Change is what development is all about. The hard part, as the well-chosen title of a new World Bank book makes clear, is persuading the right kind of change to put down roots and flourish.
Institutions Taking Root is a collection of success stories about building state capacity in challenging contexts. The common theme of these stories is not success in itself. They move us firmly on from the old ‘cometh the hour, cometh the leader’ cliché. A good harvest takes more than one seed; years of preparation go into the fertile ground that yields it.
The book looks at the committed group of leaders in Sierra Leone’s Ministry of Finance and Economic Development who continued to perform key functions during civil conflict. It considers the pool of leaders who have filled key positions inside and outside The Gambia’s Ministry of Basic and Secondary Education, and yet have held onto a common and consistent vision of policy and implementation.
Whenever aid and development money is involved, one question consistently emerges: How do you make sure it does not fall on the wrong hands, and be victims of fraud and corruption? This is a question that the World Bank country team in Vietnam and elsewhere has been grappling with. How do we ensure that financing for World Bank projects actually goes to its intended purposes and supports the ultimate goals of eliminating extreme poverty and boosting shared prosperity?
World Bank country staff in Vietnam realized that previous responses to fraud and corruption have focused too narrowly on individual projects. What are the factors that cause and perpetuate fraud and corruption in the first place? They needed to sufficiently address the root causes of the problem, and not just the symptoms. Despite greater awareness and more open debate about corruption in Vietnamese society, there's no evidence that allegations of fraud and corruption have decreased in the last several years.
To nip the canker in the bud, the Vietnam country team is developing a Strategic Action Plan to Address Fraud and Corruption Risks. The plan identifies broad areas of fraud and corruption concerns, categorizes them, and proposes measures and activities for mitigation. Teams across different World Bank units called “Global Practices” have come together to mainstream and implement the plan into core operations.
Last week, I had the honor of receiving one of the World Bank's FY15 Big Data Innovation Challenge awards for a proposal developed with a team of researchers from within and outside of the Bank. To give you a snapshot of the project, let me recount a familiar story which you may not have thought about for a while. On December 17th, 2010, a Tunisian fruit vendor named Mohammed Bouazizi took a can of gasoline and set himself on fire in front of the local governor's office. Bouazizi’s actions resulted from having his fruit cart confiscated by local police and his frustration at not obtaining an audience with the local governor; his death sparked what we now know as the "Arab Spring." With no other means of voicing discontent and lack of trust, citizens can embrace extreme forms of protest against institutions and governments that quickly escalate.
At the recent “New Directions in Governance” meeting it was suggested that future meetings should bring governance advisors together with sector-specific colleagues. The different language we use in our respective disciplines is a serious barrier to taking forward an agenda of real importance and hence this message seemed particularly pertinent. I came to the meeting with a number of thoughts on how public finance management (PFM) rules often hinder health system performance, some of which I outline below.
Over the past three decades a major focus in low- and middle-income countries has been to seek new revenue sources for health services to overcome strict controls over the use of budget funds which were seen as inefficient but difficult to address. Community-based health insurance schemes have been widely introduced, as were patient user charges and payroll tax-funded social health insurance schemes. These various developments reflected a belief that governments were unlikely to increase funding to health, or to introduce the flexibility in budget funds required to incentivize improvements in service delivery.
In his recent presentation (video) at the World Bank, Minister Idris Jala - Chief Executive Officer of the Malaysian Prime Minister’s Performance Management and Delivery Unit (PEMANDU) - shared his “six secrets of transformational leadership,” reflecting on five years of leading Malaysia on a journey to deliver on its economic and social promises.
Malaysia’s PEMANDU was established in September 2009 with the objective to oversee the implementation, assess the progress and facilitate the delivery of the Government Transformation Programme (GTP) and the Economic Transformation Programme (ETP), both of which are central to its plan of transforming Malaysia into a high-income nation by 2020.
I joined Facebook in 2007. For years, I would boast that I got all my news from Facebook and the Daily Show, an American satirical television program, which delivers fake news reports. I should be embarrassed to admit this, but perhaps it was inevitable. I certainly didn't feel connected to news sources, or government press services, so Facebook and fake news somehow felt more authentic and trustworthy than the traditional means of accessing information.
To maintain current growth rates and meet demands for infrastructure, developing countries will require an additional investment of at least an estimated US$1 trillion a year through 2020. In the Mashreq countries, the required infrastructure investment for electricity alone is estimated at US$ 130 billion by 2020, and an additional US$108 billion by 2030.
Public procurement is not among the most popular topics in development circles. However, consider just these three ways in which procurement is probably one of the most indispensable elements that make up a truly capable state:
First, without effective procurement, hospitals wait for drugs, teachers for textbooks, and cities for roads. Whenever a news item surfaces about drugs shortages in hospitals, schools without textbooks or failing road networks, the reader may be looking at a procurement problem. Without efficient procurement, money gets wasted on a very large scale. Many developing countries channel significant proportions of their budgets through the procurement system – even marginal savings can add up very fast. Third, public procurement is a part of the government that citizens see every day. Lack of transparency and corruption in procurement directly affects citizens, and the losses to corruption are estimated in the billions of dollars every year. Corruption in procurement is a big problem that affects rich countries as well.
The outbreak of disease is often a latent but hard-hitting global concern, as currently exemplified by the flurry of anxiety swirling around Ebola. Many efforts have sprung up to fight spread of the disease, including the World Bank which has recently committed $400 million to said cause. While the growing human cost of the disease is distressing enough, if Ebola is not contained, the World Bank has estimated an additional economic cost of $32.6 billion to the West Africa region.
To find out, we recently spoke with Clark Freifeld, co-founder of HealthMap.org, a web-based tool that has been in the news for detecting Ebola 9 days before the World Health Organization officially announced it. Started in 2006 at Boston Children's Hospital, HealthMap uses public health, media, and open data sources to provide real-time information and alerts about disease outbreak based on a number of filters, including location.
Strong and effective financial reporting rarely grabs headlines, but the vulnerabilities created by weak or ineffective systems of financial reporting certainly do – a number of well-publicised accounting scandals come quickly to mind.
At the Governance Global Practice , with appropriate accountability frameworks that are effectively enforced.
Key to driving change in this area is the global accountancy profession and I am looking forward to meeting with leaders from many developing countries at the upcoming Accountancy Development for Results global event in Rome on November 10. This will take place on the occasion of the World Congress of Accountants.