivery.