Slide 1 Implementation Plan for Strengthening World Bank Group Engagement on Governance & Anticorruption Fiduciary Forum March 24, 2008.

Slide 1Slide 1Slide 1

Implementation Plan for Strengthening World Bank Group

Engagement on Governance & Anticorruption

Fiduciary ForumMarch 24, 2008

Slide 2Slide 2The World Bank

Governance and Anticorruption (GAC) Strategy unanimously approved by the Board in March 2007

GAC Implementation Plan Approved October 2007:

• Based on “learning-by-doing”

• Covers the initial year of a longer term program

• Outer year agenda to be based on implementation experience in first year.

• Focuses on what the Bank itself will do – as distinct from the country-level governance improvements themselves – which are of course the desired outcomes, but ultimately beyond Bank control

Context

Slide 3Slide 3The World Bank

The 7 Principles GAC Guiding GAC Implementation

1. Focus on GAC is based on the Bank’s Mandate to reduce poverty—a capable and accountable state creates opportunities for the poor

2. The Bank’s GAC work must be country driven

3. There is no “one size fits all” – implementation is adapted to individual country circumstances

4. The GAC strategy requires the Bank to remain engaged so that “the poor do not pay twice”

5. The Bank aims to engage in its GAC work with a broad array of stakeholders

6. Work to strengthen, not by-pass, country systems through stronger institutions

7. The Bank will work with governments, donors, and other actors at the country and global levels to ensure a harmonized and coordinated approach

Slide 4Slide 4The World Bank

What would successful implementation look like?

• Our vision of successful GAC implementation: – When governance obstacles to development

effectiveness are reduced so that services and growth opportunities are accessible by the poor

• For this to occur, we envision:– More and more countries addressing key governance

impediments to development

– Bank and partner programs and projects increasingly address GAC impediments in a systematic way

– Countries and global partners value the Bank’s knowledge and capacity in GAC

Slide 5Slide 5The World Bank

Project Level

Combating corruption in

WBG operations

Country Level

Increased support to countries to

strengthen ‘core’ and sectoral governance

Global Level

Collaborating with development partners, and addressing

transnational issues

Interventions at 3 key levels

Slide 6Slide 6The World Bank

GAC Strategy Implementation: Country Level

• A country-level governance and anticorruption “CGAC” process that assesses GAC impediments to country development goals

– A process whereby country teams engage with government and stakeholders and identify “entry points” for Bank support for governance and anticorruption reforms – not a new World Bank report or TA

– A country-tailored approach, not a mandatory format

– A ‘systematic and disciplined stock-taking of the GAC environment and its impact on country poverty reduction goals and the Bank’s projects

– Informs the CAS, and yields a clear “business plan” for how the country program/CAS will address governance and corruption barriers to country development goals

Slide 7Slide 7The World Bank

… Country Level• Helping countries improve governance & anticorruption in

Country Assistance Strategies (CASs) & sectors

1. Mainstream governance reform in sectors by systematically addressing sector-specific GAC impediments to delivering outcomes, and by enhancing sector-level transparency, participation, accountability

2. Strengthen ‘core’ cross-cutting governance and accountability systems including public management systems (e.g., financial and budget management, procurement, public administration, and independent oversight intuitions (e.g., SAI, PAC, judiciary)

3. Strengthen “demand-side” enabling frameworks and capacity by enhancing transparency/information disclosure (RTI), CSO capacity, use of social audit/accountability tools

4. Work collaboratively with the private sector and civil society in reform processes (business assoc, chambers, CSOs, media)

5. Monitor progress via results and governance indicators (including new generation of indicators under development)

Slide 8Slide 8The World Bank

(#3) Working on the Demand SideCivil Society Monitoring of

Service Provision: Bangalore

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Slide 9Slide 9The World Bank

GAC Strategy Implementation Project Level

1. Integrating governance and anticorruption in projects: “Governance is everybody’s business”

- Mapping corruption ‘vulnerability points’ across the project cycle- Analysis of institutional incentives and capacity, AAA

2. “Smart project design,” informed by this analysis and systematically incorporating:

- Enhanced disclosure - Civil Society oversight /‘Demand-side’ elements - Stronger financial controls - Plan for mitigating collusion & other procurement problems- Clear and consistent approach on sanctions and remedies - Credible complaints handling mechanism

… Can be formalized in project-specific anticorruption action plans

3. Stronger quality management on governance and GAC- Bank Quality assurance processes to ensure coverage GAC

issues- Focused review of gov. and anticorruption aspects of projects

4. Implement measures to enhance INT’s effectiveness, building on the Volcker Report (issued September 13, 2007)

Slide 10Slide 10The World Bank

Donor coordination, including common

response principles, especially where GAC

pose serious obstacles to development,

GAC Strategy Implementation: Global Level

The Bank is committed to “not acting alone”. Five areas targeted for increased Bank involvement:

Multi-stakeholder engagement and

voluntary codes of conduct (e.g.,

Extractive Industries Transparency

Initiative)

Harmonize investigative

practices with other MDBs

Support global legal conventions (e.g., UN Convention Against

Corruption, OECD Anti-Bribery Convention,

Stolen Asset Recovery Initiative (Star))

Build global consensus on how GAC enhances

development effectiveness – biannual conference and support for GAC related research

Slide 11Slide 11The World Bank

Managing Implementation: Organization, Resources and Leadership

• Leadership– GAC Steering Committee comprising OVPs / Directors – Chaired by Managing Director– Secretariat in PREM-PS

• Organization– ‘Focal points’ in each SMU and each country team– Informal knowledge networks created on GAC – Bank processes and policies revised to incorporate GAC (e.g.,

Disclosure policy, QAG, OPCS CAS Guidelines, etc)– Regional quality management processes fine-tuned to

incorporate GAC

• Resources– Additional FY08 BB funding for CGACs and GAC in Projects, and

Highest Priority for FY09– Intensified training targeted at task teams– Network expertise to support project teams – Skill needs assessment – strengthening GAC skills

Slide 12Slide 12The World Bank

Risk Mitigation ActionWBG reverts to "business as usual"

Sustained Senior Mgt and OVP attention to GAC, leadership of ‘focal points’, and pressure from interested stakeholders

GAC appears to be just about ring-fencing Bank projects

Clear communication of developmental goals of the GAC. Genuine increased focus on strengthening country systems

WBG won't have the capacity to support implementation

Regional management organizes staffing appropriately and provides budget

Failure to learn GAC-related lessons of the past

Develop learning programs and the proposed biannual conference on governance and development

Risks and Mitigation

Slide 13Slide 13The World Bank

Thank you

The World Bank1818 H Street, NWWashington, D.C.20433 USA

“Working for a World Free of Poverty”

For additional information, see:http://www.worldbank.org