Justice Financing Framework: Background Brief 4.3 Systematic Efficiency & Effectiveness Expenditure Reviews

This background brief is part of the Justice Financing Framework (JFF), and proposes countries should undertake fundamental cost-effectiveness reviews to free up resources for people-centered justice.

There are substantial opportunities for improvements in the efficiency and cost effectiveness of people-centered justice pathways. Some are immediately realizable, while others will take longer to have impact at scale. Efficiency and effectiveness reviews are best undertaken for the justice sector as a whole in order to review the allocation of resources across the entire sector. The alternative is to undertake a review of a particular organization (e.g., the judiciary), or function (e.g., dispute resolution).

Examples of efficiency and effectiveness issues to consider include: the split between wage/non-wage/capital budgets; the potential for innovative financing mechanisms such as performance-based financing; and identifying financing arrangements resulting in inefficient spending and costs elsewhere in the justice chain, including rebalancing spending toward early intervention through information, advice, assistance, and informal dispute resolution (see Background Brief 3.3).

Procurement of a finance ministry agreement is crucial for any efficiency savings to remain in the sector (or organization) for reallocation within the sector (or organization) and not be used to fund spending in other sectors.

This background brief provides additional information on:

• The potential for smart spending to improve justice outcomes.
• How efficiency and effectiveness reviews can free up resources for people-centered justice.
• The World Bank’s approach to public expenditure reviews.
• The importance of the political economy.
• Sources of guidance on efficiency and effectiveness improvements in the justice sector.
• Examples of efficiency and effectiveness improvements.