A few weeks ago, the UK’s Department for International Development (DFID) concluded a three-day visit to the Bank with a presentation by its Chief Economist, Stefan Dercon. ‘Aid is Politics’ traversed the big picture debates in economics, politics and development with ease, but the focus was the practice of aid.
Once we’re on the ground at scale, we become part of the politics. Not only do domestic politics shape the impact of our interventions, our programs today affect politics tomorrow. Economic policy, although seemingly about ‘removing market failures and correcting distortions’, impacts upon the distribution of rents or income, at times adversely affecting political equilibria by benefitting already powerful groups.
Since walking away from politically fraught environments is not an option (aid practitioners are “the intervention squad”), we need to constantly analyze, adapt programing to politics, be creative, make political engagement endogenous, and try to nudge aspects of the political settlement to a better place.
Although Stefan gave a lively presentation, what struck me was not the content -- over the last decade, a virtual consensus has formed in development praxis that political drivers shape development outcomes, and that effective interventions require both deep understanding of the distribution of power and resources in a given country and the flexibility to adapt to changing context. Most striking was the mission underlying Stefan’s comments.
From civil wars in Mali and Iraq to urban crime in Central America, perceptions of injustice are central to fueling violence and fragility. While we in the development community increasingly recognize that legitimate and effective justice institutions are crucial to inclusive growth in these contexts, we have often struggled to support them. The World Bank is at the forefront of developing new ways of understanding justice challenges as well as practical means to address them.
A panel on “New Approaches to Justice in FCV,” part of the 2015 Fragility Forum, highlighted new ways of understanding and responding to justice challenges.
In the last ten years, China’s public procurement market has grown tenfold reaching an estimated $270 billion in 2013. Such significant growth has made the improvement of the public procurement system an imperative for the Chinese Government.
In the context of China’s commitment to enhance its procurement system, it is also seeking to accede the World Trade Organization’s Government Procurement Agreement (WTO GPA). As China looks to necessary procurement reforms, the World Bank has partnered with the Ministry of Finance to support these efforts, which have the potential to have transformational impact.
This year will see a major milestone with the adoption of sustainable development goals (SDGs) by the UN’s member states. Expanding on the 8 Millennium Development Goals (MDGs) set in 2000, the currently envisioned 17 SDGs are aiming to address broader, transformative economic, environmental and social changes. For the first time, however, the centrality of justice in achieving sustainable development has been recognized in the Open Working Group’s proposed Goal 16:
Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.
, but one that will pose many challenges. Secretary General Ban Ki-Moon has put his support behind the inclusion of justice as a central pillar for achieving sustainable development.
Consider that as much as $1 trillion vanishes from the developing world’s economies every year, according to an estimate by the non-profit group Global Financial Integrity. Now consider that, according to OECD figures, in 2012-2013 Net Overseas Development Aid was $134 billion. These figures underscore why the fight against corruption and ending impunity are critical to the goals of ending poverty and achieving shared prosperity.
In December of 2014 the World Bank hosted the 3rd Biennial International Corruption Hunters’ Alliance meeting focused on fighting corruption - and the vast illicit outflows generated by corruption - to share know-how and experiences in the use of both traditional and alternative corruption fighting approaches.
Though there were many examples of the successful use of technology to fight corruption presented at the meeting, a report (pdf) published from one of the sessions raises questions about whether technology always supports anti-corruption efforts.
Dr. Anne Thurston of the International Records Management Trust spoke about problems that are arising as governments become more reliant on the use of ICTs: digital media deteriorate, software changes, and hardware becomes obsolete. The risk is that if digital records are not managed professionally, their integrity and value as legal evidence can become compromised.
The SAFE Trust Fund application (Word document) is now open until 27 February 2015.
What is SAFE?
SAFE means Strengthening Accountability and the Fiduciary Environment. It is a Trust Fund group administered by the World Bank and established by the Swiss State Secretariat for Economic Affairs (SECO) and the European Commission with the aim of improving public financial management in the Europe and Central Asia region. This Trust Fund group provides support for activities to assess public financial management (PFM) performance, identify and implement actions to achieve improvements and share knowledge and good practices across countries in the region.
- public finance management
- public finance
- world bank
- Public Sector and Governance
- Private Sector Development
- Financial Sector
- Europe and Central Asia
- Macedonia, former Yugoslav Republic of
- Kyrgyz Republic
- Bosnia and Herzegovina
In 2010-14, we were facing a challenging task: develop a new approach to increase institutional and leadership capacity in Tajikistan’s public sector, including internal capability to initiate reforms.
in a way that would fit with the country context?
If you are familiar with the Western part of the former Soviet Union and have never been to Tajikistan, you are in for a surprise. The differences with countries such as Ukraine or Georgia are staggering. To put things in the global perspective, The country suffered a civil war that lasted five years (1992-1997), resulted in massive internal displacement and decimated civil service. Despite establishing formal governing institutions after the war, institutional capacity remains weak.
Scientists declared this past year as the warmest year on Earth since record-keeping began in 1880, and a series of scientific reports found glaciers melting and extreme weather events intensifying. There can be no doubt that this year world leaders must commit to transforming their economies to combat climate change.
As the Financial Times pointed out recently, oil companies such as Exxon Mobil and Shell would, under measures considered for the global climate pact to be sealed in Paris next year, cease to exist in their current forms in 35 years. The proposal of phasing out global carbon dioxide emissions as early as 2050 was not resolved in the UN climate talks in Lima last December.
However, the adoption of even a watered-down version in Paris or in later rounds of climate negotiations would mean that the amount of oil and gas produced by these companies, and the quantity of coal mined by enterprises such as Rio Tinto, would need to be greatly reduced by mid-century. Such long-term concerns might over the next years trump current worries about an oil price slump that could be on the wane as soon as marginal projects and producers are shaken out from the bottom of the market.
data fueling 'smart cities,' citizen engagement in planning and budgeting, public transparency and accountability, entrepreneurship (even without open data), and more.
These show the promise of open data, which doesn’t come easy in stable governments. But how does open data play out in the context of fragile states and conflict situations?
Last year, we asked ourselves these questions and reached out to the aid community.