Non-state providers (NSPs) of services play a vital role in poor and isolated communities. Some governments recognise the need to collaborate with them but most do not. How can partnerships between policymakers and NSPs, including local entrepreneurs, faith and community-based organisations, and non-governmental organisations (NGOs) be made?

Research led by the University of Birmingham in the UK draws on evidence from six countries to assess the role of NSPs in water, sanitation, healthcare and education. It also proposes models of collaboration between donors, governments and civil society.

People in developing countries often rely on NSPs for basic services. It is wrong to assume, however, that poor people choose NSPs simply because they do not have access to public services. Surveys in Pakistan show that users are more satisfied with non-state healthcare, education and water supply systems. In Nigeria – where Christian missions provide around 60 percent of healthcare – NSPs are preferred to state providers because they are cheaper and treat patients with more consideration.

While government policy now often formally supports NSPs, many unhelpful practices remain. NSPs have to cope with repressive regulations that protect established interests. Many operate in an uncertain environment, in which policies are frequently changed, and their legal position and contractual requirements are unclear. As a result, NSPs have little incentive to invest in building long-term capacity.

The researchers found that both government and NSPs were sceptical about government’s role in developing the non-state sector. NSPs generally regard governments with distrust, while governments usually feel that any available external support should go to state-run services.

Donors, the World Bank and international agencies have long advocated the need for partnerships between governments and NSPs. Donor-inspired policy mechanisms such as poverty reduction strategies, the Education for All agenda and sector-wide approaches at national level, are creating opportunities for more open policy dialogue.

However, as country studies show, these encounters remain limited:

• They tend to take place at the policy design stage, rather than through continuous interactions during implementation.
• They typically include large NGOs that are able to represent themselves and lobby for influence, or ‘umbrella’ organisations that claim to speak for poor people.
• Local-level community organisations and entrepreneurs are rarely, if ever, represented.

Systems for monitoring service providers are weak or absent. They rarely set out clear guidelines for assessing operational performance. NSPs that are officially approved are usually able to operate without regard to the quality of their services, while unapproved ones continue to operate in any case.

The author recommends that:

• Donors should stop naively believing policy statements from governments that they want to collaborate with the non-state sector: action is needed.
• Donors and policymakers should recognise that bad regulation is worse than none.
• Regulation should focus on monitoring and supporting the quality of outputs.
• Regulators must have adequate information, the capacity to enforce standards and no incentive to suppress NSP engagement.
• Governments can create a supportive environment by providing stable legal frameworks and a system for accessing subsidies where these are available.
• Large NGOs are better placed than government to give technical support to local NGOs and community organisations.

Source(s):
‘Engaged or Divorced? Cross-service Findings on Government Relations with Non-state Service-providers’, University of Birmingham, Public Administration and Development 26, 241–251, by Richard Batley, 2006 Full document.
Non-state provision of basic services Full document.

Funded by: UK Department for International Development (DFID)

id21 Research Highlight: 14 August 2007

Further Information:
Richard Batley
International Development Department
University of Birmingham
Edgbaston Birmingham B15 2TT
UK

Tel: +44 (0)121 4144985
Fax: +44 (0)121 4143971
Contact the contributor: r.a.batley@bham.ac.uk

International Development Department, University of Birmingham, UK

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'Higher prices are not enough to improve Kenyan water services'

'Regulation partnerships for African water utilities'

'What makes water sector partnerships effective?'

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