The World Bank Strengthening Strengthening World Bank Group World Bank Group Engagement on Governance Engagement on Governance & Anticorruption & Anticorruption Presented to: World Bank Staff Course on Public Sector Governance and Anti-corruption Addis Ababa, Ethiopia June 4, 2007 Presented by: Helga Muller Sector Manager
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The World Bank Strengthening World Bank Group Engagement on Governance & Anticorruption Presented to: World Bank Staff Course on Public Sector Governance.
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The World Bank
Strengthening Strengthening World Bank Group World Bank Group
Engagement on Governance & Engagement on Governance & AnticorruptionAnticorruption
Presented to:
World Bank Staff
Course on Public Sector Governance and Anti-corruption
Since then, the World Bank’s governance and anticorruption work has evolved rapidly
In recent years, stakeholders in recipient & donor countries are demanding better governance & corruption control – scaling up of aid also requires strengthening governance
On March 20, 2007 the World Bank’s governance & anticorruption (GAC) strategy was unanimously endorsed by the Board, and approved by the Spring Meetings in April 2007
Governance is the door to anticorruptionGovernance is the door to anticorruption
The manner in which the The manner in which the statestate acquires acquiresand exercises its authority to provide and exercises its authority to provide public goods & servicespublic goods & services
Use of Use of publicpublic office for office for privateprivate gain gain
GovernanceGovernance
CorruptionCorruption
•Corruption is an outcome – a consequence of weak or bad governance•Governance reform – strengthening capacity & accountability – helps combat corruption by addressing its underlying causes
Participatory Participatory prioritization of prioritization of
policies & public policies & public spendingspending
Investment OperationsBrazil Rural Poverty Reduction Project Rio Grande do Norte; Malawi Third Social Action FundDevelopment Policy LendingArmenia SAC IV; Laos PRSC1; Timor-Leste Consolidation Support Program Policy Grant, Vietnam PRSC (I to IV)
Innovative Examples of Multistakeholder Innovative Examples of Multistakeholder Engagement in WB OperationsEngagement in WB Operations
oversight over the oversight over the use of budgetary use of budgetary
resourcesresourcesInvestment OperationsBangladesh Public Procurement Reform Project
Development Policy LendingHaiti Economic Governance Reform Operation I and II
User participation User participation & oversight in & oversight in
service provisionservice provision
Investment OperationsAndhra Pradesh, India District Poverty Initiatives Project; Morocco Initiative for Human Development Support ProjectDevelopment Policy LendingBrazil PHDSRL I; Georgia PRSC; Peru PSRL IIIEthiopia, Protection of Basic Services
Strengthening Strengthening participatory local participatory local
governancegovernance
Investment OperationsAlbania Community Works 2 Project; Bangladesh Local Governance Support Project; Ethiopia Capacity Building for Decentralized Service Delivery; Indonesia KDPDevelopment Policy LendingSierre Leone ERRC III
Strengthening Strengthening other formal other formal
oversight oversight institutionsinstitutions
Investment OperationsGuatemala Judicial Reform Project; Kenya Institutional Reform and Capacity Building Project; Legal & Judicial OtherWBI Parliamentary Strengthening Program
Other actionsOther actions
Development Policy LendingBangladesh DSC III
OtherWBI Media ProgramCommunity Radio InitiativesPartnership for Transparency Fund
Decentralization is more likely to work when there is adequate capacity and two sets of accountabilities are in place Downward accountability between local governments and
citizens Allocation of responsibilities between central and local
governments• Assignment of service provision responsibilities• Assignment of fiscal resources (including local tax base)• Central fiduciary and performance oversight over local
In practice, the impulse for decentralization is political; high risk of being stuck in institutional ‘limbo’ (Albania; East Asia review – Cambodia, China, Indonesia, Philippines, Thailand and Vietnam)
Making the Private Sector an Advocate of Making the Private Sector an Advocate of Governance ReformGovernance Reform
The two faces of the private sector Competitive, productivity-focused firms thrive on a level-playing field
Corrupt, rent-seeking firms thrive in the shadows
How to support competitive, responsible private sector? Create sound business environments, benchmarked internationally (Doing
Business Indicators)
Showcase examples & evidence that ‘avoiding corruption is good for business’ (Celtel’s Mohammed Ibrahim)
Support initiatives to promote business ethics and voluntary codes of conduct (ICC Code of Conduct, TI’s Business Principles, WEF PACI, UN Global Compact) – and create external verification mechanisms
Build coalitions of businesses and other stakeholders for anticorruption (Indonesia Business Link, Makati Business Club, Global Integrity Alliance)
Monitoring for ResultsMonitoring for Results Use aggregate governance indicators (e.g., CPIA, KKZ, TI
CPI) to indicate of extent and mix of governance problems
Use actionable & outcome indicators (e.g., PEFA, Global Integrity Index) to monitor progress in implementing priority governance and anticorruption reforms
Support participatory mechanisms for monitoring and mutual accountability (private sector, civil society)