Political Economy Analysis of Bauchi State

The primary goal of this political economy assessment (PEA) is to inform the work of the State2State activities in Bauchi State. The PEA was conducted through a problem-based framework, involving document and literature review, key informant interviews, and focus groups with relevant government and civil society stakeholders at the state and local levels in Bauchi. The study aimed to better understand the interests aligned for and against each related area of proposed or needed reform, identify areas where the project can support local reformers or drivers of change in mutual goals, and highlight clear and practical entry points where the project can get leverage and achieve the greatest impact in the local context. The assessment found that stakeholders are optimistic about reform prospects in Bauchi following the 2019 elections, with the Governor showing some commitment to economic reforms. Bauchi State has also shown some improvement in its budget process, particularly in the areas of budget realism and public access to information. The general public now has access to hard copies and online copies of the budget, and the state has met a requirement in 2019 and 2020 to access the World Bank States Fiscal Transparency, Accountability and Sustainability (SFTAS) grant. There are also steady improvements in predictability of resource flow, with the Office of the Accountant General of the state conducting cash flow planning and monitoring on a monthly basis. The state has signed into law the Bauchi State Revenue Harmonization Law 2020, which grants operational autonomy to the Bureau of Internal Revenue (BIR), with an enhanced administrative and enforcement structure. Efforts are being made to streamline and modernize the workflow processes in the BIR, with a view to engendering efficiency and effectiveness in service delivery. The BIR reforms are expected to eliminate overlaps and duplications of functions and reduce major corruption risks. The assessment also highlights the need for further reforms in the areas of public financial management, procurement, and monitoring and evaluation, as well as the need to strengthen governance systems and improve government responsiveness to citizen needs and priorities. The State2State Activity aims to support the implementation of these reforms and enhance service delivery in the key sectors of basic education, primary health care, and water, sanitation and hygiene (WASH). The activity will focus on strengthening governance systems, improving government responsiveness to citizen needs and priorities, and improving government and civil society capacity to manage conflict through prevention, mitigation, and reconciliation with sectoral partners. The assessment concludes that the State2State Activity has the potential to make a significant impact in Bauchi State, particularly in the areas of public financial management, procurement, and monitoring and evaluation. However, the success of the activity will depend on the commitment of the state government and the local stakeholders to implement the recommended reforms and achieve the desired outcomes. The State2State Activity will focus on the following sub-purposes: * Increased Efficiency of Sub National Government Operations: strengthening governance systems, with a focus on public financial management and procurement, as well as monitoring and evaluation related to the delivery of services in the key sectors of basic education, primary health care, and WASH. * Improved Sub National Government Responsiveness to Citizen/CSO Engagement: increasing government ability to respond to citizen needs and priorities. * Improved Sub National Capacity to Manage Conflict: improving government and civil society capacity to manage conflict through prevention, mitigation, and reconciliation with sectoral partners. The activity will be implemented over a period of five years, from August 2020 to August 2025, and will be led by the USAID State2State Activity, in collaboration with the Bauchi State government and other local stakeholders.